DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 3 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Sempra Energy | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Shares Outstanding | ' | 246,218,250 |
Entity Central Index Key | '0001032208 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | |
Current assets: | ' | ' | ' | |
Cash and cash equivalents | $667,000,000 | $904,000,000 | [1] | $1,061,000,000 |
Restricted cash | 22,000,000 | 24,000,000 | [1] | ' |
Trade accounts receivable | 1,055,000,000 | 1,308,000,000 | [1] | ' |
Other accounts and notes receivable | 209,000,000 | 214,000,000 | [1] | ' |
Due from unconsolidated affiliates | 3,000,000 | 4,000,000 | [1] | ' |
Income taxes receivable | 91,000,000 | 85,000,000 | [1] | ' |
Deferred income taxes, net current assets | 452,000,000 | 301,000,000 | [1] | ' |
Inventories | 472,000,000 | 287,000,000 | [1] | ' |
Regulatory balancing accounts, undercollected | 821,000,000 | 556,000,000 | [1] | ' |
Other regulatory assets | 59,000,000 | 38,000,000 | [1] | ' |
Fixed-price contracts and other derivatives, current assets | 83,000,000 | 106,000,000 | [1] | ' |
Assets held for sale, power plant | 293,000,000 | 0 | ' | |
Other current assets | 187,000,000 | 170,000,000 | [1] | ' |
Total current assets | 4,414,000,000 | 3,997,000,000 | [1] | ' |
Investments And Other Assets [Abstract] | ' | ' | ' | |
Restricted cash, noncurrent | 10,000,000 | 25,000,000 | [1] | ' |
Due from unconsolidated affiliate | 133,000,000 | 14,000,000 | [1] | ' |
Regulatory assets arising from pension and other postretirement benefit obligations | 435,000,000 | 435,000,000 | [1] | ' |
Other regulatory assets | 2,048,000,000 | 2,113,000,000 | [1] | ' |
Nuclear decommissioning trusts | 1,087,000,000 | 1,034,000,000 | [1] | ' |
Other investments | 1,797,000,000 | 1,575,000,000 | [1] | ' |
Goodwill | 951,000,000 | 1,024,000,000 | [1] | ' |
Other intangible assets | 418,000,000 | 426,000,000 | [1] | ' |
Sundry | 1,280,000,000 | 1,141,000,000 | [1] | ' |
Total investments and other assets | 8,159,000,000 | 7,787,000,000 | [1] | ' |
Property, plant and equipment: | ' | ' | ' | |
Property, plant and equipment | 35,829,000,000 | 34,407,000,000 | [1] | ' |
Less accumulated depreciation and amortization | -9,420,000,000 | -8,947,000,000 | [1] | ' |
Property, plant and equipment, net | 26,409,000,000 | 25,460,000,000 | [1] | ' |
Total assets | 38,982,000,000 | 37,244,000,000 | [1] | ' |
Current liabilities: | ' | ' | ' | |
Short-term debt | 1,309,000,000 | 545,000,000 | [1] | ' |
Accounts payable - trade | 1,153,000,000 | 1,088,000,000 | [1] | ' |
Accounts payable - other | 129,000,000 | 127,000,000 | [1] | ' |
Dividends and interest payable | 327,000,000 | 271,000,000 | [1] | ' |
Accrued compensation and benefits | 345,000,000 | 376,000,000 | [1] | ' |
Regulatory balancing accounts, overcollected | ' | 91,000,000 | [1] | 0 |
Current portion of long-term debt | 188,000,000 | 1,147,000,000 | [1] | ' |
Fixed-price contracts and other derivatives, current liabilities | 49,000,000 | 55,000,000 | [1] | ' |
Customer deposits | 149,000,000 | 154,000,000 | [1] | ' |
Other current liabilities | 643,000,000 | 515,000,000 | [1] | ' |
Total current liabilities | 4,292,000,000 | 4,369,000,000 | [1] | ' |
Long-term debt | 12,437,000,000 | 11,253,000,000 | [1] | ' |
Deferred Credits And Other Liabilities [Abstract] | ' | ' | ' | |
Customer advances for construction | 144,000,000 | 155,000,000 | [1] | ' |
Pension and other postretirement benefit obligations, net of plan assets | 659,000,000 | 667,000,000 | [1] | ' |
Deferred income taxes, net noncurrent liabilities | 3,113,000,000 | 2,804,000,000 | [1] | ' |
Deferred investment tax credits | 38,000,000 | 42,000,000 | [1] | ' |
Regulatory liabilities arising from removal obligations | 2,725,000,000 | 2,623,000,000 | [1] | ' |
Asset retirement obligations | 2,043,000,000 | 2,084,000,000 | [1] | ' |
Fixed-price contracts and other derivatives, noncurrent liabilities | 220,000,000 | 228,000,000 | [1] | ' |
Deferred credits and other | 1,154,000,000 | 1,169,000,000 | [1] | ' |
Total deferred credits and other liabilities | 10,096,000,000 | 9,772,000,000 | [1] | ' |
Equity: | ' | ' | ' | |
Preferred stock | 0 | 0 | [1] | ' |
Common stock | 2,499,000,000 | 2,409,000,000 | [1] | ' |
Retained earnings | 9,205,000,000 | 8,827,000,000 | [1] | ' |
Accumulated other comprehensive income (loss) | -371,000,000 | -228,000,000 | [1] | ' |
Total shareholders' equity | 11,333,000,000 | 11,008,000,000 | [1] | ' |
Preferred stock of subsidiaries | 20,000,000 | 20,000,000 | [1] | ' |
Other noncontrolling interests | 804,000,000 | 822,000,000 | [1] | ' |
Total equity | 12,157,000,000 | 11,850,000,000 | [1] | 11,754,000,000 |
Total liabilities and equity | 38,982,000,000 | 37,244,000,000 | [1] | ' |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | |
Current assets: | ' | ' | ' | |
Cash and cash equivalents | 33,000,000 | 27,000,000 | [1] | 167,000,000 |
Restricted cash | 8,000,000 | 6,000,000 | [1] | ' |
Trade accounts receivable | 389,000,000 | 266,000,000 | [1] | ' |
Other accounts and notes receivable | 27,000,000 | 28,000,000 | [1] | ' |
Due from unconsolidated affiliates | 1,000,000 | 1,000,000 | [1] | ' |
Income taxes receivable | 0 | 32,000,000 | [1] | ' |
Deferred income taxes, net current assets | 0 | 103,000,000 | [1] | ' |
Inventories | 70,000,000 | 86,000,000 | [1] | ' |
Regulatory balancing accounts, undercollected | 772,000,000 | 556,000,000 | [1] | ' |
Other regulatory assets | 52,000,000 | 29,000,000 | [1] | ' |
Fixed-price contracts and other derivatives, current assets | 38,000,000 | 61,000,000 | [1] | ' |
Other current assets | 92,000,000 | 75,000,000 | [1] | ' |
Total current assets | 1,482,000,000 | 1,270,000,000 | [1] | ' |
Investments And Other Assets [Abstract] | ' | ' | ' | |
Restricted cash, noncurrent | 10,000,000 | 25,000,000 | [1] | ' |
Deferred taxes recoverable in rates | 787,000,000 | 788,000,000 | [1] | ' |
Regulatory assets arising from fixed-price contracts and other derivatives - noncurrent | 39,000,000 | 63,000,000 | [1] | ' |
Regulatory assets arising from pension and other postretirement benefit obligations | 92,000,000 | 106,000,000 | [1] | ' |
Other regulatory assets | 815,000,000 | 991,000,000 | [1] | ' |
Nuclear decommissioning trusts | 1,087,000,000 | 1,034,000,000 | [1] | ' |
Sundry | 340,000,000 | 254,000,000 | [1] | ' |
Total investments and other assets | 3,170,000,000 | 3,261,000,000 | [1] | ' |
Property, plant and equipment: | ' | ' | ' | |
Property, plant and equipment | 15,086,000,000 | 14,346,000,000 | [1] | ' |
Less accumulated depreciation and amortization | -3,763,000,000 | -3,500,000,000 | [1] | ' |
Property, plant and equipment, net | 11,323,000,000 | 10,846,000,000 | [1] | ' |
Total assets | 15,975,000,000 | 15,377,000,000 | [1] | ' |
Current liabilities: | ' | ' | ' | |
Short-term debt | 0 | 59,000,000 | [1] | ' |
Accounts payable - trade | 402,000,000 | 420,000,000 | [1] | ' |
Due to unconsolidated affiliates | 36,000,000 | 39,000,000 | [1] | ' |
Income taxes payable | 8,000,000 | 0 | [1] | ' |
Deferred income taxes, net current liabilities | 41,000,000 | 0 | [1] | ' |
Dividends and interest payable | 51,000,000 | 39,000,000 | [1] | ' |
Accrued compensation and benefits | 111,000,000 | 113,000,000 | [1] | ' |
Current portion of long-term debt | 115,000,000 | 29,000,000 | [1] | ' |
Fixed-price contracts and other derivatives, current liabilities | 38,000,000 | 38,000,000 | [1] | ' |
Customer deposits | 69,000,000 | 71,000,000 | [1] | ' |
Other current liabilities | 398,000,000 | 271,000,000 | [1] | ' |
Total current liabilities | 1,269,000,000 | 1,079,000,000 | [1] | ' |
Long-term debt | 4,573,000,000 | 4,525,000,000 | [1] | ' |
Deferred Credits And Other Liabilities [Abstract] | ' | ' | ' | |
Customer advances for construction | 40,000,000 | 34,000,000 | [1] | ' |
Pension and other postretirement benefit obligations, net of plan assets | 120,000,000 | 132,000,000 | [1] | ' |
Deferred income taxes, net noncurrent liabilities | 2,054,000,000 | 2,021,000,000 | [1] | ' |
Deferred investment tax credits | 22,000,000 | 24,000,000 | [1] | ' |
Regulatory liabilities arising from removal obligations | 1,535,000,000 | 1,403,000,000 | [1] | ' |
Asset retirement obligations | 759,000,000 | 861,000,000 | [1] | ' |
Fixed-price contracts and other derivatives, noncurrent liabilities | 155,000,000 | 175,000,000 | [1] | ' |
Deferred credits and other | 362,000,000 | 404,000,000 | [1] | ' |
Total deferred credits and other liabilities | 5,047,000,000 | 5,054,000,000 | [1] | ' |
Equity: | ' | ' | ' | |
Common stock | 1,338,000,000 | 1,338,000,000 | [1] | ' |
Retained earnings | 3,678,000,000 | 3,299,000,000 | [1] | ' |
Accumulated other comprehensive income (loss) | -7,000,000 | -9,000,000 | [1] | ' |
Total shareholders' equity | 5,009,000,000 | 4,628,000,000 | [1] | ' |
Other noncontrolling interests | 77,000,000 | 91,000,000 | [1] | ' |
Total equity | 5,086,000,000 | 4,719,000,000 | [1] | 4,588,000,000 |
Total liabilities and equity | 15,975,000,000 | 15,377,000,000 | [1] | ' |
Southern California Gas Company [Member] | ' | ' | ' | |
Current assets: | ' | ' | ' | |
Cash and cash equivalents | 25,000,000 | 27,000,000 | [1] | 15,000,000 |
Trade accounts receivable | 324,000,000 | 595,000,000 | [1] | ' |
Other accounts and notes receivable | 55,000,000 | 97,000,000 | [1] | ' |
Due from unconsolidated affiliates | 274,000,000 | 21,000,000 | [1] | ' |
Income taxes receivable | 29,000,000 | 25,000,000 | [1] | ' |
Inventories | 221,000,000 | 69,000,000 | [1] | ' |
Regulatory balancing accounts, undercollected | 49,000,000 | 0 | [1] | ' |
Other regulatory assets | 6,000,000 | 5,000,000 | [1] | ' |
Other current assets | 35,000,000 | 34,000,000 | [1] | ' |
Total current assets | 1,018,000,000 | 873,000,000 | [1] | ' |
Investments And Other Assets [Abstract] | ' | ' | ' | |
Regulatory assets arising from pension and other postretirement benefit obligations | 341,000,000 | 326,000,000 | [1] | ' |
Other regulatory assets | 399,000,000 | 262,000,000 | [1] | ' |
Other post retirement benefit assets, net of plan liabilities | 93,000,000 | 95,000,000 | [1] | ' |
Sundry | 137,000,000 | 124,000,000 | [1] | ' |
Total investments and other assets | 970,000,000 | 807,000,000 | [1] | ' |
Property, plant and equipment: | ' | ' | ' | |
Property, plant and equipment | 12,542,000,000 | 11,831,000,000 | [1] | ' |
Less accumulated depreciation and amortization | -4,576,000,000 | -4,364,000,000 | [1] | ' |
Property, plant and equipment, net | 7,966,000,000 | 7,467,000,000 | [1] | ' |
Total assets | 9,954,000,000 | 9,147,000,000 | [1] | ' |
Current liabilities: | ' | ' | ' | |
Short-term debt | 0 | 42,000,000 | [1] | ' |
Accounts payable - trade | 336,000,000 | 346,000,000 | [1] | ' |
Accounts payable - other | 83,000,000 | 79,000,000 | [1] | ' |
Due to unconsolidated affiliates | 0 | 16,000,000 | [1] | ' |
Deferred income taxes, net current liabilities | 164,000,000 | 45,000,000 | [1] | ' |
Accrued compensation and benefits | 131,000,000 | 141,000,000 | [1] | ' |
Regulatory balancing accounts, overcollected | 0 | 91,000,000 | [1] | ' |
Current portion of long-term debt | 0 | 252,000,000 | [1] | ' |
Customer deposits | 74,000,000 | 75,000,000 | [1] | ' |
Other current liabilities | 125,000,000 | 125,000,000 | [1] | ' |
Total current liabilities | 913,000,000 | 1,212,000,000 | [1] | ' |
Long-term debt | 1,906,000,000 | 1,159,000,000 | [1] | ' |
Deferred Credits And Other Liabilities [Abstract] | ' | ' | ' | |
Customer advances for construction | 102,000,000 | 108,000,000 | [1] | ' |
Pension and other postretirement benefit obligations, net of plan assets | 357,000,000 | 339,000,000 | [1] | ' |
Deferred income taxes, net noncurrent liabilities | 1,050,000,000 | 993,000,000 | [1] | ' |
Deferred investment tax credits | 16,000,000 | 18,000,000 | [1] | ' |
Regulatory liabilities arising from removal obligations | 1,173,000,000 | 1,205,000,000 | [1] | ' |
Asset retirement obligations | 1,245,000,000 | 1,182,000,000 | [1] | ' |
Deferred credits and other | 292,000,000 | 287,000,000 | [1] | ' |
Regulatory liabilities arising from other post retirement benefit assets | 93,000,000 | 95,000,000 | [1] | ' |
Total deferred credits and other liabilities | 4,328,000,000 | 4,227,000,000 | [1] | ' |
Equity: | ' | ' | ' | |
Preferred stock | 22,000,000 | 22,000,000 | [1] | ' |
Common stock | 866,000,000 | 866,000,000 | [1] | ' |
Retained earnings | 1,935,000,000 | 1,679,000,000 | [1] | ' |
Accumulated other comprehensive income (loss) | -16,000,000 | -18,000,000 | [1] | ' |
Total shareholders' equity | 2,807,000,000 | 2,549,000,000 | [1] | ' |
Total equity | 2,807,000,000 | 2,549,000,000 | [1] | 2,452,000,000 |
Total liabilities and equity | $9,954,000,000 | $9,147,000,000 | [1] | ' |
[1] | Derived from audited financial statements. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, plant and equipment related to VIE | $417 | $438 |
Long-term debt related to VIE | 317 | 325 |
Shareholders' equity: | ' | ' |
Preferred stock, shares authorized | 50 | 50 |
Preferred stock, shares issued | 0 | 0 |
Common stock, shares authorized | 750 | 750 |
Common stock, shares outstanding | 246 | 244 |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' |
Property, plant and equipment related to VIE | 417 | 438 |
Long-term debt related to VIE | $317 | $325 |
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 | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
REVENUES | ' | ' | ' | ' |
Utilities | $2,463,000,000 | $2,223,000,000 | $7,318,000,000 | $6,889,000,000 |
Energy-related businesses | 352,000,000 | 328,000,000 | 970,000,000 | 963,000,000 |
Total revenues | 2,815,000,000 | 2,551,000,000 | 8,288,000,000 | 7,852,000,000 |
Utilities [Abstract] | ' | ' | ' | ' |
Cost of natural gas | -293,000,000 | -261,000,000 | -1,308,000,000 | -1,182,000,000 |
Cost of electric fuel and purchased power | -680,000,000 | -537,000,000 | -1,761,000,000 | -1,461,000,000 |
Energy-related businesses [Abstract] | ' | ' | ' | ' |
Cost of natural gas, electric fuel and purchased power | -163,000,000 | -120,000,000 | -427,000,000 | -325,000,000 |
Other cost of sales | -42,000,000 | -47,000,000 | -122,000,000 | -144,000,000 |
Operation and maintenance | -726,000,000 | -698,000,000 | -2,131,000,000 | -2,162,000,000 |
Depreciation and amortization | -292,000,000 | -286,000,000 | -866,000,000 | -828,000,000 |
Plant closure adjustment (loss) | 0 | 0 | 13,000,000 | -200,000,000 |
Franchise fees and other taxes | -104,000,000 | -96,000,000 | -301,000,000 | -283,000,000 |
Gain on sale of equity interest and assets | 19,000,000 | 39,000,000 | 48,000,000 | 113,000,000 |
Equity (losses) earnings before income tax | ' | ' | ' | ' |
Equity (losses) earnings, other | 22,000,000 | 3,000,000 | 62,000,000 | 21,000,000 |
Other income (expense), net | 29,000,000 | 16,000,000 | 118,000,000 | 79,000,000 |
Interest income | 6,000,000 | 5,000,000 | 15,000,000 | 15,000,000 |
Interest expense | -144,000,000 | -137,000,000 | -418,000,000 | -413,000,000 |
Income before income taxes and equity earnings of certain unconsolidated subsidiaries | 447,000,000 | 432,000,000 | 1,210,000,000 | 1,082,000,000 |
Income tax expense | -71,000,000 | -117,000,000 | -291,000,000 | -327,000,000 |
Equity earnings, net of income tax | 7,000,000 | 8,000,000 | 22,000,000 | 13,000,000 |
Net income | 383,000,000 | 323,000,000 | 941,000,000 | 768,000,000 |
Losses (earnings) attributable to noncontrolling interests | -35,000,000 | -22,000,000 | -76,000,000 | -41,000,000 |
Call premium on preferred stock of subsidiary | 0 | -3,000,000 | 0 | -3,000,000 |
Preferred dividends of subsidiaries | 0 | -2,000,000 | -1,000,000 | -5,000,000 |
Earnings | 348,000,000 | 296,000,000 | 864,000,000 | 719,000,000 |
Basic earnings per common share: | ' | ' | ' | ' |
Basic earnings per common share | $1.41 | $1.21 | $3.52 | $2.95 |
Basic earnings per common share, weighted-average number of shares outstanding (thousands) | 246,137 | 244,140 | 245,703 | 243,682 |
Diluted earnings per common share: | ' | ' | ' | ' |
Diluted earnings per common share | $1.39 | $1.19 | $3.45 | $2.89 |
Diluted earnings per common share, weighted-average number of shares outstanding (thousands) | 250,771 | 249,259 | 250,278 | 248,723 |
Dividends declared per share of common stock | $0.66 | $0.63 | $1.98 | $1.89 |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Utility operating revenues | ' | ' | ' | ' |
Electric | 1,133,000,000 | 970,000,000 | 2,892,000,000 | 2,685,000,000 |
Natural gas | 100,000,000 | 93,000,000 | 391,000,000 | 381,000,000 |
Total utility operating revenues | 1,233,000,000 | 1,063,000,000 | 3,283,000,000 | 3,066,000,000 |
Utility operating expenses | ' | ' | ' | ' |
Utility cost of natural gas | 39,000,000 | 36,000,000 | 165,000,000 | 157,000,000 |
Utility cost of electric fuel and purchased power | 441,000,000 | 315,000,000 | 1,036,000,000 | 776,000,000 |
Utility operation and maintenance | 276,000,000 | 266,000,000 | 784,000,000 | 852,000,000 |
Utility depreciation and amortization | 134,000,000 | 126,000,000 | 395,000,000 | 367,000,000 |
Utility franchise fees and other taxes | 67,000,000 | 57,000,000 | 177,000,000 | 158,000,000 |
Utility plant closure (adjustment) loss | 0 | 0 | -13,000,000 | 200,000,000 |
Total utility operating expenses | 957,000,000 | 800,000,000 | 2,544,000,000 | 2,510,000,000 |
Utility operating income | 276,000,000 | 263,000,000 | 739,000,000 | 556,000,000 |
Equity (losses) earnings before income tax | ' | ' | ' | ' |
Other income (expense), net | 9,000,000 | 10,000,000 | 29,000,000 | 30,000,000 |
Interest income | 0 | 0 | 0 | 1,000,000 |
Interest expense | -51,000,000 | -50,000,000 | -152,000,000 | -147,000,000 |
Income before income taxes and equity earnings of certain unconsolidated subsidiaries | 234,000,000 | 223,000,000 | 616,000,000 | 440,000,000 |
Income tax expense | -65,000,000 | -84,000,000 | -217,000,000 | -147,000,000 |
Net income | 169,000,000 | 139,000,000 | 399,000,000 | 293,000,000 |
Losses (earnings) attributable to noncontrolling interests | -12,000,000 | -5,000,000 | -20,000,000 | -1,000,000 |
Earnings | 157,000,000 | 134,000,000 | 379,000,000 | 292,000,000 |
Call premium on preferred stock | 0 | -3,000,000 | 0 | -3,000,000 |
Preferred dividend requirements | 0 | -2,000,000 | 0 | -4,000,000 |
Earnings attributable to common shares | 157,000,000 | 129,000,000 | 379,000,000 | 285,000,000 |
Southern California Gas Company [Member] | ' | ' | ' | ' |
Utility operating revenues | ' | ' | ' | ' |
Total utility operating revenues | 855,000,000 | 807,000,000 | 2,857,000,000 | 2,694,000,000 |
Utility operating expenses | ' | ' | ' | ' |
Utility cost of natural gas | 237,000,000 | 209,000,000 | 1,066,000,000 | 966,000,000 |
Utility operation and maintenance | 326,000,000 | 314,000,000 | 968,000,000 | 936,000,000 |
Utility depreciation and amortization | 109,000,000 | 100,000,000 | 321,000,000 | 280,000,000 |
Utility franchise fees and other taxes | 30,000,000 | 29,000,000 | 98,000,000 | 95,000,000 |
Total utility operating expenses | 702,000,000 | 652,000,000 | 2,453,000,000 | 2,277,000,000 |
Utility operating income | 153,000,000 | 155,000,000 | 404,000,000 | 417,000,000 |
Equity (losses) earnings before income tax | ' | ' | ' | ' |
Other income (expense), net | 6,000,000 | 2,000,000 | 13,000,000 | 9,000,000 |
Interest expense | -17,000,000 | -17,000,000 | -50,000,000 | -52,000,000 |
Income before income taxes and equity earnings of certain unconsolidated subsidiaries | 142,000,000 | 140,000,000 | 367,000,000 | 374,000,000 |
Income tax expense | -44,000,000 | -38,000,000 | -110,000,000 | -107,000,000 |
Net income | 98,000,000 | 102,000,000 | 257,000,000 | 267,000,000 |
Earnings | 98,000,000 | 102,000,000 | 257,000,000 | 267,000,000 |
Preferred dividend requirements | 0 | 0 | -1,000,000 | -1,000,000 |
Earnings attributable to common shares | $98,000,000 | $102,000,000 | $256,000,000 | $266,000,000 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Net income | $383 | $323 | $941 | $768 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | -371 | [1] | -215 | [1] | -371 | [1] | -215 | [1] |
Preferred dividends of subsidiaries | 0 | -2 | -1 | -5 | ||||
Before-Tax Amount [Member] | ' | ' | ' | ' | ||||
Net income | 419 | 418 | 1,156 | 1,054 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Foreign currency translation adjustments | -100 | 5 | -141 | 149 | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 8 | 5 | 21 | 12 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | -4 | -5 | -24 | 8 | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | -96 | 5 | -144 | 169 | ||||
Total Comprehensive Income | 323 | 423 | 1,012 | 1,223 | ||||
Preferred dividends of subsidiaries | ' | -2 | -1 | -5 | ||||
Total comprehensive income, after preferred dividends of subsidiaries | ' | 421 | 1,011 | 1,218 | ||||
Income Tax (Expense) Benefit [Member] | ' | ' | ' | ' | ||||
Net income | -71 | -117 | -291 | -327 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | -3 | -2 | -8 | -5 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | 1 | 1 | 9 | -3 | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | -2 | -1 | 1 | -8 | ||||
Total Comprehensive Income | -73 | -118 | -290 | -335 | ||||
Preferred dividends of subsidiaries | ' | 0 | 0 | 0 | ||||
Total comprehensive income, after preferred dividends of subsidiaries | ' | -118 | -290 | -335 | ||||
Net-of-Tax Amount [Member] | ' | ' | ' | ' | ||||
Net income | 348 | 301 | 865 | 727 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Foreign currency translation adjustments | -100 | 5 | -141 | 149 | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 5 | 3 | 13 | 7 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | -3 | -4 | -15 | 5 | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | -98 | 4 | -143 | 161 | ||||
Total Comprehensive Income | 250 | 305 | 722 | 888 | ||||
Preferred dividends of subsidiaries | ' | -2 | -1 | -5 | ||||
Total comprehensive income, after preferred dividends of subsidiaries | ' | 303 | 721 | 883 | ||||
Noncontrolling Interests [Member] | ' | ' | ' | ' | ||||
Net income | 35 | 22 | 76 | 41 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Foreign currency translation adjustments | -11 | 0 | -12 | -24 | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | 3 | -2 | 2 | 16 | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | -8 | -2 | -10 | -8 | ||||
Total Comprehensive Income | 27 | 20 | 66 | 33 | ||||
Preferred dividends of subsidiaries | ' | 0 | 0 | 0 | ||||
Total comprehensive income, after preferred dividends of subsidiaries | ' | 20 | 66 | 33 | ||||
Total Equity [Member] | ' | ' | ' | ' | ||||
Net income | 383 | 323 | 941 | 768 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Foreign currency translation adjustments | -111 | 5 | -153 | 125 | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 5 | 3 | 13 | 7 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | 0 | -6 | -13 | 21 | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | -106 | 2 | -153 | 153 | ||||
Total Comprehensive Income | 277 | 325 | 788 | 921 | ||||
Preferred dividends of subsidiaries | ' | -2 | -1 | -5 | ||||
Total comprehensive income, after preferred dividends of subsidiaries | ' | 323 | 787 | 916 | ||||
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Net income | 169 | 139 | 399 | 293 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | -7 | [1] | -9 | [1] | -7 | [1] | -9 | [1] |
San Diego Gas and Electric Company and Subsidiary [Member] | Before-Tax Amount [Member] | ' | ' | ' | ' | ||||
Net income | 222 | 218 | 596 | 439 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 1 | 2 | 3 | 3 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | 1 | 2 | 3 | 3 | ||||
Total Comprehensive Income | 223 | 220 | 599 | 442 | ||||
San Diego Gas and Electric Company and Subsidiary [Member] | Income Tax (Expense) Benefit [Member] | ' | ' | ' | ' | ||||
Net income | -65 | -84 | -217 | -147 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 0 | -1 | -1 | -1 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | 0 | -1 | -1 | -1 | ||||
Total Comprehensive Income | -65 | -85 | -218 | -148 | ||||
San Diego Gas and Electric Company and Subsidiary [Member] | Net-of-Tax Amount [Member] | ' | ' | ' | ' | ||||
Net income | 157 | 134 | 379 | 292 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 1 | 1 | 2 | 2 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | 1 | 1 | 2 | 2 | ||||
Total Comprehensive Income | 158 | 135 | 381 | 294 | ||||
San Diego Gas and Electric Company and Subsidiary [Member] | Noncontrolling Interests [Member] | ' | ' | ' | ' | ||||
Net income | 12 | 5 | 20 | 1 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | 4 | -1 | 3 | 14 | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | 4 | -1 | 3 | 14 | ||||
Total Comprehensive Income | 16 | 4 | 23 | 15 | ||||
San Diego Gas and Electric Company and Subsidiary [Member] | Total Equity [Member] | ' | ' | ' | ' | ||||
Net income | 169 | 139 | 399 | 293 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 1 | 1 | 2 | 2 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | 4 | -1 | 3 | 14 | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | 5 | 0 | 5 | 16 | ||||
Total Comprehensive Income | 174 | 139 | 404 | 309 | ||||
Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Net income | 98 | 102 | 257 | 267 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | -16 | [1] | -17 | [1] | -16 | [1] | -17 | [1] |
Southern California Gas Company [Member] | Before-Tax Amount [Member] | ' | ' | ' | ' | ||||
Net income | 142 | ' | 367 | 374 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 4 | ' | 4 | ' | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | ' | ' | ' | 1 | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | 4 | ' | 4 | 1 | ||||
Total Comprehensive Income | 146 | 140 | 371 | 375 | ||||
Southern California Gas Company [Member] | Income Tax (Expense) Benefit [Member] | ' | ' | ' | ' | ||||
Net income | -44 | ' | -110 | -107 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | -2 | ' | -2 | ' | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | ' | ' | ' | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | -2 | ' | -2 | 0 | ||||
Total Comprehensive Income | -46 | -38 | -112 | -107 | ||||
Southern California Gas Company [Member] | Net-of-Tax Amount [Member] | ' | ' | ' | ' | ||||
Net income | 98 | ' | 257 | 267 | ||||
Comprehensive income, net of income tax | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 2 | ' | 2 | ' | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | ' | ' | ' | 1 | ||||
Other Comprehensive Income (Loss), Net of Tax, Total | 2 | ' | 2 | 1 | ||||
Total Comprehensive Income | $100 | $102 | $259 | $268 | ||||
[1] | All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | 9 Months Ended | ||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
USD ($) | USD ($) | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | Southern California Gas Company [Member] | Southern California Gas Company [Member] | ||||
USD ($) | USD ($) | USD ($) | USD ($) | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' | ' | ' | ' | |||
Net income | $941,000,000 | $768,000,000 | $399,000,000 | $293,000,000 | $257,000,000 | $267,000,000 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | |||
Depreciation and amortization | 866,000,000 | 828,000,000 | ' | ' | ' | ' | |||
Utility depreciation and amortization | ' | ' | 395,000,000 | 367,000,000 | 321,000,000 | 280,000,000 | |||
Deferred income taxes and investment tax credits | 131,000,000 | 327,000,000 | 193,000,000 | 100,000,000 | 94,000,000 | 72,000,000 | |||
Gain on sale of equity interest and assets | -48,000,000 | -113,000,000 | ' | ' | ' | ' | |||
Plant closure (adjustment) loss | -13,000,000 | 200,000,000 | ' | ' | ' | ' | |||
Utility plant closure (adjustment) loss | ' | ' | -13,000,000 | 200,000,000 | ' | ' | |||
Equity earnings | -84,000,000 | -34,000,000 | ' | ' | ' | ' | |||
Fixed-price contracts and other derivatives | -19,000,000 | -25,000,000 | -5,000,000 | -7,000,000 | ' | ' | |||
Other | 32,000,000 | 23,000,000 | -30,000,000 | -9,000,000 | -2,000,000 | -6,000,000 | |||
Net change in other working capital components | -215,000,000 | -454,000,000 | -252,000,000 | -284,000,000 | -19,000,000 | -56,000,000 | |||
Changes in other assets | 28,000,000 | -203,000,000 | 106,000,000 | -164,000,000 | -70,000,000 | -65,000,000 | |||
Changes in other liabilities | 42,000,000 | 13,000,000 | 28,000,000 | 13,000,000 | 15,000,000 | -5,000,000 | |||
Net cash provided by operating activities | 1,661,000,000 | 1,330,000,000 | 821,000,000 | 509,000,000 | 596,000,000 | 487,000,000 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' | ' | ' | ' | |||
Expenditures for property, plant and equipment | -2,320,000,000 | -1,785,000,000 | -790,000,000 | -679,000,000 | -764,000,000 | -521,000,000 | |||
Expenditures for investments | -192,000,000 | -21,000,000 | ' | ' | ' | ' | |||
Proceeds from sale of equity interest and assets, net of cash sold | 92,000,000 | 566,000,000 | ' | ' | ' | ' | |||
Proceeds from U.S. Treasury grants | 0 | 238,000,000 | ' | ' | ' | ' | |||
Distributions from investments | 15,000,000 | 141,000,000 | ' | ' | ' | ' | |||
Purchases of nuclear decommissioning and other trust assets | -505,000,000 | -514,000,000 | -501,000,000 | -511,000,000 | ' | ' | |||
Proceeds from sales by nuclear decommissioning and other trusts | 498,000,000 | 510,000,000 | 498,000,000 | 507,000,000 | ' | ' | |||
Decrease in restricted cash | 156,000,000 | 285,000,000 | 109,000,000 | 54,000,000 | ' | ' | |||
Increase in restricted cash | -139,000,000 | -311,000,000 | -96,000,000 | -52,000,000 | ' | ' | |||
Decrease (increase) in loans to affiliates, net | -81,000,000 | 0 | ' | ' | -281,000,000 | 17,000,000 | |||
Other cash flows from investing activities | 10,000,000 | -10,000,000 | -16,000,000 | 3,000,000 | ' | ' | |||
Net cash used in investing activities | -2,466,000,000 | -901,000,000 | -796,000,000 | -678,000,000 | -1,045,000,000 | -504,000,000 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' | ' | ' | ' | |||
Common dividends paid | -450,000,000 | -452,000,000 | ' | ' | 0 | -50,000,000 | |||
Preferred dividends paid | ' | ' | 0 | -4,000,000 | -1,000,000 | -1,000,000 | |||
Preferred dividends paid by subsidiaries | -1,000,000 | -5,000,000 | ' | ' | ' | ' | |||
Proceeds from issuances of common stock | 43,000,000 | 57,000,000 | ' | ' | ' | ' | |||
Repurchases of common stock | -38,000,000 | -45,000,000 | ' | ' | ' | ' | |||
Issuances of long-term debt | 3,063,000,000 | 1,404,000,000 | 100,000,000 | 450,000,000 | 747,000,000 | 0 | |||
Payments on long-term debt | -1,845,000,000 | -1,444,000,000 | -22,000,000 | -183,000,000 | -250,000,000 | 0 | |||
Proceeds from sale of noncontrolling interests, net of $25 million in offering costs | 0 | 574,000,000 | ' | ' | ' | ' | |||
Increase (decrease) in short-term debt, net | -111,000,000 | 81,000,000 | -59,000,000 | 0 | -42,000,000 | 0 | |||
Distributions to noncontrolling interests | -84,000,000 | -28,000,000 | -38,000,000 | -12,000,000 | ' | ' | |||
Other cash flows from financing activities | -5,000,000 | 15,000,000 | 0 | -2,000,000 | -7,000,000 | 0 | |||
Net cash provided by (used in) financing activities | 572,000,000 | 157,000,000 | -19,000,000 | 249,000,000 | 447,000,000 | -51,000,000 | |||
Effect of exchange rate changes on cash and cash equivalents | -4,000,000 | 0 | ' | ' | ' | ' | |||
Increase (decrease) in cash and cash equivalents | -237,000,000 | 586,000,000 | 6,000,000 | 80,000,000 | -2,000,000 | -68,000,000 | |||
Cash and cash equivalents, beginning of period | 904,000,000 | [1] | 475,000,000 | 27,000,000 | [1] | 87,000,000 | 27,000,000 | [1] | 83,000,000 |
Cash and cash equivalents, end of period | 667,000,000 | 1,061,000,000 | 33,000,000 | 167,000,000 | 25,000,000 | 15,000,000 | |||
Sale of noncontrolling interests offering costs | ' | 25,000,000 | ' | ' | ' | ' | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' | ' | ' | ' | ' | |||
Interest payments, net of amounts capitalized | 359,000,000 | 359,000,000 | 136,000,000 | 127,000,000 | 43,000,000 | 44,000,000 | |||
Income tax payments, net of refunds | 154,000,000 | 106,000,000 | -4,000,000 | 33,000,000 | 19,000,000 | 66,000,000 | |||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ' | ' | ' | ' | ' | ' | |||
Nuclear facility plant reclassified to regulatory asset, net of depreciation and amortization | 0 | 512,000,000 | 0 | 512,000,000 | ' | ' | |||
Accrued capital expenditures | 385,000,000 | 285,000,000 | 118,000,000 | 108,000,000 | 137,000,000 | 97,000,000 | |||
Increase in capital lease obligations for investments in property, plant and equipment | 60,000,000 | 0 | 60,000,000 | 0 | ' | ' | |||
Capital expenditures recoverable by U. S. Treasury grants receivable | 0 | 3,000,000 | ' | ' | ' | ' | |||
Sequestration of U.S. Treasury grants receivable | 0 | -23,000,000 | ' | ' | ' | ' | |||
Acquisition Of Business [Abstract] | ' | ' | ' | ' | ' | ' | |||
Assets acquired | 0 | 13,000,000 | ' | ' | ' | ' | |||
Cash paid, net of cash acquired | 0 | -11,000,000 | ' | ' | ' | ' | |||
Liabilities Assumed | 0 | 2,000,000 | ' | ' | ' | ' | |||
Call premium on preferred stock of subsidiary | 0 | 3,000,000 | ' | ' | ' | ' | |||
Call premium on preferred stock | ' | ' | 0 | 3,000,000 | ' | ' | |||
Dividends declared but not paid | 166,000,000 | 158,000,000 | 0 | 1,000,000 | ' | ' | |||
Financing of build-to-suit property | $49,000,000 | $0 | ' | ' | ' | ' | |||
[1] | Derived from audited financial statements. |
GENERAL
GENERAL | 3 Months Ended |
Sep. 30, 2014 | |
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 12. | |
We refer to SDG&E and SoCalGas collectively as the California Utilities, which do not include the utilities in our Sempra International and Sempra U.S. Gas & Power operating units. Sempra Global is the holding company for most of our subsidiaries that are not subject to California utility regulation. All references in these Notes to “Sempra International,” “Sempra U.S. Gas & Power” and their respective reportable segments are not intended to refer to any legal entity with the same or similar name. | |
Our Sempra Mexico segment includes the operating companies of our subsidiary, Infraestructura Energética Nova, S.A.B. de C.V. (IEnova), as well as certain holding companies and risk management activity. We discuss IEnova further in Note 5 under “Shareholders’ Equity and Noncontrolling Interests – Sale of Noncontrolling Interests.” | |
Sempra Energy uses the equity method to account for investments in affiliated companies over which we have the ability to exercise significant influence, but not control. We discuss our investments in unconsolidated entities in Notes 4 and 13 herein and in Notes 3 and 4 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2013 (the Annual Report), which includes the combined reports for Sempra Energy, SDG&E and SoCalGas. | |
SDG&E | |
SDG&E’s Condensed Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E is the primary beneficiary, as we discuss in Note 5 under “Variable Interest Entities.” SDG&E’s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. | |
SoCalGas | |
SoCalGas’ Condensed Consolidated Financial Statements include its accounts and the de minimus accounts of inactive subsidiaries. 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 of America (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, 2014 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, 2013 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2013 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 the Annual Report. | |
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 México, S. de R.L. de C.V. (Ecogas) in northern Mexico, all natural gas distribution utilities. The California Utilities, Sempra Natural Gas’ Mobile Gas and Willmut Gas, and Sempra Mexico’s Ecogas prepare their financial statements in accordance with U.S. GAAP provisions governing regulated operations, as we discuss in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. | |
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, 2014 | |
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) 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 adopted ASU 2013-11 on January 1, 2014 as required, and it did not significantly affect our financial condition, results of operations or cash flows. | |
ASU 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09): ASU 2014-09 provides accounting guidance for revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. The guidance also provides a model for the measurement and recognition of gains and losses on the sale of certain nonfinancial assets, such as property and equipment, including real estate. This guidance must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. | |
We will adopt ASU 2014-09 on January 1, 2017 as required, and we are currently evaluating the effect of adopting it on our financial condition, results of operations and cash flows. |
RECENT_INVESTMENT_ACTIVITY
RECENT INVESTMENT ACTIVITY | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Notes to Consolidated Financial Statements [Abstract] | ' | |||||||
Recent Investment Activity | ' | |||||||
NOTE 3. ACQUISITION AND DIVESTITURE ACTIVITY | ||||||||
During the nine months ended September 30, 2014 and 2013, Sempra Energy completed the sale of equity interests in various subsidiaries that were previously wholly owned. The following table summarizes the deconsolidation of those subsidiaries, and we discuss each transaction below: | ||||||||
DECONSOLIDATION OF SUBSIDIARIES | ||||||||
(Dollars in millions) | ||||||||
Energía Sierra Juárez | Copper MountainSolar 3 | Sempra Energy Consolidated | ||||||
At July 16 | At March 13 | |||||||
2014:00:00 | ||||||||
Proceeds from sale, net of negligible transaction costs | $ | 26 | $ | 68 | $ | 94 | ||
Cash | -2 | -2 | -4 | |||||
Other current assets | -11 | ― | -11 | |||||
Property, plant and equipment, net | -137 | -247 | -384 | |||||
Other assets | -16 | -11 | -27 | |||||
Accounts payable and accrued expenses | 10 | 82 | 92 | |||||
Due to affiliate | 39 | ― | 39 | |||||
Long-term debt, including current portion | 82 | 97 | 179 | |||||
Other liabilities | 7 | 3 | 10 | |||||
Accumulated other comprehensive income | -5 | -2 | -7 | |||||
Gain on sale of equity interests | -19 | -27 | -46 | |||||
Equity method investments upon deconsolidation | $ | -26 | $ | -39 | $ | -65 | ||
Mesquite Solar 1 | Copper Mountain Solar 2 | Sempra Energy Consolidated | ||||||
At September 19 | At July 11 | |||||||
2013:00:00 | ||||||||
Proceeds from sale, net of transaction costs(1) | $ | 100 | $ | 68 | $ | 168 | ||
Property, plant and equipment, net | -461 | -266 | -727 | |||||
Other assets | -72 | -30 | -102 | |||||
Long-term debt, including current portion | 297 | 146 | 443 | |||||
Other liabilities | 31 | 19 | 50 | |||||
Gain on sale of equity interests | -36 | -4 | -40 | |||||
Equity method investments upon deconsolidation | $ | -141 | $ | -67 | $ | -208 | ||
-1 | Transaction costs were $3 million at both Mesquite Solar 1 and Copper Mountain Solar 2. | |||||||
SEMPRA MEXICO | ||||||||
In July 2014, Sempra Mexico completed the sale of a 50-percent interest in the 155-megawatt (MW) first phase of its Energía Sierra Juárez wind project to a wholly owned subsidiary of InterGen N.V. for cash proceeds of $24 million, net of $2 million cash sold. Sempra Mexico recognized a pretax gain on the sale of $19 million ($14 million after-tax) included in Gain on Sale of Equity Interests and Assets on our Condensed Consolidated Statements of Operations for the three months and nine months ended September 30, 2014. The gain on sale included a $7 million after-tax gain attributable to the remeasurement of the retained investment to fair value. Our remaining 50-percent interest in Energía Sierra Juárez is accounted for under the equity method. | ||||||||
SEMPRA RENEWABLES | ||||||||
In July 2013, Sempra Renewables formed a joint venture with Consolidated Edison Development (ConEdison Development), a nonrelated party, by selling a 50-percent interest in its 150-MW Copper Mountain Solar 2 solar power facility for $71 million in cash. Sempra Renewables recognized a pretax gain on the sale of $4 million ($2 million after-tax), included in Gain on Sale of Equity Interests and Assets on our Condensed Consolidated Statements of Operations for the three months and nine months ended September 30, 2013. | ||||||||
In September 2013, Sempra Renewables acquired the rights to develop the 75-MW Broken Bow 2 Wind project in Custer County, Nebraska. The project achieved commercial operation in October 2014. Sempra Renewables does not have an ownership interest in the Broken Bow 1 Wind Farm. | ||||||||
In September 2013, Sempra Renewables formed a 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. Sempra Renewables recognized a pretax gain on the sale of $36 million ($22 million after-tax), included in Gain on Sale of Equity Interests and Assets on our Condensed Consolidated Statements of Operations for the three months and nine months ended September 30, 2013. | ||||||||
In March 2014, Sempra Renewables formed a joint venture with ConEdison Development by selling a 50-percent interest in its 250-MW Copper Mountain Solar 3 solar power facility for $66 million in cash, net of $2 million cash sold. Sempra Renewables recognized a pretax gain on the sale of $27 million ($16 million after-tax), included in Gain on Sale of Equity Interests and Assets on our Condensed Consolidated Statement of Operations for the nine months ended September 30, 2014. | ||||||||
In May 2014, Sempra Renewables invested $109 million, subject to a commitment for a purchase price adjustment to be based on financial position at closing, to become a 50-percent partner with ConEdison Development in four solar projects in California. We discuss our investment in the California solar partnership further in Note 4. | ||||||||
Our remaining 50-percent interests in Copper Mountain Solar 2, Mesquite Solar 1 and Copper Mountain Solar 3 are accounted for under the equity method. Based on the nature of the underlying assets, these solar investments are considered in-substance real estate. Therefore, in accordance with applicable U.S. GAAP, for each of these solar investment transactions, the equity method investments were measured at their historical cost and no portion of the gains was attributable to a remeasurement of the retained investments to fair value. | ||||||||
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). We recognized a pretax gain on the sale of $74 million ($44 million after-tax), included in Gain on Sale of Equity Interests and Assets on our Condensed Consolidated Statement of Operations for the nine months ended September 30, 2013. | ||||||||
Cameron LNG | ||||||||
October 1, 2014 was the effective date of the formation of a joint venture partnership among Sempra Energy and three project partners involving Sempra Natural Gas’ Cameron LNG facility in Louisiana, as we discuss in Note 13. As of October 1, 2014, Sempra Natural Gas will account for its investment in the Cameron LNG joint venture under the equity method. | ||||||||
Asset Held for Sale, Power Plant | ||||||||
In January 2014, management approved a formal plan to market and sell the remaining 625-MW block of the Mesquite Power plant. In October 2014, Sempra Natural Gas entered into a definitive agreement to sell the remaining 625-MW block of the Mesquite Power plant to ArcLight Capital Partners, LLC. We anticipate the sale will close late in 2014 or early in 2015, subject to customary regulatory approvals and assignment to the buyer of a 25-year power sales contract associated with the plant. | ||||||||
We classify assets as held for sale when management approves and commits to a formal plan to actively market an asset for sale and we expect the sale to close within the next twelve months. Upon classifying an asset as held for sale, we record the asset at the lower of its carrying value or its estimated fair value reduced for selling costs, and we stop recording depreciation expense on the asset. | ||||||||
At September 30, 2014, the carrying amount of the major classes of assets and related liability held for sale associated with the plant includes the following: | ||||||||
(Dollars in millions) | ||||||||
Property, plant and equipment, net | $ | 290 | ||||||
Inventories | 3 | |||||||
Total assets held for sale | 293 | |||||||
Liability held for sale - asset retirement obligation(1) | -6 | |||||||
$ | 287 | |||||||
-1 | Included in Other Current Liabilities on the Condensed Consolidated Balance Sheets. | |||||||
The estimated fair value, including estimated costs to sell, exceeds the carrying amount at September 30, 2014. |
INVESTMENTS_IN_UNCONSOLIDATED_
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 3 Months Ended |
Sep. 30, 2014 | |
Notes to Consolidated Financial Statements [Abstract] | ' |
Investments in Unconsolidated Entities | ' |
NOTE 4. INVESTMENTS IN UNCONSOLIDATED ENTITIES | |
We provide additional information concerning our equity method investments in 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 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 at that time. 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. | |
SEMPRA RENEWABLES | |
In May 2014, Sempra Renewables invested $109 million, subject to a purchase price adjustment, to become a 50-percent partner with ConEdison Development in four solar projects in California. The joint venture includes ConEdison Development’s CED California Holdings, LLC portfolio, which consists of the 50-MW Alpaugh 50, the 20-MW Alpaugh North and the 20-MW White River 1 facilities in Tulare County, and the 20-MW Corcoran 1 facility in Kings County (collectively, the California solar partnership). The renewable power from all of the projects has been sold under long-term contracts. Sempra Renewables and ConEdison Development each own a 50-percent interest in the four fully operating solar facilities. | |
Additionally, Sempra Renewables invested cash of $76 million and $5 million in its joint ventures during the nine months ended September 30, 2014 and 2013, respectively. | |
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, if any, in Equity Earnings, Before Income Tax on our Condensed Consolidated Statements of Operations. | |
We received a distribution from the partnership of $50 million in May 2013. The investment balance of $73 million at September 30, 2014 reflects remaining distributions expected to be received from the partnership in accordance with provisions of a 2011 agreement between us and RBS that addresses the wind-down of the partnership and the distribution of the partnership’s remaining assets. The amount of distributions may be impacted by the matters we discuss related to RBS Sempra Commodities in Note 11 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. | |
We recorded no equity earnings or losses related to the partnership for any of the three-month or nine-month periods ended September 30, 2014 and 2013. |
OTHER_FINANCIAL_DATA
OTHER FINANCIAL DATA | 3 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Notes to Consolidated Financial Statements [Abstract] | ' | |||||||||||||||||
Other Financial Data | ' | |||||||||||||||||
NOTE 5. OTHER FINANCIAL DATA | ||||||||||||||||||
U.S. TREASURY GRANTS | ||||||||||||||||||
At December 31, 2012, we had receivables for U.S. Treasury grants based on eligible costs at certain of our renewable generating facilities. 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, 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-14 | 31-Dec-13 | 30-Sep-14 | 31-Dec-13 | 30-Sep-14 | 31-Dec-13 | 30-Sep-14 | 31-Dec-13 | |||||||||||
SDG&E | $ | 6 | $ | 3 | $ | ― | $ | ― | $ | 64 | $ | 83 | $ | 70 | $ | 86 | ||
SoCalGas | 192 | 42 | ― | ― | 29 | 27 | 221 | 69 | ||||||||||
Sempra South American | ||||||||||||||||||
Utilities | ― | ― | ― | ― | 36 | 40 | 36 | 40 | ||||||||||
Sempra Mexico | ― | ― | 6 | 3 | 9 | 9 | 15 | 12 | ||||||||||
Sempra Renewables | ― | ― | ― | ― | 3 | 2 | 3 | 2 | ||||||||||
Sempra Natural Gas | 121 | 68 | 5 | 5 | 1 | 5 | 127 | 78 | ||||||||||
Sempra Energy | ||||||||||||||||||
Consolidated | $ | 319 | $ | 113 | $ | 11 | $ | 8 | $ | 142 | $ | 166 | $ | 472 | $ | 287 | ||
GOODWILL | ||||||||||||||||||
We discuss goodwill in Notes 1 and 3 of the Notes to Consolidated Financial Statements in the Annual Report. The decrease in goodwill from $1.024 billion at December 31, 2013 to $951 million at September 30, 2014 is due to foreign currency translation at Sempra South American Utilities. We record the offset of this fluctuation in Other Comprehensive Income (Loss). | ||||||||||||||||||
VARIABLE INTEREST ENTITIES (VIE) | ||||||||||||||||||
We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based upon qualitative and quantitative analyses, which assess | ||||||||||||||||||
the purpose and design of the VIE; | ||||||||||||||||||
the nature of the VIE’s risks and the risks we absorb; | ||||||||||||||||||
the power to direct activities that most significantly impact the economic performance of the VIE; and | ||||||||||||||||||
the obligation to absorb losses or right to receive benefits that could be significant to 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 a qualitative approach in which we consider the operational characteristics of the facility, including its expected power generation output relative to its capacity to generate and the financial structure of the entity, among other factors. If we determine that SDG&E is the primary beneficiary, SDG&E and Sempra Energy consolidate the entity that owns the facility as a VIE, as we discuss below. | ||||||||||||||||||
Otay Mesa VIE | ||||||||||||||||||
SDG&E has 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. Accordingly, SDG&E and Sempra Energy have consolidated Otay Mesa VIE. Otay Mesa VIE’s equity of $77 million at September 30, 2014 and $91 million at December 31, 2013 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 $327 million at September 30, 2014, 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 at September 30, 2014. 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, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Operating revenues | ||||||||||||||||||
Electric | $ | ― | $ | -4 | $ | ― | $ | ― | ||||||||||
Natural gas | ― | ― | ― | ― | ||||||||||||||
Total operating revenues | ― | -4 | ― | ― | ||||||||||||||
Operating expenses | ||||||||||||||||||
Cost of electric fuel and purchased power | -27 | -27 | -67 | -65 | ||||||||||||||
Operation and maintenance | 3 | 7 | 13 | 33 | ||||||||||||||
Depreciation and amortization | 7 | 7 | 21 | 20 | ||||||||||||||
Total operating expenses | -17 | -13 | -33 | -12 | ||||||||||||||
Operating income | 17 | 9 | 33 | 12 | ||||||||||||||
Interest expense | -5 | -4 | -13 | -11 | ||||||||||||||
Income before income taxes/Net income | 12 | 5 | 20 | 1 | ||||||||||||||
Earnings attributable to noncontrolling interest | -12 | -5 | -20 | -1 | ||||||||||||||
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 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at January 1(1) | $ | 2,152 | $ | 2,056 | $ | 913 | $ | 741 | $ | 1,199 | $ | 1,253 | ||||||
Accretion expense | 73 | 74 | 33 | 35 | 38 | 37 | ||||||||||||
Liabilities incurred | 3 | 4 | ― | ― | ― | ― | ||||||||||||
Reclassification(2) | -6 | ― | ― | ― | ― | ― | ||||||||||||
Payments | -15 | -1 | -15 | ― | ― | ― | ||||||||||||
Revisions, GRC-related(3) | ― | -135 | ― | -30 | ― | -105 | ||||||||||||
Revisions, other(4)(5) | -34 | 181 | -59 | 207 | 25 | ― | ||||||||||||
Balance at September 30(1) | $ | 2,173 | $ | 2,179 | $ | 872 | $ | 953 | $ | 1,262 | $ | 1,185 | ||||||
-1 | The current portions of the obligations are included in Other Current Liabilities on the Condensed Consolidated Balance Sheets. | |||||||||||||||||
-2 | Reclassification to liability held for sale - asset retirement obligation which is included in Other Current Liabilities on the Condensed Consolidated Balance Sheets, as we discuss in "Sempra Natural Gas – Asset Held for Sale, Power Plant" in Note 3 above. | |||||||||||||||||
-3 | The decreases in asset retirement obligations in 2013 at SDG&E and SoCalGas were 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 included increases in asset service lives ranging from 4 percent to 6 percent, partially offset by a higher estimated cost of removal. | |||||||||||||||||
-4 | The decrease in asset retirement obligations in 2014 at SDG&E is due to revised estimates in an updated decommissioning cost study for the San Onofre Nuclear Generating Station, which we discuss in Note 9. The increase in asset retirement obligations in 2014 at SoCalGas is related to a change in estimates. | |||||||||||||||||
-5 | 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, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Service cost | $ | 23 | $ | 28 | $ | 6 | $ | 8 | ||||||||||
Interest cost | 39 | 35 | 13 | 10 | ||||||||||||||
Expected return on assets | -42 | -39 | -15 | -15 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 3 | 1 | -2 | -1 | ||||||||||||||
Actuarial loss | 3 | 11 | ― | ― | ||||||||||||||
Settlements and special termination benefits | 5 | 1 | 5 | ― | ||||||||||||||
Regulatory adjustment | 6 | -14 | 5 | 3 | ||||||||||||||
Total net periodic benefit cost | $ | 37 | $ | 23 | $ | 12 | $ | 5 | ||||||||||
Nine months ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Service cost | $ | 75 | $ | 82 | $ | 18 | $ | 21 | ||||||||||
Interest cost | 121 | 111 | 37 | 33 | ||||||||||||||
Expected return on assets | -128 | -121 | -47 | -44 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 8 | 3 | -4 | -3 | ||||||||||||||
Actuarial loss | 13 | 41 | ― | 5 | ||||||||||||||
Settlements and special termination benefits | 14 | 1 | 5 | ― | ||||||||||||||
Regulatory adjustment | -18 | -65 | 5 | 7 | ||||||||||||||
Total net periodic benefit cost | $ | 85 | $ | 52 | $ | 14 | $ | 19 | ||||||||||
NET PERIODIC BENEFIT COST – SDG&E | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
Three months ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Service cost | $ | 8 | $ | 8 | $ | 2 | $ | 2 | ||||||||||
Interest cost | 10 | 9 | 3 | 2 | ||||||||||||||
Expected return on assets | -13 | -13 | -2 | -3 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost | ― | ― | ― | 1 | ||||||||||||||
Actuarial loss | 1 | 3 | ― | ― | ||||||||||||||
Settlements and special termination benefits | ― | 1 | 5 | ― | ||||||||||||||
Regulatory adjustment | 6 | 3 | 4 | 1 | ||||||||||||||
Total net periodic benefit cost | $ | 12 | $ | 11 | $ | 12 | $ | 3 | ||||||||||
Nine months ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Service cost | $ | 23 | $ | 24 | $ | 5 | $ | 6 | ||||||||||
Interest cost | 32 | 30 | 7 | 6 | ||||||||||||||
Expected return on assets | -41 | -39 | -8 | -7 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost | 1 | 1 | 2 | 3 | ||||||||||||||
Actuarial loss | 3 | 10 | ― | ― | ||||||||||||||
Settlements and special termination benefits | 2 | 1 | 5 | ― | ||||||||||||||
Regulatory adjustment | 7 | -3 | 1 | 1 | ||||||||||||||
Total net periodic benefit cost | $ | 27 | $ | 24 | $ | 12 | $ | 9 | ||||||||||
NET PERIODIC BENEFIT COST – SOCALGAS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
Three months ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Service cost | $ | 13 | $ | 17 | $ | 4 | $ | 5 | ||||||||||
Interest cost | 24 | 22 | 9 | 8 | ||||||||||||||
Expected return on assets | -26 | -24 | -12 | -12 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 2 | ― | -2 | -2 | ||||||||||||||
Actuarial loss | 1 | 6 | ― | ― | ||||||||||||||
Settlement | 4 | ― | ― | ― | ||||||||||||||
Regulatory adjustment | ― | -17 | 1 | 2 | ||||||||||||||
Total net periodic benefit cost | $ | 18 | $ | 4 | $ | ― | $ | 1 | ||||||||||
Nine months ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Service cost | $ | 45 | $ | 50 | $ | 12 | $ | 13 | ||||||||||
Interest cost | 75 | 68 | 28 | 26 | ||||||||||||||
Expected return on assets | -78 | -73 | -38 | -36 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 6 | 1 | -6 | -6 | ||||||||||||||
Actuarial loss | 5 | 23 | ― | 4 | ||||||||||||||
Settlement | 4 | ― | ― | ― | ||||||||||||||
Regulatory adjustment | -25 | -62 | 4 | 6 | ||||||||||||||
Total net periodic benefit cost | $ | 32 | $ | 7 | $ | ― | $ | 7 | ||||||||||
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 2014: | ||||||||||||||||||
Sempra Energy | ||||||||||||||||||
(Dollars in millions) | Consolidated | SDG&E | SoCalGas | |||||||||||||||
Contributions through September 30, 2014: | ||||||||||||||||||
Pension plans | $ | 95 | $ | 28 | $ | 39 | ||||||||||||
Other postretirement benefit plans | 14 | 12 | ― | |||||||||||||||
Total expected contributions in 2014: | ||||||||||||||||||
Pension plans | $ | 128 | $ | 55 | $ | 40 | ||||||||||||
Other postretirement benefit plans | 16 | 14 | ― | |||||||||||||||
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 $477 million and $506 million at September 30, 2014 and December 31, 2013, 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, 2014 and 2013. Basic earnings per common share (EPS) is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were 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, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Numerator: | ||||||||||||||||||
Earnings/Income attributable to common shares | $ | 348 | $ | 296 | $ | 864 | $ | 719 | ||||||||||
Denominator: | ||||||||||||||||||
Weighted-average common shares | ||||||||||||||||||
outstanding for basic EPS | 246,137 | 244,140 | 245,703 | 243,682 | ||||||||||||||
Dilutive effect of stock options, restricted | ||||||||||||||||||
stock awards and restricted stock units | 4,634 | 5,119 | 4,575 | 5,041 | ||||||||||||||
Weighted-average common shares | ||||||||||||||||||
outstanding for diluted EPS | 250,771 | 249,259 | 250,278 | 248,723 | ||||||||||||||
Earnings per share: | ||||||||||||||||||
Basic | $ | 1.41 | $ | 1.21 | $ | 3.52 | $ | 2.95 | ||||||||||
Diluted | 1.39 | 1.19 | 3.45 | 2.89 | ||||||||||||||
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 of dilutive common stock equivalents excludes options for which the exercise price on common stock was greater than the average market price during the period (out-of-the-money options). We had no such antidilutive stock options outstanding during either the three months or nine months ended September 30, 2014 and 2013. | ||||||||||||||||||
During the three months and nine months ended September 30, 2014 and 2013, 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 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 or RSAs from the application of unearned compensation in the treasury stock method for either the three months or nine months ended September 30, 2014 and 2013. | ||||||||||||||||||
Each performance-based RSU represents the right to receive up to 1.5 shares (2.0 shares for awards granted in 2014) of Sempra Energy common stock based on total shareholder return or EPS growth. RSU awards vest 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)(3) | |||||||||||||||||
90th percentile or above (2014 awards only) | 2 | |||||||||||||||||
75th percentile (maximum for awards prior to 2014) | 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 deemed reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate. | |||||||||||||||||
-3 | If performance falls between the tiers shown above, we calculate the payout using linear interpolation. | |||||||||||||||||
Beginning in January 2014, we issued performance-based RSUs representing the right to receive up to 2.0 shares of Sempra Energy common stock based on Sempra Energy’s four-year EPS compound annual growth rate beginning January 1, 2014 and ending on December 31, 2017. These RSU awards vest as follows: | ||||||||||||||||||
Four-Year Earnings Per Share Compound Annual Growth Rate | Number of Sempra Energy Common Shares Received for Each Performance-Based Restricted Stock Unit(1)(2) | |||||||||||||||||
8.0% or above | 2 | |||||||||||||||||
6.70% | 1.5 | |||||||||||||||||
4.40% | 1 | |||||||||||||||||
3.3% or below | ― | |||||||||||||||||
-1 | Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are deemed reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate. | |||||||||||||||||
-2 | If performance falls between the tiers shown above, we calculate the payout using linear interpolation. | |||||||||||||||||
Our RSAs, which are solely service-based, and those RSUs that are solely service-based represent the right to receive 1.0 share at the end of the service period and have the same dividend equivalent rights as performance-based RSUs. We include RSAs and those RSUs that are solely service-based in potential dilutive shares at 100 percent, subject to the application of the treasury stock method. We include our performance-based RSUs in potential dilutive shares at zero to up to 200 percent to the extent that they currently meet the performance requirements for vesting, subject to the application of the treasury stock method. Due to market fluctuations of both Sempra Energy stock and the comparative indices, dilutive performance-based RSU shares may vary widely from period-to-period. If it were assumed that performance goals for all RSUs were met at maximum levels and if the treasury stock method were not applied to any of our RSAs or RSUs, the incremental potential dilutive shares would be 844,251 and 971,943 for the three months and nine months ended September 30, 2014, respectively, and 712,941 and 889,420 for the three months and nine months ended September 30, 2013, 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. The redemption was completed in October 2013 and, accordingly, we recorded the redemption value, including a $3 million early call premium, as a current liability at September 30, 2013. 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 11 of the Notes to Consolidated Financial Statements in the Annual Report. | ||||||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||||||
We discuss our share-based compensation plans in Note 8 of the Notes to Consolidated Financial Statements in the Annual Report. We recorded share-based compensation expense, net of income taxes, of $8 million and $6 million for the three months ended September 30, 2014 and 2013, respectively, and $22 million and $17 million for the nine months ended September 30, 2014 and 2013, respectively. Pursuant to our Sempra Energy share-based compensation plans, Sempra Energy’s board of directors granted 444,241 performance-based RSUs and 108,986 service-based RSUs during the nine months ended September 30, 2014, primarily in January. Of the 444,241 performance-based RSUs granted, 355,638 vest based on our four-year comparative total shareholder return performance and 88,603 vest based on our four-year EPS compound annual growth rate performance. | ||||||||||||||||||
During the nine months ended September 30, 2014, IEnova issued 136,996 RSUs from the IEnova 2013 Long-Term Incentive Plan, under which, awards are cash settled based on the price of IEnova common stock. | ||||||||||||||||||
CAPITALIZED FINANCING COSTS | ||||||||||||||||||
Capitalized financing costs include capitalized interest costs and, primarily at the California Utilities, an allowance for funds used during construction (AFUDC) related to both debt and equity financing of construction projects. | ||||||||||||||||||
Pipeline projects currently under construction by Sempra Mexico that are both regulated by the Comisión Reguladora de Energía (or CRE, the Energy Regulatory Commission) and meet U.S. GAAP regulatory accounting requirements record the impact of AFUDC related to equity. Beginning in the fourth quarter of 2013, Sempra Mexico began recording AFUDC related to equity for its Sonora Pipeline project, which was $14 million and $34 million for the three months and nine months ended September 30, 2014, respectively. | ||||||||||||||||||
The following table shows capitalized financing costs for the three months and nine months ended September 30, 2014 and 2013. | ||||||||||||||||||
CAPITALIZED FINANCING COSTS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
AFUDC related to debt | $ | 5 | $ | 6 | $ | 15 | $ | 17 | ||||||||||
AFUDC related to equity | 28 | 14 | 77 | 44 | ||||||||||||||
Other capitalized financing costs | 6 | 9 | 22 | 22 | ||||||||||||||
Total Sempra Energy Consolidated | $ | 39 | $ | 29 | $ | 114 | $ | 83 | ||||||||||
SDG&E: | ||||||||||||||||||
AFUDC related to debt | $ | 3 | $ | 4 | $ | 10 | $ | 12 | ||||||||||
AFUDC related to equity | 8 | 10 | 26 | 30 | ||||||||||||||
Total SDG&E | $ | 11 | $ | 14 | $ | 36 | $ | 42 | ||||||||||
SoCalGas: | ||||||||||||||||||
AFUDC related to debt | $ | 2 | $ | 2 | $ | 5 | $ | 5 | ||||||||||
AFUDC related to equity | 7 | 4 | 18 | 14 | ||||||||||||||
Total SoCalGas | $ | 9 | $ | 6 | $ | 23 | $ | 19 | ||||||||||
COMPREHENSIVE INCOME | ||||||||||||||||||
The following tables present the changes in Accumulated Other Comprehensive Income (Loss) (AOCI) by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to noncontrolling interests: | ||||||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) | ||||||||||||||||||
SEMPRA ENERGY CONSOLIDATED | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension and Other | ||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||
Foreign | Total | |||||||||||||||||
Currency | Unamortized | Unamortized | Accumulated Other | |||||||||||||||
Translation | Net Actuarial | Prior Service | Financial | Comprehensive | ||||||||||||||
Adjustments | Gain (Loss) | Credit | Instruments | Income (Loss) | ||||||||||||||
Three months ended September 30, 2014 and 2013 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||
Balance as of June 30, 2014 | $ | -170 | $ | -65 | $ | ― | $ | -38 | $ | -273 | ||||||||
Other comprehensive loss before | ||||||||||||||||||
reclassifications | -100 | ― | ― | -2 | -102 | |||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income (loss) | ― | 5 | ― | -1 | 4 | |||||||||||||
Net other comprehensive income (loss) | -100 | 5 | ― | -3 | -98 | |||||||||||||
Balance as of September 30, 2014 | $ | -270 | $ | -60 | $ | ― | $ | -41 | $ | -371 | ||||||||
2013:00:00 | ||||||||||||||||||
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 | ||||||||
Nine months ended September 30, 2014 and 2013 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||
Balance as of December 31, 2013 | $ | -129 | $ | -73 | $ | ― | $ | -26 | $ | -228 | ||||||||
Other comprehensive loss before | ||||||||||||||||||
reclassifications | -141 | ― | ― | -28 | -169 | |||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | ― | 13 | ― | 13 | 26 | |||||||||||||
Net other comprehensive income (loss) | -141 | 13 | ― | -15 | -143 | |||||||||||||
Balance as of September 30, 2014 | $ | -270 | $ | -60 | $ | ― | $ | -41 | $ | -371 | ||||||||
2013:00:00 | ||||||||||||||||||
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 | ||||||||
-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. | |||||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) | ||||||||||||||||||
SAN DIEGO GAS & ELECTRIC COMPANY | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension and Other | ||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||
Total | ||||||||||||||||||
Unamortized | Unamortized | Accumulated Other | ||||||||||||||||
Net Actuarial | Prior Service | Comprehensive | ||||||||||||||||
Gain (Loss) | Credit | Income (Loss) | ||||||||||||||||
Three months ended September 30, 2014 and 2013 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||
Balance as of June 30, 2014 | $ | -9 | $ | 1 | $ | -8 | ||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | 1 | ― | 1 | |||||||||||||||
Net other comprehensive income | 1 | ― | 1 | |||||||||||||||
Balance as of September 30, 2014 | $ | -8 | $ | 1 | $ | -7 | ||||||||||||
2013:00:00 | ||||||||||||||||||
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 | ||||||||||||
Nine months ended September 30, 2014 and 2013 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||
Balance as of December 31, 2013 | $ | -10 | $ | 1 | $ | -9 | ||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | 2 | ― | 2 | |||||||||||||||
Net other comprehensive income | 2 | ― | 2 | |||||||||||||||
Balance as of September 30, 2014 | $ | -8 | $ | 1 | $ | -7 | ||||||||||||
2013:00:00 | ||||||||||||||||||
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 | ||||||||||||
-1 | All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. | |||||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) | ||||||||||||||||||
SOUTHERN CALIFORNIA GAS COMPANY | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension and Other | ||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||
Total | ||||||||||||||||||
Unamortized | Unamortized | Accumulated Other | ||||||||||||||||
Net Actuarial | Prior Service | Financial | Comprehensive | |||||||||||||||
Gain (Loss) | Credit | Instruments | Income (Loss) | |||||||||||||||
Three months ended September 30, 2014 and 2013 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||
Balance as of June 30, 2014 | $ | -5 | $ | 1 | $ | -14 | $ | -18 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | 2 | ― | ― | 2 | ||||||||||||||
Net other comprehensive income | 2 | ― | ― | 2 | ||||||||||||||
Balance as of September 30, 2014 | $ | -3 | $ | 1 | $ | -14 | $ | -16 | ||||||||||
2013:00:00 | ||||||||||||||||||
Balance as of June 30 and September 30, 2013 | $ | -4 | $ | 1 | $ | -14 | $ | -17 | ||||||||||
Nine months ended September 30, 2014 and 2013 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||
Balance as of December 31, 2013 | $ | -5 | $ | 1 | $ | -14 | $ | -18 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | 2 | ― | ― | 2 | ||||||||||||||
Net other comprehensive income | 2 | ― | ― | 2 | ||||||||||||||
Balance as of September 30, 2014 | $ | -3 | $ | 1 | $ | -14 | $ | -16 | ||||||||||
2013:00:00 | ||||||||||||||||||
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. | |||||||||||||||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Details about accumulated | Amounts reclassified | |||||||||||||||||
other comprehensive income (loss) | from accumulated other | Affected line item on Condensed | ||||||||||||||||
components | comprehensive income (loss) | Consolidated Statements of Operations | ||||||||||||||||
Three months ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate and foreign exchange instruments | $ | 8 | $ | 3 | Interest Expense | |||||||||||||
Interest rate instruments | -5 | ― | Gain on Sale of Equity Interests and Assets | |||||||||||||||
Interest rate instruments | 2 | 3 | Equity Earnings, Before Income Tax | |||||||||||||||
Commodity contracts not subject | Revenues: Energy-Related | |||||||||||||||||
to rate recovery | -2 | ― | Businesses | |||||||||||||||
Total before income tax | 3 | 6 | ||||||||||||||||
-1 | -2 | Income Tax Expense | ||||||||||||||||
Net of income tax | 2 | 4 | ||||||||||||||||
-3 | -2 | Earnings Attributable to Noncontrolling Interests | ||||||||||||||||
$ | -1 | $ | 2 | |||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||
Amortization of actuarial loss | $ | 8 | $ | 5 | -1 | |||||||||||||
-3 | -2 | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | 5 | $ | 3 | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 4 | $ | 5 | ||||||||||||||
SDG&E: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 3 | $ | 2 | Interest Expense | |||||||||||||
-3 | -2 | Earnings Attributable to Noncontrolling Interest | ||||||||||||||||
$ | ― | $ | ― | |||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||
Amortization of actuarial loss | $ | 1 | $ | 2 | -1 | |||||||||||||
― | -1 | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | 1 | $ | 1 | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 1 | $ | 1 | ||||||||||||||
SoCalGas: | ||||||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||
Amortization of actuarial loss | $ | 4 | $ | ― | -1 | |||||||||||||
-2 | ― | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | 2 | $ | ― | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 2 | $ | ― | ||||||||||||||
-1 | Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above). | |||||||||||||||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Details about accumulated | Amount reclassified | |||||||||||||||||
other comprehensive income (loss) | from accumulated other | Affected line item on Condensed | ||||||||||||||||
components | comprehensive income (loss) | Consolidated Statements of Operations | ||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Foreign currency translation adjustments | $ | ― | $ | 270 | Equity Earnings, Net of Income Tax(1) | |||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate and foreign exchange instruments | $ | 17 | $ | 9 | Interest Expense | |||||||||||||
Interest rate instruments | -3 | ― | Gain on Sale of Equity Interests and Assets | |||||||||||||||
Interest rate instruments | 7 | 7 | Equity Earnings, Before Income Tax | |||||||||||||||
Commodity contracts not subject to | Revenues: Energy-Related | |||||||||||||||||
rate recovery | 8 | -5 | Businesses | |||||||||||||||
Total before income tax | 29 | 11 | ||||||||||||||||
-8 | -1 | Income Tax Expense | ||||||||||||||||
Net of income tax | 21 | 10 | ||||||||||||||||
-8 | -6 | Earnings Attributable to Noncontrolling Interests | ||||||||||||||||
$ | 13 | $ | 4 | |||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||
Amortization of actuarial loss | $ | 21 | $ | 12 | -2 | |||||||||||||
-8 | -5 | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | 13 | $ | 7 | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 26 | $ | 281 | ||||||||||||||
SDG&E: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 8 | $ | 6 | Interest Expense | |||||||||||||
-8 | -6 | Earnings Attributable to Noncontrolling Interest | ||||||||||||||||
$ | ― | $ | ― | |||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||
Amortization of actuarial loss | $ | 3 | $ | 3 | -2 | |||||||||||||
-1 | -1 | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | 2 | $ | 2 | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 2 | $ | 2 | ||||||||||||||
SoCalGas: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | ― | $ | 1 | Interest Expense | |||||||||||||
― | ― | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | ― | $ | 1 | ||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||
Amortization of actuarial loss | $ | 4 | $ | ― | -2 | |||||||||||||
-2 | ― | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | 2 | $ | ― | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 2 | $ | 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). | |||||||||||||||||
SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS | ||||||||||||||||||
The following three tables provide a reconciliation of changes in Sempra Energy’s, SDG&E’s and SoCalGas’ shareholders’ equity and noncontrolling interests for the nine months ended September 30, 2014 and 2013. | ||||||||||||||||||
SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS ― SEMPRA ENERGY CONSOLIDATED | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Sempra Energy | Non- | |||||||||||||||||
Shareholders’ | controlling | Total | ||||||||||||||||
Equity | Interests | Equity | ||||||||||||||||
Balance at December 31, 2013 | $ | 11,008 | $ | 842 | $ | 11,850 | ||||||||||||
Comprehensive income | 722 | 66 | 788 | |||||||||||||||
Preferred dividends of subsidiary | -1 | ― | -1 | |||||||||||||||
Share-based compensation expense | 35 | ― | 35 | |||||||||||||||
Common stock dividends declared | -486 | ― | -486 | |||||||||||||||
Issuance of common stock | 71 | ― | 71 | |||||||||||||||
Repurchase of common stock | -38 | ― | -38 | |||||||||||||||
Tax benefit related to share-based compensation | 22 | ― | 22 | |||||||||||||||
Equity contributed by noncontrolling interest | ― | 1 | 1 | |||||||||||||||
Distributions to noncontrolling interests | ― | -85 | -85 | |||||||||||||||
Balance at September 30, 2014 | $ | 11,333 | $ | 824 | $ | 12,157 | ||||||||||||
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 | ||||||||||||
SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST ― SDG&E | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
SDG&E | Non- | |||||||||||||||||
Shareholder’s | controlling | Total | ||||||||||||||||
Equity | Interest | Equity | ||||||||||||||||
Balance at December 31, 2013 | $ | 4,628 | $ | 91 | $ | 4,719 | ||||||||||||
Comprehensive income | 381 | 23 | 404 | |||||||||||||||
Distributions to noncontrolling interest | ― | -37 | -37 | |||||||||||||||
Balance at September 30, 2014 | $ | 5,009 | $ | 77 | $ | 5,086 | ||||||||||||
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 | ||||||||||||
SHAREHOLDERS' EQUITY ― SOCALGAS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
SoCalGas | ||||||||||||||||||
Shareholders' | ||||||||||||||||||
Equity | ||||||||||||||||||
Balance at December 31, 2013 | $ | 2,549 | ||||||||||||||||
Comprehensive income | 259 | |||||||||||||||||
Preferred stock dividends declared | -1 | |||||||||||||||||
Balance at September 30, 2014 | $ | 2,807 | ||||||||||||||||
Balance at December 31, 2012 | $ | 2,235 | ||||||||||||||||
Comprehensive income | 268 | |||||||||||||||||
Preferred stock dividends declared | -1 | |||||||||||||||||
Common stock dividends declared | -50 | |||||||||||||||||
Balance at September 30, 2013 | $ | 2,452 | ||||||||||||||||
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 | ||||||||||||||||||
In the first quarter of 2013, a Sempra Energy subsidiary 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. | ||||||||||||||||||
The proceeds from the offerings, net of offering costs, were approximately $574 million in U.S. dollar equivalent. IEnova has used the net proceeds of the offerings primarily for general corporate purposes, and for the funding of its investments and ongoing expansion plans. 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 in the first quarter of 2013 for the sale of IEnova shares to noncontrolling interests. | ||||||||||||||||||
IEnova is a separate legal entity 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 International Financial Reporting Standards (IFRS), as required by the Mexican Stock Exchange (La Bolsa Mexicana de Valores, S.A.B. de C.V., or BMV) where the shares are traded under the symbol IENOVA. | ||||||||||||||||||
We discuss the IEnova offerings in more detail in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. | ||||||||||||||||||
Preferred Stock | ||||||||||||||||||
The preferred stock of SoCalGas is presented at Sempra Energy as a noncontrolling interest. In 2013, SDG&E had preferred stock outstanding until it was fully redeemed in October 2013. 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 11 of the Notes to Consolidated Financial Statements in the Annual Report. | ||||||||||||||||||
At September 30, 2014 and December 31, 2013, we reported the following 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-14 | 31-Dec-13 | ||||||||||||||||
SDG&E: | ||||||||||||||||||
Otay Mesa VIE | 100 | % | $ | 77 | $ | 91 | ||||||||||||
Sempra South American Utilities: | ||||||||||||||||||
Chilquinta Energía subsidiaries(1) | 23.6 – 43.4 | 23 | 27 | |||||||||||||||
Luz del Sur | 20.2 | 219 | 222 | |||||||||||||||
Tecsur | 9.8 | 3 | 3 | |||||||||||||||
Sempra Mexico: | ||||||||||||||||||
IEnova | 18.9 | 444 | 442 | |||||||||||||||
Sempra Natural Gas: | ||||||||||||||||||
Bay Gas Storage, Ltd. | 9.1 | 23 | 22 | |||||||||||||||
Liberty Gas Storage, LLC | 25 | 14 | 14 | |||||||||||||||
Southern Gas Transmission Company | 49 | 1 | 1 | |||||||||||||||
Total Sempra Energy | $ | 804 | $ | 822 | ||||||||||||||
-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 | ||||||||||||||||||
Due from Unconsolidated Affiliates – Sempra Energy Consolidated | ||||||||||||||||||
Sempra South American Utilities has a U.S. dollar-denominated loan to Eletrans S.A. to provide project financing for the construction of transmission lines. Eletrans S.A. is an affiliate of Chilquinta Energía that we discuss in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. At September 30, 2014 and December 31, 2013, the principal balance outstanding was $39 million and $14 million, plus $1 million and a negligible amount of accumulated interest outstanding, respectively, at a fixed interest rate of 4 percent. | ||||||||||||||||||
In the third quarter of 2014, Sempra Mexico made two four-year, U.S. dollar-denominated loans to an affiliate of Sempra Mexico’s joint venture with PEMEX to finance the Los Ramones Norte pipeline project. At September 30, 2014, these loans have principal balances outstanding aggregating $71 million plus $1 million of accumulated interest. These loans accrue interest at a variable rate based on a 30-day LIBOR plus 450 basis points (4.66 percent at September 30, 2014). | ||||||||||||||||||
As we discuss in Note 3, in July 2014, Sempra Mexico sold a 50-percent interest in the first phase of the Energía Sierra Juárez wind project. Upon deconsolidation, the newly formed joint venture repaid a portion, in the amount of $18 million, of a previous intercompany loan from Sempra Mexico to Energía Sierra Juárez. The joint venture assumed the obligation to Sempra Mexico for the remainder of the loan, which has a principal balance outstanding at September 30, 2014 of $20 million plus $1 million of accumulated interest. This loan accrues interest at a variable rate based on a 30-day LIBOR plus 637.5 basis points (6.53 percent at September 30, 2014). | ||||||||||||||||||
At September 30, 2014 and December 31, 2013, Sempra Energy had $3 million and $4 million, respectively, in accounts receivable from various Sempra Renewables joint venture investments. | ||||||||||||||||||
Service Agreements | ||||||||||||||||||
Sempra Energy, SDG&E and SoCalGas provide certain services to each other and are charged an allocable share of the cost of such services. Also, from time-to-time, SDG&E and SoCalGas may loan surplus cash to Sempra Energy at interest rates based on one-month commercial paper rates. 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, | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
SDG&E: | ||||||||||||||||||
Current: | ||||||||||||||||||
Due from various affiliates | $ | 1 | $ | 1 | ||||||||||||||
Due to Sempra Energy | $ | 27 | $ | 25 | ||||||||||||||
Due to SoCalGas | 9 | ― | ||||||||||||||||
Due to various affiliates | ― | 14 | ||||||||||||||||
$ | 36 | $ | 39 | |||||||||||||||
Income taxes due from Sempra Energy(1) | $ | 27 | $ | 70 | ||||||||||||||
SoCalGas: | ||||||||||||||||||
Current: | ||||||||||||||||||
Due from Sempra Energy(2) | $ | 265 | $ | ― | ||||||||||||||
Due from SDG&E | 9 | ― | ||||||||||||||||
Due from various affiliates | ― | 21 | ||||||||||||||||
$ | 274 | $ | 21 | |||||||||||||||
Due to Sempra Energy | $ | ― | $ | 16 | ||||||||||||||
Income taxes due from Sempra Energy(1) | $ | 21 | $ | 18 | ||||||||||||||
-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 separate returns. | |||||||||||||||||
-2 | Net receivable includes a loan to Sempra Energy of $281 million at September 30, 2014 at an interest rate of 0.08 percent. | |||||||||||||||||
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, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
SDG&E | $ | 2 | $ | 3 | $ | 8 | $ | 8 | ||||||||||
SoCalGas | 17 | 17 | 51 | 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 | Nine months ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Allowance for equity funds used during construction | $ | 28 | $ | 14 | $ | 77 | $ | 44 | ||||||||||
Investment (losses) gains(1) | -3 | -6 | 20 | 16 | ||||||||||||||
(Losses) gains on interest rate and foreign exchange instruments, net | -6 | 4 | 3 | 17 | ||||||||||||||
Regulatory interest, net(2) | 2 | 1 | 5 | 3 | ||||||||||||||
Sundry, net | 8 | 3 | 13 | -1 | ||||||||||||||
Total | $ | 29 | $ | 16 | $ | 118 | $ | 79 | ||||||||||
SDG&E: | ||||||||||||||||||
Allowance for equity funds used during construction | $ | 8 | $ | 10 | $ | 26 | $ | 30 | ||||||||||
Regulatory interest, net(2) | 2 | 1 | 5 | 3 | ||||||||||||||
Sundry, net | -1 | -1 | -2 | -3 | ||||||||||||||
Total | $ | 9 | $ | 10 | $ | 29 | $ | 30 | ||||||||||
SoCalGas: | ||||||||||||||||||
Allowance for equity funds used during construction | $ | 7 | $ | 4 | $ | 18 | $ | 14 | ||||||||||
Sundry, net | -1 | -2 | -5 | -5 | ||||||||||||||
Total | $ | 6 | $ | 2 | $ | 13 | $ | 9 | ||||||||||
-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) | ||||||||||||||||||
Effective | Effective | |||||||||||||||||
Income Tax | Income | Income Tax | Income | |||||||||||||||
Expense | Tax Rate | Expense | Tax Rate | |||||||||||||||
Three months ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Sempra Energy Consolidated | $ | 71 | 16 | % | $ | 117 | 27 | % | ||||||||||
SDG&E | 65 | 28 | 84 | 38 | ||||||||||||||
SoCalGas | 44 | 31 | 38 | 27 | ||||||||||||||
Nine months ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Sempra Energy Consolidated | $ | 291 | 24 | % | $ | 327 | 30 | % | ||||||||||
SDG&E | 217 | 35 | 147 | 33 | ||||||||||||||
SoCalGas | 110 | 30 | 107 | 29 | ||||||||||||||
Changes in Income Tax Expense and Effective Income Tax Rates | ||||||||||||||||||
Sempra Energy Consolidated | ||||||||||||||||||
The decrease in income tax expense in the three months ended September 30, 2014 was mainly due to a lower effective tax rate, primarily from: | ||||||||||||||||||
$25 million tax benefit due to the release in 2014 of Louisiana valuation allowance against a deferred tax asset associated with Cameron LNG developments; | ||||||||||||||||||
higher income tax benefit from Mexican currency translation and inflation adjustments; and | ||||||||||||||||||
favorable adjustments to prior years’ income tax items in 2014; offset by | ||||||||||||||||||
$8 million U.S. tax on the repatriation of a portion of current year earnings from certain non-U.S. subsidiaries in Mexico and Peru. | ||||||||||||||||||
In the first nine months of 2014, the decrease in income tax expense was due to a lower effective tax rate, offset by higher pretax income. Pretax income in 2013 included the loss from the early retirement of San Onofre Nuclear Generating Station (SONGS), offset by the favorable impact of the retroactive application of the 2012 GRC in 2013. The lower effective income tax rate was primarily due to: | ||||||||||||||||||
$63 million income tax expense in 2013 resulting from a corporate reorganization in connection with the IEnova stock offerings. We discuss the stock offerings above in “Shareholders’ Equity and Noncontrolling Interests – Sale of Noncontrolling Interests;” and | ||||||||||||||||||
$25 million tax benefit due to the release in 2014 of Louisiana valuation allowance against a deferred tax asset associated with Cameron LNG developments; offset by | ||||||||||||||||||
$32 million U.S. tax on the repatriation of a portion of current year earnings from certain non-U.S. subsidiaries in Mexico and Peru; and | ||||||||||||||||||
a $17 million charge to reduce certain tax regulatory assets attributed to SDG&E’s investment in SONGS that may no longer be recoverable from customers in rates pursuant to the proposed settlement agreement to resolve the California Public Utilities Commission’s (CPUC) Order Instituting Investigation (OII) into the SONGS outage that we discuss in Note 9. | ||||||||||||||||||
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 | ||||||||||||||||||
depreciation on a certain portion of utility plant assets | ||||||||||||||||||
U.S. tax on repatriation of current year earnings from non-U.S. subsidiaries | ||||||||||||||||||
Items that cannot be reliably forecasted (e.g., adjustments related to prior years’ income tax items, remeasurement of deferred tax asset valuation allowances, Mexican currency translation and inflation adjustments, and deferred income tax benefit associated with the impairment of a book investment) are recorded in the interim period in which they actually occur, which can result in variability to income tax expense. | ||||||||||||||||||
SDG&E | ||||||||||||||||||
The decrease in SDG&E’s income tax expense in the three months ended September 30, 2014 was mainly due to a lower effective tax rate, primarily from: | ||||||||||||||||||
favorable adjustments to prior years’ income tax items in 2014 compared to unfavorable adjustments in 2013; and | ||||||||||||||||||
lower unfavorable impact on our effective tax rate in 2014 from the reversal through book depreciation of previously recognized tax benefits for a certain portion of utility fixed assets; offset by | ||||||||||||||||||
lower deductions for self-developed software expenditures. | ||||||||||||||||||
The increase in SDG&E’s income tax expense in the nine months ended September 30, 2014 was due to higher pretax income and a higher effective tax rate. Pretax income in 2013 included the loss from the early retirement of SONGS, offset by the favorable impact of the retroactive application of the 2012 GRC in 2013. The higher effective tax rate was primarily due to: | ||||||||||||||||||
the $17 million charge to reduce certain tax regulatory assets attributed to SDG&E’s investment in SONGS discussed in Note 9; | ||||||||||||||||||
lower exclusions from taxable income of the equity portion of AFUDC; and | ||||||||||||||||||
lower deductions for self-developed software expenditures; offset by | ||||||||||||||||||
favorable adjustments to prior years’ income tax items in 2014 compared to unfavorable adjustments 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, 2014 was mainly due to a higher effective tax rate, primarily from: | ||||||||||||||||||
favorable adjustments to prior years’ income tax items in 2013; and | ||||||||||||||||||
lower deductions for self-developed software expenditures. | ||||||||||||||||||
The increase in SoCalGas’ income tax expense in the nine months ended September 30, 2014 was mainly due to a higher effective tax rate, primarily from: | ||||||||||||||||||
favorable adjustments to prior years’ income tax items in 2013; offset by | ||||||||||||||||||
higher deductions for certain repairs expenditures that are capitalized for financial statement purposes. | ||||||||||||||||||
For SDG&E and SoCalGas, the CPUC requires flow-through rate-making treatment for the current income tax benefit or expense arising from certain property-related and other temporary differences between the treatment for financial reporting and income tax, which will reverse over time. Under the regulatory accounting treatment required for these flow-through temporary differences, deferred income tax assets and liabilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which impacts the current effective income tax rate. 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 | ||||||||||||||||||
The AFUDC related to equity recorded for regulated construction projects at Sempra Mexico has similar flow-through treatment. | ||||||||||||||||||
We provide additional information about our accounting for income taxes in Notes 1 and 6 of the Notes to Consolidated Financial Statements in the Annual Report. |
DEBT_AND_CREDIT_FACILITIES
DEBT AND CREDIT FACILITIES | 3 Months Ended |
Sep. 30, 2014 | |
Notes to Consolidated Financial Statements [Abstract] | ' |
Debt and Credit Facilities | ' |
NOTE 6. DEBT AND CREDIT FACILITIES | |
LINES OF CREDIT | |
At September 30, 2014, Sempra Energy Consolidated had an aggregate of $4.1 billion in three primary committed lines of credit for Sempra Energy, Sempra Global and the California Utilities to provide liquidity and to support commercial paper, the major components of which we detail below. Available unused credit on these lines at September 30, 2014 was $2.8 billion. Some of Sempra Energy’s subsidiaries, primarily our foreign operations, have additional general purpose credit facilities, aggregating $875 million at September 30, 2014. Available unused credit on these lines totaled $630 million at September 30, 2014. | |
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, 2014 and December 31, 2013, 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, 2014, Sempra Energy had no outstanding borrowings or letters of credit 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, 2014 and December 31, 2013, Sempra Energy was in compliance with this and all other financial covenants under the credit facility. | |
At September 30, 2014, Sempra Global had $1.2 billion of commercial paper outstanding supported by the facility. At December 31, 2013, Sempra Global had $200 million of commercial paper outstanding 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. | |
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 $300 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, 2014 and December 31, 2013, 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, 2014, SDG&E had $100 million of commercial paper outstanding supported by the facility at an interest rate of 0.40 percent. SoCalGas had no outstanding borrowings supported by the facility. Available unused credit on the line at September 30, 2014 was $558 million at SDG&E and $658 million at SoCalGas, subject to the combined limit on the facility of $877 million. | |
Sempra Mexico | |
In June 2014, IEnova entered into an agreement for a $200 million, U.S. dollar-denominated, three-year corporate revolving credit facility to finance working capital and for general corporate purposes. The lender is Banco Santander, (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander Mexico. At September 30, 2014, Mexico had $145 million of outstanding borrowings supported by the facility, and available unused credit on the line was $55 million. | |
In August 2014, IEnova entered into an agreement for a $100 million, U.S. dollar-denominated, three-year corporate revolving credit facility to finance working capital and for general corporate purposes. The lender is Sumitomo Mitsui Banking Corporation. At September 30, 2014, Mexico had no outstanding borrowings supported by the facility. | |
WEIGHTED AVERAGE INTEREST RATES | |
The weighted average interest rates on the total short-term debt at Sempra Energy were 0.76 percent and 0.64 percent at September 30, 2014 and December 31, 2013, respectively. The weighted average interest rate on total short-term debt was 0.13 percent at both SDG&E and SoCalGas at December 31, 2013. The weighted average interest rate at Sempra Energy at December 31, 2013 includes interest rates for the $200 million of the commercial paper borrowings supported by the Sempra Global credit facility classified as long-term, as we discuss above. | |
LONG-TERM DEBT | |
Sempra Energy | |
In June 2014, Sempra Energy publicly offered and sold $500 million of 3.55-percent, fixed-rate notes maturing in 2024. Sempra Energy used the proceeds from this offering for the repayment of commercial paper. | |
SDG&E | |
In the second quarter of 2014, SDG&E issued $100 million of commercial paper maturing in May 2015, which is supported by the California Utilities’ credit facility discussed above and has a weighted average interest rate of 0.40 percent at September 30, 2014. | |
SoCalGas | |
In September 2014, SoCalGas publicly offered and sold $500 million of 3.15-percent first mortgage bonds maturing in 2024. SoCalGas used the proceeds from this offering for the repayment of commercial paper and other general corporate purposes. | |
In March 2014, SoCalGas publicly offered and sold $250 million of 4.45-percent first mortgage bonds maturing in 2044. SoCalGas used the proceeds from this offering for the repayment of its 5.5-percent first mortgage bonds that matured in March 2014. | |
Sempra Mexico | |
In June 2014, Energía Sierra Juárez entered into a $240 million loan to project finance the construction of the wind project. The variable rate loan is secured by the project and will convert to an 18-year term loan upon completion of the first phase of the project. To partially moderate its exposure to interest rate changes associated with the term loan, Energía Sierra Juárez entered into floating-to-fixed interest rate swaps for 90 percent of the loan amount, which will result in an effective fixed rate of 6.1 percent. The swap is effective on the conversion to a term loan. The remaining 10 percent of principal bears interest at rates varying with market rates (0.16 percent at September 30, 2014). The loan agreement also provides for a $31.7 million letter of credit facility. Energía Sierra Juárez also entered into a separate, Peso-denominated credit facility for up to $35 million U.S. dollar equivalent to fund the value added tax of the project. On June 12, 2014, Energía Sierra Juárez drew down $82 million of the construction loan. On July 16, 2014, this $82 million of long-term debt and the related swaps were deconsolidated upon the sale of a 50-percent interest in Energía Sierra Juárez, as we discuss in Note 3. | |
Sempra Renewables | |
On March 6, 2014, Sempra Renewables entered into a $356 million construction loan to finance its Copper Mountain Solar 3 project. The loan is secured by the project and will convert to a 10-year term loan upon completion of the project. To partially moderate its exposure to interest rate changes, Copper Mountain Solar 3 entered into floating-to-fixed interest rate swaps for 75 percent of the loan amount, resulting in an effective fixed rate of 5.35 percent. The remaining 25 percent bears interest at rates varying with market rates (0.16 percent at September 30, 2014). In connection with the loan agreement, Copper Mountain Solar 3 may also utilize up to $72 million under a letter of credit facility, which may be used to meet project collateral requirements and debt service reserve requirements. On March 6, 2014, Copper Mountain Solar 3 drew down $97 million from the loan. On March 13, 2014, this $97 million of long-term debt and the related swaps were deconsolidated upon the sale of a 50-percent interest in Copper Mountain Solar 3, as we discuss in Note 3. | |
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, 2014 | ||||||||||||
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 instrument results in fixing that portion of the fair value of the debt that is related to benchmark interest rates. Designating fair value hedges is dependent on the instrument being used, the effectiveness of the instrument in offsetting changes in the fair value of our debt instruments, and other criteria. | ||||||||||||
ENERGY DERIVATIVES | ||||||||||||
Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business. | ||||||||||||
The California Utilities use natural gas energy derivatives, for the benefit of customers, 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 at September 30, 2014 and December 31, 2013 as follows: | ||||||||||||
NET ENERGY DERIVATIVE VOLUMES | ||||||||||||
Segment and Commodity | 30-Sep-14 | 31-Dec-13 | ||||||||||
California Utilities: | ||||||||||||
SDG&E: | ||||||||||||
Natural gas | 43 million MMBtu | 43 million MMBtu | -1 | |||||||||
Congestion revenue rights | 27 million MWh | 33 million MWh | -2 | |||||||||
SoCalGas - natural gas | ― | 2 million MMBtu | ||||||||||
Energy-Related Businesses: | ||||||||||||
Sempra Natural Gas: | ||||||||||||
Electric power | ― | 1 million MWh | ||||||||||
Natural gas | 31 million MMBtu | 15 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 purchases and sales. | ||||||||||||
INTEREST RATE DERIVATIVES | ||||||||||||
We are exposed to interest rates primarily as a result of our current and expected use of financing. We periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. We utilize interest rate swaps typically designated as fair value hedges, as a means to achieve our targeted level of variable rate debt as a percent of total debt. In addition, we may utilize interest rate swaps, typically designated as cash flow hedges, to lock in interest rates on outstanding debt or in anticipation of future financings. | ||||||||||||
In the first quarter of 2014, we entered into fixed-to-floating interest rate swaps on Sempra Energy debt that were designated as fair value hedges. We swapped $200 million 6.15-percent fixed-rate debt maturing in 2018, $200 million 9.8-percent fixed-rate debt maturing in 2019 and $100 million 2.875-percent fixed-rate debt maturing in 2022 to variable rate debt, resulting in initial effective interest rates of 3.80 percent, 6.01 percent and 2.37 percent, respectively. These swaps were terminated in July 2014. | ||||||||||||
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. 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. | ||||||||||||
At September 30, 2014 and December 31, 2013, the net notional amounts of our interest rate derivatives, excluding the cross-currency swaps discussed below, were: | ||||||||||||
INTEREST RATE DERIVATIVES | ||||||||||||
(Dollars in millions) | ||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||
Notional Debt | Maturities | Notional Debt | Maturities | |||||||||
Sempra Energy Consolidated: | ||||||||||||
Cash flow hedges(1) | $ | 404 | 2014-2028 | $ | 413 | 2014-2028 | ||||||
Fair value hedges | 300 | 2016 | 300 | 2016 | ||||||||
SDG&E: | ||||||||||||
Cash flow hedge(1) | 327 | 2019 | 335 | 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 swaps in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. | ||||||||||||
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 of the Notes to Consolidated Financial Statements in the Annual Report. | ||||||||||||
FINANCIAL STATEMENT PRESENTATION | ||||||||||||
Each Condensed Consolidated Balance Sheet reflects the offsetting of net derivative positions and cash collateral with the same counterparty when a legal right of offset exists. The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013, 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-14 | ||||||||||||
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) | $ | 12 | $ | 7 | $ | -17 | $ | -77 | ||||
Commodity contracts not subject to rate recovery | 1 | ― | ― | ― | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Interest rate and foreign exchange instruments | 8 | 24 | -7 | -20 | ||||||||
Commodity contracts not subject to rate recovery | 39 | 10 | -36 | -7 | ||||||||
Associated offsetting commodity contracts | -32 | -7 | 32 | 7 | ||||||||
Associated offsetting cash collateral | ― | ― | 1 | ― | ||||||||
Commodity contracts subject to rate recovery | 14 | 82 | -13 | -6 | ||||||||
Associated offsetting commodity contracts | -4 | -2 | 4 | 2 | ||||||||
Associated offsetting cash collateral | ― | ― | 3 | ― | ||||||||
Net amounts presented on the balance sheet | 38 | 114 | -33 | -101 | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
not subject to rate recovery | 15 | ― | ― | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
subject to rate recovery | 30 | ― | ― | ― | ||||||||
Total(4) | $ | 83 | $ | 114 | $ | -33 | $ | -101 | ||||
SDG&E: | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate instruments(3) | $ | ― | $ | ― | $ | -16 | $ | -32 | ||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery | 11 | 82 | -11 | -6 | ||||||||
Associated offsetting commodity contracts | -2 | -2 | 2 | 2 | ||||||||
Associated offsetting cash collateral | ― | ― | 3 | ― | ||||||||
Net amounts presented on the balance sheet | 9 | 80 | -22 | -36 | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
not subject to rate recovery | 1 | ― | ― | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
subject to rate recovery | 28 | ― | ― | ― | ||||||||
Total(4) | $ | 38 | $ | 80 | $ | -22 | $ | -36 | ||||
SoCalGas: | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery | $ | 3 | $ | ― | $ | -2 | $ | ― | ||||
Associated offsetting commodity contracts | -2 | ― | 2 | ― | ||||||||
Net amounts presented on the balance sheet | 1 | ― | ― | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
not subject to rate recovery | 2 | ― | ― | ― | ||||||||
Additional cash collateral 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 | Normal purchase contracts previously measured at fair value are excluded. | |||||||||||
DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(Dollars in millions) | ||||||||||||
31-Dec-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) | $ | 14 | $ | 12 | $ | -18 | $ | -75 | ||||
Derivatives not designated as hedging instruments: | ||||||||||||
Interest rate and foreign exchange instruments | 8 | 22 | -7 | -17 | ||||||||
Commodity contracts not subject to rate recovery | 47 | 7 | -51 | -5 | ||||||||
Associated offsetting commodity contracts | -43 | -5 | 43 | 5 | ||||||||
Associated offsetting cash collateral | ― | ― | 1 | ― | ||||||||
Commodity contracts subject to rate recovery | 35 | 72 | -10 | -8 | ||||||||
Associated offsetting commodity contracts | -3 | -2 | 3 | 2 | ||||||||
Net amounts presented on the balance sheet | 58 | 106 | -39 | -98 | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
not subject to rate recovery | 17 | ― | ― | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
subject to rate recovery | 31 | ― | ― | ― | ||||||||
Total(4) | $ | 106 | $ | 106 | $ | -39 | $ | -98 | ||||
SDG&E: | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate instruments(3) | $ | ― | $ | ― | $ | -16 | $ | -39 | ||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery | 34 | 72 | -9 | -8 | ||||||||
Associated offsetting commodity contracts | -3 | -2 | 3 | 2 | ||||||||
Net amounts presented on the balance sheet | 31 | 70 | -22 | -45 | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
not subject to rate recovery | 1 | ― | ― | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
subject to rate recovery | 29 | ― | ― | ― | ||||||||
Total(4) | $ | 61 | $ | 70 | $ | -22 | $ | -45 | ||||
SoCalGas: | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery | $ | 1 | $ | ― | $ | -1 | $ | ― | ||||
Net amounts presented on the balance sheet | 1 | ― | -1 | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
not subject to rate recovery | 2 | ― | ― | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
subject to rate recovery | 2 | ― | ― | ― | ||||||||
Total | $ | 5 | $ | ― | $ | -1 | $ | ― | ||||
-1 | Included in Current Assets: Other for SoCalGas. | |||||||||||
-2 | Included in Current Liabilities: Other for SoCalGas. | |||||||||||
-3 | Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. | |||||||||||
-4 | Normal purchase contracts previously measured at fair value are excluded. | |||||||||||
The effects of derivative instruments designated as hedges on the Condensed Consolidated Statements of Operations and in 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 (loss) on derivatives recognized in earnings | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
Location | 2014 | 2013 | 2014 | 2013 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate instruments | Interest Expense | $ | 1 | $ | 2 | $ | 6 | $ | 6 | |||
Interest rate instruments | Other Income, Net | -1 | 1 | ― | -4 | |||||||
Total(1) | $ | ― | $ | 3 | $ | 6 | $ | 2 | ||||
-1 | There were negligible gains from hedge ineffectiveness on these swaps for the three-month period, and $9 million of gains from hedge ineffectiveness for the nine-month period ended September 30, 2014, respectively. All other changes in the fair value of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt and recorded in Other Income, Net. There was no hedge ineffectiveness in 2013. | |||||||||||
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, | |||||||||||
2014 | 2013 | Location | 2014 | 2013 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate and foreign | ||||||||||||
exchange instruments(1) | $ | -5 | $ | -8 | Interest Expense | $ | -8 | $ | -3 | |||
Gain on Sale of Equity | ||||||||||||
Interest rate instruments | 5 | ― | Interests and Assets | 5 | ― | |||||||
Equity Earnings, | ||||||||||||
Interest rate instruments | -4 | -3 | Before Income Tax | -2 | -3 | |||||||
Commodity contracts not subject | Revenues: Energy-Related | |||||||||||
to rate recovery | 1 | 1 | Businesses | 2 | ― | |||||||
Total(2) | $ | -3 | $ | -10 | $ | -3 | $ | -6 | ||||
SDG&E: | ||||||||||||
Interest rate instruments(1)(2) | $ | 1 | $ | -3 | Interest Expense | $ | -3 | $ | -2 | |||
Nine months ended September 30, | Nine months ended September 30, | |||||||||||
2014 | 2013 | Location | 2014 | 2013 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate and foreign | ||||||||||||
exchange instruments(1) | $ | -15 | $ | -3 | Interest Expense | $ | -17 | $ | -9 | |||
Gain on Sale of Equity | ||||||||||||
Interest rate instruments | 3 | ― | Interests and Assets | 3 | ― | |||||||
Equity Earnings, | ||||||||||||
Interest rate instruments | -34 | 11 | Before Income Tax | -7 | -7 | |||||||
Commodity contracts not subject | Revenues: Energy-Related | |||||||||||
to rate recovery | -5 | 5 | Businesses | -8 | 5 | |||||||
Total(2) | $ | -51 | $ | 13 | $ | -29 | $ | -11 | ||||
SDG&E: | ||||||||||||
Interest rate instruments(1)(2) | $ | -5 | $ | 8 | Interest Expense | $ | -8 | $ | -6 | |||
SoCalGas: | ||||||||||||
Interest rate instruments | $ | ― | $ | ― | Interest Expense | $ | ― | $ | -1 | |||
-1 | Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. | |||||||||||
-2 | There was a negligible amount of ineffectiveness related to these hedges in 2014 and 2013. | |||||||||||
For Sempra Energy Consolidated we expect that losses of $25 million, which are net of income tax benefit, that are currently recorded in AOCI (including $13 million in noncontrolling interests, of which $12 million is related to Otay Mesa VIE at SDG&E) related to cash flow hedges will be reclassified into earnings during the next twelve months as the hedged items affect earnings. Actual amounts ultimately reclassified into earnings depend on the interest rates in effect when derivative contracts that are currently outstanding mature. | ||||||||||||
SoCalGas expects that negligible losses, which are net of income tax benefit, currently recorded in AOCI related to cash flow hedges will be reclassified into earnings during the next twelve months as the hedged items affect earnings. | ||||||||||||
For all forecasted transactions, the maximum term over which we are hedging exposure to the variability of cash flows at September 30, 2014 is approximately 14 years and 5 years for Sempra Energy Consolidated and SDG&E, respectively. The maximum term of hedged interest rate variability related to debt at Sempra Renewables’ equity method investees is 21 years. | ||||||||||||
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 endedSeptember 30, | Nine months ended September 30, | |||||||||||
Location | 2014 | 2013 | 2014 | 2013 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate and foreign exchange | ||||||||||||
instruments | Other Income, Net | $ | -6 | $ | 4 | $ | -6 | $ | 17 | |||
Foreign exchange instruments | Equity Earnings, | |||||||||||
Net of Income Tax | -2 | ― | -4 | -3 | ||||||||
Commodity contracts not subject | Revenues: Energy-Related | |||||||||||
to rate recovery | Businesses | 3 | 1 | 2 | 2 | |||||||
Commodity contracts not subject | Cost of Natural Gas, Electric Fuel | |||||||||||
to rate recovery | and Purchased Power | 1 | ― | 3 | ― | |||||||
Commodity contracts subject | Cost of Electric Fuel | |||||||||||
to rate recovery | and Purchased Power | -1 | ― | 19 | -9 | |||||||
Commodity contracts subject | ||||||||||||
to rate recovery | Cost of Natural Gas | 1 | 1 | 2 | ― | |||||||
Total | $ | -4 | $ | 6 | $ | 16 | $ | 7 | ||||
SDG&E: | ||||||||||||
Commodity contracts subject | Cost of Electric Fuel | |||||||||||
to rate recovery | and Purchased Power | $ | -1 | $ | ― | $ | 19 | $ | -9 | |||
SoCalGas: | ||||||||||||
Commodity contracts subject | ||||||||||||
to rate recovery | Cost of Natural Gas | $ | 1 | $ | 1 | $ | 2 | $ | ― | |||
CONTINGENT FEATURES | ||||||||||||
For Sempra Energy Consolidated 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 Consolidated, the total fair value of this group of derivative instruments in a net liability position at September 30, 2014 and December 31, 2013 is $2 million and $3 million, respectively. At September 30, 2014, if the credit ratings of Sempra Energy were reduced below investment grade, $2 million of additional assets could be required to be posted as collateral for these derivative contracts. | ||||||||||||
For SDG&E, the total fair value of this group of derivative instruments in a net liability position was negligible at September 30, 2014 and $3 million at December 31, 2013. At September 30, 2014, if the credit ratings of SDG&E were reduced below investment grade, a negligible amount of additional assets could be required to be posted as collateral for these derivative contracts. | ||||||||||||
For Sempra Energy Consolidated, SDG&E and SoCalGas, some of our derivative contracts contain a provision that would permit the counterparty, in certain circumstances, to 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, 2014 | |||||||||||||
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, 2014. | |||||||||||||
Recurring Fair Value Measures | |||||||||||||
The three tables below, by level within the fair value hierarchy, set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis at September 30, 2014 and December 31, 2013. 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 at September 30, 2014 and December 31, 2013 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 may also manage foreign exchange rate exposures using derivatives. We primarily use a market approach with market participant assumptions to value these derivatives. Market participant assumptions include those 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) | |||||||||||||
Fair value at September 30, 2014 | |||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 637 | $ | ― | $ | ― | $ | ― | $ | 637 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 56 | 47 | ― | ― | 103 | ||||||||
Municipal bonds | ― | 121 | ― | ― | 121 | ||||||||
Other securities | ― | 200 | ― | ― | 200 | ||||||||
Total debt securities | 56 | 368 | ― | ― | 424 | ||||||||
Total nuclear decommissioning trusts(2) | 693 | 368 | ― | ― | 1,061 | ||||||||
Interest rate and foreign exchange instruments | ― | 51 | ― | ― | 51 | ||||||||
Commodity contracts not subject to rate recovery | 7 | 4 | ― | 15 | 26 | ||||||||
Commodity contracts subject to rate recovery | ― | 3 | 87 | 30 | 120 | ||||||||
Total | $ | 700 | $ | 426 | $ | 87 | $ | 45 | $ | 1,258 | |||
Liabilities: | |||||||||||||
Interest rate and foreign exchange instruments | $ | ― | $ | 121 | $ | ― | $ | ― | $ | 121 | |||
Commodity contracts not subject to rate recovery | 2 | 3 | ― | -2 | 3 | ||||||||
Commodity contracts subject to rate recovery | 3 | 10 | ― | -3 | 10 | ||||||||
Total | $ | 5 | $ | 134 | $ | ― | $ | -5 | $ | 134 | |||
Fair value at December 31, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 614 | $ | ― | $ | ― | $ | ― | $ | 614 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 59 | 58 | ― | ― | 117 | ||||||||
Municipal bonds | ― | 111 | ― | ― | 111 | ||||||||
Other securities | ― | 153 | ― | ― | 153 | ||||||||
Total debt securities | 59 | 322 | ― | ― | 381 | ||||||||
Total nuclear decommissioning trusts(2) | 673 | 322 | ― | ― | 995 | ||||||||
Interest rate and foreign exchange instruments | ― | 56 | ― | ― | 56 | ||||||||
Commodity contracts not subject to rate recovery | 1 | 5 | ― | 17 | 23 | ||||||||
Commodity contracts subject to rate recovery | 2 | 1 | 99 | 31 | 133 | ||||||||
Total | $ | 676 | $ | 384 | $ | 99 | $ | 48 | $ | 1,207 | |||
Liabilities: | |||||||||||||
Interest rate and foreign exchange instruments | $ | ― | $ | 117 | $ | ― | $ | ― | $ | 117 | |||
Commodity contracts not subject to rate recovery | 4 | 8 | ― | -5 | 7 | ||||||||
Commodity contracts subject to rate recovery | ― | 13 | ― | ― | 13 | ||||||||
Total | $ | 4 | $ | 138 | $ | ― | $ | -5 | $ | 137 | |||
-1 | Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. | ||||||||||||
-2 | Excludes cash balances and cash equivalents. | ||||||||||||
RECURRING FAIR VALUE MEASURES – SDG&E | |||||||||||||
(Dollars in millions) | |||||||||||||
Fair value at September 30, 2014 | |||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 637 | $ | ― | $ | ― | $ | ― | $ | 637 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 56 | 47 | ― | ― | 103 | ||||||||
Municipal bonds | ― | 121 | ― | ― | 121 | ||||||||
Other securities | ― | 200 | ― | ― | 200 | ||||||||
Total debt securities | 56 | 368 | ― | ― | 424 | ||||||||
Total nuclear decommissioning trusts(2) | 693 | 368 | ― | ― | 1,061 | ||||||||
Commodity contracts not subject to rate recovery | ― | ― | ― | 1 | 1 | ||||||||
Commodity contracts subject to rate recovery | ― | 2 | 87 | 28 | 117 | ||||||||
Total | $ | 693 | $ | 370 | $ | 87 | $ | 29 | $ | 1,179 | |||
Liabilities: | |||||||||||||
Interest rate instruments | $ | ― | $ | 48 | $ | ― | $ | ― | $ | 48 | |||
Commodity contracts subject to rate recovery | 3 | 10 | ― | -3 | 10 | ||||||||
Total | $ | 3 | $ | 58 | $ | ― | $ | -3 | $ | 58 | |||
Fair value at December 31, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 614 | $ | ― | $ | ― | $ | ― | $ | 614 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 59 | 58 | ― | ― | 117 | ||||||||
Municipal bonds | ― | 111 | ― | ― | 111 | ||||||||
Other securities | ― | 153 | ― | ― | 153 | ||||||||
Total debt securities | 59 | 322 | ― | ― | 381 | ||||||||
Total nuclear decommissioning trusts(2) | 673 | 322 | ― | ― | 995 | ||||||||
Commodity contracts not subject to rate recovery | ― | ― | ― | 1 | 1 | ||||||||
Commodity contracts subject to rate recovery | 1 | 1 | 99 | 29 | 130 | ||||||||
Total | $ | 674 | $ | 323 | $ | 99 | $ | 30 | $ | 1,126 | |||
Liabilities: | |||||||||||||
Interest rate instruments | $ | ― | $ | 55 | $ | ― | $ | ― | $ | 55 | |||
Commodity contracts subject to rate recovery | ― | 12 | ― | ― | 12 | ||||||||
Total | $ | ― | $ | 67 | $ | ― | $ | ― | $ | 67 | |||
-1 | Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. | ||||||||||||
-2 | Excludes cash balances and cash equivalents. | ||||||||||||
RECURRING FAIR VALUE MEASURES – SOCALGAS | |||||||||||||
(Dollars in millions) | |||||||||||||
Fair value at September 30, 2014 | |||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||
Assets: | |||||||||||||
Commodity contracts not subject to rate recovery | $ | ― | $ | ― | $ | ― | $ | 2 | $ | 2 | |||
Commodity contracts subject to rate recovery | ― | 1 | ― | 2 | 3 | ||||||||
Total | $ | ― | $ | 1 | $ | ― | $ | 4 | $ | 5 | |||
Liabilities: | |||||||||||||
Commodity contracts subject to rate recovery | $ | ― | $ | ― | $ | ― | $ | ― | $ | ― | |||
Total | $ | ― | $ | ― | $ | ― | $ | ― | $ | ― | |||
Fair value at December 31, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||
Assets: | |||||||||||||
Commodity contracts not subject to rate recovery | $ | ― | $ | ― | $ | ― | $ | 2 | $ | 2 | |||
Commodity contracts subject to rate recovery | 1 | ― | ― | 2 | 3 | ||||||||
Total | $ | 1 | $ | ― | $ | ― | $ | 4 | $ | 5 | |||
Liabilities: | |||||||||||||
Commodity contracts subject to rate recovery | $ | ― | $ | 1 | $ | ― | $ | ― | $ | 1 | |||
Total | $ | ― | $ | 1 | $ | ― | $ | ― | $ | 1 | |||
-1 | Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. | ||||||||||||
Level 3 Information | |||||||||||||
The following table sets forth reconciliations of changes in the fair value of Congestion Revenue Rights (CRRs) 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, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at July 1 | $ | 85 | $ | 47 | |||||||||
Realized and unrealized gains | 3 | 1 | |||||||||||
Allocated transmission instruments | 9 | 15 | |||||||||||
Settlements | -10 | -6 | |||||||||||
Balance at September 30 | $ | 87 | $ | 57 | |||||||||
Change in unrealized gains or losses relating to | |||||||||||||
instruments still held at September 30 | $ | ― | $ | 2 | |||||||||
Nine months ended September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance as of January 1 | $ | 99 | $ | 61 | |||||||||
Realized and unrealized gains (losses) | 9 | -2 | |||||||||||
Allocated transmission instruments | 10 | 15 | |||||||||||
Settlements | -31 | -17 | |||||||||||
Balance as of September 30 | $ | 87 | $ | 57 | |||||||||
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. SDG&E expects all costs related to CRRs 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 (CAISO), 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. At September 30, 2014 the auction prices ranged from $(6) per MWh to $12 per MWh at a given location, and the fair value of these instruments is derived from auction price differences between two locations. At September 30, 2013 the auction prices ranged from $(8) per MWh to $8 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, 2014 and December 31, 2013: | |||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||
(Dollars in millions) | |||||||||||||
30-Sep-14 | |||||||||||||
Carrying | Fair Value | ||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||
Sempra Energy Consolidated: | |||||||||||||
Total long-term debt(1) | $ | 12,346 | $ | ― | $ | 12,626 | $ | 873 | $ | 13,499 | |||
Preferred stock of subsidiary | 20 | ― | 23 | ― | 23 | ||||||||
SDG&E: | |||||||||||||
Total long-term debt(2) | $ | 4,463 | $ | ― | $ | 4,463 | $ | 427 | $ | 4,890 | |||
SoCalGas: | |||||||||||||
Total long-term debt(3) | $ | 1,913 | $ | ― | $ | 2,053 | $ | ― | $ | 2,053 | |||
Preferred stock | 22 | ― | 24 | ― | 24 | ||||||||
31-Dec-13 | |||||||||||||
Carrying | Fair Value | ||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||
Sempra Energy Consolidated: | |||||||||||||
Total long-term debt(1) | $ | 12,022 | $ | ― | $ | 11,925 | $ | 751 | $ | 12,676 | |||
Preferred stock of subsidiary | 20 | ― | 20 | ― | 20 | ||||||||
SDG&E: | |||||||||||||
Total long-term debt(2) | $ | 4,386 | $ | ― | $ | 4,226 | $ | 335 | $ | 4,561 | |||
SoCalGas: | |||||||||||||
Total long-term debt(3) | $ | 1,413 | $ | ― | $ | 1,469 | $ | ― | $ | 1,469 | |||
Preferred stock | 22 | ― | 22 | ― | 22 | ||||||||
-1 | Before reductions for unamortized discount (net of premium) of $21 million and $17 million at September 30, 2014 and December 31, 2013, respectively, and excluding build-to-suit and capital leases of $300 million and $195 million at September 30, 2014 and December 31, 2013, respectively, and commercial paper classified as long-term debt of $200 million at December 31, 2013. 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 $10 million and $11 million at September 30, 2014 and December 31, 2013, respectively, and excluding capital leases of $235 million and $179 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||
-3 | Before reductions for unamortized discount of $7 million and $4 million at September 30, 2014 and December 31, 2013, respectively, and excluding capital leases of $2 million at December 31, 2013. | ||||||||||||
We base the fair value of certain long-term debt and preferred stock on a market approach using quoted market prices for identical or similar securities in thinly-traded markets (Level 2). We value other long-term debt using an income approach based on the present value of estimated future cash flows discounted at rates available for similar securities (Level 3). | |||||||||||||
We provide the fair values for the securities held in the nuclear decommissioning trust funds related to SONGS in Note 9 below. | |||||||||||||
Non-Recurring Fair Value Measures – Sempra Energy Consolidated | |||||||||||||
Energía Sierra Juárez | |||||||||||||
In July 2014, Sempra Mexico completed the sale of a 50-percent interest in the 155-MW first phase of its Energía Sierra Juárez wind project to a wholly owned subsidiary of InterGen N.V. for cash proceeds of $24 million, net of $2 million cash sold, as discussed in Note 3 above. Sempra Mexico recognized a pretax gain on the sale of $19 million ($14 million after-tax). Upon deconsolidation, our equity method investment in Energía Sierra Juárez was measured at fair value, which resulted in a $7 million after-tax gain attributable to a remeasurement of the retained investment to fair value. The fair value measurement was based on the cash sales price of $26 million paid by InterGen N.V., a nonrelated party and market participant. Use of this market participant input as the indicator of fair value is a Level 2 measurement in the fair value hierarchy. | |||||||||||||
NON-RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED | |||||||||||||
(Dollars in millions) | |||||||||||||
Estimated | Fair | ||||||||||||
Fair | Value | % of Fair Value | Range of | ||||||||||
Value | Valuation Technique | Hierarchy | Measurement | Inputs Used to Develop Measurement | Inputs | ||||||||
Investment in | |||||||||||||
Energía Sierra | |||||||||||||
Juárez | $ | 26(1) | Market approach | Level 2 | 100% | Equity sale offer price | 100% | ||||||
-1 | At measurement date of July 16, 2014. |
NUCLEAR_PLANT
NUCLEAR PLANT | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Notes to Consolidated Financial Statements [Abstract] | ' | |||||||||
Nuclear Plant | ' | |||||||||
NOTE 9. SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) | ||||||||||
SDG&E has a 20-percent ownership interest in SONGS, a nuclear generating facility near San Clemente, California, which ceased operations in June 2013. On June 6, 2013, Southern California Edison Company (Edison), the majority owner and operator of SONGS, notified SDG&E that it had reached a decision to permanently retire SONGS and seek approval from the Nuclear Regulatory Commission (NRC) to start the decommissioning activities for the entire facility. SONGS is subject to the jurisdiction of the NRC and the CPUC. | ||||||||||
SDG&E, and each of the other owners, holds its undivided interest as a tenant in common in the property. Each owner is responsible for financing its share of expenses and capital expenditures. SDG&E’s share of operating expenses is included in Sempra Energy’s and SDG&E’s Condensed Consolidated Statements of Operations. | ||||||||||
SONGS Outage and Retirement | ||||||||||
Background | ||||||||||
As part of the Steam Generator Replacement Project (SGRP), the steam generators were replaced in SONGS Units 2 and 3, and the Units returned to service in 2010 and 2011, respectively. Both Units were shut down in early 2012 after a water leak occurred in the Unit 3 steam generator. Edison concluded that the leak was due to unexpected wear from tube-to-tube contact. At the time the leak was identified, Edison also inspected and tested Unit 2 and subsequently found unexpected tube wear in Unit 2’s steam generators. 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 for Edison to meet before the NRC would approve a restart of either of the Units. | ||||||||||
In October 2012, Edison submitted a restart plan to the NRC proposing to operate Unit 2 at a reduced power level for a period of five months, at which time the Unit would be brought down for further inspection. Edison did not file a restart plan for Unit 3, pending further inspection and analysis of what repairs or modifications would be required to return the Unit to service in a safe manner. The NRC was reviewing the restart plan for Unit 2 proposed by Edison when in May 2013, the Atomic Safety and Licensing Board (ASLB), an adjudicatory arm of the NRC, concluded that the CAL process constituted a de facto license amendment proceeding that was subject to a public hearing. This conclusion by the ASLB resulted in further uncertainty regarding when a final decision might be made on restarting Unit 2. | ||||||||||
The replacement steam generators were designed and provided by Mitsubishi Heavy Industries, Ltd., Mitsubishi Nuclear Energy Systems, Inc., and Mitsubishi Heavy Industries America, Inc. (collectively MHI). In July 2013, SDG&E filed a lawsuit against MHI seeking to recover damages SDG&E has incurred and will incur related to the design defects in the steam generators. In October 2013, Edison instituted arbitration proceedings against MHI seeking damages as well. We discuss these proceedings in Note 11. | ||||||||||
Pending Settlement Agreement to Resolve the CPUC’s Order Instituting Investigation (OII) into the SONGS Outage (SONGS OII) | ||||||||||
SONGS OII | ||||||||||
In November 2012, in response to the outage, the CPUC issued the SONGS OII, pursuant to California Public Utilities’ Code Section 455.5, which applies to cost recovery issues resulting from long-term outages of operating assets. The SONGS OII consolidated most SONGS outage-related issues into a single proceeding. The SONGS OII, among other things, designated all revenues associated with the investment in, and operation of, SONGS since January 1, 2012 as subject to refund to customers, pending the outcome of all phases of the proceeding. The SONGS OII proceeding is also intended to determine the ultimate recovery of the investment in SONGS and the costs incurred since the commencement of this outage, including purchased replacement power costs, which are typically recovered through the Energy Resource Recovery Account (ERRA). We provide additional information on the SONGS OII in Notes 13 and 15 of the Notes to Consolidated Financial Statements in the Annual Report. | ||||||||||
Entry Into Settlement Agreement | ||||||||||
Pursuant to CPUC rules concerning settlements, SDG&E, Edison, The Utility Reform Network (TURN), and the CPUC Office of Ratepayer Advocates (ORA) held a settlement conference in March 2014 to discuss the terms to resolve the SONGS OII, and in April 2014, SDG&E, along with Edison, TURN, ORA and two other intervenors who joined the Settlement Agreement to the SONGS OII proceeding (collectively, the Settling Parties), filed a Settlement Agreement with the CPUC. On September 5, 2014, the CPUC issued a ruling proposing specific changes that included, as they relate to SDG&E, greater ratepayer benefit from third party cost recoveries, funding of a 5-year research program to reduce greenhouse gas emissions at a shareholder cost of $1 million per year, and equal sharing of future refinance savings. | ||||||||||
On September 23, 2014, the Settling Parties executed an Amended and Restated Settlement Agreement (Amended Settlement Agreement), which incorporates the terms of a Settlement Amendment and reflects changes to adopt all the modifications and clarifications requested in the ruling issued on September 5, 2014. On October 9, 2014, the CPUC issued a proposed decision (SONGS PD) approving the Amended Settlement Agreement. We anticipate a final decision by the CPUC by the end of 2014. | ||||||||||
If the SONGS PD is ultimately approved by the CPUC, the Amended Settlement Agreement will constitute a complete and final resolution of the SONGS OII and related CPUC proceedings regarding the SGRP at SONGS and the related outage and subsequent shutdown of SONGS. The Amended Settlement Agreement does not affect on-going or future proceedings before the NRC, or litigation or arbitration related to potential future recoveries from third parties (except for the allocation to ratepayers of any recoveries as described below) or proceedings addressing decommissioning activities and costs. | ||||||||||
The Settling Parties have agreed to exercise their best efforts to obtain CPUC approval. However, the Amended Settlement Agreement is subject to termination by any of the Settling Parties if CPUC approval has not been issued before December 23, 2014, and there is no assurance that one or more of the Settling Parties won’t do so. | ||||||||||
The following is a summary of the Amended Settlement Agreement as it relates to SDG&E. | ||||||||||
Disallowances, Refunds and Rate Recoveries | ||||||||||
If the Amended Settlement Agreement is approved as proposed in the SONGS PD, SDG&E will | ||||||||||
remove from rate base, as of February 1, 2012, its investment in the SGRP and refund to its customers the amount collected for its investment in and any return on its investment in the SGRP since such date. As of February 1, 2012, SDG&E’s net book value in the SGRP was approximately $160 million; | ||||||||||
be authorized to recover in rates its remaining investment in SONGS, including base plant and construction work in progress (CWIP), generally over a ten-year period commencing February 1, 2012, together with a return on investment at a reduced rate equal to: | ||||||||||
SDG&E’s weighted average return on debt, plus | ||||||||||
50 percent of SDG&E’s weighted average return on preferred stock, as authorized in the CPUC’s Cost of Capital proceeding then in effect (collectively, SONGS rate of return or SONGS ROR). | ||||||||||
This results in a SONGS ROR of 2.75 percent for the period from February 1, 2012 through December 31, 2012 and 2.35 percent for the period from January 1, 2013 through December 31, 2014. The SONGS ROR for future periods will fluctuate based on SDG&E’s authorized weighted average returns on debt and preferred stock in effect for those future periods; | ||||||||||
be authorized to recover in rates its recorded 2012 and 2013 operations and maintenance expenses; in addition, SDG&E will be authorized to recover in rates the recorded costs for the 2012 refueling outage of Unit 2, subject to customary prudency review; | ||||||||||
be required to file an application in 2015 to recover in rates its 2014 recorded operation and maintenance expenses and non-operating operations and maintenance expenses; | ||||||||||
be authorized to recover in rates its remaining investment in materials and supplies over a ten-year period commencing February 1, 2012, together with a return on investment at the SONGS ROR; | ||||||||||
be authorized to recover in rates its remaining investment in nuclear fuel inventory and any costs incurred, or to be incurred, associated with nuclear fuel supply contracts over a ten-year period, together with a return equal to SDG&E’s commercial paper borrowing rate; | ||||||||||
be authorized to recover in rates through its fuel and purchased power balancing account (ERRA), subject to the normal CPUC compliance reviews, all costs incurred to purchase power in the market to replace the power that would have been generated at SONGS if not for the outage and shutdown of SONGS, and to recover by December 31, 2015 any SONGS-related ERRA undercollections. SDG&E’s replacement power purchase costs through June 6, 2013 (the date of SONGS’ retirement) were approximately $165 million, using the methodology followed in the SONGS OII; and | ||||||||||
have a five-year funding commitment of $1 million per year to the University of California (UC) Energy Institute (or other existing UC entity engaged in energy technology development) to create a Research Development and Demonstration program, whose goal would be to deploy new technologies, methodologies, and /or design modifications to reduce greenhouse gas (GHG) emissions, particularly at current and future generating plants in California. This term was a modification suggested by the CPUC. | ||||||||||
Potential Third Party Recoveries | ||||||||||
The Amended Settlement Agreement also addresses how potential recoveries from third parties will be allocated between ratepayers and SDG&E, as we describe below. | ||||||||||
As we discuss in more detail in Note 11, SDG&E and the other owners of SONGS carry accidental property damage and accidental outage insurance issued by Nuclear Electric Insurance Limited (NEIL), a mutual insurance company. Edison, on behalf of itself and the other minority owners in SONGS (including SDG&E), has placed NEIL on notice of claims under both policies. Under the Amended Settlement Agreement, recoveries from NEIL, if any, will first be applied to reimburse costs incurred in pursuing such recoveries, including litigation costs. To the extent SDG&E’s share of recoveries from NEIL attributable to the NEIL accidental outage policy exceeds such costs, recoveries will be allocated 95 percent to ratepayers and 5 percent to SDG&E. To the extent SDG&E’s share of recoveries from other NEIL policies (such as the accidental property damage policy) exceeds such costs, recoveries will be allocated 82.5 percent to ratepayers and 17.5 percent to SDG&E. | ||||||||||
As we discuss in more detail in Note 11, SDG&E has filed a lawsuit against MHI, which designed and provided the steam generators that failed. This proceeding was stayed in favor of an arbitration proceeding instituted by Edison. Under the Amended Settlement Agreement, recoveries from MHI, if any, will first be applied to reimburse costs incurred in pursuing such recoveries, including litigation costs. To the extent SDG&E’s share of recoveries from MHI exceeds such costs, they will be allocated 50 percent to SDG&E and 50 percent to ratepayers. | ||||||||||
The Amended Settlement Agreement provides for the resolution of the claims with NEIL and the dispute with MHI without requiring CPUC approval, but requires that Edison and SDG&E: | ||||||||||
use their best efforts to inform the CPUC of any settlements or resolutions of the issues to the extent possible without compromising any aspect of such settlements or resolutions, and | ||||||||||
allow the CPUC to review documentation of final resolution of third-party litigation and litigation costs to ensure that the ratepayer refund calculations are accurately calculated and that the litigation costs are not exorbitant in relation to the recovery obtained. | ||||||||||
There is no assurance that there will be any recoveries from NEIL or MHI or that if there are recoveries, that they will exceed the costs incurred to pursue them. Were there to be recoveries, SDG&E cannot provide any assurance as to when they would be received or the amount of any such recoveries. SDG&E currently expects that NEIL will make a coverage determination regarding the accidental outage policy in the first quarter of 2015. | ||||||||||
The Amended Settlement Agreement also provides SDG&E with an incentive in the event proceeds are secured from the sale of materials and supplies and/or nuclear fuel, as well as in the event that nuclear fuel investments are reduced by contract cancellations. This incentive allows SDG&E to retain 5 percent of its proportionate share of any sales proceeds and to recover 5 percent of its proportionate share of the excess of cancelled contract obligations over cancellation costs. The balance of the sale proceeds and cancellation benefits would be credited to ratepayers. | ||||||||||
Accounting and Financial Impacts | ||||||||||
As a result of the execution of the Amended Settlement Agreement by the Settling Parties and the issuance of the SONGS PD by the CPUC, SDG&E has concluded that the probable outcome of the SONGS OII is the approval and implementation of the Amended Settlement Agreement, although such outcome is dependent on final approval by the CPUC. | ||||||||||
As disclosed in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report, SDG&E reported a pretax loss from plant closure of $200 million ($119 million after-tax) in the second quarter of 2013 as a result of its initial assessment of the financial impact of the outcome of the SONGS OII proceeding. As a result of entering into the Settlement Agreement in the first quarter of 2014, SDG&E recorded a $13 million reduction to the pretax loss from plant closure, but a $9 million increase in the after-tax loss from plant closure. The after-tax loss includes a $17 million charge to reduce certain tax regulatory assets which may no longer be recoverable in rates pursuant to the Settlement Agreement. After adjustment for the Amended Settlement Agreement, SDG&E’s total loss from plant closure, including amounts previously recorded in 2013, is $187 million pretax ($128 million after-tax). A regulatory asset for the expected recovery of SONGS costs, consistent with the Amended Settlement Agreement, is recorded on the Condensed Consolidated Balance Sheets of Sempra Energy and SDG&E in Other Regulatory Assets (long-term). The amount of this regulatory asset is $192 million as of September 30, 2014. The impact of the modifications and clarifications in the Amended Settlement Agreement on the regulatory asset was recorded in the third quarter of 2014 and was not material. | ||||||||||
Assuming the Amended Settlement Agreement is approved, and except for the impact of the amount and timing of any potential future recoveries from third parties, which SDG&E cannot estimate at this time, SDG&E does not expect that implementation of the Amended Settlement Agreement will have a material adverse impact on its future results of operations or financial condition. | ||||||||||
Procedure | ||||||||||
Under the Amended Settlement Agreement, the Settling Parties are required to use their best efforts to obtain CPUC approval. In April 2014, the Settling Parties filed a Motion requesting the CPUC to: | ||||||||||
approve the Settlement Agreement without change; | ||||||||||
find the Settlement Agreement reasonable; | ||||||||||
withdraw the November 19, 2013 Proposed Decision on Phase 1 and Phase 1A issues in the SONGS OII; and | ||||||||||
expedite consideration of the Settlement Agreement in order to provide its benefits to ratepayers as soon as possible. | ||||||||||
Subject to the right of any settling party to terminate the Amended Settlement Agreement if it is not approved by the CPUC by December 23, 2014, the Settling Parties are further bound to: | ||||||||||
support and mutually defend the Amended Settlement Agreement in its entirety; | ||||||||||
oppose any modifications proposed by any non-settling party to the SONGS OII unless all Settling Parties agree; and | ||||||||||
cooperate reasonably on all submissions necessary to achieve CPUC approval. | ||||||||||
The Settling Parties further agree to review any CPUC orders regarding the Amended Settlement Agreement to determine if the CPUC has changed or modified it, deleted a term or imposed a new term. If any Settling Party is unwilling to accept any such change, modification, deletion or addition of a new term, then the Settling Parties will negotiate in good faith to seek a resolution acceptable to all Settling Parties. If they are unable to resolve the matter to the satisfaction of all Settling Parties, or to obtain prompt CPUC approval of an agreed upon resolution, then any Settling Party can terminate the Amended Settlement Agreement upon prompt notice. | ||||||||||
Pursuant to the CPUC’s rules, no settlement becomes binding unless the CPUC approves the settlement based on a finding that it is reasonable in light of the whole record, consistent with law, and in the public interest. The CPUC has discretion to approve or disapprove a settlement, or to condition its approval on changes to the settlement, which the parties may accept or reject. CPUC rules do not provide for any fixed time period for the CPUC to act on the SONGS PD. | ||||||||||
Unless and until the CPUC approves the Amended Settlement Agreement as proposed in the SONGS PD, there can be no assurance that the SONGS OII proceeding will provide for recoveries as currently estimated by SDG&E in accordance with the Amended Settlement Agreement, including the recovery of costs recorded as a regulatory asset, or that the CPUC will not order refunds to customers above those contemplated by the Amended Settlement Agreement. Therefore, the regulatory asset of $192 million in Other Regulatory Assets (long-term) on the Condensed Consolidated Balance Sheets of Sempra Energy and SDG&E at September 30, 2014 related to the SONGS plant closure could be subject to further change based upon future developments and the application of SDG&E’s judgment to those events. | ||||||||||
NRC Proceedings | ||||||||||
In December 2013, Edison received a final NRC Inspection Report that identified a violation for the failure to verify the adequacy of the thermal-hydraulic and flow-induced vibration design of the Unit 3 replacement steam generators. In January 2014, Edison provided a response to the NRC Inspection Report stating that MHI, as contracted by Edison to prepare the SONGS replacement steam generator design, was the party responsible for validating the design of the steam generators. | ||||||||||
In addition, the NRC issued an Inspection Report to MHI containing a Notice of Nonconformance for its flawed computer modeling in the design of the replacement steam generators. | ||||||||||
Because SONGS has ceased operation, NRC inspection oversight of SONGS will now be continued through the NRC’s Decommissioning Power Reactor Inspection Program to verify that decommissioning activities are being conducted safely, that spent fuel is safely stored onsite or transferred to another licensed location, and that the site operations and licensee termination activities conform to applicable regulatory requirements, licensee commitments and management controls. | ||||||||||
Nuclear Decommissioning and Funding | ||||||||||
As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison has begun the decommissioning phase of the plant. The process of decommissioning a nuclear power plant is governed by the regulations of various governmental and other agencies, including but not limited to, those of the NRC, the U.S. Department of the Navy (the land owner) and the CPUC. The NRC regulations generally 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 (provided by Edison to the NRC on June 12, 2013) and notice of permanent removal of fuel from the reactor vessels (provided by Edison on June 28 and July 22, 2013 for Units 3 and 2, respectively). Within two years after the cessation of operations, the licensee (Edison) must submit a post-shutdown decommissioning activities report (PSDAR), an irradiated fuel management plan (IFMP) and a site-specific decommissioning cost estimate (DCE). Edison submitted each of the PSDAR, the IFMP and the DCE to the NRC in September 2014. | ||||||||||
In accordance with state and federal requirements and regulations, SDG&E has assets held in trusts, referred to as the Nuclear Decommissioning Trusts (NDT), to fund decommissioning costs for SONGS Units 1, 2 and 3. At September 30, 2014, the fair value of SDG&E’s NDT assets was $1.1 billion. Except for the use of funds for the planning of decommissioning activities or NDT administrative costs, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs. In February 2014, SDG&E filed a request with the CPUC for such authorization for costs incurred in 2013. Until CPUC approval to access the NDT to pay for such costs is received, SDG&E will use working capital to pay for any SONGS Units 2 and 3 decommissioning costs incurred, and such expenditures will be reimbursed from the NDT upon that approval. | ||||||||||
SDG&E currently anticipates a decision regarding its ability to use the monies in the NDT by the end of 2014. | ||||||||||
SDG&E and Edison have a joint application pending with the CPUC requesting continued rate recovery to fund the NDT to ensure that the NDT has sufficient funding to pay for the estimated cost of decommissioning SONGS. SDG&E is currently authorized to recover $8 million annually to fund additional investments in the NDT. 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 by the end of 2014. | ||||||||||
On September 5, 2014, the NRC approved Edison’s February 2014 request (made on behalf of SONGS co-owners) for exemptions from various federal decommissioning requirements. The approved exemptions provide NRC approval for SONGS co-owners to use NDT funds for all types of decommissioning activity costs, including fuel management and site restoration costs. As noted above, however, CPUC approval to access the NDT to pay for such costs is still required for the SONGS co-owners to use NDT funds. | ||||||||||
Edison’s submission of the PSDAR and the DCE in September 2014 allows the SONGS co-owners to commence major decommissioning activities, and submission of the DCE provides the NRC authorization for the SONGS co-owners to access the majority of their decommissioning trust funds, both starting 90 days after the NRC receives the documents, unless the NRC staff raises objections. No objections have been received to date. | ||||||||||
Nuclear Decommissioning Trusts | ||||||||||
The amounts collected in rates for SONGS’ decommissioning are invested in externally managed trust funds. Amounts held by the trusts are invested in accordance with CPUC regulations. CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs. These trusts are shown on the Sempra Energy and SDG&E Condensed Consolidated Balance Sheets at fair value with the offsetting credits recorded in Regulatory Liabilities Arising from Removal Obligations. | ||||||||||
The following table shows the fair values and gross unrealized gains and losses for the securities held in the trust funds: | ||||||||||
NUCLEAR DECOMMISSIONING TRUSTS | ||||||||||
(Dollars in millions) | ||||||||||
Gross | Gross | Estimated | ||||||||
Unrealized | Unrealized | Fair | ||||||||
Cost | Gains | Losses | Value | |||||||
At September 30, 2014: | ||||||||||
Debt securities: | ||||||||||
Debt securities issued by the U.S. Treasury and other | ||||||||||
U.S. government corporations and agencies(1) | $ | 99 | $ | 4 | $ | ― | $ | 103 | ||
Municipal bonds(2) | 114 | 7 | ― | 121 | ||||||
Other securities(3) | 198 | 6 | -4 | 200 | ||||||
Total debt securities | 411 | 17 | -4 | 424 | ||||||
Equity securities | 212 | 427 | -2 | 637 | ||||||
Cash and cash equivalents | 26 | ― | ― | 26 | ||||||
Total | $ | 649 | $ | 444 | $ | -6 | $ | 1,087 | ||
At December 31, 2013: | ||||||||||
Debt securities: | ||||||||||
Debt securities issued by the U.S. Treasury and other | ||||||||||
U.S. government corporations and agencies | $ | 116 | $ | 3 | $ | -2 | $ | 117 | ||
Municipal bonds | 110 | 2 | -1 | 111 | ||||||
Other securities | 155 | 3 | -5 | 153 | ||||||
Total debt securities | 381 | 8 | -8 | 381 | ||||||
Equity securities | 207 | 409 | -2 | 614 | ||||||
Cash and cash equivalents | 39 | ― | ― | 39 | ||||||
Total | $ | 627 | $ | 417 | $ | -10 | $ | 1,034 | ||
-1 | Maturity dates are 2016-2060 | |||||||||
-2 | Maturity dates are 2014-2062 | |||||||||
-3 | Maturity dates are 2014-2096 | |||||||||
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, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
Proceeds from sales(1) | $ | 148 | $ | 181 | $ | 498 | $ | 507 | ||
Gross realized gains | 5 | 2 | 9 | 13 | ||||||
Gross realized losses | -3 | -8 | -8 | -15 | ||||||
(1) Excludes securities that are held to maturity. | ||||||||||
Net unrealized gains (losses) are included in Regulatory Liabilities Arising from Removal Obligations on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. | ||||||||||
We provide additional information about SONGS in Note 11. |
CALIFORNIA_UTILITIES_REGULATOR
CALIFORNIA UTILITIES' REGULATORY MATTERS | 3 Months Ended |
Sep. 30, 2014 | |
Notes to Consolidated Financial Statements [Abstract] | ' |
Sempra Utilities' Regulatory Matters | ' |
NOTE 10. CALIFORNIA UTILITIES' REGULATORY MATTERS | |
We discuss regulatory matters affecting our California Utilities in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and details of any new matters below. | |
JOINT MATTERS | |
CPUC General Rate Case (GRC) | |
The CPUC uses a general rate case proceeding to prospectively set rates sufficient to allow the California Utilities to recover their reasonable cost of operations and maintenance and to provide the opportunity to realize their authorized rates of return on their investment. In May 2013, the CPUC approved a final decision (Final GRC Decision) in the California Utilities’ 2012 GRC. The Final GRC Decision was 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 included 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 being 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, 2014, SDG&E reported on its Condensed Consolidated Balance Sheet $203 million as a regulatory asset, with $41 million classified as noncurrent, representing the retroactive revenue from the Final GRC Decision to be recovered by SDG&E in rates through December 2015. At September 30, 2014, SoCalGas reported on its Condensed Consolidated Balance Sheet a regulatory asset of $65 million, with $13 million as noncurrent, representing the retroactive revenue from the Final GRC Decision to be recovered in rates through December 2015. | |
The California Utilities filed their Notices of Intent (NOI) for the 2016 General Rate Case (2016 GRC) in July 2014. These NOIs included preliminary applications that propose revenue requirement increases of $168 million and $290 million for SDG&E and SoCalGas, respectively, over their 2015 revenue requirements. As included in the NOI, these proposed increases in revenue requirements would result in a 0.9 percent increase in SDG&E’s system average electric rate and 0.5 percent and 5.5 percent increases in SDG&E’s and SoCalGas’ system average gas rates, respectively. In September 2014, the CPUC staff completed its review of the NOIs. The CPUC staff found them in compliance with the Commission’s rate case plan and recommended that the NOIs be accepted. Accordingly, SDG&E and SoCalGas expect to file their official applications in the fourth quarter of 2014, including a request for a final decision on each of the applications in late 2015, with changes in rates to become effective on January 1, 2016. | |
We provide additional information regarding the 2012 GRC in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report. | |
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 natural gas transmission pipelines located in populated areas that have not been pressure tested. The California Utilities filed their Pipeline Safety Enhancement Plan (PSEP) with the CPUC in August 2011. | |
In April 2012, the CPUC transferred the PSEP to the Triennial Cost Allocation Proceeding (TCAP) and authorized 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. | |
Also 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. The CPUC’s Safety and Enforcement Division 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 utilities’ pipeline safety plans filed pursuant to SB 705. | |
In June 2014, the CPUC issued a final decision in the TCAP proceeding addressing SDG&E’s and SoCalGas’ PSEP. Specifically, the decision: | |
approved the utilities’ model for implementing PSEP; | |
approved a process, including a reasonableness review, to determine the amount that the utilities will be authorized to recover from ratepayers for the interim costs incurred through the date of the final decision to implement PSEP, which are recorded in the regulatory accounts authorized by the CPUC as noted above; | |
approved balancing account treatment, subject to a reasonableness review, for incremental costs yet to be incurred to implement PSEP; and | |
established the criteria to determine the amounts that would not be eligible for cost recovery, including: | |
certain costs incurred or to be incurred searching for pipeline test records, | |
the cost of pressure testing pipelines installed after July 1, 1961 for which the company has not found sufficient records of testing, and | |
any undepreciated balances for pipelines installed after 1961 that were replaced due to insufficient documentation of pressure testing. | |
As a result of this decision, SoCalGas recorded an after-tax earnings charge of $5 million for costs incurred in prior periods for which SoCalGas was disallowed recovery. After taking the amounts disallowed for recovery into consideration, as of September 30, 2014, SDG&E and SoCalGas have recorded PSEP implementation costs of $0.2 million and $47 million, respectively, in the CPUC-authorized regulatory account. In October 2014, SDG&E and SoCalGas filed a request with the CPUC for authority to recover from customers PSEP costs as incurred prior to a reasonableness review by the CPUC. | |
In July 2014, the ORA and TURN filed a joint application for rehearing of the CPUC’s June 2014 final decision. The ORA and TURN allege that the CPUC made a legal error in directing that ratepayers, not shareholders, be responsible for the costs associated with testing or replacing transmission pipelines that were installed between January 1, 1956 and July 1, 1961 for which the California Utilities do not have a record of a pressure test. In early August 2014, the California Utilities filed their response to the application for rehearing objecting to the assertions by the ORA and TURN. The CPUC is not obligated to act on the application for rehearing by a certain date. The California Utilities are continuing to implement PSEP in accordance with the June 2014 decision. | |
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. | |
Southern Gas System Reliability Project | |
In December 2013, SoCalGas and SDG&E filed a joint application with the CPUC seeking authority to recover the full cost of the Southern Gas System Reliability Project. Also known as the North-South Gas Project, the project will enhance reliability on the southern portions of the utilities’ integrated gas transmission system (Southern System). We estimate the cost of the project to be between $800 million to $850 million. Based on the CPUC schedule that provides for a draft decision in mid-2015, we anticipate a final CPUC decision by the end of 2015 and the project to be in service, subject to environmental permitting, by the end of 2019. We provide additional information about the project 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 August 2014, the CPUC issued a final decision approving SoCalGas’ application for a gas cost incentive mechanism (GCIM) award of $5.8 million for natural gas procured for its core customers during the 12-month period ending March 31, 2013. In June 2014, SoCalGas filed an application with the CPUC for approval of a $13.7 million GCIM award for natural gas procured for its core customers during the 12-month period ending March 31, 2014. SoCalGas expects a final CPUC decision in the first half of 2015. | |
Energy Efficiency | |
In June 2014, SoCalGas and SDG&E filed advice letters requesting awards of $5.8 million and $7.6 million, respectively, based on their performance on energy efficiency programs during program years 2012 and 2013. Of these amounts, SoCalGas and SDG&E are seeking initial 2013 program awards of $1.5 million and $2.5 million, respectively, and asking that any necessary adjustment to the 2013 awards be made in 2015 after completion of the CPUC’s audit. We expect a resolution by the end of the second quarter of 2015. | |
SDG&E MATTERS | |
SONGS | |
We discuss regulatory and other matters related to SONGS in Note 9. | |
Power Procurement and Resource Planning | |
Cleveland National Forest Transmission Projects | |
SDG&E filed an application with the CPUC in October 2012 for a permit to construct various transmission replacement projects in and around the Cleveland National Forest (CNF). The proposed projects will replace and fire-harden five existing transmission lines at an estimated cost of between $400 million and $450 million. As directed by the CPUC, SDG&E filed an amended application in June 2013 to provide notice of certain alternatives proposed by the U.S. Forest Service (USFS) in connection with SDG&E’s request for a Master Special Use Permit (MSUP). USFS approval of the MSUP will establish land rights and conditions for SDG&E’s continued operation and maintenance of facilities located within the CNF. CPUC approval is not required for the MSUP, even though construction of the projects is subject to review by both the USFS and CPUC. A draft environmental report (EIR/EIS), developed jointly by the CPUC and USFS, was issued in September 2014 and a final EIR/EIS is expected in early 2015. SDG&E currently expects a CPUC decision approving the transmission projects in the first half of 2015 and then expects the various phases of this project to be placed in service starting in 2016 and continuing through the end of the project in 2019. | |
Sycamore-Peñasquitos Transmission Project | |
In March 2014, the CAISO selected SDG&E, as a result of a competitive bid process, to construct the Sycamore-Peñasquitos 230-kilovolt (kV) transmission project, which will provide a 16.7-mile transmission connection between SDG&E’s Sycamore Canyon and Peñasquitos substations. In July 2014, the CPUC notified SDG&E that the application requesting a Certificate of Public Convenience and Necessity (CPCN) to construct the line, which was filed with the CPUC in April 2014, is complete. The estimated $120 million to $150 million project was identified by the CAISO and a state task force as necessary to ensure grid reliability given the closure of SONGS. The project will also serve to strengthen renewable energy infrastructure in the region. SDG&E expects a CPUC decision approving the project in the first half of 2016, with the line expected to be in service in mid-2017. | |
South Orange County Reliability Enhancement | |
SDG&E filed an application with the CPUC in May 2012 for a CPCN to construct the South Orange County Reliability Enhancement project. The purpose of the project is to enhance the capacity and reliability of SDG&E’s electric service to the south Orange County area. The proposed project primarily includes replacing and upgrading approximately eight miles of transmission lines and rebuilding and upgrading a substation at an existing site. SDG&E expects a draft environmental report to be issued by the end of 2014 and a final CPUC decision approving the estimated $400 million to $500 million project in 2015. SDG&E obtained approval for the project from the CAISO in May 2011. As the project is planned in phases, SDG&E currently expects the entire project to be in service in 2019. | |
South Bay Substation and Relocation Project | |
SDG&E filed an application in 2010 with the CPUC for a permit to construct a new substation, the Bay Boulevard substation, to replace the aging and obsolete South Bay substation to accommodate regional energy demands. The existing substation will be demolished when the Bay Boulevard substation has been constructed, energized and all transmission lines have been transferred. In October 2013, the CPUC approved SDG&E’s permit to construct the Bay Boulevard substation at SDG&E’s proposed site. The project, estimated at $145 million to $175 million, will replace the existing 138/69-kV substation with the new 230/69/12-kV Bay Boulevard substation. In March 2014, the California Coastal Commission approved the project, subject to certain additional environmental enhancements. SDG&E is in the process of obtaining the remaining approvals and permits required to begin construction. SDG&E currently expects the project to be in service in 2017. | |
Federal Energy Regulatory Commission (FERC) Formulaic Rate Matters | |
In February 2013, SDG&E submitted its Electric Transmission Formula Rate (TO4) filing with the FERC to set the rate making methodology and rate of return for SDG&E’s FERC-regulated electric transmission operations and assets for the period beginning September 1, 2013. The filing proposed a FERC ROE of 11.3 percent and requested: 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. In June and July 2013, the FERC issued orders accepting the filing, subject to refund, and established settlement and hearing procedures, with rates being effective as of 2013. | |
On January 31, 2014, SDG&E filed an uncontested multi-party settlement at the FERC regarding the TO4 filing. The settlement, approved by FERC in May 2014, will be in effect through December 31, 2018, is subject to a one-time right of termination by any party, and established a 10.05 percent ROE. SDG&E also has the right to file for any ROE incentives that might apply under FERC rules. SDG&E’s debt to equity ratio will be set annually based on the actual ratio at the end of each year. | |
Energy Resource Recovery Account (ERRA) | |
The ERRA is the regulatory balancing account that SDG&E uses to recover the electric fuel and purchased power costs it incurs to provide energy to its bundled service customers. SDG&E files an application with the CPUC each year to establish the ERRA revenue requirement needed for the following calendar year. Additionally, to the extent the ERRA balance exceeds a certain tolerance or “ERRA Trigger”, SDG&E must file an application to adjust its rates upward or downward, as applicable, to address the under- or over-collected ERRA balance, respectively. In February 2014, the CPUC issued a decision granting SDG&E authority to increase rates to recover an ERRA Trigger revenue requirement of $221 million, which rate increase was effective on April 1, 2014 and will continue through December 31, 2015. In May 2014, the CPUC issued a final decision approving SDG&E’s proposed 2014 ERRA revenue requirement of $1.23 billion, an increase of $242 million compared to the 2013 ERRA revenue requirement of $988 million. SDG&E implemented the increased revenue requirement on August 1, 2014. | |
Excess Wildfire Claims Cost Recovery | |
In August 2009, SDG&E and SoCalGas filed an application, along with other related filings, with the CPUC 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. | |
In February 2014, the Presiding Judge assigned by the FERC to SDG&E’s annual Electric Transmission Formula Rate filing (TO3 Cycle 6) issued an Initial Decision and an Order on Summary Judgment which authorizes SDG&E to recover all of the costs incurred and allocated to SDG&E’s FERC-regulated operations resulting from settlement activities for 2007 wildfire claims for that rate cycle period. This result will stand, subject to any successful appeal by the CPUC. In connection with this proceeding, the CPUC filed an appeal in the Ninth Circuit Court of Appeal of an earlier decision by the FERC denying the CPUC’s request to postpone the FERC proceeding pending CPUC action on cost recovery of the excess wildfire costs. The FERC has sought dismissal of the CPUC’s appeal on procedural grounds. The Court of Appeal has not yet ruled on the merits. | |
SDG&E intends to pursue recovery of the costs it has incurred for settlement activities associated with the 2007 wildfire claims allocated to SDG&E’s CPUC-regulated operations in a future application with the CPUC. SDG&E will continue to assess the potential for recovery of these costs in rates. We discuss the impact should SDG&E conclude that recovery in rates is no longer probable in “Legal Proceedings — SDG&E — 2007 Wildfire Litigation” in Note 11. 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 11. | |
SOCALGAS MATTER | |
Advanced Metering Infrastructure | |
In November 2011, the ORA (formerly the Division of Ratepayer Advocates or DRA) and TURN filed a joint petition requesting that the CPUC reconsider its prior approval of SoCalGas’ advanced metering infrastructure (AMI) project and stay AMI deployment while the CPUC considered the request. In June 2014, the CPUC denied the ORA/TURN petition, and SoCalGas is continuing its deployment of AMI pursuant to the April 2010 CPUC decision approving the project. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2014 | |
Notes to Consolidated Financial Statements [Abstract] | ' |
Commitments and Contingencies | ' |
NOTE 11. COMMITMENTS AND CONTINGENCIES | |
LEGAL PROCEEDINGS | |
We accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to estimate with reasonable certainty the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverage and could 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, 2014, Sempra Energy’s accrued liabilities for material legal proceedings, including associated legal fees and costs of litigation, on a consolidated basis, were $144 million. At September 30, 2014, accrued liabilities for material legal proceedings for SDG&E and SoCalGas were $127 million and $11 million, respectively. | |
SDG&E | |
2007 Wildfire Litigation | |
In October 2007, San Diego County experienced several catastrophic wildfires. Reports issued by the California Department of Forestry and Fire Protection (Cal Fire) concluded that two of these fires (the Witch and Rice fires) were SDG&E “power line caused” and that a third fire (the Guejito fire) occurred when a wire securing a Cox Communications’ (Cox) fiber optic cable came into contact with an SDG&E power line “causing an arc and starting the fire.” 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 over 1,000 homes destroyed. | |
A September 2008 staff report issued by the CPUC’s Consumer Protection and Safety Division, now known as the Safety and Enforcement Division (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. 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. SDG&E has resolved almost all of these lawsuits. In February 2014, the Court set a February 2015 trial date for a trial to be comprised of four of the remaining cases involving plaintiffs who claim damages resulting from the Witch fire. In June 2014, the Court continued the trial date for the Witch fire cases to June 2015. | |
SDG&E filed cross-complaints against Cox and three contractors, seeking indemnification for any liability that SDG&E might incur. SDG&E settled its claims against Cox and the three contractors for an aggregate of $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’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. 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 now settled almost all of these claims of the approximately 6,500 plaintiffs for a total of approximately $1.25 billion. Substantially all of the remaining plaintiffs have submitted settlement demands and damage estimates, which total approximately $200 million. SDG&E does not expect 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 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, 2014, Sempra Energy and SDG&E have recorded assets of $371 million in Other Regulatory Assets (long-term) on their Condensed Consolidated Balance Sheets, including $357 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 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. 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, 2014, the resulting after-tax charge against earnings would have been up to approximately $210 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. | |
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. | |
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. Most of the impact of this liability at September 30, 2014 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 these reserves on SDG&E’s and Sempra Energy’s after-tax earnings for the three months and nine months ended September 30, 2014 and 2013 were not material. Additionally, through September 30, 2014, SDG&E has expended $426 million in excess of amounts covered by insurance and amounts recovered from third parties to pay for the settlement of wildfire claims and related costs. | |
We provide additional information about excess wildfire claims cost recovery and related CPUC actions in Note 10 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. | |
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 Bureau of Land Management in January 2009, and the United States Forest Service in July 2010. Numerous administrative appeals and legal challenges have been resolved in favor of the project. Two legal challenges remain pending. | |
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 claims totaling $180 million, including one in San Diego County for the sum of $99 million and the other in Imperial County for the sum of $81 million, seeking foreclosure of previously filed mechanics liens. In October 2013, the contractor served a Demand for Arbitration pursuant to contractual provisions. SDG&E has answered the demand and filed a counter claim against the contractor. The arbitration panel has set a July 2015 arbitration hearing date. | |
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 Capital Corporation 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 Capital Corporation 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) Staff conducted a joint inquiry to determine the cause of the power failure and issued a report in May 2012 regarding their findings. Following that report, Staff from FERC’s Office of Enforcement (FERC Enforcement Staff) investigated potential violations of FERC’s Reliability Standards associated with the outage. In January 2014, FERC Enforcement Staff issued a Staff Notice of Alleged Violations, in which FERC Enforcement Staff alleged violations of various Reliability Standards by several entities. FERC Enforcement Staff did not allege or find any violations by 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. In late December 2013, MHI answered and filed a counter-claim against Edison. On March 14, 2014, MHI’s motion to stay the United States District Court proceeding was granted with instructions that require the parties to allow SDG&E to participate in the ongoing Edison/MHI arbitration. | |
Investment in Wind Farm | |
In 2011, the CPUC and FERC approved SDG&E’s estimated $285 million tax equity investment in a wind farm project and its purchase of renewable energy credits from that project. SDG&E’s contractual obligations to both invest in the Rim Rock wind farm and to purchase renewable energy credits from the wind farm under the power purchase agreement are subject to the satisfaction of certain conditions which, if not achieved, would allow SDG&E to terminate the power purchase agreement and not make the investment. In December 2013, SDG&E received a closing notice from the project developer indicating that all such conditions had been met. SDG&E responded to the closing notice asserting that the contractual conditions had not been satisfied. On December 19, 2013, SDG&E filed a complaint against the project developer in San Diego Superior Court, asking that the court determine that SDG&E is entitled to terminate both the investment contract and the power purchase agreement due to the project developer’s failure to satisfy certain conditions. The project developer filed a separate complaint against SDG&E in Montana state court asking that court to determine that SDG&E breached the investment contract and the power purchase agreement, and asking for several categories of relief, including requiring SDG&E to invest in the project, requiring SDG&E to continue performing under the power purchase agreement, and payment of damages. | |
On January 27, 2014, the Montana court ordered SDG&E to continue making payments under the power purchase agreement pending a hearing on the project developer’s preliminary injunction motion. On March 14, 2014, SDG&E notified the project developer that the investment agreement expired by its own terms because a closing had not occurred by that date. The project developer is disputing SDG&E’s position. On March 28, 2014, SDG&E filed an amended complaint against the project developer in San Diego seeking damages and declaratory relief that SDG&E was entitled to terminate the power purchase agreement and to permit the investment agreement to expire. On April 25, 2014, the Montana court granted the project developer’s preliminary injunction motion to prevent SDG&E from terminating the power purchase agreement on the grounds that the project developer would be irreparably harmed if the payments were not made while the parties’ respective rights were being determined in the litigation. The court did not rule on the merits of the parties’ claims. On July 18, 2014, the Montana Supreme Court determined that Montana courts did not have jurisdiction over the parties’ dispute due to their contractual agreement to resolve any disputes in California, and ordered that the Montana action be dismissed. The San Diego court has scheduled a trial for March 6, 2015. | |
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 three of the seven lawsuits for an amount that is not significant. | |
Sempra Mexico | |
Permit Challenges and Property Disputes | |
Sempra Mexico has been engaged in a long-running land dispute relating to property adjacent to its Energía Costa Azul LNG terminal near Ensenada, Mexico. Ownership of the adjacent property is not required by any of the environmental or other regulatory permits issued for the operation of the terminal. A claimant to the adjacent property has nonetheless asserted that his health and safety are endangered by the operation of the facility, and filed an action in the Federal Court challenging the permits. In February 2011, based on a complaint by the claimant, the municipality of Ensenada opened an administrative proceeding and sought to temporarily close the terminal based on claims of irregularities in municipal permits issued six years earlier. This attempt was promptly countermanded by Mexican federal and Baja California state authorities. No terminal permits or operations were affected as a result of these proceedings or events and the terminal has continued to operate normally. In the second quarter of 2014, the municipality of Ensenada dismissed the administrative proceeding, which is subject to an administrative appeal, pending for resolution before the Administrative Court of Baja California. 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 claimant also filed complaints in the federal Agrarian Court challenging the refusal of the Secretaría de la Reforma Agraria (now the Secretaría de Desarrollo Agrario, Territorial y Urbano, or SEDATU) in 2006 to issue a title to him for the disputed property. In November 2013, the Agrarian Court ordered that SEDATU issue the requested title and cause it to be registered. Both SEDATU and Sempra Mexico have challenged the rulings. Sempra Mexico expects additional proceedings regarding the claims, although such proceedings are not related to the permit challenges referenced above. The property claimant also filed a lawsuit in July 2010 against Sempra Energy in Federal District Court in San Diego seeking compensatory and punitive damages as well as the earnings from the Energía Costa Azul LNG terminal based on his allegations that he was wrongfully evicted from the adjacent property and that he has been harmed by other allegedly improper actions. Sempra Energy has disputed the claims and allegations in this lawsuit. | |
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. The Mexican Supreme Court decided to exercise jurisdiction over one such case, and in March 2014, issued a resolution denying the relief sought by the plaintiff on the grounds its action was not timely presented. A similar administrative challenge 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. | |
Two real property cases have been filed 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 purchased another of the terminal parcels, on the grounds the purchase price was unfair. Sempra Mexico expects further proceedings on the remaining two matters. | |
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, Sempra Energy holds a noncontrolling interest in RBS Sempra Commodities, a limited liability partnership in the process of being liquidated. The Royal Bank of Scotland plc (RBS), our partner in the joint venture, was notified by the United Kingdom’s Revenue and Customs Department (HMRC) that it was investigating value-added tax (VAT) refund claims made by various businesses in connection with the purchase and sale of carbon credit allowances. HMRC advised RBS that it had determined that it had grounds to deny such claims by RBS related to transactions by RBS Sempra Energy Europe (RBS SEE), a former indirect subsidiary of RBS Sempra Commodities that was sold to JP Morgan. HMRC asserted that RBS was not entitled to reduce its VAT liability by VAT paid during 2009 because RBS knew or should have known that certain vendors in the trading chain did not remit their own VAT to HMRC. In September 2012, HMRC issued a protective assessment of £86 million for the VAT paid in connection with these transactions. In October 2014, RBS filed a Notice of Appeal of the September 2012 assessment with the First-tier Tribunal. As a condition of the appeal, RBS was required to pay the assessed amount. The payment also stops the accrual of interest that could arise should it ultimately be determined that RBS has a liability for some of the tax. | |
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 resolved all issues with regard to sales between the California Department of Water Resources and Sempra Commodities in the Pacific Northwest, but potential claims may exist regarding sales in the Pacific Northwest between Sempra Commodities and other parties. The FERC is in the process of addressing these potential claims on remand. Pursuant to 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. | |
CONTRACTUAL COMMITMENTS | |
We discuss below significant changes in the first nine months of 2014 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 decreased by $110 million since December 31, 2013, primarily due to fulfillment of payment obligations and changes to forecasted gas prices in the first nine months of 2014. Net future payments are expected to decrease by $140 million in 2014, and increase by $30 million in 2015 compared to December 31, 2013. | |
Sempra Natural Gas’ natural gas purchase and transportation commitments have increased by $567 million since December 31, 2013, primarily due to new natural gas contracts in the first nine months of 2014. These contracts replace an agreement that expired in the third quarter of 2014 and will be used to support Sempra Mexico’s obligation to sell natural gas to the Mexican Federal Electricity Commission (Comisión Federal de Electricidad, or CFE) and fuel Sempra Mexico’s Termoeléctrica de Mexicali natural gas-fired power plant. Net future payments are expected to decrease by $57 million in 2014, and increase by $174 million in 2015, $159 million in 2016, $162 million in 2017 and $129 million in 2018 compared to December 31, 2013. | |
LNG Purchase Agreement | |
At September 30, 2014, Sempra Natural Gas has a purchase agreement for the supply of LNG to the Energía Costa Azul terminal. The agreement is priced using a predetermined formula based on natural gas market indices. Although this contract specifies a number of cargoes to be delivered, under its terms, the customer may divert certain cargoes, which would reduce amounts paid under the contracts by Sempra Natural Gas. | |
Sempra Natural Gas’ commitment under the LNG purchase agreement, reflecting changes in forward prices since December 31, 2013 and actual transactions for the first nine months of 2014, are expected to decrease by $624 million in 2014, $11 million in 2015, and to increase by $10 million in 2016, $30 million in 2017, $36 million in 2018 and $345 million thereafter compared to December 31, 2013. These amounts are based on forward prices of the index applicable to the contract from 2014 to 2023 and an estimated one percent escalation per year beyond 2023. The LNG commitment amounts above are based on Sempra Natural Gas’ commitment to accept the maximum possible delivery of cargoes under the agreement. Actual LNG purchases in the current and prior years have been significantly lower than the maximum amounts possible. | |
Purchased-Power Contracts | |
SDG&E’s commitments under purchased-power contract commitments have increased by $1.1 billion since December 31, 2013. The increase is primarily due to new contracts associated with renewable energy development projects. Net future payments are therefore expected to decrease by $2 million in 2014, $46 million in 2015, and $1 million in 2016, and increase by $24 million in 2017, $54 million in 2018 and $1.1 billion thereafter compared to December 31, 2013. | |
Operating Leases | |
In the first nine months of 2014, the change to operating lease commitments at Sempra Renewables was a decrease of $83 million, primarily from the deconsolidation of the Copper Mountain Solar 3 project, as we discuss in Note 3. Net future payments are expected to decrease by $3 million in 2014, $2 million each year in 2015 through 2018 and $72 million thereafter. | |
Power Purchase Agreements | |
SDG&E has a 25-year power purchase agreement with a peaker plant facility that became operational in 2014. The power purchase agreement is accounted for as a capital lease. The capital lease obligation was valued at $60 million. Net changes to future minimum lease payments under all power purchase agreements are a decrease of $16 million in 2014, and increases of $7 million each year in 2015 through 2018 and $155 million thereafter compared to December 31, 2013. | |
Construction and Development Projects | |
In the first nine months of 2014, significant net increases to contractual commitments at SDG&E were $161 million, primarily for Palomar Energy Center, South Bay Substation project and the PSEP. Net future payments under these contractual commitments are expected to increase by $20 million in 2014, $116 million in 2015, $12 million in 2016, $9 million in 2017, and $6 million in 2018, and decrease by $2 million thereafter compared to December 31, 2013. | |
In the first nine months of 2014, significant net increases to contractual commitments at SoCalGas were $119 million, primarily for the Aliso Canyon Turbine Replacement Project and the PSEP. Net future payments under these contractual commitments are expected to increase by $71 million in 2014, $65 million in 2015, and $1 million in 2016, and decrease by $18 million in 2017 compared to December 31, 2013. | |
In the first nine months of 2014, significant net decreases to contractual commitments at Sempra Mexico were $115 million, primarily from the deconsolidation of the Energía Sierra Juárez project. Net future payments under these contractual commitments are expected to decrease by $81 million in 2014, $33 million in 2015 and $1 million thereafter. | |
In the first nine months of 2014, the change to contractual commitments at Sempra Renewables was a decrease of $544 million, primarily from the deconsolidation of the Copper Mountain Solar 3 project. Net future payments under these contractual commitments are expected to decrease by $504 million in 2014 and $40 million in 2015. | |
Cameron LNG Liquefaction Export Facility Project | |
Construction and Development Project | |
In March 2014, Cameron LNG entered into an engineering, procurement and construction contract with a joint venture consisting of CB&I Shaw Constructors, Inc., a wholly owned subsidiary of Chicago Bridge & Iron Company N.V., and Chiyoda International Corporation, a wholly owned subsidiary of Chiyoda Corporation, to construct the Cameron liquefaction project in Hackberry, Louisiana. The scope of work under this contract includes the engineering, procurement, construction, commissioning and startup of three liquefaction trains with an aggregate nameplate capacity of approximately 13.5 million tonnes per year of LNG and related infrastructure and facilities necessary for the integration of the liquefaction trains with the existing LNG receipt terminal. The construction contract is a lump-sum, date certain turnkey agreement, with a cost of approximately $6 billion as of the execution date. The lump-sum price may be adjusted based on the occurrence of well-defined events, such as change orders issued by Cameron LNG, and the occurrence of other events where an adjustment to the lump-sum price is customary for lump-sum, date certain turnkey engineering, procurement and construction agreements. | |
As of September 30, 2014, Cameron LNG had issued three limited notices to proceed under the contract, authorizing up to $374.7 million of expenditures. After completing the formation of the Cameron LNG joint venture on October 1, 2014 as we discuss in Note 13, on October 9, 2014, the Cameron LNG joint venture issued the full notice to proceed under the contract to construct the Cameron liquefaction project. This allowed the contractor to proceed with all items of the work under the contract. The issuance of the full notice to proceed supersedes the three previously issued limited notices to proceed. | |
Guarantees | |
On August 6, 2014, Cameron LNG entered into finance documents for senior secured financing for the Cameron liquefaction project. We discuss the financing and related Sempra Energy guarantees in Note 13. | |
Subsequent Event | |
As we discuss in Note 13, on October 1, 2014, Sempra Natural Gas and its project partners completed the formation of the Cameron LNG joint venture for their investment in the development, construction and operation of the natural gas liquefaction export facility. As of that date, Sempra Natural Gas will account for its investment in the joint venture under the equity method. We discuss the joint venture formation in Note 13. | |
NUCLEAR INSURANCE | |
SDG&E and the other owners of SONGS have insurance to cover claims from nuclear liability incidents arising at SONGS. This insurance provides $375 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides for up to $13.2 billion of secondary financial protection (SFP). If a nuclear liability loss occurring at any U.S. licensed/commercial reactor exceeds the $375 million insurance limit, all nuclear reactor owners could be required to contribute to the SFP. SDG&E’s contribution 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.” This insurance coverage is provided through NEIL. The NEIL policies have specific exclusions and limitations that can result in reduced or eliminated coverage. Insured members as a group are subject to retrospective premium assessments to cover losses sustained by NEIL under all issued policies. SDG&E could be assessed up to $9.7 million of retrospective premiums based on overall member claims. 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 outages in early 2012 and the resultant plant closure in June 2013. | |
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. | |
DEPARTMENT OF ENERGY (DOE) NUCLEAR FUEL DISPOSAL | |
The Nuclear Waste Policy Act of 1982 made the DOE responsible for the disposal of spent nuclear fuel. However, it is uncertain when the DOE will begin accepting spent nuclear fuel from SONGS. This delay will lead to increased costs for spent fuel storage. SDG&E will seek recovery for these costs from the appropriate sources, including, but not limited to, SDG&E’s Nuclear Decommissioning Trust. SDG&E will also continue to support Edison in its pursuit of legal claims on behalf of the SONGS co-owners against the DOE for its failure to timely accept the spent nuclear fuel. | |
We provide additional information about SONGS in Note 9. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Notes to Consolidated Financial Statements [Abstract] | ' | |||||||||||||||||
Segment Information | ' | |||||||||||||||||
NOTE 12. SEGMENT INFORMATION | ||||||||||||||||||
We have six separately managed reportable segments, as follows: | ||||||||||||||||||
SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County. | ||||||||||||||||||
SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California. | ||||||||||||||||||
Sempra South American Utilities 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. | ||||||||||||||||||
Common services shared by the business segments are assigned directly or allocated based on various cost factors, depending on the nature of the service provided. Interest income and expense is recorded on intercompany loans. The loan balances and related interest are eliminated in consolidation. | ||||||||||||||||||
The following tables show selected information by segment from our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as “All other” in the following tables consist primarily of parent organizations. | ||||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
REVENUES | ||||||||||||||||||
SDG&E | $ | 1,233 | 44 | % | $ | 1,063 | 42 | % | $ | 3,283 | 40 | % | $ | 3,066 | 39 | % | ||
SoCalGas | 855 | 30 | 807 | 32 | 2,857 | 35 | 2,694 | 34 | ||||||||||
Sempra South American Utilities | 379 | 14 | 364 | 14 | 1,147 | 14 | 1,119 | 14 | ||||||||||
Sempra Mexico | 234 | 8 | 188 | 7 | 621 | 7 | 519 | 7 | ||||||||||
Sempra Renewables | 10 | ― | 25 | 1 | 25 | ― | 76 | 1 | ||||||||||
Sempra Natural Gas | 252 | 9 | 212 | 8 | 748 | 9 | 683 | 9 | ||||||||||
Adjustments and eliminations | 1 | ― | ― | ― | -1 | ― | -2 | ― | ||||||||||
Intersegment revenues(1) | -149 | -5 | -108 | -4 | -392 | -5 | -303 | -4 | ||||||||||
Total | $ | 2,815 | 100 | % | $ | 2,551 | 100 | % | $ | 8,288 | 100 | % | $ | 7,852 | 100 | % | ||
INTEREST EXPENSE | ||||||||||||||||||
SDG&E | $ | 51 | $ | 50 | $ | 152 | $ | 147 | ||||||||||
SoCalGas | 17 | 17 | 50 | 52 | ||||||||||||||
Sempra South American Utilities | 7 | 8 | 24 | 20 | ||||||||||||||
Sempra Mexico | 5 | ― | 13 | 5 | ||||||||||||||
Sempra Renewables | 2 | 5 | 3 | 22 | ||||||||||||||
Sempra Natural Gas | 25 | 34 | 90 | 80 | ||||||||||||||
All other | 63 | 60 | 178 | 182 | ||||||||||||||
Intercompany eliminations | -26 | -37 | -92 | -95 | ||||||||||||||
Total | $ | 144 | $ | 137 | $ | 418 | $ | 413 | ||||||||||
INTEREST INCOME | ||||||||||||||||||
SDG&E | $ | ― | $ | ― | $ | ― | $ | 1 | ||||||||||
Sempra South American Utilities | 4 | 3 | 10 | 11 | ||||||||||||||
Sempra Mexico | 1 | ― | 2 | 1 | ||||||||||||||
Sempra Renewables | ― | 7 | ― | 14 | ||||||||||||||
Sempra Natural Gas | 24 | 26 | 87 | 57 | ||||||||||||||
All other | -1 | 2 | ― | 1 | ||||||||||||||
Intercompany eliminations | -22 | -33 | -84 | -70 | ||||||||||||||
Total | $ | 6 | $ | 5 | $ | 15 | $ | 15 | ||||||||||
DEPRECIATION AND AMORTIZATION | ||||||||||||||||||
SDG&E | $ | 134 | 46 | % | $ | 126 | 44 | % | $ | 395 | 46 | % | $ | 367 | 44 | % | ||
SoCalGas | 109 | 37 | 100 | 35 | 321 | 37 | 280 | 34 | ||||||||||
Sempra South American Utilities | 14 | 5 | 14 | 5 | 41 | 5 | 44 | 5 | ||||||||||
Sempra Mexico | 16 | 6 | 16 | 5 | 47 | 5 | 47 | 6 | ||||||||||
Sempra Renewables | 1 | ― | 5 | 2 | 4 | ― | 20 | 3 | ||||||||||
Sempra Natural Gas | 17 | 6 | 20 | 7 | 50 | 6 | 60 | 7 | ||||||||||
All other | 1 | ― | 5 | 2 | 8 | 1 | 10 | 1 | ||||||||||
Total | $ | 292 | 100 | % | $ | 286 | 100 | % | $ | 866 | 100 | % | $ | 828 | 100 | % | ||
INCOME TAX EXPENSE (BENEFIT) | ||||||||||||||||||
SDG&E | $ | 65 | $ | 84 | $ | 217 | $ | 147 | ||||||||||
SoCalGas | 44 | 38 | 110 | 107 | ||||||||||||||
Sempra South American Utilities | 26 | 16 | 59 | 50 | ||||||||||||||
Sempra Mexico | 13 | 16 | 37 | 44 | ||||||||||||||
Sempra Renewables | -16 | 9 | -35 | -8 | ||||||||||||||
Sempra Natural Gas | -31 | -4 | -22 | 35 | ||||||||||||||
All other | -30 | -42 | -75 | -48 | ||||||||||||||
Total | $ | 71 | $ | 117 | $ | 291 | $ | 327 | ||||||||||
SEGMENT INFORMATION (Continued) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
EQUITY EARNINGS (LOSSES) | ||||||||||||||||||
Earnings (losses) recorded before tax: | ||||||||||||||||||
Sempra Renewables | $ | 7 | $ | -10 | $ | 18 | $ | -12 | ||||||||||
Sempra Natural Gas | 15 | 13 | 44 | 33 | ||||||||||||||
Total | $ | 22 | $ | 3 | $ | 62 | $ | 21 | ||||||||||
Earnings (losses) recorded net of tax: | ||||||||||||||||||
Sempra South American Utilities | $ | -2 | $ | ― | $ | -4 | $ | -14 | ||||||||||
Sempra Mexico | 9 | 8 | 26 | 27 | ||||||||||||||
Total | $ | 7 | $ | 8 | $ | 22 | $ | 13 | ||||||||||
EARNINGS (LOSSES) | ||||||||||||||||||
SDG&E(2) | $ | 157 | 45 | % | $ | 129 | 44 | % | $ | 379 | 44 | % | $ | 285 | 40 | % | ||
SoCalGas(3) | 98 | 28 | 102 | 34 | 256 | 30 | 266 | 37 | ||||||||||
Sempra South American Utilities | 32 | 9 | 39 | 13 | 109 | 13 | 110 | 15 | ||||||||||
Sempra Mexico | 63 | 18 | 39 | 13 | 139 | 16 | 96 | 13 | ||||||||||
Sempra Renewables | 17 | 5 | 37 | 13 | 63 | 7 | 56 | 8 | ||||||||||
Sempra Natural Gas | 26 | 8 | -7 | -2 | 39 | 4 | 55 | 8 | ||||||||||
All other | -45 | -13 | -43 | -15 | -121 | -14 | -149 | -21 | ||||||||||
Total | $ | 348 | 100 | % | $ | 296 | 100 | % | $ | 864 | 100 | % | $ | 719 | 100 | % | ||
Nine months ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | ||||||||||||||||||
SDG&E | $ | 790 | 34 | % | $ | 679 | 38 | % | ||||||||||
SoCalGas | 764 | 33 | 521 | 29 | ||||||||||||||
Sempra South American Utilities | 126 | 5 | 120 | 7 | ||||||||||||||
Sempra Mexico | 262 | 11 | 280 | 16 | ||||||||||||||
Sempra Renewables | 174 | 8 | 119 | 7 | ||||||||||||||
Sempra Natural Gas | 192 | 8 | 65 | 3 | ||||||||||||||
All other | 12 | 1 | 1 | ― | ||||||||||||||
Total | $ | 2,320 | 100 | % | $ | 1,785 | 100 | % | ||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||
ASSETS | ||||||||||||||||||
SDG&E | $ | 15,975 | 41 | % | $ | 15,377 | 41 | % | ||||||||||
SoCalGas | 9,954 | 26 | 9,147 | 25 | ||||||||||||||
Sempra South American Utilities | 3,463 | 9 | 3,531 | 10 | ||||||||||||||
Sempra Mexico | 3,404 | 9 | 3,246 | 9 | ||||||||||||||
Sempra Renewables | 1,379 | 3 | 1,219 | 3 | ||||||||||||||
Sempra Natural Gas | 6,617 | 17 | 7,200 | 19 | ||||||||||||||
All other | 1,141 | 3 | 838 | 2 | ||||||||||||||
Intersegment receivables | -2,951 | -8 | -3,314 | -9 | ||||||||||||||
Total | $ | 38,982 | 100 | % | $ | 37,244 | 100 | % | ||||||||||
INVESTMENTS IN EQUITY METHOD INVESTEES | ||||||||||||||||||
Sempra South American Utilities | $ | -7 | $ | -3 | ||||||||||||||
Sempra Mexico | 427 | 379 | ||||||||||||||||
Sempra Renewables | 871 | 707 | ||||||||||||||||
Sempra Natural Gas | 342 | 329 | ||||||||||||||||
All other | 72 | 73 | ||||||||||||||||
Total | $ | 1,705 | $ | 1,485 | ||||||||||||||
-1 | Revenues for reportable segments include intersegment revenues of: | |||||||||||||||||
$2 million, $17 million, $23 million and $107 million for the three months ended September 30, 2014; $7 million, $51 million, $68 million and $266 million for the nine months ended September 30, 2014; $3 million, $17 million, $23 million and $65 million for the three months ended September 30, 2013; and $7 million, $48 million, $68 million and $180 million for the nine months ended September 30, 2013 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively. | ||||||||||||||||||
-2 | After preferred dividends and call premium on preferred stock for 2013. | |||||||||||||||||
-3 | After preferred dividends. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 0 Months Ended | |||
Oct. 01, 2014 | ||||
Subsequent Events (Abstract) | ' | |||
Subsequent Events | ' | |||
NOTE 13. SUBSEQUENT EVENT | ||||
SEMPRA NATURAL GAS | ||||
Cameron LNG Holdings Joint Venture | ||||
On August 6, 2014, Sempra Natural Gas and its project partners, comprised of affiliates of GDF SUEZ S.A., Mitsui & Co., Ltd., and Mitsubishi Corporation (through a related company jointly established with Nippon Yusen Kabushiki Kaisha), provided their respective final investment decision with respect to the investment in the development, construction and operation of the natural gas liquefaction export facility at the terminal in Hackberry, Louisiana, owned by Cameron LNG, LLC (Cameron LNG). The Cameron liquefaction project utilizes Cameron LNG’s existing facilities, including two marine berths, three LNG storage tanks, and vaporization capability of 1.5 billion cubic feet (Bcf) per day. The Cameron liquefaction project is comprised of three liquefaction trains and is being designed to a nameplate capacity of 13.5 million tonnes per annum (Mtpa) of LNG, with an expected export capability of 12 Mtpa of LNG, or approximately 1.7 Bcf per day. Commercial operation of all three trains is expected to commence in 2018, with the first year of full operations in 2019. The effective date of the Cameron LNG joint venture, Cameron LNG Holdings, LLC (Cameron LNG Holdings), among Sempra Energy and its project partners occurred on October 1, 2014 after satisfaction of various conditions, including receipt of final regulatory approval and satisfaction of conditions precedent to the first disbursement of the project financing. | ||||
In 2013, Sempra Natural Gas signed 20-year liquefaction and regasification tolling capacity agreements with GDF SUEZ S.A. and affiliates of Mitsubishi Corporation and Mitsui & Co., Ltd. which subscribe the full nameplate capacity of the facility. Each tolling agreement is for 4.5 Mtpa of capacity to enable 4.0 Mtpa of LNG export. Also in 2013, Sempra Natural Gas signed agreements totaling 1.45 Bcf per day of firm natural gas transportation service to Cameron LNG on the Cameron Interstate Pipeline with GDF SUEZ S.A. and affiliates of Mitsubishi Corporation and Mitsui & Co., Ltd. The terms of these agreements are concurrent with the liquefaction and regasification tolling capacity agreements. | ||||
Our equity in Cameron LNG Holdings was derived from our contribution of Cameron LNG to the joint venture at its historical carrying value. Each of the partners were issued indirect equity interests in Cameron LNG in an aggregate of 49.8 percent. Cameron LNG thereby ceased to be wholly owned or controlled by Sempra Natural Gas, which retained a 50.2 percent of Cameron LNG. As of the October 1, 2014 effective date, Sempra Natural Gas will account for its investment in Cameron LNG Holdings under the equity method. Sempra Energy did not recognize a gain or loss related to the contribution of Cameron LNG to the joint venture. | ||||
The following table summarizes the deconsolidation of the Cameron liquefaction project: | ||||
DECONSOLIDATION OF SUBSIDIARY | ||||
(Dollars in millions) | ||||
Cameron LNG, LLC | ||||
1-Oct-14 | ||||
Cash | $ | -6 | ||
Other current assets | -11 | |||
Property, plant and equipment, net | -1,022 | |||
Other assets | -30 | |||
Accounts payable and accrued expenses | 93 | |||
Equity method investment upon deconsolidation | $ | -976 | ||
Joint Venture Financing | ||||
General | ||||
On August 6, 2014, Cameron LNG also entered into finance documents (collectively, Loan Facility Agreements) for senior secured financing in an initial aggregate principal amount of up to $7.4 billion under three debt facilities provided by the Japan Bank for International Cooperation (JBIC) and 29 international commercial banks, some of which will benefit from insurance coverage provided by Nippon Export and Investment Insurance (NEXI). | ||||
The Cameron LNG Loan Facility Agreements and related finance documents provide senior secured term loans with a maturity date of July 15, 2030. The proceeds of the loans will be used for financing the cost of development and construction of the Cameron LNG project. The Loan Facility Agreements and related finance documents contain customary representations and affirmative and negative covenants for project finance facilities of this type with the lenders of the type participating in the Cameron LNG financing. On August 6, 2014, Sempra Energy entered into a completion agreement in favor of HSBC Bank USA, National Association, as security trustee for the benefit of all of Cameron LNG Holdings’ creditors. Pursuant to this completion agreement, Sempra Energy has severally guaranteed 50.2 percent of Cameron LNG Holdings’ senior debt obligations under the Loan Facility Agreements, or a maximum principal amount of $3.7 billion. Completion guarantees for the remaining 49.8 percent of Cameron LNG Holdings’ senior secured financing have been provided by the other project partners. The occurrence of the effectiveness of the Cameron LNG Holdings joint venture on October 1, 2014 was a condition precedent to first disbursement of funds under the Loan Facility Agreements, and the Sempra Energy completion guarantee of 50.2 percent of the Cameron LNG Holdings financing also became effective upon effectiveness of the Cameron LNG Holdings joint venture. Sempra Energy’s completion agreement and guarantee will terminate upon financial completion of the Cameron LNG project, which is subject to satisfaction of certain conditions, including all three trains achieving commercial operations and meeting certain operational performance tests. Financial completion is scheduled for the second half of 2019. | ||||
Interest | ||||
The weighted average all-in cost of the loans outstanding under all the Loan Facility Agreements (and based on certain assumptions as to timing of drawdown) is 1.59 percent per annum over LIBOR prior to financial completion of the project and 1.78 per annum over LIBOR following financial completion of the project. The Loan Facility Agreements require Cameron LNG to hedge 50 percent of outstanding borrowings to fix the interest rate, beginning in 2016. The hedges are to remain in place until the debt principal has been amortized by 50 percent. | ||||
Mandatory Prepayments | ||||
Cameron LNG also must make mandatory prepayments of all loans made under the Loan Facility Agreements under certain circumstances, including: upon receipt of certain insurance proceeds and expropriation compensation; upon receipt of certain performance liquidated damages under Cameron LNG’s engineering, procurement and construction contract for the liquefaction terminal; in connection with the loss of its tolling agreements or export permits that result in a reduction of Cameron LNG’s debt service coverage ratios below a specified threshold; if it becomes unlawful in any applicable jurisdiction for a lender to fund or maintain its loans; or in connection with any mandatory prepayment of senior notes outstanding (if any). | ||||
The loans under the NEXI Covered Loan Facility Agreement and the loans held by JBIC under the JBIC Loan Facility Agreement are subject to certain additional mandatory prepayments that would be triggered if the Japanese sponsors fail to maintain certain ownership interests in Cameron LNG, if Cameron LNG’s Japanese tolling customers do not hold commitments for a certain quantum of nameplate capacity at the liquefaction terminal or if the aggregate annual contracted LNG commitments by Cameron LNG’s tolling customers to Japanese LNG buyers fall below a certain minimum threshold under certain circumstances. | ||||
Events of Default | ||||
Cameron LNG’s Loan Facility Agreements and related finance documents also contain events of default customary for such financings, including events of default for: failure to pay principal and interest on the due date; insolvency of Cameron LNG; abandonment of the project; expropriation; unenforceability or termination of the finance documents; and a failure to achieve financial completion of the project by a financial completion deadline date of September 30, 2021 (with up to additional 365 days extension beyond such date permitted in cases of force majeure). A delay in construction that results in a failure to achieve financial completion of the project by this financial completion deadline date would therefore result in an event of default under Cameron LNG’s financing and a potential demand on Sempra Energy’s guarantee. | ||||
Security | ||||
To support Cameron LNG’s obligations under the Loan Facility Agreements and related finance documents, Cameron LNG has granted security over all of its assets, subject to customary exceptions, and all equity interests in Cameron LNG have been pledged to HSBC Bank USA, National Association, as security trustee for the benefit of all Cameron LNG’s creditors. As a result, an enforcement action by the lenders taken in accordance with the finance documents could result in the exercise of such security interests by the lenders and the loss of ownership interests in Cameron LNG by Sempra Energy and the other project partners. | ||||
The security trustee under Cameron LNG’s financing can demand that a payment be made by Sempra Energy under its guarantee of Sempra Energy’s 50.2 percent share of senior debt obligations due and payable either on the date such amounts were due from Cameron LNG (taking into account cure periods) in the event of a failure by Cameron LNG to pay such senior debt obligations when they become due or within 10 business days in the event of an acceleration of senior debt obligations under the terms of the finance documents. If an event of default occurs under the Sempra Energy completion agreement, the security trustee can demand that Sempra Energy purchase its 50.2 percent share of all then outstanding senior debt obligations within five business days (other than in the case of a bankruptcy default, which is automatic). | ||||
Terminal Services Agreement | ||||
At September 30, 2014, Cameron LNG had a terminal services agreement with one customer that required the customer to pay capacity reservation and usage fees to use its Cameron LNG facilities to receive, store and regasify the customer’s LNG. There is a termination agreement in place that will result in the termination of this agreement at the point during construction of the new liquefaction facilities where piping tie-ins to the existing regasification terminal become necessary. Based on the full notice to proceed that was issued to Cameron LNG’s engineering, procurement and construction contractor in October 2014, we expect this termination date to occur during the first quarter of 2017. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2014 | |
Significant Accounting Policies | ' |
New Accounting Standards Policy | ' |
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) 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 adopted ASU 2013-11 on January 1, 2014 as required, and it did not significantly affect our financial condition, results of operations or cash flows. | |
ASU 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09): ASU 2014-09 provides accounting guidance for revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. The guidance also provides a model for the measurement and recognition of gains and losses on the sale of certain nonfinancial assets, such as property and equipment, including real estate. This guidance must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. | |
We will adopt ASU 2014-09 on January 1, 2017 as required, and we are currently evaluating the effect of adopting it on our financial condition, results of operations and 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. | |
Noncontrolling Interest Policy | ' |
Ownership interests that are held by owners other than Sempra Energy and SDG&E in subsidiaries or entities consolidated by them are accounted for and reported as noncontrolling interests. As a result, noncontrolling interests are reported as a separate component of equity on the Condensed Consolidated Balance Sheets. Earnings or losses attributable to noncontrolling interests are separately identified on the Condensed Consolidated Statements of Operations, and comprehensive income or loss attributable to noncontrolling interests is separately identified on the Condensed Consolidated Statements of Comprehensive Income. | |
Earnings Per Share Policy | ' |
Basic earnings per common share (EPS) is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were 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 of dilutive common stock equivalents excludes options for which the exercise price on common stock was greater than the average market price during the period (out-of-the-money options). | |
The dilution from unvested restricted 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 or tax shortfalls recognized are the difference between tax deductions we would receive upon the assumed vesting of RSAs or RSUs and the deferred income taxes we recorded related to the compensation expense on such awards and units. | |
Our RSAs, which are solely service-based, and those RSUs that are solely service-based represent the right to receive 1.0 share at the end of the service period and have the same dividend equivalent rights as performance-based RSUs. We include RSAs and those RSUs that are solely service-based in potential dilutive shares at 100 percent, subject to the application of the treasury stock method. We include our performance-based RSUs in potential dilutive shares at zero to up to 200 percent to the extent that they currently meet the performance requirements for vesting, subject to the application of the treasury stock method. | |
Interim period effective tax rate policy | ' |
Sempra Energy, SDG&E and SoCalGas record income taxes for interim periods utilizing a forecasted effective tax rate anticipated for the full year, as required by U.S. GAAP. The income tax effect of items that can be reliably forecasted are factored into the forecasted effective tax rate and their impact is recognized proportionately over the year. The forecasted items, anticipated on a full year basis, may include, among others: | |
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 | |
depreciation on a certain portion of utility plant assets | |
U.S. tax on repatriation of current year earnings from non-U.S. subsidiaries | |
Items that cannot be reliably forecasted (e.g., adjustments related to prior years’ income tax items, remeasurement of deferred tax asset valuation allowances, Mexican currency translation and inflation adjustments, and deferred income tax benefit associated with the impairment of a book investment) are recorded in the interim period in which they actually occur, which can result in variability to income tax expense. | |
For SDG&E and SoCalGas, the CPUC requires flow-through rate-making treatment for the current income tax benefit or expense arising from certain property-related and other temporary differences between the treatment for financial reporting and income tax, which will reverse over time. Under the regulatory accounting treatment required for these flow-through temporary differences, deferred income tax assets and liabilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which impacts the current effective income tax rate. 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 | |
The AFUDC related to equity recorded for regulated construction projects at Sempra Mexico has similar flow-through treatment. | |
Fair Value Measurement Policy | ' |
Recurring Fair Value Measures | |
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. | |
Level 3 Information | |
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. SDG&E expects all costs related to CRRs to be recoverable through customer rates. As such, there is no impact to earnings from changes in the fair value of these instruments. | |
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. | |
We base the fair value of certain long-term debt and preferred stock on a market approach using quoted market prices for identical or similar securities in thinly-traded markets (Level 2). We value other long-term debt using an income approach based on the present value of estimated future cash flows discounted at rates available for similar securities (Level 3). | |
Derivatives Policy | ' |
We 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. | |
Each Condensed Consolidated Balance Sheet reflects the offsetting of net derivative positions and cash collateral with the same counterparty when a legal right of offset exists. | |
Legal Costs Policy | ' |
LEGAL PROCEEDINGS | |
We accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. | |
Segment Policy | ' |
Common services shared by the business segments are assigned directly or allocated based on various cost factors, depending on the nature of the service provided. Interest income and expense is recorded on intercompany loans. The loan balances and related interest are eliminated in consolidation. |
RECENT_INVESTMENT_ACTIVITY_Tab
RECENT INVESTMENT ACTIVITY (Tables) | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Recent Investment Activity (Tables) [Abstract] | ' | |||||||
Schedule of Business Deconsolidation Table | ' | |||||||
DECONSOLIDATION OF SUBSIDIARIES | ||||||||
(Dollars in millions) | ||||||||
Energía Sierra Juárez | Copper MountainSolar 3 | Sempra Energy Consolidated | ||||||
At July 16 | At March 13 | |||||||
2014:00:00 | ||||||||
Proceeds from sale, net of negligible transaction costs | $ | 26 | $ | 68 | $ | 94 | ||
Cash | -2 | -2 | -4 | |||||
Other current assets | -11 | ― | -11 | |||||
Property, plant and equipment, net | -137 | -247 | -384 | |||||
Other assets | -16 | -11 | -27 | |||||
Accounts payable and accrued expenses | 10 | 82 | 92 | |||||
Due to affiliate | 39 | ― | 39 | |||||
Long-term debt, including current portion | 82 | 97 | 179 | |||||
Other liabilities | 7 | 3 | 10 | |||||
Accumulated other comprehensive income | -5 | -2 | -7 | |||||
Gain on sale of equity interests | -19 | -27 | -46 | |||||
Equity method investments upon deconsolidation | $ | -26 | $ | -39 | $ | -65 | ||
Mesquite Solar 1 | Copper Mountain Solar 2 | Sempra Energy Consolidated | ||||||
At September 19 | At July 11 | |||||||
2013:00:00 | ||||||||
Proceeds from sale, net of transaction costs(1) | $ | 100 | $ | 68 | $ | 168 | ||
Property, plant and equipment, net | -461 | -266 | -727 | |||||
Other assets | -72 | -30 | -102 | |||||
Long-term debt, including current portion | 297 | 146 | 443 | |||||
Other liabilities | 31 | 19 | 50 | |||||
Gain on sale of equity interests | -36 | -4 | -40 | |||||
Equity method investments upon deconsolidation | $ | -141 | $ | -67 | $ | -208 | ||
-1 | Transaction costs were $3 million at both Mesquite Solar 1 and Copper Mountain Solar 2. | |||||||
(Dollars in millions) | ||||||||
Property, plant and equipment, net | $ | 290 | ||||||
Inventories | 3 | |||||||
Total assets held for sale | 293 | |||||||
Liability held for sale - asset retirement obligation(1) | -6 | |||||||
$ | 287 | |||||||
-1 | Included in Other Current Liabilities on the Condensed Consolidated Balance Sheets. |
OTHER_FINANCIAL_DATA_Tables
OTHER FINANCIAL DATA (Tables) | 3 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
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, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Service cost | $ | 23 | $ | 28 | $ | 6 | $ | 8 | ||||||||||
Interest cost | 39 | 35 | 13 | 10 | ||||||||||||||
Expected return on assets | -42 | -39 | -15 | -15 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 3 | 1 | -2 | -1 | ||||||||||||||
Actuarial loss | 3 | 11 | ― | ― | ||||||||||||||
Settlements and special termination benefits | 5 | 1 | 5 | ― | ||||||||||||||
Regulatory adjustment | 6 | -14 | 5 | 3 | ||||||||||||||
Total net periodic benefit cost | $ | 37 | $ | 23 | $ | 12 | $ | 5 | ||||||||||
Nine months ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Service cost | $ | 75 | $ | 82 | $ | 18 | $ | 21 | ||||||||||
Interest cost | 121 | 111 | 37 | 33 | ||||||||||||||
Expected return on assets | -128 | -121 | -47 | -44 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 8 | 3 | -4 | -3 | ||||||||||||||
Actuarial loss | 13 | 41 | ― | 5 | ||||||||||||||
Settlements and special termination benefits | 14 | 1 | 5 | ― | ||||||||||||||
Regulatory adjustment | -18 | -65 | 5 | 7 | ||||||||||||||
Total net periodic benefit cost | $ | 85 | $ | 52 | $ | 14 | $ | 19 | ||||||||||
NET PERIODIC BENEFIT COST – SDG&E | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
Three months ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Service cost | $ | 8 | $ | 8 | $ | 2 | $ | 2 | ||||||||||
Interest cost | 10 | 9 | 3 | 2 | ||||||||||||||
Expected return on assets | -13 | -13 | -2 | -3 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost | ― | ― | ― | 1 | ||||||||||||||
Actuarial loss | 1 | 3 | ― | ― | ||||||||||||||
Settlements and special termination benefits | ― | 1 | 5 | ― | ||||||||||||||
Regulatory adjustment | 6 | 3 | 4 | 1 | ||||||||||||||
Total net periodic benefit cost | $ | 12 | $ | 11 | $ | 12 | $ | 3 | ||||||||||
Nine months ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Service cost | $ | 23 | $ | 24 | $ | 5 | $ | 6 | ||||||||||
Interest cost | 32 | 30 | 7 | 6 | ||||||||||||||
Expected return on assets | -41 | -39 | -8 | -7 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost | 1 | 1 | 2 | 3 | ||||||||||||||
Actuarial loss | 3 | 10 | ― | ― | ||||||||||||||
Settlements and special termination benefits | 2 | 1 | 5 | ― | ||||||||||||||
Regulatory adjustment | 7 | -3 | 1 | 1 | ||||||||||||||
Total net periodic benefit cost | $ | 27 | $ | 24 | $ | 12 | $ | 9 | ||||||||||
NET PERIODIC BENEFIT COST – SOCALGAS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
Three months ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Service cost | $ | 13 | $ | 17 | $ | 4 | $ | 5 | ||||||||||
Interest cost | 24 | 22 | 9 | 8 | ||||||||||||||
Expected return on assets | -26 | -24 | -12 | -12 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 2 | ― | -2 | -2 | ||||||||||||||
Actuarial loss | 1 | 6 | ― | ― | ||||||||||||||
Settlement | 4 | ― | ― | ― | ||||||||||||||
Regulatory adjustment | ― | -17 | 1 | 2 | ||||||||||||||
Total net periodic benefit cost | $ | 18 | $ | 4 | $ | ― | $ | 1 | ||||||||||
Nine months ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Service cost | $ | 45 | $ | 50 | $ | 12 | $ | 13 | ||||||||||
Interest cost | 75 | 68 | 28 | 26 | ||||||||||||||
Expected return on assets | -78 | -73 | -38 | -36 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 6 | 1 | -6 | -6 | ||||||||||||||
Actuarial loss | 5 | 23 | ― | 4 | ||||||||||||||
Settlement | 4 | ― | ― | ― | ||||||||||||||
Regulatory adjustment | -25 | -62 | 4 | 6 | ||||||||||||||
Total net periodic benefit cost | $ | 32 | $ | 7 | $ | ― | $ | 7 | ||||||||||
Contributions to Benefit Plans Table | ' | |||||||||||||||||
Sempra Energy | ||||||||||||||||||
(Dollars in millions) | Consolidated | SDG&E | SoCalGas | |||||||||||||||
Contributions through September 30, 2014: | ||||||||||||||||||
Pension plans | $ | 95 | $ | 28 | $ | 39 | ||||||||||||
Other postretirement benefit plans | 14 | 12 | ― | |||||||||||||||
Total expected contributions in 2014: | ||||||||||||||||||
Pension plans | $ | 128 | $ | 55 | $ | 40 | ||||||||||||
Other postretirement benefit plans | 16 | 14 | ― | |||||||||||||||
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, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Numerator: | ||||||||||||||||||
Earnings/Income attributable to common shares | $ | 348 | $ | 296 | $ | 864 | $ | 719 | ||||||||||
Denominator: | ||||||||||||||||||
Weighted-average common shares | ||||||||||||||||||
outstanding for basic EPS | 246,137 | 244,140 | 245,703 | 243,682 | ||||||||||||||
Dilutive effect of stock options, restricted | ||||||||||||||||||
stock awards and restricted stock units | 4,634 | 5,119 | 4,575 | 5,041 | ||||||||||||||
Weighted-average common shares | ||||||||||||||||||
outstanding for diluted EPS | 250,771 | 249,259 | 250,278 | 248,723 | ||||||||||||||
Earnings per share: | ||||||||||||||||||
Basic | $ | 1.41 | $ | 1.21 | $ | 3.52 | $ | 2.95 | ||||||||||
Diluted | 1.39 | 1.19 | 3.45 | 2.89 | ||||||||||||||
Earnings Per Share Ranking Table | ' | |||||||||||||||||
Four-Year Earnings Per Share Compound Annual Growth Rate | Number of Sempra Energy Common Shares Received for Each Performance-Based Restricted Stock Unit(1)(2) | |||||||||||||||||
8.0% or above | 2 | |||||||||||||||||
6.70% | 1.5 | |||||||||||||||||
4.40% | 1 | |||||||||||||||||
3.3% or below | ― | |||||||||||||||||
-1 | Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are deemed reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate. | |||||||||||||||||
-2 | If performance falls between the tiers shown above, we calculate the payout using linear interpolation. | |||||||||||||||||
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)(3) | |||||||||||||||||
90th percentile or above (2014 awards only) | 2 | |||||||||||||||||
75th percentile (maximum for awards prior to 2014) | 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 deemed reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate. | |||||||||||||||||
-3 | If performance falls between the tiers shown above, we calculate the payout using linear interpolation. | |||||||||||||||||
Capitalized Financing Costs Table | ' | |||||||||||||||||
CAPITALIZED FINANCING COSTS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
AFUDC related to debt | $ | 5 | $ | 6 | $ | 15 | $ | 17 | ||||||||||
AFUDC related to equity | 28 | 14 | 77 | 44 | ||||||||||||||
Other capitalized financing costs | 6 | 9 | 22 | 22 | ||||||||||||||
Total Sempra Energy Consolidated | $ | 39 | $ | 29 | $ | 114 | $ | 83 | ||||||||||
SDG&E: | ||||||||||||||||||
AFUDC related to debt | $ | 3 | $ | 4 | $ | 10 | $ | 12 | ||||||||||
AFUDC related to equity | 8 | 10 | 26 | 30 | ||||||||||||||
Total SDG&E | $ | 11 | $ | 14 | $ | 36 | $ | 42 | ||||||||||
SoCalGas: | ||||||||||||||||||
AFUDC related to debt | $ | 2 | $ | 2 | $ | 5 | $ | 5 | ||||||||||
AFUDC related to equity | 7 | 4 | 18 | 14 | ||||||||||||||
Total SoCalGas | $ | 9 | $ | 6 | $ | 23 | $ | 19 | ||||||||||
Changes in Components of Accumulated Comprehensive Income Table | ' | |||||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) | ||||||||||||||||||
SEMPRA ENERGY CONSOLIDATED | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension and Other | ||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||
Foreign | Total | |||||||||||||||||
Currency | Unamortized | Unamortized | Accumulated Other | |||||||||||||||
Translation | Net Actuarial | Prior Service | Financial | Comprehensive | ||||||||||||||
Adjustments | Gain (Loss) | Credit | Instruments | Income (Loss) | ||||||||||||||
Three months ended September 30, 2014 and 2013 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||
Balance as of June 30, 2014 | $ | -170 | $ | -65 | $ | ― | $ | -38 | $ | -273 | ||||||||
Other comprehensive loss before | ||||||||||||||||||
reclassifications | -100 | ― | ― | -2 | -102 | |||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income (loss) | ― | 5 | ― | -1 | 4 | |||||||||||||
Net other comprehensive income (loss) | -100 | 5 | ― | -3 | -98 | |||||||||||||
Balance as of September 30, 2014 | $ | -270 | $ | -60 | $ | ― | $ | -41 | $ | -371 | ||||||||
2013:00:00 | ||||||||||||||||||
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 | ||||||||
Nine months ended September 30, 2014 and 2013 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||
Balance as of December 31, 2013 | $ | -129 | $ | -73 | $ | ― | $ | -26 | $ | -228 | ||||||||
Other comprehensive loss before | ||||||||||||||||||
reclassifications | -141 | ― | ― | -28 | -169 | |||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | ― | 13 | ― | 13 | 26 | |||||||||||||
Net other comprehensive income (loss) | -141 | 13 | ― | -15 | -143 | |||||||||||||
Balance as of September 30, 2014 | $ | -270 | $ | -60 | $ | ― | $ | -41 | $ | -371 | ||||||||
2013:00:00 | ||||||||||||||||||
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 | ||||||||
-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. | |||||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) | ||||||||||||||||||
SAN DIEGO GAS & ELECTRIC COMPANY | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension and Other | ||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||
Total | ||||||||||||||||||
Unamortized | Unamortized | Accumulated Other | ||||||||||||||||
Net Actuarial | Prior Service | Comprehensive | ||||||||||||||||
Gain (Loss) | Credit | Income (Loss) | ||||||||||||||||
Three months ended September 30, 2014 and 2013 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||
Balance as of June 30, 2014 | $ | -9 | $ | 1 | $ | -8 | ||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | 1 | ― | 1 | |||||||||||||||
Net other comprehensive income | 1 | ― | 1 | |||||||||||||||
Balance as of September 30, 2014 | $ | -8 | $ | 1 | $ | -7 | ||||||||||||
2013:00:00 | ||||||||||||||||||
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 | ||||||||||||
Nine months ended September 30, 2014 and 2013 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||
Balance as of December 31, 2013 | $ | -10 | $ | 1 | $ | -9 | ||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | 2 | ― | 2 | |||||||||||||||
Net other comprehensive income | 2 | ― | 2 | |||||||||||||||
Balance as of September 30, 2014 | $ | -8 | $ | 1 | $ | -7 | ||||||||||||
2013:00:00 | ||||||||||||||||||
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 | ||||||||||||
-1 | All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. | |||||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) | ||||||||||||||||||
SOUTHERN CALIFORNIA GAS COMPANY | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension and Other | ||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||
Total | ||||||||||||||||||
Unamortized | Unamortized | Accumulated Other | ||||||||||||||||
Net Actuarial | Prior Service | Financial | Comprehensive | |||||||||||||||
Gain (Loss) | Credit | Instruments | Income (Loss) | |||||||||||||||
Three months ended September 30, 2014 and 2013 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||
Balance as of June 30, 2014 | $ | -5 | $ | 1 | $ | -14 | $ | -18 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | 2 | ― | ― | 2 | ||||||||||||||
Net other comprehensive income | 2 | ― | ― | 2 | ||||||||||||||
Balance as of September 30, 2014 | $ | -3 | $ | 1 | $ | -14 | $ | -16 | ||||||||||
2013:00:00 | ||||||||||||||||||
Balance as of June 30 and September 30, 2013 | $ | -4 | $ | 1 | $ | -14 | $ | -17 | ||||||||||
Nine months ended September 30, 2014 and 2013 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||
Balance as of December 31, 2013 | $ | -5 | $ | 1 | $ | -14 | $ | -18 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | 2 | ― | ― | 2 | ||||||||||||||
Net other comprehensive income | 2 | ― | ― | 2 | ||||||||||||||
Balance as of September 30, 2014 | $ | -3 | $ | 1 | $ | -14 | $ | -16 | ||||||||||
2013:00:00 | ||||||||||||||||||
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. | |||||||||||||||||
Reclassifications out of AOCI Table | ' | |||||||||||||||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Details about accumulated | Amounts reclassified | |||||||||||||||||
other comprehensive income (loss) | from accumulated other | Affected line item on Condensed | ||||||||||||||||
components | comprehensive income (loss) | Consolidated Statements of Operations | ||||||||||||||||
Three months ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate and foreign exchange instruments | $ | 8 | $ | 3 | Interest Expense | |||||||||||||
Interest rate instruments | -5 | ― | Gain on Sale of Equity Interests and Assets | |||||||||||||||
Interest rate instruments | 2 | 3 | Equity Earnings, Before Income Tax | |||||||||||||||
Commodity contracts not subject | Revenues: Energy-Related | |||||||||||||||||
to rate recovery | -2 | ― | Businesses | |||||||||||||||
Total before income tax | 3 | 6 | ||||||||||||||||
-1 | -2 | Income Tax Expense | ||||||||||||||||
Net of income tax | 2 | 4 | ||||||||||||||||
-3 | -2 | Earnings Attributable to Noncontrolling Interests | ||||||||||||||||
$ | -1 | $ | 2 | |||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||
Amortization of actuarial loss | $ | 8 | $ | 5 | -1 | |||||||||||||
-3 | -2 | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | 5 | $ | 3 | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 4 | $ | 5 | ||||||||||||||
SDG&E: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 3 | $ | 2 | Interest Expense | |||||||||||||
-3 | -2 | Earnings Attributable to Noncontrolling Interest | ||||||||||||||||
$ | ― | $ | ― | |||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||
Amortization of actuarial loss | $ | 1 | $ | 2 | -1 | |||||||||||||
― | -1 | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | 1 | $ | 1 | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 1 | $ | 1 | ||||||||||||||
SoCalGas: | ||||||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||
Amortization of actuarial loss | $ | 4 | $ | ― | -1 | |||||||||||||
-2 | ― | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | 2 | $ | ― | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 2 | $ | ― | ||||||||||||||
-1 | Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above). | |||||||||||||||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Details about accumulated | Amount reclassified | |||||||||||||||||
other comprehensive income (loss) | from accumulated other | Affected line item on Condensed | ||||||||||||||||
components | comprehensive income (loss) | Consolidated Statements of Operations | ||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Foreign currency translation adjustments | $ | ― | $ | 270 | Equity Earnings, Net of Income Tax(1) | |||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate and foreign exchange instruments | $ | 17 | $ | 9 | Interest Expense | |||||||||||||
Interest rate instruments | -3 | ― | Gain on Sale of Equity Interests and Assets | |||||||||||||||
Interest rate instruments | 7 | 7 | Equity Earnings, Before Income Tax | |||||||||||||||
Commodity contracts not subject to | Revenues: Energy-Related | |||||||||||||||||
rate recovery | 8 | -5 | Businesses | |||||||||||||||
Total before income tax | 29 | 11 | ||||||||||||||||
-8 | -1 | Income Tax Expense | ||||||||||||||||
Net of income tax | 21 | 10 | ||||||||||||||||
-8 | -6 | Earnings Attributable to Noncontrolling Interests | ||||||||||||||||
$ | 13 | $ | 4 | |||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||
Amortization of actuarial loss | $ | 21 | $ | 12 | -2 | |||||||||||||
-8 | -5 | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | 13 | $ | 7 | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 26 | $ | 281 | ||||||||||||||
SDG&E: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 8 | $ | 6 | Interest Expense | |||||||||||||
-8 | -6 | Earnings Attributable to Noncontrolling Interest | ||||||||||||||||
$ | ― | $ | ― | |||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||
Amortization of actuarial loss | $ | 3 | $ | 3 | -2 | |||||||||||||
-1 | -1 | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | 2 | $ | 2 | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 2 | $ | 2 | ||||||||||||||
SoCalGas: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | ― | $ | 1 | Interest Expense | |||||||||||||
― | ― | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | ― | $ | 1 | ||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||
Amortization of actuarial loss | $ | 4 | $ | ― | -2 | |||||||||||||
-2 | ― | Income Tax Expense | ||||||||||||||||
Net of income tax | $ | 2 | $ | ― | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 2 | $ | 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). | |||||||||||||||||
Shareholders' Equity and Noncontrolling Interests Table | ' | |||||||||||||||||
SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS ― SEMPRA ENERGY CONSOLIDATED | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Sempra Energy | Non- | |||||||||||||||||
Shareholders’ | controlling | Total | ||||||||||||||||
Equity | Interests | Equity | ||||||||||||||||
Balance at December 31, 2013 | $ | 11,008 | $ | 842 | $ | 11,850 | ||||||||||||
Comprehensive income | 722 | 66 | 788 | |||||||||||||||
Preferred dividends of subsidiary | -1 | ― | -1 | |||||||||||||||
Share-based compensation expense | 35 | ― | 35 | |||||||||||||||
Common stock dividends declared | -486 | ― | -486 | |||||||||||||||
Issuance of common stock | 71 | ― | 71 | |||||||||||||||
Repurchase of common stock | -38 | ― | -38 | |||||||||||||||
Tax benefit related to share-based compensation | 22 | ― | 22 | |||||||||||||||
Equity contributed by noncontrolling interest | ― | 1 | 1 | |||||||||||||||
Distributions to noncontrolling interests | ― | -85 | -85 | |||||||||||||||
Balance at September 30, 2014 | $ | 11,333 | $ | 824 | $ | 12,157 | ||||||||||||
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 | ||||||||||||
SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST ― SDG&E | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
SDG&E | Non- | |||||||||||||||||
Shareholder’s | controlling | Total | ||||||||||||||||
Equity | Interest | Equity | ||||||||||||||||
Balance at December 31, 2013 | $ | 4,628 | $ | 91 | $ | 4,719 | ||||||||||||
Comprehensive income | 381 | 23 | 404 | |||||||||||||||
Distributions to noncontrolling interest | ― | -37 | -37 | |||||||||||||||
Balance at September 30, 2014 | $ | 5,009 | $ | 77 | $ | 5,086 | ||||||||||||
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 | ||||||||||||
SHAREHOLDERS' EQUITY ― SOCALGAS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
SoCalGas | ||||||||||||||||||
Shareholders' | ||||||||||||||||||
Equity | ||||||||||||||||||
Balance at December 31, 2013 | $ | 2,549 | ||||||||||||||||
Comprehensive income | 259 | |||||||||||||||||
Preferred stock dividends declared | -1 | |||||||||||||||||
Balance at September 30, 2014 | $ | 2,807 | ||||||||||||||||
Balance at December 31, 2012 | $ | 2,235 | ||||||||||||||||
Comprehensive income | 268 | |||||||||||||||||
Preferred stock dividends declared | -1 | |||||||||||||||||
Common stock dividends declared | -50 | |||||||||||||||||
Balance at September 30, 2013 | $ | 2,452 | ||||||||||||||||
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, | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
SDG&E: | ||||||||||||||||||
Current: | ||||||||||||||||||
Due from various affiliates | $ | 1 | $ | 1 | ||||||||||||||
Due to Sempra Energy | $ | 27 | $ | 25 | ||||||||||||||
Due to SoCalGas | 9 | ― | ||||||||||||||||
Due to various affiliates | ― | 14 | ||||||||||||||||
$ | 36 | $ | 39 | |||||||||||||||
Income taxes due from Sempra Energy(1) | $ | 27 | $ | 70 | ||||||||||||||
SoCalGas: | ||||||||||||||||||
Current: | ||||||||||||||||||
Due from Sempra Energy(2) | $ | 265 | $ | ― | ||||||||||||||
Due from SDG&E | 9 | ― | ||||||||||||||||
Due from various affiliates | ― | 21 | ||||||||||||||||
$ | 274 | $ | 21 | |||||||||||||||
Due to Sempra Energy | $ | ― | $ | 16 | ||||||||||||||
Income taxes due from Sempra Energy(1) | $ | 21 | $ | 18 | ||||||||||||||
-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 separate returns. | |||||||||||||||||
-2 | Net receivable includes a loan to Sempra Energy of $281 million at September 30, 2014 at an interest rate of 0.08 percent. | |||||||||||||||||
Revenues From Unconsolidated Affiliates at SDG&E and SoCalGas Table | ' | |||||||||||||||||
REVENUES FROM UNCONSOLIDATED AFFILIATES AT SDG&E AND SOCALGAS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
SDG&E | $ | 2 | $ | 3 | $ | 8 | $ | 8 | ||||||||||
SoCalGas | 17 | 17 | 51 | 48 | ||||||||||||||
Other Income and Expense Table | ' | |||||||||||||||||
OTHER INCOME, NET | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Allowance for equity funds used during construction | $ | 28 | $ | 14 | $ | 77 | $ | 44 | ||||||||||
Investment (losses) gains(1) | -3 | -6 | 20 | 16 | ||||||||||||||
(Losses) gains on interest rate and foreign exchange instruments, net | -6 | 4 | 3 | 17 | ||||||||||||||
Regulatory interest, net(2) | 2 | 1 | 5 | 3 | ||||||||||||||
Sundry, net | 8 | 3 | 13 | -1 | ||||||||||||||
Total | $ | 29 | $ | 16 | $ | 118 | $ | 79 | ||||||||||
SDG&E: | ||||||||||||||||||
Allowance for equity funds used during construction | $ | 8 | $ | 10 | $ | 26 | $ | 30 | ||||||||||
Regulatory interest, net(2) | 2 | 1 | 5 | 3 | ||||||||||||||
Sundry, net | -1 | -1 | -2 | -3 | ||||||||||||||
Total | $ | 9 | $ | 10 | $ | 29 | $ | 30 | ||||||||||
SoCalGas: | ||||||||||||||||||
Allowance for equity funds used during construction | $ | 7 | $ | 4 | $ | 18 | $ | 14 | ||||||||||
Sundry, net | -1 | -2 | -5 | -5 | ||||||||||||||
Total | $ | 6 | $ | 2 | $ | 13 | $ | 9 | ||||||||||
-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) | ||||||||||||||||||
Effective | Effective | |||||||||||||||||
Income Tax | Income | Income Tax | Income | |||||||||||||||
Expense | Tax Rate | Expense | Tax Rate | |||||||||||||||
Three months ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Sempra Energy Consolidated | $ | 71 | 16 | % | $ | 117 | 27 | % | ||||||||||
SDG&E | 65 | 28 | 84 | 38 | ||||||||||||||
SoCalGas | 44 | 31 | 38 | 27 | ||||||||||||||
Nine months ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Sempra Energy Consolidated | $ | 291 | 24 | % | $ | 327 | 30 | % | ||||||||||
SDG&E | 217 | 35 | 147 | 33 | ||||||||||||||
SoCalGas | 110 | 30 | 107 | 29 | ||||||||||||||
Variable Interest Entity Table | ' | |||||||||||||||||
AMOUNTS ASSOCIATED WITH OTAY MESA VIE | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Operating revenues | ||||||||||||||||||
Electric | $ | ― | $ | -4 | $ | ― | $ | ― | ||||||||||
Natural gas | ― | ― | ― | ― | ||||||||||||||
Total operating revenues | ― | -4 | ― | ― | ||||||||||||||
Operating expenses | ||||||||||||||||||
Cost of electric fuel and purchased power | -27 | -27 | -67 | -65 | ||||||||||||||
Operation and maintenance | 3 | 7 | 13 | 33 | ||||||||||||||
Depreciation and amortization | 7 | 7 | 21 | 20 | ||||||||||||||
Total operating expenses | -17 | -13 | -33 | -12 | ||||||||||||||
Operating income | 17 | 9 | 33 | 12 | ||||||||||||||
Interest expense | -5 | -4 | -13 | -11 | ||||||||||||||
Income before income taxes/Net income | 12 | 5 | 20 | 1 | ||||||||||||||
Earnings attributable to noncontrolling interest | -12 | -5 | -20 | -1 | ||||||||||||||
Earnings | $ | ― | $ | ― | $ | ― | $ | ― | ||||||||||
Ownership Interests Held By Others Table | ' | |||||||||||||||||
OTHER NONCONTROLLING INTERESTS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Percent Ownership Held by Others | 30-Sep-14 | 31-Dec-13 | ||||||||||||||||
SDG&E: | ||||||||||||||||||
Otay Mesa VIE | 100 | % | $ | 77 | $ | 91 | ||||||||||||
Sempra South American Utilities: | ||||||||||||||||||
Chilquinta Energía subsidiaries(1) | 23.6 – 43.4 | 23 | 27 | |||||||||||||||
Luz del Sur | 20.2 | 219 | 222 | |||||||||||||||
Tecsur | 9.8 | 3 | 3 | |||||||||||||||
Sempra Mexico: | ||||||||||||||||||
IEnova | 18.9 | 444 | 442 | |||||||||||||||
Sempra Natural Gas: | ||||||||||||||||||
Bay Gas Storage, Ltd. | 9.1 | 23 | 22 | |||||||||||||||
Liberty Gas Storage, LLC | 25 | 14 | 14 | |||||||||||||||
Southern Gas Transmission Company | 49 | 1 | 1 | |||||||||||||||
Total Sempra Energy | $ | 804 | $ | 822 | ||||||||||||||
-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-14 | 31-Dec-13 | 30-Sep-14 | 31-Dec-13 | 30-Sep-14 | 31-Dec-13 | 30-Sep-14 | 31-Dec-13 | |||||||||||
SDG&E | $ | 6 | $ | 3 | $ | ― | $ | ― | $ | 64 | $ | 83 | $ | 70 | $ | 86 | ||
SoCalGas | 192 | 42 | ― | ― | 29 | 27 | 221 | 69 | ||||||||||
Sempra South American | ||||||||||||||||||
Utilities | ― | ― | ― | ― | 36 | 40 | 36 | 40 | ||||||||||
Sempra Mexico | ― | ― | 6 | 3 | 9 | 9 | 15 | 12 | ||||||||||
Sempra Renewables | ― | ― | ― | ― | 3 | 2 | 3 | 2 | ||||||||||
Sempra Natural Gas | 121 | 68 | 5 | 5 | 1 | 5 | 127 | 78 | ||||||||||
Sempra Energy | ||||||||||||||||||
Consolidated | $ | 319 | $ | 113 | $ | 11 | $ | 8 | $ | 142 | $ | 166 | $ | 472 | $ | 287 | ||
Asset Retirement Obligations Table | ' | |||||||||||||||||
CHANGES IN ASSET RETIREMENT OBLIGATIONS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Sempra Energy | ||||||||||||||||||
Consolidated | SDG&E | SoCalGas | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at January 1(1) | $ | 2,152 | $ | 2,056 | $ | 913 | $ | 741 | $ | 1,199 | $ | 1,253 | ||||||
Accretion expense | 73 | 74 | 33 | 35 | 38 | 37 | ||||||||||||
Liabilities incurred | 3 | 4 | ― | ― | ― | ― | ||||||||||||
Reclassification(2) | -6 | ― | ― | ― | ― | ― | ||||||||||||
Payments | -15 | -1 | -15 | ― | ― | ― | ||||||||||||
Revisions, GRC-related(3) | ― | -135 | ― | -30 | ― | -105 | ||||||||||||
Revisions, other(4)(5) | -34 | 181 | -59 | 207 | 25 | ― | ||||||||||||
Balance at September 30(1) | $ | 2,173 | $ | 2,179 | $ | 872 | $ | 953 | $ | 1,262 | $ | 1,185 | ||||||
-1 | The current portions of the obligations are included in Other Current Liabilities on the Condensed Consolidated Balance Sheets. | |||||||||||||||||
-2 | Reclassification to liability held for sale - asset retirement obligation which is included in Other Current Liabilities on the Condensed Consolidated Balance Sheets, as we discuss in "Sempra Natural Gas – Asset Held for Sale, Power Plant" in Note 3 above. | |||||||||||||||||
-3 | The decreases in asset retirement obligations in 2013 at SDG&E and SoCalGas were 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 included increases in asset service lives ranging from 4 percent to 6 percent, partially offset by a higher estimated cost of removal. | |||||||||||||||||
-4 | The decrease in asset retirement obligations in 2014 at SDG&E is due to revised estimates in an updated decommissioning cost study for the San Onofre Nuclear Generating Station, which we discuss in Note 9. The increase in asset retirement obligations in 2014 at SoCalGas is related to a change in estimates. | |||||||||||||||||
-5 | 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, 2014 | ||||||||||||
Derivative Financial Instruments (Tables) [Abstract] | ' | |||||||||||
Commodity Derivative Volumes Table | ' | |||||||||||
NET ENERGY DERIVATIVE VOLUMES | ||||||||||||
Segment and Commodity | 30-Sep-14 | 31-Dec-13 | ||||||||||
California Utilities: | ||||||||||||
SDG&E: | ||||||||||||
Natural gas | 43 million MMBtu | 43 million MMBtu | -1 | |||||||||
Congestion revenue rights | 27 million MWh | 33 million MWh | -2 | |||||||||
SoCalGas - natural gas | ― | 2 million MMBtu | ||||||||||
Energy-Related Businesses: | ||||||||||||
Sempra Natural Gas: | ||||||||||||
Electric power | ― | 1 million MWh | ||||||||||
Natural gas | 31 million MMBtu | 15 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-14 | 31-Dec-13 | |||||||||||
Notional Debt | Maturities | Notional Debt | Maturities | |||||||||
Sempra Energy Consolidated: | ||||||||||||
Cash flow hedges(1) | $ | 404 | 2014-2028 | $ | 413 | 2014-2028 | ||||||
Fair value hedges | 300 | 2016 | 300 | 2016 | ||||||||
SDG&E: | ||||||||||||
Cash flow hedge(1) | 327 | 2019 | 335 | 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-14 | ||||||||||||
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) | $ | 12 | $ | 7 | $ | -17 | $ | -77 | ||||
Commodity contracts not subject to rate recovery | 1 | ― | ― | ― | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Interest rate and foreign exchange instruments | 8 | 24 | -7 | -20 | ||||||||
Commodity contracts not subject to rate recovery | 39 | 10 | -36 | -7 | ||||||||
Associated offsetting commodity contracts | -32 | -7 | 32 | 7 | ||||||||
Associated offsetting cash collateral | ― | ― | 1 | ― | ||||||||
Commodity contracts subject to rate recovery | 14 | 82 | -13 | -6 | ||||||||
Associated offsetting commodity contracts | -4 | -2 | 4 | 2 | ||||||||
Associated offsetting cash collateral | ― | ― | 3 | ― | ||||||||
Net amounts presented on the balance sheet | 38 | 114 | -33 | -101 | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
not subject to rate recovery | 15 | ― | ― | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
subject to rate recovery | 30 | ― | ― | ― | ||||||||
Total(4) | $ | 83 | $ | 114 | $ | -33 | $ | -101 | ||||
SDG&E: | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate instruments(3) | $ | ― | $ | ― | $ | -16 | $ | -32 | ||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery | 11 | 82 | -11 | -6 | ||||||||
Associated offsetting commodity contracts | -2 | -2 | 2 | 2 | ||||||||
Associated offsetting cash collateral | ― | ― | 3 | ― | ||||||||
Net amounts presented on the balance sheet | 9 | 80 | -22 | -36 | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
not subject to rate recovery | 1 | ― | ― | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
subject to rate recovery | 28 | ― | ― | ― | ||||||||
Total(4) | $ | 38 | $ | 80 | $ | -22 | $ | -36 | ||||
SoCalGas: | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery | $ | 3 | $ | ― | $ | -2 | $ | ― | ||||
Associated offsetting commodity contracts | -2 | ― | 2 | ― | ||||||||
Net amounts presented on the balance sheet | 1 | ― | ― | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
not subject to rate recovery | 2 | ― | ― | ― | ||||||||
Additional cash collateral 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 | Normal purchase contracts previously measured at fair value are excluded. | |||||||||||
DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(Dollars in millions) | ||||||||||||
31-Dec-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) | $ | 14 | $ | 12 | $ | -18 | $ | -75 | ||||
Derivatives not designated as hedging instruments: | ||||||||||||
Interest rate and foreign exchange instruments | 8 | 22 | -7 | -17 | ||||||||
Commodity contracts not subject to rate recovery | 47 | 7 | -51 | -5 | ||||||||
Associated offsetting commodity contracts | -43 | -5 | 43 | 5 | ||||||||
Associated offsetting cash collateral | ― | ― | 1 | ― | ||||||||
Commodity contracts subject to rate recovery | 35 | 72 | -10 | -8 | ||||||||
Associated offsetting commodity contracts | -3 | -2 | 3 | 2 | ||||||||
Net amounts presented on the balance sheet | 58 | 106 | -39 | -98 | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
not subject to rate recovery | 17 | ― | ― | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
subject to rate recovery | 31 | ― | ― | ― | ||||||||
Total(4) | $ | 106 | $ | 106 | $ | -39 | $ | -98 | ||||
SDG&E: | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate instruments(3) | $ | ― | $ | ― | $ | -16 | $ | -39 | ||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery | 34 | 72 | -9 | -8 | ||||||||
Associated offsetting commodity contracts | -3 | -2 | 3 | 2 | ||||||||
Net amounts presented on the balance sheet | 31 | 70 | -22 | -45 | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
not subject to rate recovery | 1 | ― | ― | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
subject to rate recovery | 29 | ― | ― | ― | ||||||||
Total(4) | $ | 61 | $ | 70 | $ | -22 | $ | -45 | ||||
SoCalGas: | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery | $ | 1 | $ | ― | $ | -1 | $ | ― | ||||
Net amounts presented on the balance sheet | 1 | ― | -1 | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
not subject to rate recovery | 2 | ― | ― | ― | ||||||||
Additional cash collateral for commodity contracts | ||||||||||||
subject to rate recovery | 2 | ― | ― | ― | ||||||||
Total | $ | 5 | $ | ― | $ | -1 | $ | ― | ||||
-1 | Included in Current Assets: Other for SoCalGas. | |||||||||||
-2 | Included in Current Liabilities: Other for SoCalGas. | |||||||||||
-3 | Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. | |||||||||||
-4 | Normal purchase contracts previously measured at fair value are excluded. | |||||||||||
Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table | ' | |||||||||||
FAIR VALUE HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Dollars in millions) | ||||||||||||
Gain (loss) on derivatives recognized in earnings | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
Location | 2014 | 2013 | 2014 | 2013 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate instruments | Interest Expense | $ | 1 | $ | 2 | $ | 6 | $ | 6 | |||
Interest rate instruments | Other Income, Net | -1 | 1 | ― | -4 | |||||||
Total(1) | $ | ― | $ | 3 | $ | 6 | $ | 2 | ||||
-1 | There were negligible gains from hedge ineffectiveness on these swaps for the three-month period, and $9 million of gains from hedge ineffectiveness for the nine-month period ended September 30, 2014, respectively. All other changes in the fair value of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt and recorded in Other Income, Net. There was no hedge ineffectiveness in 2013. | |||||||||||
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, | |||||||||||
2014 | 2013 | Location | 2014 | 2013 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate and foreign | ||||||||||||
exchange instruments(1) | $ | -5 | $ | -8 | Interest Expense | $ | -8 | $ | -3 | |||
Gain on Sale of Equity | ||||||||||||
Interest rate instruments | 5 | ― | Interests and Assets | 5 | ― | |||||||
Equity Earnings, | ||||||||||||
Interest rate instruments | -4 | -3 | Before Income Tax | -2 | -3 | |||||||
Commodity contracts not subject | Revenues: Energy-Related | |||||||||||
to rate recovery | 1 | 1 | Businesses | 2 | ― | |||||||
Total(2) | $ | -3 | $ | -10 | $ | -3 | $ | -6 | ||||
SDG&E: | ||||||||||||
Interest rate instruments(1)(2) | $ | 1 | $ | -3 | Interest Expense | $ | -3 | $ | -2 | |||
Nine months ended September 30, | Nine months ended September 30, | |||||||||||
2014 | 2013 | Location | 2014 | 2013 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate and foreign | ||||||||||||
exchange instruments(1) | $ | -15 | $ | -3 | Interest Expense | $ | -17 | $ | -9 | |||
Gain on Sale of Equity | ||||||||||||
Interest rate instruments | 3 | ― | Interests and Assets | 3 | ― | |||||||
Equity Earnings, | ||||||||||||
Interest rate instruments | -34 | 11 | Before Income Tax | -7 | -7 | |||||||
Commodity contracts not subject | Revenues: Energy-Related | |||||||||||
to rate recovery | -5 | 5 | Businesses | -8 | 5 | |||||||
Total(2) | $ | -51 | $ | 13 | $ | -29 | $ | -11 | ||||
SDG&E: | ||||||||||||
Interest rate instruments(1)(2) | $ | -5 | $ | 8 | Interest Expense | $ | -8 | $ | -6 | |||
SoCalGas: | ||||||||||||
Interest rate instruments | $ | ― | $ | ― | Interest Expense | $ | ― | $ | -1 | |||
-1 | Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. | |||||||||||
-2 | There was a negligible amount of ineffectiveness related to these hedges in 2014 and 2013. | |||||||||||
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 endedSeptember 30, | Nine months ended September 30, | |||||||||||
Location | 2014 | 2013 | 2014 | 2013 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate and foreign exchange | ||||||||||||
instruments | Other Income, Net | $ | -6 | $ | 4 | $ | -6 | $ | 17 | |||
Foreign exchange instruments | Equity Earnings, | |||||||||||
Net of Income Tax | -2 | ― | -4 | -3 | ||||||||
Commodity contracts not subject | Revenues: Energy-Related | |||||||||||
to rate recovery | Businesses | 3 | 1 | 2 | 2 | |||||||
Commodity contracts not subject | Cost of Natural Gas, Electric Fuel | |||||||||||
to rate recovery | and Purchased Power | 1 | ― | 3 | ― | |||||||
Commodity contracts subject | Cost of Electric Fuel | |||||||||||
to rate recovery | and Purchased Power | -1 | ― | 19 | -9 | |||||||
Commodity contracts subject | ||||||||||||
to rate recovery | Cost of Natural Gas | 1 | 1 | 2 | ― | |||||||
Total | $ | -4 | $ | 6 | $ | 16 | $ | 7 | ||||
SDG&E: | ||||||||||||
Commodity contracts subject | Cost of Electric Fuel | |||||||||||
to rate recovery | and Purchased Power | $ | -1 | $ | ― | $ | 19 | $ | -9 | |||
SoCalGas: | ||||||||||||
Commodity contracts subject | ||||||||||||
to rate recovery | Cost of Natural Gas | $ | 1 | $ | 1 | $ | 2 | $ | ― | |||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Fair Value Measurements (Tables) [Abstract] | ' | ||||||||||||
Recurring Fair Value Measures Table | ' | ||||||||||||
RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED | |||||||||||||
(Dollars in millions) | |||||||||||||
Fair value at September 30, 2014 | |||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 637 | $ | ― | $ | ― | $ | ― | $ | 637 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 56 | 47 | ― | ― | 103 | ||||||||
Municipal bonds | ― | 121 | ― | ― | 121 | ||||||||
Other securities | ― | 200 | ― | ― | 200 | ||||||||
Total debt securities | 56 | 368 | ― | ― | 424 | ||||||||
Total nuclear decommissioning trusts(2) | 693 | 368 | ― | ― | 1,061 | ||||||||
Interest rate and foreign exchange instruments | ― | 51 | ― | ― | 51 | ||||||||
Commodity contracts not subject to rate recovery | 7 | 4 | ― | 15 | 26 | ||||||||
Commodity contracts subject to rate recovery | ― | 3 | 87 | 30 | 120 | ||||||||
Total | $ | 700 | $ | 426 | $ | 87 | $ | 45 | $ | 1,258 | |||
Liabilities: | |||||||||||||
Interest rate and foreign exchange instruments | $ | ― | $ | 121 | $ | ― | $ | ― | $ | 121 | |||
Commodity contracts not subject to rate recovery | 2 | 3 | ― | -2 | 3 | ||||||||
Commodity contracts subject to rate recovery | 3 | 10 | ― | -3 | 10 | ||||||||
Total | $ | 5 | $ | 134 | $ | ― | $ | -5 | $ | 134 | |||
Fair value at December 31, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 614 | $ | ― | $ | ― | $ | ― | $ | 614 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 59 | 58 | ― | ― | 117 | ||||||||
Municipal bonds | ― | 111 | ― | ― | 111 | ||||||||
Other securities | ― | 153 | ― | ― | 153 | ||||||||
Total debt securities | 59 | 322 | ― | ― | 381 | ||||||||
Total nuclear decommissioning trusts(2) | 673 | 322 | ― | ― | 995 | ||||||||
Interest rate and foreign exchange instruments | ― | 56 | ― | ― | 56 | ||||||||
Commodity contracts not subject to rate recovery | 1 | 5 | ― | 17 | 23 | ||||||||
Commodity contracts subject to rate recovery | 2 | 1 | 99 | 31 | 133 | ||||||||
Total | $ | 676 | $ | 384 | $ | 99 | $ | 48 | $ | 1,207 | |||
Liabilities: | |||||||||||||
Interest rate and foreign exchange instruments | $ | ― | $ | 117 | $ | ― | $ | ― | $ | 117 | |||
Commodity contracts not subject to rate recovery | 4 | 8 | ― | -5 | 7 | ||||||||
Commodity contracts subject to rate recovery | ― | 13 | ― | ― | 13 | ||||||||
Total | $ | 4 | $ | 138 | $ | ― | $ | -5 | $ | 137 | |||
-1 | Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. | ||||||||||||
-2 | Excludes cash balances and cash equivalents. | ||||||||||||
RECURRING FAIR VALUE MEASURES – SDG&E | |||||||||||||
(Dollars in millions) | |||||||||||||
Fair value at September 30, 2014 | |||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 637 | $ | ― | $ | ― | $ | ― | $ | 637 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 56 | 47 | ― | ― | 103 | ||||||||
Municipal bonds | ― | 121 | ― | ― | 121 | ||||||||
Other securities | ― | 200 | ― | ― | 200 | ||||||||
Total debt securities | 56 | 368 | ― | ― | 424 | ||||||||
Total nuclear decommissioning trusts(2) | 693 | 368 | ― | ― | 1,061 | ||||||||
Commodity contracts not subject to rate recovery | ― | ― | ― | 1 | 1 | ||||||||
Commodity contracts subject to rate recovery | ― | 2 | 87 | 28 | 117 | ||||||||
Total | $ | 693 | $ | 370 | $ | 87 | $ | 29 | $ | 1,179 | |||
Liabilities: | |||||||||||||
Interest rate instruments | $ | ― | $ | 48 | $ | ― | $ | ― | $ | 48 | |||
Commodity contracts subject to rate recovery | 3 | 10 | ― | -3 | 10 | ||||||||
Total | $ | 3 | $ | 58 | $ | ― | $ | -3 | $ | 58 | |||
Fair value at December 31, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 614 | $ | ― | $ | ― | $ | ― | $ | 614 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 59 | 58 | ― | ― | 117 | ||||||||
Municipal bonds | ― | 111 | ― | ― | 111 | ||||||||
Other securities | ― | 153 | ― | ― | 153 | ||||||||
Total debt securities | 59 | 322 | ― | ― | 381 | ||||||||
Total nuclear decommissioning trusts(2) | 673 | 322 | ― | ― | 995 | ||||||||
Commodity contracts not subject to rate recovery | ― | ― | ― | 1 | 1 | ||||||||
Commodity contracts subject to rate recovery | 1 | 1 | 99 | 29 | 130 | ||||||||
Total | $ | 674 | $ | 323 | $ | 99 | $ | 30 | $ | 1,126 | |||
Liabilities: | |||||||||||||
Interest rate instruments | $ | ― | $ | 55 | $ | ― | $ | ― | $ | 55 | |||
Commodity contracts subject to rate recovery | ― | 12 | ― | ― | 12 | ||||||||
Total | $ | ― | $ | 67 | $ | ― | $ | ― | $ | 67 | |||
-1 | Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. | ||||||||||||
-2 | Excludes cash balances and cash equivalents. | ||||||||||||
RECURRING FAIR VALUE MEASURES – SOCALGAS | |||||||||||||
(Dollars in millions) | |||||||||||||
Fair value at September 30, 2014 | |||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||
Assets: | |||||||||||||
Commodity contracts not subject to rate recovery | $ | ― | $ | ― | $ | ― | $ | 2 | $ | 2 | |||
Commodity contracts subject to rate recovery | ― | 1 | ― | 2 | 3 | ||||||||
Total | $ | ― | $ | 1 | $ | ― | $ | 4 | $ | 5 | |||
Liabilities: | |||||||||||||
Commodity contracts subject to rate recovery | $ | ― | $ | ― | $ | ― | $ | ― | $ | ― | |||
Total | $ | ― | $ | ― | $ | ― | $ | ― | $ | ― | |||
Fair value at December 31, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||
Assets: | |||||||||||||
Commodity contracts not subject to rate recovery | $ | ― | $ | ― | $ | ― | $ | 2 | $ | 2 | |||
Commodity contracts subject to rate recovery | 1 | ― | ― | 2 | 3 | ||||||||
Total | $ | 1 | $ | ― | $ | ― | $ | 4 | $ | 5 | |||
Liabilities: | |||||||||||||
Commodity contracts subject to rate recovery | $ | ― | $ | 1 | $ | ― | $ | ― | $ | 1 | |||
Total | $ | ― | $ | 1 | $ | ― | $ | ― | $ | 1 | |||
-1 | Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. | ||||||||||||
NON-RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED | |||||||||||||
(Dollars in millions) | |||||||||||||
Estimated | Fair | ||||||||||||
Fair | Value | % of Fair Value | Range of | ||||||||||
Value | Valuation Technique | Hierarchy | Measurement | Inputs Used to Develop Measurement | Inputs | ||||||||
Investment in | |||||||||||||
Energía Sierra | |||||||||||||
Juárez | $ | 26(1) | Market approach | Level 2 | 100% | Equity sale offer price | 100% | ||||||
-1 | At measurement date of July 16, 2014. | ||||||||||||
Recurring Fair Value Measures Level 3 Rollforward Table | ' | ||||||||||||
LEVEL 3 RECONCILIATIONS | |||||||||||||
(Dollars in millions) | |||||||||||||
Three months ended September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at July 1 | $ | 85 | $ | 47 | |||||||||
Realized and unrealized gains | 3 | 1 | |||||||||||
Allocated transmission instruments | 9 | 15 | |||||||||||
Settlements | -10 | -6 | |||||||||||
Balance at September 30 | $ | 87 | $ | 57 | |||||||||
Change in unrealized gains or losses relating to | |||||||||||||
instruments still held at September 30 | $ | ― | $ | 2 | |||||||||
Nine months ended September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance as of January 1 | $ | 99 | $ | 61 | |||||||||
Realized and unrealized gains (losses) | 9 | -2 | |||||||||||
Allocated transmission instruments | 10 | 15 | |||||||||||
Settlements | -31 | -17 | |||||||||||
Balance as of September 30 | $ | 87 | $ | 57 | |||||||||
Change in unrealized gains or losses relating to | |||||||||||||
instruments still held at September 30 | $ | ― | $ | 1 | |||||||||
Fair Value of Financial Instruments Table | ' | ||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||
(Dollars in millions) | |||||||||||||
30-Sep-14 | |||||||||||||
Carrying | Fair Value | ||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||
Sempra Energy Consolidated: | |||||||||||||
Total long-term debt(1) | $ | 12,346 | $ | ― | $ | 12,626 | $ | 873 | $ | 13,499 | |||
Preferred stock of subsidiary | 20 | ― | 23 | ― | 23 | ||||||||
SDG&E: | |||||||||||||
Total long-term debt(2) | $ | 4,463 | $ | ― | $ | 4,463 | $ | 427 | $ | 4,890 | |||
SoCalGas: | |||||||||||||
Total long-term debt(3) | $ | 1,913 | $ | ― | $ | 2,053 | $ | ― | $ | 2,053 | |||
Preferred stock | 22 | ― | 24 | ― | 24 | ||||||||
31-Dec-13 | |||||||||||||
Carrying | Fair Value | ||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||
Sempra Energy Consolidated: | |||||||||||||
Total long-term debt(1) | $ | 12,022 | $ | ― | $ | 11,925 | $ | 751 | $ | 12,676 | |||
Preferred stock of subsidiary | 20 | ― | 20 | ― | 20 | ||||||||
SDG&E: | |||||||||||||
Total long-term debt(2) | $ | 4,386 | $ | ― | $ | 4,226 | $ | 335 | $ | 4,561 | |||
SoCalGas: | |||||||||||||
Total long-term debt(3) | $ | 1,413 | $ | ― | $ | 1,469 | $ | ― | $ | 1,469 | |||
Preferred stock | 22 | ― | 22 | ― | 22 | ||||||||
-1 | Before reductions for unamortized discount (net of premium) of $21 million and $17 million at September 30, 2014 and December 31, 2013, respectively, and excluding build-to-suit and capital leases of $300 million and $195 million at September 30, 2014 and December 31, 2013, respectively, and commercial paper classified as long-term debt of $200 million at December 31, 2013. 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 $10 million and $11 million at September 30, 2014 and December 31, 2013, respectively, and excluding capital leases of $235 million and $179 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||
-3 | Before reductions for unamortized discount of $7 million and $4 million at September 30, 2014 and December 31, 2013, respectively, and excluding capital leases of $2 million at December 31, 2013. |
NUCLEAR_PLANT_Tables
NUCLEAR PLANT (Tables) | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Schedule of Nuclear Decommissioning Trusts Investments [Abstract] | ' | |||||||||
Schedule of Nuclear Decommissioning Trusts Investments | ' | |||||||||
NUCLEAR DECOMMISSIONING TRUSTS | ||||||||||
(Dollars in millions) | ||||||||||
Gross | Gross | Estimated | ||||||||
Unrealized | Unrealized | Fair | ||||||||
Cost | Gains | Losses | Value | |||||||
At September 30, 2014: | ||||||||||
Debt securities: | ||||||||||
Debt securities issued by the U.S. Treasury and other | ||||||||||
U.S. government corporations and agencies(1) | $ | 99 | $ | 4 | $ | ― | $ | 103 | ||
Municipal bonds(2) | 114 | 7 | ― | 121 | ||||||
Other securities(3) | 198 | 6 | -4 | 200 | ||||||
Total debt securities | 411 | 17 | -4 | 424 | ||||||
Equity securities | 212 | 427 | -2 | 637 | ||||||
Cash and cash equivalents | 26 | ― | ― | 26 | ||||||
Total | $ | 649 | $ | 444 | $ | -6 | $ | 1,087 | ||
At December 31, 2013: | ||||||||||
Debt securities: | ||||||||||
Debt securities issued by the U.S. Treasury and other | ||||||||||
U.S. government corporations and agencies | $ | 116 | $ | 3 | $ | -2 | $ | 117 | ||
Municipal bonds | 110 | 2 | -1 | 111 | ||||||
Other securities | 155 | 3 | -5 | 153 | ||||||
Total debt securities | 381 | 8 | -8 | 381 | ||||||
Equity securities | 207 | 409 | -2 | 614 | ||||||
Cash and cash equivalents | 39 | ― | ― | 39 | ||||||
Total | $ | 627 | $ | 417 | $ | -10 | $ | 1,034 | ||
-1 | Maturity dates are 2016-2060 | |||||||||
-2 | Maturity dates are 2014-2062 | |||||||||
-3 | Maturity dates are 2014-2096 | |||||||||
Schedule of Sales of Securities By Nuclear Decommissioning Trusts [Abstract] | ' | |||||||||
Schedule of Sales of Securities By Nuclear Decommissioning Trusts | ' | |||||||||
SALES OF SECURITIES | ||||||||||
(Dollars in millions) | ||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
Proceeds from sales(1) | $ | 148 | $ | 181 | $ | 498 | $ | 507 | ||
Gross realized gains | 5 | 2 | 9 | 13 | ||||||
Gross realized losses | -3 | -8 | -8 | -15 | ||||||
(1) Excludes securities that are held to maturity. |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Segment Information (Tables) [Abstract] | ' | |||||||||||||||||
Segment Information Table | ' | |||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
REVENUES | ||||||||||||||||||
SDG&E | $ | 1,233 | 44 | % | $ | 1,063 | 42 | % | $ | 3,283 | 40 | % | $ | 3,066 | 39 | % | ||
SoCalGas | 855 | 30 | 807 | 32 | 2,857 | 35 | 2,694 | 34 | ||||||||||
Sempra South American Utilities | 379 | 14 | 364 | 14 | 1,147 | 14 | 1,119 | 14 | ||||||||||
Sempra Mexico | 234 | 8 | 188 | 7 | 621 | 7 | 519 | 7 | ||||||||||
Sempra Renewables | 10 | ― | 25 | 1 | 25 | ― | 76 | 1 | ||||||||||
Sempra Natural Gas | 252 | 9 | 212 | 8 | 748 | 9 | 683 | 9 | ||||||||||
Adjustments and eliminations | 1 | ― | ― | ― | -1 | ― | -2 | ― | ||||||||||
Intersegment revenues(1) | -149 | -5 | -108 | -4 | -392 | -5 | -303 | -4 | ||||||||||
Total | $ | 2,815 | 100 | % | $ | 2,551 | 100 | % | $ | 8,288 | 100 | % | $ | 7,852 | 100 | % | ||
INTEREST EXPENSE | ||||||||||||||||||
SDG&E | $ | 51 | $ | 50 | $ | 152 | $ | 147 | ||||||||||
SoCalGas | 17 | 17 | 50 | 52 | ||||||||||||||
Sempra South American Utilities | 7 | 8 | 24 | 20 | ||||||||||||||
Sempra Mexico | 5 | ― | 13 | 5 | ||||||||||||||
Sempra Renewables | 2 | 5 | 3 | 22 | ||||||||||||||
Sempra Natural Gas | 25 | 34 | 90 | 80 | ||||||||||||||
All other | 63 | 60 | 178 | 182 | ||||||||||||||
Intercompany eliminations | -26 | -37 | -92 | -95 | ||||||||||||||
Total | $ | 144 | $ | 137 | $ | 418 | $ | 413 | ||||||||||
INTEREST INCOME | ||||||||||||||||||
SDG&E | $ | ― | $ | ― | $ | ― | $ | 1 | ||||||||||
Sempra South American Utilities | 4 | 3 | 10 | 11 | ||||||||||||||
Sempra Mexico | 1 | ― | 2 | 1 | ||||||||||||||
Sempra Renewables | ― | 7 | ― | 14 | ||||||||||||||
Sempra Natural Gas | 24 | 26 | 87 | 57 | ||||||||||||||
All other | -1 | 2 | ― | 1 | ||||||||||||||
Intercompany eliminations | -22 | -33 | -84 | -70 | ||||||||||||||
Total | $ | 6 | $ | 5 | $ | 15 | $ | 15 | ||||||||||
DEPRECIATION AND AMORTIZATION | ||||||||||||||||||
SDG&E | $ | 134 | 46 | % | $ | 126 | 44 | % | $ | 395 | 46 | % | $ | 367 | 44 | % | ||
SoCalGas | 109 | 37 | 100 | 35 | 321 | 37 | 280 | 34 | ||||||||||
Sempra South American Utilities | 14 | 5 | 14 | 5 | 41 | 5 | 44 | 5 | ||||||||||
Sempra Mexico | 16 | 6 | 16 | 5 | 47 | 5 | 47 | 6 | ||||||||||
Sempra Renewables | 1 | ― | 5 | 2 | 4 | ― | 20 | 3 | ||||||||||
Sempra Natural Gas | 17 | 6 | 20 | 7 | 50 | 6 | 60 | 7 | ||||||||||
All other | 1 | ― | 5 | 2 | 8 | 1 | 10 | 1 | ||||||||||
Total | $ | 292 | 100 | % | $ | 286 | 100 | % | $ | 866 | 100 | % | $ | 828 | 100 | % | ||
INCOME TAX EXPENSE (BENEFIT) | ||||||||||||||||||
SDG&E | $ | 65 | $ | 84 | $ | 217 | $ | 147 | ||||||||||
SoCalGas | 44 | 38 | 110 | 107 | ||||||||||||||
Sempra South American Utilities | 26 | 16 | 59 | 50 | ||||||||||||||
Sempra Mexico | 13 | 16 | 37 | 44 | ||||||||||||||
Sempra Renewables | -16 | 9 | -35 | -8 | ||||||||||||||
Sempra Natural Gas | -31 | -4 | -22 | 35 | ||||||||||||||
All other | -30 | -42 | -75 | -48 | ||||||||||||||
Total | $ | 71 | $ | 117 | $ | 291 | $ | 327 | ||||||||||
SEGMENT INFORMATION (Continued) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
EQUITY EARNINGS (LOSSES) | ||||||||||||||||||
Earnings (losses) recorded before tax: | ||||||||||||||||||
Sempra Renewables | $ | 7 | $ | -10 | $ | 18 | $ | -12 | ||||||||||
Sempra Natural Gas | 15 | 13 | 44 | 33 | ||||||||||||||
Total | $ | 22 | $ | 3 | $ | 62 | $ | 21 | ||||||||||
Earnings (losses) recorded net of tax: | ||||||||||||||||||
Sempra South American Utilities | $ | -2 | $ | ― | $ | -4 | $ | -14 | ||||||||||
Sempra Mexico | 9 | 8 | 26 | 27 | ||||||||||||||
Total | $ | 7 | $ | 8 | $ | 22 | $ | 13 | ||||||||||
EARNINGS (LOSSES) | ||||||||||||||||||
SDG&E(2) | $ | 157 | 45 | % | $ | 129 | 44 | % | $ | 379 | 44 | % | $ | 285 | 40 | % | ||
SoCalGas(3) | 98 | 28 | 102 | 34 | 256 | 30 | 266 | 37 | ||||||||||
Sempra South American Utilities | 32 | 9 | 39 | 13 | 109 | 13 | 110 | 15 | ||||||||||
Sempra Mexico | 63 | 18 | 39 | 13 | 139 | 16 | 96 | 13 | ||||||||||
Sempra Renewables | 17 | 5 | 37 | 13 | 63 | 7 | 56 | 8 | ||||||||||
Sempra Natural Gas | 26 | 8 | -7 | -2 | 39 | 4 | 55 | 8 | ||||||||||
All other | -45 | -13 | -43 | -15 | -121 | -14 | -149 | -21 | ||||||||||
Total | $ | 348 | 100 | % | $ | 296 | 100 | % | $ | 864 | 100 | % | $ | 719 | 100 | % | ||
Nine months ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | ||||||||||||||||||
SDG&E | $ | 790 | 34 | % | $ | 679 | 38 | % | ||||||||||
SoCalGas | 764 | 33 | 521 | 29 | ||||||||||||||
Sempra South American Utilities | 126 | 5 | 120 | 7 | ||||||||||||||
Sempra Mexico | 262 | 11 | 280 | 16 | ||||||||||||||
Sempra Renewables | 174 | 8 | 119 | 7 | ||||||||||||||
Sempra Natural Gas | 192 | 8 | 65 | 3 | ||||||||||||||
All other | 12 | 1 | 1 | ― | ||||||||||||||
Total | $ | 2,320 | 100 | % | $ | 1,785 | 100 | % | ||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||
ASSETS | ||||||||||||||||||
SDG&E | $ | 15,975 | 41 | % | $ | 15,377 | 41 | % | ||||||||||
SoCalGas | 9,954 | 26 | 9,147 | 25 | ||||||||||||||
Sempra South American Utilities | 3,463 | 9 | 3,531 | 10 | ||||||||||||||
Sempra Mexico | 3,404 | 9 | 3,246 | 9 | ||||||||||||||
Sempra Renewables | 1,379 | 3 | 1,219 | 3 | ||||||||||||||
Sempra Natural Gas | 6,617 | 17 | 7,200 | 19 | ||||||||||||||
All other | 1,141 | 3 | 838 | 2 | ||||||||||||||
Intersegment receivables | -2,951 | -8 | -3,314 | -9 | ||||||||||||||
Total | $ | 38,982 | 100 | % | $ | 37,244 | 100 | % | ||||||||||
INVESTMENTS IN EQUITY METHOD INVESTEES | ||||||||||||||||||
Sempra South American Utilities | $ | -7 | $ | -3 | ||||||||||||||
Sempra Mexico | 427 | 379 | ||||||||||||||||
Sempra Renewables | 871 | 707 | ||||||||||||||||
Sempra Natural Gas | 342 | 329 | ||||||||||||||||
All other | 72 | 73 | ||||||||||||||||
Total | $ | 1,705 | $ | 1,485 | ||||||||||||||
-1 | Revenues for reportable segments include intersegment revenues of: | |||||||||||||||||
$2 million, $17 million, $23 million and $107 million for the three months ended September 30, 2014; $7 million, $51 million, $68 million and $266 million for the nine months ended September 30, 2014; $3 million, $17 million, $23 million and $65 million for the three months ended September 30, 2013; and $7 million, $48 million, $68 million and $180 million for the nine months ended September 30, 2013 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively. | ||||||||||||||||||
-2 | After preferred dividends and call premium on preferred stock for 2013. | |||||||||||||||||
-3 | After preferred dividends. |
SUBSEQUENT_EVENTS_Tables
SUBSEQUENT EVENTS (Tables) | 0 Months Ended | |||
Oct. 01, 2014 | ||||
Subsequent Event (Tables) [Abstract] | ' | |||
Subsequent Events Table | ' | |||
DECONSOLIDATION OF SUBSIDIARY | ||||
(Dollars in millions) | ||||
Cameron LNG, LLC | ||||
1-Oct-14 | ||||
Cash | $ | -6 | ||
Other current assets | -11 | |||
Property, plant and equipment, net | -1,022 | |||
Other assets | -30 | |||
Accounts payable and accrued expenses | 93 | |||
Equity method investment upon deconsolidation | $ | -976 | ||
RECENT_INVESTMENT_ACTIVITY_Det
RECENT INVESTMENT ACTIVITY (Details) (USD $) | 1 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||
Feb. 28, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 19, 2013 | Sep. 19, 2013 | Jul. 11, 2013 | Jul. 11, 2013 | Jul. 16, 2014 | Jul. 16, 2014 | Feb. 28, 2013 | Mar. 13, 2014 | Mar. 13, 2014 | 31-May-13 | |
Mesquite Solar 1 [Member] | Mesquite Solar 1 [Member] | Copper Mountain Solar 2 [Member] | Copper Mountain Solar 2 [Member] | Energia Sierra Juarez [Member] | Energia Sierra Juarez [Member] | Mesquite Power [Member] | Copper Mountain Solar 3 [Member] | Copper Mountain Solar 3 [Member] | California Solar Partnership [Member] | |||||
Recent Investment Activity (Details) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sempra Renewables' Equity Investment In Solar Projects | ' | ' | ' | $109,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deconsolidation of business [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale, net of transaction costs | ' | 94,000,000 | 168,000,000 | ' | 100,000,000 | ' | 68,000,000 | ' | 26,000,000 | ' | ' | 68,000,000 | ' | ' |
Cash | ' | -4,000,000 | ' | ' | ' | ' | ' | ' | -2,000,000 | ' | ' | -2,000,000 | ' | ' |
Other current assets | ' | -11,000,000 | ' | ' | ' | ' | ' | ' | -11,000,000 | ' | ' | 0 | ' | ' |
Property, plant and equipment, net | ' | -384,000,000 | -727,000,000 | ' | -461,000,000 | ' | -266,000,000 | ' | -137,000,000 | ' | ' | -247,000,000 | ' | ' |
Other assets | ' | -27,000,000 | -102,000,000 | ' | -72,000,000 | ' | -30,000,000 | ' | -16,000,000 | ' | ' | -11,000,000 | ' | ' |
Accounts payable and accrued expenses | ' | 92,000,000 | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | 82,000,000 | ' | ' |
Due to affiliate | ' | 39,000,000 | ' | ' | ' | ' | ' | ' | 39,000,000 | ' | ' | 0 | ' | ' |
Long-term debt including current portion | ' | 179,000,000 | 443,000,000 | ' | 297,000,000 | ' | 146,000,000 | ' | 82,000,000 | ' | ' | 97,000,000 | ' | ' |
Other liabilities | ' | 10,000,000 | 50,000,000 | ' | 31,000,000 | ' | 19,000,000 | ' | 7,000,000 | ' | ' | 3,000,000 | ' | ' |
Accumulated other comprehensive income | ' | -7,000,000 | ' | ' | ' | ' | ' | ' | -5,000,000 | ' | ' | -2,000,000 | ' | ' |
Gain on sale of equity interests | 74,000,000 | -46,000,000 | -40,000,000 | ' | -36,000,000 | ' | -4,000,000 | ' | -19,000,000 | ' | ' | -27,000,000 | ' | ' |
Equity method investments upon deconsolidation | ' | -65,000,000 | -208,000,000 | ' | -141,000,000 | ' | -67,000,000 | ' | -26,000,000 | ' | ' | -39,000,000 | ' | ' |
Transaction costs | ' | ' | ' | ' | 3,000,000 | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage in equity method investee | ' | ' | ' | ' | ' | 50.00% | ' | 50.00% | ' | 50.00% | ' | ' | 50.00% | 50.00% |
Proceeds from sale | ' | ' | ' | ' | 103,000,000 | ' | 71,000,000 | ' | ' | ' | 371,000,000 | ' | ' | ' |
Proceeds from sale, net of cash sold | ' | ' | ' | ' | ' | ' | ' | ' | 24,000,000 | ' | ' | 66,000,000 | ' | ' |
Gain on sale, after tax | ' | ' | ' | ' | 22,000,000 | ' | 2,000,000 | ' | 14,000,000 | ' | 44,000,000 | 16,000,000 | ' | ' |
Gain attributable to remeasurement, after tax | ' | ' | ' | ' | ' | ' | ' | ' | $7,000,000 | ' | ' | ' | ' | ' |
RECENT_INVESTMENT_ACTIVITY_3_D
RECENT INVESTMENT ACTIVITY 3 (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Recent Investment Activity (Details) [Abstract] | ' | ' | |
Property, plant and equipment, net | $290 | ' | |
Inventories | 3 | ' | |
Total assets held for sale | 293 | 0 | |
Liability held for sale - asset retirement obligation | -6 | [1] | ' |
Total assets held for sale, net | $287 | ' | |
[1] | Included in Other Current Liabilities on the Condensed Consolidated Balance Sheets. |
INVESTMENTS_IN_UNCONSOLIDATED_1
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Mar. 31, 2013 |
Solar Projects [Member] | Sodigas Sur [Member] | Sodigas Pampeana [Member] | ConEdison [Member] | Sodigas [Member] | |||||
Investment In Joint Venture Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions from RBS Sempra Commodities LLP | ' | $50 | ' | ' | ' | ' | ' | ' | ' |
Investment in RBS Sempra Commodities LLP | 73 | ' | 73 | ' | ' | ' | ' | ' | ' |
Equity earnings (losses) related to RBS Commodities | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sempra Renewables' Equity investments In Joint Ventures | 76 | 5 | 76 | 5 | 109 | ' | ' | ' | ' |
Equity Method Investment, Other than Temporary Impairment | ' | ' | ' | ' | ' | ' | ' | ' | 10 |
Equity Method Investment Other Than Temporary Impairment After Tax | ' | ' | ' | ' | ' | ' | ' | ' | 7 |
Ownership percentage in equity method investee | ' | ' | ' | ' | 50.00% | 43.00% | 43.00% | 50.00% | ' |
Pretax loss on sale of Argentina | ' | -7 | ' | ' | ' | ' | ' | ' | ' |
Aftertax loss on sale of Argentina | ' | -4 | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investments Upon Deconsolidation | ' | ' | -65 | -208 | ' | ' | ' | ' | ' |
Proceeds from sale of Argentina | ' | $13 | ' | ' | ' | ' | ' | ' | ' |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 |
Mesquite Solar 1 [Member] | Copper Mountain Solar 2 [Member] | ||||
U.S. Treasury Grants Receivable [Line Items] | ' | ' | ' | ' | ' |
Reduction of grants receivable due to sequestration | $23 | ' | ' | ' | ' |
Proceeds From U.S. Treasury Grants | ' | 0 | 238 | 164 | 74 |
Reduction in tax benefit due to sequestration | 5 | ' | ' | ' | ' |
Sequestration of U.S. Treasury grants receivable | ' | $0 | $23 | ' | ' |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Variable Interest Entities Disclosure [Abstract] | ' | ' | ' | ' | ' |
Equity of variable interest entity | $77 | ' | $77 | ' | $91 |
Secured debt of variable interest entity | 327 | ' | 327 | ' | ' |
Amounts Associated With Variable Interest Entities, Operating Revenues, Electric | 0 | -4 | 0 | 0 | ' |
Amounts Associated With Variable Interest Entities, Operating Revenues, Gas | 0 | 0 | 0 | 0 | ' |
Amounts Associated With Variable Interest Entities, Total Operating Revenues | 0 | -4 | 0 | 0 | ' |
Amounts Associated With Variable Interest Entities, Cost of Electric Fuel And Purchased Power | -27 | -27 | -67 | -65 | ' |
Amounts Associated With Variable Interest Entities, Operation And Maintenance | 3 | 7 | 13 | 33 | ' |
Amounts Associated With Variable Interest Entities, Depreciation And Amortization | 7 | 7 | 21 | 20 | ' |
Amounts Associated With Variable Interest Entities, Total Operating Expenses | -17 | -13 | -33 | -12 | ' |
Amounts Associated With Variable Interest Entities, Operating Income (Loss) | 17 | 9 | 33 | 12 | ' |
Amounts Associated With Variable Interest Entities, Interest Expense | -5 | -4 | -13 | -11 | ' |
Amounts Associated With Variable Interest Entities, Net Income (Loss) | 12 | 5 | 20 | 1 | ' |
Amounts Associated With Variable Interest Entities, (Earnings) Losses Attributable Noncontrolling Interests | -12 | -5 | -20 | -1 | ' |
Amounts Associated With Variable Interest Entities, Earnings | $0 | $0 | $0 | $0 | ' |
OTHER_FINANCIAL_DATA_GOODWILL_
OTHER FINANCIAL DATA - GOODWILL (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Goodwill [Line Items] | ' | ' | |
Goodwill, Beginning Balance | $951 | $1,024 | [1] |
Goodwill, Ending Balance | 951 | 1,024 | [1] |
Goodwill By Segment Parent And Other [Member] | ' | ' | |
Goodwill [Line Items] | ' | ' | |
Goodwill, Beginning Balance | 951 | 1,024 | |
Goodwill, Ending Balance | $951 | $1,024 | |
[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, 2014 | Sep. 30, 2013 | ||
Asset Retirement Obligations [Line Items] | ' | ' | ||
Asset Retirement Obligations, Balance as of January 1 | $2,152 | [1] | $2,056 | [1] |
Asset Retirement Obligation, Accretion Expense | 73 | 74 | ||
Asset Retirement Obligation, Liabilities Incurred | 3 | 4 | ||
Asset Retirement Obligation, Reclassification | -6 | [2] | 0 | [2] |
Asset Retirement Obligation, Payments | -15 | -1 | ||
Asset Retirement Obligation, Revisions, GRC- related | 0 | [3] | -135 | [3] |
Asset Retirement Obligation, Revisions, Other | -34 | [4],[5] | 181 | [4],[5] |
Asset Retirement Obligations, Balance as of June 30 | 2,173 | [1] | 2,179 | [1] |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Asset Retirement Obligations [Line Items] | ' | ' | ||
Asset Retirement Obligations, Balance as of January 1 | 913 | [1] | 741 | [1] |
Asset Retirement Obligation, Accretion Expense | 33 | 35 | ||
Asset Retirement Obligation, Liabilities Incurred | 0 | 0 | ||
Asset Retirement Obligation, Reclassification | 0 | [2] | 0 | [2] |
Asset Retirement Obligation, Payments | -15 | 0 | ||
Asset Retirement Obligation, Revisions, GRC- related | 0 | [3] | -30 | [3] |
Asset Retirement Obligation, Revisions, Other | -59 | [4],[5] | 207 | [4],[5] |
Asset Retirement Obligations, Balance as of June 30 | 872 | [1] | 953 | [1] |
Asset Retirement Obligations, Increase in Asset Service Lives, Beginning Rate | ' | 2.00% | [3] | |
Asset Retirement Obligations, Increase in Asset Service Lives, Ending Rate | ' | 7.00% | [3] | |
Southern California Gas Company [Member] | ' | ' | ||
Asset Retirement Obligations [Line Items] | ' | ' | ||
Asset Retirement Obligations, Balance as of January 1 | 1,199 | [1] | 1,253 | [1] |
Asset Retirement Obligation, Accretion Expense | 38 | 37 | ||
Asset Retirement Obligation, Liabilities Incurred | 0 | 0 | ||
Asset Retirement Obligation, Reclassification | 0 | [2] | 0 | [2] |
Asset Retirement Obligation, Payments | 0 | 0 | ||
Asset Retirement Obligation, Revisions, GRC- related | 0 | [3] | -105 | [3] |
Asset Retirement Obligation, Revisions, Other | 25 | [4],[5] | 0 | [4],[5] |
Asset Retirement Obligations, Balance as of June 30 | $1,262 | [1] | $1,185 | [1] |
Asset Retirement Obligations, Increase in Asset Service Lives, Beginning Rate | ' | 4.00% | [3] | |
Asset Retirement Obligations, Increase in Asset Service Lives, Ending Rate | ' | 6.00% | [3] | |
[1] | The current portions of the obligations are included in Other Current Liabilities on the Condensed Consolidated Balance Sheets. | |||
[2] | Reclassification to liability held for sale - asset retirement obligation which is included in Other Current Liabilities on the Condensed Consolidated Balance Sheets, as we discuss in "Sempra Natural Gas b Asset Held for Sale, Power Plant" in Note 3 above. | |||
[3] | The decreases in asset retirement obligations in 2013 at SDG&E and SoCalGas were 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 included increases in asset service lives ranging from 4 percent to 6 percent, partially offset by a higher estimated cost of removal. | |||
[4] | 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). | |||
[5] | The decrease in asset retirement obligations in 2014 at SDG&E is due to revised estimates in an updated decommissioning cost study for the San Onofre Nuclear Generating Station, which we discuss in Note 9. The increase in asset retirement obligations in 2014 at SoCalGas is related to a change in estimates. |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension Benefits | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | $23 | $28 | $75 | $82 |
Interest cost | 39 | 35 | 121 | 111 |
Expected return on assets | -42 | -39 | -128 | -121 |
Amortization of prior service cost | 3 | 1 | 8 | 3 |
Amortization of actuarial loss | 3 | 11 | 13 | 41 |
Settlement | 5 | 1 | 14 | 1 |
Regulatory adjustment | 6 | -14 | -18 | -65 |
Total net periodic benefit cost | 37 | 23 | 85 | 52 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' | ' | ' |
Contributions to pension plans | ' | ' | 95 | ' |
Expected contributions to benefit plans | ' | ' | 128 | ' |
Pension Benefits | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | 8 | 8 | 23 | 24 |
Interest cost | 10 | 9 | 32 | 30 |
Expected return on assets | -13 | -13 | -41 | -39 |
Amortization of prior service cost | 0 | 0 | 1 | 1 |
Amortization of actuarial loss | 1 | 3 | 3 | 10 |
Settlement | 0 | 1 | 2 | 1 |
Regulatory adjustment | 6 | 3 | 7 | -3 |
Total net periodic benefit cost | 12 | 11 | 27 | 24 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' | ' | ' |
Contributions to pension plans | ' | ' | 28 | ' |
Expected contributions to benefit plans | ' | ' | 55 | ' |
Pension Benefits | Southern California Gas Company [Member] | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | 13 | 17 | 45 | 50 |
Interest cost | 24 | 22 | 75 | 68 |
Expected return on assets | -26 | -24 | -78 | -73 |
Amortization of prior service cost | 2 | 0 | 6 | 1 |
Amortization of actuarial loss | 1 | 6 | 5 | 23 |
Settlement | 4 | 0 | 4 | 0 |
Regulatory adjustment | 0 | -17 | -25 | -62 |
Total net periodic benefit cost | 18 | 4 | 32 | 7 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' | ' | ' |
Contributions to pension plans | ' | ' | 39 | ' |
Expected contributions to benefit plans | ' | ' | 40 | ' |
Other Postretirement Benefits | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | 6 | 8 | 18 | 21 |
Interest cost | 13 | 10 | 37 | 33 |
Expected return on assets | -15 | -15 | -47 | -44 |
Amortization of prior service cost | -2 | -1 | -4 | -3 |
Amortization of actuarial loss | 0 | 0 | 0 | 5 |
Settlement | 5 | 0 | 5 | 0 |
Regulatory adjustment | 5 | 3 | 5 | 7 |
Total net periodic benefit cost | 12 | 5 | 14 | 19 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' | ' | ' |
Contributions to other postretirement benefit plans | ' | ' | 14 | ' |
Expected contributions to benefit plans | ' | ' | 16 | ' |
Other Postretirement Benefits | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | 2 | 2 | 5 | 6 |
Interest cost | 3 | 2 | 7 | 6 |
Expected return on assets | -2 | -3 | -8 | -7 |
Amortization of prior service cost | 0 | 1 | 2 | 3 |
Amortization of actuarial loss | 0 | 0 | 0 | 0 |
Settlement | 5 | 0 | 5 | 0 |
Regulatory adjustment | 4 | 1 | 1 | 1 |
Total net periodic benefit cost | 12 | 3 | 12 | 9 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' | ' | ' |
Contributions to other postretirement benefit plans | ' | ' | 12 | ' |
Expected contributions to benefit plans | ' | ' | 14 | ' |
Other Postretirement Benefits | Southern California Gas Company [Member] | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | 4 | 5 | 12 | 13 |
Interest cost | 9 | 8 | 28 | 26 |
Expected return on assets | -12 | -12 | -38 | -36 |
Amortization of prior service cost | -2 | -2 | -6 | -6 |
Amortization of actuarial loss | 0 | 0 | 0 | 4 |
Settlement | 0 | 0 | 0 | 0 |
Regulatory adjustment | 1 | 2 | 4 | 6 |
Total net periodic benefit cost | 0 | 1 | 0 | 7 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' | ' | ' |
Contributions to other postretirement benefit plans | ' | ' | 0 | ' |
Expected contributions to benefit plans | ' | ' | $0 | ' |
OTHER_FINANCIAL_DATA_RABBI_TRU
OTHER FINANCIAL DATA - RABBI TRUST (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Rabbi Trust Disclosure [Abstract] | ' | ' |
Rabbi Trust | $477 | $506 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share Numerator [Abstract] | ' | ' | ' | ' | |
Earnings | $348 | $296 | $864 | $719 | |
Earnings Per Share Denominator [Abstract] | ' | ' | ' | ' | |
Weighted-average common shares outstanding for basic EPS | 246,137,000 | 244,140,000 | 245,703,000 | 243,682,000 | |
Dilutive effect of stock options, restricted stock awards and restricted stock units | 4,634,000 | 5,119,000 | 4,575,000 | 5,041,000 | |
Weighted-average common shares outstanding for diluted EPS | 250,771,000 | 249,259,000 | 250,278,000 | 248,723,000 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' | |
Basic earnings per common share | $1.41 | $1.21 | $3.52 | $2.95 | |
Diluted earnings per common share | $1.39 | $1.19 | $3.45 | $2.89 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | |
Shares excluded from potential dilutive shares | 844,251 | 712,941 | 971,943 | 889,420 | |
Ninetieth Percentile [Member] | ' | ' | ' | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | |
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage | 200.00% | [1],[2] | ' | ' | ' |
Seventy Fifth Percentile Or Above [Member] | ' | ' | ' | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | |
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage | 150.00% | [1],[2] | ' | ' | ' |
Fiftieth Percentile [Member] | ' | ' | ' | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | |
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage | 100.00% | [1],[2] | ' | ' | ' |
Thirty Fifth Percentile Or Below [Member] | ' | ' | ' | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | |
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage | 0.00% | [1],[2] | ' | ' | ' |
Eighth Percentile [Member] | ' | ' | ' | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | |
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage | 200.00% | [1],[2] | ' | ' | ' |
Six And Seven Tenths Percentile [Member] | ' | ' | ' | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | |
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage | 150.00% | [1],[2] | ' | ' | ' |
Four And Four Tenths Percentile [Member] | ' | ' | ' | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | |
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage | 100.00% | [1],[2] | ' | ' | ' |
Three And Three Tenths Percentile [Member] | ' | ' | ' | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | |
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage | 0.00% | [1],[2] | ' | ' | ' |
Out Of The Money Stock Options [Member] | ' | ' | ' | ' | |
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | |
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 0 | 0 | |
Employee Stock Option [Member] | ' | ' | ' | ' | |
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | |
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 0 | 0 | |
Restricted Stock [Member] | ' | ' | ' | ' | |
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | |
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 0 | 0 | |
Restricted Stock Units [Member] | ' | ' | ' | ' | |
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | |
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 0 | 0 | |
[1] | Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are deemed reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate. | ||||
[2] | If performance falls between the tiers shown above, we calculate the payout using linear interpolation. |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense, net of income taxes | $8 | $6 | $22 | $17 |
IENova Plans [Member] [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock units granted | ' | ' | 136,996 | ' |
Performance-Based [Member] | Sempra Energy Plans [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock units granted | ' | ' | 444,241 | ' |
Service-Based [Member] | Sempra Energy Plans [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock units granted | ' | ' | 108,986 | ' |
Performance-Based, Total Shareholder Return [Member] | Sempra Energy Plans [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock units granted | ' | ' | 355,638 | ' |
Performance-Based, Earnings Per Share [Member] | Sempra Energy Plans [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock units granted | ' | ' | 88,603 | ' |
OTHER_FINANCIAL_DATA_CAPITALIZ
OTHER FINANCIAL DATA - CAPITALIZED FINANCING COSTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Capitalized Financing Costs Disclosure [Line Items] | ' | ' | ' | ' |
AFUDC related to debt | $5,000,000 | $6,000,000 | $15,000,000 | $17,000,000 |
AFUDC related to equity | 28,000,000 | 14,000,000 | 77,000,000 | 44,000,000 |
Other capitalized financing costs | 6,000,000 | 9,000,000 | 22,000,000 | 22,000,000 |
Total capitalized financing costs | 39,000,000 | 29,000,000 | 114,000,000 | 83,000,000 |
AFUDC equity related pipeline project | 14,000,000 | ' | 34,000,000 | ' |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Capitalized Financing Costs Disclosure [Line Items] | ' | ' | ' | ' |
AFUDC related to debt | 3,000,000 | 4,000,000 | 10,000,000 | 12,000,000 |
AFUDC related to equity | 8,000,000 | 10,000,000 | 26,000,000 | 30,000,000 |
Total capitalized financing costs | 11,000,000 | 14,000,000 | 36,000,000 | 42,000,000 |
Southern California Gas Company [Member] | ' | ' | ' | ' |
Capitalized Financing Costs Disclosure [Line Items] | ' | ' | ' | ' |
AFUDC related to debt | 2,000,000 | 2,000,000 | 5,000,000 | 5,000,000 |
AFUDC related to equity | 7,000,000 | 4,000,000 | 18,000,000 | 14,000,000 |
Total capitalized financing costs | $9,000,000 | $6,000,000 | $23,000,000 | $19,000,000 |
OTHER_FINANCIAL_DATA_COMPREHEN
OTHER FINANCIAL DATA - COMPREHENSIVE INCOME AND EQUITY (Details) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||
Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||||||
USD ($) | MXN | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Ownership Interests Held By Others, Bay Gas Storage Company [Member] | Ownership Interests Held By Others, Bay Gas Storage Company [Member] | Ownership Interests Held By Others, Southern Gas Transmission [Member] | Ownership Interests Held By Others, Southern Gas Transmission [Member] | Ownership Interests Held By Others, Liberty Gas Storage [Member] | Ownership Interests Held By Others, Liberty Gas Storage [Member] | Ownership Interests Held By Others, Tecsur [Member] | Ownership Interests Held By Others, Tecsur [Member] | Ownership Interests Held By Others, Luz Del Sur [Member] | Ownership Interests Held By Others, Luz Del Sur [Member] | Ownership Interests Held By Others, Chilquinta Energia [Member] | Ownership Interests Held By Others, Chilquinta Energia [Member] | Ownership Interests Held By Others, Otay Mesa VIE [Member] | Ownership Interests Held By Others, Otay Mesa VIE [Member] | Ownership Interests Held By Others IEnova [Member] | Ownership Interests Held By Others IEnova [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | Southern California Gas Company [Member] | Southern California Gas Company [Member] | Southern California Gas Company [Member] | Southern California Gas Company [Member] | Total Shareholders' Equity | Total Shareholders' Equity | Total Shareholders' Equity | Total Shareholders' Equity | Noncontrolling Interests [Member] | Noncontrolling Interests [Member] | Noncontrolling Interests [Member] | Noncontrolling Interests [Member] | |||||||
USD ($) | 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 ($) | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | USD ($) | USD ($) | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Equity, beginning of period | ' | ' | ' | ' | $11,850,000,000 | [1] | $10,683,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,719,000,000 | [1] | $4,298,000,000 | ' | ' | $2,549,000,000 | [1] | $2,235,000,000 | $11,008,000,000 | $10,282,000,000 | $4,628,000,000 | $4,222,000,000 | $842,000,000 | $401,000,000 | $91,000,000 | $76,000,000 | |||
Comprehensive income (loss) | ' | ' | ' | ' | 788,000,000 | 921,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 404,000,000 | 309,000,000 | ' | ' | 259,000,000 | 268,000,000 | 722,000,000 | 888,000,000 | 381,000,000 | 294,000,000 | 66,000,000 | 33,000,000 | 23,000,000 | 15,000,000 | ||||||
Share-based compensation expense | ' | ' | ' | ' | 35,000,000 | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | 30,000,000 | ' | ' | 0 | 0 | ' | ' | ||||||
Call premium on preferred stock of subsidiary | ' | ' | 0 | -3,000,000 | 0 | -3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,000,000 | ' | ' | ' | 0 | ' | ' | ||||||
Call premium on preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -3,000,000 | 0 | -3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Common stock dividends declared | ' | ' | ' | ' | -486,000,000 | -460,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -50,000,000 | -486,000,000 | -460,000,000 | ' | ' | 0 | 0 | ' | ' | ||||||
Preferred dividend requirements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -2,000,000 | 0 | -4,000,000 | 0 | 0 | -1,000,000 | -1,000,000 | ' | ' | ' | -4,000,000 | ' | ' | ' | 0 | ||||||
Preferred dividends of subsidiaries | ' | ' | 0 | -2,000,000 | -1,000,000 | -5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,000,000 | -5,000,000 | ' | ' | 0 | 0 | ' | ' | ||||||
Issuance of common stock | ' | ' | ' | ' | 71,000,000 | 57,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 71,000,000 | 57,000,000 | ' | ' | 0 | 0 | ' | ' | ||||||
Tax benefit related to share-based compensation | ' | ' | ' | ' | 22,000,000 | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,000,000 | 30,000,000 | ' | ' | 0 | 0 | ' | ' | ||||||
Repurchases of common stock | ' | ' | ' | ' | -38,000,000 | -45,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -38,000,000 | -45,000,000 | ' | ' | 0 | 0 | ' | ' | ||||||
Redemption of preferred stock of subidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,000,000 | ' | ' | ' | 0 | ||||||
Sale of noncontrolling interests, net of offering costs | ' | ' | ' | ' | ' | 574,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 135,000,000 | ' | ' | ' | 439,000,000 | ' | ' | ||||||
Noncontrolling Interest Increase | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 1,000,000 | ' | ' | ' | ||||||
Distributions to noncontrolling interests | ' | ' | ' | ' | -85,000,000 | -28,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -37,000,000 | -12,000,000 | ' | ' | ' | ' | 0 | 0 | 0 | 0 | -85,000,000 | -28,000,000 | -37,000,000 | -12,000,000 | ||||||
Equity, end of period | ' | ' | 12,157,000,000 | 11,754,000,000 | 12,157,000,000 | 11,754,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,086,000,000 | 4,588,000,000 | 5,086,000,000 | 4,588,000,000 | 2,807,000,000 | 2,452,000,000 | 2,807,000,000 | 2,452,000,000 | 11,333,000,000 | 10,909,000,000 | 5,009,000,000 | 4,509,000,000 | 824,000,000 | 845,000,000 | 77,000,000 | 79,000,000 | ||||||
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23.60% | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Percent of ownership held by others, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43.40% | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Amount of ownership interests held by others | ' | ' | 804,000,000 | ' | 804,000,000 | ' | 822,000,000 | 23,000,000 | 22,000,000 | 1,000,000 | 1,000,000 | 14,000,000 | 14,000,000 | 3,000,000 | 3,000,000 | 219,000,000 | 222,000,000 | 23,000,000 | [2] | 27,000,000 | [2] | 77,000,000 | 91,000,000 | 444,000,000 | 442,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Sale Of Noncontrolling Interests [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Proceeds From Sale Of Noncontrolling Interests Net | $574,000,000 | 7,100,000,000 | ' | ' | $0 | $574,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
[1] | Derived from audited financial statements. | ||||||||||||||||||||||||||||||||||||||||||||
[2] | 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 | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Component of Accumulated Other Comprehensive Income loss, Beginning Balance | ($371) | [1] | ($215) | [1] | ($273) | [1] | ($219) | [1] | ($371) | [1] | ($215) | [1] | ($228) | [1] | ($376) | [1] |
Other Comprehensive Income Before Reclassifications | -102 | [1] | -1 | [1] | ' | ' | -169 | [1] | -120 | [1] | ' | ' | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | 4 | [1] | 5 | [1] | ' | ' | 26 | [1] | 281 | [1] | ' | ' | ||||
Net Other Comprehensive Income | -98 | [1] | 4 | [1] | ' | ' | -143 | [1] | 161 | [1] | ' | ' | ||||
Component of Accumulated Other Comprehensive Income loss, Ending Balance | -371 | [1] | -215 | [1] | -273 | [1] | -219 | [1] | -371 | [1] | -215 | [1] | -228 | [1] | -376 | [1] |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Component of Accumulated Other Comprehensive Income loss, Beginning Balance | -7 | [1] | -9 | [1] | -8 | [1] | -10 | [1] | -7 | [1] | -9 | [1] | -9 | [1] | -11 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 1 | [1] | 1 | [1] | ' | ' | 2 | [1] | 2 | [1] | ' | ' | ||||
Net Other Comprehensive Income | 1 | [1] | 1 | [1] | ' | ' | 2 | [1] | 2 | [1] | ' | ' | ||||
Component of Accumulated Other Comprehensive Income loss, Ending Balance | -7 | [1] | -9 | [1] | -8 | [1] | -10 | [1] | -7 | [1] | -9 | [1] | -9 | [1] | -11 | [1] |
Southern California Gas Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Component of Accumulated Other Comprehensive Income loss, Beginning Balance | -16 | [1] | -17 | [1] | -18 | [1] | -17 | [1] | -16 | [1] | -17 | [1] | -18 | [1] | -18 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 2 | [1] | ' | ' | ' | 2 | [1] | 1 | [1] | ' | ' | |||||
Net Other Comprehensive Income | 2 | [1] | ' | ' | ' | 2 | [1] | 1 | [1] | ' | ' | |||||
Component of Accumulated Other Comprehensive Income loss, Ending Balance | -16 | [1] | -17 | [1] | -18 | [1] | -17 | [1] | -16 | [1] | -17 | [1] | -18 | [1] | -18 | [1] |
Foreign Currency Translation Adjustments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Component of Accumulated Other Comprehensive Income loss, Beginning Balance | -270 | [1] | -91 | [1] | -170 | [1] | -96 | [1] | -270 | [1] | -91 | [1] | -129 | [1] | -240 | [1] |
Other Comprehensive Income Before Reclassifications | -100 | [1] | 5 | [1] | ' | ' | -141 | [1] | -121 | [1] | ' | ' | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | 0 | [1] | 0 | [1] | ' | ' | 0 | [1] | 270 | [1],[2] | ' | ' | ||||
Net Other Comprehensive Income | -100 | [1] | 5 | [1] | ' | ' | -141 | [1] | 149 | [1] | ' | ' | ||||
Component of Accumulated Other Comprehensive Income loss, Ending Balance | -270 | [1] | -91 | [1] | -170 | [1] | -96 | [1] | -270 | [1] | -91 | [1] | -129 | [1] | -240 | [1] |
Unamortized Net Actuarial Loss [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Component of Accumulated Other Comprehensive Income loss, Beginning Balance | -60 | [1] | -95 | [1] | -65 | [1] | -98 | [1] | -60 | [1] | -95 | [1] | -73 | [1] | -102 | [1] |
Other Comprehensive Income Before Reclassifications | 0 | [1] | 0 | [1] | ' | ' | 0 | [1] | 0 | [1] | ' | ' | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | 5 | [1] | 3 | [1] | ' | ' | 13 | [1] | 7 | [1] | ' | ' | ||||
Net Other Comprehensive Income | 5 | [1] | 3 | [1] | ' | ' | 13 | [1] | 7 | [1] | ' | ' | ||||
Component of Accumulated Other Comprehensive Income loss, Ending Balance | -60 | [1] | -95 | [1] | -65 | [1] | -98 | [1] | -60 | [1] | -95 | [1] | -73 | [1] | -102 | [1] |
Unamortized Net Actuarial Loss [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Component of Accumulated Other Comprehensive Income loss, Beginning Balance | -8 | [1] | -10 | [1] | -9 | [1] | -11 | [1] | -8 | [1] | -10 | [1] | -10 | [1] | -12 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 1 | [1] | 1 | [1] | ' | ' | 2 | [1] | 2 | [1] | ' | ' | ||||
Net Other Comprehensive Income | 1 | [1] | 1 | [1] | ' | ' | 2 | [1] | 2 | [1] | ' | ' | ||||
Component of Accumulated Other Comprehensive Income loss, Ending Balance | -8 | [1] | -10 | [1] | -9 | [1] | -11 | [1] | -8 | [1] | -10 | [1] | -10 | [1] | -12 | [1] |
Unamortized Net Actuarial Loss [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Component of Accumulated Other Comprehensive Income loss, Beginning Balance | -3 | [1] | -4 | [1] | -5 | [1] | -4 | [1] | -3 | [1] | -4 | [1] | -5 | [1] | -4 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 2 | [1] | ' | ' | ' | 2 | [1] | 0 | [1] | ' | ' | |||||
Net Other Comprehensive Income | 2 | [1] | ' | ' | ' | 2 | [1] | 0 | [1] | ' | ' | |||||
Component of Accumulated Other Comprehensive Income loss, Ending Balance | -3 | [1] | -4 | [1] | -5 | [1] | -4 | [1] | -3 | [1] | -4 | [1] | -5 | [1] | -4 | [1] |
Unamortized Prior Service Credit [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Component of Accumulated Other Comprehensive Income loss, Beginning Balance | 0 | [1] | 1 | [1] | 0 | [1] | 1 | [1] | 0 | [1] | 1 | [1] | 0 | [1] | 1 | [1] |
Other Comprehensive Income Before Reclassifications | 0 | [1] | 0 | [1] | ' | ' | 0 | [1] | 0 | [1] | ' | ' | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | 0 | [1] | 0 | [1] | ' | ' | 0 | [1] | 0 | [1] | ' | ' | ||||
Net Other Comprehensive Income | 0 | [1] | 0 | [1] | ' | ' | 0 | [1] | 0 | [1] | ' | ' | ||||
Component of Accumulated Other Comprehensive Income loss, Ending Balance | 0 | [1] | 1 | [1] | 0 | [1] | 1 | [1] | 0 | [1] | 1 | [1] | 0 | [1] | 1 | [1] |
Unamortized Prior Service Credit [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Component of Accumulated Other Comprehensive Income loss, Beginning Balance | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 0 | [1] | 0 | [1] | ' | ' | 0 | [1] | 0 | [1] | ' | ' | ||||
Net Other Comprehensive Income | 0 | [1] | 0 | [1] | ' | ' | 0 | [1] | 0 | [1] | ' | ' | ||||
Component of Accumulated Other Comprehensive Income loss, Ending Balance | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] |
Unamortized Prior Service Credit [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Component of Accumulated Other Comprehensive Income loss, Beginning Balance | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 0 | [1] | ' | ' | ' | 0 | [1] | 0 | [1] | ' | ' | |||||
Net Other Comprehensive Income | 0 | [1] | ' | ' | ' | 0 | [1] | 0 | [1] | ' | ' | |||||
Component of Accumulated Other Comprehensive Income loss, Ending Balance | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] |
Financial Instrustments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Component of Accumulated Other Comprehensive Income loss, Beginning Balance | -41 | [1] | -30 | [1] | -38 | [1] | -26 | [1] | -41 | [1] | -30 | [1] | -26 | [1] | -35 | [1] |
Other Comprehensive Income Before Reclassifications | -2 | [1] | -6 | [1] | ' | ' | -28 | [1] | 1 | [1] | ' | ' | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | -1 | [1] | 2 | [1] | ' | ' | 13 | [1] | 4 | [1] | ' | ' | ||||
Net Other Comprehensive Income | -3 | [1] | -4 | [1] | ' | ' | -15 | [1] | 5 | [1] | ' | ' | ||||
Component of Accumulated Other Comprehensive Income loss, Ending Balance | -41 | [1] | -30 | [1] | -38 | [1] | -26 | [1] | -41 | [1] | -30 | [1] | -26 | [1] | -35 | [1] |
Financial Instrustments [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Component of Accumulated Other Comprehensive Income loss, Beginning Balance | -14 | [1] | -14 | [1] | -14 | [1] | -14 | [1] | -14 | [1] | -14 | [1] | -14 | [1] | -15 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 0 | [1] | ' | ' | ' | 0 | [1] | 1 | [1] | ' | ' | |||||
Net Other Comprehensive Income | 0 | [1] | ' | ' | ' | 0 | [1] | 1 | [1] | ' | ' | |||||
Component of Accumulated Other Comprehensive Income loss, Ending Balance | ($14) | [1] | ($14) | [1] | ($14) | [1] | ($14) | [1] | ($14) | [1] | ($14) | [1] | ($14) | [1] | ($15) | [1] |
[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. |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Financial Instruments [Abstract] | ' | ' | ' | ' | ||||
Energy-related businesses | $352 | $328 | $970 | $963 | ||||
Pension and Other Postretirement Benefits [Abstract] | ' | ' | ' | ' | ||||
Grand total reclassifications for the period, net of tax | 4 | 5 | 26 | 281 | ||||
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Pension and Other Postretirement Benefits [Abstract] | ' | ' | ' | ' | ||||
Grand total reclassifications for the period, net of tax | 1 | 1 | 2 | 2 | ||||
Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Pension and Other Postretirement Benefits [Abstract] | ' | ' | ' | ' | ||||
Grand total reclassifications for the period, net of tax | 2 | 0 | 2 | 1 | ||||
Foreign Currency Translation [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Foreign current translation adjustments | ' | ' | 0 | [1] | 270 | [1] | ||
Interest Rate And Foreign Exchange Instruments [Member] | ' | ' | ' | ' | ||||
Financial Instruments [Abstract] | ' | ' | ' | ' | ||||
Interest expense | 8 | 3 | 17 | 9 | ||||
Interest Rate Instruments [Member] | ' | ' | ' | ' | ||||
Financial Instruments [Abstract] | ' | ' | ' | ' | ||||
Gain on sale of assets | -5 | 0 | -3 | 0 | ||||
Equity earnings before income tax | 2 | 3 | 7 | 7 | ||||
Interest Rate Instruments [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Financial Instruments [Abstract] | ' | ' | ' | ' | ||||
Interest expense | 3 | 2 | 8 | 6 | ||||
Earnings attributable to noncontrolling interests | -3 | -2 | -8 | -6 | ||||
Total reclassifications for the period, net of tax for Financial Instruments | 0 | 0 | 0 | 0 | ||||
Interest Rate Instruments [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Financial Instruments [Abstract] | ' | ' | ' | ' | ||||
Interest expense | ' | ' | 0 | 1 | ||||
Income tax expense | ' | ' | 0 | 0 | ||||
Net of tax | ' | ' | 0 | 1 | ||||
Commodity Contracts Not Subject To Rate Recovery [Member] | ' | ' | ' | ' | ||||
Financial Instruments [Abstract] | ' | ' | ' | ' | ||||
Energy-related businesses | -2 | 0 | 8 | -5 | ||||
Financial Instrustments [Member] | ' | ' | ' | ' | ||||
Financial Instruments [Abstract] | ' | ' | ' | ' | ||||
Total before income tax | 3 | 6 | 29 | 11 | ||||
Income tax expense | -1 | -2 | -8 | -1 | ||||
Net of tax | 2 | 4 | 21 | 10 | ||||
Earnings attributable to noncontrolling interests | -3 | -2 | -8 | -6 | ||||
Total reclassifications for the period, net of tax for Financial Instruments | -1 | 2 | 13 | 4 | ||||
Amortization of Actuarial Loss [Member] | ' | ' | ' | ' | ||||
Pension and Other Postretirement Benefits [Abstract] | ' | ' | ' | ' | ||||
Pension and other postretirement costs | 8 | [2] | 5 | [2] | 21 | [2] | 12 | [2] |
Income tax expense | -3 | -2 | -8 | -5 | ||||
Total reclassifications for the period, net of tax for Pensions and postretirement benefits | 5 | 3 | 13 | 7 | ||||
Amortization of Actuarial Loss [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Pension and Other Postretirement Benefits [Abstract] | ' | ' | ' | ' | ||||
Pension and other postretirement costs | 1 | [2] | 2 | [2] | 3 | [2] | 3 | [2] |
Income tax expense | 0 | -1 | -1 | -1 | ||||
Total reclassifications for the period, net of tax for Pensions and postretirement benefits | 1 | 1 | 2 | 2 | ||||
Amortization of Actuarial Loss [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Pension and Other Postretirement Benefits [Abstract] | ' | ' | ' | ' | ||||
Pension and other postretirement costs | 4 | [2] | 0 | [2] | 4 | [2] | 0 | [2] |
Income tax expense | -2 | 0 | -2 | 0 | ||||
Total reclassifications for the period, net of tax for Pensions and postretirement benefits | $2 | $0 | $2 | $0 | ||||
[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). |
OTHER_FINANCIAL_DATA_TRANSACTI
OTHER FINANCIAL DATA - TRANSACTIONS WITH AFFILIATES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Repayments of loans from affiliates | $18,000,000 | ' | $18,000,000 | ' | ' | |||
Sempra Renewables Segment [Member] | ' | ' | ' | ' | ' | |||
Transactions With Joint Venture [Line Items] | ' | ' | ' | ' | ' | |||
Receivables from joint venture investments | 3,000,000 | ' | 3,000,000 | ' | 4,000,000 | |||
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due to affiliate, current | 36,000,000 | ' | 36,000,000 | ' | 39,000,000 | |||
Revenues from unconsolidated affiliates | 2,000,000 | 3,000,000 | 8,000,000 | 8,000,000 | ' | |||
Southern California Gas Company [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due from affiliate, current | 274,000,000 | ' | 274,000,000 | ' | 21,000,000 | |||
Revenues from unconsolidated affiliates | 17,000,000 | 17,000,000 | 51,000,000 | 48,000,000 | ' | |||
Affiliate Of Investee [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due from affiliate, current | 265,000,000 | [1] | ' | 265,000,000 | [1] | ' | 0 | [1] |
Interest rate on due from affiliate, noncurrent | 0.08% | ' | ' | ' | ' | |||
Loan to unconsolidated affiliate, principal | 281,000,000 | ' | 281,000,000 | ' | ' | |||
Due to/from Sempra Energy | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due to affiliate, current | 27,000,000 | ' | 27,000,000 | ' | 25,000,000 | |||
Income taxes due from (to) Sempra Energy | 27,000,000 | [2] | ' | 27,000,000 | [2] | ' | 70,000,000 | [2] |
Due to/from Sempra Energy | Southern California Gas Company [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due to affiliate, current | 0 | ' | 0 | ' | 16,000,000 | |||
Income taxes due from (to) Sempra Energy | 21,000,000 | [2] | ' | 21,000,000 | [2] | ' | 18,000,000 | [2] |
Subsidiary Of Common Parent S D G E [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due from affiliate, current | 9,000,000 | ' | 9,000,000 | ' | 0 | |||
Subsdiary Of Common Parent So Cal Gas [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due to affiliate, current | 9,000,000 | ' | 9,000,000 | ' | 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 | 1,000,000 | ' | 1,000,000 | ' | 1,000,000 | |||
Due to affiliate, current | 0 | ' | 0 | ' | 14,000,000 | |||
Subsidiary Of Common Parent Other Affiliates [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due from affiliate, current | 0 | ' | 0 | ' | 21,000,000 | |||
Joint venture with PEMEX [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Interest rate on due from affiliate, noncurrent | 4.66% | ' | ' | ' | ' | |||
Loan to unconsolidated affiliate, principal | 71,000,000 | ' | 71,000,000 | ' | ' | |||
Loan to unconsolidated affiliate, accrued interest | 1,000,000 | ' | 1,000,000 | ' | ' | |||
ESJ joint venture [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Interest rate on due from affiliate, noncurrent | 6.53% | ' | ' | ' | ' | |||
Loan to unconsolidated affiliate, principal | 20,000,000 | ' | 20,000,000 | ' | ' | |||
Loan to unconsolidated affiliate, accrued interest | 1,000,000 | ' | 1,000,000 | ' | ' | |||
Eletrans [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Interest rate on due from affiliate, noncurrent | 4.00% | ' | ' | ' | ' | |||
Loan to unconsolidated affiliate, principal | 39,000,000 | ' | 39,000,000 | ' | 14,000,000 | |||
Loan to unconsolidated affiliate, accrued interest | $1,000,000 | ' | $1,000,000 | ' | ' | |||
[1] | Net receivable includes a loan to Sempra Energy of $281 million at September 30, 2014 at an interest rate of 0.08 percent. | |||||||
[2] | SDG&E and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from the companiesb having always filed separate returns. |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Allowance for equity funds used during construction | $28 | $14 | $77 | $44 | ||||
Investment gains (losses) | -3 | [1] | -6 | [1] | 20 | [1] | 16 | [1] |
Gains (losses) on interest rate and foreign exchange instruments, net | -6 | 4 | 3 | 17 | ||||
Regulatory Interest, net | 2 | [2] | 1 | [2] | 5 | [2] | 3 | [2] |
Sundry, net | 8 | 3 | 13 | -1 | ||||
Total | 29 | 16 | 118 | 79 | ||||
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Allowance for equity funds used during construction | 8 | 10 | 26 | 30 | ||||
Regulatory Interest, net | 2 | [2] | 1 | [2] | 5 | [2] | 3 | [2] |
Sundry, net | -1 | -1 | -2 | -3 | ||||
Total | 9 | 10 | 29 | 30 | ||||
Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Allowance for equity funds used during construction | 7 | 4 | 18 | 14 | ||||
Sundry, net | -1 | -2 | -5 | -5 | ||||
Total | $6 | $2 | $13 | $9 | ||||
[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. |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ' | ' | ' | ' |
Income tax expense (benefit) | $71 | $117 | $291 | $327 |
Effective income tax rate | 16.00% | 27.00% | 24.00% | 30.00% |
Income tax expense from corporate reorganization related to IEnova IPO | ' | ' | ' | 63 |
Charge To Reduce Certain Tax Regulatory Assets Attributable To Nuclear Plant | ' | ' | 17 | ' |
Income Tax On Repatriation of Foreign Earnings | 8 | ' | 32 | ' |
Louisiana Valuation Allowance Release | -25 | ' | -25 | ' |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ' | ' | ' | ' |
Income tax expense (benefit) | 65 | 84 | 217 | 147 |
Effective income tax rate | 28.00% | 38.00% | 35.00% | 33.00% |
Charge To Reduce Certain Tax Regulatory Assets Attributable To Nuclear Plant | ' | ' | 17 | ' |
Southern California Gas Company [Member] | ' | ' | ' | ' |
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ' | ' | ' | ' |
Income tax expense (benefit) | $44 | $38 | $110 | $107 |
Effective income tax rate | 31.00% | 27.00% | 30.00% | 29.00% |
OTHER_FINANCIAL_DATA_INVENTORY
OTHER FINANCIAL DATA - INVENTORY (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Total Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | $319 | $113 | |
Energy Related Inventory, Liquefied Natural Gas | 11 | 8 | |
Energy Related Inventory, Materials And Supplies | 142 | 166 | |
Inventory, Total | 472 | 287 | [1] |
S D G E Segment [Member] | ' | ' | |
Total Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | 6 | 3 | |
Energy Related Inventory, Liquefied Natural Gas | 0 | 0 | |
Energy Related Inventory, Materials And Supplies | 64 | 83 | |
Inventory, Total | 70 | 86 | |
So Cal Gas Segment [Member] | ' | ' | |
Total Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | 192 | 42 | |
Energy Related Inventory, Liquefied Natural Gas | 0 | 0 | |
Energy Related Inventory, Materials And Supplies | 29 | 27 | |
Inventory, Total | 221 | 69 | |
Sempra South American Utilities Segment [Member] | ' | ' | |
Total Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | 0 | 0 | |
Energy Related Inventory, Liquefied Natural Gas | 0 | 0 | |
Energy Related Inventory, Materials And Supplies | 36 | 40 | |
Inventory, Total | 36 | 40 | |
Sempra Mexico Segment [Member] | ' | ' | |
Total Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | 0 | 0 | |
Energy Related Inventory, Liquefied Natural Gas | 6 | 3 | |
Energy Related Inventory, Materials And Supplies | 9 | 9 | |
Inventory, Total | 15 | 12 | |
Sempra Natural Gas Segment [Member] | ' | ' | |
Total Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | 121 | 68 | |
Energy Related Inventory, Liquefied Natural Gas | 5 | 5 | |
Energy Related Inventory, Materials And Supplies | 1 | 5 | |
Inventory, Total | 127 | 78 | |
Sempra Renewables Segment [Member] | ' | ' | |
Total Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | 0 | 0 | |
Energy Related Inventory, Liquefied Natural Gas | 0 | 0 | |
Energy Related Inventory, Materials And Supplies | 3 | 2 | |
Inventory, Total | $3 | $2 | |
[1] | Derived from audited financial statements. |
DEBT_AND_CREDIT_FACILITIES_Det
DEBT AND CREDIT FACILITIES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Line Of Credit Facility, Sempra Energy Consolidated [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Committed lines of credit, maximum borrowing capacity | $4,100,000,000 | ' |
Committed lines of credit, remaining borrowing capacity | 2,800,000,000 | ' |
Weighted average interest rate on total short-term debt outstanding | 0.76% | 0.64% |
Line Of Credit Facility, Sempra Energy [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Committed lines of credit, maximum borrowing capacity | 1,067,000,000 | ' |
Committed lines of credit, maximum ratio of indebtedness to total capitalization | 65.00% | ' |
Committed lines of credit, capacity for issuance of letters of credit | 635,000,000 | ' |
Committed lines of credit, outstanding borrowings | 0 | ' |
Line Of Credit Facility, Sempra Global [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Committed lines of credit, maximum borrowing capacity | 2,189,000,000 | ' |
Committed lines of credit, maximum ratio of indebtedness to total capitalization | 65.00% | ' |
Outstanding commercial paper supported by committed lines of credit | 1,200,000,000 | ' |
Commercial paper noncurrent | ' | 200,000,000 |
Line Of Credit Facility, S D G E [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Committed lines of credit, maximum borrowing capacity | 658,000,000 | ' |
Committed lines of credit, maximum ratio of indebtedness to total capitalization | 65.00% | ' |
Committed lines of credit, remaining borrowing capacity | 558,000,000 | ' |
Outstanding commercial paper supported by committed lines of credit | 100,000,000 | ' |
Weighted average interest rate on total short-term debt outstanding | ' | 0.13% |
Commercial paper noncurrent | 100,000,000 | ' |
Weighted Average Interest Rate On Commercial Paper, Noncurrent | 0.40% | ' |
Line Of Credit Facility, So Cal Gas [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Committed lines of credit, maximum borrowing capacity | 658,000,000 | ' |
Committed lines of credit, maximum ratio of indebtedness to total capitalization | 65.00% | ' |
Committed lines of credit, remaining borrowing capacity | 658,000,000 | ' |
Weighted average interest rate on total short-term debt outstanding | ' | 0.13% |
Commercial paper noncurrent | 0 | ' |
Line Of Credit Facility, California Utilities Combined [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Committed lines of credit, maximum borrowing capacity | 877,000,000 | ' |
Committed lines of credit, capacity for issuance of letters of credit | 300,000,000 | ' |
Line Of Credit Facility, South American Utilities And Mexico [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Committed lines of credit, maximum borrowing capacity | 875,000,000 | ' |
Committed lines of credit, remaining borrowing capacity | 630,000,000 | ' |
Line Of Credit Facility, IEnova Santander [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Committed lines of credit, maximum borrowing capacity | 200,000,000 | ' |
Committed lines of credit, remaining borrowing capacity | 55,000,000 | ' |
Committed lines of credit, outstanding borrowings | 145,000,000 | ' |
Line Of Credit Facility, Energia Sierra Juarez [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Committed lines of credit, maximum borrowing capacity | 31,700,000 | ' |
Line Of Credit Facility, Energia Sierra Juarez Value Added Tax [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Committed lines of credit, maximum borrowing capacity | 35,000,000 | ' |
Line Of Credit Facility, Copper Mountain Solar 3 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Committed lines of credit, maximum borrowing capacity | 72,000,000 | ' |
Line Of Credit Facility, IEnova Sumitomo [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Committed lines of credit, maximum borrowing capacity | 100,000,000 | ' |
Committed lines of credit, outstanding borrowings | $0 | ' |
DEBT_AND_CREDIT_FACILITIES_2_D
DEBT AND CREDIT FACILITIES 2 (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Other Long Term Debt, Fixed Rate Due 2044 [Member] | Southern California Gas Company [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Face Amount | $250 |
Debt Instrument, Interest Rate, Stated Percentage | 4.45% |
Other Long Term Debt, Due March 2027 [Member] | Copper Mountain Solar 3 [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Maximum Borrowing Amount | 356 |
Debt Instrument, Outstanding Borrowings | 97 |
Debt Instrument, Interest Rate, After Floating To Fixed Swap | 5.35% |
Debt Instrument, Current Stated Market Interest Rate | 0.16% |
Other Long Term Debt, Fixed Rate Due 2024 [Member] | Sempra Energy [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Face Amount | 500 |
Debt Instrument, Interest Rate, Stated Percentage | 3.55% |
Other Long Term Debt, Fixed Rate Due 2024 [Member] | Southern California Gas Company [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Face Amount | 500 |
Debt Instrument, Interest Rate, Stated Percentage | 3.15% |
Other Long Term Debt, Fixed Rate Due June 2033 [Member] | Energia Sierra Juarez wind project [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Maximum Borrowing Amount | 240 |
Debt Instrument, Outstanding Borrowings | $82 |
Debt Instrument, Interest Rate, After Floating To Fixed Swap | 6.10% |
Debt Instrument, Current Stated Market Interest Rate | 0.16% |
Other Long Term Debt, Fixed Rate Due 2014 [Member] | Southern California Gas Company [Member] | ' |
Debt Instrument [Line Items] | ' |
Retired Debt Instrument, Interest Rate, Stated Percentage | 5.50% |
DEBT_AND_CREDIT_FACILITIES_3_D
DEBT AND CREDIT FACILITIES 3 (Details) (USD $) | 9 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Copper Mountain Solar 3 [Member] | Energia Sierra Juarez wind project [Member] | Energia Sierra Juarez wind project [Member] | |||
Term Loan, Due June 2033 [Member] | |||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Deconsolidation of debt | $179 | $443 | $97 | ' | $82 |
Percentage of equity interest sold | ' | ' | 50.00% | 50.00% | ' |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS (Details) | Sep. 30, 2014 | Dec. 31, 2013 | ||
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) | 43 | [1] | 43 | [1] |
Commodity derivative volumes, congestion revenue rights (in millions of megawatt hours) | 27 | [2] | 33 | [2] |
So Cal Gas Segment [Member] | ' | ' | ||
Schedule Of Commodity Derivative Volumes [Line Items] | ' | ' | ||
Commodity derivative volumes, natural gas (in millions of million British thermal units) | 0 | [1] | 2 | [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) | 31 | [1] | 15 | [1] |
Commodity derivative volumes, electric power (in millions of megawatt hours) | 0 | [2] | 1 | [2] |
[1] | Million British thermal units | |||
[2] | Megawatt hours |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS 2 (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | ||||||||
Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Fair Value Hedges | Fair Value Hedges | Fair Value Hedges | Fair Value Hedges | Fair Value Hedges | Fair Value Hedges | Fair Value Hedges | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | |||||||||
Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | First Traunch [Member] | Second Traunch [Member] | Third Traunch [Member] | Maximum [Member] | Maximum [Member] | Cash Flow Hedges | Cash Flow Hedges | |||||||||||||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Derivative Notional Amount | $404,000,000 | [1] | $413,000,000 | [1] | ' | ' | ' | ' | $300,000,000 | $300,000,000 | $200,000,000 | $200,000,000 | $100,000,000 | ' | ' | $327,000,000 | [1] | $335,000,000 | [1] | ||||
Maturities of interest rate derivatives | ' | ' | '2028 | [1] | '2028 | [1] | '2014 | [1] | '2014 | [1] | ' | ' | '2018 | '2019 | '2022 | '2016 | '2016 | '2019 | [1] | '2019 | [1] | ||
Debt Instrument, Interest Rate At Period End | ' | ' | ' | ' | ' | ' | ' | ' | 3.80% | 6.01% | 2.37% | ' | ' | ' | ' | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 6.15% | 9.80% | 2.88% | ' | ' | ' | ' | ||||||||
[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, 2014 | Dec. 31, 2013 | ||
OtherCurrentAssetsMember | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | $12,000,000 | [1],[2] | $14,000,000 | [1],[2] |
Commodity contracts not subject to rate recovery | 1,000,000 | [2] | ' | |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | 8,000,000 | [2] | 8,000,000 | [2] |
Commodity contracts not subject to rate recovery | 39,000,000 | [2] | 47,000,000 | [2] |
Associated offsetting commodity contracts not subject to rate recovery | -32,000,000 | [2] | -43,000,000 | [2] |
Associated cash collateral commodity contracts not subject to rate recovery | 0 | [2] | 0 | [2] |
Commodity contracts subject to rate recovery | 14,000,000 | [2] | 35,000,000 | [2] |
Associated cash collateral commodity contracts subject to rate recovery | 0 | [2] | ' | |
Associated offsetting commodity contracts subject to rate recovery | -4,000,000 | [2] | -3,000,000 | [2] |
Net amount presented on balance sheet | 38,000,000 | [2] | 58,000,000 | [2] |
Additional margin posted for commodity contracts not subject to rate recovery | 15,000,000 | [2] | 17,000,000 | [2] |
Additional margin posted for commodity contracts subject to rate recovery | 30,000,000 | [2] | 31,000,000 | [2] |
Total | 83,000,000 | [2],[3] | 106,000,000 | [2],[3] |
OtherCurrentAssetsMember | 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],[2] | 0 | [1],[2] |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Commodity contracts subject to rate recovery | 11,000,000 | [2] | 34,000,000 | [2] |
Associated cash collateral commodity contracts subject to rate recovery | 0 | [2] | ' | |
Associated offsetting commodity contracts subject to rate recovery | -2,000,000 | [2] | -3,000,000 | [2] |
Net amount presented on balance sheet | 9,000,000 | [2] | 31,000,000 | [2] |
Additional margin posted for commodity contracts not subject to rate recovery | 1,000,000 | [2] | 1,000,000 | [2] |
Additional margin posted for commodity contracts subject to rate recovery | 28,000,000 | [2] | 29,000,000 | [2] |
Total | 38,000,000 | [2],[3] | 61,000,000 | [2],[3] |
OtherCurrentAssetsMember | Southern California Gas Company [Member] | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Commodity contracts subject to rate recovery | 3,000,000 | [2] | 1,000,000 | [2] |
Associated offsetting commodity contracts subject to rate recovery | -2,000,000 | [2] | ' | |
Net amount presented on balance sheet | 1,000,000 | [2] | 1,000,000 | [2] |
Additional margin posted for commodity contracts not subject to rate recovery | 2,000,000 | [2] | 2,000,000 | [2] |
Additional margin posted for commodity contracts subject to rate recovery | 2,000,000 | [2] | 2,000,000 | [2] |
Total | 5,000,000 | [2] | 5,000,000 | [2] |
OtherNoncurrentAssetsMember | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | 7,000,000 | [1] | 12,000,000 | [1] |
Commodity contracts not subject to rate recovery | 0 | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | 24,000,000 | 22,000,000 | ||
Commodity contracts not subject to rate recovery | 10,000,000 | 7,000,000 | ||
Associated offsetting commodity contracts not subject to rate recovery | -7,000,000 | -5,000,000 | ||
Associated cash collateral commodity contracts not subject to rate recovery | 0 | 0 | ||
Commodity contracts subject to rate recovery | 82,000,000 | 72,000,000 | ||
Associated cash collateral commodity contracts subject to rate recovery | 0 | ' | ||
Associated offsetting commodity contracts subject to rate recovery | -2,000,000 | -2,000,000 | ||
Net amount presented on balance sheet | 114,000,000 | 106,000,000 | ||
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 | 114,000,000 | [3] | 106,000,000 | [3] |
OtherNoncurrentAssetsMember | 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 | 82,000,000 | 72,000,000 | ||
Associated cash collateral commodity contracts subject to rate recovery | 0 | ' | ||
Associated offsetting commodity contracts subject to rate recovery | -2,000,000 | -2,000,000 | ||
Net amount presented on balance sheet | 80,000,000 | 70,000,000 | ||
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 | 80,000,000 | [4] | 70,000,000 | [3] |
OtherNoncurrentAssetsMember | 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 | ' | ||
Net amount presented on balance sheet | 0 | 0 | ||
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 | 0 | 0 | ||
OtherCurrentLiabilitiesMember | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | -17,000,000 | [1],[5] | -18,000,000 | [1],[5] |
Commodity contracts not subject to rate recovery | 0 | [5] | ' | |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | -7,000,000 | [5] | -7,000,000 | [5] |
Commodity contracts not subject to rate recovery | -36,000,000 | [5] | -51,000,000 | [5] |
Associated offsetting commodity contracts not subject to rate recovery | 32,000,000 | [5] | 43,000,000 | [5] |
Associated cash collateral commodity contracts not subject to rate recovery | 1,000,000 | [5] | 1,000,000 | [5] |
Commodity contracts subject to rate recovery | -13,000,000 | [5] | -10,000,000 | [5] |
Associated cash collateral commodity contracts subject to rate recovery | 3,000,000 | [5] | ' | |
Associated offsetting commodity contracts subject to rate recovery | 4,000,000 | [5] | 3,000,000 | [5] |
Net amount presented on balance sheet | -33,000,000 | [5] | -39,000,000 | [5] |
Additional margin posted for commodity contracts not subject to rate recovery | 0 | [5] | 0 | [5] |
Additional margin posted for commodity contracts subject to rate recovery | 0 | [5] | 0 | [5] |
Total | -33,000,000 | [3],[5] | -39,000,000 | [3],[5] |
OtherCurrentLiabilitiesMember | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | -16,000,000 | [1] | -16,000,000 | [1],[5] |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Commodity contracts subject to rate recovery | -11,000,000 | [5] | -9,000,000 | [5] |
Associated cash collateral commodity contracts subject to rate recovery | 3,000,000 | [5] | ' | |
Associated offsetting commodity contracts subject to rate recovery | 2,000,000 | [5] | 3,000,000 | [5] |
Net amount presented on balance sheet | -22,000,000 | [5] | -22,000,000 | [5] |
Additional margin posted for commodity contracts not subject to rate recovery | 0 | [5] | 0 | [5] |
Additional margin posted for commodity contracts subject to rate recovery | 0 | [5] | 0 | [5] |
Total | -22,000,000 | [3],[5] | -22,000,000 | [3],[5] |
OtherCurrentLiabilitiesMember | Southern California Gas Company [Member] | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Commodity contracts subject to rate recovery | -2,000,000 | [5] | -1,000,000 | [5] |
Associated offsetting commodity contracts subject to rate recovery | 2,000,000 | [5] | ' | |
Net amount presented on balance sheet | 0 | [5] | -1,000,000 | [5] |
Additional margin posted for commodity contracts not subject to rate recovery | 0 | [5] | 0 | [5] |
Additional margin posted for commodity contracts subject to rate recovery | 0 | [5] | 0 | [5] |
Total | 0 | [5] | -1,000,000 | [5] |
OtherNoncurrentLiabilitiesMember | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | -77,000,000 | [1] | -75,000,000 | [1] |
Commodity contracts not subject to rate recovery | 0 | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | -20,000,000 | -17,000,000 | ||
Commodity contracts not subject to rate recovery | -7,000,000 | -5,000,000 | ||
Associated offsetting commodity contracts not subject to rate recovery | 7,000,000 | 5,000,000 | ||
Associated cash collateral commodity contracts not subject to rate recovery | 0 | 0 | ||
Commodity contracts subject to rate recovery | -6,000,000 | -8,000,000 | ||
Associated cash collateral commodity contracts subject to rate recovery | 0 | ' | ||
Associated offsetting commodity contracts subject to rate recovery | 2,000,000 | 2,000,000 | ||
Net amount presented on balance sheet | -101,000,000 | -98,000,000 | ||
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 | -101,000,000 | [3] | -98,000,000 | [3] |
OtherNoncurrentLiabilitiesMember | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | -32,000,000 | [1] | -39,000,000 | [1] |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Commodity contracts subject to rate recovery | -6,000,000 | -8,000,000 | ||
Associated cash collateral commodity contracts subject to rate recovery | 0 | ' | ||
Associated offsetting commodity contracts subject to rate recovery | 2,000,000 | 2,000,000 | ||
Net amount presented on balance sheet | -36,000,000 | -45,000,000 | ||
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 | -36,000,000 | [3] | -45,000,000 | [3] |
OtherNoncurrentLiabilitiesMember | 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 | ' | ||
Net amount presented on balance sheet | 0 | 0 | ||
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 | $0 | $0 | ||
[1] | Includes Otay Mesa VIE. All of SDG&Ebs amounts relate to Otay Mesa VIE. | |||
[2] | Included in Current Assets: Other for SoCalGas. | |||
[3] | Normal purchase contracts previously measured at fair value are excluded. | |||
[4] | Derived from audited financial statements. | |||
[5] | Included in Current Liabilities: Other for SoCalGas. |
DERIVATIVE_FINANCIAL_INSTRUMEN5
DERIVATIVE FINANCIAL INSTRUMENTS 4 (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Fixed-price contracts and other derivatives | ' | ' | $19,000,000 | $25,000,000 | ||||
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Fixed-price contracts and other derivatives | ' | ' | 5,000,000 | 7,000,000 | ||||
Cash Flow Hedges | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | -3,000,000 | [1] | -10,000,000 | [1] | -51,000,000 | [1] | 13,000,000 | [1] |
Gain (loss) reclassified from AOCI into earnings (effective portion) | -3,000,000 | [1] | -6,000,000 | [1] | -29,000,000 | [1] | -11,000,000 | [1] |
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) | -5,000,000 | [2] | -8,000,000 | [2] | -15,000,000 | [2] | -3,000,000 | [2] |
Gain (loss) reclassified from AOCI into earnings (effective portion) | -8,000,000 | [2] | -3,000,000 | [2] | -17,000,000 | [2] | -9,000,000 | [2] |
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) | 1,000,000 | [1],[2] | -3,000,000 | [1],[2] | -5,000,000 | [1],[2] | 8,000,000 | [1],[2] |
Gain (loss) reclassified from AOCI into earnings (effective portion) | -3,000,000 | [1],[2] | -2,000,000 | [1],[2] | -8,000,000 | [1],[2] | -6,000,000 | [1],[2] |
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 | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | ' | ' | 0 | -1,000,000 | ||||
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) | -4,000,000 | -3,000,000 | -34,000,000 | 11,000,000 | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | -2,000,000 | -3,000,000 | -7,000,000 | -7,000,000 | ||||
Cash Flow Hedges | Revenues: Energy-Related Businesses [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) | 1,000,000 | 1,000,000 | -5,000,000 | 5,000,000 | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 2,000,000 | 0 | -8,000,000 | 5,000,000 | ||||
Cash Flow Hedges | Gain On Sale Of Assets [Member] | Interest Rate Instruments | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | 5,000,000 | 0 | 3,000,000 | 0 | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 5,000,000 | 0 | 3,000,000 | 0 | ||||
Fair Value Hedges | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 0 | [3] | 3,000,000 | [3] | 6,000,000 | [3] | 2,000,000 | [3] |
Fair Value Hedges | Interest Expense | Interest Rate Instruments | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 1,000,000 | 2,000,000 | 6,000,000 | 6,000,000 | ||||
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | 0 | ' | 9,000,000 | ' | ||||
Fair Value Hedges | Other Income, Net | Interest Rate Instruments | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | -1,000,000 | 1,000,000 | 0 | -4,000,000 | ||||
Undesignated Derivatives | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | -4,000,000 | 6,000,000 | 16,000,000 | 7,000,000 | ||||
Undesignated Derivatives | Other Income, Net | Interest Rate And Foreign Exchange Instruments [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | -6,000,000 | 4,000,000 | -6,000,000 | 17,000,000 | ||||
Undesignated Derivatives | Equity Earnings Net Of Income Tax [Member] | Interest Rate And Foreign Exchange Instruments [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | -2,000,000 | 0 | -4,000,000 | -3,000,000 | ||||
Undesignated Derivatives | Revenues: Energy-Related Businesses [Member] | Commodity Contracts Not Subject To Rate Recovery | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 3,000,000 | 1,000,000 | 2,000,000 | 2,000,000 | ||||
Undesignated Derivatives | Cost of Natural Gas, Electric Fuel and Purchased Power [Member] | Commodity Contracts Not Subject To Rate Recovery | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 1,000,000 | 0 | 3,000,000 | 0 | ||||
Undesignated Derivatives | Cost of Electric Fuel and Purchased Power [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | -1,000,000 | 0 | 19,000,000 | -9,000,000 | ||||
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) reclassified from AOCI into earnings (effective portion) | -1,000,000 | 0 | 19,000,000 | -9,000,000 | ||||
Undesignated Derivatives | Cost of Natural Gas [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 1,000,000 | 1,000,000 | 2,000,000 | 0 | ||||
Undesignated Derivatives | Cost of Natural Gas [Member] | Commodity Contracts Subject To Rate Recovery [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | $1,000,000 | $1,000,000 | $2,000,000 | $0 | ||||
[1] | There was a negligible amount of ineffectiveness related to these hedges in 2014 and 2013. | |||||||
[2] | Amounts include Otay Mesa VIE. All of SDG&Ebs interest rate derivative activity relates to Otay Mesa VIE. | |||||||
[3] | There were negligible gains from hedge ineffectiveness on these swaps for the three-month period, and $9 million of gains from hedge ineffectiveness for the nine-month period ended September 30, 2014, respectively. All other changes in the fair value of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt and recorded in Other Income, Net. There was no hedge ineffectiveness in 2013. |
DERIVATIVE_FINANCIAL_INSTRUMEN6
DERIVATIVE FINANCIAL INSTRUMENTS 5 (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Cash Flow Hedge Disclosure [Line Items] | ' |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $25 |
Cash Flow Hedge Gain (Loss) To Be Reclassified Within Twelve Months For Noncontrolling Interest | 13 |
San Diego Gas and Electric Company and Subsidiary [Member] | ' |
Cash Flow Hedge Disclosure [Line Items] | ' |
Cash Flow Hedge Gain (Loss) To Be Reclassified Within Twelve Months For Noncontrolling Interest | 12 |
Southern California Gas Company [Member] | ' |
Cash Flow Hedge Disclosure [Line Items] | ' |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $0 |
DERIVATIVE_FINANCIAL_INSTRUMEN7
DERIVATIVE FINANCIAL INSTRUMENTS 6 (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative Credit Risk Related Contingent Features [Line Items] | ' | ' |
Derivative, Net Liability Position, Aggregate Fair Value | $2 | $3 |
Additional Collateral Aggregate Fair Value | 2 | ' |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' |
Derivative Credit Risk Related Contingent Features [Line Items] | ' | ' |
Derivative, Net Liability Position, Aggregate Fair Value | 0 | 3 |
Additional Collateral Aggregate Fair Value | $0 | ' |
FAIR_VALUE_MEASUREMENTS_2_Deta
FAIR VALUE MEASUREMENTS 2 (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nuclear decommissioning trusts - equity securities | $637 | $614 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 103 | 117 | ||
Nuclear decomissioning trusts - Municipal debt securities | 121 | 111 | ||
Nuclear decommissioning trusts - Other debt securities | 200 | 153 | ||
Nuclear decommissioning trusts - Total debt securities | 424 | 381 | ||
Total nuclear decommissioning trusts | 1,061 | [1] | 995 | [1] |
Interest rate instruments, assets | 51 | 56 | ||
Commodity contracts subject to rate recovery, assets | 120 | 133 | ||
Commodity contracts not subject to rate recovery, assets | 26 | 23 | ||
Total fair value of assets measured on a recurring basis | 1,258 | 1,207 | ||
Interest rate instruments, liabilities | 121 | 117 | ||
Commodity contracts subject to rate recovery, liabilities | 10 | 13 | ||
Commodity contracts not subject to rate recovery, liabilities | 3 | 7 | ||
Total fair value of liabilities measured on a recurring basis | 134 | 137 | ||
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 | 637 | 614 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 103 | 117 | ||
Nuclear decomissioning trusts - Municipal debt securities | 121 | 111 | ||
Nuclear decommissioning trusts - Other debt securities | 200 | 153 | ||
Nuclear decommissioning trusts - Total debt securities | 424 | 381 | ||
Total nuclear decommissioning trusts | 1,061 | [1] | 995 | [1] |
Commodity contracts subject to rate recovery, assets | 117 | 130 | ||
Commodity contracts not subject to rate recovery, assets | 1 | 1 | ||
Total fair value of assets measured on a recurring basis | 1,179 | 1,126 | ||
Interest rate instruments, liabilities | 48 | 55 | ||
Commodity contracts subject to rate recovery, liabilities | 10 | 12 | ||
Total fair value of liabilities measured on a recurring basis | 58 | 67 | ||
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 | 3 | ||
Commodity contracts not subject to rate recovery, assets | 3 | 2 | ||
Total fair value of assets measured on a recurring basis | 5 | 5 | ||
Commodity contracts subject to rate recovery, liabilities | 0 | 1 | ||
Total fair value of liabilities measured on a recurring basis | 0 | 1 | ||
Level 1 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nuclear decommissioning trusts - equity securities | 637 | 614 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 56 | 59 | ||
Nuclear decomissioning trusts - Municipal debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Other debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Total debt securities | 56 | 59 | ||
Total nuclear decommissioning trusts | 693 | [1] | 673 | [1] |
Interest rate instruments, assets | 0 | 0 | ||
Commodity contracts subject to rate recovery, assets | 0 | 2 | ||
Commodity contracts not subject to rate recovery, assets | 7 | 1 | ||
Total fair value of assets measured on a recurring basis | 700 | 676 | ||
Interest rate instruments, liabilities | 0 | 0 | ||
Commodity contracts subject to rate recovery, liabilities | 3 | 0 | ||
Commodity contracts not subject to rate recovery, liabilities | 2 | 4 | ||
Total fair value of liabilities measured on a recurring basis | 5 | 4 | ||
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 | 637 | 614 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 56 | 59 | ||
Nuclear decomissioning trusts - Municipal debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Other debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Total debt securities | 56 | 59 | ||
Total nuclear decommissioning trusts | 693 | [1] | 673 | [1] |
Commodity contracts subject to rate recovery, assets | 0 | 1 | ||
Commodity contracts not subject to rate recovery, assets | 0 | 0 | ||
Total fair value of assets measured on a recurring basis | 693 | 674 | ||
Interest rate instruments, liabilities | 0 | 0 | ||
Commodity contracts subject to rate recovery, liabilities | 3 | 0 | ||
Total fair value of liabilities measured on a recurring basis | 3 | 0 | ||
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 | 0 | 1 | ||
Commodity contracts not subject to rate recovery, assets | 0 | 0 | ||
Total fair value of assets measured on a recurring basis | 0 | 1 | ||
Commodity contracts subject to rate recovery, liabilities | 0 | 0 | ||
Total fair value of liabilities measured on a recurring basis | 0 | 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 | 47 | 58 | ||
Nuclear decomissioning trusts - Municipal debt securities | 121 | 111 | ||
Nuclear decommissioning trusts - Other debt securities | 200 | 153 | ||
Nuclear decommissioning trusts - Total debt securities | 368 | 322 | ||
Total nuclear decommissioning trusts | 368 | [1] | 322 | [1] |
Interest rate instruments, assets | 51 | 56 | ||
Commodity contracts subject to rate recovery, assets | 3 | 1 | ||
Commodity contracts not subject to rate recovery, assets | 4 | 5 | ||
Total fair value of assets measured on a recurring basis | 426 | 384 | ||
Interest rate instruments, liabilities | 121 | 117 | ||
Commodity contracts subject to rate recovery, liabilities | 10 | 13 | ||
Commodity contracts not subject to rate recovery, liabilities | 3 | 8 | ||
Total fair value of liabilities measured on a recurring basis | 134 | 138 | ||
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 | 47 | 58 | ||
Nuclear decomissioning trusts - Municipal debt securities | 121 | 111 | ||
Nuclear decommissioning trusts - Other debt securities | 200 | 153 | ||
Nuclear decommissioning trusts - Total debt securities | 368 | 322 | ||
Total nuclear decommissioning trusts | 368 | [1] | 322 | [1] |
Commodity contracts subject to rate recovery, assets | 2 | 1 | ||
Commodity contracts not subject to rate recovery, assets | 0 | 0 | ||
Total fair value of assets measured on a recurring basis | 370 | 323 | ||
Interest rate instruments, liabilities | 48 | 55 | ||
Commodity contracts subject to rate recovery, liabilities | 10 | 12 | ||
Total fair value of liabilities measured on a recurring basis | 58 | 67 | ||
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 | 1 | 0 | ||
Total fair value of assets measured on a recurring basis | 1 | 0 | ||
Commodity contracts subject to rate recovery, liabilities | 0 | 1 | ||
Total fair value of liabilities measured on a recurring basis | 0 | 1 | ||
Level 3 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 | ||
Nuclear decomissioning trusts - Municipal debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Other debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Total debt securities | 0 | 0 | ||
Total nuclear decommissioning trusts | 0 | [1] | 0 | [1] |
Interest rate instruments, assets | 0 | 0 | ||
Commodity contracts subject to rate recovery, assets | 87 | 99 | ||
Commodity contracts not subject to rate recovery, assets | 0 | 0 | ||
Total fair value of assets measured on a recurring basis | 87 | 99 | ||
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 | 87 | 99 | ||
Commodity contracts not subject to rate recovery, assets | 0 | 0 | ||
Total fair value of assets measured on a recurring basis | 87 | 99 | ||
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 | 0 | ||
Total fair value of liabilities measured on a recurring basis | 0 | 0 | ||
Collateral Netted [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nuclear decommissioning trusts - equity securities | 0 | [2] | 0 | [2] |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | [2] | 0 | [2] |
Nuclear decomissioning trusts - Municipal debt securities | 0 | [2] | 0 | [2] |
Nuclear decommissioning trusts - Other debt securities | 0 | [2] | 0 | [2] |
Nuclear decommissioning trusts - Total debt securities | 0 | [2] | 0 | [2] |
Total nuclear decommissioning trusts | 0 | [1],[2] | 0 | [1],[2] |
Interest rate instruments, assets | 0 | [2] | 0 | [2] |
Commodity contracts subject to rate recovery, assets | 30 | [2] | 31 | [2] |
Commodity contracts not subject to rate recovery, assets | 15 | [2] | 17 | [2] |
Total fair value of assets measured on a recurring basis | 45 | [2] | 48 | [2] |
Interest rate instruments, liabilities | 0 | [2] | 0 | [2] |
Commodity contracts subject to rate recovery, liabilities | -3 | [2] | 0 | [2] |
Commodity contracts not subject to rate recovery, liabilities | -2 | [2] | -5 | [2] |
Total fair value of liabilities measured on a recurring basis | -5 | [2] | -5 | [2] |
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 | [2] | 0 | [2] |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | [2] | 0 | [2] |
Nuclear decomissioning trusts - Municipal debt securities | 0 | [2] | 0 | [2] |
Nuclear decommissioning trusts - Other debt securities | 0 | [2] | 0 | [2] |
Nuclear decommissioning trusts - Total debt securities | 0 | [2] | 0 | [2] |
Total nuclear decommissioning trusts | 0 | [1],[2] | 0 | [1],[2] |
Commodity contracts subject to rate recovery, assets | 28 | [2] | 29 | [2] |
Commodity contracts not subject to rate recovery, assets | 1 | [2] | 1 | [2] |
Total fair value of assets measured on a recurring basis | 29 | [2] | 30 | [2] |
Interest rate instruments, liabilities | 0 | [2] | 0 | [2] |
Commodity contracts subject to rate recovery, liabilities | -3 | [2] | 0 | [2] |
Total fair value of liabilities measured on a recurring basis | -3 | [2] | 0 | [2] |
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 | 2 | [2] | 2 | [2] |
Commodity contracts not subject to rate recovery, assets | 2 | [2] | 2 | [2] |
Total fair value of assets measured on a recurring basis | 4 | [2] | 4 | [2] |
Commodity contracts subject to rate recovery, liabilities | 0 | [2] | 0 | [2] |
Total fair value of liabilities measured on a recurring basis | $0 | [2] | $0 | [2] |
[1] | Excludes cash balances and cash equivalents. | |||
[2] | Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. |
FAIR_VALUE_MEASUREMENTS_3_Deta
FAIR VALUE MEASUREMENTS 3 (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | $85,000,000 | $47,000,000 | $99,000,000 | $61,000,000 |
Realized and unrealized gains (losses) | 3,000,000 | 1,000,000 | 9,000,000 | -2,000,000 |
Allocated transmission instruments | 9,000,000 | 15,000,000 | 10,000,000 | 15,000,000 |
Settlements | -10,000,000 | -6,000,000 | -31,000,000 | -17,000,000 |
Balance at end of period | 87,000,000 | 57,000,000 | 87,000,000 | 57,000,000 |
Change in unrealized gains (losses) relating to instruments still held at period end | 0 | 2,000,000 | 0 | 1,000,000 |
CRR Auction Rate Per MWh, Minimum | -6,000,000 | -8,000,000 | -6,000,000 | -8,000,000 |
CRR Auction Rate Per MWh, Maximum | $12,000,000 | $8,000,000 | $12,000,000 | $8,000,000 |
FAIR_VALUE_MEASUREMENTS_4_Deta
FAIR VALUE MEASUREMENTS 4 (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Carrying Amount | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | $12,346 | [1] | $12,022 | [1] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 20 | 20 | ||
Debt Instrument Unamortized Discount | 21 | 17 | ||
Capital Lease Obligations | 300 | 195 | ||
Commercial Paper Noncurrent | 0 | 200 | ||
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 | 4,463 | [2] | 4,386 | [2] |
Debt Instrument Unamortized Discount | 10 | 11 | ||
Capital Lease Obligations | 235 | 179 | ||
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 | 1,913 | [3] | 1,413 | [3] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 22 | 22 | ||
Debt Instrument Unamortized Discount | 7 | 4 | ||
Capital Lease Obligations | ' | 2 | ||
Fair Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 13,499 | [1] | 12,676 | [1] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 23 | 20 | ||
Fair Value | Level 1 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 0 | [1] | 0 | [1] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 0 | 0 | ||
Fair Value | Level 2 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 12,626 | [1] | 11,925 | [1] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 23 | 20 | ||
Fair Value | Level 3 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 873 | [1] | 751 | [1] |
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 | 4,890 | [2] | 4,561 | [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 | [2] | 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 | 4,463 | [2] | 4,226 | [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 | 427 | [2] | 335 | [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 | 2,053 | [3] | 1,469 | [3] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 24 | 22 | ||
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 | [3] | 0 | [3] |
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 | 2,053 | [3] | 1,469 | [3] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 24 | 22 | ||
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 | [3] | 0 | [3] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | $0 | $0 | ||
[1] | Before reductions for unamortized discount (net of premium) of $21 million and $17 million at September 30, 2014 and December 31, 2013, respectively, and excluding build-to-suit and capital leases of $300 million and $195 million at September 30, 2014 and December 31, 2013, respectively, and commercial paper classified as long-term debt of $200 million at December 31, 2013. 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 $10 million and $11 million at September 30, 2014 and December 31, 2013, respectively, and excluding capital leases of $235 million and $179 million at September 30, 2014 and December 31, 2013, respectively. | |||
[3] | Before reductions for unamortized discount of $7 million and $4 million at September 30, 2014 and December 31, 2013, respectively, and excluding capital leases of $2 million at December 31, 2013. |
FAIR_VALUE_MEASUREMENTS_5_Deta
FAIR VALUE MEASUREMENTS 5 (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Jul. 16, 2014 | |
Energia Sierra Juarez [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Equity Method Investment Ownership Percentage | ' | 50.00% |
Deconsolidation Gain Or Loss Amount After Tax | $14,000,000 | ' |
Proceeds from Divestiture of Businesses | 26,000,000 | ' |
Proceeds From Sale of Assets and Investments | 24,000,000 | ' |
Gain attributable to remeasurement, after tax | 7,000,000 | ' |
Deconsolidation Gain Or Loss Amount PreTax | 19,000,000 | ' |
CashSold | $2,000,000 | ' |
Market Approach Valuation Technique [Member] | Level 2 | One Hundred Percent [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Fair value inputs, equity sale offer price | 100.00% | ' |
Equity Method Investments [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Fair value inputs, equity sale offer price | 100.00% | ' |
NUCLEAR_PLANT_1_Details
NUCLEAR PLANT 1 (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 01, 2012 | Sep. 30, 2014 | Jun. 06, 2013 | ||
To SDGE [Member] | To Ratepayers [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] | 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] | Nuclear Plant, SDGE [Member] | Nuclear Plant, SDGE [Member] | ||||||||
Nuclear Plant [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Nuclear Plant, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ||
Nuclear Plant, Replacement Power Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $165 | ||
Authorized Annual Recovery Amount, Nuclear Decommissioning Trust Funding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ||
Requested Annual Recovery Amount, Nuclear Decommissioning Trust Funding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 | ' | ||
Nuclear decommissioning trusts | 1,087 | ' | 1,087 | ' | 1,034 | [1] | ' | ' | 1,087 | ' | 1,087 | ' | ' | ' | 1,034 | [1] | ' | ' | ' |
Nuclear Plant Investment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Regulatory Asset, Nuclear Plant Closure | ' | ' | ' | ' | ' | ' | ' | 192 | ' | 192 | ' | ' | ' | ' | ' | ' | ' | ||
Utility plant closure (adjustment) loss | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -13 | 200 | ' | ' | ' | ' | ' | ' | ||
Plant closure (adjustment) loss | 0 | 0 | -13 | 200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total Loss From Plant Closure After Adjustment For Settlement, Pretax | ' | ' | ' | ' | ' | ' | ' | ' | ' | 187 | ' | ' | ' | ' | ' | ' | ' | ||
Adjustment To Loss From Plant Closure, After Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ||
Loss from plant closure, after-tax (cumulative) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128 | 119 | ' | ' | ' | ' | ' | ' | ||
Nuclear Plant, Return On Ratebase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | 2.35% | ' | ' | ' | ' | ||
Charge To Reduce Certain Tax Regulatory Assets Attributable To Nuclear Plant | ' | ' | 17 | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' | ' | ' | ' | ' | ||
Nuclear Plant, Net Book Investment, Steam Generator Replacement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 160 | ' | ' | ||
Nuclear Plant, Settlement Agreement [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Nuclear Plant, Insurance Recovery Allocation Other Policies | ' | ' | ' | ' | ' | 17.50% | 82.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Nuclear Plant, Insurance Recovery Allocation Accidental Outage Policy | ' | ' | ' | ' | ' | 5.00% | 95.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Proportionate Share Of Proceeds From Sale of Materials, Supplies, Fuel Retained | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Proportionate Share Of Excess Of Cancelled Contract Obligations Over Cancellation Costs Recovered | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Nuclear Plant, Lawsuit Recovery Allocation | ' | ' | ' | ' | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Other Commitments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Five-year research funding commitment, annual amount | ' | ' | ' | ' | ' | ' | ' | $1 | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Derived from audited financial statements. |
SONGS_NDT_1_Details
SONGS NDT 1 (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ||||
Cost | $649 | ' | ' | ' | $627 | ||||
Gross Unrealized Gains | 444 | ' | ' | ' | 417 | ||||
Gross Unrealized Loss | -6 | ' | ' | ' | -10 | ||||
Estimated Fair Value | 1,087 | ' | ' | ' | 1,034 | ||||
Proceeds from sales | 148 | [1] | 181 | [1] | 498 | [1] | 507 | [1] | ' |
Gross realized gains | 5 | 2 | 9 | 13 | ' | ||||
Gross realized losses | -3 | -8 | -8 | -15 | ' | ||||
Total Debt Securities | ' | ' | ' | ' | ' | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ||||
Cost | 411 | ' | ' | ' | 381 | ||||
Gross Unrealized Gains | 17 | ' | ' | ' | 8 | ||||
Gross Unrealized Loss | -4 | ' | ' | ' | -8 | ||||
Estimated Fair Value | 424 | ' | ' | ' | 381 | ||||
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 | 99 | [2] | ' | ' | ' | 116 | |||
Gross Unrealized Gains | 4 | [2] | ' | ' | ' | 3 | |||
Gross Unrealized Loss | 0 | [2] | ' | ' | ' | -2 | |||
Estimated Fair Value | 103 | [2] | ' | ' | ' | 117 | |||
Municipal Bonds | ' | ' | ' | ' | ' | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ||||
Cost | 114 | [3] | ' | ' | ' | 110 | |||
Gross Unrealized Gains | 7 | [3] | ' | ' | ' | 2 | |||
Gross Unrealized Loss | 0 | [3] | ' | ' | ' | -1 | |||
Estimated Fair Value | 121 | [3] | ' | ' | ' | 111 | |||
Other Debt Securities | ' | ' | ' | ' | ' | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ||||
Cost | 198 | [4] | ' | ' | ' | 155 | |||
Gross Unrealized Gains | 6 | [4] | ' | ' | ' | 3 | |||
Gross Unrealized Loss | -4 | [4] | ' | ' | ' | -5 | |||
Estimated Fair Value | 200 | [4] | ' | ' | ' | 153 | |||
Equity Securities | ' | ' | ' | ' | ' | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ||||
Cost | 212 | ' | ' | ' | 207 | ||||
Gross Unrealized Gains | 427 | ' | ' | ' | 409 | ||||
Gross Unrealized Loss | -2 | ' | ' | ' | -2 | ||||
Estimated Fair Value | 637 | ' | ' | ' | 614 | ||||
Cash And Cash Equivalents | ' | ' | ' | ' | ' | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ||||
Cost | 26 | ' | ' | ' | 39 | ||||
Gross Unrealized Gains | 0 | ' | ' | ' | 0 | ||||
Gross Unrealized Loss | 0 | ' | ' | ' | 0 | ||||
Estimated Fair Value | $26 | ' | ' | ' | $39 | ||||
[1] | (1) Excludes securities that are held to maturity. | ||||||||
[2] | Maturity dates are 2016-2060 | ||||||||
[3] | Maturity dates are 2014-2062 | ||||||||
[4] | Maturity dates are 2014-2096 |
CALIFORNIA_UTILITIES_REGULATOR1
CALIFORNIA UTILITIES' REGULATORY MATTERS - SCHEDULE OF REGULATORY AMOUNTS 1 (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
FERC Electric Transmission Formula Rate Filing [Line Items] | ' | ' | ' | ' |
Authorized Ferc Return On Equity | ' | ' | ' | 10.05% |
Ferc Return On Equity Requested | ' | ' | ' | 11.30% |
Energy Resource Recovery Account [Line Items] | ' | ' | ' | ' |
Authorized Energy Resource Recovery Revenue Requirement Trigger Increase Through Year End 2015 | ' | ' | ' | $221 |
Authorized 2013 Energy Resource Recovery Revenue Requirement | ' | ' | ' | 988 |
Requested 2014 Energy Resource Recovery Revenue Requirement | ' | ' | ' | 1,230 |
Requested 2014 Energy Resource Recovery Revenue Requirement Increase | ' | ' | ' | 242 |
San Diego Gas and Electric Company and Subsidiary [Member] | Year 2012 [Member] | ' | ' | ' | ' |
General Rate Case [Line Items] | ' | ' | ' | ' |
General Rate Case, Incremental Earnings Impact Recorded In Second Quarter 2013 | 17 | ' | 52 | ' |
General Rate Case, Cumulative Earnings Impact | ' | 69 | ' | ' |
General Rate Case, Regulatory Asset | ' | ' | ' | 203 |
General Rate Case, Noncurrent Regulatory Asset | ' | ' | ' | 41 |
San Diego Gas and Electric Company and Subsidiary [Member] | Year 2016 [Member] | ' | ' | ' | ' |
General Rate Case [Line Items] | ' | ' | ' | ' |
General Rate Case, Proposed Revenue Requirement Increase | ' | ' | ' | 168 |
General Rate Case, Percentage Increase In Electric Rate Requested | ' | ' | ' | 0.90% |
General Rate Case, Percentage Increase In Gas Rate Requested | ' | ' | ' | 0.50% |
Southern California Gas Company [Member] | Year 2012 [Member] | ' | ' | ' | ' |
General Rate Case [Line Items] | ' | ' | ' | ' |
General Rate Case, Incremental Earnings Impact Recorded In Second Quarter 2013 | 12 | ' | 25 | ' |
General Rate Case, Cumulative Earnings Impact | ' | 37 | ' | ' |
General Rate Case, Regulatory Asset | ' | ' | ' | 65 |
General Rate Case, Noncurrent Regulatory Asset | ' | ' | ' | 13 |
Southern California Gas Company [Member] | Year 2016 [Member] | ' | ' | ' | ' |
General Rate Case [Line Items] | ' | ' | ' | ' |
General Rate Case, Proposed Revenue Requirement Increase | ' | ' | ' | $290 |
General Rate Case, Percentage Increase In Gas Rate Requested | ' | ' | ' | 5.50% |
CALIFORNIA_UTILITIES_REGULATOR2
CALIFORNIA UTILITIES' REGULATORY MATTERS - SCHEDULE OF REGULATORY AMOUNTS 2 (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
San Diego Gas and Electric Company and Subsidiary [Member] | Year 2013 [Member] | ' |
Utility Incentive Awards [Line Items] | ' |
Requested Energy Efficiency Awards | $2,500 |
San Diego Gas and Electric Company and Subsidiary [Member] | Year 2012 and 2013 [Member] | ' |
Utility Incentive Awards [Line Items] | ' |
Requested Energy Efficiency Awards | 7,600 |
Southern California Gas Company [Member] | Year 2013 [Member] | ' |
Utility Incentive Awards [Line Items] | ' |
Approved Gas Cost Incentive Mechanism Award, Unrecorded | 5,800 |
Requested Energy Efficiency Awards | 1,500 |
Southern California Gas Company [Member] | Year 2012 and 2013 [Member] | ' |
Utility Incentive Awards [Line Items] | ' |
Requested Energy Efficiency Awards | 5,800 |
Southern California Gas Company [Member] | Year 2014 [Member] | ' |
Utility Incentive Awards [Line Items] | ' |
Requested Gas Cost Incentive Mechanism Award | $13,700 |
CALIFORNIA_UTILITIES_REGULATOR3
CALIFORNIA UTILITIES' REGULATORY MATTERS - SCHEDULE OF UTILITY PROJECTS (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Pipeline Safety Phase 1 [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' |
Schedule Of Utility Projects [Line Items] | ' |
Pipeline Safety Plan Regulatory Account | $200,000 |
Pipeline Safety Phase 1 [Member] | Southern California Gas Company [Member] | ' |
Schedule Of Utility Projects [Line Items] | ' |
Pipeline Safety Plan Regulatory Account | 47,000,000 |
Disallowed Costs Impact On Earnings After Tax | 5,000,000 |
South Orange County Reliability Enhancement [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' |
Schedule Of Utility Projects [Line Items] | ' |
Estimated Project Cost, Lower Range | 400,000,000 |
Estimated Project Cost, Upper Range | 500,000,000 |
Cleveland National Forest Transmissions Projects [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' |
Schedule Of Utility Projects [Line Items] | ' |
Estimated Project Cost, Lower Range | 400,000,000 |
Estimated Project Cost, Upper Range | 450,000,000 |
South Bay Substation [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' |
Schedule Of Utility Projects [Line Items] | ' |
Estimated Project Cost, Lower Range | 145,000,000 |
Estimated Project Cost, Upper Range | 175,000,000 |
Southern Gas System Member [Member] | Utility Subsidiaries [Member] | ' |
Schedule Of Utility Projects [Line Items] | ' |
Estimated Project Cost, Lower Range | 800,000,000 |
Estimated Project Cost, Upper Range | 850,000,000 |
Sycamore Penasquitos Transmission Project [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' |
Schedule Of Utility Projects [Line Items] | ' |
Estimated Project Cost, Lower Range | 120,000,000 |
Estimated Project Cost, Upper Range | $150,000,000 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS (Details) | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
USD ($) | San Diego Gas and Electric Company and Subsidiary [Member] | Southern California Gas Company [Member] | Loss from Catastrophes [Member] | Liberty Gas Storage Litigation [Member] | HMRC VAT Claim [Member] | Sunrise Powerlink Construction [Member] | Sunrise San Diego County Mechanics Lien [Member] | Sunrise Imperial County Mechanics Lien [Member] | Rim Rock [Member] | |
USD ($) | USD ($) | San Diego Gas and Electric Company and Subsidiary [Member] | USD ($) | GBP (£) | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency Accrual, at Carrying Value | $144,000,000 | $127,000,000 | $11,000,000 | ' | ' | ' | ' | ' | ' | ' |
Payments for Legal Settlements in April 2010, CPUC Proceedings | ' | ' | ' | 14,750,000 | ' | ' | ' | ' | ' | ' |
Number Of Remaining Cases Set for Trial | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' |
Claims Payments By Insurers To All Claimants | ' | ' | ' | 1,600,000,000 | ' | ' | ' | ' | ' | ' |
Percentage of Total Claims to be Paid by Company | ' | ' | ' | 57.50% | ' | ' | ' | ' | ' | ' |
Total Settled Claims | ' | ' | ' | 1,250,000,000 | ' | ' | ' | ' | ' | ' |
Total Remaining Settlement Demands | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' |
Loss Contingency Number Of Plaintiffs | ' | ' | ' | 6,500 | ' | ' | ' | ' | ' | ' |
Loss Contingency, Number Of Claims | ' | ' | ' | 19,000 | ' | ' | ' | ' | ' | ' |
Liability Insurance Coverage, Maximum | ' | ' | ' | 1,100,000,000 | ' | ' | ' | ' | ' | ' |
Litigation Settlement Amount, Gross, Recovered From Third Parties | ' | ' | ' | 824,000,000 | ' | ' | ' | ' | ' | ' |
Loss Contingency Monetary Damages Sought | ' | ' | ' | ' | 56,700,000 | ' | ' | ' | ' | ' |
Counterclaim For Damages On Contract Termination | ' | ' | ' | ' | 215,000,000 | ' | ' | ' | ' | ' |
Payments For Legal Settlements In Excess Of Recovered Amounts | ' | ' | ' | 426,000,000 | ' | ' | ' | ' | ' | ' |
VAT Tax Claim Amount | ' | ' | ' | ' | ' | 86,000,000 | ' | ' | ' | ' |
Regulatory Assets Arising From Wildfire Litigation Costs | ' | ' | ' | 371,000,000 | ' | ' | ' | ' | ' | ' |
Potential After-Tax Charge for Nonrecovery of CPUC Regulatory Assets | ' | ' | ' | 210,000,000 | ' | ' | ' | ' | ' | ' |
Portion of Regulatory Assets Arising From Wildfire Litigation Related To CPUC Operations | ' | ' | ' | 357,000,000 | ' | ' | ' | ' | ' | ' |
Fixed Fee Contract Amount | ' | ' | ' | ' | ' | ' | 456,000,000 | ' | ' | ' |
Unbilled Change Orders | ' | ' | ' | ' | ' | ' | 180,000,000 | 99,000,000 | 81,000,000 | ' |
Estimated Tax Equity Investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | $285,000,000 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - NUCLEAR INSURANCE (Details) (San Diego Gas and Electric Company and Subsidiary [Member], USD $) | Sep. 30, 2014 |
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 Thousands, unless otherwise specified | Sep. 30, 2014 |
Cameron L N G [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Long-term Purchase Commitment, Amount | $6,000,000 |
Third Limited Notice To Proceed [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Long-term Purchase Commitment, Amount | $374,700 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS 2 (Details) (USD $) | Sep. 30, 2014 |
San Diego Gas and Electric Company and Subsidiary [Member] | Purchased Power Contracts [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Increase (Decrease) In Contractual Commitment Amount | $1,100,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | -2,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | -46,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Three Years | -1,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Four Years | 24,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Five Years | 54,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Thereafter | 1,100,000,000 |
San Diego Gas and Electric Company and Subsidiary [Member] | Construction and Development Contracts [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Increase (Decrease) In Contractual Commitment Amount | 161,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | 20,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | 116,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Three Years | 12,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Four Years | 9,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Five Years | 6,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Thereafter | -2,000,000 |
Southern California Gas Company [Member] | Natural Gas Contracts [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Increase (Decrease) In Contractual Commitment Amount | -110,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | -140,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | 30,000,000 |
Southern California Gas Company [Member] | Construction and Development Contracts [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Increase (Decrease) In Contractual Commitment Amount | 119,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | 71,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | 65,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Three Years | 1,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Four Years | -18,000,000 |
Sempra Mexico [Member] | Construction and Development Contracts [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Increase (Decrease) In Contractual Commitment Amount | -115,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | -81,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | -33,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Thereafter | -1,000,000 |
Sempra Natural Gas [Member] | Natural Gas Contracts [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Increase (Decrease) In Contractual Commitment Amount | 567,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | -57,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | 174,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Three Years | 159,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Four Years | 162,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Five Years | 129,000,000 |
Sempra Natural Gas [Member] | Liquefied Natural Gas Contracts [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | -624,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | -11,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Three Years | 10,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Four Years | 30,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Five Years | 36,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Thereafter | 345,000,000 |
Sempra Renewables [Member] | Construction and Development Contracts [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Increase (Decrease) In Contractual Commitment Amount | -544,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | -504,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | ($40,000,000) |
COMMITMENTS_AND_CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS 3 (Details) (Sempra Renewables [Member], USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Sempra Renewables [Member] | ' |
Operating Leases [Line Items] | ' |
Increase (Decrease) In Operating Lease Future Minimum Payments, Due Current | ($3) |
Increase (Decrease) In Operating Lease Future Minimum Payments, Due In Two Years | -2 |
Increase (Decrease) In Operating Lease Future Minimum Payments, Due In Three Years | -2 |
Increase (Decrease) In Operating Lease Future Minimum Payments, Due In Four Years | -2 |
Increase (Decrease) In Operating Lease Future Minimum Payments, Due In Five Years | -2 |
Increase (Decrease) In Operating Lease Future Minimum Payments, Due Thereafter | -72 |
Increase (Decrease) In Operating Leases Amount | ($83) |
COMMITMENTS_AND_CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS 4 (Details) (Power Purchase Agreements [Member], San Diego Gas and Electric Company and Subsidiary [Member], USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Power Purchase Agreements [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' |
Capital Leases [Line Items] | ' |
Increase (Decrease) In Capital Leases Payments, Due Current | ($16) |
Increase (Decrease) In Capital Leases Payments, Due In Two Years | 7 |
Increase (Decrease) In Capital Leases Payments, Due In Three Years | 7 |
Increase (Decrease) In Capital Leases Payments, Due In Four Years | 7 |
Increase (Decrease) In Capital Leases Payments, Due In Five Years | 7 |
Increase (Decrease) In Capital Leases Payments, Due Thereafter | 155 |
Capital Lease Obligations | $60 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenue | $2,815 | $2,551 | $8,288 | $7,852 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 100.00% | 100.00% | 100.00% | 100.00% | ' | |||||
Segment reporting information, Interest Expense | 144 | 137 | 418 | 413 | ' | |||||
Segment reporting information, Interest Income | 6 | 5 | 15 | 15 | ' | |||||
Segment reporting information, Depreciation and Amortization | 292 | 286 | 866 | 828 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 100.00% | 100.00% | 100.00% | 100.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | 71 | 117 | 291 | 327 | ' | |||||
Segment reporting information, Equity Earnings (Losses) Recorded Before Tax | 22 | 3 | 62 | 21 | ' | |||||
Segment reporting information, Equity Earnings (Losses) Recorded Net of Tax | 7 | 8 | 22 | 13 | ' | |||||
Segment reporting information, Earnings (Losses) | 348 | 296 | 864 | 719 | ' | |||||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 100.00% | 100.00% | 100.00% | 100.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for property plant and equipment | ' | ' | 2,320 | 1,785 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 100.00% | 100.00% | ' | |||||
Segment reporting information, Assets | 38,982 | ' | 38,982 | ' | 37,244 | [1] | ||||
Segment reporting information, Percentage of Consolidated Assets | 100.00% | ' | 100.00% | ' | 100.00% | |||||
Segment Reporting Information Investments In Equity Method Investees | 1,705 | ' | 1,705 | ' | 1,485 | |||||
S D G E Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenue | 1,233 | 1,063 | 3,283 | 3,066 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 44.00% | 42.00% | 40.00% | 39.00% | ' | |||||
Segment reporting information, Interest Expense | 51 | 50 | 152 | 147 | ' | |||||
Segment reporting information, Interest Income | 0 | 0 | 0 | 1 | ' | |||||
Segment reporting information, Depreciation and Amortization | 134 | 126 | 395 | 367 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 46.00% | 44.00% | 46.00% | 44.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | 65 | 84 | 217 | 147 | ' | |||||
Segment reporting information, Earnings (Losses) | 157 | 129 | [2] | 379 | 285 | [2] | ' | |||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 45.00% | 44.00% | 44.00% | 40.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for property plant and equipment | ' | ' | 790 | 679 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 34.00% | 38.00% | ' | |||||
Segment reporting information, Assets | 15,975 | ' | 15,975 | ' | 15,377 | |||||
Segment reporting information, Percentage of Consolidated Assets | 41.00% | ' | 41.00% | ' | 41.00% | |||||
Segment Reporting Information, Intersegment Revenues | 2 | 3 | 7 | 7 | ' | |||||
So Cal Gas Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenue | 855 | 807 | 2,857 | 2,694 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 30.00% | 32.00% | 35.00% | 34.00% | ' | |||||
Segment reporting information, Interest Expense | 17 | 17 | 50 | 52 | ' | |||||
Segment reporting information, Depreciation and Amortization | 109 | 100 | 321 | 280 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 37.00% | 35.00% | 37.00% | 34.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | 44 | 38 | 110 | 107 | ' | |||||
Segment reporting information, Earnings (Losses) | 98 | [3] | 102 | [3] | 256 | [3] | 266 | [3] | ' | |
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 28.00% | 34.00% | 30.00% | 37.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for property plant and equipment | ' | ' | 764 | 521 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 33.00% | 29.00% | ' | |||||
Segment reporting information, Assets | 9,954 | ' | 9,954 | ' | 9,147 | |||||
Segment reporting information, Percentage of Consolidated Assets | 26.00% | ' | 26.00% | ' | 25.00% | |||||
Segment Reporting Information, Intersegment Revenues | 17 | 17 | 51 | 48 | ' | |||||
Sempra South American Utilities Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenue | 379 | 364 | 1,147 | 1,119 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 14.00% | 14.00% | 14.00% | 14.00% | ' | |||||
Segment reporting information, Interest Expense | 7 | 8 | 24 | 20 | ' | |||||
Segment reporting information, Interest Income | 4 | 3 | 10 | 11 | ' | |||||
Segment reporting information, Depreciation and Amortization | 14 | 14 | 41 | 44 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 5.00% | 5.00% | 5.00% | 5.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | 26 | 16 | 59 | 50 | ' | |||||
Segment reporting information, Equity Earnings (Losses) Recorded Net of Tax | -2 | 0 | -4 | -14 | ' | |||||
Segment reporting information, Earnings (Losses) | 32 | 39 | 109 | 110 | ' | |||||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 9.00% | 13.00% | 13.00% | 15.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for property plant and equipment | ' | ' | 126 | 120 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 5.00% | 7.00% | ' | |||||
Segment reporting information, Assets | 3,463 | ' | 3,463 | ' | 3,531 | |||||
Segment reporting information, Percentage of Consolidated Assets | 9.00% | ' | 9.00% | ' | 10.00% | |||||
Segment Reporting Information Investments In Equity Method Investees | -7 | ' | -7 | ' | -3 | |||||
Sempra Mexico Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenue | 234 | 188 | 621 | 519 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 8.00% | 7.00% | 7.00% | 7.00% | ' | |||||
Segment reporting information, Interest Expense | 5 | 0 | 13 | 5 | ' | |||||
Segment reporting information, Interest Income | 1 | 0 | 2 | 1 | ' | |||||
Segment reporting information, Depreciation and Amortization | 16 | 16 | 47 | 47 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 6.00% | 5.00% | 5.00% | 6.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | 13 | 16 | 37 | 44 | ' | |||||
Segment reporting information, Equity Earnings (Losses) Recorded Net of Tax | 9 | 8 | 26 | 27 | ' | |||||
Segment reporting information, Earnings (Losses) | 63 | 39 | 139 | 96 | ' | |||||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 18.00% | 13.00% | 16.00% | 13.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for property plant and equipment | ' | ' | 262 | 280 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 11.00% | 16.00% | ' | |||||
Segment reporting information, Assets | 3,404 | ' | 3,404 | ' | 3,246 | |||||
Segment reporting information, Percentage of Consolidated Assets | 9.00% | ' | 9.00% | ' | 9.00% | |||||
Segment Reporting Information Investments In Equity Method Investees | 427 | ' | 427 | ' | 379 | |||||
Segment Reporting Information, Intersegment Revenues | 23 | 23 | 68 | 68 | ' | |||||
Sempra Renewables Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenue | 10 | 25 | 25 | 76 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 0.00% | 1.00% | 0.00% | 1.00% | ' | |||||
Segment reporting information, Interest Expense | 2 | 5 | 3 | 22 | ' | |||||
Segment reporting information, Interest Income | 0 | 7 | 0 | 14 | ' | |||||
Segment reporting information, Depreciation and Amortization | 1 | 5 | 4 | 20 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 0.00% | 2.00% | 0.00% | 3.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | -16 | 9 | -35 | -8 | ' | |||||
Segment reporting information, Equity Earnings (Losses) Recorded Before Tax | 7 | -10 | 18 | -12 | ' | |||||
Segment reporting information, Earnings (Losses) | 17 | 37 | 63 | 56 | ' | |||||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 5.00% | 13.00% | 7.00% | 8.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for property plant and equipment | ' | ' | 174 | 119 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 8.00% | 7.00% | ' | |||||
Segment reporting information, Assets | 1,379 | ' | 1,379 | ' | 1,219 | |||||
Segment reporting information, Percentage of Consolidated Assets | 3.00% | ' | 3.00% | ' | 3.00% | |||||
Segment Reporting Information Investments In Equity Method Investees | 871 | ' | 871 | ' | 707 | |||||
Sempra Natural Gas Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenue | 252 | 212 | 748 | 683 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 9.00% | 8.00% | 9.00% | 9.00% | ' | |||||
Segment reporting information, Interest Expense | 25 | 34 | 90 | 80 | ' | |||||
Segment reporting information, Interest Income | 24 | 26 | 87 | 57 | ' | |||||
Segment reporting information, Depreciation and Amortization | 17 | 20 | 50 | 60 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 6.00% | 7.00% | 6.00% | 7.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | -31 | -4 | -22 | 35 | ' | |||||
Segment reporting information, Equity Earnings (Losses) Recorded Before Tax | 15 | 13 | 44 | 33 | ' | |||||
Segment reporting information, Earnings (Losses) | 26 | -7 | 39 | 55 | ' | |||||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 8.00% | -2.00% | 4.00% | 8.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for property plant and equipment | ' | ' | 192 | 65 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 8.00% | 3.00% | ' | |||||
Segment reporting information, Assets | 6,617 | ' | 6,617 | ' | 7,200 | |||||
Segment reporting information, Percentage of Consolidated Assets | 17.00% | ' | 17.00% | ' | 19.00% | |||||
Segment Reporting Information Investments In Equity Method Investees | 342 | ' | 342 | ' | 329 | |||||
Segment Reporting Information, Intersegment Revenues | 107 | 65 | 266 | 180 | ' | |||||
Adjustments and Eliminations [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenue | 1 | 0 | -1 | -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 | -26 | -37 | -92 | -95 | ' | |||||
Segment reporting information, Interest Income | -22 | -33 | -84 | -70 | ' | |||||
Intersegment Revenues Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenue | -149 | -108 | -392 | -303 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | -5.00% | -4.00% | -5.00% | -4.00% | ' | |||||
Intersegment Receivables Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Assets | -2,951 | ' | -2,951 | ' | -3,314 | |||||
Segment reporting information, Percentage of Consolidated Assets | -8.00% | ' | -8.00% | ' | -9.00% | |||||
All Other Segments [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Interest Expense | 63 | 60 | 178 | 182 | ' | |||||
Segment reporting information, Interest Income | -1 | 2 | 0 | 1 | ' | |||||
Segment reporting information, Depreciation and Amortization | 1 | 5 | 8 | 10 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 0.00% | 2.00% | 1.00% | 1.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | -30 | -42 | -75 | -48 | ' | |||||
Segment reporting information, Earnings (Losses) | -45 | -43 | -121 | -149 | ' | |||||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | -13.00% | -15.00% | -14.00% | -21.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for property plant and equipment | ' | ' | 12 | 1 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 1.00% | 0.00% | ' | |||||
Segment reporting information, Assets | 1,141 | ' | 1,141 | ' | 838 | |||||
Segment reporting information, Percentage of Consolidated Assets | 3.00% | ' | 3.00% | ' | 2.00% | |||||
Segment Reporting Information Investments In Equity Method Investees | $72 | ' | $72 | ' | $73 | |||||
[1] | Derived from audited financial statements. | |||||||||
[2] | After preferred dividends and call premium on preferred stock for 2013. | |||||||||
[3] | After preferred dividends. |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 9 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Oct. 01, 2014 |
Cameron L N G [Member] | |||
Deconsolidation of business [Line Items] | ' | ' | ' |
Cash | ($4) | ' | ($6) |
Other Current Assets Divested From Deconsolidation | -11 | ' | -11 |
Property, plant and equipment, net | -384 | -727 | -1,022 |
Other assets | -27 | -102 | -30 |
Accounts payable and accrued expenses | 92 | ' | 93 |
Equity Method Investments Upon Deconsolidation | ($65) | ($208) | ($976) |
SUBSEQUENT_EVENTS_2_Details
SUBSEQUENT EVENTS 2 (Details) | Oct. 01, 2014 |
Mtpa | |
Bcf | |
Cameron L N G [Member] | ' |
Gas Volumes Capacity [Line Items] | ' |
LNG Vaporization Capability | 1.5 |
LNG Nameplate Capacity | 13.5 |
LNG Expected Export Capacity | 12 |
LNG Expected Export Capacity Per Day | 1.7 |
Sempra Natural Gas Tolling Agreement [Member] | ' |
Gas Volumes Capacity [Line Items] | ' |
LNG Expected Export Capacity | 4 |
LNG Tolling Capacity | 4.5 |
Sempra Natural Gas Firm Natural Gas Transportation Service [Member] | ' |
Gas Volumes Capacity [Line Items] | ' |
Natural Gas Transportation | 1.45 |
SUBSEQUENT_EVENTS_3_Details
SUBSEQUENT EVENTS 3 (Details) (Cameron L N G [Member]) | Oct. 01, 2014 |
Cameron L N G [Member] | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Equity Method Investment Ownership Percentage | 50.20% |
Equity Method Investment Ownership Percentage Of Minority Partners | 49.80% |
SUBSEQUENT_EVENTS_4_Details
SUBSEQUENT EVENTS 4 (Details) (USD $) | Oct. 01, 2014 |
In Millions, unless otherwise specified | |
Other Long Term Debt Due July 2030 [Member] | Cameron L N G [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Face Amount | $7,400 |
Other Long Term Debt Due July 2030 [Member] | Sempra Energy [Member] | ' |
Debt Instrument [Line Items] | ' |
Completion guarantees | 50.20% |
Debt Instrument, Maximum Borrowing Amount | $3,700 |
Other Long Term Debt Due July 2030 [Member] | Other Project Partners [Member] | ' |
Debt Instrument [Line Items] | ' |
Completion guarantees | 49.80% |
Per Annum Over Libor Prior To Financial Completion [Member] | Cameron L N G [Member] | ' |
Debt Instrument [Line Items] | ' |
Weighted Average All In Cost Of Loans Outstanding | 1.59% |
Per Annum Over Libor Following Financial Completion [Member] | Cameron L N G [Member] | ' |
Debt Instrument [Line Items] | ' |
Weighted Average All In Cost Of Loans Outstanding | 1.78% |