DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 21, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Line Items] | |||
Entity Registrant Name | Sempra Energy | ||
Entity Central Index Key | 1,032,208 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 250,543,688 | ||
Entity Public Float | $ 28,400,000,000 | ||
Trading Symbol | SRE | ||
San Diego Gas and Electric Company [Member] | |||
Document And Entity Information [Line Items] | |||
Entity Public Float | 0 | ||
Southern California Gas Company [Member] | |||
Document And Entity Information [Line Items] | |||
Entity Public Float | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Assets, Current [Abstract] | |||
Cash and cash equivalents | $ 349 | $ 403 | |
Restricted cash | 66 | 27 | |
Accounts receivable – trade, net | 1,390 | 1,283 | |
Accounts receivable – other, net | 164 | 190 | |
Due from unconsolidated affiliates | 26 | 6 | |
Income taxes receivable | 43 | 30 | |
Inventories | 258 | 298 | |
Regulatory balancing accounts – undercollected | 259 | 307 | |
Fixed-price contracts and other derivatives | 83 | 80 | |
Assets held for sale | 201 | 0 | |
Other | 271 | 267 | |
Total current assets | 3,110 | 2,891 | |
Other Assets [Abstract] | |||
Restricted cash | 10 | 20 | |
Due from unconsolidated affiliates | 201 | 186 | |
Regulatory assets | 3,414 | 3,273 | |
Nuclear decommissioning trusts | 1,026 | 1,063 | |
Investments | 2,097 | 2,905 | |
Goodwill | 2,364 | 819 | |
Other intangible assets | 548 | 404 | |
Dedicated assets in support of certain benefit plans | 430 | 464 | |
Insurance receivable for Aliso Canyon costs | 606 | 325 | |
Deferred income taxes | 234 | 120 | |
Sundry | 815 | 641 | |
Total other assets | 11,745 | 10,220 | |
Property, Plant and Equipment, Net [Abstract] | |||
Property, plant and equipment | 43,624 | 38,200 | |
Less accumulated depreciation and amortization | (10,693) | (10,161) | |
Property, plant and equipment, net | 32,931 | 28,039 | |
Total assets | 47,786 | 41,150 | |
Liabilities, Current [Abstract] | |||
Short-term debt | 1,779 | 622 | |
Accounts payable – trade | 1,346 | 1,133 | |
Accounts payable – other | 130 | 142 | |
Due to unconsolidated affiliates | 11 | 14 | |
Dividends and interest payable | 319 | 303 | |
Accrued compensation and benefits | 409 | 423 | |
Regulatory balancing accounts – net overcollected | 122 | 34 | |
Current portion of long-term debt | 913 | 907 | |
Fixed-price contracts and other derivatives | 83 | 56 | |
Customer deposits | 158 | 153 | |
Reserve for Aliso Canyon costs | 53 | 274 | |
Liabilities held for sale | 47 | 0 | |
Other | 557 | 551 | |
Total current liabilities | 5,927 | 4,612 | |
Long-term debt | 14,429 | 13,134 | |
Deferred Credits and Other Liabilities [Abstract] | |||
Customer advances for construction | 152 | 149 | |
Pension and other postretirement benefit plan obligations, net of plan assets | 1,208 | 1,152 | |
Deferred income taxes | 3,745 | 3,157 | |
Deferred investment tax credits | 28 | 32 | |
Regulatory liabilities arising from removal obligations | 2,697 | 2,793 | |
Asset retirement obligations | 2,431 | 2,126 | |
Fixed-price contracts and other derivatives | 405 | 240 | |
Deferred credits and other | 1,523 | 1,176 | |
Total deferred credits and other liabilities | 12,189 | 10,825 | |
Commitments and contingencies (Note 15) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Preferred stock | 0 | 0 | |
Common stock | 2,982 | 2,621 | |
Retained earnings | 10,717 | 9,994 | |
Accumulated other comprehensive income (loss) | (748) | (806) | |
Total shareholders’ equity | 12,951 | 11,809 | |
Preferred stock of subsidiary | 20 | 20 | |
Other noncontrolling interests | 2,270 | 750 | |
Total equity | 15,241 | 12,579 | |
Total liabilities and equity | 47,786 | 41,150 | |
San Diego Gas and Electric Company [Member] | |||
Assets, Current [Abstract] | |||
Cash and cash equivalents | 8 | 20 | |
Restricted cash | 11 | 23 | |
Accounts receivable – trade, net | 354 | 331 | |
Accounts receivable – other, net | 17 | 17 | |
Due from unconsolidated affiliates | 4 | 1 | |
Income taxes receivable | 122 | 1 | |
Inventories | 80 | 75 | |
Prepaid expenses | 59 | 49 | |
Regulatory balancing accounts – undercollected | 259 | 307 | |
Regulatory assets | 81 | 107 | |
Fixed-price contracts and other derivatives | 58 | 53 | |
Other | 19 | 20 | |
Total current assets | 1,072 | 1,004 | |
Other Assets [Abstract] | |||
Restricted cash | 1 | 0 | |
Deferred taxes recoverable in rates | 1,014 | 914 | |
Regulatory assets | 998 | 977 | |
Nuclear decommissioning trusts | 1,026 | 1,063 | |
Sundry | 358 | 301 | |
Total other assets | 3,397 | 3,255 | |
Property, Plant and Equipment, Net [Abstract] | |||
Property, plant and equipment | 17,844 | 16,458 | |
Less accumulated depreciation and amortization | (4,594) | (4,202) | |
Property, plant and equipment, net | 13,250 | 12,256 | |
Total assets | 17,719 | 16,515 | |
Liabilities, Current [Abstract] | |||
Short-term debt | 0 | 168 | |
Accounts payable – trade | 460 | 377 | |
Due to unconsolidated affiliates | 15 | 55 | |
Interest payable | 40 | 39 | |
Accrued compensation and benefits | 121 | 129 | |
Accrued franchise fees | 43 | 66 | |
Current portion of long-term debt | 191 | 50 | |
Fixed-price contracts and other derivatives | 61 | 51 | |
Asset retirement obligations | 79 | 99 | |
Customer deposits | 76 | 72 | |
Other | 82 | 101 | |
Total current liabilities | 1,168 | 1,207 | |
Long-term debt | 4,658 | 4,455 | |
Deferred Credits and Other Liabilities [Abstract] | |||
Customer advances for construction | 52 | 46 | |
Pension and other postretirement benefit plan obligations, net of plan assets | 232 | 212 | |
Deferred income taxes | 2,829 | 2,472 | |
Deferred investment tax credits | 16 | 19 | |
Regulatory liabilities arising from removal obligations | 1,725 | 1,629 | |
Asset retirement obligations | 751 | 729 | |
Fixed-price contracts and other derivatives | 189 | 106 | |
Deferred credits and other | 421 | 364 | |
Total deferred credits and other liabilities | 6,215 | 5,577 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Preferred stock | 0 | 0 | |
Common stock | 1,338 | 1,338 | |
Retained earnings | 4,311 | 3,893 | |
Accumulated other comprehensive income (loss) | (8) | (8) | |
Total shareholders’ equity | 5,641 | 5,223 | |
Other noncontrolling interests | 37 | 53 | |
Total equity | 5,678 | 5,276 | |
Total liabilities and equity | 17,719 | 16,515 | |
Southern California Gas Company [Member] | |||
Assets, Current [Abstract] | |||
Cash and cash equivalents | 12 | 58 | |
Accounts receivable – trade, net | 608 | 635 | |
Accounts receivable – other, net | 77 | 99 | |
Due from unconsolidated affiliates | 8 | 48 | |
Income taxes receivable | 2 | 0 | |
Inventories | 58 | 79 | |
Regulatory assets | 8 | 7 | |
Other | 63 | 40 | |
Total current assets | 836 | 966 | |
Other Assets [Abstract] | |||
Regulatory assets arising from pension obligations | 742 | 699 | |
Regulatory assets | 589 | 636 | |
Insurance receivable for Aliso Canyon costs | 606 | 325 | |
Sundry | 399 | 207 | |
Total other assets | 2,336 | 1,867 | |
Property, Plant and Equipment, Net [Abstract] | |||
Property, plant and equipment | 15,344 | 14,171 | |
Less accumulated depreciation and amortization | (5,092) | (4,900) | |
Property, plant and equipment, net | 10,252 | 9,271 | |
Total assets | 13,424 | 12,104 | |
Liabilities, Current [Abstract] | |||
Short-term debt | 62 | 0 | |
Accounts payable – trade | 481 | 422 | |
Accounts payable – other | 74 | 76 | |
Due to unconsolidated affiliates | 28 | 0 | |
Income taxes payable | 0 | 3 | |
Accrued compensation and benefits | 150 | 160 | |
Regulatory balancing accounts – net overcollected | 122 | 34 | |
Current portion of long-term debt | 0 | 9 | |
Customer deposits | 76 | 76 | |
Reserve for Aliso Canyon costs | 53 | 274 | |
Other | 195 | 184 | |
Total current liabilities | 1,241 | 1,238 | |
Long-term debt | 2,982 | 2,481 | |
Deferred Credits and Other Liabilities [Abstract] | |||
Customer advances for construction | 99 | 103 | |
Pension obligation, net of plan assets | 762 | 716 | |
Deferred income taxes | 1,709 | 1,532 | |
Deferred investment tax credits | 12 | 14 | |
Regulatory liabilities arising from removal obligations | 972 | 1,145 | |
Asset retirement obligations | 1,616 | 1,354 | |
Deferred credits and other | 521 | 372 | |
Total deferred credits and other liabilities | 5,691 | 5,236 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Preferred stock | 22 | 22 | |
Common stock | 866 | 866 | |
Retained earnings | 2,644 | 2,280 | |
Accumulated other comprehensive income (loss) | (22) | (19) | |
Total shareholders’ equity | 3,510 | 3,149 | |
Total equity | 3,510 | 3,149 | |
Total liabilities and equity | $ 13,424 | $ 12,104 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, plant and equipment, net related to VIE | $ 354 | $ 383 |
Long term debt related to VIE | $ 293 | $ 303 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares outstanding | 250,152,514 | 248,298,080 |
Common stock par value (in dollars per share) | $ 0 | $ 0 |
San Diego Gas and Electric Company [Member] | ||
Property, plant and equipment, net related to VIE | $ 354 | $ 383 |
Long term debt related to VIE | $ 293 | $ 303 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized | 45,000,000 | 45,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, shares authorized | 255,000,000 | 255,000,000 |
Common stock, shares outstanding | 117,000,000 | 117,000,000 |
Common stock par value (in dollars per share) | $ 0 | $ 0 |
Southern California Gas Company [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized | 11,000,000 | 11,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 91,000,000 | 91,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Regulated and Unregulated Operating Revenue [Abstract] | |||
Utilities | $ 9,261 | $ 9,254 | $ 9,758 |
Energy-related businesses | 922 | 977 | 1,277 |
Total revenues | 10,183 | 10,231 | 11,035 |
Utilities [Abstract] | |||
Cost of electric fuel and purchased power | (2,188) | (2,136) | (2,281) |
Cost of natural gas | (1,067) | (1,134) | (1,758) |
Energy-related businesses [Abstract] | |||
Cost of natural gas, electric fuel and purchased power | (277) | (335) | (552) |
Other cost of sales | (322) | (148) | (163) |
Operation and maintenance | (2,970) | (2,886) | (2,935) |
Depreciation and amortization | (1,312) | (1,250) | (1,156) |
Franchise fees and other taxes | (426) | (423) | (408) |
Impairment losses | (153) | (9) | 0 |
Plant closure adjustment (loss) | 0 | 26 | (6) |
Gain on sale of assets | 134 | 70 | 62 |
Operating expenses | |||
Impairment losses | 153 | 9 | 0 |
Equity earnings, before income tax | 6 | 104 | 81 |
Remeasurement of equity method investment | 617 | 0 | 0 |
Other income, net | 132 | 126 | 137 |
Interest income | 26 | 29 | 22 |
Interest expense | (553) | (561) | (554) |
Income before income taxes | 1,830 | 1,704 | 1,524 |
Income tax (expense) benefit | (389) | (341) | (300) |
Equity earnings, net of income tax | 78 | 85 | 38 |
Net income | 1,519 | 1,448 | 1,262 |
Losses (earnings) attributable to noncontrolling interest | (148) | (98) | (100) |
Preferred dividends of subsidiary | (1) | (1) | (1) |
Net income/Earnings | $ 1,370 | $ 1,349 | $ 1,161 |
Earnings Per Share, Basic [Abstract] | |||
Basic earnings per common share (in dollars per share) | $ 5.48 | $ 5.43 | $ 4.72 |
Weighted-average number of shares outstanding, basic | 250,217 | 248,249 | 245,891 |
Earnings Per Share, Diluted [Abstract] | |||
Diluted earnings per common share (in dollars per share) | $ 5.46 | $ 5.37 | $ 4.63 |
Weighted-average number of shares outstanding, diluted | 251,155 | 250,923 | 250,655 |
San Diego Gas and Electric Company [Member] | |||
Operating revenues | |||
Electric | $ 3,754 | $ 3,719 | $ 3,785 |
Natural gas | 499 | 500 | 544 |
Total operating revenues | 4,253 | 4,219 | 4,329 |
Operating expenses | |||
Cost of electric fuel and purchased power | 1,187 | 1,151 | 1,309 |
Cost of natural gas | 127 | 153 | 208 |
Operation and maintenance | 1,048 | 1,017 | 1,076 |
Depreciation and amortization | 646 | 604 | 530 |
Franchise fees and other taxes | 255 | 262 | 241 |
Plant closure (adjustment) loss | 0 | (26) | 6 |
Total operating expenses | 3,263 | 3,161 | 3,370 |
Operating income | 990 | 1,058 | 959 |
Other income, net | 50 | 36 | 40 |
Interest expense | (195) | (204) | (202) |
Income before income taxes | 845 | 890 | 797 |
Income tax (expense) benefit | (280) | (284) | (270) |
Net income | 565 | 606 | 527 |
Losses (earnings) attributable to noncontrolling interest | 5 | (19) | (20) |
Net income/Earnings | 570 | 587 | 507 |
Southern California Gas Company [Member] | |||
Operating revenues | |||
Total operating revenues | 3,471 | 3,489 | 3,855 |
Energy-related businesses [Abstract] | |||
Impairment losses | (22) | (9) | 0 |
Operating expenses | |||
Cost of natural gas | 891 | 921 | 1,449 |
Operation and maintenance | 1,385 | 1,361 | 1,321 |
Depreciation and amortization | 476 | 461 | 431 |
Franchise fees and other taxes | 140 | 129 | 133 |
Impairment losses | 22 | 9 | 0 |
Total operating expenses | 2,914 | 2,881 | 3,334 |
Operating income | 557 | 608 | 521 |
Other income, net | 32 | 30 | 20 |
Interest income | 1 | 4 | 0 |
Interest expense | (97) | (84) | (69) |
Income before income taxes | 493 | 558 | 472 |
Income tax (expense) benefit | (143) | (138) | (139) |
Net income | 350 | 420 | 333 |
Net income/Earnings | 350 | 420 | 333 |
Preferred dividend requirements | (1) | (1) | (1) |
Earnings attributable to common shares | $ 349 | $ 419 | $ 332 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 1,519 | $ 1,448 | $ 1,262 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total other comprehensive income (loss) | 52 | (334) | (290) |
Preferred dividends of subsidiary | (1) | (1) | (1) |
San Diego Gas and Electric Company [Member] | |||
Net income | 565 | 606 | 527 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total other comprehensive income (loss) | 10 | 10 | (1) |
Southern California Gas Company [Member] | |||
Net income | 350 | 420 | 333 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total other comprehensive income (loss) | (3) | (1) | |
Pretax amount [Member] | |||
Net income | 1,760 | 1,691 | 1,462 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency translation adjustments | 42 | (260) | (193) |
Financial instruments | (6) | (80) | (106) |
Pension and other postretirement benefits | (13) | (3) | (20) |
Total other comprehensive income (loss) | 23 | (343) | (319) |
Comprehensive income | 1,783 | 1,348 | 1,143 |
Preferred dividends of subsidiary | (1) | (1) | (1) |
Total comprehensive income, after preferred dividends of subsidiaries | 1,782 | 1,347 | 1,142 |
Pretax amount [Member] | San Diego Gas and Electric Company [Member] | |||
Net income | 850 | 871 | 777 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Financial instruments | 0 | 0 | 0 |
Pension and other postretirement benefits | 7 | (5) | |
Total other comprehensive income (loss) | 0 | 7 | (5) |
Comprehensive income | 850 | 878 | 772 |
Pretax amount [Member] | Southern California Gas Company [Member] | |||
Net income | 493 | 558 | 472 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Financial instruments | 1 | 1 | |
Pension and other postretirement benefits | (6) | (2) | |
Total other comprehensive income (loss) | (5) | (1) | |
Comprehensive income | 488 | 557 | 472 |
Income tax (expense) benefit [Member] | |||
Net income | (389) | (341) | (300) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency translation adjustments | 0 | 0 | 0 |
Financial instruments | 11 | 33 | 42 |
Pension and other postretirement benefits | 4 | 1 | 8 |
Total other comprehensive income (loss) | 15 | 34 | 50 |
Comprehensive income | (374) | (307) | (250) |
Preferred dividends of subsidiary | 0 | 0 | 0 |
Total comprehensive income, after preferred dividends of subsidiaries | (374) | (307) | (250) |
Income tax (expense) benefit [Member] | San Diego Gas and Electric Company [Member] | |||
Net income | (280) | (284) | (270) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Financial instruments | 0 | 0 | 0 |
Pension and other postretirement benefits | (3) | 2 | |
Total other comprehensive income (loss) | 0 | (3) | 2 |
Comprehensive income | (280) | (287) | (268) |
Income tax (expense) benefit [Member] | Southern California Gas Company [Member] | |||
Net income | (143) | (138) | (139) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Financial instruments | 0 | (1) | |
Pension and other postretirement benefits | 2 | 1 | |
Total other comprehensive income (loss) | 2 | 0 | |
Comprehensive income | (141) | (138) | (139) |
Net-of-tax amount [Member] | |||
Net income | 1,371 | 1,350 | 1,162 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency translation adjustments | 42 | (260) | (193) |
Financial instruments | 5 | (47) | (64) |
Pension and other postretirement benefits | (9) | (2) | (12) |
Total other comprehensive income (loss) | 38 | (309) | (269) |
Comprehensive income | 1,409 | 1,041 | 893 |
Preferred dividends of subsidiary | (1) | (1) | (1) |
Total comprehensive income, after preferred dividends of subsidiaries | 1,408 | 1,040 | 892 |
Net-of-tax amount [Member] | San Diego Gas and Electric Company [Member] | |||
Net income | 570 | 587 | 507 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Financial instruments | 0 | 0 | 0 |
Pension and other postretirement benefits | 4 | (3) | |
Total other comprehensive income (loss) | 0 | 4 | (3) |
Comprehensive income | 570 | 591 | 504 |
Net-of-tax amount [Member] | Southern California Gas Company [Member] | |||
Net income | 350 | 420 | 333 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Financial instruments | 1 | 0 | |
Pension and other postretirement benefits | (4) | (1) | |
Total other comprehensive income (loss) | (3) | (1) | |
Comprehensive income | 347 | 419 | 333 |
Noncontrolling interests (after-tax) [Member] | |||
Net income | 148 | 98 | 100 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency translation adjustments | (3) | (30) | (20) |
Financial instruments | 17 | 5 | (1) |
Pension and other postretirement benefits | 0 | 0 | 0 |
Total other comprehensive income (loss) | 14 | (25) | (21) |
Comprehensive income | 162 | 73 | 79 |
Preferred dividends of subsidiary | 0 | 0 | 0 |
Total comprehensive income, after preferred dividends of subsidiaries | 162 | 73 | 79 |
Noncontrolling interests (after-tax) [Member] | San Diego Gas and Electric Company [Member] | |||
Net income | (5) | 19 | 20 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Financial instruments | 10 | 6 | 2 |
Pension and other postretirement benefits | 0 | 0 | |
Total other comprehensive income (loss) | 10 | 6 | 2 |
Comprehensive income | 5 | 25 | 22 |
Total [Member] | |||
Net income | 1,519 | 1,448 | 1,262 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency translation adjustments | 39 | (290) | (213) |
Financial instruments | 22 | (42) | (65) |
Pension and other postretirement benefits | (9) | (2) | (12) |
Total other comprehensive income (loss) | 52 | (334) | (290) |
Comprehensive income | 1,571 | 1,114 | 972 |
Preferred dividends of subsidiary | (1) | (1) | (1) |
Total comprehensive income, after preferred dividends of subsidiaries | 1,570 | 1,113 | 971 |
Total [Member] | San Diego Gas and Electric Company [Member] | |||
Net income | 565 | 606 | 527 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Financial instruments | 10 | 6 | 2 |
Pension and other postretirement benefits | 4 | (3) | |
Total other comprehensive income (loss) | 10 | 10 | (1) |
Comprehensive income | $ 575 | $ 616 | $ 526 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 1,519 | $ 1,448 | $ 1,262 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,312 | 1,250 | 1,156 |
Deferred income taxes and investment tax credits | 217 | 239 | 146 |
Impairment losses | 153 | 9 | 0 |
Plant closure (adjustment) loss | 0 | (26) | 6 |
Gain on sale of assets | (134) | (70) | (62) |
Equity earnings | (84) | (189) | (119) |
Remeasurement of equity method investment | (617) | 0 | 0 |
Fixed-price contracts and other derivatives | 21 | (10) | (25) |
Other | 63 | 66 | 108 |
Insurance receivable for Aliso Canyon costs | (281) | (325) | 0 |
Changes in other assets | 56 | (162) | 19 |
Changes in other liabilities | 153 | (24) | 45 |
Changes in working capital components: | |||
Accounts receivable | (42) | (99) | 44 |
Income taxes | 3 | 39 | 62 |
Inventories | (20) | 65 | (133) |
Regulatory balancing accounts | 198 | 586 | (317) |
Regulatory assets and liabilities | (3) | (4) | 8 |
Other current assets | (41) | (18) | (10) |
Accounts payable | 122 | (157) | 109 |
Reserve for Aliso Canyon costs | (221) | 274 | 0 |
Other current liabilities | (55) | 13 | (138) |
Net change in other working capital components | (59) | 699 | (375) |
Net cash provided by operating activities | 2,319 | 2,905 | 2,161 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Expenditures for property, plant and equipment | (4,214) | (3,156) | (3,123) |
Expenditures for investments and acquisition of businesses, net of cash and cash equivalents acquired | (1,582) | (200) | (240) |
Proceeds from sale of assets, net of cash sold | 763 | 373 | 149 |
Distributions from investments | 25 | 15 | 13 |
Purchases of nuclear decommissioning and other trust assets | (1,034) | (531) | (613) |
Proceeds from sales by nuclear decommissioning and other trusts | 1,134 | 577 | 601 |
Increases in restricted cash | (139) | (100) | (152) |
Decreases in restricted cash | 175 | 93 | 155 |
Advances to unconsolidated affiliates | (25) | (31) | (185) |
Decrease (increase) in loans to affiliate, net | 11 | 74 | 18 |
Other | 0 | 1 | 35 |
Net cash used in investing activities | (4,886) | (2,885) | (3,342) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Common dividends paid | (686) | (628) | (598) |
Preferred dividends paid by subsidiary | (1) | (1) | (1) |
Issuances of common stock | 51 | 52 | 56 |
Repurchases of common stock | (56) | (74) | (38) |
Issuances of debt (maturities greater than 90 days) | 2,951 | 2,992 | 3,272 |
Payments on debt (maturities greater than 90 days) | (2,057) | (1,854) | (2,034) |
Increase (decrease) in short-term debt, net | 692 | (622) | 412 |
Proceeds from sale of noncontrolling interests, net of $40 in offering costs | 1,692 | 0 | 0 |
Purchase of noncontrolling interests | 0 | 0 | (74) |
Net distributions to noncontrolling interests | (63) | (73) | (104) |
Tax benefit related to share-based compensation | 0 | 52 | 0 |
Other | (10) | (17) | (37) |
Net cash provided by (used in) financing activities | 2,513 | (173) | 854 |
Effect of exchange rate changes on cash and cash equivalents | 0 | (14) | (7) |
Increase (decrease) in cash and cash equivalents | (54) | (167) | (334) |
Cash and cash equivalents, January 1 | 403 | 570 | 904 |
Cash and cash equivalents, December 31 | 349 | 403 | 570 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Interest payments, net of amounts capitalized | 532 | 537 | 536 |
Income tax payments (refunds), net | 160 | 67 | 102 |
Noncash acquisition of businesses: | |||
Assets acquired, net of cash and cash equivalents | 3,876 | 10 | 0 |
Fair value of equity method investment immediately prior to acquisition | (1,144) | 0 | 0 |
Liabilities assumed | (1,322) | (2) | 0 |
Accrued purchase price | 0 | (5) | 0 |
Cash paid, net of cash and cash equivalents acquired | 1,410 | 3 | 0 |
Other Noncash Investing and Financing Items [Abstract] | |||
Accrued capital expenditures | 626 | 566 | 433 |
Increase in capital lease obligations for investment in property, plant and equipment | 0 | 24 | 60 |
Financing of build-to-suit property | 0 | 61 | 61 |
Redemption of industrial development bonds | 0 | 79 | 0 |
Common dividends issued in stock | 53 | 55 | 42 |
Dividends declared but not paid | 196 | 180 | 166 |
San Diego Gas and Electric Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | 565 | 606 | 527 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 646 | 604 | 530 |
Deferred income taxes and investment tax credits | 258 | 195 | 223 |
Plant closure (adjustment) loss | 0 | (26) | 6 |
Fixed-price contracts and other derivatives | (3) | (4) | (6) |
Other | (35) | (16) | (23) |
Changes in other assets | (16) | (122) | 191 |
Changes in other liabilities | 11 | 13 | 18 |
Changes in working capital components: | |||
Accounts receivable | (31) | (10) | (47) |
Due to/from affiliates, net | (19) | 21 | (10) |
Income taxes | (115) | 0 | 35 |
Inventories | (5) | (2) | 4 |
Regulatory balancing accounts | 35 | 474 | (208) |
Other current assets | 25 | (24) | (16) |
Accounts payable | 39 | (28) | (23) |
Other current liabilities | (28) | (17) | (104) |
Net cash provided by operating activities | 1,327 | 1,664 | 1,097 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Expenditures for property, plant and equipment | (1,399) | (1,133) | (1,100) |
Purchases of nuclear decommissioning trust assets | (1,034) | (526) | (609) |
Proceeds from sales by nuclear decommissioning trusts | 1,134 | 577 | 601 |
Increases in restricted cash | (49) | (39) | (84) |
Decreases in restricted cash | 60 | 35 | 96 |
Increase in loans to affiliate, net | (31) | 0 | 0 |
Expenditures related to long-term service agreement | 0 | 0 | 30 |
Net cash used in investing activities | (1,319) | (1,086) | (1,126) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Common dividends paid | (175) | (300) | (200) |
Issuances of debt (maturities greater than 90 days) | 498 | 444 | 100 |
Payments on debt (maturities greater than 90 days) | (204) | (547) | (24) |
Increase (decrease) in short-term debt, net | (114) | (131) | 187 |
Net distributions to noncontrolling interests | (21) | (30) | (53) |
Debt issuance costs | (4) | (2) | 0 |
Net cash provided by (used in) financing activities | (20) | (566) | 10 |
Increase (decrease) in cash and cash equivalents | (12) | 12 | (19) |
Cash and cash equivalents, January 1 | 20 | 8 | 27 |
Cash and cash equivalents, December 31 | 8 | 20 | 8 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Interest payments, net of amounts capitalized | 187 | 199 | 196 |
Income tax payments (refunds), net | 137 | 88 | (4) |
Other Noncash Investing and Financing Items [Abstract] | |||
Accrued capital expenditures | 227 | 191 | 217 |
Increase in capital lease obligations for investment in property, plant and equipment | 0 | 15 | 60 |
Southern California Gas Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | 350 | 420 | 333 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 476 | 461 | 431 |
Deferred income taxes and investment tax credits | 103 | 127 | 130 |
Impairment losses | 22 | 9 | 0 |
Other | (26) | (20) | (7) |
Insurance receivable for Aliso Canyon costs | (281) | (325) | 0 |
Changes in other assets | 35 | (91) | (131) |
Changes in other liabilities | 7 | (7) | 29 |
Changes in working capital components: | |||
Accounts receivable | 37 | (90) | 30 |
Due to/from affiliates, net | 6 | (11) | (1) |
Income taxes | (2) | 8 | 17 |
Inventories | 4 | 102 | (113) |
Regulatory balancing accounts | 163 | 112 | (109) |
Other current assets | (13) | 8 | (3) |
Accounts payable | 36 | (143) | 156 |
Reserve for Aliso Canyon costs | (221) | 274 | 0 |
Other current liabilities | (25) | 46 | 3 |
Net cash provided by operating activities | 671 | 880 | 765 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Expenditures for property, plant and equipment | (1,319) | (1,352) | (1,104) |
Decrease (increase) in loans to affiliate, net | 50 | (50) | 0 |
Net cash used in investing activities | (1,269) | (1,402) | (1,104) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Common dividends paid | 0 | (50) | (100) |
Preferred dividends paid | (1) | (1) | (1) |
Issuances of debt (maturities greater than 90 days) | 499 | 599 | 747 |
Payments on debt (maturities greater than 90 days) | (3) | 0 | (250) |
Increase (decrease) in short-term debt, net | 62 | (50) | 8 |
Debt issuance costs | (5) | (3) | (7) |
Net cash provided by (used in) financing activities | 552 | 495 | 397 |
Increase (decrease) in cash and cash equivalents | (46) | (27) | 58 |
Cash and cash equivalents, January 1 | 58 | 85 | 27 |
Cash and cash equivalents, December 31 | 12 | 58 | 85 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Interest payments, net of amounts capitalized | 92 | 79 | 62 |
Income tax payments (refunds), net | 41 | 1 | (10) |
Other Noncash Investing and Financing Items [Abstract] | |||
Accrued capital expenditures | $ 207 | $ 189 | $ 168 |
CONSOLIDATED STATEMENTS OF CAS7
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Statement of Cash Flows [Abstract] | |
Offering costs | $ 40 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | San Diego Gas and Electric Company [Member] | Southern California Gas Company [Member] | Preferred stock [Member]Southern California Gas Company [Member] | Common Stock [Member] | Common Stock [Member]San Diego Gas and Electric Company [Member] | Common Stock [Member]Southern California Gas Company [Member] | Retained earnings [Member] | Retained earnings [Member]San Diego Gas and Electric Company [Member] | Retained earnings [Member]Southern California Gas Company [Member] | Accumulated other comprehensive income (loss) [Member] | Accumulated other comprehensive income (loss) [Member]San Diego Gas and Electric Company [Member] | Accumulated other comprehensive income (loss) [Member]Southern California Gas Company [Member] | Shareholders' equity [Member] | Shareholders' equity [Member]San Diego Gas and Electric Company [Member] | Non-controlling interests [Member] | Non-controlling interests [Member]San Diego Gas and Electric Company [Member] |
Beginning Balance at Dec. 31, 2013 | $ 11,850 | $ 4,719 | $ 2,549 | $ 22 | $ 2,409 | $ 1,338 | $ 866 | $ 8,827 | $ 3,299 | $ 1,679 | $ (228) | $ (9) | $ (18) | $ 11,008 | $ 4,628 | $ 842 | $ 91 |
Net income | 1,262 | 527 | 333 | 1,162 | 507 | 333 | 1,162 | 507 | 100 | 20 | |||||||
Comprehensive income (loss) | (290) | (1) | (269) | (3) | (269) | (3) | (21) | 2 | |||||||||
Share-based compensation expense | 48 | 48 | 48 | ||||||||||||||
Preferred stock dividends declared | (1) | (1) | |||||||||||||||
Common stock dividends declared | (649) | (200) | (100) | (649) | (200) | (100) | (649) | (200) | |||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||
Issuances of common stock | 97 | 97 | 97 | ||||||||||||||
Repurchases of common stock | (38) | (38) | (38) | ||||||||||||||
Distributions to noncontrolling interests | (107) | (53) | (107) | (53) | |||||||||||||
Equity contributed by noncontrolling interests | 1 | 1 | |||||||||||||||
Purchase of noncontrolling interest in subsidiary | (73) | (32) | (32) | (41) | |||||||||||||
Ending balance at Dec. 31, 2014 | 12,100 | 4,992 | 2,781 | 22 | 2,484 | 1,338 | 866 | 9,339 | 3,606 | 1,911 | (497) | (12) | (18) | 11,326 | 4,932 | 774 | 60 |
Net income | 1,448 | 606 | 420 | 1,350 | 587 | 420 | 1,350 | 587 | 98 | 19 | |||||||
Comprehensive income (loss) | (334) | 10 | (1) | (309) | 4 | (1) | (309) | 4 | (25) | 6 | |||||||
Share-based compensation expense | 52 | 52 | 52 | ||||||||||||||
Preferred stock dividends declared | (1) | (1) | |||||||||||||||
Common stock dividends declared | (694) | (300) | (50) | (694) | (300) | (50) | (694) | (300) | |||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||
Issuances of common stock | 107 | 107 | 107 | ||||||||||||||
Repurchases of common stock | (74) | (74) | (74) | ||||||||||||||
Tax benefit related to share-based compensation | 52 | 52 | 52 | ||||||||||||||
Distributions to noncontrolling interests | (80) | (32) | (80) | (32) | |||||||||||||
Equity contributed by noncontrolling interests | 3 | 3 | |||||||||||||||
Ending balance at Dec. 31, 2015 | 12,579 | 5,276 | 3,149 | 22 | 2,621 | 1,338 | 866 | 9,994 | 3,893 | 2,280 | (806) | (8) | (19) | 11,809 | 5,223 | 770 | 53 |
Cumulative-effect adjustment from change in accounting principle | 107 | 23 | 15 | 107 | 23 | 15 | 107 | 23 | |||||||||
Net income | 1,519 | 565 | 350 | 1,371 | 570 | 350 | 1,371 | 570 | 148 | (5) | |||||||
Comprehensive income (loss) | 52 | 10 | (3) | 38 | (3) | 38 | 14 | 10 | |||||||||
Share-based compensation expense | 52 | 52 | 52 | ||||||||||||||
Preferred stock dividends declared | (1) | (1) | |||||||||||||||
Common stock dividends declared | (754) | (175) | (754) | (175) | (754) | (175) | |||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||
Issuances of common stock | 104 | 104 | 104 | ||||||||||||||
Repurchases of common stock | (56) | (56) | (56) | ||||||||||||||
Sale of noncontrolling interests, net of offering costs | 1,701 | 261 | 20 | 281 | 1,420 | ||||||||||||
Distributions to noncontrolling interests | (65) | (23) | (65) | (23) | |||||||||||||
Equity contributed by noncontrolling interests | 3 | 2 | 3 | 2 | |||||||||||||
Ending balance at Dec. 31, 2016 | $ 15,241 | $ 5,678 | $ 3,510 | $ 22 | $ 2,982 | $ 1,338 | $ 866 | $ 10,717 | $ 4,311 | $ 2,644 | $ (748) | $ (8) | $ (22) | $ 12,951 | $ 5,641 | $ 2,290 | $ 37 |
SCHEDULE I, CONDENSED FINANCIAL
SCHEDULE I, CONDENSED FINANCIAL INFORMATION OF PARENT | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent | SCHEDULE I – SEMPRA ENERGY CONDENSED FINANCIAL INFORMATION OF PARENT SEMPRA ENERGY CONDENSED STATEMENTS OF OPERATIONS (Dollars in millions, except per share amounts) Years ended December 31, 2016 2015 2014 Interest expense $ (277 ) $ (261 ) $ (235 ) Operation and maintenance (81 ) (66 ) (78 ) Other (expense) income, net (2 ) 7 50 Income tax benefit 181 150 133 Loss before equity in earnings of subsidiaries (179 ) (170 ) (130 ) Equity in earnings of subsidiaries, net of income taxes 1,549 1,519 1,291 Net income/earnings $ 1,370 $ 1,349 $ 1,161 Basic earnings per common share $ 5.48 $ 5.43 $ 4.72 Weighted-average number of shares outstanding (thousands) 250,217 248,249 245,891 Diluted earnings per common share $ 5.46 $ 5.37 $ 4.63 Weighted-average number of shares outstanding (thousands) 251,155 250,923 250,655 See Notes to Condensed Financial Information of Parent. SEMPRA ENERGY CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Years ended December 31, Pretax amount Income tax benefit Net-of-tax amount 2016: Net income $ 1,189 $ 181 $ 1,370 Other comprehensive income (loss): Foreign currency translation adjustments 42 — 42 Financial instruments (6 ) 11 5 Pension and other postretirement benefits (13 ) 4 (9 ) Total other comprehensive income 23 15 38 Comprehensive income $ 1,212 $ 196 $ 1,408 2015: Net income $ 1,199 $ 150 $ 1,349 Other comprehensive income (loss): Foreign currency translation adjustments (260 ) — (260 ) Financial instruments (80 ) 33 (47 ) Pension and other postretirement benefits (3 ) 1 (2 ) Total other comprehensive loss (343 ) 34 (309 ) Comprehensive income $ 856 $ 184 $ 1,040 2014: Net income $ 1,028 $ 133 $ 1,161 Other comprehensive income (loss): Foreign currency translation adjustments (193 ) — (193 ) Financial instruments (106 ) 42 (64 ) Pension and other postretirement benefits (20 ) 8 (12 ) Total other comprehensive loss (319 ) 50 (269 ) Comprehensive income $ 709 $ 183 $ 892 SEMPRA ENERGY CONDENSED BALANCE SHEETS (Dollars in millions) December 31, December 31, Assets: Cash and cash equivalents $ 12 $ 4 Due from affiliates 73 62 Other current assets 2 4 Total current assets 87 70 Investments in subsidiaries 17,329 15,586 Due from affiliates — 457 Deferred income taxes 2,570 2,188 Other assets 592 641 Total assets $ 20,578 $ 18,942 Liabilities and shareholders’ equity: Current portion of long-term debt $ 600 $ 752 Due to affiliates 359 332 Income taxes payable 153 42 Other current liabilities 374 310 Total current liabilities 1,486 1,436 Long-term debt 5,100 5,195 Due to affiliates 517 — Other long-term liabilities 524 502 Shareholders’ equity 12,951 11,809 Total liabilities and shareholders’ equity $ 20,578 $ 18,942 SEMPRA ENERGY CONDENSED STATEMENTS OF CASH FLOWS (Dollars in millions) Years ended December 31, 2016 2015 2014 Net cash used in operating activities $ (178 ) $ (255 ) $ (260 ) Dividends received from subsidiaries 175 350 300 Expenditures for property, plant and equipment (5 ) (43 ) (15 ) Purchase of trust assets — (5 ) (4 ) Decrease (increase) in loans to affiliates, net 457 (457 ) 627 Cash provided by (used in) investing activities 627 (155 ) 908 Common stock dividends paid (686 ) (628 ) (598 ) Issuances of common stock 51 52 56 Repurchases of common stock (56 ) (74 ) (38 ) Issuances of long-term debt 499 1,248 499 Payments on long-term debt (750 ) — (800 ) Increase (decrease) in loans from affiliates, net 504 (230 ) 234 Tax benefit related to share-based compensation — 52 — Other (3 ) (9 ) (4 ) Cash (used in) provided by financing activities (441 ) 411 (651 ) Increase (decrease) in cash and cash equivalents 8 1 (3 ) Cash and cash equivalents, January 1 4 3 6 Cash and cash equivalents, December 31 $ 12 $ 4 $ 3 SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES Financing of build-to-suit property $ — $ 61 $ 61 Common dividends issued in stock 53 55 42 Dividends declared but not paid 189 174 163 See Notes to Condensed Financial Information of Parent. SEMPRA ENERGY NOTES TO CONDENSED FINANCIAL INFORMATION OF PARENT Basis of Presentation Sempra Energy accounts for the earnings of its subsidiaries under the equity method in this unconsolidated financial information. Other Income, Net, on the Condensed Statements of Operations includes $23 million , $3 million and $27 million of gains on dedicated assets in support of our executive retirement and deferred compensation plans in 2016 , 2015 and 2014 , respectively. Because of its nature as a holding company, Sempra Energy Parent classifies dividends received from subsidiaries as an investing cash flow. New Accounting Standards We describe below recent pronouncements that have had or may have a significant effect on Sempra Energy Parent’s financial condition, results of operations, cash flows or disclosures. Accounting Standards Update (ASU) 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities”: In addition to the presentation and disclosure requirements for financial instruments, ASU 2016-01 requires entities to measure equity investments, other than those accounted for under the equity method, at fair value and recognize changes in fair value in net income. Entities will no longer be able to use the cost method of accounting for equity securities. However, for equity investments without readily determinable fair values, entities may elect a measurement alternative that will allow those investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. Upon adoption, entities must record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the standard is adopted. The guidance on equity securities without readily determinable fair values will be applied prospectively to all equity investments that exist as of the date of adoption of the standard. For public entities, ASU 2016-01 is effective for fiscal years beginning after December 15, 2017. We will adopt ASU 2016-01 on January 1, 2018 as required and do not expect it to materially affect our financial condition, results of operations or cash flows. We will make the required changes to our disclosures upon adoption. ASU 2016-02, “Leases”: ASU 2016-02 requires entities to include substantially all leases on the balance sheet by requiring the recognition of right-of-use assets and lease liabilities for all leases. Entities may elect to exclude from the balance sheet those leases with a maximum possible term of less than 12 months. For lessees, a lease is classified as finance or operating and the asset and liability are initially measured at the present value of the lease payments. For lessors, accounting for leases is largely unchanged from previous provisions of accounting principles generally accepted in the United States of America (U.S. GAAP), other than certain changes to align lessor accounting to specific changes made to lessee accounting and ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2016-02 also requires new qualitative and quantitative disclosures for both lessees and lessors. For public entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, and is effective for interim periods in the year of adoption. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes optional practical expedients that may be elected, which would allow entities to continue to account for leases that commence before the effective date of the standard in accordance with previous U.S. GAAP unless the lease is modified, except for the lessee requirement to begin recognizing right-of-use assets and lease liabilities for all operating leases on the balance sheet at the reporting date. We are currently evaluating the effect of the standard on our ongoing financial reporting and have not yet selected the year in which we will adopt the standard. As part of our evaluation, we formed a steering committee comprised of members from relevant Sempra Energy business units. Based on our assessment to date, we have determined that we will adopt ASU 2016-02 using the modified retrospective approach and will elect the practical expedients available under the transition guidance. ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”: ASU 2016-09 is intended to simplify several aspects of the accounting for employee share-based payment transactions. Under ASU 2016-09, excess tax benefits and tax deficiencies are required to be recorded in earnings, and the requirement to reclassify excess tax benefits from operating to financing activities on the statement of cash flows has been eliminated. ASU 2016-09 also allows entities to withhold taxes up to the maximum individual statutory tax rate without resulting in liability classification of the award and clarifies that cash payments made to taxing authorities in connection with withheld shares should be classified as financing activities in the statement of cash flows. Additionally, the standard provides for an accounting policy election to either continue to estimate forfeitures or account for them as they occur. For public entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, with early adoption permitted, and is effective for interim periods in the year of adoption. We early adopted the provisions of ASU 2016-09 during the three months ended September 30, 2016, with an effective date of January 1, 2016. Upon adoption: ▪ Sempra Energy Parent recognized a cumulative-effect adjustment to retained earnings and a deferred tax asset as of January 1, 2016 of $49 million for previously unrecognized excess tax benefits from share-based compensation. ▪ Sempra Energy Parent recognized earnings consisting of excess tax benefits on the Condensed Statements of Operations of $17 million in the year ended December 31, 2016, all of which related to the three months ended March 31, 2016. Excess tax benefits of $34 million were previously recorded in Sempra Energy Parent Shareholders’ Equity in Common Stock prior to adoption of ASU 2016-09. ▪ The excess tax benefits from share-based compensation for Sempra Energy Parent were previously classified as a financing activity on Sempra Energy Parent’s Condensed Statement of Cash Flows. As now required, excess tax benefits for Sempra Energy Parent are included in Cash Flows From Operating Activities on the Condensed Statements of Cash Flows for the year ended December 31, 2016. This amendment was adopted prospectively, and therefore, we have not adjusted the Condensed Statements of Cash Flows for the prior periods presented. ▪ As a result of the provision to recognize excess tax benefits in earnings, these benefits are no longer included in the calculation of diluted earnings per share (EPS) effective January 1, 2016. The weighted-average number of common shares outstanding for diluted EPS increased by 75 thousand shares for the three months ended March 31, 2016 and 98 thousand shares and 89 thousand shares for the three months and six months ended June 30, 2016, respectively. Upon adoption of ASU 2016-09, we elected to continue estimating the number of awards expected to be forfeited and adjusting our estimate on an ongoing basis. All other provisions of ASU 2016-09 did not impact our financial condition, results of operations or cash flows. ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”: ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments. The standard introduces an “expected credit loss” impairment model that requires immediate recognition of estimated credit losses expected to occur over the remaining life of most financial assets measured at amortized cost, including trade and other receivables, loan commitments and financial guarantees. ASU 2016-13 also requires use of an allowance to record estimated credit losses on available-for-sale debt securities and expands disclosure requirements regarding an entity’s assumptions, models and methods for estimating the credit losses. For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the effect of the standard on our ongoing financial reporting and have not yet selected the year in which we will adopt the standard. ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments”: ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows in order to reduce diversity in practice. For public entities, ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, with early adoption permitted, and is effective for interim periods in the year of adoption. An entity that elects early adoption must adopt all of the amendments in the same period. Entities must apply the guidance retrospectively to all periods presented, but may apply it prospectively if retrospective application would be impracticable. We are currently evaluating the effect of the standard on our ongoing financial reporting and have not yet selected the year in which we will adopt the standard. ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” : ASU 2017-05 clarifies the scope of accounting for the derecognition or partial sale of nonfinancial assets to exclude all businesses and nonprofit activities. ASU 2017-05 also provides a definition for in-substance nonfinancial assets and additional guidance on partial sales of nonfinancial assets. For public entities, ASU 2017-05 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted. An entity may elect to apply the amendments under a retrospective or modified retrospective approach. We are currently evaluating the effect of the standard on our ongoing financial reporting and plan to adopt in conjunction with ASU 2014-09 on January 1, 2018, but have not yet selected the method of adoption. Long-Term Debt The following table shows the detail and maturities of long-term debt outstanding: LONG-TERM DEBT (Dollars in millions) December 31, 2016 December 31, 2015 6.5% Notes June 1, 2016, including $300 at variable rates after $ — $ 750 2.3% Notes April 1, 2017 600 600 6.15% Notes June 15, 2018 500 500 9.8% Notes February 15, 2019 500 500 1.625% Notes October 7, 2019 500 — 2.4% Notes March 15, 2020 500 500 2.85% Notes November 15, 2020 400 400 2.875% Notes October 1, 2022 500 500 4.05% Notes December 1, 2023 500 500 3.55% Notes June 15, 2024 500 500 3.75% Notes November 15, 2025 350 350 6% Notes October 15, 2039 750 750 Market value adjustments for interest rate swaps, net (3 ) (2 ) Build-to-suit lease 137 136 5,734 5,984 Current portion of long-term debt (600 ) (752 ) Unamortized discount on long-term debt (10 ) (10 ) Unamortized debt issuance costs (24 ) (27 ) Total long-term debt $ 5,100 $ 5,195 Excluding the build-to-suit lease and market value adjustments for interest rate swaps, maturities of long-term debt are $600 million in 2017, $500 million in 2018, $1 billion in 2019, $900 million in 2020 and $2.6 billion thereafter. Additional information on Sempra Energy’s long-term debt is provided in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. Commitments and Contingencies For contingencies and guarantees related to Sempra Energy, refer to Notes 4, 5 and 15 of the Notes to Consolidated Financial Statements in the Annual Report. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies And Other Financial Data | SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA PRINCIPLES OF CONSOLIDATION Sempra Energy Sempra Energy’s 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 ▪ Sempra Utilities, which includes our San Diego Gas & Electric Company (SDG&E), Southern California Gas Company (SoCalGas) and Sempra South American Utilities reportable segments; and ▪ Sempra Infrastructure, which includes our Sempra Mexico, Sempra Renewables and Sempra LNG & Midstream reportable segments. Prior to December 31, 2016, our reportable segments were grouped under the following operating units: ▪ California Utilities (which included the SDG&E and SoCalGas segments) ▪ Sempra International (which included the Sempra South American Utilities and Sempra Mexico segments) ▪ Sempra U.S. Gas & Power (which included the Sempra Renewables and Sempra Natural Gas segments) The grouping of our segments within our operating units as of December 31, 2016 reflects a realignment of management oversight of our operations. As part of this realignment, we changed the name of our “Sempra Natural Gas” segment to “ Sempra LNG & Midstream.” This name change and the realignment of our segments within our new operating units had no impact on our historical financial position, results of operations, cash flows or segment results previously reported. We provide descriptions of each of our segments in Note 16. We refer to SDG&E and SoCalGas collectively as the California Utilities, which do not include our South American utilities or the utilities in our Sempra Infrastructure operating unit. 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 Utilities,” “Sempra Infrastructure” 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. IEnova is a separate legal entity comprised 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. IEnova’s financial results are reported in Mexico under International Financial Reporting Standards, 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. 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 3, 4 and 10. SDG&E SDG&E’s Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E is the primary beneficiary, as we discuss below in “Variable Interest Entities.” SDG&E’s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. SoCalGas SoCalGas’ common stock is wholly owned by Pacific Enterprises, which is a wholly owned subsidiary of Sempra Energy. BASIS OF PRESENTATION This is a combined report of Sempra Energy, SDG&E and SoCalGas. We provide separate information for SDG&E and SoCalGas as required. References in this report to “we,” “our” and “Sempra Energy Consolidated” are to Sempra Energy and its consolidated entities, unless otherwise indicated by the context. We have eliminated intercompany accounts and transactions within the consolidated financial statements of each reporting entity. Throughout this report, we refer to the following as Consolidated Financial Statements and Notes to Consolidated Financial Statements when discussed together or collectively: ▪ the Consolidated Financial Statements and related Notes of Sempra Energy and its subsidiaries and VIEs, ▪ the Consolidated Financial Statements and related Notes of SDG&E and its VIE, and ▪ the Financial Statements and related Notes of SoCalGas. Regulated Operations The California Utilities and Sempra Mexico’s natural gas distribution utility, Ecogas México, S. de R.L. de C.V. (Ecogas), prepare their financial statements in accordance with the provisions of accounting principles generally accepted in the United States of America (U.S. GAAP) governing rate-regulated operations, as we discuss below in “Effects of Regulation.” Sempra South American Utilities has controlling interests in two electric distribution utilities in South America, Chilquinta Energía S.A. (Chilquinta Energía) in Chile and Luz del Sur S.A.A. (Luz del Sur) in Peru, and their subsidiaries. Revenues are based on tariffs that are set by government agencies in their respective countries based on an efficient model distribution company defined by those agencies. Because the tariffs are based on a model and are intended to cover the costs of the model company, but are not based on the costs of the specific utility and may not result in full cost recovery, these utilities do not meet the requirements necessary for, and therefore do not apply, regulatory accounting treatment under U.S. GAAP. Certain business activities at IEnova are regulated by the Comisión Reguladora de Energía (or CRE, the Energy Regulatory Commission) and meet the regulatory accounting requirements of U.S. GAAP. Pipeline projects currently under construction by IEnova that meet the regulatory accounting requirements of U.S. GAAP record the impact of allowance for funds used during construction (AFUDC) related to equity. We discuss AFUDC below in “Property, Plant and Equipment.” Sempra LNG & Midstream owned Mobile Gas Service Corporation (Mobile Gas) in southwest Alabama and Willmut Gas Company (Willmut Gas) in Mississippi until they were sold in September 2016, as we discuss in Note 3. Mobile Gas and Willmut Gas also prepared their financial statements in accordance with the provisions of U.S. GAAP governing rate-regulated operations. We discuss revenue recognition at our utilities in “Revenues” below. Use of Estimates in the Preparation of the Financial Statements We have prepared our Consolidated Financial Statements in conformity with U.S. GAAP. This requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, including the disclosure of contingent assets and liabilities at the date of the financial statements. Although we believe the estimates and assumptions are reasonable, actual amounts ultimately may differ significantly from those estimates. Subsequent Events We evaluated events and transactions that occurred after December 31, 2016 through the date the financial statements were issued, and in the opinion of management, the accompanying statements reflect all adjustments and disclosures necessary for a fair presentation. EFFECTS OF REGULATION The accounting policies of the California Utilities conform with U.S. GAAP for rate-regulated enterprises and reflect the policies of the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC). The California Utilities prepare their financial statements in accordance with U.S. GAAP provisions governing rate-regulated operations. Under these provisions, a regulated utility records regulatory assets, which are generally costs that would otherwise be charged to expense, if it is probable that, through the ratemaking process, the utility will recover those assets from customers. To the extent that recovery is no longer probable, the related regulatory assets are written off. Regulatory liabilities generally represent amounts collected from customers in advance of the actual expenditure by the utility. If the actual expenditures are less than amounts previously collected from ratepayers, the excess would be refunded to customers, generally by reducing future rates. Regulatory liabilities may also arise from other transactions such as unrealized gains on fixed price contracts and other derivatives or certain deferred income tax benefits that are passed through to customers in future rates. In addition, the California Utilities record regulatory liabilities when the CPUC or the FERC requires a refund to be made to customers or has required that a gain or other transaction of net allowable costs be given to customers over future periods. Determining probability of recovery requires significant judgment by management and may include, but is not limited to, consideration of: ▪ the nature of the event giving rise to the assessment; ▪ existing statutes and regulatory code; ▪ legal precedents; ▪ regulatory principles and analogous regulatory actions; ▪ testimony presented in regulatory hearings; ▪ proposed regulatory decisions; ▪ final regulatory orders; ▪ a commission-authorized mechanism established for the accumulation of costs; ▪ status of applications for rehearings or state court appeals; ▪ specific approval from a commission; and ▪ historical experience . Ecogas also applies U.S. GAAP for rate-regulated utilities to its operations, including the same evaluation of probability of recovery of regulatory assets described above. We provide information concerning regulatory assets and liabilities in Notes 13 and 14. FAIR VALUE MEASUREMENTS We measure certain assets and liabilities at fair value on a recurring basis, primarily nuclear decommissioning and benefit plan trust assets and derivatives. We also measure certain assets at fair value on a non-recurring basis in certain circumstances. These assets can include goodwill, intangible assets, equity method investments and other long-lived assets. “Fair value” is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). A fair value measurement reflects the assumptions market participants would use in pricing an asset or liability based on the best available information. These assumptions include the risk inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Also, we consider an issuer’s credit standing when measuring its liabilities at fair value. We establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Our Level 1 financial instruments primarily consist of listed equities, U.S. government treasury securities, primarily in the nuclear decommissioning and benefit plan trusts, and exchange-traded derivatives. Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including: ▪ quoted forward prices for commodities ▪ time value ▪ current market and contractual prices for the underlying instruments ▪ volatility factors ▪ other relevant economic measures Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Our financial instruments in this category include domestic corporate bonds, municipal bonds and other foreign bonds, primarily in the Nuclear Decommissioning Trusts and in our pension and postretirement benefit plans, and non-exchange-traded derivatives such as interest rate instruments and over-the-counter forwards and options. Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant. Our Level 3 financial instruments consist of congestion revenue rights (CRRs) and fixed-price electricity positions at SDG&E. CASH AND CASH EQUIVALENTS Cash equivalents are highly liquid investments with maturities of three months or less at the date of purchase. RESTRICTED CASH Restricted cash at Sempra Energy, including amounts at SDG&E discussed below, was $76 million and $47 million at December 31, 2016 and 2015 , respectively. Of this, $66 million and $27 million was classified as current and $10 million and $20 million was classified as noncurrent at December 31, 2016 and 2015 , respectively. SDG&E had $12 million and $23 million of restricted cash at December 31, 2016 and 2015 , respectively, which represents funds held by a trustee for a VIE (see “Variable Interest Entities – SDG&E – Otay Mesa VIE” below) to pay certain operating costs. In 2016 , $11 million of restricted cash was classified as current and $1 million as noncurrent. In 2015 , all restricted cash was classified as current. Sempra Mexico had restricted cash of $52 million classified as current at December 31, 2016 and $9 million and $20 million classified as noncurrent at December 31, 2016 and 2015 , respectively, primarily denominated in Mexican Pesos. These balances represent funds to pay for rights of way, license fees, permits, topographic surveys and other costs pursuant to trust and debt agreements related to pipeline projects. Sempra Renewables had restricted cash of $3 million and $4 million classified as current at December 31, 2016 and 2015 , respectively, primarily representing funds held in accordance with debt agreements at our wholly owned solar project. COLLECTION ALLOWANCES We record allowances for the collection of trade and other accounts and notes receivable, which include allowances for doubtful customer accounts and for other receivables. We show the changes in these allowances in the table below: COLLECTION ALLOWANCES (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated: Allowances for collection of receivables at January 1 $ 32 $ 34 $ 29 Provisions for uncollectible accounts 23 20 25 Write-offs of uncollectible accounts (20 ) (22 ) (20 ) Allowances for collection of receivables at December 31 $ 35 $ 32 $ 34 SDG&E: Allowances for collection of receivables at January 1 $ 9 $ 7 $ 5 Provisions for uncollectible accounts 6 7 7 Write-offs of uncollectible accounts (7 ) (5 ) (5 ) Allowances for collection of receivables at December 31 $ 8 $ 9 $ 7 SoCalGas: Allowances for collection of receivables at January 1 $ 17 $ 17 $ 12 Provisions for uncollectible accounts 14 11 15 Write-offs of uncollectible accounts (10 ) (11 ) (10 ) Allowances for collection of receivables at December 31 $ 21 $ 17 $ 17 We evaluate accounts receivable collectability using a combination of factors, including past due status based on contractual terms, trends in write-offs, the age of the receivable, counterparty creditworthiness, economic conditions and specific events, such as bankruptcies. Adjustments to the allowance for doubtful accounts are made when necessary based on the results of analysis, the aging of receivables, and historical and industry trends. We write off accounts receivable in the period in which we deem the receivable to be uncollectible. We record recoveries of accounts receivable previously written off when it is known that they will be received. INVENTORIES The California Utilities value natural gas inventory using the last-in first-out (LIFO) method. As inventories are sold, differences between the LIFO valuation and the estimated replacement cost are reflected in customer rates. These differences are generally temporary, but may become permanent if the natural gas inventory withdrawn from storage during the year is not replaced by year end. At December 31, 2016, SoCalGas recognized a permanent LIFO liquidation of $33 million . The California Utilities generally value materials and supplies at the lower of average cost or net realizable value. Sempra South American Utilities, Sempra Mexico, Sempra Renewables and Sempra LNG & Midstream value natural gas inventory and materials and supplies at the lower of average cost or net realizable value. Sempra Mexico and Sempra LNG & Midstream value liquefied natural gas (LNG) inventory using the first-in first-out method. The components of inventories by segment are as follows: INVENTORY BALANCES AT DECEMBER 31 (Dollars in millions) Natural gas LNG Materials and supplies Total 2016 2015 2016 2015 2016 2015 2016 2015 SDG&E $ 2 $ 6 $ — $ — $ 78 $ 69 $ 80 $ 75 SoCalGas(1) 11 49 — — 47 30 58 79 Sempra South American Utilities — — — — 27 30 27 30 Sempra Mexico — — 6 3 1 10 7 13 Sempra Renewables — — — — 4 3 4 3 Sempra LNG & Midstream 79 94 3 3 — 1 82 98 Sempra Energy Consolidated $ 92 $ 149 $ 9 $ 6 $ 157 $ 143 $ 258 $ 298 (1) At December 31, 2016 and 2015, SoCalGas’ natural gas inventory for core customers is net of an inventory loss related to the Aliso Canyon natural gas leak, which we discuss in Note 15. INCOME TAXES Income tax expense includes current and deferred income taxes from operations during the year. We record deferred income taxes for temporary differences between the book and the tax basis of assets and liabilities. Investment tax credits from prior years are amortized to income by the California Utilities over the estimated service lives of the properties as required by the CPUC. At our other businesses, we reduce the book basis of the related asset by the amount of investment tax credit earned. At Sempra Renewables, production tax credits are recognized in income tax expense as earned. Under the regulatory accounting treatment required for flow-through temporary differences, as discussed in Note 6, the California Utilities and Sempra Mexico recognize ▪ regulatory assets to offset deferred tax liabilities if it is probable that the amounts will be recovered from customers; and ▪ regulatory liabilities to offset deferred tax assets if it is probable that the amounts will be returned to customers. We currently do not record deferred income taxes for basis differences between financial statement and income tax investment amounts in non-U.S. subsidiaries and non-U.S. joint ventures because the related cumulative undistributed earnings are indefinitely reinvested. When there are uncertainties related to potential income tax benefits, in order to qualify for recognition, the position we take has to have at least a “more likely than not” chance of being sustained (based on the position’s technical merits) upon challenge by the respective authorities. The term “more likely than not” means a likelihood of more than 50 percent. Otherwise, we may not recognize any of the potential tax benefit associated with the position. We recognize a benefit for a tax position that meets the “more likely than not” criterion at the largest amount of tax benefit that is greater than 50 percent likely of being realized upon its effective resolution. Unrecognized tax benefits involve management’s judgment regarding the likelihood of the benefit being sustained. The final resolution of uncertain tax positions could result in adjustments to recorded amounts and may affect our effective tax rate. We provide additional information about income taxes in Note 6. GREENHOUSE GAS (GHG) ALLOWANCES The California Utilities, Sempra Mexico and Sempra LNG & Midstream are required by California Assembly Bill 32 to acquire GHG allowances for every metric ton of carbon dioxide equivalent emitted into the atmosphere during electric generation and natural gas transportation. At the California Utilities, many GHG allowances are allocated to us at no cost on behalf of our customers. We record purchased and allocated GHG allowances at the lower of weighted average cost or market, and include them in Other Current Assets and in Sundry on the Consolidated Balance Sheets based on the dates on which they are required to be surrendered. We measure the compliance obligation, which is based on emissions, at the carrying value of allowances held plus the fair value of additional allowances necessary to satisfy the obligation. The California Utilities balance costs and revenues associated with the GHG program through regulatory balancing accounts on the Consolidated Balance Sheets. Sempra Mexico and Sempra LNG & Midstream record the cost of GHG obligations in cost of sales. We include the obligation in Other Current Liabilities and Deferred Credits and Other on the Consolidated Balance Sheets based on the dates on which the allowances will be surrendered. We remove the assets and liabilities from the balance sheets as the allowances are surrendered. GHG allowances and obligations on our Consolidated Balance Sheets are as follows: GHG ALLOWANCES AND OBLIGATIONS AT DECEMBER 31 (Dollars in millions) Sempra Energy SDG&E SoCalGas 2016 2015 2016 2015 2016 2015 Assets: Current $ 40 $ 42 $ 16 $ 17 $ 24 $ 19 Noncurrent 295 201 182 141 109 43 Total assets $ 335 $ 243 $ 198 $ 158 $ 133 $ 62 Liabilities: Current $ 40 $ 41 $ 16 $ 17 $ 24 $ 18 Noncurrent 171 91 72 34 96 41 Total liabilities $ 211 $ 132 $ 88 $ 51 $ 120 $ 59 RENEWABLE ENERGY CERTIFICATES (RECs) RECs are energy rights established by governmental agencies for the environmental and social promotion of renewable electricity generation. A REC, and its associated attributes and benefits, can be sold separately from the underlying physical electricity associated with a renewable-based generation source in certain markets. Retail sellers of electricity obtain RECs through renewable power purchase agreements, internal generation or separate purchases in the market to comply with renewable portfolio standards established by the governmental agencies. RECs provide documentation for the generation of a unit of renewable energy that is used to verify compliance with renewable portfolio standards. The cost of RECs at SDG&E is recorded in Cost of Electric Fuel and Purchased Power, which is recoverable in rates, on the Consolidated Statements of Operations. PROPERTY, PLANT AND EQUIPMENT (PP&E) PP&E primarily represents the buildings, equipment and other facilities used by the Sempra Utilities to provide natural gas and electric utility services, and by Sempra Infrastructure in their operations, including construction work in progress at these operating units. PP&E also includes lease improvements and other equipment at Parent and Other, as well as property acquired under a build-to-suit lease, which we discuss further in Note 15. Our plant costs include ▪ labor ▪ materials and contract services ▪ expenditures for replacement parts incurred during a major maintenance outage of a generating plant In addition, the cost of utility plant at our rate-regulated businesses and non-utility regulated projects that meet the regulatory accounting requirements of U.S. GAAP at Sempra Mexico and Sempra LNG & Midstream includes AFUDC. We discuss AFUDC below. The cost of non-utility plant includes capitalized interest. Maintenance costs are expensed as incurred. The cost of most retired depreciable utility plant assets less salvage value is charged to accumulated depreciation. We discuss collateralized assets as security for loans in Note 5. PROPERTY, PLANT AND EQUIPMENT BY MAJOR FUNCTIONAL CATEGORY (Dollars in millions) Property, plant Depreciation rates for 2016 2015 2016 2015 2014 SDG&E: Natural gas operations $ 1,897 $ 1,642 2.40 % 2.52 % 2.72 % Electric distribution 6,497 6,151 3.86 3.79 3.79 Electric transmission(1) 5,152 4,870 2.66 2.62 2.59 Electric generation(2) 1,932 1,891 4.00 3.89 3.86 Other electric(3) 1,059 981 5.66 5.73 7.09 Construction work in progress(1) 1,307 923 NA NA NA Total SDG&E 17,844 16,458 SoCalGas: Natural gas operations(4) 14,428 13,241 3.64 3.83 3.89 Other non-utility 34 110 6.55 3.95 2.88 Construction work in progress 882 820 NA NA NA Total SoCalGas 15,344 14,171 Estimated Weighted average Other operating units and parent (5) : useful lives useful life Land and land rights 381 289 20 to 55 years(7) 33 Machinery and equipment: Utility electric distribution operations 1,519 1,362 12 to 60 years 52 Generating plants 1,874 782 3 to 100 years 32 LNG terminals 1,129 1,124 5 to 43 years 43 Pipelines and storage 3,242 2,311 3 to 55 years 43 Other 235 233 1 to 50 years 12 Construction work in progress 1,488 1,022 NA NA Other(6) 568 448 1 to 80 years 32 10,436 7,571 Total Sempra Energy Consolidated $ 43,624 $ 38,200 (1) At December 31, 2016 , includes $388 million in electric transmission assets and $46 million in construction work in progress related to SDG&E’s 91 -percent interest in the Southwest Powerlink (SWPL) transmission line, jointly owned by SDG&E with other utilities. 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 its share of the project and participates in decisions concerning operations and capital expenditures. (2) Includes capital lease assets of $258 million at both December 31, 2016 and 2015 , primarily related to variable interest entities of which SDG&E is not the primary beneficiary. (3) Includes capital lease assets of $21 million and $20 million at December 31, 2016 and 2015 , respectively. (4) Includes capital lease assets of $32 million and $30 million at December 31, 2016 and 2015 , respectively. (5) Includes $128 million and $142 million at December 31, 2016 and 2015 , respectively, of utility plant, primarily pipelines and other distribution assets, at Ecogas. Includes $204 million and $28 million at December 31, 2015 of utility plant, primarily pipelines and other distribution assets, at Mobile Gas and Willmut Gas, respectively. (6) Includes capital lease assets of $136 million at both December 31, 2016 and 2015 , related to a build-to-suit lease. (7) Estimated useful lives are for land rights. Depreciation expense is computed using the straight-line method over the asset’s estimated original composite useful life, the CPUC-prescribed period for the California Utilities, or the remaining term of the site leases, whichever is shortest. Depreciation expense on our Consolidated Statements of Operations is as follows: DEPRECIATION EXPENSE (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated $ 1,236 $ 1,178 $ 1,126 SDG&E 583 544 512 SoCalGas 474 459 429 Accumulated depreciation on our Consolidated Balance Sheets is as follows: ACCUMULATED DEPRECIATION (Dollars in millions) December 31, 2016 2015 SDG&E: Accumulated depreciation: Electric(1) $ 3,873 $ 3,512 Natural gas 721 690 Total SDG&E 4,594 4,202 SoCalGas: Accumulated depreciation of natural gas utility plant in service(2) 5,079 4,810 Accumulated depreciation – other non-utility 13 90 Total SoCalGas 5,092 4,900 Other operating units and parent and other: Accumulated depreciation – other(3) 755 860 Accumulated depreciation of utility electric distribution operations 252 199 1,007 1,059 Total Sempra Energy Consolidated $ 10,693 $ 10,161 (1) Includes accumulated depreciation for assets under capital lease of $39 million and $34 million at December 31, 2016 and 2015 , respectively. Includes $229 million at December 31, 2016 related to SDG&E’s 91 -percent interest in the SWPL transmission line, jointly owned by SDG&E and other utilities. (2) Includes accumulated depreciation for assets under capital lease of $31 million and $29 million at December 31, 2016 and 2015 , respectively. (3) Includes $33 million and $36 million at December 31, 2016 and 2015 , respectively, of accumulated depreciation for utility plant at Ecogas. Includes $35 million and $3 million at December 31, 2015 of accumulated depreciation for utility plant at Mobile Gas and Willmut Gas, respectively. The California Utilities finance their construction projects with debt and equity funds. The CPUC and the FERC allow the recovery of the cost of these funds by the capitalization of AFUDC, calculated using rates authorized by the CPUC and the FERC, as a cost component of PP&E. The California Utilities earn a return on the capitalized AFUDC after the utility property is placed in service and recover the AFUDC from their customers over the expected useful lives of the assets. Pipeline projects currently under construction by Sempra Mexico and Sempra LNG & Midstream that are both subject to certain regulation and meet U.S. GAAP regulatory accounting requirements record the impact of AFUDC related to equity. Sempra South American Utilities, Sempra Mexico, Sempra Renewables and Sempra LNG & Midstream capitalize interest costs incurred to finance capital projects and interest on equity method investments that have not commenced planned principal operations. The California Utilities also capitalize certain interest costs. Interest capitalized and AFUDC are as follows: CAPITALIZED FINANCING COSTS (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated $ 236 $ 201 $ 167 SDG&E 62 51 52 SoCalGas 55 49 34 GOODWILL AND OTHER INTANGIBLE ASSETS Goodwil l Goodwill is the excess of the purchase price over the fair value of the identifiable net assets of acquired companies measured at the time of acquisition. Goodwill is not amortized, but we test it for impairment annually on October 1 or whenever events or changes in circumstances necessitate an evaluation. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, and the book value of goodwill is greater than its fair value on the test date, we record a goodwill impairment loss. For our annual goodwill impairment testing, under current U.S. GAAP guidance we have the option to first make a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before applying the two-step, quantitative goodwill impairment test. If we elect to perform the qualitative assessment, we evaluate relevant events and circumstances, including but not limited to, macroeconomic conditions, industry and market considerations, cost factors, changes in key personnel and the overall financial performance of the reporting unit. If, after assessing these qualitative factors, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we perform the two-step goodwill impairment test. When we perform the two-step, quantitative goodwill impairment test, we exercise judgment to develop estimates of the fair value of the reporting unit and the corresponding goodwill. Our fair value estimates are developed from the perspective of a knowledgeable market participant. We consider observable transactions in the marketplace for similar investments, if available, as well as an income-based approach such as discounted cash flow analysis. A discounted cash flow analysis may be based directly on anticipated future revenues and expenses and may be performed based on free cash flows generated within the reporting unit. Critical assumptions that affect our estimates of fair value may include ▪ consideration of market transactions ▪ future cash flows ▪ the appropriate risk-adjusted discount rate ▪ country risk ▪ entity risk Changes in the carrying amount of goodwill on the Sempra Energy Consolidated Balance Sheets are as follows: GOODWILL (Dollars in millions) Sempra South American Utilities Sempra Mexico Sempra LNG & Midstream Total Balance at December 31, 2014 $ 834 $ 25 $ 72 $ 931 Foreign currency translation(1) (112 ) — — (112 ) Balance at December 31, 2015 722 25 72 819 Acquisition of businesses — 1,590 — 1,590 Sale of business — — (72 ) (72 ) Foreign currency translation(1) 27 — — 27 Balance at December 31, 2016 $ 749 $ 1,615 $ — $ 2,364 (1) We record the offset of this fluctuation to Other Comprehensive Income (Loss). In 2016, Sempra Mexico recorded goodwill of $ 1 |
ACQUISTION AND DIVESTITURE ACTI
ACQUISTION AND DIVESTITURE ACTIVITY | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquistion and divestiture activity | ACQUISITION AND DIVESTITURE ACTIVITY We consolidate assets acquired and liabilities assumed as of the purchase date and include earnings from acquisitions in consolidated earnings after the purchase date. ACQUISITIONS Sempra Mexico The following table summarizes the total fair value of the 2016 business combinations at Sempra Mexico described below and the values of the assets acquired and liabilities assumed at the dates of acquisition: PURCHASE PRICE ALLOCATIONS (Dollars in millions) GdC Ventika At September 26, 2016(1) At December 14, 2016 Fair value of business combination: Cash consideration (fair value of total consideration) $ 1,144 $ 310 Fair value of equity interest in GdC immediately prior to acquisition 1,144 — Total fair value of business combination $ 2,288 $ 310 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 66 $ — Restricted cash — 68 Accounts receivable(2) 39 14 Other current assets 6 1 Other intangible assets — 154 Deferred income taxes — 23 Regulatory assets 33 — Property, plant and equipment 1,248 673 Other noncurrent assets 1 3 Short-term debt — (125 ) Accounts payable (11 ) (1 ) Due to unconsolidated affiliates (3 ) — Current portion of long-term debt (49 ) (7 ) Fixed-price contracts and other derivatives, current (6 ) (4 ) Other current liabilities (20 ) (8 ) Long-term debt (315 ) (478 ) Asset retirement obligations (5 ) (2 ) Deferred income taxes (127 ) (120 ) Fixed-price contracts and other derivatives, noncurrent (19 ) (10 ) Other noncurrent liabilities (11 ) — Total identifiable net assets 827 181 Goodwill 1,461 129 Total fair value of business combination $ 2,288 $ 310 (1) During the fourth quarter of 2016, we received additional information regarding GdC’s deferred income taxes as of the acquisition date, primarily related to basis differences in GdC’s property, plant and equipment. As a result, we recorded measurement period adjustments that resulted in a net increase to goodwill of $86 million , an increase in deferred income tax liabilities of $119 million and $33 million of regulatory assets related to deferred income taxes on AFUDC. (2) We expect acquired accounts receivable to be substantially realizable in cash. Accounts receivable are net of negligible collection allowances. At December 31, 2016, the purchase price allocations for the acquisitions were preliminary and subject to completion. Adjustments to the current fair value estimates in the above table may occur as the process conducted for various valuations and assessments is finalized primarily related to tax assets, liabilities and other attributes. During the measurement periods, which may be up to one year from the respective acquisition dates, we may record adjustments to the assets acquired and liabilities assumed with a corresponding offset to goodwill. Upon conclusion of the measurement periods or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded through earnings in the periods in which they occur. Gasoductos de Chihuahua S. de R.L. de C.V. Background and Financing. In July 2015, IEnova entered into an agreement to purchase Petróleos Mexicanos’ (or PEMEX, the Mexican state-owned oil company) 50-percent interest in GdC. GdC develops and operates energy infrastructure in Mexico. On September 21, 2016, IEnova received approval for the acquisition from Mexico’s Comisión Federal de Competencia Económica. On September 26, 2016, IEnova completed the acquisition of PEMEX’s 50 -percent interest in GdC for a purchase price of $1.144 billion (exclusive of $66 million of cash and cash equivalents acquired), plus the assumption of $364 million of long-term debt, increasing IEnova’s ownership interest in GdC to 100 percent . GdC became a consolidated subsidiary of IEnova on this date. Prior to the acquisition date, IEnova owned 50 percent of GdC and accounted for its interest as an equity method investment. The assets involved in the acquisition include three natural gas pipelines, an ethane pipeline, and a liquid petroleum gas pipeline and associated storage terminal. The transaction excludes the Los Ramones Norte pipeline, in which IEnova will continue holding an indirect 25 -percent ownership interest through GdC’s interest in DEN. As of the acquisition date, IEnova continues to hold a 50 -percent interest in DEN through GdC and accounts for it as an equity method investment. PEMEX continues to hold its 50 -percent interest in DEN, which enables us to have an ongoing relationship with PEMEX for joint development of new projects in the future. We paid $1.078 billion in cash ( $1.144 billion purchase price less $66 million of cash and cash equivalents acquired), which was funded using interim financing provided by Sempra Global through a $1.15 billion bridge loan to IEnova. Sempra Global funded the majority of the transaction using commercial paper borrowings. As we discuss in Note 1, in October 2016, IEnova completed a private follow-on offering of its common stock in the U.S. and outside of Mexico and a concurrent public common stock offering in Mexico. IEnova used a portion of the proceeds from the offerings to fully repay the Sempra Global bridge loan. Purchase Price Allocation. We accounted for this business combination using the acquisition method of accounting whereby the total fair value of the business acquired is allocated to identifiable assets acquired and liabilities assumed based on their respective fair values, with any excess recognized as goodwill at the Sempra Mexico reportable segment. We expect the GdC acquisition to have strategic benefits, including opportunities for expansion into areas such as the transportation and storage of refined products; and a larger platform and presence in Mexico to participate in energy sector reform, reflecting the value of goodwill recognized. None of the goodwill is expected to be deductible in Mexico or the United States for income tax purposes. Gain on Remeasurement of Equity Method Investment. In the year ended December 31, 2016, we recorded a pretax gain of $617 million ( $432 million after-tax) for the excess of the acquisition-date fair value of Sempra Mexico’s previously held equity interest in GdC over the carrying value of that interest, included as Remeasurement of Equity Method Investment on the Sempra Energy Consolidated Statement of Operations. We used a market approach to measure the acquisition-date fair value of IEnova’s equity interest in GdC immediately prior to the business acquisition. We discuss non-recurring fair value measures and the associated accounting impact of the GdC acquisition in Note 10. Valuation of GdC’s Assets and Liabilities. Based on the nature of the Mexico regulatory environment and the oversight surrounding the establishment and maintenance of rates that GdC charges for services on its assets, GdC applies the guidance under the provisions of U.S. GAAP governing rate-regulated operations. Therefore, when determining the fair value of the acquired assets and liabilities assumed, we considered the effect of regulation on a market participant’s view of the highest and best use of the assets, in particular for the fair value of GdC’s PP&E. Under U.S. GAAP, regulation is viewed as being a characteristic (restriction) of a regulated entity’s PP&E, and the impact of regulation is considered a fundamental input to measuring the fair value of PP&E in a business combination involving a regulated business. As a regulated business will generally earn a return of its costs and a reasonable return on its invested capital, but nothing more, the value of a regulated business is the value of its invested capital. Under this premise, the fair value of the PP&E of a regulated business is generally assumed to be equivalent to carrying value for financial reporting purposes. Management has concluded that the carrying value of GdC’s PP&E is representative of fair value. We applied an income approach, specifically the discounted cash flow method, to measure the fair value of debt and derivatives. We valued debt by discounting future debt payments by a market yield and we valued derivatives by discounting the future interest payments under the fixed and floating rates using current market data. For substantially all other assets and liabilities, our analysis indicates that historical carrying value approximates fair value due to their short-term nature. Impact on Operating Results. We incurred acquisition costs of $4 million and $1 million in the years ended December 31, 2016 and 2015, respectively. These costs are included in Operation and Maintenance Expense on the Sempra Energy Consolidated Statements of Operations. For the year ended December 31, 2016, the Sempra Energy Consolidated Statement of Operations includes $82 million of revenues and $33 million of earnings (after noncontrolling interest) from GdC since the September 26, 2016 date of acquisition. Ventika, S.A.P.I. de C.V. and Ventika II, S.A.P.I. de C.V. Background and Financing. On December 14, 2016, IEnova acquired 100 percent of the equity interests in the Ventika wind power generation facilities for cash consideration of $310 million and the assumption of $610 million of existing debt. Ventika is a 252 -MW wind farm located in Nuevo Leon, Mexico, that began commercial operations in April 2016. All of Ventika’s generation capacity is contracted under 20 -year, U.S. dollar-denominated power purchase agreements with five private off-takers. The acquisition was funded through $50 million of net proceeds from the IEnova equity offerings that we discuss in Note 1, $250 million of borrowings against Sempra Mexico’s revolving credit facility, and $10 million of available cash at IEnova. The acquisition also included $68 million of restricted cash that represents funds set aside for servicing debt, operations, and other costs pursuant to the long-term debt agreements. Purchase Price Allocation. We accounted for this business combination using the acquisition method of accounting whereby the total fair value of the business acquired is allocated to identifiable assets acquired and liabilities assumed based on their respective fair values, with any excess recognized as goodwill at the Sempra Mexico reportable segment. The factors contributing to the recognition of goodwill include the opportunity for us to secure a strategic position in Mexico’s emerging renewable energy market and the potential to further expand the existing wind power generation facilities. None of the goodwill is expected to be deductible in Mexico or in the United States for income tax purposes. Valuation of Ventika’s Assets and Liabilities. The fair values of the tangible and intangible assets acquired and liabilities assumed have been recognized based on their preliminary values at the acquisition date. Significant inputs used to measure the fair values of the acquired PP&E, intangible asset, debt, and derivatives are as follows: ▪ PP&E – We applied an income approach utilizing market based discounted cash flows. We utilized the pricing included in the existing power purchase agreements, which was determined to reflect current market rates in the Mexican renewable energy market. ▪ Intangible asset – Ventika is the holder of a renewable energy transmission and consumption permit that allows it to transmit its generated power to various locations within Mexico at beneficial rates and reduces the administrative burden to manage transmitting power to off-takers. With recent renewable energy market reforms in Mexico, these transmission and consumption permits are no longer available, resulting in higher tariffs for generators. We applied an income approach based on a cash flow differential approach that measures the fair value of the transmission rights by comparing the operating expenses under the transmission and consumption permit as compared to under the new, higher tariffs. This acquired intangible asset has an amortization period of 20 years , reflecting the life of the transmission and consumption transmission permit. ▪ Debt – Utilizing an income approach, we valued debt by discounting future debt payments by a market yield commensurate with the remaining term of the loans. ▪ Derivatives – Utilizing an income approach, we valued derivatives by discounting the future interest payments under the fixed and floating rates using current market data. Additionally, we recognized deferred income taxes on Ventika’s existing net operating losses, and for the difference between the fair values and tax bases of the net assets acquired using the Mexican statutory rate. For substantially all other assets and liabilities, our analysis indicates that historical carrying value approximates fair value due to their short-term nature. Impact on Operating Results. We incurred acquisition costs of $1 million in the year ended December 31, 2016, which are included in Operation and Maintenance Expense on the Sempra Energy Consolidated Statement of Operations. For the year ended December 31, 2016, the Sempra Energy Consolidated Statement of Operations includes $4 million of revenues and $3 million of earnings (after noncontrolling interest) from Ventika since the December 14, 2016 date of acquisition. Unaudited Pro Forma Information The following table presents unaudited pro forma information for the years ended December 31, 2016 and 2015, combining the historical results of operations of Sempra Energy, GdC and Ventika as though the acquisitions occurred on January 1, 2015. The pro forma information is not necessarily indicative of results that would have been achieved had the businesses been combined during the periods presented or the results that we will experience going forward. UNAUDITED PRO FORMA INFORMATION – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Years ended December 31, 2016 2015 Revenues $ 10,463 $ 10,473 Net income 1,145 1,938 Earnings 1,058 1,641 The unaudited pro forma information above assumes: ▪ the related IEnova equity offerings, discussed above and in Note 1, occurred on January 1, 2015, which results in a change in Sempra Energy’s noncontrolling interest in IEnova from 18.9 percent to 33.6 percent for all periods presented; ▪ the proceeds from the IEnova equity offerings were used to fund the acquisitions, instead of the bridge loan that was provided by Sempra Global to IEnova for the GdC acquisition, therefore interest expense on the commercial paper borrowings supporting the bridge loan is excluded for all periods presented; ▪ interest expense on the borrowings against Sempra Mexico’s revolving credit facility began when Ventika’s commercial operations commenced in April 2016; ▪ equity earnings, net of income tax, from GdC that were previously included in Sempra Energy’s results have been excluded for both periods presented; ▪ the gain related to the remeasurement of our previously held equity interest in GdC has been included in the year ended December 31, 2015, and accordingly, the year ended December 31, 2016 was adjusted to exclude the gain; and ▪ acquisition-related transaction costs have been included in the year ended December 31, 2015, and accordingly, the year ended December 31, 2016 was adjusted to exclude them. Most of Sempra Mexico’s operations, including GdC and Ventika, use the U.S. dollar as their functional currency. Sempra Renewables In July 2016, Sempra Renewables acquired a 100 -percent interest in a 100 -MW wind development project currently under construction in Huron County, Michigan, for a total purchase price of $22 million . The wind farm has a 15 -year power purchase agreement with a load serving entity that will commence upon commercial operation, expected in late 2017. In March 2015, Sempra Renewables invested $8 million to acquire a 100 -percent interest in a 78 -MW wind development project in Stearns County, Minnesota. The wind farm has a 20 -year power purchase agreement with a load serving entity and began commercial operation in December 2016. In May 2014, Sempra Renewables invested $121 million to become a 50 -percent partner with Consolidated Edison Development (Con Edison Development) in four fully operating solar facilities totaling 110 MW in Tulare County and Kings County, California (collectively, the California solar partnership). The renewable power from all of the projects has been sold under long-term contracts with a load serving entity. We account for our investment in the California solar partnership under the equity method. ASSETS HELD FOR SALE We classify assets as held for sale when management approves and commits to a formal plan to actively market an asset for sale and we expect the sale to close within the next 12 months. Upon classifying an asset as held for sale, we record the asset at the lower of its carrying value or its estimated fair value reduced for selling costs. Sempra Mexico In February 2016, management approved a plan to market and sell Sempra Mexico’s TdM, a 625 -MW natural gas-fired power plant located in Mexicali, Baja California, Mexico. As a result, we stopped depreciating the plant and classified it as held for sale. In connection with the sales process, in September 2016, Sempra Mexico obtained market information indicating that the fair value of TdM may be less than its carrying value. After performing an analysis of the information, Sempra Mexico reduced the carrying value of TdM by recognizing a noncash impairment charge of $131 million ( $111 million after-tax) in Impairment Losses on Sempra Energy’s Consolidated Statement of Operations. We discuss non-recurring fair value measures and the associated accounting impact on TdM in Note 10. In connection with classifying TdM as held for sale, we recognized $8 million in income tax expense in 2016 for a deferred Mexican income tax liability related to the excess of carrying value over the tax basis. As the Mexican income tax on this basis difference is based on current carrying value, foreign exchange rates and inflation, such amount could change in future periods until the date of sale. We are actively pursuing the sale of TdM, which we expect to be completed in the second half of 2017. At December 31, 2016, the carrying amounts of the major classes of assets and related liabilities held for sale associated with TdM are as follows: ASSETS HELD FOR SALE AT DECEMBER 31, 2016 (Dollars in millions) Termoeléctrica de Mexicali Inventories $ 9 Other current assets 30 Deferred income taxes 21 Property, plant and equipment, net 120 Other noncurrent assets 21 Total assets held for sale $ 201 Accounts payable $ 2 Other current liabilities 5 Deferred income taxes 14 Asset retirement obligations 4 Other noncurrent liabilities 22 Total liabilities held for sale $ 47 DIVESTITURES Sempra Mexico Sale of Equity Interest 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. Sempra Mexico recognized a pretax gain on the sale of $19 million ( $14 million after-tax). Included in the deconsolidation was net PP&E of $137 million and long-term debt, including current portion, of $82 million . 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 Rosamond Solar In December 2015, Sempra Renewables sold its 100 -percent interest in Rosamond Solar, a development project located in Antelope Valley, California for $26 million in cash. Upon completion of the sale that was comprised of $18 million of net PP&E, Sempra Renewables recognized a pretax gain of $8 million ( $5 million after-tax), which is included in Gain on Sale of Assets on our Consolidated Statement of Operations. Sale of Equity Interests In November 2014, Sempra Renewables formed a joint venture with Con Edison Development, by selling a 50 -percent interest in the 75 -MW Broken Bow 2 Wind project for $58 million in cash. Included in the deconsolidation was net PP&E of $151 million and long-term debt, including current portion, of $72 million . Sempra Renewables recognized a pretax gain on the sale of $14 million ( $8 million after-tax). In March 2014, Sempra Renewables formed a joint venture with Con Edison 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. Included in the deconsolidation was net PP&E of $247 million and long-term debt, including current portion, of $97 million . Sempra Renewables recognized a pretax gain on the sale of $27 million ( $16 million after-tax). Our remaining 50 -percent interests in these investments are accounted for under the equity method. Based on the nature of the underlying assets, these investments are considered in-substance real estate. Therefore, in accordance with applicable U.S. GAAP, for each of these 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. Pretax gains from the sale of our interests in these investments are included in Gain on Sale of Assets on our Consolidated Statement of Operations in 2014. Sempra LNG & Midstream EnergySouth Inc. In September 2016, Sempra LNG & Midstream sold 100 percent of the outstanding equity of EnergySouth Inc. (EnergySouth), the parent company of Mobile Gas and Willmut Gas, to Spire Inc., formerly known as The Laclede Group, Inc. Sempra LNG & Midstream received cash proceeds of $318 million , net of $2 million cash sold, with the buyer assuming debt of $67 million . We recognized a pretax gain on the sale of $130 million ( $78 million after-tax). As we discuss in Note 15, litigation and any associated liabilities and insurance receivable at Mobile Gas were retained by Mobile Gas at the close of the transaction. Investment in Rockies Express In March 2016, Sempra LNG & Midstream entered into an agreement to sell its 25 -percent interest in Rockies Express to a subsidiary of Tallgrass Development, LP for cash consideration of $440 million , subject to adjustment at closing. The transaction closed in May 2016 for total cash proceeds of $443 million . At the date of the agreement, the carrying value of Sempra LNG & Midstream’s investment in Rockies Express was $484 million . Following the execution of the agreement, Sempra LNG & Midstream measured the fair value of its equity method investment at $440 million , and recognized a $44 million ( $27 million after-tax) impairment in Equity Earnings, Before Income Tax, on the Sempra Energy Consolidated Statement of Operations. We discuss non-recurring fair value measures and the associated accounting impact on our investment in Rockies Express in Note 10. In the second quarter of 2016, Sempra LNG & Midstream permanently released pipeline capacity that it held with Rockies Express and others, as we discuss in Note 15. Mesquite Power Plant In April 2015, Sempra LNG & Midstream sold the remaining 625 -MW block of the Mesquite Power plant that was classified as held for sale at December 31, 2014, together with a related power sales contract, for net cash proceeds of $347 million . We recognized a pretax gain on the sale of $61 million ( $36 million after-tax), included in Gain on Sale of Assets on our Consolidated Statement of Operations. Cameron LNG JV On August 6, 2014, Sempra LNG & Midstream and its project partners, comprised of affiliates of ENGIE 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 regard 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. The effective date of Cameron LNG JV among Sempra Energy and its project partners occurred on October 1, 2014. Our equity in Cameron LNG JV was derived from our contribution of Cameron LNG, LLC to the joint venture at its historical carrying value. Included in the deconsolidation was net PP&E of approximately $1.0 billion . The other partners were issued equity interests in Cameron LNG JV in an aggregate of 49.8 percent . Cameron LNG, LLC thereby ceased to be wholly owned by Sempra LNG & Midstream, which retained a 50.2 -percent interest in Cameron LNG JV. As of the October 1, 2014 effective date, Sempra LNG & Midstream began to account for its investment in Cameron LNG JV under the equity method. Sempra Energy did not recognize a gain or loss related to the contribution of Cameron LNG, LLC. We provide additional information concerning the Cameron LNG JV in Note 4. The following table summarizes the deconsolidation of the following previously wholly owned subsidiaries: 2016: ▪ EnergySouth 2014: ▪ Energía Sierra Juárez ▪ Broken Bow 2 Wind ▪ Copper Mountain Solar 3 ▪ Cameron LNG, LLC DECONSOLIDATION OF SUBSIDIARIES (Dollars in millions) Years ended December 31, 2016 2014 Proceeds, net of transaction costs $ 304 $ 152 Cash (2 ) (10 ) Restricted cash — (5 ) Inventory (3 ) — Other current assets (14 ) (23 ) Regulatory assets (12 ) — Goodwill (72 ) — Property, plant and equipment, net (199 ) (1,557 ) Other noncurrent assets (53 ) (65 ) Accounts payable and accrued expenses 12 188 Due to affiliates — 39 Other current liabilities 13 — Long-term debt, including current portion 67 251 Deferred income taxes 36 — Regulatory liabilities 23 — Asset retirement obligations 12 — Other noncurrent liabilities 18 12 Accumulated other comprehensive income — (7 ) Gain on sale of business and equity interests(1) (130 ) (60 ) (Increase) in equity method investments upon deconsolidation $ — $ (1,085 ) (1) Included in Gain on Sale of Assets on our Consolidated Statements of Operations. |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | NOTE 4. INVESTMENTS IN UNCONSOLIDATED ENTITIES We generally account for investments under the equity method when we have significant influence over, but do not have control of, these entities. In these cases, our pro rata shares of the entities’ net assets are included in Investments on the Consolidated Balance Sheets. We adjust each investment for our share of each investee’s earnings or losses, dividends, and other comprehensive income or loss. We evaluate the carrying value of unconsolidated entities for impairment under the U.S. GAAP provisions for equity method investments. We provide the carrying value of our investments and earnings (losses) on these investments below: EQUITY METHOD AND OTHER INVESTMENT BALANCES (Dollars in millions) December 31, 2016 2015 Sempra South American Utilities: Eletrans(1) $ (8 ) $ (12 ) Sempra Mexico: Ductos y Energéticos del Norte 42 — Energía Sierra Juárez(2) 38 30 Gasoductos de Chihuahua(3) — 489 Infraestructura Marina del Golfo 100 — Sempra Renewables: Wind: Auwahi Wind 41 44 Broken Bow 2 Wind 35 41 Cedar Creek 2 Wind 75 75 Flat Ridge 2 Wind 271 275 Fowler Ridge 2 Wind 43 46 Mehoopany Wind 92 92 Solar: California solar partnership 113 120 Copper Mountain Solar 2 33 32 Copper Mountain Solar 3 42 44 Mesquite Solar 1 86 86 Other 13 — Sempra LNG & Midstream: Cameron LNG JV(4) 997 983 Rockies Express Pipeline LLC(5) — 477 Parent and other: RBS Sempra Commodities LLP 67 67 Total equity method investments 2,080 2,889 Other 17 16 Total $ 2,097 $ 2,905 (1) Includes losses on forward exchange contracts entered into to manage the foreign currency exchange rate risk of the Chilean Unidad de Fomento (CLF) relative to the U.S. dollar, related to certain construction commitments that are denominated in CLF. The contracts settle based on anticipated payments to vendors, generally monthly, ending in July 2018. (2) The carrying value of our equity method investment is $12 million higher than the underlying equity in the net assets of the investee due to the remeasurement of our retained investment to fair value. (3) The carrying value of our equity method investment was $65 million higher than the underlying equity in the net assets of the investee due to equity method goodwill at December 31, 2015. (4) The carrying value of our equity method investment is $190 million and $143 million higher than the underlying equity in the net assets of the investee at December 31, 2016 and 2015 , respectively, primarily due to guarantees, which we discuss below, and interest capitalized on the investment, as the joint venture has not commenced its planned principal operations. (5) The carrying value of our equity method investment at December 31, 2015 was $357 million lower than the underlying equity in the net assets of the investee due to an impairment charge recorded in 2012. EARNINGS (LOSSES) FROM EQUITY METHOD INVESTMENTS (Dollars in millions) Years ended December 31, 2016 2015 2014 Earnings (losses) recorded before income tax: Sempra Renewables: Wind: Auwahi Wind $ 4 $ 4 $ 4 Broken Bow 2 Wind (2 ) (2 ) — Cedar Creek 2 Wind (2 ) (6 ) (3 ) Flat Ridge 2 Wind (7 ) (12 ) (7 ) Fowler Ridge 2 Wind 4 4 2 Mehoopany Wind — (1 ) (1 ) Solar: California solar partnership 7 6 6 Copper Mountain Solar 2 6 7 3 Copper Mountain Solar 3 8 8 2 Mesquite Solar 1 17 16 14 Other (1 ) — — Sempra LNG & Midstream: Cameron LNG JV (2 ) 5 2 Rockies Express Pipeline LLC (26 ) 79 60 Parent and other: RBS Sempra Commodities LLP — (4 ) (2 ) Other — — 1 $ 6 $ 104 $ 81 Earnings (losses) recorded net of income tax(1): Sempra South American Utilities: Eletrans $ 3 $ (4 ) $ (4 ) Sempra Mexico: Ductos y Energéticos del Norte 5 — — Energía Sierra Juárez 6 6 3 Gasoductos de Chihuahua 64 83 39 $ 78 $ 85 $ 38 (1) As the earnings (losses) from these investments are recorded net of income tax, they are presented below the income tax expense line, so as not to impact our effective income tax rate . Our share of the undistributed earnings of equity method investments was $44 million and $299 million at December 31, 2016 and 2015 , respectively. The December 31, 2016 and 2015 balances do not include remaining distributions of $67 million associated with our investment in RBS Sempra Commodities LLP (RBS Sempra Commodities) and expected to be received from the partnership as it is dissolved, as we discuss below. SEMPRA MEXICO GdC and DEN As we discuss in Note 3, on September 26, 2016, IEnova completed the acquisition of the remaining 50 -percent interest in GdC and GdC became a consolidated subsidiary. Prior to the acquisition date, IEnova owned 50 percent of GdC and accounted for its interest as an equity method investment. As of the acquisition date, IEnova accounts for GdC’s 50 -percent interest in DEN as an equity method investment. Infraestructura Marina del Golfo (IMG) In June 2016, IMG, a joint venture between IEnova and a subsidiary of TransCanada Corporation, was awarded the right to build, own and operate the Sur de Texas – Tuxpan natural gas marine pipeline by the Federal Electricity Commission (Comisión Federal de Electricidad, or CFE). IEnova has a 40 -percent interest in the project and accounts for its interest as an equity method investment, and TransCanada Corporation owns the remaining 60 -percent interest. The project is expected to be completed in the second half of 2018 and is fully contracted under a 25 -year natural gas transportation service contract with the CFE. During the year ended December 31, 2016 , Sempra Mexico invested cash of $100 million in the IMG joint venture. 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., as we discuss further in Note 3. SEMPRA RENEWABLES Sempra Renewables has 50 -percent interests in wind and solar energy generation facilities in operation in the U.S. The generating capacities of the facilities are contracted under long-term power purchase agreements. These facilities are accounted for under the equity method. SEMPRA LNG & MIDSTREAM Rockies Express As we discuss in Note 3, in May 2016, Sempra LNG & Midstream sold its 25 -percent interest in Rockies Express, a partnership that operates a natural gas pipeline, REX, that links the Rocky Mountain region to the upper Midwest and the eastern United States. In April 2015, Sempra LNG & Midstream invested $113 million of cash in Rockies Express to repay project debt that matured in early 2015. Cameron LNG JV The Cameron LNG JV is a joint venture partnership that was formed effective October 1, 2014 among Sempra Energy and three project partners, as we discuss in Note 3. The Cameron LNG existing regasification terminal contributed to the joint venture includes two marine berths and three LNG storage tanks, and is capable of processing 1.5 billion cubic feet (Bcf) of natural gas per day. The current liquefaction project, which is utilizing Cameron LNG JV’s existing facilities, is comprised of three liquefaction trains and is being designed to a nameplate capacity of 13.9 million tonnes per annum (Mtpa) of LNG, with an expected export capability of 12 Mtpa of LNG, or approximately 1.7 Bcf per day. As of October 1, 2014, Sempra LNG & Midstream began accounting for its investment in Cameron LNG JV under the equity method. During the years ended December 31, 2016 and 2015, Sempra LNG & Midstream capitalized $47 million and $49 million , respectively, of interest related to this equity method investment that has not commenced planned principal operations. During the year ended December 31, 2015, Sempra LNG & Midstream invested $10 million of cash in Cameron LNG JV. Cameron LNG JV Financing General. On August 6, 2014, Cameron LNG JV 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 JV 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 three-train 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 kind with the lenders of the type participating in the Cameron LNG JV financing. On August 6, 2014, Sempra Energy entered into agreements for the benefit of all of Cameron LNG JV’s creditors under the Loan Facility Agreements and related finance documents. Pursuant to these agreements, Sempra Energy has severally guaranteed 50.2 percent of Cameron LNG JV’s obligations under the Loan Facility Agreements and related finance documents, or a maximum amount of $3.9 billion . Guarantees for the remaining 49.8 percent of Cameron LNG JV’s senior secured financing have been provided by the other project partners. The occurrence of the effectiveness of the joint venture on October 1, 2014 was a condition precedent to first disbursement of funds under the Loan Facility Agreements. The Sempra Energy guarantee of 50.2 percent of Cameron LNG JV financing also became effective upon effectiveness of the joint venture. Sempra Energy’s agreements and guarantees will terminate upon financial completion of the three-train Cameron LNG project, which is subject to satisfaction of certain conditions, including all three trains achieving commercial operations and meeting certain operational performance tests. We expect the project to achieve financial completion and the guarantees to be terminated approximately nine months after all three trains achieve commercial operation. Sempra Energy recorded a liability of $82 million on October 1, 2014, with an associated carrying value of $43 million at December 31, 2016, for the fair value of its obligations associated with the Loan Facility Agreements and related finance documents, which constitute guarantees. This liability is being reduced on a straight-line basis over the duration of the guarantees by recognizing equity earnings from Cameron LNG JV, included in Equity Earnings, Before Income Tax. On August 6, 2014, Sempra Energy and the other project partners entered into a transfer restrictions agreement with Société Générale, as intercreditor agent for the lenders under the Loan Facility Agreements. Pursuant to the transfer restriction agreement, Sempra Energy agreed to certain restrictions on its ability to dispose of Sempra Energy’s indirect fully diluted economic and beneficial ownership interests in Cameron LNG JV. These restrictions vary over time. Prior to financial completion of the three-train Cameron LNG project, Sempra Energy must retain 37.65 percent of such interest in Cameron LNG JV. Starting six months after financial completion of the three-train Cameron LNG project, Sempra Energy must retain at least 10 percent of the indirect fully diluted economic and beneficial ownership interest in Cameron LNG JV. In addition, at all times, a Sempra Energy controlled (but not necessarily wholly owned) subsidiary must directly own 50.2 percent of the membership interests of the Cameron LNG JV. 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 percent per annum over LIBOR following financial completion of the project. The Loan Facility Agreements require Cameron LNG JV 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 . In November 2014, Cameron LNG JV entered into floating-to-fixed interest rate swaps for approximately $3.7 billion notional amount, resulting in an effective fixed rate of 3.19 percent for the LIBOR component of the interest rate on the loans. In June 2015, Cameron LNG JV entered into additional floating-to-fixed interest rate swaps effective starting in 2020, for approximately $1.5 billion notional amount, resulting in an effective fixed rate of 3.32 percent for the LIBOR component of the interest rate on the loans. Mandatory Prepayments. Cameron LNG JV 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 JV’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 JV’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 JV, if Cameron LNG JV’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 JV’s tolling customers to Japanese LNG buyers fall below a certain minimum threshold under certain circumstances. Events of Default. Cameron LNG JV’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 JV; 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 an 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 JV’s financing and a potential demand on Sempra Energy’s guarantees. Security. To support Cameron LNG JV’s obligations under the Loan Facility Agreements and related finance documents, Cameron LNG JV has granted security over all of its assets, subject to customary exceptions, and all equity interests in Cameron LNG JV have been pledged to HSBC Bank USA, National Association, as security trustee for the benefit of all Cameron LNG JV’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 JV by Sempra Energy and the other project partners. The security trustee under Cameron LNG JV’s financing can demand that a payment be made by Sempra Energy under its guarantees 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 JV (taking into account cure periods) in the event of a failure by Cameron LNG JV 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). RBS SEMPRA COMMODITIES RBS Sempra Commodities is a United Kingdom limited liability partnership formed by Sempra Energy and The Royal Bank of Scotland plc (RBS) in 2008 to own and operate the commodities-marketing businesses previously operated through wholly owned subsidiaries of Sempra Energy. We and RBS sold substantially all of the partnership’s businesses and assets in four separate transactions completed in 2010 and 2011. We account for our investment in RBS Sempra Commodities under the equity method, and report miscellaneous costs since the sale of the business in Parent and Other. In April 2011, we and RBS entered into a letter agreement (Letter Agreement) which amended certain provisions of the agreements that formed RBS Sempra Commodities. The Letter Agreement addresses the wind-down of the partnership and the distribution of the partnership’s remaining assets. The investment balance of $67 million at December 31, 2016 reflects remaining distributions expected to be received from the partnership in accordance with the Letter Agreement. The timing and amount of distributions, if any, may be impacted by the matters we discuss related to RBS Sempra Commodities in Note 15 in “Legal Proceedings – Other Litigation.” In addition, amounts may be retained by the partnership for an extended period of time to help offset unanticipated future general and administrative costs necessary to complete the dissolution of the partnership. In connection with the Letter Agreement described above, we also released RBS from its indemnification obligations with respect to items for which J.P. Morgan Chase & Co. (JP Morgan), one of the buyers of the partnership’s businesses, has agreed to indemnify us. SUMMARIZED FINANCIAL INFORMATION We present summarized financial information below, aggregated for all of our equity method investments for the periods in which we were invested in the entity. The amounts below represent the aggregate financial position and results of operations of 100 percent of each of Sempra Energy’s equity method investments. SUMMARIZED FINANCIAL INFORMATION (Dollars in millions) Years ended December 31, 2016(1) 2015 2014 Gross revenues $ 1,079 $ 1,533 $ 1,296 Operating expense (726 ) (845 ) (749 ) Income from operations 353 688 547 Interest expense (127 ) (312 ) (298 ) Net income/Earnings(2) 252 440 291 At December 31, 2016(1) 2015 Current assets $ 704 $ 750 Noncurrent assets 9,970 15,112 Current liabilities 629 859 Noncurrent liabilities 6,627 7,862 (1) On September 26, 2016, IEnova completed the acquisition of PEMEX’s 50-percent interest in GdC, increasing its ownership percentage to 100 percent, and on May 9, 2016, Sempra LNG & Midstream sold its 25-percent interest in Rockies Express. At December 31, 2016, GdC and Rockies Express are no longer equity method investments. (2) Except for our investments in South America and Mexico, there was no income tax recorded by the entities, as they are primarily domestic partnerships. GUARANTEES Project financing at our solar and wind joint ventures generally requires the joint venture partners, for each partner’s interest, to return cash to the projects in the event that the projects do not meet certain cash flow criteria or in the event that the projects’ debt service, operation and maintenance, and firm transmission and production tax credits reserve accounts are not maintained at specific thresholds. In some cases, the joint venture partners have provided guarantees to the lenders in lieu of the projects funding the reserve account requirements. We recorded liabilities for the fair value of certain of our obligations associated with these guarantees and the liabilities are being amortized over their expected lives. The outstanding loans at our solar and wind joint ventures are not guaranteed by the partners, but are secured by project assets. At December 31, 2016 , we provided guarantees aggregating a maximum of $332 million with an associated aggregated carrying value of $8 million for guarantees related to project financing. In addition, at December 31, 2016 , we provided guarantees to solar and wind farm joint ventures aggregating a maximum of $164 million with an associated aggregated carrying value of $2 million , primarily related to purchased-power agreements and engineering, procurement and construction contracts. |
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES LINES OF CREDIT At December 31, 2016 , Sempra Energy Consolidated had an aggregate of $4.3 billion in three primary committed lines of credit for Sempra Energy, Sempra Global and the California Utilities to provide liquidity and to support commercial paper, the principal terms of which we describe below. Available unused credit on these lines at December 31, 2016 was approximately $3 billion . Our foreign operations have additional general purpose credit facilities aggregating $1.7 billion at December 31, 2016 . Available unused credit on these lines totaled $1 billion at December 31, 2016 . PRIMARY U.S. COMMITTED LINES OF CREDIT (Dollars in millions) At December 31, 2016 Total facility Commercial paper outstanding Letters of credit outstanding Available unused credit Sempra Energy(1) $ 1,000 $ — $ 65 $ 935 Sempra Global(2) 2,335 1,181 — 1,154 California Utilities(3): SDG&E 750 — — 750 SoCalGas 750 62 — 688 Less: subject to a combined limit of $1 billion for both utilities (500 ) — — (500 ) 1,000 62 — 938 Total $ 4,335 $ 1,243 $ 65 $ 3,027 (1) The facility also provides for issuance of up to $400 million of letters of credit on behalf of Sempra Energy with the amount of borrowings otherwise available under the facility reduced by the amount of outstanding letters of credit. (2) Sempra Energy guarantees Sempra Global’s obligations under the credit facility. (3) The facility also provides for the issuance of letters of credit on behalf of each utility subject to a combined letter of credit commitment of $250 million for both utilities. The amount of borrowings otherwise available under the facility is reduced by the amount of outstanding letters of credit. Related to the committed lines of credit in the table above: ▪ Each is a 5 -year syndicated revolving credit agreement expiring in October 2020. ▪ Citibank N.A. serves as administrative agent for the Sempra Energy and Sempra Global facilities and JPMorgan Chase Bank, N.A. serves as administrative agent for the California Utilities combined facility. ▪ Each facility has a syndicate of 21 lenders. No single lender has greater than a 7 -percent share in any facility. ▪ Sempra Energy, SDG&E and SoCalGas must maintain a ratio of indebtedness to total capitalization (as defined in each agreement) of no more than 65 percent at the end of each quarter. Each entity is in compliance with this and all other financial covenants under its respective credit facility at December 31, 2016. ▪ Borrowings bear interest at benchmark rates plus a margin that varies with Sempra Energy’s credit ratings in the case of the Sempra Energy and Sempra Global lines of credit, and with the borrowing utility’s credit rating in the case of the California Utilities line of credit. ▪ The California Utilities’ obligations under their 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. CREDIT FACILITIES IN SOUTH AMERICA AND MEXICO (U.S. dollar equivalent in millions) At December 31, 2016 Denominated in Total facility Amount Available unused credit Sempra South American Utilities(1): Peru(2) Peruvian sol $ 392 $ 179 (3) $ 213 Chile Chilean peso 113 — 113 Sempra Mexico: 5-year revolver expiring in August 2020 with a syndicate of eight lenders U.S. dollar 1,170 446 724 Total $ 1,675 $ 625 $ 1,050 (1) The credit facilities were entered into to finance working capital and for general corporate purposes and expire between 2017 and 2019. (2) The Peruvian facilities require a debt to equity ratio of no more than 170 percent , with which Peru is in compliance at December 31, 2016. (3) Includes bank guarantees of $18 million . WEIGHTED AVERAGE INTEREST RATES The weighted average interest rates on the total short-term debt at Sempra Energy Consolidated were 1.51 percent and 1.09 percent at December 31, 2016 and 2015 , respectively. At December 31, 2016, the weighted average interest rate on total short-term debt at SoCalGas was 0.75 percent . At December 31, 2015, the weighted average interest rate on total short-term debt at SDG&E was 1.01 percent . LONG-TERM DEBT The following tables show the detail and maturities of long-term debt outstanding: LONG-TERM DEBT (Dollars in millions) December 31, 2016 2015 SDG&E First mortgage bonds (collateralized by plant assets): Bonds at variable rates (1.151% at December 31, 2016) March 9, 2017 $ 140 $ 140 1.65% July 1, 2018(1) 161 161 3% August 15, 2021 350 350 1.914% payable 2015 through February 2022 197 232 3.6% September 1, 2023 450 450 2.5% May 15, 2026 500 — 6% June 1, 2026 250 250 5% payable 2015 through December 2027(2) — 105 5.875% January and February 2034(1) 176 176 5.35% May 15, 2035 250 250 6.125% September 15, 2037 250 250 4% May 1, 2039(1) 75 75 6% June 1, 2039 300 300 5.35% May 15, 2040 250 250 4.5% August 15, 2040 500 500 3.95% November 15, 2041 250 250 4.3% April 1, 2042 250 250 4,349 3,989 Other long-term debt: OMEC LLC variable-rate loan (5.2925% after floating-to-fixed rate swaps effective 2007), payable 2013 through April 2019 (collateralized by OMEC plant assets) 305 315 Capital lease obligations: Purchased-power agreements 239 243 Other 1 1 545 559 4,894 4,548 Current portion of long-term debt (191 ) (50 ) Unamortized discount on long-term debt (11 ) (10 ) Unamortized debt issuance costs (34 ) (33 ) Total SDG&E 4,658 4,455 SoCalGas First mortgage bonds (collateralized by plant assets): 5.45% April 15, 2018 250 250 1.55% June 15, 2018 250 250 3.15% September 15, 2024 500 500 3.2% June 15, 2025 350 350 2.6% June 15, 2026 500 — 5.75% November 15, 2035 250 250 5.125% November 15, 2040 300 300 3.75% September 15, 2042 350 350 4.45% March 15, 2044 250 250 3,000 2,500 Other long-term debt (uncollateralized): 1.875% Notes payable 2016 through May 2026(1) 4 8 5.67% Notes January 18, 2028 5 5 Capital lease obligations — 1 9 14 3,009 2,514 Current portion of long-term debt — (9 ) Unamortized discount on long-term debt (7 ) (7 ) Unamortized debt issuance costs (20 ) (17 ) Total SoCalGas 2,982 2,481 LONG-TERM DEBT (CONTINUED) (Dollars in millions) December 31, 2016 2015 Sempra Energy Other long-term debt (uncollateralized): 6.5% Notes June 1, 2016, including $300 at variable rates after fixed-to-floating rate swaps effective 2011 (4.77% at December 31, 2015) $ — $ 750 2.3% Notes April 1, 2017 600 600 6.15% Notes June 15, 2018 500 500 9.8% Notes February 15, 2019 500 500 1.625% Notes October 7, 2019 500 — 2.4% Notes March 15, 2020 500 500 2.85% Notes November 15, 2020 400 400 2.875% Notes October 1, 2022 500 500 4.05% Notes December 1, 2023 500 500 3.55% Notes June 15, 2024 500 500 3.75% Notes November 15, 2025 350 350 6% Notes October 15, 2039 750 750 Market value adjustments for interest rate swaps, net (3 ) (2 ) Build-to-suit lease(3) 137 136 Sempra South American Utilities Other long-term debt (uncollateralized): Chilquinta Energía – 4.25% Series B Bonds October 30, 2030 185 170 Luz del Sur Bank loans 5.05% to 6.7% payable 2016 through December 2018 75 136 Corporate bonds at 4.75% to 8.75% payable 2014 through September 2029 346 292 Other bonds at 3.77% to 4.61% payable 2020 through May 2022 7 8 Capital lease obligations 6 6 Sempra Mexico Other long-term debt (uncollateralized unless otherwise noted): Notes February 8, 2018 at variable rates (2.66% after floating-to-fixed rate cross-currency swaps effective 2013) 63 75 6.3% Notes February 2, 2023 (4.12% after cross-currency swap) 189 227 Notes at variable rates (4.63% after floating-to-fixed rate swaps effective 2014), payable 2016 through December 2026, collateralized by plant assets 352 — Bank loans including $254 at a weighted-average fixed rate of 6.67%, $187 at variable rates (weighted-average rate of 6.29% after floating-to-fixed rate swaps effective 2014) and $40 at variable rates (3.99% at December 31, 2016), payable 2016 through March 2032, collateralized by plant assets 481 — Sempra Renewables Other long-term debt (collateralized by project assets): Loan at variable rates (2.625% at December 31, 2016) payable 2012 through December 2028 except for $64 at 3.668% after floating-to-fixed rate swaps effective June 2012(1) 84 91 Sempra LNG & Midstream First mortgage bonds (Mobile Gas, collateralized by plant assets): 4.14% September 30, 2021(2) — 20 5% September 30, 2031(2) — 42 Other long-term debt (uncollateralized unless otherwise noted): Notes at 2.87% to 3.51% October 1, 2026(1) 20 19 8.45% Notes payable 2012 through December 2017, collateralized by parent guarantee 6 11 3.1% Notes December 30, 2018, collateralized by plant assets(1)(2) — 5 7,548 7,086 Current portion of long-term debt (722 ) (848 ) Unamortized discount on long-term debt (10 ) (10 ) Unamortized premium on long-term debt 4 5 Unamortized debt issuance costs (31 ) (35 ) Total other Sempra Energy 6,789 6,198 Total Sempra Energy Consolidated $ 14,429 $ 13,134 (1) Callable long-term debt not subject to make-whole provisions. (2) Early redemption or deconsolidated in 2016. (3) We discuss this lease in Note 15. MATURITIES OF LONG-TERM DEBT(1) (Dollars in millions) SDG&E SoCalGas Other Sempra Energy Total Sempra Energy Consolidated 2017 $ 186 $ — $ 719 $ 905 2018 207 500 707 1,414 2019 321 — 1,096 1,417 2020 36 — 996 1,032 2021 385 — 113 498 Thereafter 3,519 2,509 3,777 9,805 Total $ 4,654 $ 3,009 $ 7,408 $ 15,071 (1) Excludes capital lease obligations, build-to-suit lease, market value adjustments for interest rate swaps, discounts, premiums and debt issuance costs. Various long-term obligations totaling $6.5 billion at Sempra Energy at December 31, 2016 are unsecured. This includes unsecured long-term obligations totaling $9 million at SoCalGas. There were no unsecured long-term obligations at SDG&E. CALLABLE LONG-TERM DEBT At the option of Sempra Energy, SDG&E and SoCalGas, certain debt at December 31, 2016 is callable subject to premiums: CALLABLE LONG-TERM DEBT (Dollars in millions) SDG&E SoCalGas Other Total Not subject to make-whole provisions $ 412 $ 4 $ 104 $ 520 Subject to make-whole provisions 3,797 3,005 6,042 12,844 In addition, the OMEC LLC project financing loan discussed in Note 1, with $305 million of outstanding borrowings at December 31, 2016 , may be prepaid at the borrowers’ option. FIRST MORTGAGE BOND S The California Utilities issue first mortgage bonds secured by a lien on utility plant. The California Utilities may issue additional first mortgage bonds if in compliance with the provisions of their bond agreements (indentures). These indentures require, among other things, the satisfaction of pro forma earnings-coverage tests on first mortgage bond interest and the availability of sufficient mortgaged property to support the additional bonds, after giving effect to prior bond redemptions. The most restrictive of these tests (the property test) would permit the issuance, subject to CPUC authorization, of an additional $4.5 billion of first mortgage bonds at SDG&E and $0.7 billion at SoCalGas at December 31, 2016 . In May 2016, SDG&E publicly offered and sold $500 million of 2.50 -percent first mortgage bonds maturing in 2026. SDG&E used the proceeds from the offering to redeem, prior to a scheduled maturity in 2027, $105 million aggregate principal amount of 5 -percent, tax-exempt industrial development revenue bonds, to repay outstanding commercial paper and for other general corporate purposes. In June 2016, SoCalGas publicly offered and sold $500 million of 2.60 -percent first mortgage bonds maturing in 2026. SoCalGas used the proceeds from the offering to repay outstanding commercial paper and for other general corporate purposes. OTHER LONG-TERM DEBT Sempra Energy In October 2016, Sempra Energy publicly offered and sold $500 million of 1.625 -percent, fixed-rate notes maturing in 2019. Sempra Energy used the proceeds from this offering to repay outstanding commercial paper. Sempra South American Utilities Luz del Sur has outstanding corporate bonds and bank loans that are denominated in the local currency. In July 2016, Luz del Sur publicly offered and sold $50 million of corporate bonds at 6.50 percent maturing in 2025. In January 2017, Luz del Sur also publicly issued and sold $50 million of corporate bonds at 6.375 percent , maturing in 2023. Sempra Mexico In September 2016, IEnova completed the acquisition of PEMEX’s 50 -percent interest in GdC, as we discuss in Note 3. Pursuant to the agreement, IEnova assumed $364 million of long-term debt, including $49 million classified as current at the acquisition date. Principal and interest payments are due quarterly each year, and the loan fully matures in December 2026. The loan bears interest equal to LIBOR plus a spread of 2 percent to 2.75 percent , which varies over the term of the loan. To moderate exposure to interest rate and associated cash flow variability, GdC entered into floating-to-fixed interest rate swaps of the LIBOR component for the full loan amount, resulting in an all-in fixed rate of 2.63 percent plus the corresponding spread. The loan is collateralized by the TDF S. de R.L. de C.V. liquid petroleum gas pipeline and the San Fernando natural gas pipeline, which are wholly owned by GdC. The loan agreement contains various covenants, including maintaining a certain interest coverage ratio and a minimum members’ equity during the term of the loan. At December 31, 2016 , GdC was in compliance with these and all other financial covenants. In December 2016, IEnova completed the acquisition of Ventika, as we discuss in Note 3. Pursuant to the agreement, IEnova assumed $485 million of long-term debt, including $7 million classified as current at the acquisition date, of which $113 million fully matures in March 2024 and $ 372 million fully matures in March 2032. Principal and interest payments are due quarterly each year. The long-term debt bears interest as follows: INTEREST RATES ON VENTIKA LOANS AT DECEMBER 31, 2016 (Dollars in millions) Weighted-average Amount outstanding Stated rate Margin(1) Total rate Fixed rate loans $ 254 3.64% 3.03% 6.67% Variable rate loans, hedged 187 3.26% (2) 3.03% 6.29% Variable rate loans, unhedged 40 LIBOR 3.03% 3.99% Total variable rate loans 227 Total long-term debt $ 481 6.30% (1) Margin varies between 3.03 percent to 3.93 percent over the term of the loan. (2) Fixed LIBOR component after floating-to-fixed interest rate swap. The loans are collateralized by project assets. The loan agreements contain various affirmative, negative and informational covenants. At December 31, 2016, Ventika was in compliance with all the covenants. Sempra LNG & Midstream In September 2016, Sempra LNG & Midstream completed the sale of EnergySouth, the parent company of Mobile Gas and Willmut Gas. Sempra LNG & Midstream received $318 million , net of $2 million cash sold, in cash proceeds, and the buyer assumed debt of $67 million , which included $20 million of 4.14 percent first mortgage bonds and $42 million of 5 percent first mortgage bonds at Mobile Gas, and $5 million of 3.1 percent notes at Willmut Gas. We discuss the sale of EnergySouth in Note 3. INTEREST RATE SWAPS We discuss our fair value and cash flow hedging interest rate swaps in Note 9. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Reconciliation of net U.S. statutory federal income tax rates to the effective income tax rates is as follows: RECONCILIATION OF FEDERAL INCOME TAX RATES TO EFFECTIVE INCOME TAX RATES Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated: U.S. federal statutory income tax rate 35 % 35 % 35 % Utility depreciation 4 5 5 U.S. tax on repatriation of foreign earnings (1 ) 1 2 State income taxes, net of federal income tax benefit 1 1 — Utility repairs expenditures (4 ) (5 ) (5 ) Tax credits (3 ) (4 ) (4 ) Self-developed software expenditures (3 ) (3 ) (3 ) Resolution of prior years’ income tax items — (3 ) (1 ) Non-U.S. earnings taxed at lower statutory income tax rates (3 ) (2 ) (2 ) Allowance for equity funds used during construction (2 ) (2 ) (2 ) Foreign exchange and inflation effects (2 ) (2 ) (2 ) Share-based compensation (2 ) — — International tax reform 1 — (1 ) Other, net — (1 ) (2 ) Effective income tax rate 21 % 20 % 20 % SDG&E: U.S. federal statutory income tax rate 35 % 35 % 35 % State income taxes, net of federal income tax benefit 5 5 5 Depreciation 5 4 4 SONGS tax regulatory asset write-off — — 2 Repairs expenditures (4 ) (4 ) (4 ) Self-developed software expenditures (3 ) (3 ) (3 ) Allowance for equity funds used during construction (2 ) (2 ) (2 ) Resolution of prior years’ income tax items (1 ) (2 ) (2 ) Variable interest entity — (1 ) (1 ) Share-based compensation (1 ) — — Other, net (1 ) — — Effective income tax rate 33 % 32 % 34 % SoCalGas: U.S. federal statutory income tax rate 35 % 35 % 35 % Depreciation 9 8 8 State income taxes, net of federal income tax benefit 2 4 4 Repairs expenditures (9 ) (10 ) (9 ) Self-developed software expenditures (6 ) (6 ) (5 ) Resolution of prior years’ income tax items 2 (3 ) (2 ) Allowance for equity funds used during construction (2 ) (2 ) (2 ) Share-based compensation (1 ) — — Other, net (1 ) (1 ) — Effective income tax rate 29 % 25 % 29 % In 2016 , 2015 and 2014 , non-U.S. earnings taxed at lower statutory income tax rates than the U.S. are primarily related to operations in Mexico, Chile and Peru. Foreign exchange and inflation effects for Sempra Energy Consolidated in 2016 , 2015 and 2014 are primarily due to significant devaluation of the Mexican peso against the U.S. dollar. Furthermore, our effective income tax rate was affected by international tax reform in Peru in 2016 and in both Peru and Chile in 2014. We no longer plan to repatriate undistributed non-U.S. earnings and accordingly, in 2016, we reversed $20 million of U.S. income tax expense accrued on these earnings in 2015. We intend to indefinitely reinvest cumulative undistributed earnings from all of our non-U.S. subsidiaries and non-U.S. corporate joint ventures and use such earnings to support non-U.S operations. Therefore, we do not intend to use these cumulative undistributed earnings as a source of funding for U.S. operations. In 2014, we made distributions of approximately $288 million from our non-U.S. subsidiaries, $100 million of which was from previously taxed income and therefore not subject to additional U.S. federal income tax. In 2016, we prospectively adopted ASU 2016-09 with an effective date of January 1, 2016. ASU 2016-09 requires excess tax benefits and tax deficiencies related to employee share-based payment transactions to be recorded in earnings, instead of in shareholders’ equity. We discuss the impact of adopting the provisions of this standard in Note 2. In 2014, our effective income tax rate was affected by a $25 million state tax benefit due to the release of Louisiana state valuation allowance against a deferred tax asset associated with Cameron LNG developments. This benefit is included in “State Income Taxes, Net of Federal Income Tax Benefit” in the Sempra Energy Consolidated table above. Also in 2014, the effective income tax rates for Sempra Energy Consolidated and SDG&E were impacted by a $17 million charge to reduce certain tax regulatory assets attributed to SDG&E’s investment in SONGS that we discuss in Note 13. This charge is included in “Resolution of Prior Years’ Income Tax Items” in the Sempra Energy Consolidated table above. 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 ▪ utility self-developed software expenditures ▪ depreciation on a certain portion of utility plant assets ▪ state income taxes The AFUDC related to equity recorded for regulated construction projects at Sempra Mexico has similar flow-through treatment. The final decision in the 2016 General Rate Case (2016 GRC FD) issued by the CPUC in June 2016 affecting the California Utilities requires the establishment of a two-way income tax expense memorandum account for SDG&E and SoCalGas to track any revenue variances resulting from certain differences arising between the income tax expense forecasted in the 2016 GRC and the income tax expense incurred from 2016 through 2018. The variances to be tracked include tax expense differences relating to: ▪ net revenue changes; ▪ mandatory tax law, tax accounting, tax procedural, or tax policy changes; and ▪ elective tax law, tax accounting, tax procedural, or tax policy changes. The account will remain open, and the balance in the account will be reviewed in subsequent general rate case (GRC) proceedings, until the CPUC decides to close the account. We believe the future disposition of these tracked balances may result in refunds being directed to ratepayers to the extent tax expense incurred is lower than forecasted tax expense in the GRC process as a result of certain flow-through item deductions, as described above, or other items. We discuss the memo account further in Note 14. Differences arising from the forecasted amounts will be tracked in the two-way income tax expense tracking account, except for the equity portion of AFUDC, which is not subject to taxation. We expect that certain amounts recorded in the tracking account may give rise to regulatory assets or liabilities until the CPUC disposes with the account. The CPUC tracking account does not affect the recovery of income tax expense in FERC formulaic rates. The geographic components of Income Before Income Taxes and Equity Earnings of Certain Unconsolidated Subsidiaries at Sempra Energy Consolidated are as follows: GEOGRAPHIC COMPONENTS (Dollars in millions) Pretax book income Years ended December 31, 2016(1) 2015 2014 U.S. $ 773 $ 1,189 $ 1,014 Non-U.S. 1,057 515 510 Total $ 1,830 $ 1,704 $ 1,524 (1) U.S. pretax book income decreased in 2016 at the California Utilities primarily due to the reallocation of prior years’ income tax benefits generated from income tax repairs deductions to ratepayers pursuant to the 2016 GRC FD, as we discuss in Note 14; at Sempra LNG & Midstream for the loss on permanent release of pipeline capacity, as we discuss in Note 15; and the impairment charge related to the investment in Rockies Express, as we discuss in Note 3. Non-U.S. pretax book income increased in 2016 primarily due to the noncash gain associated with the remeasurement of our equity interest in GdC, as we discuss in Note 3. The components of income tax expense are as follows: INCOME TAX EXPENSE (BENEFIT) (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated: Current: U.S. federal $ — $ 3 $ (10 ) U.S. state 1 (24 ) (7 ) Non-U.S. 171 123 171 Total 172 102 154 Deferred: U.S. federal 78 242 237 U.S. state 9 34 4 Non-U.S. 135 (32 ) (91 ) Total 222 244 150 Deferred investment tax credits (5 ) (5 ) (4 ) Total income tax expense $ 389 $ 341 $ 300 SDG&E: Current: U.S. federal $ — $ 12 $ (5 ) U.S. state 22 77 52 Total 22 89 47 Deferred: U.S. federal 223 233 220 U.S. state 38 (35 ) 5 Total 261 198 225 Deferred investment tax credits (3 ) (3 ) (2 ) Total income tax expense $ 280 $ 284 $ 270 SoCalGas: Current: U.S. federal $ — $ (1 ) $ 2 U.S. state 40 12 7 Total 40 11 9 Deferred: U.S. federal 123 122 117 U.S. state (18 ) 7 15 Total 105 129 132 Deferred investment tax credits (2 ) (2 ) (2 ) Total income tax expense $ 143 $ 138 $ 139 We show the components of deferred income taxes at December 31 for Sempra Energy Consolidated, SDG&E and SoCalGas in the tables below: DEFERRED INCOME TAXES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) December 31, 2016 2015 Deferred income tax liabilities: Differences in financial and tax bases of fixed assets, investments and other assets(1) $ 6,111 $ 5,283 Regulatory balancing accounts 783 745 Property taxes 63 61 Other deferred income tax liabilities 143 100 Total deferred income tax liabilities 7,100 6,189 Deferred income tax assets: Tax credits 431 381 Net operating losses 2,304 1,856 Compensation-related items 252 252 Postretirement benefits 434 446 Other deferred income tax assets 87 179 Accrued expenses not yet deductible 112 72 Deferred income tax assets before valuation allowances 3,620 3,186 Less: valuation allowances 31 34 Total deferred income tax assets 3,589 3,152 Net deferred income tax liability(2) $ 3,511 $ 3,037 (1) In addition to the financial over tax basis differences in fixed assets, the amount also includes financial over tax basis differences in various interests in partnerships and certain subsidiaries. (2) At December 31, 2016 and 2015, includes $234 million and $120 million , respectively, recorded as a noncurrent asset and $3,745 million and $3,157 million, respectively, recorded as a noncurrent liability on the Consolidated Balance Sheets. DEFERRED INCOME TAXES – SDG&E AND SOCALGAS (Dollars in millions) SDG&E SoCalGas December 31, December 31, 2016 2015 2016 2015 Deferred income tax liabilities: Differences in financial and tax bases of utility plant and other assets $ 2,549 $ 2,392 $ 1,699 $ 1,473 Regulatory balancing accounts 379 234 411 515 Property taxes 42 42 21 20 Other 10 5 4 5 Total deferred income tax liabilities 2,980 2,673 2,135 2,013 Deferred income tax assets: Net operating losses — — 83 110 Tax credits 27 9 17 16 Postretirement benefits 98 90 244 268 Compensation-related items 8 11 32 42 State income taxes — 46 19 13 Accrued expenses not yet deductible 7 36 20 20 Other 11 9 11 12 Total deferred income tax assets 151 201 426 481 Net deferred income tax liability $ 2,829 $ 2,472 $ 1,709 $ 1,532 The following table summarizes our unused net operating losses (NOL) and tax credit carryforwards at December 31, 2016. NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS (Dollars in millions) Unused amount at December 31, 2016 Year expiration begins Sempra Energy Consolidated: U.S. federal(1): NOLs $ 5,514 2031 General business tax credits 329 2032 Foreign tax credits 62 2024 U.S. state(2): NOLs 2,836 2017 General business tax credits 44 2017 Non-U.S.(2) 843 2017 SDG&E: U.S. federal(1): NOLs $ 39 2032 General business tax credits 19 2031 SoCalGas: U.S. federal(1): NOLs $ 289 2032 General business tax credits 12 2031 (1) We have recorded deferred income tax benefits on these NOLs and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not-basis. (2) We have not recorded deferred income tax benefits on a portion of these NOLs and tax credits because we currently believe they will not be realized on a more-likely-than-not-basis, as discussed below. At December 31, 2016 , Sempra Energy recorded a valuation allowance against a portion of its total deferred income tax assets, as shown above in the “Deferred Income Taxes – Sempra Energy Consolidated” table. A valuation allowance is recorded when, based on more-likely-than-not criteria, negative evidence outweighs positive evidence with regard to our ability to realize a deferred income tax asset in the future. Of the valuation allowances recorded to date, the negative evidence outweighs the positive evidence primarily due to cumulative pretax losses in various U.S. state and non-U.S. jurisdictions resulting in a deferred income tax asset related to NOLs, as discussed in the “Net Operating Losses and Tax Credit Carryforwards” table above, that we currently do not believe will be realized on a more-likely-than-not basis. Of Sempra Energy’s total valuation allowance of $31 million at December 31, 2016 , $1 million is related to non-U.S. NOLs and $30 million to U.S. state NOLs and tax credits. Of Sempra Energy’s total valuation allowance of $34 million at December 31, 2015 , $6 million was related to non-U.S. NOLs and $28 million to U.S. state NOLs and tax credits. At December 31, 2016 , Sempra Energy had not recognized a U.S. deferred income tax liability related to a $4.6 billion basis difference between its financial statement and income tax investment amount in its non-U.S. subsidiaries and non-U.S. corporate joint ventures. This basis difference consists of cumulative undistributed earnings that we expect to reinvest indefinitely outside of the U.S. These cumulative undistributed earnings have previously been reinvested or will be reinvested in active non-U.S. operations, thus we do not intend to use these earnings as a source of funding for U.S. operations. It is not practical to determine the hypothetical unrecognized amount of U.S. deferred income taxes that might be payable if the cumulative undistributed earnings were eventually distributed or the investments were sold. Following is a summary of unrecognized income tax benefits: SUMMARY OF UNRECOGNIZED INCOME TAX BENEFITS (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated: Total $ 90 $ 87 $ 117 Of the total, amounts related to tax positions that, if recognized in future years, would decrease the effective tax rate(1) $ (87 ) $ (83 ) $ (114 ) increase the effective tax rate(1) 36 32 21 SDG&E: Total $ 22 $ 20 $ 14 Of the total, amounts related to tax positions that, if recognized in future years, would decrease the effective tax rate(1) $ (19 ) $ (16 ) $ (11 ) increase the effective tax rate(1) 13 11 6 SoCalGas: Total $ 29 $ 27 $ 19 Of the total, amounts related to tax positions that, if recognized in future years, would decrease the effective tax rate(1) $ (29 ) $ (27 ) $ (19 ) increase the effective tax rate(1) 24 21 15 (1) Includes temporary book and tax differences that are treated as flow-through for ratemaking purposes, as discussed above. Following is a reconciliation of the changes in unrecognized income tax benefits for the years ended December 31: RECONCILIATION OF UNRECOGNIZED INCOME TAX BENEFITS (Dollars in millions) 2016 2015 2014 Sempra Energy Consolidated: Balance as of January 1 $ 87 $ 117 $ 90 Increase in prior period tax positions 2 10 37 Decrease in prior period tax positions (2 ) — — Increase in current period tax positions 6 8 5 Settlements with taxing authorities (3 ) (48 ) (15 ) Balance as of December 31 $ 90 $ 87 $ 117 SDG&E: Balance as of January 1 $ 20 $ 14 $ 17 Increase in prior period tax positions — 5 2 Increase in current period tax positions 2 2 — Settlements with taxing authorities — (1 ) (5 ) Balance as of December 31 $ 22 $ 20 $ 14 SoCalGas: Balance as of January 1 $ 27 $ 19 $ 13 Increase in prior period tax positions — 2 2 Decrease in prior period tax positions (2 ) — — Increase in current period tax positions 4 6 4 Balance as of December 31 $ 29 $ 27 $ 19 It is reasonably possible that within the next 12 months, unrecognized income tax benefits could decrease due to the following: POSSIBLE DECREASES IN UNRECOGNIZED INCOME TAX BENEFITS WITHIN 12 MONTHS (Dollars in millions) At December 31, 2016 2015 2014 Sempra Energy Consolidated: Expiration of statutes of limitations on tax assessments $ (2 ) $ (2 ) $ — Potential resolution of audit issues with various U.S. federal, state and local and non-U.S. taxing authorities (36 ) (32 ) (61 ) $ (38 ) $ (34 ) $ (61 ) SDG&E: Expiration of statutes of limitations on tax assessments $ (1 ) $ (1 ) $ — Potential resolution of audit issues with various U.S. federal, state and local taxing authorities (10 ) (8 ) (9 ) $ (11 ) $ (9 ) $ (9 ) SoCalGas: Potential resolution of audit issues with various U.S. federal, state and local taxing authorities $ (25 ) $ (22 ) $ (15 ) Amounts accrued for interest and penalties associated with unrecognized income tax benefits are included in income tax expense on the Consolidated Statements of Operations. We summarize the amounts accrued at December 31 on the Consolidated Balance Sheets for interest and penalties associated with unrecognized income tax benefits and the related expense in the table below. INTEREST AND PENALTIES ASSOCIATED WITH UNRECOGNIZED INCOME TAX BENEFITS (Dollars in millions) Interest and penalties Accrued interest and penalties Years ended December 31, December 31, 2016 2015 2014 2016 2015 Sempra Energy Consolidated: Interest (income) expense $ — $ (2 ) $ (4 ) $ 1 $ 1 Penalties — — (3 ) — — SDG&E: Interest income $ — $ — $ (1 ) $ — $ — Penalties accrued and expensed at SDG&E and interest and penalties accrued and expensed at SoCalGas in all periods presented were zero or negligible. INCOME TAX AUDITS Sempra Energy is subject to U.S. federal income tax as well as income tax of multiple state and non-U.S. jurisdictions. We remain subject to examination for U.S. federal tax years after 2010. We are subject to examination by major state tax jurisdictions for tax years after 2008. Certain major non-U.S. income tax returns for tax years 2008 through the present are open to examination. We are also open to examination for non-U.S. income tax returns related to our prior interest in our commodities business, which we divested in 2010, for years 1996 through 2010. In addition, we have filed federal refund claims for the 2009 and 2010 tax years; however, no additional tax may be assessed by the Internal Revenue Service (IRS) for pre-2011 tax years. We have also filed state refund claims for tax years back to 2006. The pre-2009 tax years for our major state tax jurisdictions are closed to new issues, therefore, no additional tax may be assessed by the taxing authorities for these tax years. SDG&E and SoCalGas are subject to U.S. federal income tax as well as income tax of state jurisdictions. They remain subject to examination for U.S. federal tax years after 2010 and by state tax jurisdictions for tax years after 2008. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We are required by applicable U.S. GAAP to: ▪ recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status in the statement of financial position; ▪ measure a plan’s assets and its obligations that determine its funded status as of the end of the fiscal year (with limited exceptions); and ▪ recognize changes in the funded status of pension and other postretirement benefit plans in the year in which the changes occur. Generally, those changes are reported in other comprehensive income and as a separate component of shareholders’ equity. The detailed information presented below covers the employee benefit plans of Sempra Energy and its principal subsidiaries. Sempra Energy has funded and unfunded noncontributory traditional defined benefit and cash balance plans, including separate plans for SDG&E and SoCalGas, which collectively cover all eligible employees, including members of the Sempra Energy board of directors who were participants in a predecessor plan on or before June 1, 1998. Pension benefits under the traditional defined benefit plans are based on service and final average earnings, while the cash balance plans provide benefits using a career average earnings methodology. IEnova has an unfunded noncontributory defined benefit plan covering all employees. Chilquinta Energía has an unfunded noncontributory defined benefit plan covering all employees hired before October 1, 1981 and an unfunded noncontributory termination indemnity plan covering represented employees. The plans generally provide defined benefits to retirees based on date of hire, years of service and final average earnings. Sempra Energy also has other postretirement benefit plans (PBOP), including separate plans for SDG&E and SoCalGas, which collectively cover all domestic and certain foreign employees. The life insurance plans are both contributory and noncontributory, and the health care plans are contributory. Participants’ contributions are adjusted annually. Other postretirement benefits include medical benefits for retirees’ spouses. Chilquinta Energía also has two noncontributory postretirement benefit plans which cover represented employees – a health care plan and an energy subsidy plan that provides for reduced energy rates. The health care plan includes benefits for retirees’ spouses and dependents. Pension and other postretirement benefits costs and obligations are dependent on assumptions used in calculating such amounts. We review these assumptions on an annual basis and update them as appropriate. We consider current market conditions, including interest rates, in making these assumptions. We use a December 31 measurement date for all of our plans. 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 $430 million and $464 million at December 31, 2016 and 2015, respectively. PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Divestiture Affecting 2016 On September 12, 2016, Sempra LNG & Midstream completed the sale of EnergySouth, the parent company of Mobile Gas and Willmut Gas, as we discuss in Note 3. The benefit obligations and plan assets of the benefit plans that covered employees of Mobile Gas and Willmut Gas were transferred to the buyer on the date of sale. This resulted in decreases to the recorded pension liability and other postretirement benefit plan liability of $61 million and $6 million , respectively, and decreases to pension plan assets and other postretirement benefit plan assets of $44 million and $4 million , respectively, for Sempra Energy Consolidated. Special Termination Benefits Affecting 2016 In 2016, certain nonrepresented employees age 62 or older with 5 years of service or age 55 to 61 with 10 years of service that retired under the Voluntary Retirement Enhancement Program offered in that year received an additional postretirement health benefit in the form of a $100,000 Health Reimbursement Account. We treated the benefit obligation attributable to the Health Reimbursement Account as a special termination benefit. This resulted in increases to the recorded liability for other postretirement benefits of $26 million for Sempra Energy Consolidated, $14 million for SDG&E and $11 million for SoCalGas. The Voluntary Retirement Enhancement Program resulted in a higher than expected number of retirements in December 2016. As a result, the total lump sum benefits paid from the SDG&E qualified pension plan in 2016 exceeded the settlement threshold, which triggered settlement accounting and a resulting reduction of the recorded pension liability and pension plan assets of $75 million and a settlement charge of $16 million at each of Sempra Energy Consolidated and SDG&E. This settlement charge was recorded as a regulatory asset on the Consolidated Balance Sheets. A measurement date of December 31, 2016 was used for the settlement accounting, as the year-to-date lump sum benefit payments first exceeded the settlement threshold in December 2016. Benefit Plan Amendments Affecting 2015 In 2015, executive participants in a company nonqualified pension plan became eligible in this same plan for Supplemental Executive Retirement Plan benefits. Consistent with past practice, this was treated as a plan amendment and increased the recorded pension liability by $5 million at Sempra Energy Consolidated and $3 million at SoCalGas. Effective January 1, 2016, the point of service medical benefit provided to retirees under the age of 65 at our domestic companies, except the represented retirees at SDG&E and retirees enrolled in one of the high deductible medical plans at SoCalGas, is no longer provided by the PBOP plans of the respective companies. This change resulted in a decrease in other postretirement benefit obligations of $9 million at each of Sempra Energy Consolidated and SoCalGas, and by a negligible amount at SDG&E. Benefit Obligations and Assets The following three tables provide a reconciliation of the changes in the plans’ projected benefit obligations and the fair value of assets during 2016 and 2015, and a statement of the funded status at December 31, 2016 and 2015: PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2016 2015 CHANGE IN PROJECTED BENEFIT OBLIGATION Net obligation at January 1 $ 3,649 $ 3,839 $ 963 $ 1,115 Service cost 107 114 20 26 Interest cost 160 154 42 44 Contributions from plan participants — — 20 19 Actuarial loss (gain) 116 (180 ) (81 ) (172 ) Benefit payments (217 ) (273 ) (61 ) (60 ) Divestiture of EnergySouth (61 ) — (6 ) — Plan amendments — 5 — (9 ) Special termination benefits — — 26 — Settlements (75 ) (10 ) (1 ) — Net obligation at December 31 3,679 3,649 922 963 CHANGE IN PLAN ASSETS Fair value of plan assets at January 1 2,484 2,807 1,003 1,054 Actual return on plan assets 207 (73 ) 94 (21 ) Employer contributions 104 33 6 11 Contributions from plan participants — — 20 19 Benefit payments (217 ) (273 ) (61 ) (60 ) Divestiture of EnergySouth (44 ) — (4 ) — Settlements (75 ) (10 ) (1 ) — Fair value of plan assets at December 31 2,459 2,484 1,057 1,003 Funded status at December 31 $ (1,220 ) $ (1,165 ) $ 135 $ 40 Net recorded (liability) asset at December 31 $ (1,220 ) $ (1,165 ) $ 135 $ 40 PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS SAN DIEGO GAS & ELECTRIC COMPANY (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2016 2015 CHANGE IN PROJECTED BENEFIT OBLIGATION Net obligation at January 1 $ 965 $ 1,011 $ 165 $ 200 Service cost 29 29 5 7 Interest cost 41 39 7 8 Contributions from plan participants — — 7 7 Actuarial loss (gain) 7 (52 ) 6 (43 ) Benefit payments (25 ) (56 ) (14 ) (14 ) Special termination benefits — — 14 — Settlements (75 ) — — — Transfer of liability to other plans (7 ) (6 ) — — Net obligation at December 31 935 965 190 165 CHANGE IN PLAN ASSETS Fair value of plan assets at January 1 752 828 161 164 Actual return on plan assets 59 (24 ) 13 (3 ) Employer contributions 3 2 2 7 Contributions from plan participants — — 7 7 Benefit payments (25 ) (56 ) (14 ) (14 ) Settlements (75 ) — — — Transfer of assets from other plans — 2 — — Fair value of plan assets at December 31 714 752 169 161 Funded status at December 31 $ (221 ) $ (213 ) $ (21 ) $ (4 ) Net recorded liability at December 31 $ (221 ) $ (213 ) $ (21 ) $ (4 ) PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS SOUTHERN CALIFORNIA GAS COMPANY (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2016 2015 CHANGE IN PROJECTED BENEFIT OBLIGATION Net obligation at January 1 $ 2,255 $ 2,398 $ 752 $ 866 Service cost 67 74 14 17 Interest cost 101 98 32 34 Contributions from plan participants — — 13 12 Actuarial loss (gain) 77 (131 ) (86 ) (125 ) Benefit payments (158 ) (187 ) (45 ) (43 ) Plan amendments — 3 — (9 ) Special termination benefits — — 11 — Transfer of liability from other plans 1 — — — Net obligation at December 31 2,343 2,255 691 752 CHANGE IN PLAN ASSETS Fair value of plan assets at January 1 1,537 1,763 822 870 Actual return on plan assets 128 (45 ) 79 (18 ) Employer contributions 72 6 1 1 Contributions from plan participants — — 13 12 Benefit payments (158 ) (187 ) (45 ) (43 ) Fair value of plan assets at December 31 1,579 1,537 870 822 Funded status at December 31 $ (764 ) $ (718 ) $ 179 $ 70 Net recorded (liability) asset at December 31 $ (764 ) $ (718 ) $ 179 $ 70 Actuarial losses (gains) fluctuate based on changes in assumptions that we describe below in “Assumptions for Pension and Other Postretirement Benefit Plans” and updates to census data. In 2015 and 2016, the Society of Actuaries released updated mortality improvement projection scales, reflecting observed longevity improvements in its mortality tables. We have incorporated these assumptions, adjusted for the Sempra Energy companies’ actual mortality experience, in our calculations for each of those years. Actuarial losses in pension plans at Sempra Energy Consolidated in 2016 were driven primarily by losses at SoCalGas due to a decrease in discount rate. Actuarial gains in other postretirement benefit plans at Sempra Energy Consolidated in 2016 were driven primarily by gains at SoCalGas due to a lower increase in health care costs than expected. Net Assets and Liabilities The assets and liabilities of the pension and other postretirement benefit plans are affected by changing market conditions as well as when actual plan experience is different than assumed. Such events result in investment gains and losses, which we defer and recognize in pension and other postretirement benefit costs over a period of years. Our funded pension and other postretirement benefit plans use the asset smoothing method, except for those at SDG&E and the other postretirement benefit plan at Mobile Gas (until the date of sale). This method develops an asset value that recognizes realized and unrealized investment gains and losses over a three-year period. This adjusted asset value, known as the market-related value of assets, is used in conjunction with an expected long-term rate of return to determine the expected return-on-assets component of net periodic cost. SDG&E does not use the asset smoothing method, but rather recognizes realized and unrealized investment gains and losses during the current year. The 10 -percent corridor accounting method is used at Sempra Energy Consolidated, SDG&E and SoCalGas. Under the corridor accounting method, if as of the beginning of a year unrecognized net gain or loss exceeds 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets, the excess is amortized over the average remaining service period of active participants. The asset smoothing and 10 -percent corridor accounting methods help mitigate volatility of net periodic costs from year to year. We recognize the overfunded or underfunded status of defined benefit pension and other postretirement plans as assets or liabilities, respectively; unrecognized changes in these assets and/or liabilities are normally recorded in Accumulated Other Comprehensive Income (Loss) on the balance sheet. The California Utilities and Mobile Gas (until the date of sale) record regulatory assets and liabilities that offset the funded pension and other postretirement plans’ assets or liabilities, as these costs are expected to be recovered in future utility rates based on agreements with regulatory agencies. At Willmut Gas (until the date of sale), pension contributions were recovered in rates on a prospective basis, but were not recorded as a regulatory asset pending recovery. The California Utilities record annual pension and other postretirement net periodic benefit costs equal to the contributions to their plans as authorized by the CPUC. The annual contributions to the pension plans are limited to a minimum required funding amount as determined by the IRS. The annual contributions to the other postretirement plans are equal to the lesser of the maximum tax deductible amount or the net periodic cost calculated in accordance with U.S. GAAP for pension and other postretirement benefit plans. Until the date of sale, Mobile Gas recorded annual pension and other postretirement net periodic benefit costs based on an estimate of the net periodic cost at the beginning of the year calculated in accordance with U.S. GAAP for pension and other postretirement benefit plans, as authorized by the Alabama Public Service Commission. Any differences between booked net periodic benefit cost and amounts contributed to the pension and other postretirement plans for the California Utilities are disclosed as regulatory adjustments in accordance with U.S. GAAP for rate-regulated entities. The net (liability) asset is included in the following categories on the Consolidated Balance Sheets at December 31: PENSION AND OTHER POSTRETIREMENT BENEFIT OBLIGATIONS, NET OF PLAN ASSETS AT DECEMBER 31 (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2016 2015 Sempra Energy Consolidated: Noncurrent assets $ — $ — $ 179 $ 70 Current liabilities (56 ) (43 ) — — Noncurrent liabilities (1,164 ) (1,122 ) (44 ) (30 ) Net recorded (liability) asset $ (1,220 ) $ (1,165 ) $ 135 $ 40 SDG&E: Current liabilities $ (10 ) $ (5 ) $ — $ — Noncurrent liabilities (211 ) (208 ) (21 ) (4 ) Net recorded liability $ (221 ) $ (213 ) $ (21 ) $ (4 ) SoCalGas: Noncurrent assets $ — $ — $ 179 $ 70 Current liabilities (2 ) (2 ) — — Noncurrent liabilities (762 ) (716 ) — — Net recorded (liability) asset $ (764 ) $ (718 ) $ 179 $ 70 Amounts recorded in Accumulated Other Comprehensive Income (Loss) at December 31, 2016 and 2015, net of income tax effects and amounts recorded as regulatory assets, are as follows: AMOUNTS IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2016 2015 Sempra Energy Consolidated: Net actuarial (loss) gain $ (95 ) $ (84 ) $ 3 $ 2 Prior service cost (4 ) (5 ) — — Total $ (99 ) $ (89 ) $ 3 $ 2 SDG&E: Net actuarial loss $ (8 ) $ (8 ) Prior service cost — — Total $ (8 ) $ (8 ) SoCalGas: Net actuarial loss $ (6 ) $ (4 ) Prior service cost (3 ) (1 ) Total $ (9 ) $ (5 ) The accumulated benefit obligation for defined benefit pension plans at December 31, 2016 and 2015 was as follows: ACCUMULATED BENEFIT OBLIGATION (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas 2016 2015 2016 2015 2016 2015 Accumulated benefit obligation $ 3,465 $ 3,397 $ 904 $ 939 $ 2,167 $ 2,056 Sempra Energy, SDG&E and SoCalGas each have a funded pension plan. Mobile Gas had a funded pension plan until it was sold in September 2016. We also have unfunded pension plans at Sempra Energy, SDG&E, SoCalGas, IEnova and Chilquinta Energía. The following table shows the obligations of funded pension plans with benefit obligations in excess of plan assets at December 31: OBLIGATIONS OF FUNDED PENSION PLANS (Dollars in millions) 2016 2015 Sempra Energy Consolidated: Projected benefit obligation $ 3,431 $ 3,410 Accumulated benefit obligation 3,227 3,183 Fair value of plan assets 2,459 2,484 SDG&E: Projected benefit obligation $ 902 $ 927 Accumulated benefit obligation 874 906 Fair value of plan assets 714 752 SoCalGas: Projected benefit obligation $ 2,320 $ 2,236 Accumulated benefit obligation 2,148 2,039 Fair value of plan assets 1,579 1,537 Net Periodic Benefit Cost The following three tables provide the components of net periodic benefit cost and pretax amounts recognized in Other Comprehensive Income (Loss) for the years ended December 31: NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2014 2016 2015 2014 NET PERIODIC BENEFIT COST Service cost $ 107 $ 114 $ 101 $ 20 $ 26 $ 24 Interest cost 160 154 161 42 44 49 Expected return on assets (166 ) (173 ) (171 ) (69 ) (68 ) (63 ) Amortization of: Prior service cost (credit) 11 11 11 — (4 ) (5 ) Actuarial loss (gain) 30 38 18 (1 ) — — Settlement and curtailment charges 16 4 31 — — (1 ) Special termination benefits — — — 26 — 5 Regulatory adjustment (57 ) (110 ) (31 ) (11 ) 12 6 Total net periodic benefit cost 101 38 120 7 10 15 CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) Net loss (gain) 26 17 38 (2 ) (4 ) 1 Prior service (credit) cost (1 ) 4 4 — — — Amortization of actuarial loss (10 ) (14 ) (23 ) — — — Total recognized in other comprehensive income (loss) 15 7 19 (2 ) (4 ) 1 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 116 $ 45 $ 139 $ 5 $ 6 $ 16 NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) SAN DIEGO GAS & ELECTRIC COMPANY (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2014 2016 2015 2014 NET PERIODIC BENEFIT COST Service cost $ 29 $ 29 $ 30 $ 5 $ 7 $ 7 Interest cost 41 39 43 7 8 9 Expected return on assets (49 ) (54 ) (55 ) (12 ) (11 ) (10 ) Amortization of: Prior service cost 1 8 2 3 3 2 Actuarial loss (gain) 10 2 4 (1 ) — — Settlement charge 16 — 19 — — — Special termination benefits — — — 14 — 5 Regulatory adjustment (45 ) (20 ) 12 (14 ) — 1 Total net periodic benefit cost 3 4 55 2 7 14 CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) Net loss (gain) 1 (6 ) 8 — — — Amortization of actuarial loss (1 ) (1 ) (3 ) — — — Total recognized in other comprehensive (loss) income — (7 ) 5 — — — Total recognized in net periodic benefit cost and other comprehensive (loss) income $ 3 $ (3 ) $ 60 $ 2 $ 7 $ 14 NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) SOUTHERN CALIFORNIA GAS COMPANY (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2014 2016 2015 2014 NET PERIODIC BENEFIT COST Service cost $ 67 $ 74 $ 60 $ 14 $ 17 $ 16 Interest cost 101 98 100 32 34 38 Expected return on assets (103 ) (106 ) (104 ) (56 ) (56 ) (51 ) Amortization of: Prior service cost (credit) 9 9 9 (4 ) (7 ) (8 ) Actuarial loss 11 21 6 — — — Settlement charge — — 4 — — — Special termination benefits — — — 11 — — Regulatory adjustment (12 ) (90 ) (43 ) 3 12 5 Total net periodic benefit cost 73 6 32 — — — CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) Net loss 4 — 5 — — — Prior service cost 2 2 — — — — Amortization of actuarial loss — — (5 ) — — — Total recognized in other comprehensive income 6 2 — — — — Total recognized in net periodic benefit cost and other comprehensive income $ 79 $ 8 $ 32 $ — $ — $ — The estimated net loss for the pension and other postretirement benefit plans that will be amortized from Accumulated Other Comprehensive Income (Loss) into net periodic benefit cost in 2017 is $10 million for Sempra Energy Consolidated and $1 million for each of SDG&E and SoCalGas. The estimated prior service cost that will be similarly amortized in 2017 is $1 million for each of Sempra Energy Consolidated and SoCalGas and a negligible amount for SDG&E. Assumptions for Pension and Other Postretirement Benefit Plans Benefit Obligation and Net Periodic Benefit Cost Except for the IEnova and Chilquinta Energía plans, we develop the discount rate assumptions based on the results of a third party modeling tool that matches each plan’s expected cash flows to interest rates and expected maturity values of individually selected bonds in a hypothetical portfolio. The model controls the level of accumulated surplus that may result from the selection of bonds based solely on their premium yields by limiting the number of years to look back for selection to 3 years for pre-30-year and 6 years for post-30-year benefit payments. Additionally, the model ensures that an adequate number of bonds are selected in the portfolio by limiting the amount of the plan’s benefit payments that can be met by a single bond to 7.5 percent. We selected individual bonds from a universe of Bloomberg AA-rated bonds which: ▪ have an outstanding issue of at least $50 million; ▪ are non-callable (or callable with make-whole provisions); ▪ exclude collateralized bonds; and ▪ exclude the top and bottom 10 percent of yields to avoid relying on bonds which might be mispriced or misgraded . This selection methodology also mitigates the impact of market volatility on the portfolio by excluding bonds with the following characteristics: ▪ The issuer is on review for downgrade by a major rating agency if the downgrade would eliminate the issuer from the portfolio. ▪ Recent events have caused significant price volatility to which rating agencies have not reacted. ▪ Lack of liquidity is causing price quotes to vary significantly from broker to broker. We believe that this bond selection approach provides the best estimate of discount rates to estimate settlement values for our plans’ benefit obligations as required by applicable U.S. GAAP. We develop the discount rate assumptions for the plans at IEnova by constructing a synthetic government zero coupon bond yield curve from the available market data, based on duration matching, and we add a risk spread to allow for the yields of high-quality corporate bonds. We develop the discount rate assumptions for the plans at Chilquinta Energía based on 10 -year Chilean government bond yields and the expected local long-term rate of inflation. These methods for developing the discount rate are required when there is no deep market for high quality corporate bonds. Long-term return on assets is based on the weighted-average of the plans’ investment allocation as of the measurement date and the expected returns for those asset types. We amortize prior service cost using straight line amortization over average future service (or average expected lifetime for plans where participants are substantially inactive employees), which is an alternative method allowed under U.S. GAAP. The significant assumptions affecting benefit obligation and net periodic benefit cost are as follows: WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATION AT DECEMBER 31 Pension benefits Other postretirement benefits 2016 2015 2016 2015 Sempra Energy Consolidated: Discount rate 4.08 % 4.46 % 4.19 % 4.49 % Rate of compensation increase 2.00-10.00 2.00-10.00 2.00-10.00 2.00-10.00 SDG&E: Discount rate 4.08 % 4.35 % 4.15 % 4.50 % Rate of compensation increase 2.00-10.00 2.00-10.00 2.00-10.00 2.00-10.00 SoCalGas: Discount rate 4.10 % 4.50 % 4.20 % 4.50 % Rate of compensation increase 2.00-10.00 2.00-10.00 2.00-10.00 2.00-10.00 WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE NET PERIODIC BENEFIT COST YEARS ENDED DECEMBER 31 Pension benefits Other postretirement benefits 2016 2015 2014 2016 2015 2014 Sempra Energy Consolidated: Discount rate 4.46 % 4.09 % 4.85 % 4.49 % 4.15 % 4.95 % Expected return on plan assets 7.00 7.00 7.00 6.98 6.98 6.97 Rate of compensation increase 2.00-10.00 2.00-10.00 3.50-10.00 2.00-10.00 2.00-10.00 3.50-10.00 SDG&E: Discount rate 4.35 % 4.00 % 4.69 % 4.50 % 4.15 % 5.00 % Expected return on plan assets 7.00 7.00 7.00 6.90 6.91 6.88 Rate of compensation increase 2.00-10.00 2.00-10.00 3.50-10.00 2.00-10.00 2.00-10.00 3.50-10.00 SoCalGas: Discount rate 4.50 % 4.15 % 4.94 % 4.50 % 4.15 % 4.95 % Expected return on plan assets 7.00 7.00 7.00 7.00 7.00 7.00 Rate of compensation increase 2.00-10.00 2.00-10.00 3.50-10.00 2.00-10.00 2.00-10.00 3.50-10.00 Health Care Cost Trend Rates Assumed health care cost trend rates have a significant effect on the amounts that we report for the health care plan costs. Following are the health care cost trend rates applicable to our postretirement benefit plans: ASSUMED HEALTH CARE COST TREND RATES AT DECEMBER 31 Other postretirement benefit plans(1) Pre-65 retirees Retirees aged 65 years and older 2016 2015 2014 2016 2015 2014 Health care cost trend rate assumed for next year 8.00 % 8.10 % 7.75 % 5.50 % 5.50 % 5.25 % Rate to which the cost trend rate is assumed to decline (the ultimate trend) 5.00 % 5.00 % 5.00 % 4.50 % 4.50 % 4.50 % Year the rate reaches the ultimate trend 2022 2022 2020 2022 2022 2020 (1) Excludes Mobile Gas plan. For Mobile Gas, which we deconsolidated on September 12, 2016, the health care cost trend rate assumed for next year for all retirees was 8.10 percent and 7.75 percent in 2015 and 2014, respectively; the ultimate trend was 5.00 percent in 2015 and 2014; and the year the rate reaches the ultimate trend was 2022 and 2020 in 2015 and 2014, respectively. For Chilquinta Energía, the health care cost trend rate assumed for next year, and the ultimate trend, was 3.00 percent in each of 2016, 2015 and 2014. A one-percent change in assumed health care cost trend rates would have had the following effects in 2016: EFFECT OF ONE-PERCENT CHANGE IN ASSUMED HEALTH CARE COST TREND RATES (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas 1% 1% 1% 1% 1% 1% increase decrease increase decrease increase decrease Effect on total of service and interest cost components of net periodic postretirement health care benefit cost $ 5 $ (4 ) $ 1 $ (1 ) $ 4 $ (3 ) Effect on the health care component of the accumulated other postretirement benefit obligations 62 (52 ) 6 (5 ) 55 (46 ) Plan Assets Investment Allocation Strategy for Sempra Energy’s Pension Master Trust Sempra Energy’s pension master trust holds the investments for our pension plans and a portion of the investments for our other postretirement benefit plans. We maintain additional trusts as we discuss below for certain of the California Utilities’ other postretirement benefit plans. Other than through indexing strategies, the trusts do not invest in securities of Sempra Energy. The current asset allocation objective for the pension master trust is to protect the funded status of the plans while generating sufficient returns to cover future benefit payments and accruals. We assess the portfolio performance by comparing actual returns with relevant benchmarks. Currently, the pension plans’ target asset allocations are ▪ 38 percent domestic equity ▪ 26 percent international equity ▪ 18 percent long credit ▪ 8 percent ultra-long duration government securities ▪ 5 percent global high yield credit ▪ 5 percent real assets The asset allocation of the plans is reviewed by our Plan Funding Committee and our Pension and Benefits Investment Committee (the Committees) on a regular basis. When evaluating strategic asset allocations, the Committees consider many variables, including: ▪ long-term cost ▪ variability and level of contributions ▪ funded status ▪ a range of expected outcomes over varying confidence levels We maintain allocations at strategic levels with reasonable bands of variance. In accordance with the Sempra Energy pension investment guidelines, derivative financial instruments may be used by the pension master trust’s equity and fixed income portfolio investment managers to equitize cash, hedge certain exposures, and as substitutes for certain types of fixed income securities. Rate of Return Assumption The expected return on assets in our pension and other postretirement benefit plans is based on the weighted-average of the plans’ investment allocations to specific asset classes as of the measurement date. We arrive at a 7 -percent expected return on assets by considering both the historical and forecasted long-term rates of return on those asset classes. We expect a return of between 7 percent and 9 percent on return-seeking assets and between 3 percent and 5 percent for risk-mitigating assets. Certain trusts that hold assets for the SDG&E other postretirement benefit plan are subject to taxation, which impacts the expected after-tax return on assets in the plan. Concentration of Risk Plan assets are diversified across global equity and bond markets, and concentration of risk in any one economic, industry, maturity or geographic sector is limited. I nvestment Strategy for SDG&E’s and SoCalGas’ Other Postretirement Benefit Plans SDG&E’s and SoCalGas’ other postretirement benefit plans are funded by cash contributions from SDG&E and SoCalGas and their current retirees. The assets of these plans are placed into the pension master trust and other Voluntary Employee Beneficiary Association trusts. The assets in the Voluntary Employee Beneficiary Association trusts are invested at an allocation similar to the pension master trust, with 75 percent invested in return-seeking and 25 percent invested in risk-mitigating assets. This allocation is periodically reviewed to ensure that plan assets are best positioned to meet plan obligations. Fair Value of Pension and Other Postretirement Benefit Plan Assets We classify the investments in Sempra Energy’s pension master trust and the trusts for the California Utilities’ other postretirement benefit plans based on the fair value hierarchy, except for certain investments measured at net asset value (NAV). The following are descriptions of the valuation methods and assumptions we use to estimate the fair values of investments held by pension and other postretirement benefit plan trusts. Equity Securities – Equity securities are valued using quoted prices listed on nationally recognized securities exchanges. Fixed Income Securities – Certain fixed income securities are valued at the closing price reported in the active market in which the security is traded. Other fixed income securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar securities, the security is valued under a discounted cash flows approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. Certain high yield fixed-income securities are valued by applying a price adjustment to the bid side to calculate a mean and ask value. Adjustments can vary based on maturity, credit standing, and reported trade frequencies. The bid to ask spread is determined by the investment manager based on the review of the available market information. Registered Investment Companies – Investments in mutual funds sponsored by a registered investment company are valued based on exchange listed prices for equity and certain fixed income securities or are valued under a discounted cash flows approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks for the remaining fixed income securities. Where the value is a quoted price in an active market, the investment is classified within Level 1 of the fair value hierarchy. Common/Collective Trusts – Investments in common/collective trust funds are valued based on the NAV of units owned, which is based on the current fair value of the funds’ underlying assets. Venture Capital Funds – These funds consist of investments in private equities that are held by limited partnerships following various strategies, including venture capital and corporate finance. The partnerships generally have limited lives of 10 years, after which liquidating distributions will be received. The value is determined ba |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION SEMPRA ENERGY EQUITY COMPENSATION PLANS Sempra Energy has share-based compensation plans intended to align employee and shareholder objectives related to the long-term growth of Sempra Energy. The plans permit a wide variety of share-based awards, including: ▪ non-qualified stock options ▪ incentive stock options ▪ restricted stock awards (RSAs) ▪ restricted stock units (RSUs) ▪ stock appreciation rights ▪ performance awards ▪ stock payments ▪ dividend equivalents Eligible employees, including those from the California Utilities, participate in Sempra Energy’s share-based compensation plans as a component of their compensation package. In the three years ended December 31, 2016, Sempra Energy had the following types of equity awards outstanding: ▪ Non-Qualified Stock Options: Options have an exercise price equal to the market price of the common stock at the date of grant, are service-based, become exercisable over a four -year period, and expire 10 years from the date of grant. Vesting and/or the ability to exercise may be accelerated upon a change in control, in accordance with severance pay agreements, in accordance with the terms of the grant, or upon eligibility for retirement. Options are subject to forfeiture or earlier expiration when an employee terminates employment. ▪ Performance-Based Restricted Stock Units: These RSU awards generally vest in Sempra Energy common stock at the end of three -year (for awards granted during or after 2015) or four -year performance periods based on Sempra Energy’s total return to shareholders relative to that of specified market indices or based on the compound annual growth rate of Sempra Energy’s EPS. The comparative market indices for the awards that vest based on total return to shareholders are the Standard & Poor’s (S&P) 500 Utilities Index and the S&P 500 Index. We primarily use long-term analyst consensus growth estimates for S&P 500 Utilities Index peer companies to develop our targets for awards that vest based on EPS growth. ◦ For awards granted in 2013 or earlier, if Sempra Energy’s total return to shareholders exceeds target levels, up to an additional 50 percent of the number of granted RSUs may be issued. ◦ For awards granted during or after 2014, up to an additional 100 percent of the granted RSUs may be issued if total return to shareholders or EPS growth exceeds target levels. ◦ For awards granted during or after 2015 that vest based on Sempra Energy’s total return to shareholders, a modifier adds 20 percent to the award’s payout (as initially calculated based on total return to shareholders relative to that of specified market indices) for total shareholder return performance in the top quartile relative to historical benchmark data for Sempra Energy and reduces the award’s payout by 20 percent for performance in the bottom quartile. However, in no event will more than an additional 100 percent of the granted RSUs be issued. If performance falls within the second or third quartiles, the modifier is not triggered, and the payout is based solely on total return to shareholders relative to that of specified market indices. If Sempra Energy’s total return to shareholders or EPS growth is below the target levels but above threshold performance levels, shares are subject to partial vesting on a pro rata basis. ▪ Other Performance-Based Restricted Stock Units: RSUs were granted in 2014 and 2015 in connection with the creation of Cameron LNG JV. ◦ The 2014 awards vest to the extent that the Compensation Committee of Sempra Energy’s Board of Directors determines that the objectives of the joint venture are continuing to be achieved. These awards vest on the anniversary of the grant date over a period of either two or three years. ◦ The 2015 awards vest to the extent that the Compensation Committee of Sempra Energy’s Board of Directors determines that Sempra Energy has achieved positive cumulative net income for fiscal years 2015 through 2017 and Cameron LNG JV has commenced commercial operations of the first train. ▪ Service-Based Restricted Stock Units: RSUs may also be service-based; these generally vest at the end of three -year (for awards granted during or after 2015) or four -year service periods. ▪ Restricted Stock Awards: RSAs are solely service-based and are generally exercisable at the end of four years of service. Accelerated vesting of RSAs may occur upon eligibility for retirement. Holders of RSAs have full voting rights. For RSA and RSU awards, vesting may be subject to earlier forfeiture upon termination of employment and accelerated vesting upon a change in control under the applicable long-term incentive plan, in accordance with severance pay agreements , or at the discretion of the Compensation Committee of Sempra Energy’s Board of Directors . Dividend equivalents on shares subject to RSAs and RSUs are reinvested to purchase additional shares that become subject to the same vesting conditions as the RSAs and RSUs to which the dividends relate. In April 2013, the IEnova board of directors approved the IEnova 2013 Long-Term Incentive Plan. The purpose of this plan is to align the interests of employees and directors of IEnova with its shareholders. All awards issued from this plan and any related dividend equivalents will settle in cash at vesting based on the price of IEnova common stock. In 2016, 2015 and 2014, IEnova issued 378,367 RSUs, 278,538 RSUs and 468,339 RSUs, respectively, from this plan, 698,838 of which remain outstanding at December 31, 2016. During 2016, 2015 and 2014, IEnova paid cash of $1 million , $4 million and $3 million , respectively, to settle vested awards. SHARE-BASED AWARDS AND COMPENSATION EXPENSE At December 31, 2016, 5,627,118 shares were authorized and available for future grants of share-based awards. Our practice is to satisfy share-based awards by issuing new shares rather than by open-market purchases. We measure and recognize compensation expense for all share-based payment awards made to our employees and directors based on estimated fair values on the date of grant. We recognize compensation costs net of an estimated forfeiture rate (based on historical experience) and recognize the compensation costs for non-qualified stock options and RSAs and RSUs on a straight-line basis over the requisite service period of the award, which is generally three or four years. However, in the year that an employee becomes eligible for retirement, the remaining expense related to the employee’s awards is recognized immediately. Substantially all awards outstanding are classified as equity instruments; therefore, we recognize additional paid in capital as we recognize the compensation expense associated with the awards. As we discuss in Note 2, we prospectively adopted ASU 2016-09 effective January 1, 2016, which requires that we recognize in earnings the tax benefits (or deficiencies) resulting from tax deductions that are in excess of (or less than) tax benefits related to compensation cost recognized for share-based payments. Prior to adoption, we recorded excess tax benefits from share-based compensation within Sempra Energy’s Shareholders’ Equity. In 2016, we recognized $34 million in excess tax benefits in earnings. In 2015, $52 million in excess tax benefits was recorded within Sempra Energy’s Shareholders’ Equity. In 2014, there were no realized excess tax benefits. Total share-based compensation expense for all of Sempra Energy’s share-based awards was comprised as follows: SHARE-BASED COMPENSATION EXPENSE – SEMPRA ENERGY CONSOLIDATED (Dollars in millions, except per share amounts) Years ended December 31, 2016 2015 2014 Share-based compensation expense, before income taxes $ 46 $ 48 $ 46 Income tax benefit (18 ) (19 ) (18 ) $ 28 $ 29 $ 28 Excess income tax benefit $ (34 ) $ — $ — Sempra Energy Consolidated’s capitalized share-based compensation cost was $7 million in 2016, $6 million in 2015 and $5 million in 2014. Sempra Energy subsidiaries record an expense for the plans to the extent that subsidiary employees participate in the plans and/or the subsidiaries are allocated a portion of the Sempra Energy plans’ corporate staff costs. Expenses and capitalized compensation costs recorded by SDG&E and SoCalGas were as follows: SHARE-BASED COMPENSATION EXPENSE – SDG&E AND SOCALGAS (Dollars in millions) Years ended December 31, 2016 2015 2014 SDG&E: Share-based compensation expense, before income taxes $ 7 $ 8 $ 8 Income tax benefit (3 ) (3 ) (3 ) $ 4 $ 5 $ 5 Capitalized share-based compensation cost $ 4 $ 4 $ 3 SoCalGas: Share-based compensation expense, before income taxes $ 8 $ 10 $ 8 Income tax benefit (3 ) (4 ) (3 ) $ 5 $ 6 $ 5 Capitalized share-based compensation cost $ 3 $ 2 $ 2 SEMPRA ENERGY NON-QUALIFIED STOCK OPTIONS We use a Black-Scholes option-pricing model to estimate the fair value of each non-qualified stock option grant. The use of a valuation model requires us to make certain assumptions about selected model inputs. Expected volatility is calculated based on the historical volatility of Sempra Energy’s stock price. We base the average expected life for options on the contractual term of the option and expected employee exercise and post-termination behavior. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of the grant. The following table shows a summary of non-qualified stock options at December 31, 2016 and activity for the year then ended: NON-QUALIFIED STOCK OPTIONS Shares under option Weighted- average exercise price Weighted- average remaining contractual term (in years) Aggregate intrinsic value (in millions) Outstanding at January 1, 2016 527,997 $ 53.62 Exercised (167,742 ) $ 56.11 Outstanding at December 31, 2016 360,255 $ 52.46 2.0 $ 17 Vested at December 31, 2016 360,255 $ 52.46 2.0 $ 17 Exercisable at December 31, 2016 360,255 $ 52.46 2.0 $ 17 The aggregate intrinsic value at December 31, 2016 is the total of the difference between Sempra Energy’s closing stock price and the exercise price for all in-the-money options. The aggregate intrinsic value for non-qualified stock options exercised in the last three years was ▪ $8 million in 2016 ▪ $12 million in 2015 ▪ $33 million in 2014 No stock options were granted in 2016, 2015 or 2014. All outstanding stock options were fully vested and all compensation cost related to stock options had been recognized as of December 31, 2014. The total fair value of shares vested in 2014 was $1 million . We received cash of $9 million from stock option exercises during 2016. SEMPRA ENERGY RESTRICTED STOCK AWARDS AND UNITS We use a Monte-Carlo simulation model to estimate the fair value of our RSAs and RSUs. Our determination of fair value is affected by the historical volatility of the stock price for Sempra Energy and its peer group companies. The valuation also is affected by the risk-free rates of return, and a number of other variables. Below are key assumptions for awards granted in 2016, 2015 and 2014 for Sempra Energy: KEY ASSUMPTIONS FOR AWARDS GRANTED Years ended December 31, 2016 2015 2014 Risk-free rate of return 1.3 % 1.1 % 1.2 % Stock price volatility 16 14 16 Restricted Stock Awards We provide below a summary of Sempra Energy’s RSAs at December 31, 2016 and the activity during the year. RESTRICTED STOCK AWARDS Shares Weighted-average grant-date fair value Nonvested at January 1, 2016 1,537 $ 75.87 Vested (1,537 ) $ 75.87 Nonvested at December 31, 2016 — $ — No RSAs were granted in 2016, 2015 or 2014. All outstanding RSAs were fully vested and all compensation cost related to RSAs has been recognized as of December 31, 2016. The total fair value of shares vested during the year was a negligible amount in 2016 and $1 million in each of 2015 and 2014. Restricted Stock Units We provide below a summary of Sempra Energy’s RSUs as of December 31, 2016 and the activity during the year. RESTRICTED STOCK UNITS Performance-based restricted stock units Service-based restricted stock units Units Weighted- average grant-date fair value Units Weighted- average Nonvested at January 1, 2016 2,271,675 $ 73.28 348,806 $ 80.14 Granted 467,830 $ 100.37 95,876 $ 93.59 Vested (761,042 ) $ 49.28 (135,456 ) $ 65.20 Forfeited (24,141 ) $ 115.73 (3,490 ) $ 90.58 Nonvested at December 31, 2016(1) 1,954,322 $ 88.58 305,736 $ 94.68 Expected to vest at December 31, 2016 1,883,636 $ 88.07 293,822 $ 90.58 (1) Each RSU represents the right to receive one share of our common stock if applicable performance conditions are satisfied. For all performance-based RSUs, except for those issued in connection with the creation of Cameron LNG JV, up to an additional 50 percent ( 100 percent for awards granted during or after 2014) of the shares represented by the RSUs may be issued if Sempra Energy exceeds target performance conditions. The total fair value of shares vested during the year was $46 million in each of 2016 and 2015 and $33 million in 2014. The $34 million of total compensation cost related to nonvested RSUs not yet recognized as of December 31, 2016 is expected to be recognized over a weighted-average period of 1.5 years. The weighted-average per-share fair values for performance-based RSUs granted were $123.30 and $88.01 in 2015 and 2014, respectively. The weighted-average per-share fair values for service-based RSUs granted were $111.43 and $91.54 in 2015 and 2014, respectively. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS We use derivative instruments primarily to manage exposures arising in the normal course of business. Our principal exposures are commodity market risk, benchmark interest rate risk and foreign exchange rate exposures. Our use of derivatives for these risks is integrated into the economic management of our anticipated revenues, anticipated expenses, assets and liabilities. Derivatives may be effective in mitigating these risks (1) that could lead to declines in anticipated revenues or increases in anticipated expenses, or (2) that our asset values may fall or our liabilities increase. Accordingly, our derivative activity summarized below generally represents an impact that is intended to offset associated revenues, expenses, assets or liabilities that are not included in the tables below. In certain cases, we apply the normal purchase or sale exception to derivative instruments and have other commodity contracts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. In all other cases, we record derivatives at fair value on the 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 (loss) (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the settlements of derivative instruments as operating activities on the Consolidated Statements of Cash Flows. HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated cash flows associated with revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that the future cash flows of a given revenue or expense item may vary, and other criteria. We may designate an interest rate derivative as a fair value hedging instrument if it effectively converts our own debt from a fixed interest rate to a variable rate. The combination of the derivative and debt instrument results in fixing that portion of the fair value of the debt that is related to benchmark interest rates. Designating fair value hedges is dependent on the instrument being used, the effectiveness of the instrument in offsetting changes in the fair value of our debt instruments, and other criteria. ENERGY DERIVATIVES Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business, as follows: ▪ The California Utilities use natural gas and electricity derivatives, for the benefit of customers, with the objective of managing price risk and basis risks, and stabilizing and lowering natural gas and electricity costs. These derivatives include fixed price natural gas and electricity positions, options, and basis risk instruments, which are either exchange-traded or over-the-counter financial instruments, or bilateral physical transactions. This activity is governed by risk management and transacting activity plans that have been filed with and approved by the CPUC. Natural gas and electricity derivative activities are recorded as commodity costs that are offset by regulatory account balances and are recovered in rates. Net commodity cost impacts on the 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, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Consolidated Statements of Operations. ▪ Sempra Mexico, Sempra LNG & Midstream and Sempra Renewables may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: LNG, natural gas transportation and storage, and power generation. Gains and losses associated with undesignated derivatives are recognized in Energy-Related Businesses Revenues or in Cost of Natural Gas, Electric Fuel and Purchased Power on the 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 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 December 31, 2016 and 2015 as follows: NET ENERGY DERIVATIVE VOLUMES (Quantities in millions) December 31, Commodity Unit of measure 2016 2015 California Utilities: SDG&E: Natural gas MMBtu(1) 48 70 Electricity MWh(2) 4 1 Congestion revenue rights MWh 48 36 SoCalGas – natural gas MMBtu 1 1 Energy-Related Businesses: Sempra LNG & Midstream – natural gas MMBtu 31 43 (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 contractual obligations and assets, such as natural gas purchases and sales. INTEREST RATE DERIVATIVES We are exposed to interest rates primarily as a result of our current and expected use of financing. The California Utilities, as well as other Sempra Energy subsidiaries and joint ventures, periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. We utilize interest rate swaps typically designated as fair value hedges, as a means to achieve our targeted level of variable rate debt as a percent of total debt. In addition, we may utilize interest rate swaps, typically designated as cash flow hedges, to lock in interest rates on outstanding debt or in anticipation of future financings. Separately, Otay Mesa VIE has entered into interest rate swap agreements, designated as cash flow hedges, to moderate its exposure to interest rate changes. At December 31, 2016 and 2015 , the net notional amounts of our interest rate derivatives, excluding joint ventures, were: INTEREST RATE DERIVATIVES (Dollars in millions) December 31, 2016 December 31, 2015 Notional debt Maturities Notional debt Maturities Sempra Energy Consolidated: Cash flow hedges(1)(2) $ 924 2017-2032 $ 384 2016-2028 Fair value hedges — — 300 2016 SDG&E: Cash flow hedge(1) 305 2017-2019 315 2016-2019 (1) Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. (2) At December 31, 2016, includes GdC, which was previously a joint venture and excluded from this table until we acquired the remaining 50-percent interest in September 2016. FOREIGN CURRENCY DERIVATIVES We utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and joint ventures. These cash flow hedges exchange our Mexican-peso denominated principal and interest payments into the U.S. dollar and swap Mexican variable interest rates for U.S. fixed interest rates. From time to time, Sempra Mexico and its joint ventures may use other foreign currency derivatives to hedge exposures related to cash flows associated with revenues from contracts denominated in Mexican pesos that are indexed to the U.S. dollar. We are also exposed to exchange rate movements at our Mexican subsidiaries and joint ventures, which have U.S. dollar denominated cash balances, receivables, payables and debt (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. They also have deferred income tax assets and liabilities denominated in the Mexican peso, which must be translated to U.S. dollars for financial reporting purposes. In addition, monetary assets and liabilities and certain nonmonetary assets and liabilities are adjusted for Mexican inflation for Mexican income tax purposes. We utilize foreign currency derivatives as a means to manage the risk of exposure to significant fluctuations in our income tax expense and equity earnings from these impacts, however we generally do not hedge our deferred income tax assets and liabilities. In January 2017, we entered into foreign currency derivatives with a notional amount totaling $750 million . In addition, Sempra South American Utilities and its joint ventures use foreign currency derivatives to manage foreign currency rate risk. We discuss these derivatives at Chilquinta Energía’s Eletrans joint venture investment in Note 4. At December 31, 2016 and 2015 , the net notional amounts of our foreign currency derivatives, excluding joint ventures, were: FOREIGN CURRENCY DERIVATIVES (Dollars in millions) December 31, 2016 December 31, 2015 Notional amount Maturities Notional amount Maturities Sempra Energy Consolidated: Cross-currency swaps $ 408 2017-2023 $ 408 2016-2023 Other foreign currency derivatives(1) 86 2017-2018 — — (1) At December 31, 2016, includes GdC, which was previously a joint venture and excluded from this table until we acquired the remaining 50-percent interest in September 2016. FINANCIAL STATEMENT PRESENTATION The Consolidated Balance Sheets reflect the offsetting of net derivative positions and cash collateral with the same counterparty when a legal right of offset exists. The following tables provide the fair values of derivative instruments on the Consolidated Balance Sheets at December 31, 2016 and 2015 , 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 CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2016 Current assets: Fixed-price contracts and other derivatives(1) Other assets: Sundry Current liabilities: Fixed-price contracts and other derivatives(2) Deferred credits and other liabilities: Fixed-price contracts and other derivatives Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments(3) $ 7 $ 2 $ (24 ) $ (228 ) Commodity contracts not subject to rate recovery — — (14 ) — Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery 248 36 (254 ) (28 ) Associated offsetting commodity contracts (242 ) (27 ) 242 27 Associated offsetting cash collateral — (1 ) 16 1 Commodity contracts subject to rate recovery 37 73 (57 ) (150 ) Associated offsetting commodity contracts (9 ) (1 ) 9 1 Associated offsetting cash collateral — — 5 13 Net amounts presented on the balance sheet 41 82 (77 ) (364 ) Additional cash collateral for commodity contracts not subject to rate recovery 10 — — — Additional cash collateral for commodity contracts subject to rate recovery 32 — — — Total(4) $ 83 $ 82 $ (77 ) $ (364 ) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments(3) $ — $ — $ (13 ) $ (12 ) Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery 33 73 (51 ) (150 ) Associated offsetting commodity contracts (6 ) (1 ) 6 1 Associated offsetting cash collateral — — 3 13 Net amounts presented on the balance sheet 27 72 (55 ) (148 ) Additional cash collateral for commodity contracts not subject to rate recovery 1 — — — Additional cash collateral for commodity contracts subject to rate recovery 30 — — — Total(4) $ 58 $ 72 $ (55 ) $ (148 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 4 $ — $ (6 ) $ — Associated offsetting commodity contracts (3 ) — 3 — Associated offsetting cash collateral — — 2 — Net amounts presented on the balance sheet 1 — (1 ) — Additional cash collateral for commodity contracts not subject to rate recovery 1 — — — Additional cash collateral for commodity contracts subject to rate recovery 2 — — — Total $ 4 $ — $ (1 ) $ — (1) Included in Current Assets: Other for SoCalGas. (2) Included in Current Liabilities: Other for SoCalGas. (3) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. (4) Normal purchase contracts previously measured at fair value are excluded. DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2015 Current assets: Fixed-price contracts and other derivatives(1) Other assets: Sundry Current liabilities: Fixed-price contracts and other derivatives(2) Deferred credits and other liabilities: Fixed-price contracts and other derivatives Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments(3) $ 4 $ 1 $ (15 ) $ (156 ) Commodity contracts not subject to rate recovery 13 — — — Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery 245 32 (239 ) (21 ) Associated offsetting commodity contracts (232 ) (20 ) 232 20 Associated offsetting cash collateral (6 ) — 4 — Commodity contracts subject to rate recovery 28 49 (61 ) (64 ) Associated offsetting commodity contracts (2 ) (2 ) 2 2 Associated offsetting cash collateral — — 28 26 Net amounts presented on the balance sheet 50 60 (49 ) (193 ) Additional cash collateral for commodity contracts not subject to rate recovery 2 — — — Additional cash collateral for commodity contracts subject to rate recovery 28 — — — Total(4) $ 80 $ 60 $ (49 ) $ (193 ) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments(3) $ — $ — $ (14 ) $ (23 ) Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery — — (1 ) — Associated offsetting cash collateral — — 1 — Commodity contracts subject to rate recovery 27 49 (60 ) (64 ) Associated offsetting commodity contracts (2 ) (2 ) 2 2 Associated offsetting cash collateral — — 28 26 Net amounts presented on the balance sheet 25 47 (44 ) (59 ) Additional cash collateral for commodity contracts not subject to rate recovery 1 — — — Additional cash collateral for commodity contracts subject to rate recovery 27 — — — Total(4) $ 53 $ 47 $ (44 ) $ (59 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery $ — $ — $ (1 ) $ — Associated offsetting cash collateral — — 1 — Commodity contracts subject to rate recovery 1 — (1 ) — Net amounts presented on the balance sheet 1 — (1 ) — Additional cash collateral for commodity contracts subject to rate recovery 1 — — — Total $ 2 $ — $ (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 Consolidated Statements of Operations and in OCI and AOCI for the years ended December 31 were: FAIR VALUE HEDGE IMPACTS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Years ended December 31, Location 2016 2015 2014 Sempra Energy Consolidated: Interest rate instruments Interest Expense $ 3 $ 6 $ 8 Interest rate instruments Other Income, Net (2 ) (5 ) (3 ) Total (1) $ 1 $ 1 $ 5 (1) There was no hedge ineffectiveness in 2016 or 2015. There were gains of $9 million from hedge ineffectiveness in 2014. 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. CASH FLOW HEDGE IMPACTS (Dollars in millions) Pretax (loss) gain recognized in OCI Pretax (loss) gain reclassified from AOCI into earnings Years ended December 31, Years ended December 31, 2016 2015 2014 Location 2016 2015 2014 Sempra Energy Consolidated: Interest rate and foreign exchange instruments(1) $ (8 ) $ (18 ) $ (24 ) Interest Expense $ (17 ) $ (18 ) $ (21 ) Interest rate instruments — — 3 Gain on Sale of Assets — — 3 Interest rate instruments (9 ) (80 ) (127 ) Equity Earnings, Before Income Tax (10 ) (12 ) (10 ) Interest rate and foreign exchange instruments — — — Remeasurement of Equity Method Investment (7 ) — — Interest rate and foreign exchange instruments 5 (20 ) — Equity Earnings, Net of Income Tax (5 ) (13 ) — Foreign exchange instruments 4 — — Revenues: Energy- Related Businesses — — — Commodity contracts not subject to rate recovery (13 ) 12 19 Revenues: Energy- Related Businesses 6 14 8 Total(2) $ (21 ) $ (106 ) $ (129 ) $ (33 ) $ (29 ) $ (20 ) SDG&E: Interest rate instruments(1)(3) $ (2 ) $ (6 ) $ (9 ) Interest Expense $ (12 ) $ (12 ) $ (11 ) SoCalGas: Interest rate instruments $ — $ — $ — Interest Expense $ (1 ) $ (1 ) $ (1 ) (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. (2) There was $4 million , $2 million and $1 million of losses from ineffectiveness related to these cash flow hedges in 2016 , 2015 and 2014 , respectively. (3) There was negligible hedge ineffectiveness related to these cash flow hedges at SDG&E in 2016 , 2015 and 2014 . 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 $12 million in noncontrolling interests, substantially all of which is related to Otay Mesa VIE at SDG&E) related to cash flow hedges will be reclassified into earnings during the next twelve months as the hedged items affect earnings. SoCalGas expects that negligible losses, net of income tax benefit, that are currently recorded in AOCI related to cash flow hedges will be reclassified into earnings during the next twelve months as the hedged items affect earnings. Actual amounts ultimately reclassified into earnings depend on the interest rates in effect when derivative contracts mature. For all forecasted transactions, the maximum remaining term over which we are hedging exposure to the variability of cash flows at December 31, 2016 is approximately 15 years and 2 years for Sempra Energy Consolidated and SDG&E, respectively. The maximum remaining term for which we are hedging exposure to the variability of cash flows at our equity method investees is 19 years . The effects of derivative instruments not designated as hedging instruments on the Consolidated Statements of Operations for the years ended December 31 were: UNDESIGNATED DERIVATIVE IMPACTS (Dollars in millions) Pretax (loss) gain on derivatives recognized in earnings Years ended December 31, Location 2016 2015 2014 Sempra Energy Consolidated: Interest rate and foreign exchange instruments Other Income, Net $ (32 ) $ (4 ) $ (24 ) Foreign exchange instruments Equity Earnings, Net of Income Tax 3 (4 ) (5 ) Commodity contracts not subject to rate recovery Revenues: Energy-Related Businesses (18 ) 42 17 Commodity contracts not subject to rate recovery Cost of Natural Gas, Electric Fuel and Purchased Power — — 3 Commodity contracts not subject to rate recovery Operation and Maintenance 1 (1 ) (4 ) Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power (53 ) (126 ) (10 ) Commodity contracts subject to rate recovery Cost of Natural Gas (4 ) 1 — Total $ (103 ) $ (92 ) $ (23 ) SDG&E: Commodity contracts not subject to rate recovery Operation and Maintenance $ — $ — $ (1 ) Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power (53 ) (126 ) (10 ) Total $ (53 ) $ (126 ) $ (11 ) SoCalGas: Commodity contracts not subject to rate recovery Operation and Maintenance $ 1 $ (1 ) $ (2 ) Commodity contracts subject to rate recovery Cost of Natural Gas (4 ) 1 — Total $ (3 ) $ — $ (2 ) CONTINGENT FEATURES For Sempra Energy Consolidated and SDG&E, certain of our derivative instruments contain credit limits which vary depending on our credit ratings. Generally, these provisions, if applicable, may reduce our credit limit if a specified credit rating agency reduces our ratings. In certain cases, if our credit ratings were to fall below investment grade, the counterparty to these derivative liability instruments could request immediate payment or demand immediate and ongoing full collateralization. For Sempra Energy Consolidated, the total fair value of this group of derivative instruments in a net liability position at December 31, 2016 and 2015 is $10 million and $6 million , respectively. At December 31, 2016 , if the credit ratings of Sempra Energy were reduced below investment grade, $13 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 is negligible at December 31, 2016 and $5 million at December 31, 2015 . At December 31, 2016 , if the credit ratings of SDG&E were reduced below investment grade, $3 million 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 | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS 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 December 31, 2016 and 2015 . 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 9 in “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 December 31, 2016 and 2015 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). ▪ For commodity contracts, interest rate derivatives and foreign exchange instruments, we primarily use a market approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs and long-term, fixed-price electricity positions at SDG&E, as we discuss below in “Level 3 Information.” ▪ Rabbi Trust investments include marketable securities that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1). These investments in marketable securities were negligible at both December 31, 2016 and 2015 . There were no transfers into or out of Level 1, Level 2 or Level 3 for Sempra Energy Consolidated, SDG&E or SoCalGas during the periods presented. RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Fair value at December 31, 2016 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 508 $ — $ — $ — $ 508 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 36 16 — — 52 Municipal bonds — 206 — — 206 Other securities — 141 — — 141 Total debt securities 36 363 — — 399 Total nuclear decommissioning trusts(2) 544 363 — — 907 Interest rate and foreign exchange instruments — 9 — — 9 Commodity contracts not subject to rate recovery — 15 — 9 24 Commodity contracts subject to rate recovery 1 3 96 32 132 Total $ 545 $ 390 $ 96 $ 41 $ 1,072 Liabilities: Interest rate and foreign exchange instruments $ — $ 252 $ — $ — $ 252 Commodity contracts not subject to rate recovery 16 11 — (17 ) 10 Commodity contracts subject to rate recovery 19 8 170 (18 ) 179 Total $ 35 $ 271 $ 170 $ (35 ) $ 441 Fair value at December 31, 2015 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 619 $ — $ — $ — $ 619 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 47 44 — — 91 Municipal bonds — 156 — — 156 Other securities — 182 — — 182 Total debt securities 47 382 — — 429 Total nuclear decommissioning trusts(2) 666 382 — — 1,048 Interest rate and foreign exchange instruments — 5 — — 5 Commodity contracts not subject to rate recovery 22 16 — (4 ) 34 Commodity contracts subject to rate recovery — 1 72 28 101 Total $ 688 $ 404 $ 72 $ 24 $ 1,188 Liabilities: Interest rate and foreign exchange instruments $ — $ 171 $ — $ — $ 171 Commodity contracts not subject to rate recovery 5 3 — (4 ) 4 Commodity contracts subject to rate recovery — 68 53 (54 ) 67 Total $ 5 $ 242 $ 53 $ (58 ) $ 242 (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 December 31, 2016 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 508 $ — $ — $ — $ 508 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 36 16 — — 52 Municipal bonds — 206 — — 206 Other securities — 141 — — 141 Total debt securities 36 363 — — 399 Total nuclear decommissioning trusts(2) 544 363 — — 907 Commodity contracts not subject to rate recovery — — — 1 1 Commodity contracts subject to rate recovery 1 2 96 30 129 Total $ 545 $ 365 $ 96 $ 31 $ 1,037 Liabilities: Interest rate instruments $ — $ 25 $ — $ — $ 25 Commodity contracts subject to rate recovery 17 7 170 (16 ) 178 Total $ 17 $ 32 $ 170 $ (16 ) $ 203 Fair value at December 31, 2015 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 619 $ — $ — $ — $ 619 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 47 44 — — 91 Municipal bonds — 156 — — 156 Other securities — 182 — — 182 Total debt securities 47 382 — — 429 Total nuclear decommissioning trusts(2) 666 382 — — 1,048 Commodity contracts not subject to rate recovery — — — 1 1 Commodity contracts subject to rate recovery — — 72 27 99 Total $ 666 $ 382 $ 72 $ 28 $ 1,148 Liabilities: Interest rate instruments $ — $ 37 $ — $ — $ 37 Commodity contracts not subject to rate recovery 1 — — (1 ) — Commodity contracts subject to rate recovery — 67 53 (54 ) 66 Total $ 1 $ 104 $ 53 $ (55 ) $ 103 (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 December 31, 2016 Level 1 Level 2 Level 3 Netting(1) Total Assets: Commodity contracts not subject to rate recovery $ — $ — $ — $ 1 $ 1 Commodity contracts subject to rate recovery — 1 — 2 3 Total $ — $ 1 $ — $ 3 $ 4 Liabilities: Commodity contracts subject to rate recovery $ 2 $ 1 $ — $ (2 ) $ 1 Total $ 2 $ 1 $ — $ (2 ) $ 1 Fair value at December 31, 2015 Level 1 Level 2 Level 3 Netting(1) Total Assets: Commodity contracts subject to rate recovery $ — $ 1 $ — $ 1 $ 2 Total $ — $ 1 $ — $ 1 $ 2 Liabilities: Commodity contracts not subject to rate recovery $ 1 $ — $ — $ (1 ) $ — Commodity contracts subject to rate recovery — 1 — — 1 Total $ 1 $ 1 $ — $ (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 CRRs and long-term, fixed-price electricity positions classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E: LEVEL 3 RECONCILIATIONS (Dollars in millions) Years ended December 31, 2016 2015 2014 Balance at January 1 $ 19 $ 107 $ 99 Realized and unrealized (losses) gains (120 ) (134 ) 15 Allocated transmission instruments 8 12 19 Settlements 19 34 (26 ) Balance at December 31 $ (74 ) $ 19 $ 107 Change in unrealized (losses) gains relating to instruments still held at December 31 $ (101 ) $ (27 ) $ 8 SDG&E’s Energy and Fuel Procurement department, in conjunction with SDG&E’s finance group, is responsible for determining the appropriate fair value methodologies used to value and classify CRRs and long-term, fixed-price electricity positions on an ongoing basis. Inputs used to determine the fair value of CRRs and fixed-price electricity positions are reviewed and compared with market conditions to determine reasonableness. SDG&E expects all costs related to these instruments to be recoverable through customer rates. As such, there is no impact to earnings from changes in the fair value of these instruments. CRRs are recorded at fair value based almost entirely on the most current auction prices published by the California ISO, an objective source. Annual auction prices are published once a year, typically in the middle of November, and remain in effect for the following year. The impact associated with discounting is negligible. Because these auction prices are a less observable input, these instruments are classified as Level 3. The fair value of these instruments is derived from auction price differences between two locations. From January 1, 2016 to December 31, 2016 , the auction prices ranged from $(24) per MWh to $10 per MWh at a given location, and from January 1, 2015 to December 31, 2015 , the auction prices ranged from $(16) per MWh to $8 per MWh at a given location. 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 9. Long-term, fixed-price electricity positions that are valued using significant unobservable data are classified as Level 3 because the contract terms relate to a delivery location or tenor for which observable market rate information is not available. The fair value of the net electricity positions classified as Level 3 is derived from a discounted cash flow model using market electricity forward price inputs. At December 31, 2016 , these inputs range from $17.40 per MWh to $56.67 per MWh. A significant increase or decrease in market electricity forward prices would result in a significantly higher or lower fair value, respectively. We summarize long-term, fixed-price electricity position volumes in Note 9. Realized gains and losses associated with CRRs and long-term electricity positions, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the 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, short-term due to/from unconsolidated affiliates, dividends and accounts payable, short-term debt and customer deposits) approximate their carrying amounts because of the short-term nature of these instruments. Investments in life insurance contracts that we hold in support of our Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans are carried at cash surrender values, which represent the amount of cash that could be realized under the contracts. The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Consolidated Balance Sheets at December 31, 2016 and 2015 : FAIR VALUE OF FINANCIAL INSTRUMENTS (Dollars in millions) December 31, 2016 Carrying Fair Value amount Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates(1) $ 184 $ — $ 91 $ 84 $ 175 Total long-term debt(2)(3) 15,068 — 15,455 492 15,947 SDG&E: Total long-term debt(3)(4) $ 4,654 $ — $ 4,727 $ 305 $ 5,032 SoCalGas: Total long-term debt(5) $ 3,009 $ — $ 3,131 $ — $ 3,131 December 31, 2015 Carrying Fair Value amount Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates(1) $ 175 $ — $ 97 $ 69 $ 166 Total long-term debt(2)(3) 13,761 — 13,985 648 14,633 SDG&E: Total long-term debt(3)(4) $ 4,304 $ — $ 4,355 $ 315 $ 4,670 SoCalGas: Total long-term debt(5) $ 2,513 $ — $ 2,621 $ — $ 2,621 (1) Excluding accumulated interest outstanding of $17 million and $11 million at December 31, 2016 and 2015 , respectively. (2) Before reductions for unamortized discount (net of premium) and debt issuance costs of $109 million and $107 million at December 31, 2016 and 2015 , respectively, and excluding build-to-suit and capital lease obligations of $383 million and $387 million at December 31, 2016 and 2015 , respectively. We discuss our long-term debt in Note 5. (3) Level 3 instruments include $305 million and $315 million at December 31, 2016 and 2015 , respectively, related to Otay Mesa VIE. (4) Before reductions for unamortized discount and debt issuance costs of $45 million and $43 million at December 31, 2016 and 2015 , respectively, and excluding capital lease obligations of $240 million and $244 million at December 31, 2016 and 2015 , respectively. (5) Before reductions for unamortized discount and debt issuance costs of $27 million and $24 million at December 31, 2016 and 2015 , respectively, and excluding capital lease obligations of $1 million at December 31, 2015 . We determine the fair value of certain long-term amounts due from unconsolidated affiliates and long-term debt based on a market approach using quoted market prices for identical or similar securities in thinly-traded markets (Level 2). We value other long-term amounts due from unconsolidated affiliates of our South American utilities using a perpetuity approach based on the obligation’s fixed interest rate, the absence of a stated maturity date and a discount rate reflecting local borrowing costs (Level 3). We value other long-term amounts due from unconsolidated affiliates and 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 13. Non-Recurring Fair Value Measures Sempra Mexico GdC. On September 26, 2016, IEnova completed the acquisition of PEMEX’s 50 -percent interest in GdC, increasing its ownership interest to 100 percent . As a result of IEnova obtaining control over GdC, in the year ended December 31, 2016, Sempra Mexico recognized a pretax gain of $617 million ( $432 million after-tax) for the excess of the acquisition-date fair value of its previously held equity interest in GdC ( $1.144 billion ) over the carrying value of that interest ( $520 million ) and losses reclassified from AOCI ( $7 million ), included as Remeasurement of Equity Method Investment on Sempra Energy’s Consolidated Statement of Operations. The valuation technique used to measure the acquisition-date fair value of our equity interest in GdC immediately prior to the business acquisition was based on the fair value of the entire business combination ( $2.288 billion ) less the fair value of the consideration paid ( $1.144 billion , the equity sale price). We discuss the GdC acquisition in Note 3. TdM. In February 2016, management approved a plan to market and sell its TdM natural gas-fired power plant, and it was classified as held for sale on the Sempra Energy Consolidated Balance Sheet, as we discuss in Note 3. In September 2016, we received market information that indicated that the fair value of TdM may be less than its carrying value. As a result, after performing an analysis of the information, Sempra Mexico reduced the carrying value of TdM by recognizing a noncash impairment charge of $131 million ( $111 million after-tax) for the year ended December 31, 2016 in Impairment Losses on the Sempra Energy Consolidated Statement of Operations. Market values resulting from a third party bidding process are considered to be Level 2 inputs in the fair value hierarchy. 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. 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. Sempra LNG & Midstream Rockies Express. As we discuss in Note 3, in March 2016, Sempra LNG & Midstream agreed to sell its 25 -percent interest in Rockies Express for cash consideration of $440 million , subject to adjustment at closing. In March 2016, we recorded a noncash impairment of our investment in Rockies Express of $44 million ( $27 million after-tax). The charge is included in Equity Earnings, Before Income Tax, on the Sempra Energy Consolidated Statement of Operations for the year ended December 31, 2016. We considered the sale price for our equity interest in Rockies Express to be a market participants’ view of the total value of Rockies Express and measured the fair value of our investment based on the equity sale price. The following table summarizes significant inputs impacting our non-recurring fair value measures: NON-RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Estimated fair value Valuation technique Fair value hierarchy % of fair value measurement Inputs used to develop measurement Range of inputs Investment in GdC $ 1,144 (1) Market approach Level 2 100% Equity sale price 100% TdM $ 145 (2) Market approach Level 2 100% Purchase price offers 100% Investment in $ 26 (3) Market approach Level 2 100% Equity sale price 100% Investment in $ 440 (4) Market approach Level 2 100% Equity sale price 100% (1) At measurement date of September 26, 2016, immediately prior to acquiring a 100 -percent ownership interest in GdC. (2) At measurement date of September 29, 2016. At December 31, 2016, TdM has a carrying value of $154 million , reflecting subsequent operating activity, and is classified as held for sale. (3) At measurement date of July 16, 2014. At December 31, 2016, our investment in Energía Sierra Juárez had a carrying value of $38 million , reflecting subsequent equity method activity to record distributions and earnings. (4) At measurement date of March 29, 2016. On May 9, 2016, Sempra LNG & Midstream sold its equity interest in Rockies Express. |
PREFERRED STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Preferred Stock | PREFERRED STOCK Sempra Energy and SDG&E are authorized to issue up to 50 million and 45 million shares of preferred stock, respectively. At December 31, 2016 and 2015 , Sempra Energy and SDG&E have no preferred stock outstanding. The rights, preferences, privileges and restrictions for any new series of preferred stock would be established by each company’s board of directors at the time of issuance. SoCalGas is authorized to issue up to 11 million shares of preferred stock. At December 31, 2016 and 2015 , SoCalGas has the following preferred stock outstanding: PREFERRED STOCK OUTSTANDING (Dollars in millions, except per share amounts) December 31, 2016 2015 $25 par value, authorized 1,000,000 shares: 6% Series, 79,011 shares outstanding $ 3 $ 3 6% Series A, 783,032 shares outstanding 19 19 SoCalGas - Total preferred stock 22 22 Less: 50,970 shares of the 6% Series outstanding owned by Pacific Enterprises (2 ) (2 ) Sempra Energy - Total preferred stock of subsidiary $ 20 $ 20 None of SoCalGas’ outstanding preferred stock is callable and no shares are subject to mandatory redemption. All outstanding shares have one vote per share, cumulative preferences as to dividends and liquidation preferences of $25 per share plus any unpaid divide nds . In addition to the outstanding preferred stock above, SoCalGas’ authorized preferred stock includes 5 million shares of series preferred stock and 5 million shares of preference stock, both without par value and with cumulative preferences as to dividends and liquidation value. The preference stock would rank junior to all series of preferred stock. Other rights and privileges of any new series of such stock would be established by the SoCalGas board of directors at the time of issuance. |
SEMPRA ENERGY - SHAREHOLDERS' E
SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE | SEMPRA ENERGY – SHAREHOLDERS’ EQUITY AND EARNINGS PER SHARE The following table provides EPS computations for the years ended December 31, 2016, 2015 and 2014. Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the year. 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 AND DIVIDENDS DECLARED (Dollars in millions, except per share amounts; shares in thousands) Years ended December 31, 2016 2015 2014 Numerator: Earnings/Income attributable to common shares $ 1,370 $ 1,349 $ 1,161 Denominator: Weighted-average common shares outstanding for basic EPS(1) 250,217 248,249 245,891 Dilutive effect of stock options, restricted stock awards and restricted stock units(2)(3) 938 2,674 4,764 Weighted-average common shares outstanding for diluted EPS(2) 251,155 250,923 250,655 Earnings per share: Basic $ 5.48 $ 5.43 $ 4.72 Diluted $ 5.46 $ 5.37 $ 4.63 Dividends declared per share of common stock(4) $ 3.02 $ 2.80 $ 2.64 (1) Includes average fully vested RSUs held in our Deferred Compensation Plan of 568 in 2016, 491 in 2015 and 212 in 2014. These fully vested RSUs are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued. (2) Reflects the prospective adoption of ASU 2016-09 as of January 1, 2016. Prior to the adoption, the dilutive effect of stock options, RSAs and RSUs was reduced by excess tax benefits assumed to be used to repurchase shares on the open market. (3) Due to market fluctuations of both Sempra Energy stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 8, dilutive RSUs may vary widely from period-to-period. (4) Our board of directors has the discretion to determine the payment and amount of future dividends. The potentially dilutive impact from stock options, RSAs and RSUs is calculated under the treasury stock method. Under this method, proceeds based on the exercise price and unearned compensation are assumed to be used to repurchase shares on the open market at the average market price for the period, reducing the number of potential new shares to be issued and sometimes causing an antidilutive effect. The computation of diluted EPS excludes zero , 722 and 4,087 RSUs for the years ended December 31, 2016, 2015 and 2014, respectively, because to include them would be antidilutive for the period. However, these RSUs could potentially dilute basic EPS in the future. There were no antidilutive stock options or RSAs for the years ended December 31, 2016, 2015 and 2014. Prior to adoption of ASU 2016-09 as of January 1, 2016, which we discuss in Note 2, excess tax benefits were also assumed to be used to repurchase shares on the open market when applying the treasury stock method. The excess tax benefits are tax deductions we would receive upon the assumed exercise of stock options and assumed vesting of RSAs and RSUs in excess of the deferred income taxes we recorded related to the compensation expense on such stock options, awards and units. Tax shortfalls occur when the assumed tax deductions are less than recorded deferred income taxes. Upon adoption of ASU 2016-09, as a result of the provision to recognize excess tax benefits and shortfalls in earnings, these benefits and shortfalls are no longer included in the calculation of diluted EPS beginning January 1, 2016. We are authorized to issue 750 million shares of no par value common stock. The following table provides common stock activity for the years ended December 31, 2016, 2015 and 2014. COMMON STOCK ACTIVITY Years ended December 31, 2016 2015 2014 Common shares outstanding, January 1 248,298,080 246,330,884 244,461,327 Restricted stock units vesting(1) 1,363,555 1,499,062 989,027 Stock options exercised 167,742 227,815 699,783 Savings plan issuance 653,607 652,631 398,042 Common stock investment plan(2) 266,056 249,665 205,203 Shares repurchased(3) (596,526 ) (661,977 ) (422,498 ) Common shares outstanding, December 31 250,152,514 248,298,080 246,330,884 (1) Includes dividend equivalents. (2) Participants in the Direct Stock Purchase Plan may reinvest dividends to purchase newly issued shares. (3) From time to time, we purchase shares of our common stock or units from long-term incentive plan participants who elect to sell to us a sufficient number of vested RSAs or RSUs to meet minimum statutory tax withholding requirements. |
SAN ONOFRE NUCLEAR GENERATING S
SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) | 12 Months Ended |
Dec. 31, 2016 | |
Regulated Operations [Abstract] | |
San Onofre Nuclear Generating Station (SONGS) | 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, after an extended outage beginning in 2012, 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 Consolidated Statements of Operations. SONGS Steam Generator Replacement Project 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 generator. These issues with the steam generators ultimately resulted in Edison’s decision to permanently retire SONGS. The replacement steam generators were designed and provided by 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. SDG&E is participating in the arbitration as a claimant and respondent. The arbitration hearing concluded in April 2016 , and a decision could be reached in the first half of 2017 . We discuss these proceedings in Note 15. Settlement Agreement to Resolve the CPUC’s Order Instituting Investigation (OII) into the SONGS Outage (SONGS OII) In November 2012, in response to the outage, the CPUC issued the SONGS OII, which was intended to determine the ultimate recovery of the investment in SONGS and the costs incurred since the commencement of this outage. In November 2014, the CPUC issued a final decision approving an Amended and Restated Settlement Agreement (Amended Settlement Agreement) in the SONGS OII proceeding executed by SDG&E along with Edison, The Utility Reform Network (TURN), the CPUC Office of Ratepayer Advocates (ORA) and two other intervenors who joined an earlier settlement agreement. The Amended Settlement Agreement does not affect ongoing 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 addressed in the final decision) or proceedings addressing decommissioning activities and costs . The Amended Settlement Agreement provides for various disallowances, refunds and rate recoveries, including authorizing SDG&E to recover in rates its remaining investment in SONGS, including base plant and construction work in progress, but excluding its investment in the SGRP, 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 (discussed in Note 14) proceeding then in effect (collectively, SONGS rate of return or SONGS ROR) This has resulted in a SONGS ROR of 2.35 percent for the period from January 1, 2013 through December 31, 2016, which rate will remain in effect through 2017. 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. In April 2015, a petition for modification was filed with the CPUC by Alliance for Nuclear Responsibility (A4NR), an intervenor in the SONGS OII proceeding, asking the CPUC to set aside its decision approving the Amended Settlement Agreement and reopen the SONGS OII proceeding. In June 2015, TURN, a party to the Amended Settlement Agreement, filed a response supporting the A4NR petition. TURN does not question the merits of the Amended Settlement Agreement, but is concerned that certain allegations regarding Edison raised by A4NR have undermined the public’s confidence in the regulatory process. In August 2015, ORA, also a party to the Amended Settlement Agreement, filed a petition for modification with the CPUC, withdrawing its support for the Amended Settlement Agreement and asking the CPUC to reopen the SONGS OII proceeding. The ORA does not question the merits of the Amended Settlement Agreement, but is concerned with the CPUC’s approach toward disclosures concerning Edison ex parte communications with the CPUC. In May 2016, the CPUC issued a ruling reopening the record of the OII to address the issue of whether the Amended Settlement Agreement is reasonable and in the public interest. In accordance with the ruling, Edison and SDG&E filed separate reports with the CPUC in June 2016 on the Amended Settlement Agreement and the status of its implementation, and filed separate legal briefs in July 2016 asserting that the Amended Settlement Agreement is reasonable and in the public interest . In December 2016, the CPUC issued a procedural ruling directing parties to the SONGS OII to determine whether an agreement could be reached to modify the Amended Settlement Agreement previously approved by the CPUC to resolve allegations that unreported ex parte communications between Edison and the CPUC resulted in an unfair advantage at the time the settlement agreement was negotiated. The ruling directs the parties to consider various issues, including the division between ratepayers and shareholders of any future MHI arbitration award. If no agreement is reached by April 28, 2017, the CPUC will consider other options including entertaining additional testimony, hearings and briefs. There is no assurance that the Amended Settlement Agreement will not be renegotiated, modified or set aside as a result of these proceedings, which could result in a substantial reduction in our expected recovery and have a material adverse effect on Sempra Energy’s and SDG&E’s results of operations, financial condition and cash flows. Accounting and Financial Impacts Through December 31, 2016 , the cumulative after-tax loss from plant closure recorded by Sempra Energy and SDG&E is $125 million , including a reduction in the after-tax loss of $13 million recorded in the first quarter of 2015 based on the CPUC’s approval in March 2015 of SDG&E’s compliance filing and establishment of the SONGS settlement revenue requirement, and a reduction in the after-tax loss of $2 million based on a settlement with Nuclear Electric Insurance Limited in the fourth quarter of 2015, as we discuss below. In 2014, SDG&E recorded a $21 million after-tax increase to the loss, including $12 million based on a compliance filing regarding SDG&E’s annual revenue requirement and the timing of refunds to ratepayers. The remaining regulatory asset for the expected recovery of SONGS costs, consistent with the Amended Settlement Agreement, is $183 million ( $31 million current and $152 million long-term) at December 31, 2016 . The amortization period prescribed for the regulatory asset is 10 years, which commenced in January 2015 following the CPUC’s final decision approving the Amended Settlement Agreement in November 2014 . A decision in the MHI arbitration could be reached in the first half of 2017. Under the Amended Settlement Agreement, SDG&E’s 20 -percent share of any proceeds from the MHI arbitration, net of legal costs, must be equally divided between SDG&E shareholders and ratepayers. As we discuss above, there is no assurance that the Amended Settlement Agreement will not be modified as it pertains to the MHI arbitration proceedings by the ongoing CPUC OII proceeding. Accordingly, determination of the shareholder component of MHI arbitration proceeds, if any, may be suspended until resolution of the SONGS OII proceeding. Settlement with Nuclear Electric Insurance Limited (NEIL) As we discuss in Note 15, NEIL insures domestic and international nuclear utilities for the costs associated with interruptions, damages, decontaminations and related nuclear risks. In October 2015, the SONGS co-owners (Edison, SDG&E and the City of Riverside) reached an agreement with NEIL to resolve all of SONGS’ insurance claims arising out of the failures of the replacement steam generators for a total payment by NEIL of $400 million , SDG&E’s share of which was $80 million . Pursuant to the terms of the SONGS OII Amended Settlement Agreement, after reimbursement of legal fees and a 5 -percent allocation to shareholders, the net proceeds of $75 million were allocated to ratepayers through the Energy Resource Recovery Account . 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 generator. 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 and notice of permanent removal of fuel from the reactor vessels, which were provided by Edison in 2013. Within two years after the cessation of operations, the licensee (Edison) must submit a post-shutdown decommissioning activities report, an irradiated fuel management plan and a site-specific decommissioning cost estimate. Edison submitted each of these items to the NRC in September 2014. In December 2016, Edison announced that, following a 10-month competitive bid process, it had contracted with a joint venture of AECOM and EnergySolutions (known as SONGS Decommissioning Solutions) as the general contractor to complete the dismantlement of SONGS. The majority of the dismantlement work is expected to take 10 years. SDG&E is responsible for 20 percent of the total contract price. 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. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work for Unit 1 will be done once Units 2 and 3 are dismantled. At December 31, 2016 , the fair value of SDG&E’s NDT assets was $1.0 billion . Except for the use of funds for the planning of decommissioning activities or NDT administrative costs, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs for Units 2 and 3. In April 2016, the CPUC adopted a decision approving a total decommissioning cost estimate for SONGS Units 2 and 3 of $4.4 billion (in 2014 dollars), of which SDG&E’s share is $899 million. The decision also approves an annual advice letter request process for SDG&E to request trust fund disbursements for decommissioning costs based on a forecast for 2016 and thereafter. Disbursements from the trust will then be made up to this annual forecast amount as decommissioning expenses are incurred. To the extent actual expenses are consistent with forecasts, this arrangement will generally result in the utilization of nuclear decommissioning trust funds to support decommissioning, reducing the need to temporarily fund such costs with working capital. Certain spent fuel management costs, described below, continue to be temporarily funded with working capital. All disbursements will be subject to future refund until a reasonableness review of the actual decommissioning costs is conducted, which would be no less frequently than every three years . SDG&E has received authorization from the CPUC to access trust funds for SONGS decommissioning costs of up to $218 million for 2013 through 2016. The $218 million includes $37 million related to spent fuel management costs. In April 2016, Edison, acting for itself and on behalf of SDG&E, entered into a settlement agreement with the U.S. Department of Energy (DOE) to resolve the claims against the DOE related to the spent fuel management costs incurred through 2013. The settlement agreement sets forth an administrative procedure for the submission of claims for costs incurred from 2014 through 2016, which provides for arbitration if the settlement process is unsuccessful. Edison, acting for itself and SDG&E, submitted claims for spent fuel management costs incurred during 2014 and 2015 in September 2016. Claims for spent fuel management costs incurred during 2016 must be submitted by September 30, 2017. SDG&E is not guaranteed recovery of its claims for 2014-2016; however, SDG&E anticipates that the claims for costs incurred in 2014 and 2015 will be resolved during 2017, and the claims for costs incurred in 2016 will be resolved during 2018. In December 2016, the IRS and the U.S. Department of the Treasury issued proposed regulations that clarify the definition of “nuclear decommissioning costs,” which are costs that may be paid for or reimbursed from a qualified fund. The proposed regulations state that costs related to the construction and maintenance of independent spent fuel management installations are included in the definition of “nuclear decommissioning costs.” The proposed regulations will be effective prospectively once they are finalized; however, the IRS has stated that it will not challenge taxpayer positions consistent with the proposed regulations for taxable years ending on or after the date the proposed regulations were issued. SDG&E is working with outside counsel to clarify with the IRS some of the provisions in the proposed regulations so as to confirm that the proposed regulations will allow SDG&E to access the trust funds for reimbursement or payment of the spent fuel management costs that were or will be incurred in 2016 and subsequent years. In December 2016, SDG&E filed an advice letter with the CPUC requesting authority to withdraw up to $84 million for 2017 SONGS Units 2 and 3 costs (forecasted). The CPUC approved SDG&E’s request in February 2017, which allows SDG&E to withdraw from the funds as decommissioning costs are incurred. Nuclear Decommissioning Trusts The amounts collected in rates for SONGS’ decommissioning are invested in the NDT, which is comprised of externally managed trust funds. Amounts held by the trusts are invested in accordance with CPUC regulations. These trusts are shown on the Sempra Energy and SDG&E 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 NDT. We provide additional fair value disclosures for the NDT in Note 10. NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At December 31, 2016: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 52 $ — $ — $ 52 Municipal bonds (2) 203 4 (1 ) 206 Other securities (3) 141 2 (2 ) 141 Total debt securities 396 6 (3 ) 399 Equity securities 143 366 (1 ) 508 Cash and cash equivalents 119 — — 119 Total $ 658 $ 372 $ (4 ) $ 1,026 At December 31, 2015: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 89 $ 2 $ — $ 91 Municipal bonds 148 8 — 156 Other securities 194 1 (13 ) 182 Total debt securities 431 11 (13 ) 429 Equity securities 214 412 (7 ) 619 Cash and cash equivalents 15 — — 15 Total $ 660 $ 423 $ (20 ) $ 1,063 (1) Maturity dates are 2017-2047. (2) Maturity dates are 2017-2115. (3) Maturity dates are 2017-2111. The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales. SALES OF SECURITIES (Dollars in millions) Years ended December 31, 2016 2015 2014 Proceeds from sales(1) $ 1,134 $ 577 $ 601 Gross realized gains 111 29 11 Gross realized losses (29 ) (15 ) (11 ) (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 Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. In 2016, sale and purchase activities in our NDT increased significantly compared to prior years as a result of a change to our asset allocation to reduce our equity volatility, lower our duration risk, and increase exposure to municipal bonds and intermediate credit. This shift in our asset mix is intended to reduce the overall risk profile of the NDT, as we are in the decommissioning stage at the plant. Asset Retirement Obligation and Spent Nuclear Fuel SDG&E’s asset retirement obligation related to decommissioning costs for the SONGS units was $637 million at December 31, 2016 . That amount includes the cost to decommission Units 2 and 3, and the remaining cost to complete the decommissioning of Unit 1, which is substantially complete. The asset retirement obligation at December 31, 2016 is based on a CPUC-approved cost study prepared in 2014 that reflects the acceleration of the start of decommissioning Units 2 and 3 as a result of the early closure of the plant. An updated cost study for Unit 1 is pending approval by the CPUC. SDG&E’s share of total decommissioning costs in 2016 dollars is approximately $989 million . Spent nuclear fuel from SONGS is stored on-site in an Independent Spent Fuel Storage Installation (ISFSI) licensed by the NRC or temporarily in spent fuel pools. The ISFSI will be decommissioned after a spent fuel storage facility becomes available and the DOE removes the spent fuel from the site. Until then, SONGS owners are responsible for interim storage of spent nuclear fuel at SONGS. REGULATORY MATTERS REGULATORY BALANCING ACCOUNTS SDG&E and SoCalGas maintain regulatory balancing accounts. Over- and undercollected regulatory balancing accounts reflect the difference between customer billings and recorded or CPUC-authorized costs, including commodity costs. Amounts in the balancing accounts are recoverable (receivable) or refundable (payable) in future rates, subject to CPUC approval. Balancing account treatment eliminates the impact on earnings from variances in the covered costs from authorized amounts. Absent balancing account treatment, variations in the cost of fuel supply and certain operating and maintenance costs from amounts approved by the CPUC would increase volatility in utility earnings. The following table summarizes our regulatory balancing accounts at December 31. SUMMARY OF REGULATORY BALANCING ACCOUNTS AT DECEMBER 31 (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas 2016 2015 2016 2015 2016 2015 Current: Overcollected $ (804 ) $ (789 ) $ (301 ) $ (345 ) $ (503 ) $ (444 ) Undercollected 941 1,062 560 652 381 410 Net current receivable (payable)(1) 137 273 259 307 (122 ) (34 ) Noncurrent: Undercollected(2) 85 215 — — 85 215 Net noncurrent receivable (payable)(1) 85 215 — — 85 215 Total net receivable (payable) $ 222 $ 488 $ 259 $ 307 $ (37 ) $ 181 (1) At both December 31, 2016 and 2015, the net receivable at SDG&E and the net payable at SoCalGas are shown separately on Sempra Energy’s Consolidated Balance Sheets. (2) Long-term undercollected balance is included in Regulatory Assets (long-term) on Sempra Energy’s Consolidated Balance Sheets and in Other Regulatory Assets (long-term) on SoCalGas’ Consolidated Balance Sheets. REGULATORY ASSETS AND LIABILITIES We show the details of regulatory assets and liabilities in the following table, and discuss each of them separately below. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) December 31, 2016 2015 SDG&E: Fixed-price contracts and other derivatives $ 141 $ 99 Costs related to SONGS plant closure(1) 183 257 Costs related to wildfire litigation 353 362 Deferred taxes recoverable in rates 1,014 914 Pension and other postretirement benefit plan obligations 210 180 Removal obligations(2) (1,725 ) (1,629 ) Unamortized loss on reacquired debt 12 12 Environmental costs 48 16 Legacy meters(1) 16 32 Sunrise Powerlink fire mitigation 118 117 Other (2 ) 9 Total SDG&E 368 369 SoCalGas: Pension and other postretirement benefit plan obligations 563 629 Employee benefit costs 45 51 Removal obligations(2) (972 ) (1,145 ) Deferred taxes recoverable in rates 417 330 Unamortized loss on reacquired debt 10 11 Environmental costs 22 22 Workers’ compensation 10 13 Other 8 — Total SoCalGas 103 (89 ) Other Sempra Energy: Sempra LNG & Midstream — (7 ) Sempra Mexico 71 33 Total Other Sempra Energy 71 26 Total Sempra Energy Consolidated $ 542 $ 306 (1) Regulatory assets earning a rate of return. (2) Represents cumulative amounts collected in rates for future nonlegal asset removal costs. NET REGULATORY ASSETS (LIABILITIES) AS PRESENTED ON THE CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2016 2015 Sempra Energy Consolidated SDG&E SoCalGas Sempra SDG&E SoCalGas Current regulatory assets(1) $ 89 $ 81 $ 8 $ 115 $ 107 $ 7 Noncurrent regulatory assets(2) 3,329 2,012 1,246 3,058 1,891 1,120 Current regulatory liabilities(3) — — — (2 ) — — Noncurrent regulatory liabilities(4) (2,876 ) (1,725 ) (1,151 ) (2,865 ) (1,629 ) (1,216 ) Total $ 542 $ 368 $ 103 $ 306 $ 369 $ (89 ) (1) At Sempra Energy Consolidated, included in Other Current Assets. (2) Excludes long-term undercollected balancing accounts at December 31, 2016 and 2015 of $85 million and $215 million , respectively, recorded at Sempra Energy Consolidated as Regulatory Assets (long-term) and at SoCalGas as Other Regulatory Assets (long-term). (3) Included in Other Current Liabilities. (4) At December 31, 2016 and 2015 , $179 million and $72 million , respectively, at Sempra Energy Consolidated and $179 million and $71 million , respectively, at SoCalGas are included in Deferred Credits and Other. In the tables above: ▪ Regulatory assets arising from fixed-price contracts and other derivatives are offset by corresponding liabilities arising from purchased power and natural gas commodity and transportation contracts. The regulatory asset is increased/decreased based on changes in the fair market value of the contracts. It is also reduced as payments are made for commodities and services under these contracts. ▪ Regulatory assets arising from the SONGS plant closure are associated with SDG&E’s investment in SONGS as of the plant closure date and the cost of operations since Units 2 and 3 were taken offline, as we discuss further in Note 13. ▪ Regulatory assets recorded to the Wildfire Expense Memorandum Account (WEMA) arising from CPUC-related costs for wildfire litigation are costs in excess of liability insurance coverage and amounts recovered from third parties, and are subject to CPUC review for reasonableness and assessment of SDG&E’s prudence surrounding the settlement of claims in connection with the 2007 wildfires. We discuss the 2007 wildfires in Note 15 in “SDG&E – 2007 Wildfire Litigation.” ▪ Deferred taxes recoverable in rates are based on current regulatory ratemaking and income tax laws. SDG&E, SoCalGas and Sempra Mexico expect to recover net regulatory assets related to deferred income taxes over the lives of the assets that give rise to the accumulated deferred income tax liabilities. Regulatory assets include certain income tax benefits associated with flow-through repair allowance deductions, which we discuss further below. ▪ Regulatory assets/liabilities related to pension and other postretirement benefit plan obligations are offset by corresponding liabilities/assets and are being recovered in rates as the plans are funded. ▪ Regulatory assets related to unamortized losses on reacquired debt are recovered over the remaining amortization periods of the losses on reacquired debt. These periods range from 1 year to 11 years for SDG&E and from 5 years to 9 years for SoCalGas. ▪ Regulatory assets related to environmental costs represent the portion of our environmental liability recognized at the end of the period in excess of the amount that has been recovered through rates charged to customers. We expect this amount to be recovered in future rates as expenditures are made. We discuss environmental issues further in Note 15. ▪ The regulatory asset related to the legacy meters removed from service and replaced under the Smart Meter Program is their undepreciated value. SDG&E is recovering this asset over a remaining 1-year period in rate base. ▪ The regulatory asset related to Sunrise Powerlink fire mitigation is offset by a corresponding liability for the funding of a trust to cover the mitigation costs. SDG&E expects to recover the regulatory asset in rates as the trust is funded over a remaining 53-year period. We discuss the trust further in Note 15. ▪ The regulatory asset related to workers’ compensation represents accrued costs for future claims that will be recovered from customers in future rates as expenditures are made. ▪ Amortization expense on regulatory assets for the years ended December 31, 2016 , 2015 and 2014 was $65 million , $62 million and $20 million , respectively, at Sempra Energy Consolidated, $63 million , $60 million and $18 million , respectively, at SDG&E, and $2 million in each year at SoCalGas. CALIFORNIA UTILITIES MATTERS CPUC General Rate Case (GRC) The CPUC uses a general rate case proceeding to set sufficient rates 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 November 2014, the California Utilities filed their 2016 General Rate Case (2016 GRC) applications to establish their authorized 2016 revenue requirements and the ratemaking mechanisms by which those requirements would change on an annual basis until the next general rate case proceeding. In June 2016, the CPUC issued a final decision in the 2016 GRC. The final decision (2016 GRC FD) adopted a 2016 revenue requirement of $2.204 billion for SoCalGas and $1.791 billion for SDG&E. The 2016 GRC FD also required certain refunds to be paid to customers and establishes a two-way income tax expense memorandum account, each discussed below. The 2016 GRC FD also adopted subsequent annual escalation of the adopted revenue requirements by 3.5 percent for years 2017 and 2018 and continuation of the Z-Factor mechanism for qualifying cost recovery. The Z-Factor mechanism allows the California Utilities to seek cost recovery of significant cost increases, under certain unforeseen circumstances, incurred between GRC filings, subject to a $5 million deductible per event. Also, the 2016 GRC FD denied a separate request for a four-year GRC period and instead adopted a three-year GRC period (through 2018). The 2016 GRC FD is effective retroactive to January 1, 2016, and the California Utilities recorded the retroactive impacts in the second quarter of 2016. The adopted revenue requirements associated with the seven-month period through July 2016 will be recovered in rates over a 17-month period, beginning August 2016 through December 2017. At December 31, 2016, balancing accounts related to the adoption of the revenue requirements were $20 million and $47 million , at SDG&E and SoCalGas, respectively. The 2016 GRC FD results in certain accounting impacts associated with flow-through income tax repairs deductions. In general, the 2016 GRC FD considers that the income tax benefits obtained from income tax repairs deductions exceeded amounts forecasted by the California Utilities from 2011 to 2015, and that they were attributed to shareholders during that time. The 2016 GRC FD reallocates the economic benefit of this tax deduction forecasting difference to ratepayers. Accordingly, revenues corresponding to income tax repair deductions that exceeded forecasted amounts relating to 2015, which have been tracked in memorandum accounts, are ordered to be refunded to customers. The 2015 estimated amounts in the memorandum accounts totaled $72 million for SoCalGas and $37 million for SDG&E. Pursuant to this refund requirement, SoCalGas and SDG&E recorded regulatory liabilities for these amounts, resulting in after-tax charges to earnings of $43 million and $22 million , respectively, in the second quarter of 2016 (summarized below). In addition, the 2016 GRC FD reduced rate base by $38 million at SoCalGas and $55 million at SDG&E. The corresponding reductions in the 2016 revenue requirement will be $5 million at SoCalGas and $7 million at SDG&E (which reductions are included in the adopted 2016 revenue requirement amounts described above). The rate base reductions reallocate to ratepayers the economic benefits associated with tax repair deductions that were previously provided to the shareholders for the period of 2012-2014 for SoCalGas and 2011-2014 for SDG&E. The rate base reductions do not result in an impairment of any of our reported assets, but will impact our revenues and earnings prospectively. The 2016 GRC FD also requires us to notify the CPUC if the 2012-2015 repairs deductions estimated in this GRC are different from the actual repairs deductions for SoCalGas and SDG&E. SoCalGas and SDG&E recorded regulatory liabilities of $11 million and $15 million , respectively, related to 2012-2014, resulting in after-tax charges to earnings for these differences of $6 million and $9 million in the second quarter of 2016 for SoCalGas and SDG&E, respectively (summarized below). In the third quarter of 2016, SoCalGas and SDG&E completed their 2015 calendar year tax returns, and final tax deductions associated with tax repair benefits to be refunded to ratepayers associated with the 2015 memo account were lower than the amounts estimated in 2015. Accordingly, the amounts to be refunded decreased by $19 million for SoCalGas and $5 million for SDG&E. In October 2016, SoCalGas and SDG&E filed a regulatory account update with the CPUC to reflect their final total 2015 repair allowance deductions of $53 million and $32 million , respectively. After recording the related income tax effect and corresponding regulatory revenue adjustments for income tax purposes, there was no net impact to earnings from the adjustments to the 2015 tax repairs deductions recorded in the third quarter of 2016. Accordingly, the earnings impacts in the table below are also the earnings impacts for the year ended December 31, 2016 . Following is a summary of immediate earning |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2016 | |
Regulated Operations [Abstract] | |
Regulatory Matters | 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, after an extended outage beginning in 2012, 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 Consolidated Statements of Operations. SONGS Steam Generator Replacement Project 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 generator. These issues with the steam generators ultimately resulted in Edison’s decision to permanently retire SONGS. The replacement steam generators were designed and provided by 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. SDG&E is participating in the arbitration as a claimant and respondent. The arbitration hearing concluded in April 2016 , and a decision could be reached in the first half of 2017 . We discuss these proceedings in Note 15. Settlement Agreement to Resolve the CPUC’s Order Instituting Investigation (OII) into the SONGS Outage (SONGS OII) In November 2012, in response to the outage, the CPUC issued the SONGS OII, which was intended to determine the ultimate recovery of the investment in SONGS and the costs incurred since the commencement of this outage. In November 2014, the CPUC issued a final decision approving an Amended and Restated Settlement Agreement (Amended Settlement Agreement) in the SONGS OII proceeding executed by SDG&E along with Edison, The Utility Reform Network (TURN), the CPUC Office of Ratepayer Advocates (ORA) and two other intervenors who joined an earlier settlement agreement. The Amended Settlement Agreement does not affect ongoing 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 addressed in the final decision) or proceedings addressing decommissioning activities and costs . The Amended Settlement Agreement provides for various disallowances, refunds and rate recoveries, including authorizing SDG&E to recover in rates its remaining investment in SONGS, including base plant and construction work in progress, but excluding its investment in the SGRP, 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 (discussed in Note 14) proceeding then in effect (collectively, SONGS rate of return or SONGS ROR) This has resulted in a SONGS ROR of 2.35 percent for the period from January 1, 2013 through December 31, 2016, which rate will remain in effect through 2017. 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. In April 2015, a petition for modification was filed with the CPUC by Alliance for Nuclear Responsibility (A4NR), an intervenor in the SONGS OII proceeding, asking the CPUC to set aside its decision approving the Amended Settlement Agreement and reopen the SONGS OII proceeding. In June 2015, TURN, a party to the Amended Settlement Agreement, filed a response supporting the A4NR petition. TURN does not question the merits of the Amended Settlement Agreement, but is concerned that certain allegations regarding Edison raised by A4NR have undermined the public’s confidence in the regulatory process. In August 2015, ORA, also a party to the Amended Settlement Agreement, filed a petition for modification with the CPUC, withdrawing its support for the Amended Settlement Agreement and asking the CPUC to reopen the SONGS OII proceeding. The ORA does not question the merits of the Amended Settlement Agreement, but is concerned with the CPUC’s approach toward disclosures concerning Edison ex parte communications with the CPUC. In May 2016, the CPUC issued a ruling reopening the record of the OII to address the issue of whether the Amended Settlement Agreement is reasonable and in the public interest. In accordance with the ruling, Edison and SDG&E filed separate reports with the CPUC in June 2016 on the Amended Settlement Agreement and the status of its implementation, and filed separate legal briefs in July 2016 asserting that the Amended Settlement Agreement is reasonable and in the public interest . In December 2016, the CPUC issued a procedural ruling directing parties to the SONGS OII to determine whether an agreement could be reached to modify the Amended Settlement Agreement previously approved by the CPUC to resolve allegations that unreported ex parte communications between Edison and the CPUC resulted in an unfair advantage at the time the settlement agreement was negotiated. The ruling directs the parties to consider various issues, including the division between ratepayers and shareholders of any future MHI arbitration award. If no agreement is reached by April 28, 2017, the CPUC will consider other options including entertaining additional testimony, hearings and briefs. There is no assurance that the Amended Settlement Agreement will not be renegotiated, modified or set aside as a result of these proceedings, which could result in a substantial reduction in our expected recovery and have a material adverse effect on Sempra Energy’s and SDG&E’s results of operations, financial condition and cash flows. Accounting and Financial Impacts Through December 31, 2016 , the cumulative after-tax loss from plant closure recorded by Sempra Energy and SDG&E is $125 million , including a reduction in the after-tax loss of $13 million recorded in the first quarter of 2015 based on the CPUC’s approval in March 2015 of SDG&E’s compliance filing and establishment of the SONGS settlement revenue requirement, and a reduction in the after-tax loss of $2 million based on a settlement with Nuclear Electric Insurance Limited in the fourth quarter of 2015, as we discuss below. In 2014, SDG&E recorded a $21 million after-tax increase to the loss, including $12 million based on a compliance filing regarding SDG&E’s annual revenue requirement and the timing of refunds to ratepayers. The remaining regulatory asset for the expected recovery of SONGS costs, consistent with the Amended Settlement Agreement, is $183 million ( $31 million current and $152 million long-term) at December 31, 2016 . The amortization period prescribed for the regulatory asset is 10 years, which commenced in January 2015 following the CPUC’s final decision approving the Amended Settlement Agreement in November 2014 . A decision in the MHI arbitration could be reached in the first half of 2017. Under the Amended Settlement Agreement, SDG&E’s 20 -percent share of any proceeds from the MHI arbitration, net of legal costs, must be equally divided between SDG&E shareholders and ratepayers. As we discuss above, there is no assurance that the Amended Settlement Agreement will not be modified as it pertains to the MHI arbitration proceedings by the ongoing CPUC OII proceeding. Accordingly, determination of the shareholder component of MHI arbitration proceeds, if any, may be suspended until resolution of the SONGS OII proceeding. Settlement with Nuclear Electric Insurance Limited (NEIL) As we discuss in Note 15, NEIL insures domestic and international nuclear utilities for the costs associated with interruptions, damages, decontaminations and related nuclear risks. In October 2015, the SONGS co-owners (Edison, SDG&E and the City of Riverside) reached an agreement with NEIL to resolve all of SONGS’ insurance claims arising out of the failures of the replacement steam generators for a total payment by NEIL of $400 million , SDG&E’s share of which was $80 million . Pursuant to the terms of the SONGS OII Amended Settlement Agreement, after reimbursement of legal fees and a 5 -percent allocation to shareholders, the net proceeds of $75 million were allocated to ratepayers through the Energy Resource Recovery Account . 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 generator. 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 and notice of permanent removal of fuel from the reactor vessels, which were provided by Edison in 2013. Within two years after the cessation of operations, the licensee (Edison) must submit a post-shutdown decommissioning activities report, an irradiated fuel management plan and a site-specific decommissioning cost estimate. Edison submitted each of these items to the NRC in September 2014. In December 2016, Edison announced that, following a 10-month competitive bid process, it had contracted with a joint venture of AECOM and EnergySolutions (known as SONGS Decommissioning Solutions) as the general contractor to complete the dismantlement of SONGS. The majority of the dismantlement work is expected to take 10 years. SDG&E is responsible for 20 percent of the total contract price. 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. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work for Unit 1 will be done once Units 2 and 3 are dismantled. At December 31, 2016 , the fair value of SDG&E’s NDT assets was $1.0 billion . Except for the use of funds for the planning of decommissioning activities or NDT administrative costs, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs for Units 2 and 3. In April 2016, the CPUC adopted a decision approving a total decommissioning cost estimate for SONGS Units 2 and 3 of $4.4 billion (in 2014 dollars), of which SDG&E’s share is $899 million. The decision also approves an annual advice letter request process for SDG&E to request trust fund disbursements for decommissioning costs based on a forecast for 2016 and thereafter. Disbursements from the trust will then be made up to this annual forecast amount as decommissioning expenses are incurred. To the extent actual expenses are consistent with forecasts, this arrangement will generally result in the utilization of nuclear decommissioning trust funds to support decommissioning, reducing the need to temporarily fund such costs with working capital. Certain spent fuel management costs, described below, continue to be temporarily funded with working capital. All disbursements will be subject to future refund until a reasonableness review of the actual decommissioning costs is conducted, which would be no less frequently than every three years . SDG&E has received authorization from the CPUC to access trust funds for SONGS decommissioning costs of up to $218 million for 2013 through 2016. The $218 million includes $37 million related to spent fuel management costs. In April 2016, Edison, acting for itself and on behalf of SDG&E, entered into a settlement agreement with the U.S. Department of Energy (DOE) to resolve the claims against the DOE related to the spent fuel management costs incurred through 2013. The settlement agreement sets forth an administrative procedure for the submission of claims for costs incurred from 2014 through 2016, which provides for arbitration if the settlement process is unsuccessful. Edison, acting for itself and SDG&E, submitted claims for spent fuel management costs incurred during 2014 and 2015 in September 2016. Claims for spent fuel management costs incurred during 2016 must be submitted by September 30, 2017. SDG&E is not guaranteed recovery of its claims for 2014-2016; however, SDG&E anticipates that the claims for costs incurred in 2014 and 2015 will be resolved during 2017, and the claims for costs incurred in 2016 will be resolved during 2018. In December 2016, the IRS and the U.S. Department of the Treasury issued proposed regulations that clarify the definition of “nuclear decommissioning costs,” which are costs that may be paid for or reimbursed from a qualified fund. The proposed regulations state that costs related to the construction and maintenance of independent spent fuel management installations are included in the definition of “nuclear decommissioning costs.” The proposed regulations will be effective prospectively once they are finalized; however, the IRS has stated that it will not challenge taxpayer positions consistent with the proposed regulations for taxable years ending on or after the date the proposed regulations were issued. SDG&E is working with outside counsel to clarify with the IRS some of the provisions in the proposed regulations so as to confirm that the proposed regulations will allow SDG&E to access the trust funds for reimbursement or payment of the spent fuel management costs that were or will be incurred in 2016 and subsequent years. In December 2016, SDG&E filed an advice letter with the CPUC requesting authority to withdraw up to $84 million for 2017 SONGS Units 2 and 3 costs (forecasted). The CPUC approved SDG&E’s request in February 2017, which allows SDG&E to withdraw from the funds as decommissioning costs are incurred. Nuclear Decommissioning Trusts The amounts collected in rates for SONGS’ decommissioning are invested in the NDT, which is comprised of externally managed trust funds. Amounts held by the trusts are invested in accordance with CPUC regulations. These trusts are shown on the Sempra Energy and SDG&E 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 NDT. We provide additional fair value disclosures for the NDT in Note 10. NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At December 31, 2016: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 52 $ — $ — $ 52 Municipal bonds (2) 203 4 (1 ) 206 Other securities (3) 141 2 (2 ) 141 Total debt securities 396 6 (3 ) 399 Equity securities 143 366 (1 ) 508 Cash and cash equivalents 119 — — 119 Total $ 658 $ 372 $ (4 ) $ 1,026 At December 31, 2015: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 89 $ 2 $ — $ 91 Municipal bonds 148 8 — 156 Other securities 194 1 (13 ) 182 Total debt securities 431 11 (13 ) 429 Equity securities 214 412 (7 ) 619 Cash and cash equivalents 15 — — 15 Total $ 660 $ 423 $ (20 ) $ 1,063 (1) Maturity dates are 2017-2047. (2) Maturity dates are 2017-2115. (3) Maturity dates are 2017-2111. The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales. SALES OF SECURITIES (Dollars in millions) Years ended December 31, 2016 2015 2014 Proceeds from sales(1) $ 1,134 $ 577 $ 601 Gross realized gains 111 29 11 Gross realized losses (29 ) (15 ) (11 ) (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 Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. In 2016, sale and purchase activities in our NDT increased significantly compared to prior years as a result of a change to our asset allocation to reduce our equity volatility, lower our duration risk, and increase exposure to municipal bonds and intermediate credit. This shift in our asset mix is intended to reduce the overall risk profile of the NDT, as we are in the decommissioning stage at the plant. Asset Retirement Obligation and Spent Nuclear Fuel SDG&E’s asset retirement obligation related to decommissioning costs for the SONGS units was $637 million at December 31, 2016 . That amount includes the cost to decommission Units 2 and 3, and the remaining cost to complete the decommissioning of Unit 1, which is substantially complete. The asset retirement obligation at December 31, 2016 is based on a CPUC-approved cost study prepared in 2014 that reflects the acceleration of the start of decommissioning Units 2 and 3 as a result of the early closure of the plant. An updated cost study for Unit 1 is pending approval by the CPUC. SDG&E’s share of total decommissioning costs in 2016 dollars is approximately $989 million . Spent nuclear fuel from SONGS is stored on-site in an Independent Spent Fuel Storage Installation (ISFSI) licensed by the NRC or temporarily in spent fuel pools. The ISFSI will be decommissioned after a spent fuel storage facility becomes available and the DOE removes the spent fuel from the site. Until then, SONGS owners are responsible for interim storage of spent nuclear fuel at SONGS. REGULATORY MATTERS REGULATORY BALANCING ACCOUNTS SDG&E and SoCalGas maintain regulatory balancing accounts. Over- and undercollected regulatory balancing accounts reflect the difference between customer billings and recorded or CPUC-authorized costs, including commodity costs. Amounts in the balancing accounts are recoverable (receivable) or refundable (payable) in future rates, subject to CPUC approval. Balancing account treatment eliminates the impact on earnings from variances in the covered costs from authorized amounts. Absent balancing account treatment, variations in the cost of fuel supply and certain operating and maintenance costs from amounts approved by the CPUC would increase volatility in utility earnings. The following table summarizes our regulatory balancing accounts at December 31. SUMMARY OF REGULATORY BALANCING ACCOUNTS AT DECEMBER 31 (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas 2016 2015 2016 2015 2016 2015 Current: Overcollected $ (804 ) $ (789 ) $ (301 ) $ (345 ) $ (503 ) $ (444 ) Undercollected 941 1,062 560 652 381 410 Net current receivable (payable)(1) 137 273 259 307 (122 ) (34 ) Noncurrent: Undercollected(2) 85 215 — — 85 215 Net noncurrent receivable (payable)(1) 85 215 — — 85 215 Total net receivable (payable) $ 222 $ 488 $ 259 $ 307 $ (37 ) $ 181 (1) At both December 31, 2016 and 2015, the net receivable at SDG&E and the net payable at SoCalGas are shown separately on Sempra Energy’s Consolidated Balance Sheets. (2) Long-term undercollected balance is included in Regulatory Assets (long-term) on Sempra Energy’s Consolidated Balance Sheets and in Other Regulatory Assets (long-term) on SoCalGas’ Consolidated Balance Sheets. REGULATORY ASSETS AND LIABILITIES We show the details of regulatory assets and liabilities in the following table, and discuss each of them separately below. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) December 31, 2016 2015 SDG&E: Fixed-price contracts and other derivatives $ 141 $ 99 Costs related to SONGS plant closure(1) 183 257 Costs related to wildfire litigation 353 362 Deferred taxes recoverable in rates 1,014 914 Pension and other postretirement benefit plan obligations 210 180 Removal obligations(2) (1,725 ) (1,629 ) Unamortized loss on reacquired debt 12 12 Environmental costs 48 16 Legacy meters(1) 16 32 Sunrise Powerlink fire mitigation 118 117 Other (2 ) 9 Total SDG&E 368 369 SoCalGas: Pension and other postretirement benefit plan obligations 563 629 Employee benefit costs 45 51 Removal obligations(2) (972 ) (1,145 ) Deferred taxes recoverable in rates 417 330 Unamortized loss on reacquired debt 10 11 Environmental costs 22 22 Workers’ compensation 10 13 Other 8 — Total SoCalGas 103 (89 ) Other Sempra Energy: Sempra LNG & Midstream — (7 ) Sempra Mexico 71 33 Total Other Sempra Energy 71 26 Total Sempra Energy Consolidated $ 542 $ 306 (1) Regulatory assets earning a rate of return. (2) Represents cumulative amounts collected in rates for future nonlegal asset removal costs. NET REGULATORY ASSETS (LIABILITIES) AS PRESENTED ON THE CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2016 2015 Sempra Energy Consolidated SDG&E SoCalGas Sempra SDG&E SoCalGas Current regulatory assets(1) $ 89 $ 81 $ 8 $ 115 $ 107 $ 7 Noncurrent regulatory assets(2) 3,329 2,012 1,246 3,058 1,891 1,120 Current regulatory liabilities(3) — — — (2 ) — — Noncurrent regulatory liabilities(4) (2,876 ) (1,725 ) (1,151 ) (2,865 ) (1,629 ) (1,216 ) Total $ 542 $ 368 $ 103 $ 306 $ 369 $ (89 ) (1) At Sempra Energy Consolidated, included in Other Current Assets. (2) Excludes long-term undercollected balancing accounts at December 31, 2016 and 2015 of $85 million and $215 million , respectively, recorded at Sempra Energy Consolidated as Regulatory Assets (long-term) and at SoCalGas as Other Regulatory Assets (long-term). (3) Included in Other Current Liabilities. (4) At December 31, 2016 and 2015 , $179 million and $72 million , respectively, at Sempra Energy Consolidated and $179 million and $71 million , respectively, at SoCalGas are included in Deferred Credits and Other. In the tables above: ▪ Regulatory assets arising from fixed-price contracts and other derivatives are offset by corresponding liabilities arising from purchased power and natural gas commodity and transportation contracts. The regulatory asset is increased/decreased based on changes in the fair market value of the contracts. It is also reduced as payments are made for commodities and services under these contracts. ▪ Regulatory assets arising from the SONGS plant closure are associated with SDG&E’s investment in SONGS as of the plant closure date and the cost of operations since Units 2 and 3 were taken offline, as we discuss further in Note 13. ▪ Regulatory assets recorded to the Wildfire Expense Memorandum Account (WEMA) arising from CPUC-related costs for wildfire litigation are costs in excess of liability insurance coverage and amounts recovered from third parties, and are subject to CPUC review for reasonableness and assessment of SDG&E’s prudence surrounding the settlement of claims in connection with the 2007 wildfires. We discuss the 2007 wildfires in Note 15 in “SDG&E – 2007 Wildfire Litigation.” ▪ Deferred taxes recoverable in rates are based on current regulatory ratemaking and income tax laws. SDG&E, SoCalGas and Sempra Mexico expect to recover net regulatory assets related to deferred income taxes over the lives of the assets that give rise to the accumulated deferred income tax liabilities. Regulatory assets include certain income tax benefits associated with flow-through repair allowance deductions, which we discuss further below. ▪ Regulatory assets/liabilities related to pension and other postretirement benefit plan obligations are offset by corresponding liabilities/assets and are being recovered in rates as the plans are funded. ▪ Regulatory assets related to unamortized losses on reacquired debt are recovered over the remaining amortization periods of the losses on reacquired debt. These periods range from 1 year to 11 years for SDG&E and from 5 years to 9 years for SoCalGas. ▪ Regulatory assets related to environmental costs represent the portion of our environmental liability recognized at the end of the period in excess of the amount that has been recovered through rates charged to customers. We expect this amount to be recovered in future rates as expenditures are made. We discuss environmental issues further in Note 15. ▪ The regulatory asset related to the legacy meters removed from service and replaced under the Smart Meter Program is their undepreciated value. SDG&E is recovering this asset over a remaining 1-year period in rate base. ▪ The regulatory asset related to Sunrise Powerlink fire mitigation is offset by a corresponding liability for the funding of a trust to cover the mitigation costs. SDG&E expects to recover the regulatory asset in rates as the trust is funded over a remaining 53-year period. We discuss the trust further in Note 15. ▪ The regulatory asset related to workers’ compensation represents accrued costs for future claims that will be recovered from customers in future rates as expenditures are made. ▪ Amortization expense on regulatory assets for the years ended December 31, 2016 , 2015 and 2014 was $65 million , $62 million and $20 million , respectively, at Sempra Energy Consolidated, $63 million , $60 million and $18 million , respectively, at SDG&E, and $2 million in each year at SoCalGas. CALIFORNIA UTILITIES MATTERS CPUC General Rate Case (GRC) The CPUC uses a general rate case proceeding to set sufficient rates 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 November 2014, the California Utilities filed their 2016 General Rate Case (2016 GRC) applications to establish their authorized 2016 revenue requirements and the ratemaking mechanisms by which those requirements would change on an annual basis until the next general rate case proceeding. In June 2016, the CPUC issued a final decision in the 2016 GRC. The final decision (2016 GRC FD) adopted a 2016 revenue requirement of $2.204 billion for SoCalGas and $1.791 billion for SDG&E. The 2016 GRC FD also required certain refunds to be paid to customers and establishes a two-way income tax expense memorandum account, each discussed below. The 2016 GRC FD also adopted subsequent annual escalation of the adopted revenue requirements by 3.5 percent for years 2017 and 2018 and continuation of the Z-Factor mechanism for qualifying cost recovery. The Z-Factor mechanism allows the California Utilities to seek cost recovery of significant cost increases, under certain unforeseen circumstances, incurred between GRC filings, subject to a $5 million deductible per event. Also, the 2016 GRC FD denied a separate request for a four-year GRC period and instead adopted a three-year GRC period (through 2018). The 2016 GRC FD is effective retroactive to January 1, 2016, and the California Utilities recorded the retroactive impacts in the second quarter of 2016. The adopted revenue requirements associated with the seven-month period through July 2016 will be recovered in rates over a 17-month period, beginning August 2016 through December 2017. At December 31, 2016, balancing accounts related to the adoption of the revenue requirements were $20 million and $47 million , at SDG&E and SoCalGas, respectively. The 2016 GRC FD results in certain accounting impacts associated with flow-through income tax repairs deductions. In general, the 2016 GRC FD considers that the income tax benefits obtained from income tax repairs deductions exceeded amounts forecasted by the California Utilities from 2011 to 2015, and that they were attributed to shareholders during that time. The 2016 GRC FD reallocates the economic benefit of this tax deduction forecasting difference to ratepayers. Accordingly, revenues corresponding to income tax repair deductions that exceeded forecasted amounts relating to 2015, which have been tracked in memorandum accounts, are ordered to be refunded to customers. The 2015 estimated amounts in the memorandum accounts totaled $72 million for SoCalGas and $37 million for SDG&E. Pursuant to this refund requirement, SoCalGas and SDG&E recorded regulatory liabilities for these amounts, resulting in after-tax charges to earnings of $43 million and $22 million , respectively, in the second quarter of 2016 (summarized below). In addition, the 2016 GRC FD reduced rate base by $38 million at SoCalGas and $55 million at SDG&E. The corresponding reductions in the 2016 revenue requirement will be $5 million at SoCalGas and $7 million at SDG&E (which reductions are included in the adopted 2016 revenue requirement amounts described above). The rate base reductions reallocate to ratepayers the economic benefits associated with tax repair deductions that were previously provided to the shareholders for the period of 2012-2014 for SoCalGas and 2011-2014 for SDG&E. The rate base reductions do not result in an impairment of any of our reported assets, but will impact our revenues and earnings prospectively. The 2016 GRC FD also requires us to notify the CPUC if the 2012-2015 repairs deductions estimated in this GRC are different from the actual repairs deductions for SoCalGas and SDG&E. SoCalGas and SDG&E recorded regulatory liabilities of $11 million and $15 million , respectively, related to 2012-2014, resulting in after-tax charges to earnings for these differences of $6 million and $9 million in the second quarter of 2016 for SoCalGas and SDG&E, respectively (summarized below). In the third quarter of 2016, SoCalGas and SDG&E completed their 2015 calendar year tax returns, and final tax deductions associated with tax repair benefits to be refunded to ratepayers associated with the 2015 memo account were lower than the amounts estimated in 2015. Accordingly, the amounts to be refunded decreased by $19 million for SoCalGas and $5 million for SDG&E. In October 2016, SoCalGas and SDG&E filed a regulatory account update with the CPUC to reflect their final total 2015 repair allowance deductions of $53 million and $32 million , respectively. After recording the related income tax effect and corresponding regulatory revenue adjustments for income tax purposes, there was no net impact to earnings from the adjustments to the 2015 tax repairs deductions recorded in the third quarter of 2016. Accordingly, the earnings impacts in the table below are also the earnings impacts for the year ended December 31, 2016 . Following is a summary of immediate earning |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 15. 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 December 31, 2016 , Sempra Energy’s accrued liabilities for legal proceedings, including associated legal fees and costs of litigation, on a consolidated basis, were $19 million . At December 31, 2016 , accrued liabilities for legal proceedings were $16 million for SDG&E and $1 million for SoCalGas. Amounts for Sempra Energy and SoCalGas include $1 million for matters related to the Aliso Canyon natural gas leak, which we discuss below. We discuss our policy regarding accrual of legal fees in Note 1. 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’ fiber optic cable came into contact with an SDG&E power line “causing an arc and starting the fire.” A September 2008 staff report issued by the CPUC’s Consumer Protection and Safety Division, now known as the Safety and Enforcement Division, reached substantially the same conclusions as the Cal Fire reports, but also contended that the power lines involved in the Witch and Rice fires and the lashing wire involved in the Guejito fire were not properly designed, constructed and maintained. SDG&E has resolved almost all of the lawsuits associated with the three fires. Only two appeals remain pending after judgment in the trial court. SDG&E does not expect additional plaintiffs to file lawsuits given the applicable statutes of limitation, but could receive additional settlement demands and damage estimates from the remaining plaintiffs until the cases are resolved. SDG&E establishes reserves for the wildfire litigation as information becomes available and amounts are estimable. SDG&E has concluded that it is probable that it will be permitted to recover in rates a substantial portion of the costs incurred to resolve wildfire claims in excess of its liability insurance coverage and the amounts recovered from third parties. Accordingly, at December 31, 2016 , Sempra Energy and SDG&E have recorded assets of $353 million in Other Regulatory Assets (long-term) on their Consolidated Balance Sheets ( $352 million related to CPUC-regulated operations and $1 million related to FERC-regulated operations). In September 2015, SDG&E filed an application with the CPUC seeking authority to recover these costs in rates over a six- to ten-year period. The requested amount is the net estimated CPUC-related cost incurred by SDG&E after deductions for insurance reimbursement and third party settlement recoveries, and reflects a voluntary 10-percent shareholder contribution applied to the net WEMA balance. In April 2016, the CPUC issued a ruling establishing the scope and schedule for the proceeding, which will be managed in two phases. Phase 1 will address SDG&E’s operational and management prudence surrounding the 2007 wildfires. Phase 2 will address whether SDG&E’s actions and decision-making in connection with settling legal claims in relation to the wildfires were reasonable. 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 December 31, 2016 , the resulting after-tax charge against earnings would have been up to approximately $208 million . A failure to obtain substantial or full recovery of these costs from customers, or any negative assessment of the likelihood of recovery, would likely have a material adverse effect on Sempra Energy’s and SDG&E’s results of operations and cash flows. We discuss how we assess the probability of recovery of our regulatory assets in Note 1. Lawsuit Against Mitsubishi Heavy Industries, Ltd . As we discuss in Note 13, on July 18, 2013, SDG&E filed a lawsuit in the Superior Court of California in the County of San Diego against 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 counterclaim against Edison. On March 14, 2014, MHI’s motion to stay the United States District Court proceeding was granted with instructions that require the parties to allow SDG&E to participate in the ongoing Edison/MHI arbitration. As a result, SDG&E participated in the arbitration as a claimant and respondent. The arbitration hearing concluded at the end of April 2016. A decision could be reached in the first half of 2017. Concluded Matters Rim Rock 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 were 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 and the project developer began litigating claims against each other regarding whether the project developer had timely satisfied all contractual conditions necessary to trigger SDG&E’s obligations to invest in the project and purchase renewable energy credits. On February 11, 2016, SDG&E, the project developer and several of the project developer’s parent and affiliated entities entered into a settlement agreement, which was approved by the CPUC in July 2016 and all related lawsuits were dismissed. Under the settlement agreement, among other things, the parties agreed to terminate the tax equity investment arrangement, continue the power purchase agreement for the wind farm generation and release all claims against each other, while generally continuing the other elements of the 2011 approved decision. The settlement agreement resulted in a $39 million credit to ratepayers. 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 as part of Multi-District Litigation proceedings, 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 sought injunctive relief and recovery of unspecified amounts of damages. The third party vendor has settled the lawsuit without cost to SDG&E, and a dismissal was entered in federal court on July 20, 2016. SoCalGas Aliso Canyon Natural Gas Storage Facility Gas Leak On October 23, 2015, SoCalGas discovered a leak at one of its injection-and-withdrawal wells, SS25, at its Aliso Canyon natural gas storage facility, located in the northern part of the San Fernando Valley in Los Angeles County. The Aliso Canyon facility has been operated by SoCalGas since 1972. SS25 is more than one mile away from and 1,200 feet above the closest homes. It is one of more than 100 injection-and-withdrawal wells at the storage facility. Stopping the Leak, and Local Community Mitigation Efforts. SoCalGas worked closely with several of the world’s leading experts to stop the leak, and on February 18, 2016, the California Department of Conservation’s Division of Oil, Gas, and Geothermal Resources (DOGGR) confirmed that the well was permanently sealed. Pursuant to a stipulation and order by the Los Angeles County Superior Court (Superior Court), SoCalGas provided temporary relocation support to residents in the nearby community who requested it before the well was permanently sealed. Following the permanent sealing of the well and the completion of the Los Angeles County Department of Public Health’s (DPH) indoor testing of certain homes in the Porter Ranch community, which concluded that indoor conditions did not present a long-term health risk and that it was safe for residents to return home, the Superior Court issued an order in May 2016, ruling that: (1) currently relocated residents be given the choice to request residence cleaning prior to returning home, with such cleaning to be performed according to the DPH’s proposed protocol and at SoCalGas’ expense, and (2) the relocation program for currently relocated residents would then terminate. SoCalGas completed the cleaning program, and the relocation program ended in July 2016. Apart from the Superior Court order, in May 2016, the DPH also issued a directive that SoCalGas professionally clean (in accordance with the proposed protocol prepared by the DPH) the homes of all residents located within the Porter Ranch Neighborhood Council boundary, or who participated in the relocation program, or who are located within a five mile radius of the Aliso Canyon natural gas storage facility and have experienced symptoms from the natural gas leak (the Directive). SoCalGas disputes the Directive, contending that it is invalid and unenforceable, and has filed a petition for writ of mandate to set aside the Directive. The total costs incurred to remediate and stop the leak and to mitigate local community impacts are significant and may increase, and to the extent not covered by insurance (including any costs in excess of applicable policy limits), or if there were to be significant delays in receiving insurance recoveries, such costs could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Cost Estimates and Accounting Impact. As of December 31, 2016 , SoCalGas recorded estimated costs of $780 million related to the leak. Of this amount, approximately 70 percent is for the temporary relocation program (including cleaning costs and certain labor costs) and approximately 20 percent is for efforts to control the well, stop the leak, stop or reduce the emissions, and the estimated cost of the root cause analysis being conducted by an independent third party to determine the cause of the leak. The remaining portion of the $780 million includes legal costs incurred to defend litigation, the value of lost gas, the costs to mitigate the actual natural gas released, and other costs. As the value of lost gas reflects the current replacement cost, the value may fluctuate until such time as replacement gas is purchased and injected into storage. SoCalGas adjusts its estimated total liability associated with the leak as additional information becomes available. The $780 million represents management’s best estimate of these costs related to the leak. Of these costs, a substantial portion has been paid and $53 million is recorded as Reserve for Aliso Canyon Costs as of December 31, 2016 on SoCalGas’ and Sempra Energy’s Consolidated Balance Sheets for amounts expected to be paid after December 31, 2016 . As of December 31, 2016 , we recorded the expected recovery of the costs described in the immediately preceding paragraph related to the leak of $606 million as Insurance Receivable for Aliso Canyon Costs on SoCalGas’ and Sempra Energy’s Consolidated Balance Sheets. This amount is net of insurance retentions and $169 million of insurance proceeds we received in 2016 related to control of well expenses and temporary relocation costs. If we were to conclude that this receivable or a portion of it was no longer probable of recovery from insurers, some or all of this receivable would be charged against earnings, which would have a material adverse effect on SoCalGas’ and Sempra Energy’s financial condition, results of operations and cash flows. The above amounts do not include any unsettled damage claims, restitution, or civil, administrative or criminal fines, costs or other penalties that may be imposed in connection with the incident or our responses thereto, as it is not possible to predict the outcome of any civil or criminal proceeding or any administrative action in which such damage awards, restitution or civil, administrative or criminal fines, costs or other penalties could be imposed, and any such amounts, if awarded or imposed, cannot be reasonably estimated at this time. In addition, the recorded amounts above do not include the costs to clean additional homes pursuant to the DPH Directive, future legal costs necessary to defend litigation, and other potential costs that we currently do not anticipate incurring or that we cannot reasonably estimate. In March 2016, the CPUC issued a decision directing SoCalGas to establish a memorandum account to prospectively track its authorized revenue requirement and all revenues that it receives for its normal, business-as-usual costs to own and operate the Aliso Canyon gas storage field. The CPUC will determine at a later time whether, and to what extent, the authorized revenues tracked in the memorandum account may be refunded to ratepayers. Pursuant to the CPUC’s decision, SoCalGas filed an advice letter requesting to establish a memorandum account to track all normal, business-as-usual costs to own and operate the Aliso Canyon storage field. In September 2016, the advice letter was approved and made effective as of March 17, 2016, the date of the decision directing the company to establish the account. Insurance. Excluding directors and officers liability insurance, we have four kinds of insurance policies that together provide between $1.2 billion to $1.4 billion in insurance coverage, depending on the nature of the claims. We cannot predict all of the potential categories of costs or the total amount of costs that we may incur as a result of the leak. In reviewing each of our policies, and subject to various policy limits, exclusions and conditions, based upon what we know as of the filing date of this report, we believe that our insurance policies collectively should cover the following categories of costs: costs incurred for temporary relocation (including cleaning costs and certain labor costs), costs to address the leak and stop or reduce emissions, the root cause analysis being conducted to determine the cause of the leak, the value of lost natural gas, costs incurred to mitigate the actual natural gas released, costs associated with litigation and claims by nearby residents and businesses, the costs to clean additional homes pursuant to the DPH Directive, and, in some circumstances depending on their nature and manner of assessment, fines and penalties. We have been communicating with our insurance carriers and, as discussed above, we have received insurance payments for control of well expenses and temporary relocation costs. We intend to pursue the full extent of our insurance coverage for the costs we have incurred or may incur. There can be no assurance that we will be successful in obtaining insurance coverage for these costs under the applicable policies, and to the extent we are not successful, such costs could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Our recorded estimate as of December 31, 2016 of $780 million of certain costs in connection with the Aliso Canyon storage facility leak may rise significantly as more information becomes available, and any costs not included in our estimate could be material. To the extent not covered by insurance (including any costs in excess of applicable policy limits), or if there were to be significant delays in receiving insurance recoveries, such costs could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Governmental Investigations and Civil and Criminal Litigation. Various governmental agencies, including DOGGR, DPH, South Coast Air Quality Management District (SCAQMD), California Air Resources Board (CARB), Los Angeles Regional Water Quality Control Board, California Division of Occupational Safety and Health, CPUC, Pipeline and Hazardous Materials Safety Administration (PHMSA), U.S. Environmental Protection Agency (EPA), Los Angeles County District Attorney’s Office and California Attorney General’s Office, have investigated or are investigating this incident. Other federal agencies (e.g., the DOE and the U.S. Department of the Interior) investigated the incident as part of the joint interagency task force discussed below. In January 2016, DOGGR and the CPUC selected Blade Energy Partners (Blade) to conduct an independent analysis under their supervision and to be funded by SoCalGas to investigate the technical root cause of the Aliso Canyon gas leak. The timing of the root cause analysis is under the control of Blade, the DOGGR and the CPUC. As of February 27, 2017, 250 lawsuits, including over 14,000 plaintiffs, have been filed in the Los Angeles County Superior Court against SoCalGas, some of which have also named Sempra Energy. These various lawsuits assert causes of action for negligence, negligence per se, strict liability, property damage, fraud, public and private nuisance (continuing and permanent), trespass, inverse condemnation, fraudulent concealment, unfair business practices and loss of consortium, among other things, and additional litigation may be filed against us in the future related to this incident. A complaint alleging violations of Proposition 65 was also filed. Many of these complaints seek class action status, compensatory and punitive damages, civil penalties, injunctive relief, costs of future medical monitoring and attorneys’ fees. All of these cases, other than a matter brought by the Los Angeles County District Attorney, the federal securities class action and one of the federal shareholder derivative actions discussed below, are coordinated before a single court in the Los Angeles County Superior Court for pretrial management. In addition to the lawsuits described above, a federal securities class action alleging violation of the federal securities laws has been filed against Sempra Energy and certain of its officers and directors in the United States District Court for the Southern District of California, and four shareholder derivative actions alleging breach of fiduciary duties have been filed against certain officers and directors of Sempra Energy and/or SoCalGas, one in the San Diego County Superior Court, one in the United States District Court for the Southern District of California, and two in the Los Angeles County Superior Court. In January 2017, the judge in the coordination proceeding in the Los Angeles County Superior Court granted a petition seeking to coordinate the shareholder derivative actions pending in state court into that proceeding. Pursuant to the parties’ agreement, the Los Angeles County Superior Court ordered that the individual and business entity plaintiffs (other than the Proposition 65 case, the federal securities class action and the one shareholder derivative action), would proceed by filing consolidated master complaints. Accordingly, in November 2016 the individuals and business entities asserting tort claims filed a First Amended Consolidated Master Case Complaint for Individual Actions through which their separate lawsuits will be managed for pretrial purposes. The consolidated complaint asserts causes of action for negligence, negligence per se, private and public nuisance (continuing and permanent), trespass, inverse condemnation, strict liability, negligent and intentional infliction of emotional distress, fraudulent concealment and loss of consortium against SoCalGas, with certain causes also naming Sempra Energy. The consolidated complaint seeks compensatory and punitive damages for personal injuries, property damage and diminution in property value, a temporary injunction, costs of future medical monitoring, and attorneys’ fees. Also in January 2017, pursuant to the coordination proceeding, two consolidated class action complaints were filed against SoCalGas and Sempra Energy, one on behalf of a putative class of persons and businesses who own or lease real property within a five -mile radius of the well (the Property Class Action), and a second on behalf of a putative class of all persons and entities conducting business within five miles of the facility (the Business Class Action). Both complaints assert claims for strict liability for ultra-hazardous activities, negligence and violation of California Unfair Competition Law. The Property Class Action also asserts claims for negligence per se, trespass, permanent and continuing public and private nuisance, and inverse condemnation. The Business Class Action also asserts a claim for negligent interference with prospective economic advantage. Both complaints seek compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees. Three complaints have also been filed by public entities, as follows. These lawsuits are also included in the coordinated proceedings in the Los Angeles County Superior Court. First, the SCAQMD filed a complaint against SoCalGas seeking civil penalties for alleged violations of several nuisance-related statutory provisions arising from the leak and delays in stopping the leak. That suit seeks up to $250,000 in civil penalties for each day the violations occurred. In July 2016, the SCAQMD amended its complaint to seek a declaration that SoCalGas is required to pay the costs of a longitudinal study of the health of persons exposed to the gas leak. In February 2017, SoCalGas and SCAQMD entered into a settlement agreement under which SoCalGas will pay $8.5 million , $1 million of which will be used to pay for a health study, and the SCAQMD will dismiss its complaint and will petition the SCAQMD Hearing Board to terminate the stipulated abatement order described below. Second, in July 2016, the County of Los Angeles, on behalf of itself and the people of the State of California, filed a complaint against SoCalGas in the Los Angeles County Superior Court for public nuisance, unfair competition, breach of franchise agreement, breach of lease, and damages. This suit alleges that the four natural gas storage fields operated or formerly operated by SoCalGas in Los Angeles County require safety upgrades, including the installation of sub-surface safety shut-off valves on every well. It additionally alleges that SoCalGas failed to comply with the DPH Directive. It seeks preliminary and permanent injunctive relief, civil penalties, and damages for the County’s costs to respond to the leak, as well as punitive damages and attorneys’ fees. Third, in August 2016, the California Attorney General, acting in an independent capacity and on behalf of the people of the State of California and the CARB, together with the Los Angeles City Attorney, filed a third amended complaint on behalf of the people of the State of California against SoCalGas alleging public nuisance, violation of the California Unfair Competition Law, violations of California Health and Safety Code sections 41700, prohibiting discharge of air contaminants that cause annoyance to the public, and 25510, requiring reporting of the release of hazardous material, as well as California Government Code section 12607 for equitable relief for the protection of natural resources. The complaint seeks an order for injunctive relief, to abate the public nuisance, and to impose civil penalties. Separately, in February 2016, the Los Angeles County District Attorney’s Office filed a misdemeanor criminal complaint against SoCalGas seeking penalties and other remedies for alleged failure to provide timely notice of the leak pursuant to California Health and Safety Code section 25510(a), Los Angeles County Code section 12.56.030, and Title 19 California Code of Regulations section 2703(a), and for allegedly violating California Health and Safety Code section 41700 prohibiting discharge of air contaminants that cause annoyance to the public. In September 2016, SoCalGas entered into a settlement agreement with the District Attorney’s Office in which it agreed to plead no contest to the notice charge under Health and Safety Code section 25510(a) and agreed to pay the maximum fine of $75,000 , penalty assessments of approximately $233,500 , and up to $4 million in operational commitments, reimbursement and assessments in exchange for the District Attorney’s Office moving to dismiss the remaining counts at sentencing and settling the complaint (collectively referred to as the District Attorney Settlement). In November 2016, SoCalGas completed the commitments and obligations under the District Attorney Settlement, and on November 29, 2016, the Court approved the settlement and entered judgment on the notice charge. Certain individuals residing near Aliso Canyon who objected to the settlement have filed a notice of appeal of the judgment, as well as a petition asking the Superior Court to set aside the November 29, 2016 order and grant them restitution. The costs of defending against these civil and criminal lawsuits, cooperating with these investigations, and any damages, restitution, and civil, administrative and criminal fines, costs and other penalties, if awarded or imposed, as well as the costs of mitigating the actual natural gas released, could be significant and to the extent not covered by insurance (including any costs in excess of applicable policy limits), or if there were to be significant delays in receiving insurance recoveries, such costs could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Regulatory Investigations. In February 2017, the CPUC opened a proceeding to determine the feasibility of minimizing or eliminating the use of the Aliso Canyon natural gas storage facility while still maintaining reliability for the region. The order was issued pursuant to the provisions of Senate Bill (SB) 380. The proceeding will be conducted in two phases, with Phase 1 conducting an analysis of the feasibility of reducing or eliminating the use of Aliso Canyon and Phase 2 considering the potential implementation of the Phase 1 analysis. The Phase 1 schedule contemplates public participation hearings and workshops. The scope of the order expressly excludes issues with respect to air quality, public health, causation, culpability or cost responsibility regarding the Aliso Canyon gas leak. Section 455.5 of the California Public Utilities Code, among other things, directs regulated utilities to notify the CPUC if any portion of a major facility has been out of service for nine consecutive months. Although SoCalGas does not believe the Aliso Canyon facility or any portion of that facility has been out of service for nine consecutive months, SoCalGas provided notification for transparency, and because the process for obtaining authorization to resume injection operations at the facility is taking longer to complete than initially contemplated. In response, and as required by Section 455.5, the CPUC issued a draft OII to address whether the Aliso Canyon facility or any portion of that facility has been out of service for nine consecutive months pursuant to Section 455.5, and if it is determined to have been out of service, whether the CPUC should adjust SoCalGas’ rates to reflect the period the facility is deemed to have been out of service. If the CPUC adopts the order as drafted and as required under Section 455.5, hearings on the investigation will be consolidated with SoCalGas’ next GRC proceeding. Governmental Orders and Additional Regulation. In January 2016, the Governor of the State of California issued the Governor’s Order proclaiming a state of emergency to exist in Los Angeles County due to the natural gas leak at the Aliso Canyon facility. The Governor’s Order imposes various orders with respect to: stopping the leak; protecting public health and safety; ensuring accountability; and strengthening oversight. Most of the directives in the Governor’s Order have been fulfilled, with the following remaining open items: (1) the prohibition against SoCalGas injecting any natural gas into the Aliso Canyon facility will continue until a comprehensive review, utilizing independent experts, of the safety of the storage wells is completed; (2) applicable agencies must convene an independent panel of scientific and medical experts to review public health concerns stemming from the natural gas leak and evaluate whether additional measures are needed to protect public health; (3) the CPUC must ensure that SoCalGas covers costs related to the natural gas leak and its response, while protecting ratepayers, and CARB was ordered to develop a program to fully mitigate the leak’s emissions of methane by March 31, 2016, with such program to be funded by SoCalGas; and (4) DOGGR, CPUC, CARB and California Energy Commission (CEC) must submit to the Governor’s Office a report that assesses the long-term viability of natural gas storage facilities in California. In December 2015, SoCalGas made a commitment to mitigate the actual natural gas released from the leak and has been working on a plan to accomplish the mitigation. In March 2016, pursuant to the Governor’s Order, the CARB issued its Aliso Canyon Methane Leak Climate Impacts Mitigation Program , which sets forth its recommended approach to achieve full mitigation of the emissions from the Aliso Canyon natural gas leak. The CARB program requires that reductions in short-lived climate pollutants and other greenhouse gases be at least equivalent to the amount of the emissions from the leak, and that the appropriate global warming potential to be used in deriving the amount of reductions required is based on a 20 -year term (rather than the 100 -year term the CARB and other state and federal agencies use in regulating emissions), resulting in a target of approximately 9,000,000 metric tons of carbon dioxide equivalent. CARB’s program also provides that all of the mitigation is to occur in California over the next five to ten years without the use of allowances or offsets. In October 2016, CARB issued its final report concluding that the incident resulted in total emissions from 90,350 to 108,950 metric tons of methane, and asserting that SoCalGas should mitigate 109,000 metric tons of methane to fully mitigate the greenhouse gas impacts of the leak. We have not agreed with CARB’s estimate of methane released and continue to work with CARB on developing a mitigation plan. In January 2016, the Hearing Board of the SCAQMD ordered SoCalGas to take various actions in connection with injecting and withdrawing natural gas at Aliso Canyon, sealing the well, monitoring, reporting, safety and funding a health impact study, among other things. SoCalGas has fulfilled its obligations under the Abatement Order to the satisfaction of the SCAQMD and its Hearin |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We have six separately managed reportable segments, as follows: ▪ SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County. ▪ SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California. ▪ Sempra South American Utilities develops, owns and operates, or holds interests in, electric transmission, distribution and generation infrastructure in Chile and Peru. ▪ Sempra Mexico develops, owns and operates, or holds interests in, natural gas transmission systems and an ethane system, a liquid petroleum gas pipeline and associated storage terminal, a natural gas distribution utility, electric generation facilities (including wind and solar electric generation facilities and a natural gas-fired power plant), 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. In February 2016, management approved a plan to market and sell the TdM natural gas fired power plant located in Mexicali, Baja California, as we discuss in Note 3. ▪ Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy generation facilities serving wholesale electricity markets in the United States. ▪ Sempra LNG & Midstream develops, owns and operates, or holds interests in, natural gas pipelines and storage facilities and a terminal for the import and export of LNG and sale of natural gas, all within the United States. In September 2016, Sempra LNG & Midstream sold EnergySouth, the parent company of Mobile Gas and Willmut Gas, and in May 2016, sold its 25-percent interest in Rockies Express. Sempra LNG & Midstream also owned and operated the Mesquite Power plant, a natural gas-fired electric generation asset, the remaining 625-MW block of which was sold in April 2015. We discuss these divestitures in Note 3. 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. 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 Consolidated Statements of Operations and Consolidated Balance Sheets. We provide information about our equity method investments by segment in Note 4. Amounts labeled as “All other” in the following tables consist primarily of parent organizations. SEGMENT INFORMATION (Dollars in millions) Years ended December 31, 2016 2015 2014 REVENUES SDG&E $ 4,253 $ 4,219 $ 4,329 SoCalGas 3,471 3,489 3,855 Sempra South American Utilities 1,556 1,544 1,534 Sempra Mexico 725 669 818 Sempra Renewables 34 36 35 Sempra LNG & Midstream 508 653 979 Adjustments and eliminations — (2 ) (3 ) Intersegment revenues(1) (364 ) (377 ) (512 ) Total $ 10,183 $ 10,231 $ 11,035 INTEREST EXPENSE SDG&E $ 195 $ 204 $ 202 SoCalGas 97 84 69 Sempra South American Utilities 38 32 33 Sempra Mexico 13 23 17 Sempra Renewables 4 3 5 Sempra LNG & Midstream 43 72 111 All other 282 263 241 Intercompany eliminations (119 ) (120 ) (124 ) Total $ 553 $ 561 $ 554 INTEREST INCOME SoCalGas $ 1 $ 4 $ — Sempra South American Utilities 21 19 14 Sempra Mexico 6 7 4 Sempra Renewables 5 4 1 Sempra LNG & Midstream 71 75 115 All other — — 1 Intercompany eliminations (78 ) (80 ) (113 ) Total $ 26 $ 29 $ 22 DEPRECIATION AND AMORTIZATION SDG&E $ 646 $ 604 $ 530 SoCalGas 476 461 431 Sempra South American Utilities 49 50 55 Sempra Mexico 77 70 64 Sempra Renewables 6 6 5 Sempra LNG & Midstream 47 49 61 All other 11 10 10 Total $ 1,312 $ 1,250 $ 1,156 INCOME TAX EXPENSE (BENEFIT) SDG&E $ 280 $ 284 $ 270 SoCalGas 143 138 139 Sempra South American Utilities 80 67 58 Sempra Mexico 188 11 5 Sempra Renewables (38 ) (49 ) (44 ) Sempra LNG & Midstream (80 ) 28 (20 ) All other (184 ) (138 ) (108 ) Total $ 389 $ 341 $ 300 SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Years ended December 31 or at December 31, 2016 2015 2014 EARNINGS (LOSSES) SDG&E $ 570 $ 587 $ 507 SoCalGas(2) 349 419 332 Sempra South American Utilities 156 175 172 Sempra Mexico 463 213 192 Sempra Renewables 55 63 81 Sempra LNG & Midstream (107 ) 44 50 All other (116 ) (152 ) (173 ) Total $ 1,370 $ 1,349 $ 1,161 ASSETS SDG&E $ 17,719 $ 16,515 $ 16,260 SoCalGas 13,424 12,104 10,446 Sempra South American Utilities 3,591 3,235 3,379 Sempra Mexico 7,542 3,783 3,486 Sempra Renewables 3,644 1,441 1,334 Sempra LNG & Midstream 5,564 5,566 6,435 All other 475 734 872 Intersegment receivables (4,173 ) (2,228 ) (2,561 ) Total $ 47,786 $ 41,150 $ 39,651 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 1,399 $ 1,133 $ 1,100 SoCalGas 1,319 1,352 1,104 Sempra South American Utilities 194 154 174 Sempra Mexico 330 302 325 Sempra Renewables 835 81 190 Sempra LNG & Midstream 117 87 212 All other 20 47 18 Total $ 4,214 $ 3,156 $ 3,123 GEOGRAPHIC INFORMATION Long-lived assets(3): United States $ 28,351 $ 26,132 $ 24,183 Mexico 4,814 3,160 2,821 South America 1,863 1,652 1,746 Total $ 35,028 $ 30,944 $ 28,750 Revenues(4): United States $ 8,004 $ 8,119 $ 8,774 South America 1,556 1,544 1,534 Mexico 623 568 727 Total $ 10,183 $ 10,231 $ 11,035 (1) Revenues for reportable segments include intersegment revenues of $6 million , $76 million , $102 million , and $180 million for 2016 , $9 million , $75 million , $101 million and $192 million for 2015 , and $10 million , $69 million , $91 million and $342 million for 2014 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG & Midstream, respectively. (2) After preferred dividends. (3) Includes net PP&E and investments. (4) Amounts are based on where the revenue originated, after intercompany eliminations. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) We provide quarterly financial information for Sempra Energy Consolidated, SDG&E and SoCalGas below: SEMPRA ENERGY (In millions, except per share amounts) Quarters ended March 31 June 30 September 30 December 31 2016(1): Revenues $ 2,622 $ 2,156 $ 2,535 $ 2,870 Expenses and other income $ 2,167 $ 2,268 $ 1,553 $ 2,365 Net income $ 364 $ 27 $ 719 $ 409 Earnings attributable to Sempra Energy $ 353 $ 16 $ 622 $ 379 Basic per-share amounts(2): Net income $ 1.46 $ 0.11 $ 2.87 $ 1.63 Earnings attributable to Sempra Energy $ 1.41 $ 0.06 $ 2.48 $ 1.51 Weighted-average common shares outstanding 249.7 250.1 250.4 250.6 Diluted per-share amounts(2): Net income $ 1.45 $ 0.11 $ 2.85 $ 1.62 Earnings attributable to Sempra Energy $ 1.40 $ 0.06 $ 2.46 $ 1.51 Weighted-average common shares outstanding 251.5 252.0 252.4 251.6 2015: Revenues $ 2,682 $ 2,367 $ 2,481 $ 2,701 Expenses and other income $ 2,076 $ 1,971 $ 2,211 $ 2,269 Net income $ 458 $ 320 $ 282 $ 388 Earnings attributable to Sempra Energy $ 437 $ 295 $ 248 $ 369 Basic per-share amounts(2): Net income $ 1.85 $ 1.29 $ 1.14 $ 1.56 Earnings attributable to Sempra Energy $ 1.76 $ 1.19 $ 1.00 $ 1.48 Weighted-average common shares outstanding 247.7 248.1 248.4 248.7 Diluted per-share amounts(2): Net income $ 1.83 $ 1.27 $ 1.12 $ 1.54 Earnings attributable to Sempra Energy $ 1.74 $ 1.17 $ 0.99 $ 1.47 Weighted-average common shares outstanding 251.2 251.5 251.0 251.5 (1) Reflects the prospective adoption of ASU 2016-09 effective January 1, 2016, as we discuss in Note 2. (2) Earnings per share are computed independently for each of the quarters and therefore may not sum to the total for the year. In September 2016, Sempra Mexico recorded a $617 million noncash gain ( $432 million after-tax; $350 million after-tax and noncontrolling interests) associated with the remeasurement of its equity interest in GdC, which we discuss in Note 3. In September 2016, Sempra Mexico recognized an impairment charge of $131 million ( $111 million after-tax; $90 million after-tax and noncontrolling interests) related to assets held for sale at TdM, which we discuss in Notes 3 and 10. In May 2016, Sempra LNG & Midstream recorded a pretax charge of $206 million ( $123 million after-tax) related to permanently released pipeline capacity with Rockies Express and others, which we discuss in Note 15. In March 2016, Sempra LNG & Midstream recognized an impairment charge of $44 million ( $27 million after-tax) on its investment in Rockies Express, which we discuss in Notes 3 and 10. SDG&E (Dollars in millions) Quarters ended March 31 June 30 September 30 December 31 2016(1): Operating revenues $ 991 $ 992 $ 1,209 $ 1,061 Operating expenses 755 822 886 800 Operating income $ 236 $ 170 $ 323 $ 261 Net income $ 137 $ 87 $ 194 $ 147 (Earnings) losses attributable to noncontrolling interest (1 ) 13 (11 ) 4 Earnings attributable to common shares $ 136 $ 100 $ 183 $ 151 2015: Operating revenues $ 966 $ 972 $ 1,230 $ 1,051 Operating expenses 684 745 930 802 Operating income $ 282 $ 227 $ 300 $ 249 Net income $ 151 $ 130 $ 182 $ 143 (Earnings) losses attributable to noncontrolling interest (4 ) (4 ) (12 ) 1 Earnings attributable to common shares $ 147 $ 126 $ 170 $ 144 (1) Reflects the prospective adoption of ASU 2016-09 effective January 1, 2016, as we discuss in Note 2. SOCALGAS (Dollars in millions) Quarters ended March 31 June 30 September 30 December 31 2016(1): Operating revenues $ 1,033 $ 617 $ 686 $ 1,135 Operating expenses 739 628 648 899 Operating income (loss) $ 294 $ (11 ) $ 38 $ 236 Net income $ 199 $ — $ — $ 151 Dividends on preferred stock — (1 ) — — Earnings (losses) attributable to common shares $ 199 $ (1 ) $ — $ 151 2015: Operating revenues $ 1,048 $ 780 $ 620 $ 1,041 Operating expenses 728 686 633 834 Operating income (loss) $ 320 $ 94 $ (13 ) $ 207 Net income (loss) $ 214 $ 71 $ (8 ) $ 143 Dividends on preferred stock — (1 ) — — Earnings (losses) attributable to common shares $ 214 $ 70 $ (8 ) $ 143 (1) Reflects the prospective adoption of ASU 2016-09 effective January 1, 2016, as we discuss in Note 2. SoCalGas recognizes annual authorized revenue for core natural gas customers using seasonal factors established in the Triennial Cost Allocation Proceeding. Accordingly, substantially all of SoCalGas’ annual earnings are recognized in the first and fourth quarters each year. |
SCHEDULE I, CONDENSED FINANCI26
SCHEDULE I, CONDENSED FINANCIAL INFORMATION OF PARENT, NEW ACCOUNTING STANDARDS (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
New Accounting Standards | New Accounting Standards We describe below recent pronouncements that have had or may have a significant effect on Sempra Energy Parent’s financial condition, results of operations, cash flows or disclosures. Accounting Standards Update (ASU) 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities”: In addition to the presentation and disclosure requirements for financial instruments, ASU 2016-01 requires entities to measure equity investments, other than those accounted for under the equity method, at fair value and recognize changes in fair value in net income. Entities will no longer be able to use the cost method of accounting for equity securities. However, for equity investments without readily determinable fair values, entities may elect a measurement alternative that will allow those investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. Upon adoption, entities must record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the standard is adopted. The guidance on equity securities without readily determinable fair values will be applied prospectively to all equity investments that exist as of the date of adoption of the standard. For public entities, ASU 2016-01 is effective for fiscal years beginning after December 15, 2017. We will adopt ASU 2016-01 on January 1, 2018 as required and do not expect it to materially affect our financial condition, results of operations or cash flows. We will make the required changes to our disclosures upon adoption. ASU 2016-02, “Leases”: ASU 2016-02 requires entities to include substantially all leases on the balance sheet by requiring the recognition of right-of-use assets and lease liabilities for all leases. Entities may elect to exclude from the balance sheet those leases with a maximum possible term of less than 12 months. For lessees, a lease is classified as finance or operating and the asset and liability are initially measured at the present value of the lease payments. For lessors, accounting for leases is largely unchanged from previous provisions of accounting principles generally accepted in the United States of America (U.S. GAAP), other than certain changes to align lessor accounting to specific changes made to lessee accounting and ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2016-02 also requires new qualitative and quantitative disclosures for both lessees and lessors. For public entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, and is effective for interim periods in the year of adoption. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes optional practical expedients that may be elected, which would allow entities to continue to account for leases that commence before the effective date of the standard in accordance with previous U.S. GAAP unless the lease is modified, except for the lessee requirement to begin recognizing right-of-use assets and lease liabilities for all operating leases on the balance sheet at the reporting date. We are currently evaluating the effect of the standard on our ongoing financial reporting and have not yet selected the year in which we will adopt the standard. As part of our evaluation, we formed a steering committee comprised of members from relevant Sempra Energy business units. Based on our assessment to date, we have determined that we will adopt ASU 2016-02 using the modified retrospective approach and will elect the practical expedients available under the transition guidance. ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”: ASU 2016-09 is intended to simplify several aspects of the accounting for employee share-based payment transactions. Under ASU 2016-09, excess tax benefits and tax deficiencies are required to be recorded in earnings, and the requirement to reclassify excess tax benefits from operating to financing activities on the statement of cash flows has been eliminated. ASU 2016-09 also allows entities to withhold taxes up to the maximum individual statutory tax rate without resulting in liability classification of the award and clarifies that cash payments made to taxing authorities in connection with withheld shares should be classified as financing activities in the statement of cash flows. Additionally, the standard provides for an accounting policy election to either continue to estimate forfeitures or account for them as they occur. For public entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, with early adoption permitted, and is effective for interim periods in the year of adoption. We early adopted the provisions of ASU 2016-09 during the three months ended September 30, 2016, with an effective date of January 1, 2016. Upon adoption: ▪ Sempra Energy Parent recognized a cumulative-effect adjustment to retained earnings and a deferred tax asset as of January 1, 2016 of $49 million for previously unrecognized excess tax benefits from share-based compensation. ▪ Sempra Energy Parent recognized earnings consisting of excess tax benefits on the Condensed Statements of Operations of $17 million in the year ended December 31, 2016, all of which related to the three months ended March 31, 2016. Excess tax benefits of $34 million were previously recorded in Sempra Energy Parent Shareholders’ Equity in Common Stock prior to adoption of ASU 2016-09. ▪ The excess tax benefits from share-based compensation for Sempra Energy Parent were previously classified as a financing activity on Sempra Energy Parent’s Condensed Statement of Cash Flows. As now required, excess tax benefits for Sempra Energy Parent are included in Cash Flows From Operating Activities on the Condensed Statements of Cash Flows for the year ended December 31, 2016. This amendment was adopted prospectively, and therefore, we have not adjusted the Condensed Statements of Cash Flows for the prior periods presented. ▪ As a result of the provision to recognize excess tax benefits in earnings, these benefits are no longer included in the calculation of diluted earnings per share (EPS) effective January 1, 2016. The weighted-average number of common shares outstanding for diluted EPS increased by 75 thousand shares for the three months ended March 31, 2016 and 98 thousand shares and 89 thousand shares for the three months and six months ended June 30, 2016, respectively. Upon adoption of ASU 2016-09, we elected to continue estimating the number of awards expected to be forfeited and adjusting our estimate on an ongoing basis. All other provisions of ASU 2016-09 did not impact our financial condition, results of operations or cash flows. ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”: ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments. The standard introduces an “expected credit loss” impairment model that requires immediate recognition of estimated credit losses expected to occur over the remaining life of most financial assets measured at amortized cost, including trade and other receivables, loan commitments and financial guarantees. ASU 2016-13 also requires use of an allowance to record estimated credit losses on available-for-sale debt securities and expands disclosure requirements regarding an entity’s assumptions, models and methods for estimating the credit losses. For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the effect of the standard on our ongoing financial reporting and have not yet selected the year in which we will adopt the standard. ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments”: ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows in order to reduce diversity in practice. For public entities, ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, with early adoption permitted, and is effective for interim periods in the year of adoption. An entity that elects early adoption must adopt all of the amendments in the same period. Entities must apply the guidance retrospectively to all periods presented, but may apply it prospectively if retrospective application would be impracticable. We are currently evaluating the effect of the standard on our ongoing financial reporting and have not yet selected the year in which we will adopt the standard. ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” : ASU 2017-05 clarifies the scope of accounting for the derecognition or partial sale of nonfinancial assets to exclude all businesses and nonprofit activities. ASU 2017-05 also provides a definition for in-substance nonfinancial assets and additional guidance on partial sales of nonfinancial assets. For public entities, ASU 2017-05 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted. An entity may elect to apply the amendments under a retrospective or modified retrospective approach. We are currently evaluating the effect of the standard on our ongoing financial reporting and plan to adopt in conjunction with ASU 2014-09 on January 1, 2018, but have not yet selected the method of adoption. |
SIGNIFICANT ACCOUNTING POLICI27
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Sempra Energy’s 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 ▪ Sempra Utilities, which includes our San Diego Gas & Electric Company (SDG&E), Southern California Gas Company (SoCalGas) and Sempra South American Utilities reportable segments; and ▪ Sempra Infrastructure, which includes our Sempra Mexico, Sempra Renewables and Sempra LNG & Midstream reportable segments. Prior to December 31, 2016, our reportable segments were grouped under the following operating units: ▪ California Utilities (which included the SDG&E and SoCalGas segments) ▪ Sempra International (which included the Sempra South American Utilities and Sempra Mexico segments) ▪ Sempra U.S. Gas & Power (which included the Sempra Renewables and Sempra Natural Gas segments) The grouping of our segments within our operating units as of December 31, 2016 reflects a realignment of management oversight of our operations. As part of this realignment, we changed the name of our “Sempra Natural Gas” segment to “ Sempra LNG & Midstream.” This name change and the realignment of our segments within our new operating units had no impact on our historical financial position, results of operations, cash flows or segment results previously reported. We provide descriptions of each of our segments in Note 16. We refer to SDG&E and SoCalGas collectively as the California Utilities, which do not include our South American utilities or the utilities in our Sempra Infrastructure operating unit. 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 Utilities,” “Sempra Infrastructure” 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. IEnova is a separate legal entity comprised 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. IEnova’s financial results are reported in Mexico under International Financial Reporting Standards, 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. 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 3, 4 and 10. |
Investments in Unconsolidated Entities Policy | 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 3, 4 and 10. We generally account for investments under the equity method when we have significant influence over, but do not have control of, these entities. In these cases, our pro rata shares of the entities’ net assets are included in Investments on the Consolidated Balance Sheets. We adjust each investment for our share of each investee’s earnings or losses, dividends, and other comprehensive income or loss. We evaluate the carrying value of unconsolidated entities for impairment under the U.S. GAAP provisions for equity method investments. |
Regulatory Operations | Regulated Operations The California Utilities and Sempra Mexico’s natural gas distribution utility, Ecogas México, S. de R.L. de C.V. (Ecogas), prepare their financial statements in accordance with the provisions of accounting principles generally accepted in the United States of America (U.S. GAAP) governing rate-regulated operations, as we discuss below in “Effects of Regulation.” Sempra South American Utilities has controlling interests in two electric distribution utilities in South America, Chilquinta Energía S.A. (Chilquinta Energía) in Chile and Luz del Sur S.A.A. (Luz del Sur) in Peru, and their subsidiaries. Revenues are based on tariffs that are set by government agencies in their respective countries based on an efficient model distribution company defined by those agencies. Because the tariffs are based on a model and are intended to cover the costs of the model company, but are not based on the costs of the specific utility and may not result in full cost recovery, these utilities do not meet the requirements necessary for, and therefore do not apply, regulatory accounting treatment under U.S. GAAP. Certain business activities at IEnova are regulated by the Comisión Reguladora de Energía (or CRE, the Energy Regulatory Commission) and meet the regulatory accounting requirements of U.S. GAAP. Pipeline projects currently under construction by IEnova that meet the regulatory accounting requirements of U.S. GAAP record the impact of allowance for funds used during construction (AFUDC) related to equity. We discuss AFUDC below in “Property, Plant and Equipment.” Sempra LNG & Midstream owned Mobile Gas Service Corporation (Mobile Gas) in southwest Alabama and Willmut Gas Company (Willmut Gas) in Mississippi until they were sold in September 2016, as we discuss in Note 3. Mobile Gas and Willmut Gas also prepared their financial statements in accordance with the provisions of U.S. GAAP governing rate-regulated operations. We discuss revenue recognition at our utilities in “Revenues” below. EFFECTS OF REGULATION The accounting policies of the California Utilities conform with U.S. GAAP for rate-regulated enterprises and reflect the policies of the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC). The California Utilities prepare their financial statements in accordance with U.S. GAAP provisions governing rate-regulated operations. Under these provisions, a regulated utility records regulatory assets, which are generally costs that would otherwise be charged to expense, if it is probable that, through the ratemaking process, the utility will recover those assets from customers. To the extent that recovery is no longer probable, the related regulatory assets are written off. Regulatory liabilities generally represent amounts collected from customers in advance of the actual expenditure by the utility. If the actual expenditures are less than amounts previously collected from ratepayers, the excess would be refunded to customers, generally by reducing future rates. Regulatory liabilities may also arise from other transactions such as unrealized gains on fixed price contracts and other derivatives or certain deferred income tax benefits that are passed through to customers in future rates. In addition, the California Utilities record regulatory liabilities when the CPUC or the FERC requires a refund to be made to customers or has required that a gain or other transaction of net allowable costs be given to customers over future periods. Determining probability of recovery requires significant judgment by management and may include, but is not limited to, consideration of: ▪ the nature of the event giving rise to the assessment; ▪ existing statutes and regulatory code; ▪ legal precedents; ▪ regulatory principles and analogous regulatory actions; ▪ testimony presented in regulatory hearings; ▪ proposed regulatory decisions; ▪ final regulatory orders; ▪ a commission-authorized mechanism established for the accumulation of costs; ▪ status of applications for rehearings or state court appeals; ▪ specific approval from a commission; and ▪ historical experience . Ecogas also applies U.S. GAAP for rate-regulated utilities to its operations, including the same evaluation of probability of recovery of regulatory assets described above. |
Use of Estimates in the Preparation of the Financial Statements | Use of Estimates in the Preparation of the Financial Statements We have prepared our Consolidated Financial Statements in conformity with U.S. GAAP. This requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, including the disclosure of contingent assets and liabilities at the date of the financial statements. Although we believe the estimates and assumptions are reasonable, actual amounts ultimately may differ significantly from those estimates. |
Fair Value Measurements | FAIR VALUE MEASUREMENTS We measure certain assets and liabilities at fair value on a recurring basis, primarily nuclear decommissioning and benefit plan trust assets and derivatives. We also measure certain assets at fair value on a non-recurring basis in certain circumstances. These assets can include goodwill, intangible assets, equity method investments and other long-lived assets. “Fair value” is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). A fair value measurement reflects the assumptions market participants would use in pricing an asset or liability based on the best available information. These assumptions include the risk inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Also, we consider an issuer’s credit standing when measuring its liabilities at fair value. We establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Our Level 1 financial instruments primarily consist of listed equities, U.S. government treasury securities, primarily in the nuclear decommissioning and benefit plan trusts, and exchange-traded derivatives. Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including: ▪ quoted forward prices for commodities ▪ time value ▪ current market and contractual prices for the underlying instruments ▪ volatility factors ▪ other relevant economic measures Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Our financial instruments in this category include domestic corporate bonds, municipal bonds and other foreign bonds, primarily in the Nuclear Decommissioning Trusts and in our pension and postretirement benefit plans, and non-exchange-traded derivatives such as interest rate instruments and over-the-counter forwards and options. Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant. Our Level 3 financial instruments consist of congestion revenue rights (CRRs) and fixed-price electricity positions at SDG&E. 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 December 31, 2016 and 2015 . 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 9 in “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 December 31, 2016 and 2015 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). ▪ For commodity contracts, interest rate derivatives and foreign exchange instruments, we primarily use a market approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs and long-term, fixed-price electricity positions at SDG&E, as we discuss below in “Level 3 Information.” ▪ Rabbi Trust investments include marketable securities that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1). These investments in marketable securities were negligible at both December 31, 2016 and 2015 . We determine the fair value of certain long-term amounts due from unconsolidated affiliates and long-term debt based on a market approach using quoted market prices for identical or similar securities in thinly-traded markets (Level 2). We value other long-term amounts due from unconsolidated affiliates of our South American utilities using a perpetuity approach based on the obligation’s fixed interest rate, the absence of a stated maturity date and a discount rate reflecting local borrowing costs (Level 3). We value other long-term amounts due from unconsolidated affiliates and 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). Fair Value of Financial Instruments The fair values of certain of our financial instruments (cash, temporary investments, accounts and notes receivable, short-term due to/from unconsolidated affiliates, dividends and accounts payable, short-term debt and customer deposits) approximate their carrying amounts because of the short-term nature of these instruments. Investments in life insurance contracts that we hold in support of our Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans are carried at cash surrender values, which represent the amount of cash that could be realized under the contracts. |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS Cash equivalents are highly liquid investments with maturities of three months or less at the date of purchase. |
Collection Allowances | We evaluate accounts receivable collectability using a combination of factors, including past due status based on contractual terms, trends in write-offs, the age of the receivable, counterparty creditworthiness, economic conditions and specific events, such as bankruptcies. Adjustments to the allowance for doubtful accounts are made when necessary based on the results of analysis, the aging of receivables, and historical and industry trends. We write off accounts receivable in the period in which we deem the receivable to be uncollectible. We record recoveries of accounts receivable previously written off when it is known that they will be received. COLLECTION ALLOWANCES We record allowances for the collection of trade and other accounts and notes receivable, which include allowances for doubtful customer accounts and for other receivables. |
Inventories | INVENTORIES The California Utilities value natural gas inventory using the last-in first-out (LIFO) method. As inventories are sold, differences between the LIFO valuation and the estimated replacement cost are reflected in customer rates. These differences are generally temporary, but may become permanent if the natural gas inventory withdrawn from storage during the year is not replaced by year end. At December 31, 2016, SoCalGas recognized a permanent LIFO liquidation of $33 million . The California Utilities generally value materials and supplies at the lower of average cost or net realizable value. Sempra South American Utilities, Sempra Mexico, Sempra Renewables and Sempra LNG & Midstream value natural gas inventory and materials and supplies at the lower of average cost or net realizable value. Sempra Mexico and Sempra LNG & Midstream value liquefied natural gas (LNG) inventory using the first-in first-out method. |
Income Taxes | INCOME TAXES Income tax expense includes current and deferred income taxes from operations during the year. We record deferred income taxes for temporary differences between the book and the tax basis of assets and liabilities. Investment tax credits from prior years are amortized to income by the California Utilities over the estimated service lives of the properties as required by the CPUC. At our other businesses, we reduce the book basis of the related asset by the amount of investment tax credit earned. At Sempra Renewables, production tax credits are recognized in income tax expense as earned. Under the regulatory accounting treatment required for flow-through temporary differences, as discussed in Note 6, the California Utilities and Sempra Mexico recognize ▪ regulatory assets to offset deferred tax liabilities if it is probable that the amounts will be recovered from customers; and ▪ regulatory liabilities to offset deferred tax assets if it is probable that the amounts will be returned to customers. We currently do not record deferred income taxes for basis differences between financial statement and income tax investment amounts in non-U.S. subsidiaries and non-U.S. joint ventures because the related cumulative undistributed earnings are indefinitely reinvested. When there are uncertainties related to potential income tax benefits, in order to qualify for recognition, the position we take has to have at least a “more likely than not” chance of being sustained (based on the position’s technical merits) upon challenge by the respective authorities. The term “more likely than not” means a likelihood of more than 50 percent. Otherwise, we may not recognize any of the potential tax benefit associated with the position. We recognize a benefit for a tax position that meets the “more likely than not” criterion at the largest amount of tax benefit that is greater than 50 percent likely of being realized upon its effective resolution. Unrecognized tax benefits involve management’s judgment regarding the likelihood of the benefit being sustained. The final resolution of uncertain tax positions could result in adjustments to recorded amounts and may affect our effective tax rate. 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 ▪ utility self-developed software expenditures ▪ depreciation on a certain portion of utility plant assets ▪ state income taxes The AFUDC related to equity recorded for regulated construction projects at Sempra Mexico has similar flow-through treatment. |
Renewable Energy Certificates (RECs) | GREENHOUSE GAS (GHG) ALLOWANCES The California Utilities, Sempra Mexico and Sempra LNG & Midstream are required by California Assembly Bill 32 to acquire GHG allowances for every metric ton of carbon dioxide equivalent emitted into the atmosphere during electric generation and natural gas transportation. At the California Utilities, many GHG allowances are allocated to us at no cost on behalf of our customers. We record purchased and allocated GHG allowances at the lower of weighted average cost or market, and include them in Other Current Assets and in Sundry on the Consolidated Balance Sheets based on the dates on which they are required to be surrendered. We measure the compliance obligation, which is based on emissions, at the carrying value of allowances held plus the fair value of additional allowances necessary to satisfy the obligation. The California Utilities balance costs and revenues associated with the GHG program through regulatory balancing accounts on the Consolidated Balance Sheets. Sempra Mexico and Sempra LNG & Midstream record the cost of GHG obligations in cost of sales. We include the obligation in Other Current Liabilities and Deferred Credits and Other on the Consolidated Balance Sheets based on the dates on which the allowances will be surrendered. We remove the assets and liabilities from the balance sheets as the allowances are surrendered. RENEWABLE ENERGY CERTIFICATES (RECs) RECs are energy rights established by governmental agencies for the environmental and social promotion of renewable electricity generation. A REC, and its associated attributes and benefits, can be sold separately from the underlying physical electricity associated with a renewable-based generation source in certain markets. Retail sellers of electricity obtain RECs through renewable power purchase agreements, internal generation or separate purchases in the market to comply with renewable portfolio standards established by the governmental agencies. RECs provide documentation for the generation of a unit of renewable energy that is used to verify compliance with renewable portfolio standards. The cost of RECs at SDG&E is recorded in Cost of Electric Fuel and Purchased Power, which is recoverable in rates, on the Consolidated Statements of Operations. |
Property, Plant and Equipment (PP&E) | PROPERTY, PLANT AND EQUIPMENT (PP&E) PP&E primarily represents the buildings, equipment and other facilities used by the Sempra Utilities to provide natural gas and electric utility services, and by Sempra Infrastructure in their operations, including construction work in progress at these operating units. PP&E also includes lease improvements and other equipment at Parent and Other, as well as property acquired under a build-to-suit lease, which we discuss further in Note 15. Our plant costs include ▪ labor ▪ materials and contract services ▪ expenditures for replacement parts incurred during a major maintenance outage of a generating plant In addition, the cost of utility plant at our rate-regulated businesses and non-utility regulated projects that meet the regulatory accounting requirements of U.S. GAAP at Sempra Mexico and Sempra LNG & Midstream includes AFUDC. We discuss AFUDC below. The cost of non-utility plant includes capitalized interest. Maintenance costs are expensed as incurred. The cost of most retired depreciable utility plant assets less salvage value is charged to accumulated depreciation. Depreciation expense is computed using the straight-line method over the asset’s estimated original composite useful life, the CPUC-prescribed period for the California Utilities, or the remaining term of the site leases, whichever is shortest. The California Utilities finance their construction projects with debt and equity funds. The CPUC and the FERC allow the recovery of the cost of these funds by the capitalization of AFUDC, calculated using rates authorized by the CPUC and the FERC, as a cost component of PP&E. The California Utilities earn a return on the capitalized AFUDC after the utility property is placed in service and recover the AFUDC from their customers over the expected useful lives of the assets. Pipeline projects currently under construction by Sempra Mexico and Sempra LNG & Midstream that are both subject to certain regulation and meet U.S. GAAP regulatory accounting requirements record the impact of AFUDC related to equity. Sempra South American Utilities, Sempra Mexico, Sempra Renewables and Sempra LNG & Midstream capitalize interest costs incurred to finance capital projects and interest on equity method investments that have not commenced planned principal operations. The California Utilities also capitalize certain interest costs. |
Goodwill and Other Intangible Assets | Other Intangible Assets primarily represent storage and development rights related to the natural gas storage facilities of Bay Gas Storage Company, Ltd. (Bay Gas) and Mississippi Hub, LLC (Mississippi Hub), which are being amortized over their estimated useful lives as shown in the table above. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwil l Goodwill is the excess of the purchase price over the fair value of the identifiable net assets of acquired companies measured at the time of acquisition. Goodwill is not amortized, but we test it for impairment annually on October 1 or whenever events or changes in circumstances necessitate an evaluation. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, and the book value of goodwill is greater than its fair value on the test date, we record a goodwill impairment loss. For our annual goodwill impairment testing, under current U.S. GAAP guidance we have the option to first make a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before applying the two-step, quantitative goodwill impairment test. If we elect to perform the qualitative assessment, we evaluate relevant events and circumstances, including but not limited to, macroeconomic conditions, industry and market considerations, cost factors, changes in key personnel and the overall financial performance of the reporting unit. If, after assessing these qualitative factors, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we perform the two-step goodwill impairment test. When we perform the two-step, quantitative goodwill impairment test, we exercise judgment to develop estimates of the fair value of the reporting unit and the corresponding goodwill. Our fair value estimates are developed from the perspective of a knowledgeable market participant. We consider observable transactions in the marketplace for similar investments, if available, as well as an income-based approach such as discounted cash flow analysis. A discounted cash flow analysis may be based directly on anticipated future revenues and expenses and may be performed based on free cash flows generated within the reporting unit. Critical assumptions that affect our estimates of fair value may include ▪ consideration of market transactions ▪ future cash flows ▪ the appropriate risk-adjusted discount rate ▪ country risk ▪ entity risk |
Long-lived Assets | LONG-LIVED ASSETS We test long-lived assets for recoverability whenever events or changes in circumstances have occurred that may affect the recoverability or the estimated useful lives of long-lived assets. Long-lived assets include intangible assets subject to amortization, but do not include investments in unconsolidated subsidiaries. Events or changes in circumstances that indicate that the carrying amount of a long-lived asset may not be recoverable may include ▪ significant decreases in the market price of an asset ▪ a significant adverse change in the extent or manner in which we use an asset or in its physical condition ▪ a significant adverse change in legal or regulatory factors or in the business climate that could affect the value of an asset ▪ a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection of continuing losses associated with the use of a long-lived asset ▪ a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life A long-lived asset may be impaired when the estimated future undiscounted cash flows are less than the carrying amount of the asset. If that comparison indicates that the asset’s carrying value may not be recoverable, the impairment is measured based on the difference between the carrying amount and the fair value of the asset. This evaluation is performed at the lowest level for which separately identifiable cash flows exist. |
Variable Interest Entities (VIE) | 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 . |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS For tangible long-lived assets, we record asset retirement obligations for the present value of liabilities of future costs expected to be incurred when assets are retired from service, if the retirement process is legally required and if a reasonable estimate of fair value can be made. We also record a liability if a legal obligation to perform an asset retirement exists and can be reasonably estimated, but performance is conditional upon a future event. We record the estimated retirement cost over the life of the related asset by depreciating the asset retirement cost (measured as the present value of the obligation at the time of the asset’s acquisition), and accreting the obligation until the liability is settled. Rate-regulated entities, including the California Utilities, record regulatory assets or liabilities as a result of the timing difference between the recognition of costs in accordance with U.S. GAAP and costs recovered through the rate-making process. |
Contingencies | CONTINGENCIES We accrue losses for the estimated impacts of various conditions, situations or circumstances involving uncertain outcomes. For loss contingencies, we accrue the loss if an event has occurred on or before the balance sheet date and: ▪ information available through the date we file our financial statements indicates it is probable that a loss has been incurred, given the likelihood of uncertain future events; and ▪ the amount of the loss can be reasonably estimated. We do not accrue contingencies that might result in gains. We continuously assess contingencies for litigation claims, environmental remediation and other events. |
Legal Fees | LEGAL FEES Legal fees that are associated with a past event for which a liability has been recorded are accrued when it is probable that fees also will be incurred and amounts are estimable. LEGAL PROCEEDINGS |
Comprehensive Income | COMPREHENSIVE INCOME Comprehensive income includes all changes in the equity of a business enterprise (except those resulting from investments by owners and distributions to owners), including: ▪ foreign currency translation adjustments ▪ certain hedging activities ▪ changes in unamortized net actuarial gain or loss and prior service cost related to pension and other postretirement benefits plans ▪ unrealized gains or losses on available-for-sale securities The Consolidated Statements of Comprehensive Income show the changes in the components of other comprehensive income (loss) (OCI), including the amounts attributable to noncontrolling interests |
Noncontrolling Interests | NONCONTROLLING INTERESTS 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. Noncontrolling interests are reported as a separate component of equity on the Consolidated Balance Sheets. Earnings/losses attributable to the noncontrolling interests are separately identified on the Consolidated Statements of Operations, and net income/loss and comprehensive income/loss attributable to noncontrolling interests are separately identified on the Consolidated Statements of Comprehensive Income (Loss) and Consolidated Statements of Changes in Equity. |
Revenues | Energy-Related Businesses Sempra South American Utilities Sempra South American Utilities generates revenues from energy-services companies that provide electric construction services and recognizes these revenues when services are provided in accordance with contractual agreements. The energy-services company in Chile also generates revenue from selling electricity to non-regulated customers. Sempra Mexico Sempra Mexico recognizes revenues from: ▪ pipeline transportation and storage of natural gas, liquid petroleum gas and ethane as capacity is provided; ▪ sale of natural gas as deliveries are made; ▪ an LNG regasification terminal that generates revenues from reservation and usage fees under terminal capacity agreements and nitrogen injection service agreements as capacity is provided; ▪ wind power generation facilities that generate revenues from selling electricity as the power is delivered at the interconnection point; and ▪ a natural gas-fired power plant that generates revenues from selling electricity and/or capacity to the California ISO and to governmental, public utility and wholesale power marketing entities as the power is delivered at the interconnection point. In February 2016, management approved a plan to market and sell Termoeléctrica de Mexicali (TdM). As a result, we classified it as held for sale. We discuss TdM further in Note 3. Sempra Mexico reports revenue net of value added taxes in Mexico. Sempra Mexico’s revenues also include net realized gains and losses on settlements of energy derivatives and net unrealized gains and losses from the change in fair values of energy derivatives. Sempra Renewables For consolidated entities, Sempra Renewables generates revenues from the sale of solar and wind power pursuant to power purchase agreements, and recognizes these revenues when the power is delivered. It also generates revenues for managing certain of its solar and wind project joint ventures. Sempra LNG & Midstream Sempra LNG & Midstream records revenues from contractual counterparty obligations for non-delivery of LNG cargoes, as well as revenues from the sale of LNG and natural gas as deliveries are made to counterparties. Sempra LNG & Midstream also recognizes revenues from natural gas storage and transportation operations when services are provided in accordance with contractual agreements for the storage and transportation services. Sempra LNG & Midstream revenues also include net realized gains and losses on settlements of energy derivatives and net unrealized gains and losses from the change in fair values of energy derivatives. Prior to April 2015, Sempra LNG & Midstream generated revenues from selling electricity and/or capacity from its Mesquite Power facility (see Note 3) to the California ISO and to governmental, public utility and wholesale power marketing entities. Sempra LNG & Midstream recognized these revenues as the electricity was delivered and capacity was provided. Related to its LNG terminal, prior to October 1, 2014, the effective date of Cameron LNG JV, Sempra LNG & Midstream recognized revenues from reservation and usage fees. We discuss the deconsolidation of Cameron LNG, LLC and related assets further in Note 3. REVENUES California Utilities Our California Utilities generate revenues primarily from deliveries to their customers of electricity by SDG&E and natural gas by both SoCalGas and SDG&E and from related services. We record these revenues following the accrual method and recognize them upon delivery and performance. As described below, recorded revenues include those authorized by the CPUC to support our operations (“decoupled revenue”), as well as commodity costs that are passed through to core gas customers and electric customers: ▪ Decoupled revenue – The regulatory framework permits the California Utilities to recover authorized revenue based on estimated annual demand forecasts approved in regular proceedings before the CPUC. Any difference between actual demand and the annual demand approved in the proceedings is recovered or refunded in authorized revenue in the subsequent year. This design, commonly known as “decoupling,” is intended to minimize any impact on earnings due to variability in volumetric demand for electricity and natural gas. ▪ Commodity costs – The regulatory framework authorizes the California Utilities to recover the actual cost of natural gas procured and delivered to its core customers in rates substantially as incurred. Actual electricity procurement costs are recovered as power is delivered, or to the extent actual amounts vary from forecasts, generally recovered or refunded within the subsequent year. The California Utilities may also record revenue from CPUC-approved incentive awards, some of which require approval by the CPUC prior to being recognized. SDG&E bids and self-schedules its generation into the California Independent System Operator (ISO) energy market on a day-ahead and real-time basis and self-schedules power to serve the demand of its customers. Generally, SDG&E is a net purchaser of power. The California ISO settles SDG&E costs and revenues on an hourly and real-time net basis. On a monthly basis, SoCalGas accrues natural gas storage contract revenues, which consist of storage reservation and variable charges based on negotiated agreements with terms of up to 15 years. Sempra South American Utilities Our electric distribution utilities in South America, Chilquinta Energía and Luz del Sur, serve primarily regulated customers, and their revenues are based on tariffs that are set by the National Energy Commission (Comisión Nacional de Energía, or CNE) in Chile and the Energy and Mining Investment Supervisory Body (Organismo Supervisor de la Inversión en Energía y Minería, or OSINERGMIN) in Peru. The tariffs charged are based on an efficient model distribution company defined by Chilean law in the case of Chilquinta Energía, and OSINERGMIN in the case of Luz del Sur. The tariffs include operation and maintenance costs, an internal rate of return on the new replacement value of depreciable assets, charges for the use of transmission systems, and a component for the value added by the distributor. Tariffs are designed to provide for a pass-through to customers of the main noncontrollable cost items (mainly power purchases and transmission charges), recovery of reasonable operating and administrative costs, incentives to reduce costs and make needed capital investments and a regulated rate of return on the distributor’s regulated asset base. Sempra Infrastructure Our natural gas utilities outside of California apply U.S. GAAP for revenue recognition consistent with the California Utilities, namely Ecogas, our natural gas utility in Mexico, and Mobile Gas and Willmut Gas, our natural gas utilities in Alabama and Mississippi, respectively, that were sold in September 2016. The table below shows the total utilities revenues in Sempra Energy’s Consolidated Statements of Operations for each of the last three years. The revenues include amounts for services rendered but unbilled (approximately one-half month’s deliveries) at the end of each year. |
Other Cost of Sales | OTHER COST OF SALES Other Cost of Sales primarily includes ▪ pipeline capacity costs, and pipeline transportation and natural gas marketing costs at Sempra LNG & Midstream; ▪ electric construction services costs at Sempra South American Utilities’ energy-services companies; and ▪ energy management service fees and costs associated with construction at Sempra Mexico. |
Foreign Currency Translation | FOREIGN CURRENCY TRANSLATION Our operations in South America and our natural gas distribution utility in Mexico use their local currency as their functional currency. The assets and liabilities of their foreign operations are translated into U.S. dollars at current exchange rates at the end of the reporting period, and revenues and expenses are translated at average exchange rates for the year. The resulting noncash translation adjustments do not enter into the calculation of earnings or retained earnings (unless the operation is being discontinued), but are reflected in Other Comprehensive Income (Loss) and in Accumulated Other Comprehensive Income (Loss). Cash flows of these consolidated foreign subsidiaries are translated into U.S. dollars using average exchange rates for the period. We report the effect of exchange rate changes on cash balances held in foreign currencies in “Effect of Exchange Rate Changes on Cash and Cash Equivalents” on the Sempra Energy Consolidated Statements of Cash Flows. |
Business Combinations | Purchase Price Allocation. We accounted for this business combination using the acquisition method of accounting whereby the total fair value of the business acquired is allocated to identifiable assets acquired and liabilities assumed based on their respective fair values, with any excess recognized as goodwill at the Sempra Mexico reportable segment. We expect the GdC acquisition to have strategic benefits, including opportunities for expansion into areas such as the transportation and storage of refined products; and a larger platform and presence in Mexico to participate in energy sector reform, reflecting the value of goodwill recognized. None of the goodwill is expected to be deductible in Mexico or the United States for income tax purposes. Valuation of GdC’s Assets and Liabilities. Based on the nature of the Mexico regulatory environment and the oversight surrounding the establishment and maintenance of rates that GdC charges for services on its assets, GdC applies the guidance under the provisions of U.S. GAAP governing rate-regulated operations. Therefore, when determining the fair value of the acquired assets and liabilities assumed, we considered the effect of regulation on a market participant’s view of the highest and best use of the assets, in particular for the fair value of GdC’s PP&E. Under U.S. GAAP, regulation is viewed as being a characteristic (restriction) of a regulated entity’s PP&E, and the impact of regulation is considered a fundamental input to measuring the fair value of PP&E in a business combination involving a regulated business. As a regulated business will generally earn a return of its costs and a reasonable return on its invested capital, but nothing more, the value of a regulated business is the value of its invested capital. Under this premise, the fair value of the PP&E of a regulated business is generally assumed to be equivalent to carrying value for financial reporting purposes. Management has concluded that the carrying value of GdC’s PP&E is representative of fair value. We applied an income approach, specifically the discounted cash flow method, to measure the fair value of debt and derivatives. We valued debt by discounting future debt payments by a market yield and we valued derivatives by discounting the future interest payments under the fixed and floating rates using current market data. For substantially all other assets and liabilities, our analysis indicates that historical carrying value approximates fair value due to their short-term nature. We consolidate assets acquired and liabilities assumed as of the purchase date and include earnings from acquisitions in consolidated earnings after the purchase date. Purchase Price Allocation. We accounted for this business combination using the acquisition method of accounting whereby the total fair value of the business acquired is allocated to identifiable assets acquired and liabilities assumed based on their respective fair values, with any excess recognized as goodwill at the Sempra Mexico reportable segment. The factors contributing to the recognition of goodwill include the opportunity for us to secure a strategic position in Mexico’s emerging renewable energy market and the potential to further expand the existing wind power generation facilities. None of the goodwill is expected to be deductible in Mexico or in the United States for income tax purposes. Valuation of Ventika’s Assets and Liabilities. The fair values of the tangible and intangible assets acquired and liabilities assumed have been recognized based on their preliminary values at the acquisition date. Significant inputs used to measure the fair values of the acquired PP&E, intangible asset, debt, and derivatives are as follows: ▪ PP&E – We applied an income approach utilizing market based discounted cash flows. We utilized the pricing included in the existing power purchase agreements, which was determined to reflect current market rates in the Mexican renewable energy market. ▪ Intangible asset – Ventika is the holder of a renewable energy transmission and consumption permit that allows it to transmit its generated power to various locations within Mexico at beneficial rates and reduces the administrative burden to manage transmitting power to off-takers. With recent renewable energy market reforms in Mexico, these transmission and consumption permits are no longer available, resulting in higher tariffs for generators. We applied an income approach based on a cash flow differential approach that measures the fair value of the transmission rights by comparing the operating expenses under the transmission and consumption permit as compared to under the new, higher tariffs. This acquired intangible asset has an amortization period of 20 years , reflecting the life of the transmission and consumption transmission permit. ▪ Debt – Utilizing an income approach, we valued debt by discounting future debt payments by a market yield commensurate with the remaining term of the loans. ▪ Derivatives – Utilizing an income approach, we valued derivatives by discounting the future interest payments under the fixed and floating rates using current market data. Additionally, we recognized deferred income taxes on Ventika’s existing net operating losses, and for the difference between the fair values and tax bases of the net assets acquired using the Mexican statutory rate. For substantially all other assets and liabilities, our analysis indicates that historical carrying value approximates fair value due to their short-term nature. |
Operation and Maintenance Expenses | OPERATION AND MAINTENANCE EXPENSES Operation and Maintenance includes operating and maintenance costs, and general and administrative costs, consisting primarily of personnel costs, purchased materials and services, litigation expense and rent. |
New Accounting Standards | We describe below recent pronouncements that have had or may have a significant effect on our financial condition, results of operations, cash flows or disclosures. Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers,” ASU 2015-14, “Deferral of the Effective Date,” ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Identifying Performance Obligations and Licensing” and ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients”: ASU 2014-09 provides accounting guidance for the recognition of revenue from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. The guidance also provides a model for the measurement and recognition of gains and losses on the sale of certain nonfinancial assets, such as property and equipment, including real estate. This guidance must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. Amending ASU 2014-09, ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations, ASU 2016-10 clarifies the determination of whether a good or service is separately identifiable from other promises and revenue recognition related to licenses of intellectual property, and ASU 2016-12 provides guidance on transition, collectability, noncash consideration, and the presentation of sales and other similar taxes. ASU 2015-14 defers the effective date of ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. For public entities, ASU 2014-09 is effective for fiscal years beginning after December 15, 2017, with early adoption permitted for fiscal years beginning after December 15, 2016, and is effective for interim periods in the year of adoption. We plan to adopt ASU 2014-09 on January 1, 2018 using the modified retrospective transition method and are currently evaluating the effect on our ongoing financial reporting. As part of our evaluation, we formed multiple working groups with oversight from a steering committee comprised of members from relevant Sempra Energy business units. We separated our various revenue streams into high-level categories, which will serve as the basis for accounting analysis and documentation of the impact of ASU 2014-09 on our revenue recognition. In addition, we continue to actively monitor outstanding issues currently being addressed by the American Institute of Certified Public Accountants’ Revenue Recognition Working Group and the Financial Accounting Standards Board’s Transition Resource Group, since conclusions reached by these groups may impact our application of these ASU’s. ASU 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)” : ASU 2015-07 removes the requirement to categorize within the fair value hierarchy investments for which fair value is measured at net asset value (NAV), as well as the requirement to make specific disclosures for all investments for which the entity has elected to measure the fair value using the NAV practical expedient. We retrospectively adopted ASU 2015-07 on January 1, 2016, and it did not affect our financial condition, results of operations or cash flows. The required changes to our disclosure are reflected in Note 7. ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities”: In addition to the presentation and disclosure requirements for financial instruments, ASU 2016-01 requires entities to measure equity investments, other than those accounted for under the equity method, at fair value and recognize changes in fair value in net income. Entities will no longer be able to use the cost method of accounting for equity securities. However, for equity investments without readily determinable fair values, entities may elect a measurement alternative that will allow those investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. Upon adoption, entities must record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the standard is adopted. The guidance on equity securities without readily determinable fair values will be applied prospectively to all equity investments that exist as of the date of adoption of the standard. For public entities, ASU 2016-01 is effective for fiscal years beginning after December 15, 2017. We will adopt ASU 2016-01 on January 1, 2018 as required and do not expect it to materially affect our financial condition, results of operations or cash flows. We will make the required changes to our disclosures upon adoption. ASU 2016-02, “Leases”: ASU 2016-02 requires entities to include substantially all leases on the balance sheet by requiring the recognition of right-of-use assets and lease liabilities for all leases. Entities may elect to exclude from the balance sheet those leases with a maximum possible term of less than 12 months. For lessees, a lease is classified as finance or operating, and the asset and liability are initially measured at the present value of the lease payments. For lessors, accounting for leases is largely unchanged from previous provisions of U.S. GAAP, other than certain changes to align lessor accounting to specific changes made to lessee accounting and ASU 2014-09. ASU 2016-02 also requires new qualitative and quantitative disclosures for both lessees and lessors. For public entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, and is effective for interim periods in the year of adoption. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes optional practical expedients that may be elected, which would allow entities to continue to account for leases that commence before the effective date of the standard in accordance with previous U.S. GAAP unless the lease is modified, except for the lessee requirement to begin recognizing right-of-use assets and lease liabilities for all operating leases on the balance sheet at the reporting date. We are currently evaluating the effect of the standard on our ongoing financial reporting and have not yet selected the year in which we will adopt the standard. As part of our evaluation, we formed a steering committee comprised of members from relevant Sempra Energy business units. Based on our assessment to date, we have determined that we will adopt ASU 2016-02 using the modified retrospective approach and will elect the practical expedients available under the transition guidance. ASU 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships”: ASU 2016-05 provides clarification that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 may be adopted prospectively or using a modified retrospective approach. We prospectively adopted ASU 2016-05 on January 1, 2016, and it did not affect our financial condition, results of operations or cash flows. ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”: ASU 2016-09 is intended to simplify several aspects of the accounting for employee share-based payment transactions. Under ASU 2016-09, excess tax benefits and tax deficiencies are required to be recorded in earnings, and the requirement to reclassify excess tax benefits from operating to financing activities on the statement of cash flows has been eliminated. ASU 2016-09 also allows entities to withhold taxes up to the maximum individual statutory tax rate without resulting in liability classification of the award and clarifies that cash payments made to taxing authorities in connection with withheld shares should be classified as financing activities in the statement of cash flows. Additionally, the standard provides for an accounting policy election to either continue to estimate forfeitures or account for them as they occur. For public entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, with early adoption permitted, and is effective for interim periods in the year of adoption. We early adopted the provisions of ASU 2016-09 during the three months ended September 30, 2016, with an effective date of January 1, 2016. Upon adoption: ▪ Sempra Energy, SDG&E and SoCalGas recognized a cumulative-effect adjustment to retained earnings and a deferred tax asset as of January 1, 2016 of $107 million , $23 million and $15 million , respectively, for previously unrecognized excess tax benefits from share-based compensation. ▪ Sempra Energy, SDG&E and SoCalGas recognized earnings consisting of excess tax benefits on the Consolidated Statements of Operations of $34 million , $7 million and $4 million , respectively, in the year ended December 31, 2016, all of which related to the three months ended March 31, 2016. The $34 million was previously recorded in Sempra Energy Shareholders’ Equity in Common Stock prior to adoption of ASU 2016-09. ▪ The excess tax benefits from share-based compensation for Sempra Energy were previously classified as a financing activity on Sempra Energy’s Consolidated Statement of Cash Flows. As now required, the excess tax benefits for Sempra Energy, SDG&E and SoCalGas are included in Cash Flows From Operating Activities on the Consolidated Statements of Cash Flows for the year ended December 31, 2016. This amendment was adopted prospectively, and therefore, we have not adjusted the Consolidated Statements of Cash Flows for the prior periods presented. ▪ As a result of the provision to recognize excess tax benefits in earnings, these benefits are no longer included in the calculation of diluted earnings per share (EPS) effective January 1, 2016. The weighted-average number of common shares outstanding for diluted EPS increased by 75 thousand shares for the three months ended March 31, 2016 and 98 thousand shares and 89 thousand shares for the three months and six months ended June 30, 2016, respectively. We discuss the impact further in Note 12. Upon adoption of ASU 2016-09, we elected to continue estimating the number of awards expected to be forfeited and adjusting our estimate on an ongoing basis. All other provisions of ASU 2016-09 did not impact our financial condition, results of operations or cash flows. ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”: ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments. The standard introduces an “expected credit loss” impairment model that requires immediate recognition of estimated credit losses expected to occur over the remaining life of most financial assets measured at amortized cost, including trade and other receivables, loan commitments and financial guarantees. ASU 2016-13 also requires use of an allowance to record estimated credit losses on available-for-sale debt securities and expands disclosure requirements regarding an entity’s assumptions, models and methods for estimating the credit losses. For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the effect of the standard on our ongoing financial reporting and have not yet selected the year in which we will adopt the standard. ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments”: ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows in order to reduce diversity in practice. For public entities, ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, with early adoption permitted, and is effective for interim periods in the year of adoption. An entity that elects early adoption must adopt all of the amendments in the same period. Entities must apply the guidance retrospectively to all periods presented, but may apply it prospectively if retrospective application would be impracticable. We are currently evaluating the effect of the standard on our ongoing financial reporting and have not yet selected the year in which we will adopt the standard. ASU 2016-18, “Restricted Cash”: ASU 2016-18 requires amounts described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. A reconciliation between the balance sheet and the statement of cash flows must be disclosed when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash and restricted cash equivalents. For public entities, ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the effect of the standard on our ongoing financial reporting and have not yet selected the year in which we will adopt the standard. ASU 2017-04, “Simplifying the Test for Goodwill Impairment”: ASU 2017-04 removes the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation. An entity will be required to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the carrying amount of goodwill. For public entities, ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The amendments should be applied on a prospective basis. We are currently evaluating the effect of the standard on our ongoing financial reporting and have not yet selected the year in which we will adopt the standard. ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets”: ASU 2017-05 clarifies the scope of accounting for the derecognition or partial sale of nonfinancial assets to exclude all businesses and nonprofit activities. ASU 2017-05 also provides a definition for in-substance nonfinancial assets and additional guidance on partial sales of nonfinancial assets. For public entities, ASU 2017-05 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted. An entity may elect to apply the amendments under a retrospective or modified retrospective approach. We are currently evaluating the effect of the standard on our ongoing financial reporting and plan to adopt in conjunction with ASU 2014-09 on January 1, 2018, but have not yet selected the method of adoption. |
Environmental Costs | We record environmental liabilities at undiscounted amounts when our liability is probable and the costs can be reasonably estimated. In many cases, however, investigations are not yet at a stage where we can determine whether we are liable or, if the liability is probable, to reasonably estimate the amount or range of amounts of the costs. Estimates of our liability are further subject to uncertainties such as the nature and extent of site contamination, evolving cleanup standards and imprecise engineering evaluations. We review our accruals periodically and, as investigations and cleanups proceed, we make adjustments as necessary. We generally capitalize the significant costs we incur to mitigate or prevent future environmental contamination or extend the life, increase the capacity, or improve the safety or efficiency of property used in current operations. The following table shows our capital expenditures (including construction work in progress) in order to comply with environmental laws and regulations: At the California Utilities, costs that relate to current operations or an existing condition caused by past operations are generally recorded as a regulatory asset due to the probability that these costs will be recovered in rates. |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We are required by applicable U.S. GAAP to: ▪ recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status in the statement of financial position; ▪ measure a plan’s assets and its obligations that determine its funded status as of the end of the fiscal year (with limited exceptions); and ▪ recognize changes in the funded status of pension and other postretirement benefit plans in the year in which the changes occur. Generally, those changes are reported in other comprehensive income and as a separate component of shareholders’ equity. The detailed information presented below covers the employee benefit plans of Sempra Energy and its principal subsidiaries. Sempra Energy has funded and unfunded noncontributory traditional defined benefit and cash balance plans, including separate plans for SDG&E and SoCalGas, which collectively cover all eligible employees, including members of the Sempra Energy board of directors who were participants in a predecessor plan on or before June 1, 1998. Pension benefits under the traditional defined benefit plans are based on service and final average earnings, while the cash balance plans provide benefits using a career average earnings methodology. IEnova has an unfunded noncontributory defined benefit plan covering all employees. Chilquinta Energía has an unfunded noncontributory defined benefit plan covering all employees hired before October 1, 1981 and an unfunded noncontributory termination indemnity plan covering represented employees. The plans generally provide defined benefits to retirees based on date of hire, years of service and final average earnings. Sempra Energy also has other postretirement benefit plans (PBOP), including separate plans for SDG&E and SoCalGas, which collectively cover all domestic and certain foreign employees. The life insurance plans are both contributory and noncontributory, and the health care plans are contributory. Participants’ contributions are adjusted annually. Other postretirement benefits include medical benefits for retirees’ spouses. Chilquinta Energía also has two noncontributory postretirement benefit plans which cover represented employees – a health care plan and an energy subsidy plan that provides for reduced energy rates. The health care plan includes benefits for retirees’ spouses and dependents. Pension and other postretirement benefits costs and obligations are dependent on assumptions used in calculating such amounts. We review these assumptions on an annual basis and update them as appropriate. We consider current market conditions, including interest rates, in making these assumptions. We use a December 31 measurement date for all of our plans. Net Assets and Liabilities The assets and liabilities of the pension and other postretirement benefit plans are affected by changing market conditions as well as when actual plan experience is different than assumed. Such events result in investment gains and losses, which we defer and recognize in pension and other postretirement benefit costs over a period of years. Our funded pension and other postretirement benefit plans use the asset smoothing method, except for those at SDG&E and the other postretirement benefit plan at Mobile Gas (until the date of sale). This method develops an asset value that recognizes realized and unrealized investment gains and losses over a three-year period. This adjusted asset value, known as the market-related value of assets, is used in conjunction with an expected long-term rate of return to determine the expected return-on-assets component of net periodic cost. SDG&E does not use the asset smoothing method, but rather recognizes realized and unrealized investment gains and losses during the current year. The 10 -percent corridor accounting method is used at Sempra Energy Consolidated, SDG&E and SoCalGas. Under the corridor accounting method, if as of the beginning of a year unrecognized net gain or loss exceeds 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets, the excess is amortized over the average remaining service period of active participants. The asset smoothing and 10 -percent corridor accounting methods help mitigate volatility of net periodic costs from year to year. We recognize the overfunded or underfunded status of defined benefit pension and other postretirement plans as assets or liabilities, respectively; unrecognized changes in these assets and/or liabilities are normally recorded in Accumulated Other Comprehensive Income (Loss) on the balance sheet. The California Utilities and Mobile Gas (until the date of sale) record regulatory assets and liabilities that offset the funded pension and other postretirement plans’ assets or liabilities, as these costs are expected to be recovered in future utility rates based on agreements with regulatory agencies. At Willmut Gas (until the date of sale), pension contributions were recovered in rates on a prospective basis, but were not recorded as a regulatory asset pending recovery. The California Utilities record annual pension and other postretirement net periodic benefit costs equal to the contributions to their plans as authorized by the CPUC. The annual contributions to the pension plans are limited to a minimum required funding amount as determined by the IRS. The annual contributions to the other postretirement plans are equal to the lesser of the maximum tax deductible amount or the net periodic cost calculated in accordance with U.S. GAAP for pension and other postretirement benefit plans. Until the date of sale, Mobile Gas recorded annual pension and other postretirement net periodic benefit costs based on an estimate of the net periodic cost at the beginning of the year calculated in accordance with U.S. GAAP for pension and other postretirement benefit plans, as authorized by the Alabama Public Service Commission. Any differences between booked net periodic benefit cost and amounts contributed to the pension and other postretirement plans for the California Utilities are disclosed as regulatory adjustments in accordance with U.S. GAAP for rate-regulated entities. Assumptions for Pension and Other Postretirement Benefit Plans Benefit Obligation and Net Periodic Benefit Cost Except for the IEnova and Chilquinta Energía plans, we develop the discount rate assumptions based on the results of a third party modeling tool that matches each plan’s expected cash flows to interest rates and expected maturity values of individually selected bonds in a hypothetical portfolio. The model controls the level of accumulated surplus that may result from the selection of bonds based solely on their premium yields by limiting the number of years to look back for selection to 3 years for pre-30-year and 6 years for post-30-year benefit payments. Additionally, the model ensures that an adequate number of bonds are selected in the portfolio by limiting the amount of the plan’s benefit payments that can be met by a single bond to 7.5 percent. We selected individual bonds from a universe of Bloomberg AA-rated bonds which: ▪ have an outstanding issue of at least $50 million; ▪ are non-callable (or callable with make-whole provisions); ▪ exclude collateralized bonds; and ▪ exclude the top and bottom 10 percent of yields to avoid relying on bonds which might be mispriced or misgraded . This selection methodology also mitigates the impact of market volatility on the portfolio by excluding bonds with the following characteristics: ▪ The issuer is on review for downgrade by a major rating agency if the downgrade would eliminate the issuer from the portfolio. ▪ Recent events have caused significant price volatility to which rating agencies have not reacted. ▪ Lack of liquidity is causing price quotes to vary significantly from broker to broker. We believe that this bond selection approach provides the best estimate of discount rates to estimate settlement values for our plans’ benefit obligations as required by applicable U.S. GAAP. We develop the discount rate assumptions for the plans at IEnova by constructing a synthetic government zero coupon bond yield curve from the available market data, based on duration matching, and we add a risk spread to allow for the yields of high-quality corporate bonds. We develop the discount rate assumptions for the plans at Chilquinta Energía based on 10 -year Chilean government bond yields and the expected local long-term rate of inflation. These methods for developing the discount rate are required when there is no deep market for high quality corporate bonds. Long-term return on assets is based on the weighted-average of the plans’ investment allocation as of the measurement date and the expected returns for those asset types. We amortize prior service cost using straight line amortization over average future service (or average expected lifetime for plans where participants are substantially inactive employees), which is an alternative method allowed under U.S. GAAP. Fair Value of Pension and Other Postretirement Benefit Plan Assets We classify the investments in Sempra Energy’s pension master trust and the trusts for the California Utilities’ other postretirement benefit plans based on the fair value hierarchy, except for certain investments measured at net asset value (NAV). The following are descriptions of the valuation methods and assumptions we use to estimate the fair values of investments held by pension and other postretirement benefit plan trusts. Equity Securities – Equity securities are valued using quoted prices listed on nationally recognized securities exchanges. Fixed Income Securities – Certain fixed income securities are valued at the closing price reported in the active market in which the security is traded. Other fixed income securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar securities, the security is valued under a discounted cash flows approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. Certain high yield fixed-income securities are valued by applying a price adjustment to the bid side to calculate a mean and ask value. Adjustments can vary based on maturity, credit standing, and reported trade frequencies. The bid to ask spread is determined by the investment manager based on the review of the available market information. Registered Investment Companies – Investments in mutual funds sponsored by a registered investment company are valued based on exchange listed prices for equity and certain fixed income securities or are valued under a discounted cash flows approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks for the remaining fixed income securities. Where the value is a quoted price in an active market, the investment is classified within Level 1 of the fair value hierarchy. Common/Collective Trusts – Investments in common/collective trust funds are valued based on the NAV of units owned, which is based on the current fair value of the funds’ underlying assets. Venture Capital Funds – These funds consist of investments in private equities that are held by limited partnerships following various strategies, including venture capital and corporate finance. The partnerships generally have limited lives of 10 years, after which liquidating distributions will be received. The value is determined based on the NAV of the proportionate share of an ownership interest in partners’ capital. Real Estate Funds – Investments in real estate funds are valued at NAV per share, based on the fair value of the underlying investments. Derivative Financial Instruments – Forward currency contracts are valued at the prevailing forward exchange rate of the underlying currencies, and unrealized gain (loss) is recorded daily. Fixed income futures and options are marked to market daily. Equity index future contracts are valued at the last sales price quoted on the exchange on which they primarily trade. The methods described are intended to produce a fair value calculation that is indicative of net realizable value or reflective of fair values. However, while management believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. We provide more discussion of fair value measurements in Notes 1 and 10. The following tables set forth by level within the fair value hierarchy a summary of the investments in our pension and other postretirement benefit plan trusts measured at fair value on a recurring basis. 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, except for investments measured at NAV as required by ASU 2015-07, which we adopted retrospectively as of January 1, 2016 and discuss in Note 2. There were no changes in the valuation techniques used in recurring fair value measurement. |
Share-based Compensation | Our practice is to satisfy share-based awards by issuing new shares rather than by open-market purchases. We measure and recognize compensation expense for all share-based payment awards made to our employees and directors based on estimated fair values on the date of grant. We recognize compensation costs net of an estimated forfeiture rate (based on historical experience) and recognize the compensation costs for non-qualified stock options and RSAs and RSUs on a straight-line basis over the requisite service period of the award, which is generally three or four years. However, in the year that an employee becomes eligible for retirement, the remaining expense related to the employee’s awards is recognized immediately. Substantially all awards outstanding are classified as equity instruments; therefore, we recognize additional paid in capital as we recognize the compensation expense associated with the awards. SEMPRA ENERGY NON-QUALIFIED STOCK OPTIONS We use a Black-Scholes option-pricing model to estimate the fair value of each non-qualified stock option grant. The use of a valuation model requires us to make certain assumptions about selected model inputs. Expected volatility is calculated based on the historical volatility of Sempra Energy’s stock price. We base the average expected life for options on the contractual term of the option and expected employee exercise and post-termination behavior. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of the grant. SEMPRA ENERGY RESTRICTED STOCK AWARDS AND UNITS We use a Monte-Carlo simulation model to estimate the fair value of our RSAs and RSUs. Our determination of fair value is affected by the historical volatility of the stock price for Sempra Energy and its peer group companies. The valuation also is affected by the risk-free rates of return, and a number of other variables. |
Derivative Financial Instruments | We use derivative instruments primarily to manage exposures arising in the normal course of business. Our principal exposures are commodity market risk, benchmark interest rate risk and foreign exchange rate exposures. Our use of derivatives for these risks is integrated into the economic management of our anticipated revenues, anticipated expenses, assets and liabilities. Derivatives may be effective in mitigating these risks (1) that could lead to declines in anticipated revenues or increases in anticipated expenses, or (2) that our asset values may fall or our liabilities increase. Accordingly, our derivative activity summarized below generally represents an impact that is intended to offset associated revenues, expenses, assets or liabilities that are not included in the tables below. In certain cases, we apply the normal purchase or sale exception to derivative instruments and have other commodity contracts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. In all other cases, we record derivatives at fair value on the 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 (loss) (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the settlements of derivative instruments as operating activities on the Consolidated Statements of Cash Flows. HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated cash flows associated with revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that the future cash flows of a given revenue or expense item may vary, and other criteria. We may designate an interest rate derivative as a fair value hedging instrument if it effectively converts our own debt from a fixed interest rate to a variable rate. The combination of the derivative and debt instrument results in fixing that portion of the fair value of the debt that is related to benchmark interest rates. Designating fair value hedges is dependent on the instrument being used, the effectiveness of the instrument in offsetting changes in the fair value of our debt instruments, and other criteria. ENERGY DERIVATIVES Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business, as follows: ▪ The California Utilities use natural gas and electricity derivatives, for the benefit of customers, with the objective of managing price risk and basis risks, and stabilizing and lowering natural gas and electricity costs. These derivatives include fixed price natural gas and electricity positions, options, and basis risk instruments, which are either exchange-traded or over-the-counter financial instruments, or bilateral physical transactions. This activity is governed by risk management and transacting activity plans that have been filed with and approved by the CPUC. Natural gas and electricity derivative activities are recorded as commodity costs that are offset by regulatory account balances and are recovered in rates. Net commodity cost impacts on the 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, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Consolidated Statements of Operations. ▪ Sempra Mexico, Sempra LNG & Midstream and Sempra Renewables may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: LNG, natural gas transportation and storage, and power generation. Gains and losses associated with undesignated derivatives are recognized in Energy-Related Businesses Revenues or in Cost of Natural Gas, Electric Fuel and Purchased Power on the 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 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. OREIGN CURRENCY DERIVATIVES We utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and joint ventures. These cash flow hedges exchange our Mexican-peso denominated principal and interest payments into the U.S. dollar and swap Mexican variable interest rates for U.S. fixed interest rates. From time to time, Sempra Mexico and its joint ventures may use other foreign currency derivatives to hedge exposures related to cash flows associated with revenues from contracts denominated in Mexican pesos that are indexed to the U.S. dollar. We are also exposed to exchange rate movements at our Mexican subsidiaries and joint ventures, which have U.S. dollar denominated cash balances, receivables, payables and debt (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. They also have deferred income tax assets and liabilities denominated in the Mexican peso, which must be translated to U.S. dollars for financial reporting purposes. In addition, monetary assets and liabilities and certain nonmonetary assets and liabilities are adjusted for Mexican inflation for Mexican income tax purposes. We utilize foreign currency derivatives as a means to manage the risk of exposure to significant fluctuations in our income tax expense and equity earnings from these impacts, however we generally do not hedge our deferred income tax assets and liabilities. In January 2017, we entered into foreign currency derivatives with a notional amount totaling $750 million . In addition, Sempra South American Utilities and its joint ventures use foreign currency derivatives to manage foreign currency rate risk. We discuss these derivatives at Chilquinta Energía’s Eletrans joint venture investment in Note 4. In addition to the amounts noted above, we frequently use commodity derivatives to manage risks associated with the physical locations of contractual obligations and assets, such as natural gas purchases and sales. INTEREST RATE DERIVATIVES We are exposed to interest rates primarily as a result of our current and expected use of financing. The California Utilities, as well as other Sempra Energy subsidiaries and joint ventures, periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. We utilize interest rate swaps typically designated as fair value hedges, as a means to achieve our targeted level of variable rate debt as a percent of total debt. In addition, we may utilize interest rate swaps, typically designated as cash flow hedges, to lock in interest rates on outstanding debt or in anticipation of future financings. Separately, Otay Mesa VIE has entered into interest rate swap agreements, designated as cash flow hedges, to moderate its exposure to interest rate changes. |
Earnings Per Share | Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the year. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The potentially dilutive impact from stock options, RSAs and RSUs is calculated under the treasury stock method. Under this method, proceeds based on the exercise price and unearned compensation are assumed to be used to repurchase shares on the open market at the average market price for the period, reducing the number of potential new shares to be issued and sometimes causing an antidilutive effect. Prior to adoption of ASU 2016-09 as of January 1, 2016, which we discuss in Note 2, excess tax benefits were also assumed to be used to repurchase shares on the open market when applying the treasury stock method. The excess tax benefits are tax deductions we would receive upon the assumed exercise of stock options and assumed vesting of RSAs and RSUs in excess of the deferred income taxes we recorded related to the compensation expense on such stock options, awards and units. Tax shortfalls occur when the assumed tax deductions are less than recorded deferred income taxes. Upon adoption of ASU 2016-09, as a result of the provision to recognize excess tax benefits and shortfalls in earnings, these benefits and shortfalls are no longer included in the calculation of diluted EPS beginning January 1, 2016. |
Concentration of Credit Risk | CONCENTRATION OF CREDIT RISK We maintain credit policies and systems to manage our overall credit risk. These policies include an evaluation of potential counterparties’ financial condition and an assignment of credit limits. These credit limits are established based on risk and return considerations under terms customarily available in the industry. We grant credit to utility customers and counterparties, substantially all of whom are located in our service territory, which covers most of Southern California and a portion of central California for SoCalGas, and all of San Diego County and an adjacent portion of Orange County for SDG&E. We also grant credit to utility customers and counterparties of our other companies providing natural gas or electric services in Mexico, Chile and Peru. As they become operational, projects owned or partially owned by Sempra LNG & Midstream, Sempra Renewables, Sempra South American Utilities and Sempra Mexico place significant reliance on the ability of their suppliers, customers and partners to perform on long-term agreements and on our ability to enforce contract terms in the event of nonperformance. We consider many factors, including the negotiation of supplier and customer agreements, when we evaluate and approve development projects. |
Segment Reporting | 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. |
SCHEDULE I, CONDENSED FINANCI28
SCHEDULE I, CONDENSED FINANCIAL INFORMATION OF PARENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Statements of Operations | SEMPRA ENERGY CONDENSED STATEMENTS OF OPERATIONS (Dollars in millions, except per share amounts) Years ended December 31, 2016 2015 2014 Interest expense $ (277 ) $ (261 ) $ (235 ) Operation and maintenance (81 ) (66 ) (78 ) Other (expense) income, net (2 ) 7 50 Income tax benefit 181 150 133 Loss before equity in earnings of subsidiaries (179 ) (170 ) (130 ) Equity in earnings of subsidiaries, net of income taxes 1,549 1,519 1,291 Net income/earnings $ 1,370 $ 1,349 $ 1,161 Basic earnings per common share $ 5.48 $ 5.43 $ 4.72 Weighted-average number of shares outstanding (thousands) 250,217 248,249 245,891 Diluted earnings per common share $ 5.46 $ 5.37 $ 4.63 Weighted-average number of shares outstanding (thousands) 251,155 250,923 250,655 |
Schedule Of Condensed Statements Of Comprehensive Income | SEMPRA ENERGY CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Years ended December 31, Pretax amount Income tax benefit Net-of-tax amount 2016: Net income $ 1,189 $ 181 $ 1,370 Other comprehensive income (loss): Foreign currency translation adjustments 42 — 42 Financial instruments (6 ) 11 5 Pension and other postretirement benefits (13 ) 4 (9 ) Total other comprehensive income 23 15 38 Comprehensive income $ 1,212 $ 196 $ 1,408 2015: Net income $ 1,199 $ 150 $ 1,349 Other comprehensive income (loss): Foreign currency translation adjustments (260 ) — (260 ) Financial instruments (80 ) 33 (47 ) Pension and other postretirement benefits (3 ) 1 (2 ) Total other comprehensive loss (343 ) 34 (309 ) Comprehensive income $ 856 $ 184 $ 1,040 2014: Net income $ 1,028 $ 133 $ 1,161 Other comprehensive income (loss): Foreign currency translation adjustments (193 ) — (193 ) Financial instruments (106 ) 42 (64 ) Pension and other postretirement benefits (20 ) 8 (12 ) Total other comprehensive loss (319 ) 50 (269 ) Comprehensive income $ 709 $ 183 $ 892 |
Schedule Of Condensed Balance Sheets | SEMPRA ENERGY CONDENSED BALANCE SHEETS (Dollars in millions) December 31, December 31, Assets: Cash and cash equivalents $ 12 $ 4 Due from affiliates 73 62 Other current assets 2 4 Total current assets 87 70 Investments in subsidiaries 17,329 15,586 Due from affiliates — 457 Deferred income taxes 2,570 2,188 Other assets 592 641 Total assets $ 20,578 $ 18,942 Liabilities and shareholders’ equity: Current portion of long-term debt $ 600 $ 752 Due to affiliates 359 332 Income taxes payable 153 42 Other current liabilities 374 310 Total current liabilities 1,486 1,436 Long-term debt 5,100 5,195 Due to affiliates 517 — Other long-term liabilities 524 502 Shareholders’ equity 12,951 11,809 Total liabilities and shareholders’ equity $ 20,578 $ 18,942 |
Schedule of Condensed Statements of Cash Flows | SEMPRA ENERGY CONDENSED STATEMENTS OF CASH FLOWS (Dollars in millions) Years ended December 31, 2016 2015 2014 Net cash used in operating activities $ (178 ) $ (255 ) $ (260 ) Dividends received from subsidiaries 175 350 300 Expenditures for property, plant and equipment (5 ) (43 ) (15 ) Purchase of trust assets — (5 ) (4 ) Decrease (increase) in loans to affiliates, net 457 (457 ) 627 Cash provided by (used in) investing activities 627 (155 ) 908 Common stock dividends paid (686 ) (628 ) (598 ) Issuances of common stock 51 52 56 Repurchases of common stock (56 ) (74 ) (38 ) Issuances of long-term debt 499 1,248 499 Payments on long-term debt (750 ) — (800 ) Increase (decrease) in loans from affiliates, net 504 (230 ) 234 Tax benefit related to share-based compensation — 52 — Other (3 ) (9 ) (4 ) Cash (used in) provided by financing activities (441 ) 411 (651 ) Increase (decrease) in cash and cash equivalents 8 1 (3 ) Cash and cash equivalents, January 1 4 3 6 Cash and cash equivalents, December 31 $ 12 $ 4 $ 3 SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES Financing of build-to-suit property $ — $ 61 $ 61 Common dividends issued in stock 53 55 42 Dividends declared but not paid 189 174 163 See Notes to Condensed Financial Information of Parent. |
Schedule Of Long-term Debt | The following tables show the detail and maturities of long-term debt outstanding: LONG-TERM DEBT (Dollars in millions) December 31, 2016 2015 SDG&E First mortgage bonds (collateralized by plant assets): Bonds at variable rates (1.151% at December 31, 2016) March 9, 2017 $ 140 $ 140 1.65% July 1, 2018(1) 161 161 3% August 15, 2021 350 350 1.914% payable 2015 through February 2022 197 232 3.6% September 1, 2023 450 450 2.5% May 15, 2026 500 — 6% June 1, 2026 250 250 5% payable 2015 through December 2027(2) — 105 5.875% January and February 2034(1) 176 176 5.35% May 15, 2035 250 250 6.125% September 15, 2037 250 250 4% May 1, 2039(1) 75 75 6% June 1, 2039 300 300 5.35% May 15, 2040 250 250 4.5% August 15, 2040 500 500 3.95% November 15, 2041 250 250 4.3% April 1, 2042 250 250 4,349 3,989 Other long-term debt: OMEC LLC variable-rate loan (5.2925% after floating-to-fixed rate swaps effective 2007), payable 2013 through April 2019 (collateralized by OMEC plant assets) 305 315 Capital lease obligations: Purchased-power agreements 239 243 Other 1 1 545 559 4,894 4,548 Current portion of long-term debt (191 ) (50 ) Unamortized discount on long-term debt (11 ) (10 ) Unamortized debt issuance costs (34 ) (33 ) Total SDG&E 4,658 4,455 SoCalGas First mortgage bonds (collateralized by plant assets): 5.45% April 15, 2018 250 250 1.55% June 15, 2018 250 250 3.15% September 15, 2024 500 500 3.2% June 15, 2025 350 350 2.6% June 15, 2026 500 — 5.75% November 15, 2035 250 250 5.125% November 15, 2040 300 300 3.75% September 15, 2042 350 350 4.45% March 15, 2044 250 250 3,000 2,500 Other long-term debt (uncollateralized): 1.875% Notes payable 2016 through May 2026(1) 4 8 5.67% Notes January 18, 2028 5 5 Capital lease obligations — 1 9 14 3,009 2,514 Current portion of long-term debt — (9 ) Unamortized discount on long-term debt (7 ) (7 ) Unamortized debt issuance costs (20 ) (17 ) Total SoCalGas 2,982 2,481 LONG-TERM DEBT (CONTINUED) (Dollars in millions) December 31, 2016 2015 Sempra Energy Other long-term debt (uncollateralized): 6.5% Notes June 1, 2016, including $300 at variable rates after fixed-to-floating rate swaps effective 2011 (4.77% at December 31, 2015) $ — $ 750 2.3% Notes April 1, 2017 600 600 6.15% Notes June 15, 2018 500 500 9.8% Notes February 15, 2019 500 500 1.625% Notes October 7, 2019 500 — 2.4% Notes March 15, 2020 500 500 2.85% Notes November 15, 2020 400 400 2.875% Notes October 1, 2022 500 500 4.05% Notes December 1, 2023 500 500 3.55% Notes June 15, 2024 500 500 3.75% Notes November 15, 2025 350 350 6% Notes October 15, 2039 750 750 Market value adjustments for interest rate swaps, net (3 ) (2 ) Build-to-suit lease(3) 137 136 Sempra South American Utilities Other long-term debt (uncollateralized): Chilquinta Energía – 4.25% Series B Bonds October 30, 2030 185 170 Luz del Sur Bank loans 5.05% to 6.7% payable 2016 through December 2018 75 136 Corporate bonds at 4.75% to 8.75% payable 2014 through September 2029 346 292 Other bonds at 3.77% to 4.61% payable 2020 through May 2022 7 8 Capital lease obligations 6 6 Sempra Mexico Other long-term debt (uncollateralized unless otherwise noted): Notes February 8, 2018 at variable rates (2.66% after floating-to-fixed rate cross-currency swaps effective 2013) 63 75 6.3% Notes February 2, 2023 (4.12% after cross-currency swap) 189 227 Notes at variable rates (4.63% after floating-to-fixed rate swaps effective 2014), payable 2016 through December 2026, collateralized by plant assets 352 — Bank loans including $254 at a weighted-average fixed rate of 6.67%, $187 at variable rates (weighted-average rate of 6.29% after floating-to-fixed rate swaps effective 2014) and $40 at variable rates (3.99% at December 31, 2016), payable 2016 through March 2032, collateralized by plant assets 481 — Sempra Renewables Other long-term debt (collateralized by project assets): Loan at variable rates (2.625% at December 31, 2016) payable 2012 through December 2028 except for $64 at 3.668% after floating-to-fixed rate swaps effective June 2012(1) 84 91 Sempra LNG & Midstream First mortgage bonds (Mobile Gas, collateralized by plant assets): 4.14% September 30, 2021(2) — 20 5% September 30, 2031(2) — 42 Other long-term debt (uncollateralized unless otherwise noted): Notes at 2.87% to 3.51% October 1, 2026(1) 20 19 8.45% Notes payable 2012 through December 2017, collateralized by parent guarantee 6 11 3.1% Notes December 30, 2018, collateralized by plant assets(1)(2) — 5 7,548 7,086 Current portion of long-term debt (722 ) (848 ) Unamortized discount on long-term debt (10 ) (10 ) Unamortized premium on long-term debt 4 5 Unamortized debt issuance costs (31 ) (35 ) Total other Sempra Energy 6,789 6,198 Total Sempra Energy Consolidated $ 14,429 $ 13,134 (1) Callable long-term debt not subject to make-whole provisions. (2) Early redemption or deconsolidated in 2016. (3) We discuss this lease in Note 15. LONG-TERM DEBT (Dollars in millions) December 31, 2016 December 31, 2015 6.5% Notes June 1, 2016, including $300 at variable rates after $ — $ 750 2.3% Notes April 1, 2017 600 600 6.15% Notes June 15, 2018 500 500 9.8% Notes February 15, 2019 500 500 1.625% Notes October 7, 2019 500 — 2.4% Notes March 15, 2020 500 500 2.85% Notes November 15, 2020 400 400 2.875% Notes October 1, 2022 500 500 4.05% Notes December 1, 2023 500 500 3.55% Notes June 15, 2024 500 500 3.75% Notes November 15, 2025 350 350 6% Notes October 15, 2039 750 750 Market value adjustments for interest rate swaps, net (3 ) (2 ) Build-to-suit lease 137 136 5,734 5,984 Current portion of long-term debt (600 ) (752 ) Unamortized discount on long-term debt (10 ) (10 ) Unamortized debt issuance costs (24 ) (27 ) Total long-term debt $ 5,100 $ 5,195 |
SIGNIFICANT ACCOUNTING POLICI29
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |
Schedule Of Receivables Collection Allowances | We record allowances for the collection of trade and other accounts and notes receivable, which include allowances for doubtful customer accounts and for other receivables. We show the changes in these allowances in the table below: COLLECTION ALLOWANCES (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated: Allowances for collection of receivables at January 1 $ 32 $ 34 $ 29 Provisions for uncollectible accounts 23 20 25 Write-offs of uncollectible accounts (20 ) (22 ) (20 ) Allowances for collection of receivables at December 31 $ 35 $ 32 $ 34 SDG&E: Allowances for collection of receivables at January 1 $ 9 $ 7 $ 5 Provisions for uncollectible accounts 6 7 7 Write-offs of uncollectible accounts (7 ) (5 ) (5 ) Allowances for collection of receivables at December 31 $ 8 $ 9 $ 7 SoCalGas: Allowances for collection of receivables at January 1 $ 17 $ 17 $ 12 Provisions for uncollectible accounts 14 11 15 Write-offs of uncollectible accounts (10 ) (11 ) (10 ) Allowances for collection of receivables at December 31 $ 21 $ 17 $ 17 |
Schedule of inventory | The components of inventories by segment are as follows: INVENTORY BALANCES AT DECEMBER 31 (Dollars in millions) Natural gas LNG Materials and supplies Total 2016 2015 2016 2015 2016 2015 2016 2015 SDG&E $ 2 $ 6 $ — $ — $ 78 $ 69 $ 80 $ 75 SoCalGas(1) 11 49 — — 47 30 58 79 Sempra South American Utilities — — — — 27 30 27 30 Sempra Mexico — — 6 3 1 10 7 13 Sempra Renewables — — — — 4 3 4 3 Sempra LNG & Midstream 79 94 3 3 — 1 82 98 Sempra Energy Consolidated $ 92 $ 149 $ 9 $ 6 $ 157 $ 143 $ 258 $ 298 (1) At December 31, 2016 and 2015, SoCalGas’ natural gas inventory for core customers is net of an inventory loss related to the Aliso Canyon natural gas leak, which we discuss in Note 15 |
Schedule of GHG Allowances and Obligations | GHG allowances and obligations on our Consolidated Balance Sheets are as follows: GHG ALLOWANCES AND OBLIGATIONS AT DECEMBER 31 (Dollars in millions) Sempra Energy SDG&E SoCalGas 2016 2015 2016 2015 2016 2015 Assets: Current $ 40 $ 42 $ 16 $ 17 $ 24 $ 19 Noncurrent 295 201 182 141 109 43 Total assets $ 335 $ 243 $ 198 $ 158 $ 133 $ 62 Liabilities: Current $ 40 $ 41 $ 16 $ 17 $ 24 $ 18 Noncurrent 171 91 72 34 96 41 Total liabilities $ 211 $ 132 $ 88 $ 51 $ 120 $ 59 |
Schedule of Property, Plant and Equipment | Accumulated depreciation on our Consolidated Balance Sheets is as follows: ACCUMULATED DEPRECIATION (Dollars in millions) December 31, 2016 2015 SDG&E: Accumulated depreciation: Electric(1) $ 3,873 $ 3,512 Natural gas 721 690 Total SDG&E 4,594 4,202 SoCalGas: Accumulated depreciation of natural gas utility plant in service(2) 5,079 4,810 Accumulated depreciation – other non-utility 13 90 Total SoCalGas 5,092 4,900 Other operating units and parent and other: Accumulated depreciation – other(3) 755 860 Accumulated depreciation of utility electric distribution operations 252 199 1,007 1,059 Total Sempra Energy Consolidated $ 10,693 $ 10,161 (1) Includes accumulated depreciation for assets under capital lease of $39 million and $34 million at December 31, 2016 and 2015 , respectively. Includes $229 million at December 31, 2016 related to SDG&E’s 91 -percent interest in the SWPL transmission line, jointly owned by SDG&E and other utilities. (2) Includes accumulated depreciation for assets under capital lease of $31 million and $29 million at December 31, 2016 and 2015 , respectively. (3) Includes $33 million and $36 million at December 31, 2016 and 2015 , respectively, of accumulated depreciation for utility plant at Ecogas. Includes $35 million and $3 million at December 31, 2015 of accumulated depreciation for utility plant at Mobile Gas and Willmut Gas, respectively. PROPERTY, PLANT AND EQUIPMENT BY MAJOR FUNCTIONAL CATEGORY (Dollars in millions) Property, plant Depreciation rates for 2016 2015 2016 2015 2014 SDG&E: Natural gas operations $ 1,897 $ 1,642 2.40 % 2.52 % 2.72 % Electric distribution 6,497 6,151 3.86 3.79 3.79 Electric transmission(1) 5,152 4,870 2.66 2.62 2.59 Electric generation(2) 1,932 1,891 4.00 3.89 3.86 Other electric(3) 1,059 981 5.66 5.73 7.09 Construction work in progress(1) 1,307 923 NA NA NA Total SDG&E 17,844 16,458 SoCalGas: Natural gas operations(4) 14,428 13,241 3.64 3.83 3.89 Other non-utility 34 110 6.55 3.95 2.88 Construction work in progress 882 820 NA NA NA Total SoCalGas 15,344 14,171 Estimated Weighted average Other operating units and parent (5) : useful lives useful life Land and land rights 381 289 20 to 55 years(7) 33 Machinery and equipment: Utility electric distribution operations 1,519 1,362 12 to 60 years 52 Generating plants 1,874 782 3 to 100 years 32 LNG terminals 1,129 1,124 5 to 43 years 43 Pipelines and storage 3,242 2,311 3 to 55 years 43 Other 235 233 1 to 50 years 12 Construction work in progress 1,488 1,022 NA NA Other(6) 568 448 1 to 80 years 32 10,436 7,571 Total Sempra Energy Consolidated $ 43,624 $ 38,200 (1) At December 31, 2016 , includes $388 million in electric transmission assets and $46 million in construction work in progress related to SDG&E’s 91 -percent interest in the Southwest Powerlink (SWPL) transmission line, jointly owned by SDG&E with other utilities. 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 its share of the project and participates in decisions concerning operations and capital expenditures. (2) Includes capital lease assets of $258 million at both December 31, 2016 and 2015 , primarily related to variable interest entities of which SDG&E is not the primary beneficiary. (3) Includes capital lease assets of $21 million and $20 million at December 31, 2016 and 2015 , respectively. (4) Includes capital lease assets of $32 million and $30 million at December 31, 2016 and 2015 , respectively. (5) Includes $128 million and $142 million at December 31, 2016 and 2015 , respectively, of utility plant, primarily pipelines and other distribution assets, at Ecogas. Includes $204 million and $28 million at December 31, 2015 of utility plant, primarily pipelines and other distribution assets, at Mobile Gas and Willmut Gas, respectively. (6) Includes capital lease assets of $136 million at both December 31, 2016 and 2015 , related to a build-to-suit lease. (7) Estimated useful lives are for land rights. Depreciation expense on our Consolidated Statements of Operations is as follows: DEPRECIATION EXPENSE (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated $ 1,236 $ 1,178 $ 1,126 SDG&E 583 544 512 SoCalGas 474 459 429 |
Schedule Of Capitalized Financing Costs | Interest capitalized and AFUDC are as follows: CAPITALIZED FINANCING COSTS (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated $ 236 $ 201 $ 167 SDG&E 62 51 52 SoCalGas 55 49 34 |
Schedule Of Goodwill | Changes in the carrying amount of goodwill on the Sempra Energy Consolidated Balance Sheets are as follows: GOODWILL (Dollars in millions) Sempra South American Utilities Sempra Mexico Sempra LNG & Midstream Total Balance at December 31, 2014 $ 834 $ 25 $ 72 $ 931 Foreign currency translation(1) (112 ) — — (112 ) Balance at December 31, 2015 722 25 72 819 Acquisition of businesses — 1,590 — 1,590 Sale of business — — (72 ) (72 ) Foreign currency translation(1) 27 — — 27 Balance at December 31, 2016 $ 749 $ 1,615 $ — $ 2,364 (1) We record the offset of this fluctuation to Other Comprehensive Income (Loss). |
Schedule Of Other Intangible Assets | Other Intangible Assets included on the Sempra Energy Consolidated Balance Sheets are as follows: OTHER INTANGIBLE ASSETS (Dollars in millions) Amortization period (years) December 31, 2016 2015 Development rights 50 $ 322 $ 322 Renewable energy transmission and consumption permit 20 154 — Storage rights 46 138 138 Other 10 years to indefinite 18 17 632 477 Less accumulated amortization: Development rights (53 ) (47 ) Storage rights (25 ) (22 ) Other (6 ) (4 ) (84 ) (73 ) $ 548 $ 404 |
Schedule Of Variable Interest Entities | The Consolidated Financial Statements of Sempra Energy and SDG&E include the following amounts associated with Otay Mesa VIE. The amounts are net of eliminations of transactions between SDG&E and Otay Mesa VIE. The captions in the tables below correspond to SDG&E’s Consolidated Balance Sheets and Consolidated Statements of Operations. AMOUNTS ASSOCIATED WITH OTAY MESA VIE (Dollars in millions) December 31, 2016 2015 Cash and cash equivalents $ 6 $ 5 Restricted cash 11 23 Inventories 3 3 Other 2 — Total current assets 22 31 Restricted cash 1 — Property, plant and equipment, net 354 383 Total assets $ 377 $ 414 Current portion of long-term debt $ 10 $ 10 Fixed-price contracts and other derivatives 13 14 Other 5 5 Total current liabilities 28 29 Long-term debt 293 303 Fixed-price contracts and other derivatives 12 23 Deferred credits and other 7 6 Other noncontrolling interest 37 53 Total liabilities and equity $ 377 $ 414 Years ended December 31, 2016 2015 2014 Operating expenses Cost of electric fuel and purchased power $ (79 ) $ (83 ) $ (83 ) Operation and maintenance 29 19 19 Depreciation and amortization 35 26 27 Total operating expenses (15 ) (38 ) (37 ) Operating income 15 38 37 Interest expense (20 ) (19 ) (17 ) (Loss) income before income taxes/Net (loss) income (5 ) 19 20 Losses (earnings) attributable to noncontrolling interest 5 (19 ) (20 ) Earnings attributable to common shares $ — $ — $ — The Consolidated Financial Statements of Sempra Energy include the following amounts associated with these entities. The captions in the tables below correspond to Sempra Energy’s Consolidated Balance Sheet. AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS (Dollars in millions) December 31, 2016 Cash and cash equivalents $ 88 Accounts receivable 3 Total current assets 91 Property, plant and equipment, net 926 Total assets 1,017 Accounts payable 68 Other 7 Total current liabilities 75 Asset retirement obligations 27 Total liabilities 102 Other noncontrolling interests 468 Net assets less other noncontrolling interests $ 447 |
Schedule Of Asset Retirement Obligations | The changes in asset retirement obligations are as follows: CHANGES IN ASSET RETIREMENT OBLIGATIONS (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas 2016 2015 2016 2015 2016 2015 Balance as of January 1(1) $ 2,255 $ 2,190 $ 828 $ 873 $ 1,383 $ 1,276 Accretion expense 101 92 38 40 61 49 Liabilities incurred and acquired 35 1 — — — — Deconsolidation and reclassification(2) (16 ) — — — — — Payments (47 ) (80 ) (46 ) (79 ) — — Revisions(3) 225 52 10 (6 ) 215 58 Balance at December 31(1) $ 2,553 $ 2,255 $ 830 $ 828 $ 1,659 $ 1,383 (1) The current portions of the obligations are included in Other Current Liabilities on the Consolidated Balance Sheets. (2) Deconsolidated $12 million due to the September 2016 sale of EnergySouth and reclassified $4 million to Liabilities Held for Sale on the Sempra Energy Consolidated Balance Sheet at December 31, 2016, as we discuss in Note 3. (3) The revisions are primarily related to revised estimates of cash flows and, additionally in 2016, to changes in the cost of removal rates primarily for natural gas assets based on updated cost studies approved in the final decision in the 2016 General Rate Case. We discuss the 2016 General Rate Case in Note 14. |
Schedule Of Changes In Accumulated Other Comprehensive Income By Component | The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to noncontrolling interests, for the years ended December 31: CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) (Dollars in millions) Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Total accumulated other comprehensive income (loss) Sempra Energy Consolidated: Balance as of December 31, 2013 $ (129 ) $ (26 ) $ (73 ) $ (228 ) OCI before reclassifications (193 ) (70 ) (26 ) (289 ) Amounts reclassified from AOCI — 6 14 20 Net OCI (193 ) (64 ) (12 ) (269 ) Balance as of December 31, 2014 (322 ) (90 ) (85 ) (497 ) OCI before reclassifications (260 ) (57 ) (10 ) (327 ) Amounts reclassified from AOCI — 10 8 18 Net OCI (260 ) (47 ) (2 ) (309 ) Balance as of December 31, 2015 (582 ) (137 ) (87 ) (806 ) OCI before reclassifications 42 (7 ) (15 ) 20 Amounts reclassified from AOCI(2) 13 19 6 38 Net OCI 55 12 (9 ) 58 Balance as of December 31, 2016 $ (527 ) $ (125 ) $ (96 ) $ (748 ) SDG&E: Balance as of December 31, 2013 $ (9 ) $ (9 ) OCI before reclassifications (5 ) (5 ) Amounts reclassified from AOCI 2 2 Net OCI (3 ) (3 ) Balance as of December 31, 2014 (12 ) (12 ) OCI before reclassifications 3 3 Amounts reclassified from AOCI 1 1 Net OCI 4 4 Balance as of December 31, 2015 (8 ) (8 ) OCI before reclassifications (1 ) (1 ) Amounts reclassified from AOCI 1 1 Net OCI — — Balance as of December 31, 2016 $ (8 ) $ (8 ) SoCalGas: Balance as of December 31, 2013 $ (14 ) $ (4 ) $ (18 ) OCI before reclassifications — (3 ) (3 ) Amounts reclassified from AOCI — 3 3 Net OCI — — — Balance as of December 31, 2014 (14 ) (4 ) (18 ) OCI before reclassifications — (1 ) (1 ) Net OCI — (1 ) (1 ) Balance as of December 31, 2015 (14 ) (5 ) (19 ) OCI before reclassifications — (4 ) (4 ) Amounts reclassified from AOCI 1 — 1 Net OCI 1 (4 ) (3 ) Balance as of December 31, 2016 $ (13 ) $ (9 ) $ (22 ) (1) All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. (2) Total AOCI includes $20 million associated with the sale of noncontrolling interests, discussed below in “Sale of Noncontrolling Interests – Sempra Mexico – Follow-On Offerings,” which does not impact the Consolidated Statement of Comprehensive Income. |
Schedule Of Reclassifications Out Of Accumulated Other Comprehensive Income | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Details about accumulated other comprehensive income (loss) components Amounts reclassified from accumulated other comprehensive income (loss) Affected line item on Consolidated Statements of Operations Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated: Financial instruments: Interest rate and foreign exchange instruments $ 17 $ 18 $ 21 Interest Expense Interest rate instruments — — (3 ) Gain on Sale of Assets Interest rate instruments 10 12 10 Equity Earnings, Before Income Tax Interest rate and foreign exchange instruments 7 — — Remeasurement of Equity Method Investment Interest rate and foreign exchange instruments 5 13 — Equity Earnings, Net of Income Tax Commodity contracts not subject to rate recovery (6 ) (14 ) (8 ) Revenues: Energy-Related Businesses Total before income tax 33 29 20 (6 ) (4 ) (3 ) Income Tax Expense Net of income tax 27 25 17 (15 ) (15 ) (11 ) Earnings Attributable to Noncontrolling Interests $ 12 $ 10 $ 6 Pension and other postretirement benefits: Amortization of actuarial loss $ 10 $ 14 $ 23 See note (1) below Prior service credit 1 — — Total before income tax 11 14 23 (5 ) (6 ) (9 ) Income Tax Expense Net of income tax $ 6 $ 8 $ 14 Total reclassifications for the period, net of tax $ 18 $ 18 $ 20 SDG&E: Financial instruments: Interest rate instruments $ 12 $ 12 $ 11 Interest Expense (12 ) (12 ) (11 ) Earnings Attributable to Noncontrolling Interest $ — $ — $ — Pension and other postretirement benefits: Amortization of actuarial loss $ 1 $ 1 $ 3 See note (1) below — — (1 ) Income Tax Expense Net of income tax $ 1 $ 1 $ 2 Total reclassifications for the period, net of tax $ 1 $ 1 $ 2 SoCalGas: Financial instruments: Interest rate instruments $ 1 $ 1 $ 1 Interest Expense — (1 ) (1 ) Income Tax Expense Net of income tax $ 1 $ — $ — Pension and other postretirement benefits: Amortization of actuarial loss $ — $ — $ 5 See note (1) below — — (2 ) Income Tax Expense Net of income tax $ — $ — $ 3 Total reclassifications for the period, net of tax $ 1 $ — $ 3 (1) Amounts are included in the computation of net periodic benefit cost (see “Net Periodic Benefit Cost” in Note 7). |
Schedule Of Noncontrolling Interests | At December 31, 2016 and 2015 , 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 Consolidated Balance Sheets: OTHER NONCONTROLLING INTERESTS (Dollars in millions) Percent ownership held by others Equity held by noncontrolling interests December 31, December 31, 2016 2015 2016 2015 SDG&E: Otay Mesa VIE 100 % 100 % $ 37 $ 53 Sempra South American Utilities: Chilquinta Energía subsidiaries(1) 23.1 - 43.4 23.5 - 43.4 22 21 Luz del Sur 16.4 16.4 173 164 Tecsur 9.8 9.8 4 4 Sempra Mexico: IEnova, S.A.B. de C.V. 33.6 18.9 1,524 468 Sempra Renewables: Tax equity arrangement – wind(2) NA — 92 — Tax equity arrangement – solar(2) NA — 376 — Sempra LNG & Midstream: Bay Gas Storage Company, Ltd. 9.1 9.1 27 25 Liberty Gas Storage, LLC 23.3 23.2 14 14 Southern Gas Transmission Company 49.0 49.0 1 1 Total Sempra Energy $ 2,270 $ 750 (1) Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries. (2) Net income or loss attributable to the noncontrolling interests is computed using the HLBV method and is not based on ownership percentages. |
Schedule Of Utilities Revenues | The table below shows the total utilities revenues in Sempra Energy’s Consolidated Statements of Operations for each of the last three years. The revenues include amounts for services rendered but unbilled (approximately one-half month’s deliveries) at the end of each year. TOTAL UTILITIES REVENUES AT SEMPRA ENERGY CONSOLIDATED(1) (Dollars in millions) Years ended December 31, 2016 2015 2014 Electric revenues $ 5,211 $ 5,158 $ 5,209 Natural gas revenues 4,050 4,096 4,549 Total $ 9,261 $ 9,254 $ 9,758 (1) Excludes intercompany revenues. |
Schedule of Related Party Transactions | Amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas are as follows: AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES (Dollars in millions) December 31, 2016 2015 Sempra Energy Consolidated: Total due from various unconsolidated affiliates – current $ 26 $ 6 Sempra South American Utilities(1): Eletrans S.A. and Eletrans II S.A. – 4% Note(2) $ 96 $ 72 Other related party receivables 1 — Sempra Mexico(1): Affiliate of joint venture with Ductos y Energéticos del Norte: Note due November 14, 2018(3) 2 3 Note due November 14, 2018(3) 44 42 Note due November 14, 2018(3) 35 34 Note due November 14, 2018(3) 9 8 Energía Sierra Juárez – Note due June 15, 2018(4) 14 24 Sempra LNG & Midstream – Cameron LNG JV — 3 Total due from unconsolidated affiliates – noncurrent $ 201 $ 186 Total due to various unconsolidated affiliates – current $ (11 ) $ (14 ) SDG&E: Sempra Energy(5) $ 3 $ — Various affiliates 1 1 Total due from various unconsolidated affiliates – current $ 4 $ 1 Sempra Energy $ — $ (34 ) SoCalGas (8 ) (13 ) Various affiliates (7 ) (8 ) Total due to unconsolidated affiliates – current $ (15 ) $ (55 ) Income taxes due from Sempra Energy(6) $ 159 $ 28 SoCalGas: Sempra Energy(7) $ — $ 35 SDG&E 8 13 Total due from unconsolidated affiliates – current $ 8 $ 48 Sempra Energy $ (28 ) $ — Total due to unconsolidated affiliates – current $ (28 ) $ — Income taxes due from Sempra Energy(6) $ 5 $ 1 (1) Amounts include principal balances plus accumulated interest outstanding. (2) U.S. dollar-denominated loan, at a fixed interest rate with no stated maturity date, to provide project financing for the construction of transmission lines at Eletrans S.A. and Eletrans II S.A. (collectively, Eletrans), which is a joint venture of Chilquinta Energía. (3) U.S. dollar-denominated loan, at a variable interest rate based on the 30-day LIBOR plus 450 basis points ( 5.27 percent at December 31, 2016 ), to finance the Los Ramones Norte pipeline project. (4) U.S. dollar-denominated loan, at a variable interest rate based on the 30-day LIBOR plus 637.5 basis points ( 7.15 percent at December 31, 2016 ), to finance the first phase of the Energía Sierra Juárez wind project, which is a joint venture of IEnova. (5) At December 31, 2016, net receivable included outstanding advances to Sempra Energy of $31 million at an interest rate of 0.68% . (6) SDG&E and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from each company having always filed a separate return. (7) At December 31, 2015, net receivable included outstanding advances to Sempra Energy of $50 million at an interest rate of 0.11% . Revenues and cost of sales from unconsolidated affiliates are as follows: REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES (Dollars in millions) Years ended December 31, 2016 2015 2014 Revenues: Sempra Energy Consolidated $ 25 $ 26 $ 13 SDG&E 7 10 13 SoCalGas 76 75 69 Cost of Sales: Sempra Energy Consolidated $ 72 $ 107 $ 78 SDG&E 64 49 17 |
Schedule Of Other Income (Expense) | Other Income, Net on the Consolidated Statements of Operations consists of the following: OTHER INCOME, NET (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated: Allowance for equity funds used during construction $ 116 $ 107 $ 106 Investment gains(1) 23 3 27 Losses on interest rate and foreign exchange instruments, net (32 ) (4 ) (15 ) Foreign currency transaction losses (1 ) (7 ) (15 ) Sale of other investments 5 11 2 Electrical infrastructure relocation income(2) 10 7 21 Regulatory interest, net(3) 4 3 6 Sundry, net 7 6 5 Total $ 132 $ 126 $ 137 SDG&E: Allowance for equity funds used during construction $ 46 $ 37 $ 37 Regulatory interest, net(3) 3 3 6 Sundry, net 1 (4 ) (3 ) Total $ 50 $ 36 $ 40 SoCalGas: Allowance for equity funds used during construction $ 40 $ 36 $ 26 Regulatory interest, net(3) 1 — — Sundry, net (9 ) (6 ) (6 ) Total $ 32 $ 30 $ 20 (1) Represents investment gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans, recorded in Operation and Maintenance on the Consolidated Statements of Operations. (2) Income at Luz del Sur associated with the relocation of electrical infrastructure. (3) Interest on regulatory balancing accounts. |
ACQUISTION AND DIVESTITURE AC30
ACQUISTION AND DIVESTITURE ACTIVITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions Table | The following table summarizes the total fair value of the 2016 business combinations at Sempra Mexico described below and the values of the assets acquired and liabilities assumed at the dates of acquisition: PURCHASE PRICE ALLOCATIONS (Dollars in millions) GdC Ventika At September 26, 2016(1) At December 14, 2016 Fair value of business combination: Cash consideration (fair value of total consideration) $ 1,144 $ 310 Fair value of equity interest in GdC immediately prior to acquisition 1,144 — Total fair value of business combination $ 2,288 $ 310 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 66 $ — Restricted cash — 68 Accounts receivable(2) 39 14 Other current assets 6 1 Other intangible assets — 154 Deferred income taxes — 23 Regulatory assets 33 — Property, plant and equipment 1,248 673 Other noncurrent assets 1 3 Short-term debt — (125 ) Accounts payable (11 ) (1 ) Due to unconsolidated affiliates (3 ) — Current portion of long-term debt (49 ) (7 ) Fixed-price contracts and other derivatives, current (6 ) (4 ) Other current liabilities (20 ) (8 ) Long-term debt (315 ) (478 ) Asset retirement obligations (5 ) (2 ) Deferred income taxes (127 ) (120 ) Fixed-price contracts and other derivatives, noncurrent (19 ) (10 ) Other noncurrent liabilities (11 ) — Total identifiable net assets 827 181 Goodwill 1,461 129 Total fair value of business combination $ 2,288 $ 310 (1) During the fourth quarter of 2016, we received additional information regarding GdC’s deferred income taxes as of the acquisition date, primarily related to basis differences in GdC’s property, plant and equipment. As a result, we recorded measurement period adjustments that resulted in a net increase to goodwill of $86 million , an increase in deferred income tax liabilities of $119 million and $33 million of regulatory assets related to deferred income taxes on AFUDC. (2) We expect acquired accounts receivable to be substantially realizable in cash. Accounts receivable are net of negligible collection allowances. |
Schedule of Proforma Information Table | The following table presents unaudited pro forma information for the years ended December 31, 2016 and 2015, combining the historical results of operations of Sempra Energy, GdC and Ventika as though the acquisitions occurred on January 1, 2015. The pro forma information is not necessarily indicative of results that would have been achieved had the businesses been combined during the periods presented or the results that we will experience going forward. UNAUDITED PRO FORMA INFORMATION – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Years ended December 31, 2016 2015 Revenues $ 10,463 $ 10,473 Net income 1,145 1,938 Earnings 1,058 1,641 |
Schedule Of Assets Held for Sale and Deconsolidation of Subsidiaries Table | At December 31, 2016, the carrying amounts of the major classes of assets and related liabilities held for sale associated with TdM are as follows: ASSETS HELD FOR SALE AT DECEMBER 31, 2016 (Dollars in millions) Termoeléctrica de Mexicali Inventories $ 9 Other current assets 30 Deferred income taxes 21 Property, plant and equipment, net 120 Other noncurrent assets 21 Total assets held for sale $ 201 Accounts payable $ 2 Other current liabilities 5 Deferred income taxes 14 Asset retirement obligations 4 Other noncurrent liabilities 22 Total liabilities held for sale $ 47 The following table summarizes the deconsolidation of the following previously wholly owned subsidiaries: 2016: ▪ EnergySouth 2014: ▪ Energía Sierra Juárez ▪ Broken Bow 2 Wind ▪ Copper Mountain Solar 3 ▪ Cameron LNG, LLC DECONSOLIDATION OF SUBSIDIARIES (Dollars in millions) Years ended December 31, 2016 2014 Proceeds, net of transaction costs $ 304 $ 152 Cash (2 ) (10 ) Restricted cash — (5 ) Inventory (3 ) — Other current assets (14 ) (23 ) Regulatory assets (12 ) — Goodwill (72 ) — Property, plant and equipment, net (199 ) (1,557 ) Other noncurrent assets (53 ) (65 ) Accounts payable and accrued expenses 12 188 Due to affiliates — 39 Other current liabilities 13 — Long-term debt, including current portion 67 251 Deferred income taxes 36 — Regulatory liabilities 23 — Asset retirement obligations 12 — Other noncurrent liabilities 18 12 Accumulated other comprehensive income — (7 ) Gain on sale of business and equity interests(1) (130 ) (60 ) (Increase) in equity method investments upon deconsolidation $ — $ (1,085 ) (1) Included in Gain on Sale of Assets on our Consolidated Statements of Operations. |
INVESTMENTS IN UNCONSOLIDATED31
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Schedule Of Equity Method And Other Investments | We provide the carrying value of our investments and earnings (losses) on these investments below: EQUITY METHOD AND OTHER INVESTMENT BALANCES (Dollars in millions) December 31, 2016 2015 Sempra South American Utilities: Eletrans(1) $ (8 ) $ (12 ) Sempra Mexico: Ductos y Energéticos del Norte 42 — Energía Sierra Juárez(2) 38 30 Gasoductos de Chihuahua(3) — 489 Infraestructura Marina del Golfo 100 — Sempra Renewables: Wind: Auwahi Wind 41 44 Broken Bow 2 Wind 35 41 Cedar Creek 2 Wind 75 75 Flat Ridge 2 Wind 271 275 Fowler Ridge 2 Wind 43 46 Mehoopany Wind 92 92 Solar: California solar partnership 113 120 Copper Mountain Solar 2 33 32 Copper Mountain Solar 3 42 44 Mesquite Solar 1 86 86 Other 13 — Sempra LNG & Midstream: Cameron LNG JV(4) 997 983 Rockies Express Pipeline LLC(5) — 477 Parent and other: RBS Sempra Commodities LLP 67 67 Total equity method investments 2,080 2,889 Other 17 16 Total $ 2,097 $ 2,905 (1) Includes losses on forward exchange contracts entered into to manage the foreign currency exchange rate risk of the Chilean Unidad de Fomento (CLF) relative to the U.S. dollar, related to certain construction commitments that are denominated in CLF. The contracts settle based on anticipated payments to vendors, generally monthly, ending in July 2018. (2) The carrying value of our equity method investment is $12 million higher than the underlying equity in the net assets of the investee due to the remeasurement of our retained investment to fair value. (3) The carrying value of our equity method investment was $65 million higher than the underlying equity in the net assets of the investee due to equity method goodwill at December 31, 2015. (4) The carrying value of our equity method investment is $190 million and $143 million higher than the underlying equity in the net assets of the investee at December 31, 2016 and 2015 , respectively, primarily due to guarantees, which we discuss below, and interest capitalized on the investment, as the joint venture has not commenced its planned principal operations. (5) The carrying value of our equity method investment at December 31, 2015 was $357 million lower than the underlying equity in the net assets of the investee due to an impairment charge recorded in 2012. EARNINGS (LOSSES) FROM EQUITY METHOD INVESTMENTS (Dollars in millions) Years ended December 31, 2016 2015 2014 Earnings (losses) recorded before income tax: Sempra Renewables: Wind: Auwahi Wind $ 4 $ 4 $ 4 Broken Bow 2 Wind (2 ) (2 ) — Cedar Creek 2 Wind (2 ) (6 ) (3 ) Flat Ridge 2 Wind (7 ) (12 ) (7 ) Fowler Ridge 2 Wind 4 4 2 Mehoopany Wind — (1 ) (1 ) Solar: California solar partnership 7 6 6 Copper Mountain Solar 2 6 7 3 Copper Mountain Solar 3 8 8 2 Mesquite Solar 1 17 16 14 Other (1 ) — — Sempra LNG & Midstream: Cameron LNG JV (2 ) 5 2 Rockies Express Pipeline LLC (26 ) 79 60 Parent and other: RBS Sempra Commodities LLP — (4 ) (2 ) Other — — 1 $ 6 $ 104 $ 81 Earnings (losses) recorded net of income tax(1): Sempra South American Utilities: Eletrans $ 3 $ (4 ) $ (4 ) Sempra Mexico: Ductos y Energéticos del Norte 5 — — Energía Sierra Juárez 6 6 3 Gasoductos de Chihuahua 64 83 39 $ 78 $ 85 $ 38 (1) As the earnings (losses) from these investments are recorded net of income tax, they are presented below the income tax expense line, so as not to impact our effective income tax rate . |
Schedule of Summarized Financial Information | We present summarized financial information below, aggregated for all of our equity method investments for the periods in which we were invested in the entity. The amounts below represent the aggregate financial position and results of operations of 100 percent of each of Sempra Energy’s equity method investments. SUMMARIZED FINANCIAL INFORMATION (Dollars in millions) Years ended December 31, 2016(1) 2015 2014 Gross revenues $ 1,079 $ 1,533 $ 1,296 Operating expense (726 ) (845 ) (749 ) Income from operations 353 688 547 Interest expense (127 ) (312 ) (298 ) Net income/Earnings(2) 252 440 291 At December 31, 2016(1) 2015 Current assets $ 704 $ 750 Noncurrent assets 9,970 15,112 Current liabilities 629 859 Noncurrent liabilities 6,627 7,862 (1) On September 26, 2016, IEnova completed the acquisition of PEMEX’s 50-percent interest in GdC, increasing its ownership percentage to 100 percent, and on May 9, 2016, Sempra LNG & Midstream sold its 25-percent interest in Rockies Express. At December 31, 2016, GdC and Rockies Express are no longer equity method investments. (2) Except for our investments in South America and Mexico, there was no income tax recorded by the entities, as they are primarily domestic partnerships. |
DEBT AND CREDIT FACILITIES (Tab
DEBT AND CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | CREDIT FACILITIES IN SOUTH AMERICA AND MEXICO (U.S. dollar equivalent in millions) At December 31, 2016 Denominated in Total facility Amount Available unused credit Sempra South American Utilities(1): Peru(2) Peruvian sol $ 392 $ 179 (3) $ 213 Chile Chilean peso 113 — 113 Sempra Mexico: 5-year revolver expiring in August 2020 with a syndicate of eight lenders U.S. dollar 1,170 446 724 Total $ 1,675 $ 625 $ 1,050 (1) The credit facilities were entered into to finance working capital and for general corporate purposes and expire between 2017 and 2019. (2) The Peruvian facilities require a debt to equity ratio of no more than 170 percent , with which Peru is in compliance at December 31, 2016. (3) Includes bank guarantees of $18 million . PRIMARY U.S. COMMITTED LINES OF CREDIT (Dollars in millions) At December 31, 2016 Total facility Commercial paper outstanding Letters of credit outstanding Available unused credit Sempra Energy(1) $ 1,000 $ — $ 65 $ 935 Sempra Global(2) 2,335 1,181 — 1,154 California Utilities(3): SDG&E 750 — — 750 SoCalGas 750 62 — 688 Less: subject to a combined limit of $1 billion for both utilities (500 ) — — (500 ) 1,000 62 — 938 Total $ 4,335 $ 1,243 $ 65 $ 3,027 (1) The facility also provides for issuance of up to $400 million of letters of credit on behalf of Sempra Energy with the amount of borrowings otherwise available under the facility reduced by the amount of outstanding letters of credit. (2) Sempra Energy guarantees Sempra Global’s obligations under the credit facility. (3) The facility also provides for the issuance of letters of credit on behalf of each utility subject to a combined letter of credit commitment of $250 million for both utilities. The amount of borrowings otherwise available under the facility is reduced by the amount of outstanding letters of credit. |
Schedule Of Long-term Debt | The following tables show the detail and maturities of long-term debt outstanding: LONG-TERM DEBT (Dollars in millions) December 31, 2016 2015 SDG&E First mortgage bonds (collateralized by plant assets): Bonds at variable rates (1.151% at December 31, 2016) March 9, 2017 $ 140 $ 140 1.65% July 1, 2018(1) 161 161 3% August 15, 2021 350 350 1.914% payable 2015 through February 2022 197 232 3.6% September 1, 2023 450 450 2.5% May 15, 2026 500 — 6% June 1, 2026 250 250 5% payable 2015 through December 2027(2) — 105 5.875% January and February 2034(1) 176 176 5.35% May 15, 2035 250 250 6.125% September 15, 2037 250 250 4% May 1, 2039(1) 75 75 6% June 1, 2039 300 300 5.35% May 15, 2040 250 250 4.5% August 15, 2040 500 500 3.95% November 15, 2041 250 250 4.3% April 1, 2042 250 250 4,349 3,989 Other long-term debt: OMEC LLC variable-rate loan (5.2925% after floating-to-fixed rate swaps effective 2007), payable 2013 through April 2019 (collateralized by OMEC plant assets) 305 315 Capital lease obligations: Purchased-power agreements 239 243 Other 1 1 545 559 4,894 4,548 Current portion of long-term debt (191 ) (50 ) Unamortized discount on long-term debt (11 ) (10 ) Unamortized debt issuance costs (34 ) (33 ) Total SDG&E 4,658 4,455 SoCalGas First mortgage bonds (collateralized by plant assets): 5.45% April 15, 2018 250 250 1.55% June 15, 2018 250 250 3.15% September 15, 2024 500 500 3.2% June 15, 2025 350 350 2.6% June 15, 2026 500 — 5.75% November 15, 2035 250 250 5.125% November 15, 2040 300 300 3.75% September 15, 2042 350 350 4.45% March 15, 2044 250 250 3,000 2,500 Other long-term debt (uncollateralized): 1.875% Notes payable 2016 through May 2026(1) 4 8 5.67% Notes January 18, 2028 5 5 Capital lease obligations — 1 9 14 3,009 2,514 Current portion of long-term debt — (9 ) Unamortized discount on long-term debt (7 ) (7 ) Unamortized debt issuance costs (20 ) (17 ) Total SoCalGas 2,982 2,481 LONG-TERM DEBT (CONTINUED) (Dollars in millions) December 31, 2016 2015 Sempra Energy Other long-term debt (uncollateralized): 6.5% Notes June 1, 2016, including $300 at variable rates after fixed-to-floating rate swaps effective 2011 (4.77% at December 31, 2015) $ — $ 750 2.3% Notes April 1, 2017 600 600 6.15% Notes June 15, 2018 500 500 9.8% Notes February 15, 2019 500 500 1.625% Notes October 7, 2019 500 — 2.4% Notes March 15, 2020 500 500 2.85% Notes November 15, 2020 400 400 2.875% Notes October 1, 2022 500 500 4.05% Notes December 1, 2023 500 500 3.55% Notes June 15, 2024 500 500 3.75% Notes November 15, 2025 350 350 6% Notes October 15, 2039 750 750 Market value adjustments for interest rate swaps, net (3 ) (2 ) Build-to-suit lease(3) 137 136 Sempra South American Utilities Other long-term debt (uncollateralized): Chilquinta Energía – 4.25% Series B Bonds October 30, 2030 185 170 Luz del Sur Bank loans 5.05% to 6.7% payable 2016 through December 2018 75 136 Corporate bonds at 4.75% to 8.75% payable 2014 through September 2029 346 292 Other bonds at 3.77% to 4.61% payable 2020 through May 2022 7 8 Capital lease obligations 6 6 Sempra Mexico Other long-term debt (uncollateralized unless otherwise noted): Notes February 8, 2018 at variable rates (2.66% after floating-to-fixed rate cross-currency swaps effective 2013) 63 75 6.3% Notes February 2, 2023 (4.12% after cross-currency swap) 189 227 Notes at variable rates (4.63% after floating-to-fixed rate swaps effective 2014), payable 2016 through December 2026, collateralized by plant assets 352 — Bank loans including $254 at a weighted-average fixed rate of 6.67%, $187 at variable rates (weighted-average rate of 6.29% after floating-to-fixed rate swaps effective 2014) and $40 at variable rates (3.99% at December 31, 2016), payable 2016 through March 2032, collateralized by plant assets 481 — Sempra Renewables Other long-term debt (collateralized by project assets): Loan at variable rates (2.625% at December 31, 2016) payable 2012 through December 2028 except for $64 at 3.668% after floating-to-fixed rate swaps effective June 2012(1) 84 91 Sempra LNG & Midstream First mortgage bonds (Mobile Gas, collateralized by plant assets): 4.14% September 30, 2021(2) — 20 5% September 30, 2031(2) — 42 Other long-term debt (uncollateralized unless otherwise noted): Notes at 2.87% to 3.51% October 1, 2026(1) 20 19 8.45% Notes payable 2012 through December 2017, collateralized by parent guarantee 6 11 3.1% Notes December 30, 2018, collateralized by plant assets(1)(2) — 5 7,548 7,086 Current portion of long-term debt (722 ) (848 ) Unamortized discount on long-term debt (10 ) (10 ) Unamortized premium on long-term debt 4 5 Unamortized debt issuance costs (31 ) (35 ) Total other Sempra Energy 6,789 6,198 Total Sempra Energy Consolidated $ 14,429 $ 13,134 (1) Callable long-term debt not subject to make-whole provisions. (2) Early redemption or deconsolidated in 2016. (3) We discuss this lease in Note 15. LONG-TERM DEBT (Dollars in millions) December 31, 2016 December 31, 2015 6.5% Notes June 1, 2016, including $300 at variable rates after $ — $ 750 2.3% Notes April 1, 2017 600 600 6.15% Notes June 15, 2018 500 500 9.8% Notes February 15, 2019 500 500 1.625% Notes October 7, 2019 500 — 2.4% Notes March 15, 2020 500 500 2.85% Notes November 15, 2020 400 400 2.875% Notes October 1, 2022 500 500 4.05% Notes December 1, 2023 500 500 3.55% Notes June 15, 2024 500 500 3.75% Notes November 15, 2025 350 350 6% Notes October 15, 2039 750 750 Market value adjustments for interest rate swaps, net (3 ) (2 ) Build-to-suit lease 137 136 5,734 5,984 Current portion of long-term debt (600 ) (752 ) Unamortized discount on long-term debt (10 ) (10 ) Unamortized debt issuance costs (24 ) (27 ) Total long-term debt $ 5,100 $ 5,195 |
Schedule of Maturities of Long-term Debt | MATURITIES OF LONG-TERM DEBT(1) (Dollars in millions) SDG&E SoCalGas Other Sempra Energy Total Sempra Energy Consolidated 2017 $ 186 $ — $ 719 $ 905 2018 207 500 707 1,414 2019 321 — 1,096 1,417 2020 36 — 996 1,032 2021 385 — 113 498 Thereafter 3,519 2,509 3,777 9,805 Total $ 4,654 $ 3,009 $ 7,408 $ 15,071 (1) Excludes capital lease obligations, build-to-suit lease, market value adjustments for interest rate swaps, discounts, premiums and debt issuance costs. |
Schedule Of Callable Long Term Debt | At the option of Sempra Energy, SDG&E and SoCalGas, certain debt at December 31, 2016 is callable subject to premiums: CALLABLE LONG-TERM DEBT (Dollars in millions) SDG&E SoCalGas Other Total Not subject to make-whole provisions $ 412 $ 4 $ 104 $ 520 Subject to make-whole provisions 3,797 3,005 6,042 12,844 |
Schedule of Long-term Debt Acquired | The long-term debt bears interest as follows: INTEREST RATES ON VENTIKA LOANS AT DECEMBER 31, 2016 (Dollars in millions) Weighted-average Amount outstanding Stated rate Margin(1) Total rate Fixed rate loans $ 254 3.64% 3.03% 6.67% Variable rate loans, hedged 187 3.26% (2) 3.03% 6.29% Variable rate loans, unhedged 40 LIBOR 3.03% 3.99% Total variable rate loans 227 Total long-term debt $ 481 6.30% (1) Margin varies between 3.03 percent to 3.93 percent over the term of the loan. (2) Fixed LIBOR component after floating-to-fixed interest rate swap. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of net U.S. statutory federal income tax rates to the effective income tax rates is as follows: RECONCILIATION OF FEDERAL INCOME TAX RATES TO EFFECTIVE INCOME TAX RATES Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated: U.S. federal statutory income tax rate 35 % 35 % 35 % Utility depreciation 4 5 5 U.S. tax on repatriation of foreign earnings (1 ) 1 2 State income taxes, net of federal income tax benefit 1 1 — Utility repairs expenditures (4 ) (5 ) (5 ) Tax credits (3 ) (4 ) (4 ) Self-developed software expenditures (3 ) (3 ) (3 ) Resolution of prior years’ income tax items — (3 ) (1 ) Non-U.S. earnings taxed at lower statutory income tax rates (3 ) (2 ) (2 ) Allowance for equity funds used during construction (2 ) (2 ) (2 ) Foreign exchange and inflation effects (2 ) (2 ) (2 ) Share-based compensation (2 ) — — International tax reform 1 — (1 ) Other, net — (1 ) (2 ) Effective income tax rate 21 % 20 % 20 % SDG&E: U.S. federal statutory income tax rate 35 % 35 % 35 % State income taxes, net of federal income tax benefit 5 5 5 Depreciation 5 4 4 SONGS tax regulatory asset write-off — — 2 Repairs expenditures (4 ) (4 ) (4 ) Self-developed software expenditures (3 ) (3 ) (3 ) Allowance for equity funds used during construction (2 ) (2 ) (2 ) Resolution of prior years’ income tax items (1 ) (2 ) (2 ) Variable interest entity — (1 ) (1 ) Share-based compensation (1 ) — — Other, net (1 ) — — Effective income tax rate 33 % 32 % 34 % SoCalGas: U.S. federal statutory income tax rate 35 % 35 % 35 % Depreciation 9 8 8 State income taxes, net of federal income tax benefit 2 4 4 Repairs expenditures (9 ) (10 ) (9 ) Self-developed software expenditures (6 ) (6 ) (5 ) Resolution of prior years’ income tax items 2 (3 ) (2 ) Allowance for equity funds used during construction (2 ) (2 ) (2 ) Share-based compensation (1 ) — — Other, net (1 ) (1 ) — Effective income tax rate 29 % 25 % 29 % |
Schedule Of Geographic Components Of Income Before Income Taxes And Equity Earnings Of Certain Unconsolidated Subsidiaries | The geographic components of Income Before Income Taxes and Equity Earnings of Certain Unconsolidated Subsidiaries at Sempra Energy Consolidated are as follows: GEOGRAPHIC COMPONENTS (Dollars in millions) Pretax book income Years ended December 31, 2016(1) 2015 2014 U.S. $ 773 $ 1,189 $ 1,014 Non-U.S. 1,057 515 510 Total $ 1,830 $ 1,704 $ 1,524 (1) U.S. pretax book income decreased in 2016 at the California Utilities primarily due to the reallocation of prior years’ income tax benefits generated from income tax repairs deductions to ratepayers pursuant to the 2016 GRC FD, as we discuss in Note 14; at Sempra LNG & Midstream for the loss on permanent release of pipeline capacity, as we discuss in Note 15; and the impairment charge related to the investment in Rockies Express, as we discuss in Note 3. Non-U.S. pretax book income increased in 2016 primarily due to the noncash gain associated with the remeasurement of our equity interest in GdC, as we discuss in Note 3. |
Schedule Of Components Of Income Tax Expense | The components of income tax expense are as follows: INCOME TAX EXPENSE (BENEFIT) (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated: Current: U.S. federal $ — $ 3 $ (10 ) U.S. state 1 (24 ) (7 ) Non-U.S. 171 123 171 Total 172 102 154 Deferred: U.S. federal 78 242 237 U.S. state 9 34 4 Non-U.S. 135 (32 ) (91 ) Total 222 244 150 Deferred investment tax credits (5 ) (5 ) (4 ) Total income tax expense $ 389 $ 341 $ 300 SDG&E: Current: U.S. federal $ — $ 12 $ (5 ) U.S. state 22 77 52 Total 22 89 47 Deferred: U.S. federal 223 233 220 U.S. state 38 (35 ) 5 Total 261 198 225 Deferred investment tax credits (3 ) (3 ) (2 ) Total income tax expense $ 280 $ 284 $ 270 SoCalGas: Current: U.S. federal $ — $ (1 ) $ 2 U.S. state 40 12 7 Total 40 11 9 Deferred: U.S. federal 123 122 117 U.S. state (18 ) 7 15 Total 105 129 132 Deferred investment tax credits (2 ) (2 ) (2 ) Total income tax expense $ 143 $ 138 $ 139 |
Schedule Of Components Of Deferred Tax Assets And Liabilities | We show the components of deferred income taxes at December 31 for Sempra Energy Consolidated, SDG&E and SoCalGas in the tables below: DEFERRED INCOME TAXES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) December 31, 2016 2015 Deferred income tax liabilities: Differences in financial and tax bases of fixed assets, investments and other assets(1) $ 6,111 $ 5,283 Regulatory balancing accounts 783 745 Property taxes 63 61 Other deferred income tax liabilities 143 100 Total deferred income tax liabilities 7,100 6,189 Deferred income tax assets: Tax credits 431 381 Net operating losses 2,304 1,856 Compensation-related items 252 252 Postretirement benefits 434 446 Other deferred income tax assets 87 179 Accrued expenses not yet deductible 112 72 Deferred income tax assets before valuation allowances 3,620 3,186 Less: valuation allowances 31 34 Total deferred income tax assets 3,589 3,152 Net deferred income tax liability(2) $ 3,511 $ 3,037 (1) In addition to the financial over tax basis differences in fixed assets, the amount also includes financial over tax basis differences in various interests in partnerships and certain subsidiaries. (2) At December 31, 2016 and 2015, includes $234 million and $120 million , respectively, recorded as a noncurrent asset and $3,745 million and $3,157 million, respectively, recorded as a noncurrent liability on the Consolidated Balance Sheets. DEFERRED INCOME TAXES – SDG&E AND SOCALGAS (Dollars in millions) SDG&E SoCalGas December 31, December 31, 2016 2015 2016 2015 Deferred income tax liabilities: Differences in financial and tax bases of utility plant and other assets $ 2,549 $ 2,392 $ 1,699 $ 1,473 Regulatory balancing accounts 379 234 411 515 Property taxes 42 42 21 20 Other 10 5 4 5 Total deferred income tax liabilities 2,980 2,673 2,135 2,013 Deferred income tax assets: Net operating losses — — 83 110 Tax credits 27 9 17 16 Postretirement benefits 98 90 244 268 Compensation-related items 8 11 32 42 State income taxes — 46 19 13 Accrued expenses not yet deductible 7 36 20 20 Other 11 9 11 12 Total deferred income tax assets 151 201 426 481 Net deferred income tax liability $ 2,829 $ 2,472 $ 1,709 $ 1,532 |
Summary of Tax Credit Carryforwards | The following table summarizes our unused net operating losses (NOL) and tax credit carryforwards at December 31, 2016. NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS (Dollars in millions) Unused amount at December 31, 2016 Year expiration begins Sempra Energy Consolidated: U.S. federal(1): NOLs $ 5,514 2031 General business tax credits 329 2032 Foreign tax credits 62 2024 U.S. state(2): NOLs 2,836 2017 General business tax credits 44 2017 Non-U.S.(2) 843 2017 SDG&E: U.S. federal(1): NOLs $ 39 2032 General business tax credits 19 2031 SoCalGas: U.S. federal(1): NOLs $ 289 2032 General business tax credits 12 2031 (1) We have recorded deferred income tax benefits on these NOLs and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not-basis. (2) We have not recorded deferred income tax benefits on a portion of these NOLs and tax credits because we currently believe they will not be realized on a more-likely-than-not-basis, as discussed below. |
Summary of Operating Loss Carryforwards | The following table summarizes our unused net operating losses (NOL) and tax credit carryforwards at December 31, 2016. NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS (Dollars in millions) Unused amount at December 31, 2016 Year expiration begins Sempra Energy Consolidated: U.S. federal(1): NOLs $ 5,514 2031 General business tax credits 329 2032 Foreign tax credits 62 2024 U.S. state(2): NOLs 2,836 2017 General business tax credits 44 2017 Non-U.S.(2) 843 2017 SDG&E: U.S. federal(1): NOLs $ 39 2032 General business tax credits 19 2031 SoCalGas: U.S. federal(1): NOLs $ 289 2032 General business tax credits 12 2031 (1) We have recorded deferred income tax benefits on these NOLs and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not-basis. (2) We have not recorded deferred income tax benefits on a portion of these NOLs and tax credits because we currently believe they will not be realized on a more-likely-than-not-basis, as discussed below. |
Summary of Income Tax Contingencies | INTEREST AND PENALTIES ASSOCIATED WITH UNRECOGNIZED INCOME TAX BENEFITS (Dollars in millions) Interest and penalties Accrued interest and penalties Years ended December 31, December 31, 2016 2015 2014 2016 2015 Sempra Energy Consolidated: Interest (income) expense $ — $ (2 ) $ (4 ) $ 1 $ 1 Penalties — — (3 ) — — SDG&E: Interest income $ — $ — $ (1 ) $ — $ — Following is a summary of unrecognized income tax benefits: SUMMARY OF UNRECOGNIZED INCOME TAX BENEFITS (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated: Total $ 90 $ 87 $ 117 Of the total, amounts related to tax positions that, if recognized in future years, would decrease the effective tax rate(1) $ (87 ) $ (83 ) $ (114 ) increase the effective tax rate(1) 36 32 21 SDG&E: Total $ 22 $ 20 $ 14 Of the total, amounts related to tax positions that, if recognized in future years, would decrease the effective tax rate(1) $ (19 ) $ (16 ) $ (11 ) increase the effective tax rate(1) 13 11 6 SoCalGas: Total $ 29 $ 27 $ 19 Of the total, amounts related to tax positions that, if recognized in future years, would decrease the effective tax rate(1) $ (29 ) $ (27 ) $ (19 ) increase the effective tax rate(1) 24 21 15 (1) Includes temporary book and tax differences that are treated as flow-through for ratemaking purposes, as discussed above. Following is a reconciliation of the changes in unrecognized income tax benefits for the years ended December 31: RECONCILIATION OF UNRECOGNIZED INCOME TAX BENEFITS (Dollars in millions) 2016 2015 2014 Sempra Energy Consolidated: Balance as of January 1 $ 87 $ 117 $ 90 Increase in prior period tax positions 2 10 37 Decrease in prior period tax positions (2 ) — — Increase in current period tax positions 6 8 5 Settlements with taxing authorities (3 ) (48 ) (15 ) Balance as of December 31 $ 90 $ 87 $ 117 SDG&E: Balance as of January 1 $ 20 $ 14 $ 17 Increase in prior period tax positions — 5 2 Increase in current period tax positions 2 2 — Settlements with taxing authorities — (1 ) (5 ) Balance as of December 31 $ 22 $ 20 $ 14 SoCalGas: Balance as of January 1 $ 27 $ 19 $ 13 Increase in prior period tax positions — 2 2 Decrease in prior period tax positions (2 ) — — Increase in current period tax positions 4 6 4 Balance as of December 31 $ 29 $ 27 $ 19 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible | It is reasonably possible that within the next 12 months, unrecognized income tax benefits could decrease due to the following: POSSIBLE DECREASES IN UNRECOGNIZED INCOME TAX BENEFITS WITHIN 12 MONTHS (Dollars in millions) At December 31, 2016 2015 2014 Sempra Energy Consolidated: Expiration of statutes of limitations on tax assessments $ (2 ) $ (2 ) $ — Potential resolution of audit issues with various U.S. federal, state and local and non-U.S. taxing authorities (36 ) (32 ) (61 ) $ (38 ) $ (34 ) $ (61 ) SDG&E: Expiration of statutes of limitations on tax assessments $ (1 ) $ (1 ) $ — Potential resolution of audit issues with various U.S. federal, state and local taxing authorities (10 ) (8 ) (9 ) $ (11 ) $ (9 ) $ (9 ) SoCalGas: Potential resolution of audit issues with various U.S. federal, state and local taxing authorities $ (25 ) $ (22 ) $ (15 ) |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule Of Defined Benefit Plans, Change In Benefit Obligation And Fair Value Of Plan Assets | PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2016 2015 CHANGE IN PROJECTED BENEFIT OBLIGATION Net obligation at January 1 $ 3,649 $ 3,839 $ 963 $ 1,115 Service cost 107 114 20 26 Interest cost 160 154 42 44 Contributions from plan participants — — 20 19 Actuarial loss (gain) 116 (180 ) (81 ) (172 ) Benefit payments (217 ) (273 ) (61 ) (60 ) Divestiture of EnergySouth (61 ) — (6 ) — Plan amendments — 5 — (9 ) Special termination benefits — — 26 — Settlements (75 ) (10 ) (1 ) — Net obligation at December 31 3,679 3,649 922 963 CHANGE IN PLAN ASSETS Fair value of plan assets at January 1 2,484 2,807 1,003 1,054 Actual return on plan assets 207 (73 ) 94 (21 ) Employer contributions 104 33 6 11 Contributions from plan participants — — 20 19 Benefit payments (217 ) (273 ) (61 ) (60 ) Divestiture of EnergySouth (44 ) — (4 ) — Settlements (75 ) (10 ) (1 ) — Fair value of plan assets at December 31 2,459 2,484 1,057 1,003 Funded status at December 31 $ (1,220 ) $ (1,165 ) $ 135 $ 40 Net recorded (liability) asset at December 31 $ (1,220 ) $ (1,165 ) $ 135 $ 40 PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS SAN DIEGO GAS & ELECTRIC COMPANY (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2016 2015 CHANGE IN PROJECTED BENEFIT OBLIGATION Net obligation at January 1 $ 965 $ 1,011 $ 165 $ 200 Service cost 29 29 5 7 Interest cost 41 39 7 8 Contributions from plan participants — — 7 7 Actuarial loss (gain) 7 (52 ) 6 (43 ) Benefit payments (25 ) (56 ) (14 ) (14 ) Special termination benefits — — 14 — Settlements (75 ) — — — Transfer of liability to other plans (7 ) (6 ) — — Net obligation at December 31 935 965 190 165 CHANGE IN PLAN ASSETS Fair value of plan assets at January 1 752 828 161 164 Actual return on plan assets 59 (24 ) 13 (3 ) Employer contributions 3 2 2 7 Contributions from plan participants — — 7 7 Benefit payments (25 ) (56 ) (14 ) (14 ) Settlements (75 ) — — — Transfer of assets from other plans — 2 — — Fair value of plan assets at December 31 714 752 169 161 Funded status at December 31 $ (221 ) $ (213 ) $ (21 ) $ (4 ) Net recorded liability at December 31 $ (221 ) $ (213 ) $ (21 ) $ (4 ) PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS SOUTHERN CALIFORNIA GAS COMPANY (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2016 2015 CHANGE IN PROJECTED BENEFIT OBLIGATION Net obligation at January 1 $ 2,255 $ 2,398 $ 752 $ 866 Service cost 67 74 14 17 Interest cost 101 98 32 34 Contributions from plan participants — — 13 12 Actuarial loss (gain) 77 (131 ) (86 ) (125 ) Benefit payments (158 ) (187 ) (45 ) (43 ) Plan amendments — 3 — (9 ) Special termination benefits — — 11 — Transfer of liability from other plans 1 — — — Net obligation at December 31 2,343 2,255 691 752 CHANGE IN PLAN ASSETS Fair value of plan assets at January 1 1,537 1,763 822 870 Actual return on plan assets 128 (45 ) 79 (18 ) Employer contributions 72 6 1 1 Contributions from plan participants — — 13 12 Benefit payments (158 ) (187 ) (45 ) (43 ) Fair value of plan assets at December 31 1,579 1,537 870 822 Funded status at December 31 $ (764 ) $ (718 ) $ 179 $ 70 Net recorded (liability) asset at December 31 $ (764 ) $ (718 ) $ 179 $ 70 |
Schedule Of Defined Benefit Plans, Amounts Recognized In Balance Sheet | PENSION AND OTHER POSTRETIREMENT BENEFIT OBLIGATIONS, NET OF PLAN ASSETS AT DECEMBER 31 (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2016 2015 Sempra Energy Consolidated: Noncurrent assets $ — $ — $ 179 $ 70 Current liabilities (56 ) (43 ) — — Noncurrent liabilities (1,164 ) (1,122 ) (44 ) (30 ) Net recorded (liability) asset $ (1,220 ) $ (1,165 ) $ 135 $ 40 SDG&E: Current liabilities $ (10 ) $ (5 ) $ — $ — Noncurrent liabilities (211 ) (208 ) (21 ) (4 ) Net recorded liability $ (221 ) $ (213 ) $ (21 ) $ (4 ) SoCalGas: Noncurrent assets $ — $ — $ 179 $ 70 Current liabilities (2 ) (2 ) — — Noncurrent liabilities (762 ) (716 ) — — Net recorded (liability) asset $ (764 ) $ (718 ) $ 179 $ 70 |
Schedule Of Defined Benefit Plans, Amounts In Accumulated Other Comprehensive Income | AMOUNTS IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2016 2015 Sempra Energy Consolidated: Net actuarial (loss) gain $ (95 ) $ (84 ) $ 3 $ 2 Prior service cost (4 ) (5 ) — — Total $ (99 ) $ (89 ) $ 3 $ 2 SDG&E: Net actuarial loss $ (8 ) $ (8 ) Prior service cost — — Total $ (8 ) $ (8 ) SoCalGas: Net actuarial loss $ (6 ) $ (4 ) Prior service cost (3 ) (1 ) Total $ (9 ) $ (5 ) |
Schedule Of Defined Benefit Plans, Accumulated Benefit Obligation | ACCUMULATED BENEFIT OBLIGATION (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas 2016 2015 2016 2015 2016 2015 Accumulated benefit obligation $ 3,465 $ 3,397 $ 904 $ 939 $ 2,167 $ 2,056 |
Schedule Of Defined Benefit Plans, Pension Plans With Benefit Obligations In Excess Of Plan Assets | OBLIGATIONS OF FUNDED PENSION PLANS (Dollars in millions) 2016 2015 Sempra Energy Consolidated: Projected benefit obligation $ 3,431 $ 3,410 Accumulated benefit obligation 3,227 3,183 Fair value of plan assets 2,459 2,484 SDG&E: Projected benefit obligation $ 902 $ 927 Accumulated benefit obligation 874 906 Fair value of plan assets 714 752 SoCalGas: Projected benefit obligation $ 2,320 $ 2,236 Accumulated benefit obligation 2,148 2,039 Fair value of plan assets 1,579 1,537 |
Schedule of Net Benefit Costs | NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2014 2016 2015 2014 NET PERIODIC BENEFIT COST Service cost $ 107 $ 114 $ 101 $ 20 $ 26 $ 24 Interest cost 160 154 161 42 44 49 Expected return on assets (166 ) (173 ) (171 ) (69 ) (68 ) (63 ) Amortization of: Prior service cost (credit) 11 11 11 — (4 ) (5 ) Actuarial loss (gain) 30 38 18 (1 ) — — Settlement and curtailment charges 16 4 31 — — (1 ) Special termination benefits — — — 26 — 5 Regulatory adjustment (57 ) (110 ) (31 ) (11 ) 12 6 Total net periodic benefit cost 101 38 120 7 10 15 CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) Net loss (gain) 26 17 38 (2 ) (4 ) 1 Prior service (credit) cost (1 ) 4 4 — — — Amortization of actuarial loss (10 ) (14 ) (23 ) — — — Total recognized in other comprehensive income (loss) 15 7 19 (2 ) (4 ) 1 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 116 $ 45 $ 139 $ 5 $ 6 $ 16 NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) SAN DIEGO GAS & ELECTRIC COMPANY (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2014 2016 2015 2014 NET PERIODIC BENEFIT COST Service cost $ 29 $ 29 $ 30 $ 5 $ 7 $ 7 Interest cost 41 39 43 7 8 9 Expected return on assets (49 ) (54 ) (55 ) (12 ) (11 ) (10 ) Amortization of: Prior service cost 1 8 2 3 3 2 Actuarial loss (gain) 10 2 4 (1 ) — — Settlement charge 16 — 19 — — — Special termination benefits — — — 14 — 5 Regulatory adjustment (45 ) (20 ) 12 (14 ) — 1 Total net periodic benefit cost 3 4 55 2 7 14 CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) Net loss (gain) 1 (6 ) 8 — — — Amortization of actuarial loss (1 ) (1 ) (3 ) — — — Total recognized in other comprehensive (loss) income — (7 ) 5 — — — Total recognized in net periodic benefit cost and other comprehensive (loss) income $ 3 $ (3 ) $ 60 $ 2 $ 7 $ 14 NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) SOUTHERN CALIFORNIA GAS COMPANY (Dollars in millions) Pension benefits Other postretirement benefits 2016 2015 2014 2016 2015 2014 NET PERIODIC BENEFIT COST Service cost $ 67 $ 74 $ 60 $ 14 $ 17 $ 16 Interest cost 101 98 100 32 34 38 Expected return on assets (103 ) (106 ) (104 ) (56 ) (56 ) (51 ) Amortization of: Prior service cost (credit) 9 9 9 (4 ) (7 ) (8 ) Actuarial loss 11 21 6 — — — Settlement charge — — 4 — — — Special termination benefits — — — 11 — — Regulatory adjustment (12 ) (90 ) (43 ) 3 12 5 Total net periodic benefit cost 73 6 32 — — — CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) Net loss 4 — 5 — — — Prior service cost 2 2 — — — — Amortization of actuarial loss — — (5 ) — — — Total recognized in other comprehensive income 6 2 — — — — Total recognized in net periodic benefit cost and other comprehensive income $ 79 $ 8 $ 32 $ — $ — $ — |
Schedule of Assumptions Used | WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATION AT DECEMBER 31 Pension benefits Other postretirement benefits 2016 2015 2016 2015 Sempra Energy Consolidated: Discount rate 4.08 % 4.46 % 4.19 % 4.49 % Rate of compensation increase 2.00-10.00 2.00-10.00 2.00-10.00 2.00-10.00 SDG&E: Discount rate 4.08 % 4.35 % 4.15 % 4.50 % Rate of compensation increase 2.00-10.00 2.00-10.00 2.00-10.00 2.00-10.00 SoCalGas: Discount rate 4.10 % 4.50 % 4.20 % 4.50 % Rate of compensation increase 2.00-10.00 2.00-10.00 2.00-10.00 2.00-10.00 WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE NET PERIODIC BENEFIT COST YEARS ENDED DECEMBER 31 Pension benefits Other postretirement benefits 2016 2015 2014 2016 2015 2014 Sempra Energy Consolidated: Discount rate 4.46 % 4.09 % 4.85 % 4.49 % 4.15 % 4.95 % Expected return on plan assets 7.00 7.00 7.00 6.98 6.98 6.97 Rate of compensation increase 2.00-10.00 2.00-10.00 3.50-10.00 2.00-10.00 2.00-10.00 3.50-10.00 SDG&E: Discount rate 4.35 % 4.00 % 4.69 % 4.50 % 4.15 % 5.00 % Expected return on plan assets 7.00 7.00 7.00 6.90 6.91 6.88 Rate of compensation increase 2.00-10.00 2.00-10.00 3.50-10.00 2.00-10.00 2.00-10.00 3.50-10.00 SoCalGas: Discount rate 4.50 % 4.15 % 4.94 % 4.50 % 4.15 % 4.95 % Expected return on plan assets 7.00 7.00 7.00 7.00 7.00 7.00 Rate of compensation increase 2.00-10.00 2.00-10.00 3.50-10.00 2.00-10.00 2.00-10.00 3.50-10.00 |
Schedule of Health Care Cost Trend Rates | ASSUMED HEALTH CARE COST TREND RATES AT DECEMBER 31 Other postretirement benefit plans(1) Pre-65 retirees Retirees aged 65 years and older 2016 2015 2014 2016 2015 2014 Health care cost trend rate assumed for next year 8.00 % 8.10 % 7.75 % 5.50 % 5.50 % 5.25 % Rate to which the cost trend rate is assumed to decline (the ultimate trend) 5.00 % 5.00 % 5.00 % 4.50 % 4.50 % 4.50 % Year the rate reaches the ultimate trend 2022 2022 2020 2022 2022 2020 (1) Excludes Mobile Gas plan. For Mobile Gas, which we deconsolidated on September 12, 2016, the health care cost trend rate assumed for next year for all retirees was 8.10 percent and 7.75 percent in 2015 and 2014, respectively; the ultimate trend was 5.00 percent in 2015 and 2014; and the year the rate reaches the ultimate trend was 2022 and 2020 in 2015 and 2014, respectively. For Chilquinta Energía, the health care cost trend rate assumed for next year, and the ultimate trend, was 3.00 percent in each of 2016, 2015 and 2014. |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percent change in assumed health care cost trend rates would have had the following effects in 2016: EFFECT OF ONE-PERCENT CHANGE IN ASSUMED HEALTH CARE COST TREND RATES (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas 1% 1% 1% 1% 1% 1% increase decrease increase decrease increase decrease Effect on total of service and interest cost components of net periodic postretirement health care benefit cost $ 5 $ (4 ) $ 1 $ (1 ) $ 4 $ (3 ) Effect on the health care component of the accumulated other postretirement benefit obligations 62 (52 ) 6 (5 ) 55 (46 ) |
Schedule Of Defined Benefit Plans, Fair Value Of Plan Assets By Level In Fair Value Hierarchy | The fair values of our pension plan assets by asset category are as follows: FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF PENSION PLANS (Dollars in millions) Fair value at December 31, 2016 Level 1 Level 2 Total Sempra Energy Consolidated: Equity securities: Domestic $ 884 $ — $ 884 International 522 — 522 Registered investment companies 127 — 127 Fixed income securities: Domestic government bonds 214 32 246 International government bonds — 9 9 Domestic corporate bonds — 346 346 International corporate bonds — 94 94 Registered investment companies — 14 14 Total investment assets in the fair value hierarchy $ 1,747 $ 495 2,242 Investments measured at NAV (1): Common/collective trusts 223 Venture capital funds and real estate funds 4 Total investment assets(2) $ 2,469 SDG&E’s proportionate share of investment assets $ 717 SoCalGas’ proportionate share of investment assets $ 1,585 Fair value at December 31, 2015 Level 1 Level 2 Total Sempra Energy Consolidated: Equity securities: Domestic $ 893 $ 7 $ 900 International 543 1 544 Registered investment companies 124 — 124 Fixed income securities: Domestic government bonds 124 31 155 International government bonds — 10 10 Domestic corporate bonds — 338 338 International corporate bonds — 100 100 Registered investment companies — 7 7 Other 1 — 1 Total investment assets in the fair value hierarchy $ 1,685 $ 494 2,179 Investments measured at NAV (1): Common/collective trusts 312 Venture capital funds and real estate funds 4 Total investment assets(3) $ 2,495 SDG&E’s proportionate share of investment assets(4) $ 753 SoCalGas’ proportionate share of investment assets $ 1,544 (1) Reflects the retrospective adoption of ASU 2015-07 as of January 1, 2016, as we discuss in Note 2. Prior to adoption, we included investments measured at NAV within the fair value hierarchy. (2) Excludes cash and cash equivalents of $14 million and accounts payable of $24 million . (3) Excludes cash and cash equivalents of $14 million and accounts payable of $25 million . (4) Excludes transfers receivable from other plans of $2 million at SDG&E. The fair values by asset category of the other postretirement benefit plan assets held in the pension master trust and in the additional trusts for SoCalGas’ other postretirement benefit plans and SDG&E’s other postretirement benefit plan (PBOP plan trusts) are as follows: FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF OTHER POSTRETIREMENT BENEFIT PLANS (Dollars in millions) Fair value at December 31, 2016 Level 1 Level 2 Total SDG&E: Equity securities: Domestic $ 41 $ — $ 41 International 24 — 24 Registered investment companies 46 — 46 Fixed income securities: Domestic government bonds 10 1 11 Domestic corporate bonds — 16 16 International corporate bonds — 3 3 Registered investment companies — 17 17 Total investment assets in the fair value hierarchy 121 37 158 Investments measured at NAV – Common/collective trusts(1) 11 Total investment assets(2) 169 SoCalGas: Equity securities: Domestic 130 — 130 International 77 — 77 Registered investment companies 46 — 46 Fixed income securities: Domestic government bonds 52 8 60 International government bonds — 2 2 Domestic corporate bonds — 94 94 International corporate bonds — 28 28 Registered investment companies — 47 47 Total investment assets in the fair value hierarchy 305 179 484 Investments measured at NAV – Common/collective trusts(1) 386 Total investment assets(3) 870 Other Sempra Energy: Equity securities: Domestic 6 — 6 International 3 — 3 Fixed income securities: Domestic government bonds 1 — 1 International government bonds — 1 1 Domestic corporate bonds — 2 2 International corporate bonds — 1 1 Registered investment companies — 1 1 Total investment assets in the fair value hierarchy 10 5 15 Investments measured at NAV – Common/collective trusts(1) 3 Total other Sempra Energy investment assets 18 Total Sempra Energy Consolidated investment assets in the fair value hierarchy $ 436 $ 221 Total Sempra Energy Consolidated investment assets(4) $ 1,057 (1) Reflects the retrospective adoption of ASU 2015-07 as of January 1, 2016, as we discuss in Note 2. Prior to adoption, we included investments measured at NAV within the fair value hierarchy. (2) Excludes cash and cash equivalents of $1 million and accounts payable of $1 million held in SDG&E PBOP plan trusts. (3) Excludes cash and cash equivalents of $4 million and accounts payable of $4 million held in SoCalGas PBOP plan trusts. (4) Excludes cash and cash equivalents of $5 million and accounts payable of $5 million at Sempra Energy Consolidated. FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF OTHER POSTRETIREMENT BENEFIT PLANS (Dollars in millions) Fair value at December 31, 2015 Level 1 Level 2 Total SDG&E: Equity securities: Domestic $ 39 $ — $ 39 International 24 — 24 Registered investment companies 41 — 41 Fixed income securities: Domestic government bonds 5 3 8 Domestic corporate bonds — 15 15 International corporate bonds — 4 4 Registered investment companies — 16 16 Total investment assets in the fair value hierarchy 109 38 147 Investments measured at NAV – Common/collective trusts(1) 14 Total investment assets(2) 161 SoCalGas: Equity securities: Domestic 123 1 124 International 74 — 74 Registered investment companies 43 — 43 Fixed income securities: Domestic government bonds 42 7 49 International government bonds — 2 2 Domestic corporate bonds — 87 87 International corporate bonds — 28 28 Registered investment companies — 49 49 Total investment assets in the fair value hierarchy 282 174 456 Investments measured at NAV – Common/collective trusts(1) 367 Total investment assets(3) 823 Other Sempra Energy: Equity securities: Domestic 5 1 6 International 3 — 3 Registered investment companies 4 — 4 Fixed income securities: Domestic government bonds 2 — 2 International government bonds — 1 1 Domestic corporate bonds — 1 1 International corporate bonds — 1 1 Registered investment companies — 1 1 Total investment assets in the fair value hierarchy 14 5 19 Investments measured at NAV – Common/collective trusts(1) 1 Total other Sempra Energy investment assets 20 Total Sempra Energy Consolidated investment assets in the fair value hierarchy $ 405 $ 217 Total Sempra Energy Consolidated investment assets(4) $ 1,004 (1) Reflects the retrospective adoption of ASU 2015-07 as of January 1, 2016, as we discuss in Note 2. Prior to adoption, we included investments measured at NAV within the fair value hierarchy. (2) Excludes cash and cash equivalents of $1 million and accounts payable of $1 million held in SDG&E PBOP plan trusts. (3) Excludes cash and cash equivalents of $3 million and accounts payable of $4 million held in SoCalGas PBOP plan trusts. (4) Excludes cash and cash equivalents of $4 million and accounts payable of $5 million at Sempra Energy Consolidated. |
Schedule Of Defined Benefit Plans, Estimated Future Employer Contributions In Next Fiscal Year | EXPECTED CONTRIBUTIONS (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Pension plans $ 180 $ 38 $ 90 Other postretirement benefit plans 8 5 1 |
Schedule of Expected Benefit Payments | EXPECTED BENEFIT PAYMENTS (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Pension benefits Other postretirement benefits Pension benefits Other postretirement benefits Pension benefits Other postretirement benefits 2017 $ 347 $ 47 $ 94 $ 10 $ 194 $ 35 2018 317 51 84 11 189 37 2019 304 53 81 11 184 38 2020 291 56 77 12 175 39 2021 295 55 73 12 177 40 2022-2026 1,254 277 322 61 804 203 |
Schedule Of Defined Benefit Plans Contributions | CONTRIBUTIONS TO SAVINGS PLANS (Dollars in millions) 2016 2015 2014 Sempra Energy Consolidated $ 42 $ 43 $ 38 SDG&E 15 17 15 SoCalGas 22 21 18 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Schedule Of Share-based Compensation Expense | Expenses and capitalized compensation costs recorded by SDG&E and SoCalGas were as follows: SHARE-BASED COMPENSATION EXPENSE – SDG&E AND SOCALGAS (Dollars in millions) Years ended December 31, 2016 2015 2014 SDG&E: Share-based compensation expense, before income taxes $ 7 $ 8 $ 8 Income tax benefit (3 ) (3 ) (3 ) $ 4 $ 5 $ 5 Capitalized share-based compensation cost $ 4 $ 4 $ 3 SoCalGas: Share-based compensation expense, before income taxes $ 8 $ 10 $ 8 Income tax benefit (3 ) (4 ) (3 ) $ 5 $ 6 $ 5 Capitalized share-based compensation cost $ 3 $ 2 $ 2 Total share-based compensation expense for all of Sempra Energy’s share-based awards was comprised as follows: SHARE-BASED COMPENSATION EXPENSE – SEMPRA ENERGY CONSOLIDATED (Dollars in millions, except per share amounts) Years ended December 31, 2016 2015 2014 Share-based compensation expense, before income taxes $ 46 $ 48 $ 46 Income tax benefit (18 ) (19 ) (18 ) $ 28 $ 29 $ 28 Excess income tax benefit $ (34 ) $ — $ — |
Schedule Of Non-qualified Stock Options | The following table shows a summary of non-qualified stock options at December 31, 2016 and activity for the year then ended: NON-QUALIFIED STOCK OPTIONS Shares under option Weighted- average exercise price Weighted- average remaining contractual term (in years) Aggregate intrinsic value (in millions) Outstanding at January 1, 2016 527,997 $ 53.62 Exercised (167,742 ) $ 56.11 Outstanding at December 31, 2016 360,255 $ 52.46 2.0 $ 17 Vested at December 31, 2016 360,255 $ 52.46 2.0 $ 17 Exercisable at December 31, 2016 360,255 $ 52.46 2.0 $ 17 |
Schedule Of Restricted Stock Awards And Units Valuation Assumptions | Below are key assumptions for awards granted in 2016, 2015 and 2014 for Sempra Energy: KEY ASSUMPTIONS FOR AWARDS GRANTED Years ended December 31, 2016 2015 2014 Risk-free rate of return 1.3 % 1.1 % 1.2 % Stock price volatility 16 14 16 |
Schedule Of Restricted Stock Awards | We provide below a summary of Sempra Energy’s RSAs at December 31, 2016 and the activity during the year. RESTRICTED STOCK AWARDS Shares Weighted-average grant-date fair value Nonvested at January 1, 2016 1,537 $ 75.87 Vested (1,537 ) $ 75.87 Nonvested at December 31, 2016 — $ — |
Schedule Of Restricted Stock Units | We provide below a summary of Sempra Energy’s RSUs as of December 31, 2016 and the activity during the year. RESTRICTED STOCK UNITS Performance-based restricted stock units Service-based restricted stock units Units Weighted- average grant-date fair value Units Weighted- average Nonvested at January 1, 2016 2,271,675 $ 73.28 348,806 $ 80.14 Granted 467,830 $ 100.37 95,876 $ 93.59 Vested (761,042 ) $ 49.28 (135,456 ) $ 65.20 Forfeited (24,141 ) $ 115.73 (3,490 ) $ 90.58 Nonvested at December 31, 2016(1) 1,954,322 $ 88.58 305,736 $ 94.68 Expected to vest at December 31, 2016 1,883,636 $ 88.07 293,822 $ 90.58 (1) Each RSU represents the right to receive one share of our common stock if applicable performance conditions are satisfied. For all performance-based RSUs, except for those issued in connection with the creation of Cameron LNG JV, up to an additional 50 percent ( 100 percent for awards granted during or after 2014) of the shares represented by the RSUs may be issued if Sempra Energy exceeds target performance conditions. |
DERIVATIVE FINANCIAL INSTRUME36
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Commodity Derivative Volumes Table | We summarize net energy derivative volumes at December 31, 2016 and 2015 as follows: NET ENERGY DERIVATIVE VOLUMES (Quantities in millions) December 31, Commodity Unit of measure 2016 2015 California Utilities: SDG&E: Natural gas MMBtu(1) 48 70 Electricity MWh(2) 4 1 Congestion revenue rights MWh 48 36 SoCalGas – natural gas MMBtu 1 1 Energy-Related Businesses: Sempra LNG & Midstream – natural gas MMBtu 31 43 (1) Million British thermal units (2) Megawatt hours |
Notional Amounts Of Interest Rate Derivatives Table | At December 31, 2016 and 2015 , the net notional amounts of our foreign currency derivatives, excluding joint ventures, were: FOREIGN CURRENCY DERIVATIVES (Dollars in millions) December 31, 2016 December 31, 2015 Notional amount Maturities Notional amount Maturities Sempra Energy Consolidated: Cross-currency swaps $ 408 2017-2023 $ 408 2016-2023 Other foreign currency derivatives(1) 86 2017-2018 — — (1) At December 31, 2016, includes GdC, which was previously a joint venture and excluded from this table until we acquired the remaining 50-percent interest in September 2016. At December 31, 2016 and 2015 , the net notional amounts of our interest rate derivatives, excluding joint ventures, were: INTEREST RATE DERIVATIVES (Dollars in millions) December 31, 2016 December 31, 2015 Notional debt Maturities Notional debt Maturities Sempra Energy Consolidated: Cash flow hedges(1)(2) $ 924 2017-2032 $ 384 2016-2028 Fair value hedges — — 300 2016 SDG&E: Cash flow hedge(1) 305 2017-2019 315 2016-2019 (1) Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. (2) At December 31, 2016, includes GdC, which was previously a joint venture and excluded from this table until we acquired the remaining 50-percent interest in September 2016. |
Derivative Instruments on the Consolidated Balance Sheet Table | The following tables provide the fair values of derivative instruments on the Consolidated Balance Sheets at December 31, 2016 and 2015 , 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 CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2016 Current assets: Fixed-price contracts and other derivatives(1) Other assets: Sundry Current liabilities: Fixed-price contracts and other derivatives(2) Deferred credits and other liabilities: Fixed-price contracts and other derivatives Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments(3) $ 7 $ 2 $ (24 ) $ (228 ) Commodity contracts not subject to rate recovery — — (14 ) — Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery 248 36 (254 ) (28 ) Associated offsetting commodity contracts (242 ) (27 ) 242 27 Associated offsetting cash collateral — (1 ) 16 1 Commodity contracts subject to rate recovery 37 73 (57 ) (150 ) Associated offsetting commodity contracts (9 ) (1 ) 9 1 Associated offsetting cash collateral — — 5 13 Net amounts presented on the balance sheet 41 82 (77 ) (364 ) Additional cash collateral for commodity contracts not subject to rate recovery 10 — — — Additional cash collateral for commodity contracts subject to rate recovery 32 — — — Total(4) $ 83 $ 82 $ (77 ) $ (364 ) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments(3) $ — $ — $ (13 ) $ (12 ) Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery 33 73 (51 ) (150 ) Associated offsetting commodity contracts (6 ) (1 ) 6 1 Associated offsetting cash collateral — — 3 13 Net amounts presented on the balance sheet 27 72 (55 ) (148 ) Additional cash collateral for commodity contracts not subject to rate recovery 1 — — — Additional cash collateral for commodity contracts subject to rate recovery 30 — — — Total(4) $ 58 $ 72 $ (55 ) $ (148 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 4 $ — $ (6 ) $ — Associated offsetting commodity contracts (3 ) — 3 — Associated offsetting cash collateral — — 2 — Net amounts presented on the balance sheet 1 — (1 ) — Additional cash collateral for commodity contracts not subject to rate recovery 1 — — — Additional cash collateral for commodity contracts subject to rate recovery 2 — — — Total $ 4 $ — $ (1 ) $ — (1) Included in Current Assets: Other for SoCalGas. (2) Included in Current Liabilities: Other for SoCalGas. (3) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. (4) Normal purchase contracts previously measured at fair value are excluded. DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2015 Current assets: Fixed-price contracts and other derivatives(1) Other assets: Sundry Current liabilities: Fixed-price contracts and other derivatives(2) Deferred credits and other liabilities: Fixed-price contracts and other derivatives Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments(3) $ 4 $ 1 $ (15 ) $ (156 ) Commodity contracts not subject to rate recovery 13 — — — Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery 245 32 (239 ) (21 ) Associated offsetting commodity contracts (232 ) (20 ) 232 20 Associated offsetting cash collateral (6 ) — 4 — Commodity contracts subject to rate recovery 28 49 (61 ) (64 ) Associated offsetting commodity contracts (2 ) (2 ) 2 2 Associated offsetting cash collateral — — 28 26 Net amounts presented on the balance sheet 50 60 (49 ) (193 ) Additional cash collateral for commodity contracts not subject to rate recovery 2 — — — Additional cash collateral for commodity contracts subject to rate recovery 28 — — — Total(4) $ 80 $ 60 $ (49 ) $ (193 ) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments(3) $ — $ — $ (14 ) $ (23 ) Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery — — (1 ) — Associated offsetting cash collateral — — 1 — Commodity contracts subject to rate recovery 27 49 (60 ) (64 ) Associated offsetting commodity contracts (2 ) (2 ) 2 2 Associated offsetting cash collateral — — 28 26 Net amounts presented on the balance sheet 25 47 (44 ) (59 ) Additional cash collateral for commodity contracts not subject to rate recovery 1 — — — Additional cash collateral for commodity contracts subject to rate recovery 27 — — — Total(4) $ 53 $ 47 $ (44 ) $ (59 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery $ — $ — $ (1 ) $ — Associated offsetting cash collateral — — 1 — Commodity contracts subject to rate recovery 1 — (1 ) — Net amounts presented on the balance sheet 1 — (1 ) — Additional cash collateral for commodity contracts subject to rate recovery 1 — — — Total $ 2 $ — $ (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 Consolidated Statement of Operations Table | The effects of derivative instruments designated as hedges on the Consolidated Statements of Operations and in OCI and AOCI for the years ended December 31 were: FAIR VALUE HEDGE IMPACTS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Years ended December 31, Location 2016 2015 2014 Sempra Energy Consolidated: Interest rate instruments Interest Expense $ 3 $ 6 $ 8 Interest rate instruments Other Income, Net (2 ) (5 ) (3 ) Total (1) $ 1 $ 1 $ 5 (1) There was no hedge ineffectiveness in 2016 or 2015. There were gains of $9 million from hedge ineffectiveness in 2014. 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. |
Cash Flow Hedge Impact on the Consolidated Statements Of Operations Table | CASH FLOW HEDGE IMPACTS (Dollars in millions) Pretax (loss) gain recognized in OCI Pretax (loss) gain reclassified from AOCI into earnings Years ended December 31, Years ended December 31, 2016 2015 2014 Location 2016 2015 2014 Sempra Energy Consolidated: Interest rate and foreign exchange instruments(1) $ (8 ) $ (18 ) $ (24 ) Interest Expense $ (17 ) $ (18 ) $ (21 ) Interest rate instruments — — 3 Gain on Sale of Assets — — 3 Interest rate instruments (9 ) (80 ) (127 ) Equity Earnings, Before Income Tax (10 ) (12 ) (10 ) Interest rate and foreign exchange instruments — — — Remeasurement of Equity Method Investment (7 ) — — Interest rate and foreign exchange instruments 5 (20 ) — Equity Earnings, Net of Income Tax (5 ) (13 ) — Foreign exchange instruments 4 — — Revenues: Energy- Related Businesses — — — Commodity contracts not subject to rate recovery (13 ) 12 19 Revenues: Energy- Related Businesses 6 14 8 Total(2) $ (21 ) $ (106 ) $ (129 ) $ (33 ) $ (29 ) $ (20 ) SDG&E: Interest rate instruments(1)(3) $ (2 ) $ (6 ) $ (9 ) Interest Expense $ (12 ) $ (12 ) $ (11 ) SoCalGas: Interest rate instruments $ — $ — $ — Interest Expense $ (1 ) $ (1 ) $ (1 ) (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. (2) There was $4 million , $2 million and $1 million of losses from ineffectiveness related to these cash flow hedges in 2016 , 2015 and 2014 , respectively. (3) There was negligible hedge ineffectiveness related to these cash flow hedges at SDG&E in 2016 , 2015 and 2014 . |
Undesignated Derivative Impact on the Consolidated Statements of Operations | The effects of derivative instruments not designated as hedging instruments on the Consolidated Statements of Operations for the years ended December 31 were: UNDESIGNATED DERIVATIVE IMPACTS (Dollars in millions) Pretax (loss) gain on derivatives recognized in earnings Years ended December 31, Location 2016 2015 2014 Sempra Energy Consolidated: Interest rate and foreign exchange instruments Other Income, Net $ (32 ) $ (4 ) $ (24 ) Foreign exchange instruments Equity Earnings, Net of Income Tax 3 (4 ) (5 ) Commodity contracts not subject to rate recovery Revenues: Energy-Related Businesses (18 ) 42 17 Commodity contracts not subject to rate recovery Cost of Natural Gas, Electric Fuel and Purchased Power — — 3 Commodity contracts not subject to rate recovery Operation and Maintenance 1 (1 ) (4 ) Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power (53 ) (126 ) (10 ) Commodity contracts subject to rate recovery Cost of Natural Gas (4 ) 1 — Total $ (103 ) $ (92 ) $ (23 ) SDG&E: Commodity contracts not subject to rate recovery Operation and Maintenance $ — $ — $ (1 ) Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power (53 ) (126 ) (10 ) Total $ (53 ) $ (126 ) $ (11 ) SoCalGas: Commodity contracts not subject to rate recovery Operation and Maintenance $ 1 $ (1 ) $ (2 ) Commodity contracts subject to rate recovery Cost of Natural Gas (4 ) 1 — Total $ (3 ) $ — $ (2 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measures Table | RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Fair value at December 31, 2016 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 508 $ — $ — $ — $ 508 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 36 16 — — 52 Municipal bonds — 206 — — 206 Other securities — 141 — — 141 Total debt securities 36 363 — — 399 Total nuclear decommissioning trusts(2) 544 363 — — 907 Interest rate and foreign exchange instruments — 9 — — 9 Commodity contracts not subject to rate recovery — 15 — 9 24 Commodity contracts subject to rate recovery 1 3 96 32 132 Total $ 545 $ 390 $ 96 $ 41 $ 1,072 Liabilities: Interest rate and foreign exchange instruments $ — $ 252 $ — $ — $ 252 Commodity contracts not subject to rate recovery 16 11 — (17 ) 10 Commodity contracts subject to rate recovery 19 8 170 (18 ) 179 Total $ 35 $ 271 $ 170 $ (35 ) $ 441 Fair value at December 31, 2015 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 619 $ — $ — $ — $ 619 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 47 44 — — 91 Municipal bonds — 156 — — 156 Other securities — 182 — — 182 Total debt securities 47 382 — — 429 Total nuclear decommissioning trusts(2) 666 382 — — 1,048 Interest rate and foreign exchange instruments — 5 — — 5 Commodity contracts not subject to rate recovery 22 16 — (4 ) 34 Commodity contracts subject to rate recovery — 1 72 28 101 Total $ 688 $ 404 $ 72 $ 24 $ 1,188 Liabilities: Interest rate and foreign exchange instruments $ — $ 171 $ — $ — $ 171 Commodity contracts not subject to rate recovery 5 3 — (4 ) 4 Commodity contracts subject to rate recovery — 68 53 (54 ) 67 Total $ 5 $ 242 $ 53 $ (58 ) $ 242 (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 December 31, 2016 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 508 $ — $ — $ — $ 508 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 36 16 — — 52 Municipal bonds — 206 — — 206 Other securities — 141 — — 141 Total debt securities 36 363 — — 399 Total nuclear decommissioning trusts(2) 544 363 — — 907 Commodity contracts not subject to rate recovery — — — 1 1 Commodity contracts subject to rate recovery 1 2 96 30 129 Total $ 545 $ 365 $ 96 $ 31 $ 1,037 Liabilities: Interest rate instruments $ — $ 25 $ — $ — $ 25 Commodity contracts subject to rate recovery 17 7 170 (16 ) 178 Total $ 17 $ 32 $ 170 $ (16 ) $ 203 Fair value at December 31, 2015 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 619 $ — $ — $ — $ 619 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 47 44 — — 91 Municipal bonds — 156 — — 156 Other securities — 182 — — 182 Total debt securities 47 382 — — 429 Total nuclear decommissioning trusts(2) 666 382 — — 1,048 Commodity contracts not subject to rate recovery — — — 1 1 Commodity contracts subject to rate recovery — — 72 27 99 Total $ 666 $ 382 $ 72 $ 28 $ 1,148 Liabilities: Interest rate instruments $ — $ 37 $ — $ — $ 37 Commodity contracts not subject to rate recovery 1 — — (1 ) — Commodity contracts subject to rate recovery — 67 53 (54 ) 66 Total $ 1 $ 104 $ 53 $ (55 ) $ 103 (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 December 31, 2016 Level 1 Level 2 Level 3 Netting(1) Total Assets: Commodity contracts not subject to rate recovery $ — $ — $ — $ 1 $ 1 Commodity contracts subject to rate recovery — 1 — 2 3 Total $ — $ 1 $ — $ 3 $ 4 Liabilities: Commodity contracts subject to rate recovery $ 2 $ 1 $ — $ (2 ) $ 1 Total $ 2 $ 1 $ — $ (2 ) $ 1 Fair value at December 31, 2015 Level 1 Level 2 Level 3 Netting(1) Total Assets: Commodity contracts subject to rate recovery $ — $ 1 $ — $ 1 $ 2 Total $ — $ 1 $ — $ 1 $ 2 Liabilities: Commodity contracts not subject to rate recovery $ 1 $ — $ — $ (1 ) $ — Commodity contracts subject to rate recovery — 1 — — 1 Total $ 1 $ 1 $ — $ (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. |
Recurring Fair Value Measures Level 3 Rollforward Table | The following table sets forth reconciliations of changes in the fair value of CRRs and long-term, fixed-price electricity positions classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E: LEVEL 3 RECONCILIATIONS (Dollars in millions) Years ended December 31, 2016 2015 2014 Balance at January 1 $ 19 $ 107 $ 99 Realized and unrealized (losses) gains (120 ) (134 ) 15 Allocated transmission instruments 8 12 19 Settlements 19 34 (26 ) Balance at December 31 $ (74 ) $ 19 $ 107 Change in unrealized (losses) gains relating to instruments still held at December 31 $ (101 ) $ (27 ) $ 8 |
Fair Value of Financial Instruments Table | The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Consolidated Balance Sheets at December 31, 2016 and 2015 : FAIR VALUE OF FINANCIAL INSTRUMENTS (Dollars in millions) December 31, 2016 Carrying Fair Value amount Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates(1) $ 184 $ — $ 91 $ 84 $ 175 Total long-term debt(2)(3) 15,068 — 15,455 492 15,947 SDG&E: Total long-term debt(3)(4) $ 4,654 $ — $ 4,727 $ 305 $ 5,032 SoCalGas: Total long-term debt(5) $ 3,009 $ — $ 3,131 $ — $ 3,131 December 31, 2015 Carrying Fair Value amount Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates(1) $ 175 $ — $ 97 $ 69 $ 166 Total long-term debt(2)(3) 13,761 — 13,985 648 14,633 SDG&E: Total long-term debt(3)(4) $ 4,304 $ — $ 4,355 $ 315 $ 4,670 SoCalGas: Total long-term debt(5) $ 2,513 $ — $ 2,621 $ — $ 2,621 (1) Excluding accumulated interest outstanding of $17 million and $11 million at December 31, 2016 and 2015 , respectively. (2) Before reductions for unamortized discount (net of premium) and debt issuance costs of $109 million and $107 million at December 31, 2016 and 2015 , respectively, and excluding build-to-suit and capital lease obligations of $383 million and $387 million at December 31, 2016 and 2015 , respectively. We discuss our long-term debt in Note 5. (3) Level 3 instruments include $305 million and $315 million at December 31, 2016 and 2015 , respectively, related to Otay Mesa VIE. (4) Before reductions for unamortized discount and debt issuance costs of $45 million and $43 million at December 31, 2016 and 2015 , respectively, and excluding capital lease obligations of $240 million and $244 million at December 31, 2016 and 2015 , respectively. (5) Before reductions for unamortized discount and debt issuance costs of $27 million and $24 million at December 31, 2016 and 2015 , respectively, and excluding capital lease obligations of $1 million at December 31, 2015 . |
Fair Value Measurements, Nonrecurring Table | The following table summarizes significant inputs impacting our non-recurring fair value measures: NON-RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Estimated fair value Valuation technique Fair value hierarchy % of fair value measurement Inputs used to develop measurement Range of inputs Investment in GdC $ 1,144 (1) Market approach Level 2 100% Equity sale price 100% TdM $ 145 (2) Market approach Level 2 100% Purchase price offers 100% Investment in $ 26 (3) Market approach Level 2 100% Equity sale price 100% Investment in $ 440 (4) Market approach Level 2 100% Equity sale price 100% (1) At measurement date of September 26, 2016, immediately prior to acquiring a 100 -percent ownership interest in GdC. (2) At measurement date of September 29, 2016. At December 31, 2016, TdM has a carrying value of $154 million , reflecting subsequent operating activity, and is classified as held for sale. (3) At measurement date of July 16, 2014. At December 31, 2016, our investment in Energía Sierra Juárez had a carrying value of $38 million , reflecting subsequent equity method activity to record distributions and earnings. (4) At measurement date of March 29, 2016. On May 9, 2016, Sempra LNG & Midstream sold its equity interest in Rockies Express. |
PREFERRED STOCK (Tables)
PREFERRED STOCK (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule Of Preferred Stock | At December 31, 2016 and 2015 , SoCalGas has the following preferred stock outstanding: PREFERRED STOCK OUTSTANDING (Dollars in millions, except per share amounts) December 31, 2016 2015 $25 par value, authorized 1,000,000 shares: 6% Series, 79,011 shares outstanding $ 3 $ 3 6% Series A, 783,032 shares outstanding 19 19 SoCalGas - Total preferred stock 22 22 Less: 50,970 shares of the 6% Series outstanding owned by Pacific Enterprises (2 ) (2 ) Sempra Energy - Total preferred stock of subsidiary $ 20 $ 20 |
SEMPRA ENERGY - SHAREHOLDERS'39
SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share Computations | The following table provides EPS computations for the years ended December 31, 2016, 2015 and 2014. Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the year. 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 AND DIVIDENDS DECLARED (Dollars in millions, except per share amounts; shares in thousands) Years ended December 31, 2016 2015 2014 Numerator: Earnings/Income attributable to common shares $ 1,370 $ 1,349 $ 1,161 Denominator: Weighted-average common shares outstanding for basic EPS(1) 250,217 248,249 245,891 Dilutive effect of stock options, restricted stock awards and restricted stock units(2)(3) 938 2,674 4,764 Weighted-average common shares outstanding for diluted EPS(2) 251,155 250,923 250,655 Earnings per share: Basic $ 5.48 $ 5.43 $ 4.72 Diluted $ 5.46 $ 5.37 $ 4.63 Dividends declared per share of common stock(4) $ 3.02 $ 2.80 $ 2.64 (1) Includes average fully vested RSUs held in our Deferred Compensation Plan of 568 in 2016, 491 in 2015 and 212 in 2014. These fully vested RSUs are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued. (2) Reflects the prospective adoption of ASU 2016-09 as of January 1, 2016. Prior to the adoption, the dilutive effect of stock options, RSAs and RSUs was reduced by excess tax benefits assumed to be used to repurchase shares on the open market. (3) Due to market fluctuations of both Sempra Energy stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 8, dilutive RSUs may vary widely from period-to-period. (4) Our board of directors has the discretion to determine the payment and amount of future dividends. |
Schedule Of Common Stock Activity | The following table provides common stock activity for the years ended December 31, 2016, 2015 and 2014. COMMON STOCK ACTIVITY Years ended December 31, 2016 2015 2014 Common shares outstanding, January 1 248,298,080 246,330,884 244,461,327 Restricted stock units vesting(1) 1,363,555 1,499,062 989,027 Stock options exercised 167,742 227,815 699,783 Savings plan issuance 653,607 652,631 398,042 Common stock investment plan(2) 266,056 249,665 205,203 Shares repurchased(3) (596,526 ) (661,977 ) (422,498 ) Common shares outstanding, December 31 250,152,514 248,298,080 246,330,884 (1) Includes dividend equivalents. (2) Participants in the Direct Stock Purchase Plan may reinvest dividends to purchase newly issued shares. (3) From time to time, we purchase shares of our common stock or units from long-term incentive plan participants who elect to sell to us a sufficient number of vested RSAs or RSUs to meet minimum statutory tax withholding requirements. |
SAN ONOFRE NUCLEAR GENERATING40
SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulated Operations [Abstract] | |
Schedule of Nuclear Decommissioning Trusts | The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 10. NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At December 31, 2016: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 52 $ — $ — $ 52 Municipal bonds (2) 203 4 (1 ) 206 Other securities (3) 141 2 (2 ) 141 Total debt securities 396 6 (3 ) 399 Equity securities 143 366 (1 ) 508 Cash and cash equivalents 119 — — 119 Total $ 658 $ 372 $ (4 ) $ 1,026 At December 31, 2015: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 89 $ 2 $ — $ 91 Municipal bonds 148 8 — 156 Other securities 194 1 (13 ) 182 Total debt securities 431 11 (13 ) 429 Equity securities 214 412 (7 ) 619 Cash and cash equivalents 15 — — 15 Total $ 660 $ 423 $ (20 ) $ 1,063 (1) Maturity dates are 2017-2047. (2) Maturity dates are 2017-2115. (3) Maturity dates are 2017-2111. |
Schedule of Securities Sold | The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales. SALES OF SECURITIES (Dollars in millions) Years ended December 31, 2016 2015 2014 Proceeds from sales(1) $ 1,134 $ 577 $ 601 Gross realized gains 111 29 11 Gross realized losses (29 ) (15 ) (11 ) (1) Excludes securities that are held to maturity. |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulated Operations [Abstract] | |
Schedule Of Regulatory Balancing Accounts | The following table summarizes our regulatory balancing accounts at December 31. SUMMARY OF REGULATORY BALANCING ACCOUNTS AT DECEMBER 31 (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas 2016 2015 2016 2015 2016 2015 Current: Overcollected $ (804 ) $ (789 ) $ (301 ) $ (345 ) $ (503 ) $ (444 ) Undercollected 941 1,062 560 652 381 410 Net current receivable (payable)(1) 137 273 259 307 (122 ) (34 ) Noncurrent: Undercollected(2) 85 215 — — 85 215 Net noncurrent receivable (payable)(1) 85 215 — — 85 215 Total net receivable (payable) $ 222 $ 488 $ 259 $ 307 $ (37 ) $ 181 (1) At both December 31, 2016 and 2015, the net receivable at SDG&E and the net payable at SoCalGas are shown separately on Sempra Energy’s Consolidated Balance Sheets. (2) Long-term undercollected balance is included in Regulatory Assets (long-term) on Sempra Energy’s Consolidated Balance Sheets and in Other Regulatory Assets (long-term) on SoCalGas’ Consolidated Balance Sheets. |
Schedule of Regulatory Assets [Table Text Block] | We show the details of regulatory assets and liabilities in the following table, and discuss each of them separately below. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) December 31, 2016 2015 SDG&E: Fixed-price contracts and other derivatives $ 141 $ 99 Costs related to SONGS plant closure(1) 183 257 Costs related to wildfire litigation 353 362 Deferred taxes recoverable in rates 1,014 914 Pension and other postretirement benefit plan obligations 210 180 Removal obligations(2) (1,725 ) (1,629 ) Unamortized loss on reacquired debt 12 12 Environmental costs 48 16 Legacy meters(1) 16 32 Sunrise Powerlink fire mitigation 118 117 Other (2 ) 9 Total SDG&E 368 369 SoCalGas: Pension and other postretirement benefit plan obligations 563 629 Employee benefit costs 45 51 Removal obligations(2) (972 ) (1,145 ) Deferred taxes recoverable in rates 417 330 Unamortized loss on reacquired debt 10 11 Environmental costs 22 22 Workers’ compensation 10 13 Other 8 — Total SoCalGas 103 (89 ) Other Sempra Energy: Sempra LNG & Midstream — (7 ) Sempra Mexico 71 33 Total Other Sempra Energy 71 26 Total Sempra Energy Consolidated $ 542 $ 306 (1) Regulatory assets earning a rate of return. (2) Represents cumulative amounts collected in rates for future nonlegal asset removal costs. NET REGULATORY ASSETS (LIABILITIES) AS PRESENTED ON THE CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2016 2015 Sempra Energy Consolidated SDG&E SoCalGas Sempra SDG&E SoCalGas Current regulatory assets(1) $ 89 $ 81 $ 8 $ 115 $ 107 $ 7 Noncurrent regulatory assets(2) 3,329 2,012 1,246 3,058 1,891 1,120 Current regulatory liabilities(3) — — — (2 ) — — Noncurrent regulatory liabilities(4) (2,876 ) (1,725 ) (1,151 ) (2,865 ) (1,629 ) (1,216 ) Total $ 542 $ 368 $ 103 $ 306 $ 369 $ (89 ) (1) At Sempra Energy Consolidated, included in Other Current Assets. (2) Excludes long-term undercollected balancing accounts at December 31, 2016 and 2015 of $85 million and $215 million , respectively, recorded at Sempra Energy Consolidated as Regulatory Assets (long-term) and at SoCalGas as Other Regulatory Assets (long-term). (3) Included in Other Current Liabilities. (4) At December 31, 2016 and 2015 , $179 million and $72 million , respectively, at Sempra Energy Consolidated and $179 million and $71 million , respectively, at SoCalGas are included in Deferred Credits and Other. |
Schedule of Regulatory Liabilities [Table Text Block] | We show the details of regulatory assets and liabilities in the following table, and discuss each of them separately below. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) December 31, 2016 2015 SDG&E: Fixed-price contracts and other derivatives $ 141 $ 99 Costs related to SONGS plant closure(1) 183 257 Costs related to wildfire litigation 353 362 Deferred taxes recoverable in rates 1,014 914 Pension and other postretirement benefit plan obligations 210 180 Removal obligations(2) (1,725 ) (1,629 ) Unamortized loss on reacquired debt 12 12 Environmental costs 48 16 Legacy meters(1) 16 32 Sunrise Powerlink fire mitigation 118 117 Other (2 ) 9 Total SDG&E 368 369 SoCalGas: Pension and other postretirement benefit plan obligations 563 629 Employee benefit costs 45 51 Removal obligations(2) (972 ) (1,145 ) Deferred taxes recoverable in rates 417 330 Unamortized loss on reacquired debt 10 11 Environmental costs 22 22 Workers’ compensation 10 13 Other 8 — Total SoCalGas 103 (89 ) Other Sempra Energy: Sempra LNG & Midstream — (7 ) Sempra Mexico 71 33 Total Other Sempra Energy 71 26 Total Sempra Energy Consolidated $ 542 $ 306 (1) Regulatory assets earning a rate of return. (2) Represents cumulative amounts collected in rates for future nonlegal asset removal costs. NET REGULATORY ASSETS (LIABILITIES) AS PRESENTED ON THE CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2016 2015 Sempra Energy Consolidated SDG&E SoCalGas Sempra SDG&E SoCalGas Current regulatory assets(1) $ 89 $ 81 $ 8 $ 115 $ 107 $ 7 Noncurrent regulatory assets(2) 3,329 2,012 1,246 3,058 1,891 1,120 Current regulatory liabilities(3) — — — (2 ) — — Noncurrent regulatory liabilities(4) (2,876 ) (1,725 ) (1,151 ) (2,865 ) (1,629 ) (1,216 ) Total $ 542 $ 368 $ 103 $ 306 $ 369 $ (89 ) (1) At Sempra Energy Consolidated, included in Other Current Assets. (2) Excludes long-term undercollected balancing accounts at December 31, 2016 and 2015 of $85 million and $215 million , respectively, recorded at Sempra Energy Consolidated as Regulatory Assets (long-term) and at SoCalGas as Other Regulatory Assets (long-term). (3) Included in Other Current Liabilities. (4) At December 31, 2016 and 2015 , $179 million and $72 million , respectively, at Sempra Energy Consolidated and $179 million and $71 million , respectively, at SoCalGas are included in Deferred Credits and Other. |
Schedule Of Approved Increase Decrease To Annual Revenue Requirement | Following is a summary of immediate earnings impacts from the 2016 GRC FD: EARNINGS IMPACTS FROM THE 2016 GRC FD (Dollars in millions) SoCalGas SDG&E Pretax After-tax earnings (charge) Pretax After-tax Adjustments to revenue related to tax repairs deductions: 2015 memorandum account balance $ (72 ) $ (43 ) $ (37 ) $ (22 ) True-up of 2012-2014 estimates to actuals (11 ) (6 ) (15 ) (9 ) Total $ (83 ) $ (49 ) $ (52 ) $ (31 ) |
Schedule Of CPUC Cost of Capital Authorized | SDG&E’s current CPUC-authorized ROR is 7.79 percent and SoCalGas’ current CPUC-authorized ROR is 8.02 percent based on their authorized capital structures as follows: COST OF CAPITAL AND AUTHORIZED RATE STRUCTURE – CPUC SDG&E SoCalGas Authorized weighting Authorized rate of recovery Weighted authorized ROR Authorized weighting Authorized rate of recovery Weighted authorized ROR 45.25 % 5.00 % 2.26 % Long-Term Debt 45.60 % 5.77 % 2.63 % 2.75 % 6.22 % 0.17 % Preferred Stock 2.40 % 6.00 % 0.14 % 52.00 % 10.30 % 5.36 % Common Equity 52.00 % 10.10 % 5.25 % 100.00 % 7.79 % 100.00 % 8.02 % |
Schedule Of FERC Cost Of Capital Table | SDG&E’s current estimated FERC ROR is 7.51 percent based on its capital structure as follows: SDG&E COST OF CAPITAL AND RATE STRUCTURE – FERC Weighting Rate of recovery Weighted ROR Long-Term Debt 43.48 % 4.21 % 1.83 % Common Equity 56.52 % 10.05 % 5.68 % 100.00 % 7.51 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Estimated Future Payments Under Natural Gas Contracts | At December 31, 2016 , the future minimum payments under existing natural gas contracts and natural gas storage and transportation contracts were FUTURE MINIMUM PAYMENTS – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Storage and transportation Natural gas(1) Total(1) 2017 $ 240 $ 148 $ 388 2018 213 84 297 2019 138 1 139 2020 42 — 42 2021 42 — 42 Thereafter 144 — 144 Total minimum payments $ 819 $ 233 $ 1,052 (1) Excludes amounts related to LNG purchase agreements discussed below. FUTURE MINIMUM PAYMENTS – SOCALGAS (Dollars in millions) Transportation Natural gas Total 2017 $ 123 $ 16 $ 139 2018 104 1 105 2019 52 1 53 2020 23 — 23 2021 23 — 23 Thereafter 82 — 82 Total minimum payments $ 407 $ 18 $ 425 |
Schedule Of Payments Under Natural Gas Contracts | Total payments under natural gas contracts and natural gas storage and transportation contracts as well as payments to meet additional portfolio needs at Sempra Energy Consolidated and SoCalGas were PAYMENTS UNDER NATURAL GAS CONTRACTS (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated $ 1,169 $ 1,200 $ 1,984 SoCalGas 966 975 1,735 |
Schedule Of L N G Commitment Amounts | At December 31, 2016 , the following LNG commitment amounts are based on the assumption that all cargoes, less those already confirmed to be diverted, under the agreement are delivered: LNG COMMITMENT AMOUNTS (Dollars in millions) 2017 $ 446 2018 459 2019 416 2020 423 2021 434 Thereafter 4,004 Total $ 6,182 |
Schedule Of Estimated Future Payments Under Purchased Power Contracts | At December 31, 2016 , the fixed and determinable estimated future minimum payments under long-term purchased-power contracts were FUTURE MINIMUM PAYMENTS – PURCHASED-POWER CONTRACTS (Dollars in millions) Sempra Energy Consolidated SDG&E 2017 $ 666 $ 563 2018 672 556 2019 664 546 2020 606 487 2021 608 487 Thereafter 6,205 5,865 Total minimum payments(1) $ 9,421 $ 8,504 (1) Excludes purchase agreements accounted for as capital leases and amounts related to Otay Mesa VIE, as it is consolidated by Sempra Energy and SDG&E. |
Schedule Of Payments Under Purchased Power Contracts | Total payments under purchased-power contracts were PAYMENTS UNDER PURCHASED-POWER CONTRACTS (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated $ 1,667 $ 1,573 $ 1,574 SDG&E 752 715 710 |
Schedule Of Operating Leases Rent Expense | Rent expense for operating leases is as follows: RENT EXPENSE – OPERATING LEASES (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated $ 77 $ 78 $ 78 SDG&E 28 27 26 SoCalGas 38 39 38 |
Schedule Of Operating Leases Future Minimum Payments Due | At December 31, 2016 , the minimum rental commitments payable in future years under all noncancelable operating leases were FUTURE MINIMUM PAYMENTS – OPERATING LEASES (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas 2017 $ 78 $ 27 $ 42 2018 69 23 38 2019 61 22 32 2020 54 20 27 2021 49 19 25 Thereafter 306 71 134 Total future minimum rental commitments $ 617 $ 182 $ 298 |
Schedule Of Capital Leases Future Minimum Payments Present Value Of Net Minimum Payments | At December 31, 2016 , the future minimum lease payments and present value of the net minimum lease payments under these capital leases for both Sempra Energy Consolidated and SDG&E were FUTURE MINIMUM PAYMENTS – POWER PURCHASE AGREEMENTS (Dollars in millions) 2017 $ 77 2018 104 2019 104 2020 104 2021 104 Thereafter 1,806 Total minimum lease payments(1) 2,299 Less: estimated executory costs (517 ) Less: interest(2) (1,043 ) Present value of net minimum lease payments(3) $ 739 (1) This amount will be recorded over the lives of the leases as Cost of Electric Fuel and Purchased Power on Sempra Energy’s and SDG&E’s Consolidated Statements of Operations. This expense will receive ratemaking treatment consistent with purchased-power costs, which are recovered in rates. (2) Amount necessary to reduce net minimum lease payments to present value at the inception of the leases. (3) Includes $8 million in Current Portion of Long-Term Debt and $231 million in Long-Term Debt on Sempra Energy’s and SDG&E’s Consolidated Balance Sheets at December 31, 2016 . Of the present value of net minimum lease payments, $500 million will be recorded as a capital lease obligation when construction of the peaker plant facility is completed and delivery of contracted power commences, which is scheduled to occur in June 2017. |
Schedule Of Environmental Remediation Costs Capitalized In Period | The following table shows our capital expenditures (including construction work in progress) in order to comply with environmental laws and regulations: CAPITAL EXPENDITURES FOR ENVIRONMENTAL ISSUES (Dollars in millions) Years ended December 31, 2016 2015 2014 Sempra Energy Consolidated(1) $ 53 $ 64 $ 45 SDG&E 17 24 23 SoCalGas 35 39 21 (1) In cases of non-wholly owned affiliates, includes only our share. |
Schedule Of Environmental Remediation Costs, Status Of Remediation Sites | The table below shows the status at December 31, 2016 , of the California Utilities’ manufactured-gas sites and the third-party waste-disposal sites for which we have been identified as a PRP: STATUS OF ENVIRONMENTAL SITES # Sites complete(1) # Sites in process SDG&E: Manufactured-gas sites 3 — Third-party waste-disposal sites 2 1 SoCalGas: Manufactured-gas sites 39 3 Third-party waste-disposal sites 5 2 (1) There may be ongoing compliance obligations for completed sites, such as regular inspections, adherence to land use covenants and water quality monitoring . |
Schedule of Environmental Loss Contingencies by Site | The following table shows our accrued liabilities for environmental matters at December 31, 2016 : ACCRUED LIABILITIES FOR ENVIRONMENTAL MATTERS (Dollars in millions) Manufactured- gas sites Waste disposal sites (PRP)(1) Former fossil- fueled power plants Total(2) SDG&E(3) $ — $ 1 $ 1 $ 2 SoCalGas(4) 23 2 — 25 Other — 1 — 1 Total Sempra Energy $ 23 $ 4 $ 1 $ 28 (1) Sites for which we have been identified as a Potentially Responsible Party. (2) Includes $8 million , $1 million and $7 million classified as current liabilities, and $20 million , $1 million and $18 million classified as noncurrent liabilities on Sempra Energy’s, SDG&E’s and SoCalGas’ Consolidated Balance Sheets, respectively. (3) Does not include SDG&E’s liability for SONGS marine mitigation. (4) Does not include SoCalGas’ liability for environmental matters for the natural gas leak at the Aliso Canyon facility. We discuss matters related to the leak above in “Legal Proceedings – SoCalGas – Aliso Canyon Natural Gas Storage Facility Gas Leak.” |
Schedule Of Build To Suit Lease Future Minimum Payments Due | At December 31, 2016 , the future minimum lease payments on the lease are as follows: FUTURE MINIMUM PAYMENTS – BUILD-TO-SUIT LEASE (Dollars in millions) 2017 $ 10 2018 10 2019 10 2020 11 2021 11 Thereafter 245 Total minimum lease payments $ 297 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables show selected information by segment from our Consolidated Statements of Operations and Consolidated Balance Sheets. We provide information about our equity method investments by segment in Note 4. Amounts labeled as “All other” in the following tables consist primarily of parent organizations. SEGMENT INFORMATION (Dollars in millions) Years ended December 31, 2016 2015 2014 REVENUES SDG&E $ 4,253 $ 4,219 $ 4,329 SoCalGas 3,471 3,489 3,855 Sempra South American Utilities 1,556 1,544 1,534 Sempra Mexico 725 669 818 Sempra Renewables 34 36 35 Sempra LNG & Midstream 508 653 979 Adjustments and eliminations — (2 ) (3 ) Intersegment revenues(1) (364 ) (377 ) (512 ) Total $ 10,183 $ 10,231 $ 11,035 INTEREST EXPENSE SDG&E $ 195 $ 204 $ 202 SoCalGas 97 84 69 Sempra South American Utilities 38 32 33 Sempra Mexico 13 23 17 Sempra Renewables 4 3 5 Sempra LNG & Midstream 43 72 111 All other 282 263 241 Intercompany eliminations (119 ) (120 ) (124 ) Total $ 553 $ 561 $ 554 INTEREST INCOME SoCalGas $ 1 $ 4 $ — Sempra South American Utilities 21 19 14 Sempra Mexico 6 7 4 Sempra Renewables 5 4 1 Sempra LNG & Midstream 71 75 115 All other — — 1 Intercompany eliminations (78 ) (80 ) (113 ) Total $ 26 $ 29 $ 22 DEPRECIATION AND AMORTIZATION SDG&E $ 646 $ 604 $ 530 SoCalGas 476 461 431 Sempra South American Utilities 49 50 55 Sempra Mexico 77 70 64 Sempra Renewables 6 6 5 Sempra LNG & Midstream 47 49 61 All other 11 10 10 Total $ 1,312 $ 1,250 $ 1,156 INCOME TAX EXPENSE (BENEFIT) SDG&E $ 280 $ 284 $ 270 SoCalGas 143 138 139 Sempra South American Utilities 80 67 58 Sempra Mexico 188 11 5 Sempra Renewables (38 ) (49 ) (44 ) Sempra LNG & Midstream (80 ) 28 (20 ) All other (184 ) (138 ) (108 ) Total $ 389 $ 341 $ 300 SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Years ended December 31 or at December 31, 2016 2015 2014 EARNINGS (LOSSES) SDG&E $ 570 $ 587 $ 507 SoCalGas(2) 349 419 332 Sempra South American Utilities 156 175 172 Sempra Mexico 463 213 192 Sempra Renewables 55 63 81 Sempra LNG & Midstream (107 ) 44 50 All other (116 ) (152 ) (173 ) Total $ 1,370 $ 1,349 $ 1,161 ASSETS SDG&E $ 17,719 $ 16,515 $ 16,260 SoCalGas 13,424 12,104 10,446 Sempra South American Utilities 3,591 3,235 3,379 Sempra Mexico 7,542 3,783 3,486 Sempra Renewables 3,644 1,441 1,334 Sempra LNG & Midstream 5,564 5,566 6,435 All other 475 734 872 Intersegment receivables (4,173 ) (2,228 ) (2,561 ) Total $ 47,786 $ 41,150 $ 39,651 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 1,399 $ 1,133 $ 1,100 SoCalGas 1,319 1,352 1,104 Sempra South American Utilities 194 154 174 Sempra Mexico 330 302 325 Sempra Renewables 835 81 190 Sempra LNG & Midstream 117 87 212 All other 20 47 18 Total $ 4,214 $ 3,156 $ 3,123 GEOGRAPHIC INFORMATION Long-lived assets(3): United States $ 28,351 $ 26,132 $ 24,183 Mexico 4,814 3,160 2,821 South America 1,863 1,652 1,746 Total $ 35,028 $ 30,944 $ 28,750 Revenues(4): United States $ 8,004 $ 8,119 $ 8,774 South America 1,556 1,544 1,534 Mexico 623 568 727 Total $ 10,183 $ 10,231 $ 11,035 (1) Revenues for reportable segments include intersegment revenues of $6 million , $76 million , $102 million , and $180 million for 2016 , $9 million , $75 million , $101 million and $192 million for 2015 , and $10 million , $69 million , $91 million and $342 million for 2014 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG & Midstream, respectively. (2) After preferred dividends. (3) Includes net PP&E and investments. (4) Amounts are based on where the revenue originated, after intercompany eliminations. |
QUARTERLY FINANCIAL DATA (UNA44
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule Of Quarterly Financial Data Table | SDG&E (Dollars in millions) Quarters ended March 31 June 30 September 30 December 31 2016(1): Operating revenues $ 991 $ 992 $ 1,209 $ 1,061 Operating expenses 755 822 886 800 Operating income $ 236 $ 170 $ 323 $ 261 Net income $ 137 $ 87 $ 194 $ 147 (Earnings) losses attributable to noncontrolling interest (1 ) 13 (11 ) 4 Earnings attributable to common shares $ 136 $ 100 $ 183 $ 151 2015: Operating revenues $ 966 $ 972 $ 1,230 $ 1,051 Operating expenses 684 745 930 802 Operating income $ 282 $ 227 $ 300 $ 249 Net income $ 151 $ 130 $ 182 $ 143 (Earnings) losses attributable to noncontrolling interest (4 ) (4 ) (12 ) 1 Earnings attributable to common shares $ 147 $ 126 $ 170 $ 144 (1) Reflects the prospective adoption of ASU 2016-09 effective January 1, 2016, as we discuss in Note 2. SOCALGAS (Dollars in millions) Quarters ended March 31 June 30 September 30 December 31 2016(1): Operating revenues $ 1,033 $ 617 $ 686 $ 1,135 Operating expenses 739 628 648 899 Operating income (loss) $ 294 $ (11 ) $ 38 $ 236 Net income $ 199 $ — $ — $ 151 Dividends on preferred stock — (1 ) — — Earnings (losses) attributable to common shares $ 199 $ (1 ) $ — $ 151 2015: Operating revenues $ 1,048 $ 780 $ 620 $ 1,041 Operating expenses 728 686 633 834 Operating income (loss) $ 320 $ 94 $ (13 ) $ 207 Net income (loss) $ 214 $ 71 $ (8 ) $ 143 Dividends on preferred stock — (1 ) — — Earnings (losses) attributable to common shares $ 214 $ 70 $ (8 ) $ 143 (1) Reflects the prospective adoption of ASU 2016-09 effective January 1, 2016, as we discuss in Note 2. We provide quarterly financial information for Sempra Energy Consolidated, SDG&E and SoCalGas below: SEMPRA ENERGY (In millions, except per share amounts) Quarters ended March 31 June 30 September 30 December 31 2016(1): Revenues $ 2,622 $ 2,156 $ 2,535 $ 2,870 Expenses and other income $ 2,167 $ 2,268 $ 1,553 $ 2,365 Net income $ 364 $ 27 $ 719 $ 409 Earnings attributable to Sempra Energy $ 353 $ 16 $ 622 $ 379 Basic per-share amounts(2): Net income $ 1.46 $ 0.11 $ 2.87 $ 1.63 Earnings attributable to Sempra Energy $ 1.41 $ 0.06 $ 2.48 $ 1.51 Weighted-average common shares outstanding 249.7 250.1 250.4 250.6 Diluted per-share amounts(2): Net income $ 1.45 $ 0.11 $ 2.85 $ 1.62 Earnings attributable to Sempra Energy $ 1.40 $ 0.06 $ 2.46 $ 1.51 Weighted-average common shares outstanding 251.5 252.0 252.4 251.6 2015: Revenues $ 2,682 $ 2,367 $ 2,481 $ 2,701 Expenses and other income $ 2,076 $ 1,971 $ 2,211 $ 2,269 Net income $ 458 $ 320 $ 282 $ 388 Earnings attributable to Sempra Energy $ 437 $ 295 $ 248 $ 369 Basic per-share amounts(2): Net income $ 1.85 $ 1.29 $ 1.14 $ 1.56 Earnings attributable to Sempra Energy $ 1.76 $ 1.19 $ 1.00 $ 1.48 Weighted-average common shares outstanding 247.7 248.1 248.4 248.7 Diluted per-share amounts(2): Net income $ 1.83 $ 1.27 $ 1.12 $ 1.54 Earnings attributable to Sempra Energy $ 1.74 $ 1.17 $ 0.99 $ 1.47 Weighted-average common shares outstanding 251.2 251.5 251.0 251.5 (1) Reflects the prospective adoption of ASU 2016-09 effective January 1, 2016, as we discuss in Note 2. (2) Earnings per share are computed independently for each of the quarters and therefore may not sum to the total for the year. |
SCHEDULE I, CONDENSED FINANCI45
SCHEDULE I, CONDENSED FINANCIAL INFORMATION OF PARENT, STATEMENT OF OPERATIONS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest expense | $ (553) | $ (561) | $ (554) | ||||||||
Other (expense) income, net | 132 | 126 | 137 | ||||||||
Income tax (expense) benefit | (389) | (341) | (300) | ||||||||
Equity in earnings of subsidiaries, net of income taxes | 78 | 85 | 38 | ||||||||
Net income/Earnings | $ 379 | $ 622 | $ 16 | $ 353 | $ 369 | $ 248 | $ 295 | $ 437 | $ 1,370 | $ 1,349 | $ 1,161 |
Basic earnings per common share (in dollars per share) | $ 1.51 | $ 2.48 | $ 0.06 | $ 1.41 | $ 1.48 | $ 1 | $ 1.19 | $ 1.76 | $ 5.48 | $ 5.43 | $ 4.72 |
Weighted-average number of shares outstanding for basic EPS | 250,600 | 250,400 | 250,100 | 249,700 | 248,700 | 248,400 | 248,100 | 247,700 | 250,217 | 248,249 | 245,891 |
Earnings Per Share, Diluted | $ 1.51 | $ 2.46 | $ 0.06 | $ 1.40 | $ 1.47 | $ 0.99 | $ 1.17 | $ 1.74 | $ 5.46 | $ 5.37 | $ 4.63 |
Weighted-average common shares outstanding for diluted EPS | 251,600 | 252,400 | 252,000 | 251,500 | 251,500 | 251,000 | 251,500 | 251,200 | 251,155 | 250,923 | 250,655 |
Parent Company [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest expense | $ (277) | $ (261) | $ (235) | ||||||||
Operation and maintenance | (81) | (66) | (78) | ||||||||
Other (expense) income, net | (2) | 7 | 50 | ||||||||
Income tax (expense) benefit | 181 | 150 | 133 | ||||||||
Loss before equity in earnings of subsidiaries | (179) | (170) | (130) | ||||||||
Equity in earnings of subsidiaries, net of income taxes | 1,549 | 1,519 | 1,291 | ||||||||
Net income/Earnings | $ 1,370 | $ 1,349 | $ 1,161 | ||||||||
Basic earnings per common share (in dollars per share) | $ 5.48 | $ 5.43 | $ 4.72 | ||||||||
Weighted-average number of shares outstanding for basic EPS | 250,217 | 248,249 | 245,891 | ||||||||
Earnings Per Share, Diluted | $ 5.46 | $ 5.37 | $ 4.63 | ||||||||
Weighted-average common shares outstanding for diluted EPS | 251,155 | 250,923 | 250,655 |
SCHEDULE I, CONDENSED FINANCI46
SCHEDULE I, CONDENSED FINANCIAL INFORMATION OF PARENT, STATEMENT OF COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Statement of Income Captions [Line Items] | |||
Net income | $ 1,519 | $ 1,448 | $ 1,262 |
Total other comprehensive income (loss) | 52 | (334) | (290) |
Pretax amount [Member] | |||
Condensed Statement of Income Captions [Line Items] | |||
Net income | 1,760 | 1,691 | 1,462 |
Foreign currency translation adjustments | 42 | (260) | (193) |
Financial instruments | (6) | (80) | (106) |
Pension and other postretirement benefits | (13) | (3) | (20) |
Total other comprehensive income (loss) | 23 | (343) | (319) |
Total comprehensive income, after preferred dividends of subsidiaries | 1,782 | 1,347 | 1,142 |
Income tax benefit [Member] | |||
Condensed Statement of Income Captions [Line Items] | |||
Net income | (389) | (341) | (300) |
Foreign currency translation adjustments | 0 | 0 | 0 |
Financial instruments | 11 | 33 | 42 |
Pension and other postretirement benefits | 4 | 1 | 8 |
Total other comprehensive income (loss) | 15 | 34 | 50 |
Total comprehensive income, after preferred dividends of subsidiaries | (374) | (307) | (250) |
Net-of-tax amount [Member] | |||
Condensed Statement of Income Captions [Line Items] | |||
Net income | 1,371 | 1,350 | 1,162 |
Foreign currency translation adjustments | 42 | (260) | (193) |
Financial instruments | 5 | (47) | (64) |
Pension and other postretirement benefits | (9) | (2) | (12) |
Total other comprehensive income (loss) | 38 | (309) | (269) |
Total comprehensive income, after preferred dividends of subsidiaries | 1,408 | 1,040 | 892 |
Parent Company [Member] | Pretax amount [Member] | |||
Condensed Statement of Income Captions [Line Items] | |||
Net income | 1,189 | 1,199 | 1,028 |
Foreign currency translation adjustments | 42 | (260) | (193) |
Financial instruments | (6) | (80) | (106) |
Pension and other postretirement benefits | (13) | (3) | (20) |
Total other comprehensive income (loss) | 23 | (343) | (319) |
Total comprehensive income, after preferred dividends of subsidiaries | 1,212 | 856 | 709 |
Parent Company [Member] | Income tax benefit [Member] | |||
Condensed Statement of Income Captions [Line Items] | |||
Net income | 181 | 150 | 133 |
Foreign currency translation adjustments | 0 | 0 | 0 |
Financial instruments | 11 | 33 | 42 |
Pension and other postretirement benefits | 4 | 1 | 8 |
Total other comprehensive income (loss) | 15 | 34 | 50 |
Total comprehensive income, after preferred dividends of subsidiaries | 196 | 184 | 183 |
Parent Company [Member] | Net-of-tax amount [Member] | |||
Condensed Statement of Income Captions [Line Items] | |||
Net income | 1,370 | 1,349 | 1,161 |
Foreign currency translation adjustments | 42 | (260) | (193) |
Financial instruments | 5 | (47) | (64) |
Pension and other postretirement benefits | (9) | (2) | (12) |
Total other comprehensive income (loss) | 38 | (309) | (269) |
Total comprehensive income, after preferred dividends of subsidiaries | $ 1,408 | $ 1,040 | $ 892 |
SCHEDULE I, CONDENSED FINANCI47
SCHEDULE I, CONDENSED FINANCIAL INFORMATION OF PARENT, BALANCE SHEETS (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 349 | $ 403 | $ 570 | $ 904 |
Due from affiliates | 26 | 6 | ||
Other current assets | 271 | 267 | ||
Total current assets | 3,110 | 2,891 | ||
Investments in subsidiaries | 2,097 | 2,905 | ||
Due from affiliates | 201 | 186 | ||
Deferred income taxes | 234 | 120 | ||
Other assets | 815 | 641 | ||
Total assets | 47,786 | 41,150 | 39,651 | |
Liabilities and shareholders’ equity: | ||||
Current portion of long-term debt | 913 | 907 | ||
Due to affiliates | 11 | 14 | ||
Other current liabilities | 557 | 551 | ||
Total current liabilities | 5,927 | 4,612 | ||
Long-term debt | 14,429 | 13,134 | ||
Shareholders’ equity | 12,951 | 11,809 | ||
Total liabilities and equity | 47,786 | 41,150 | ||
Parent Company [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 12 | 4 | $ 3 | $ 6 |
Due from affiliates | 73 | 62 | ||
Other current assets | 2 | 4 | ||
Total current assets | 87 | 70 | ||
Investments in subsidiaries | 17,329 | 15,586 | ||
Due from affiliates | 0 | 457 | ||
Deferred income taxes | 2,570 | 2,188 | ||
Other assets | 592 | 641 | ||
Total assets | 20,578 | 18,942 | ||
Liabilities and shareholders’ equity: | ||||
Current portion of long-term debt | 600 | 752 | ||
Due to affiliates | 359 | 332 | ||
Income taxes payable | 153 | 42 | ||
Other current liabilities | 374 | 310 | ||
Total current liabilities | 1,486 | 1,436 | ||
Long-term debt | 5,100 | 5,195 | ||
Due to affiliates | 517 | 0 | ||
Other long-term liabilities | 524 | 502 | ||
Shareholders’ equity | 12,951 | 11,809 | ||
Total liabilities and equity | $ 20,578 | $ 18,942 |
SCHEDULE I, CONDENSED FINANCI48
SCHEDULE I, CONDENSED FINANCIAL INFORMATION OF PARENT, CASH FLOWS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash used in operating activities | $ 2,319 | $ 2,905 | $ 2,161 |
Expenditures for property, plant and equipment | (4,214) | (3,156) | (3,123) |
Purchase of trust assets | 0 | 1 | 35 |
Decrease (increase) in loans to affiliates, net | 11 | 74 | 18 |
Net cash used in investing activities | (4,886) | (2,885) | (3,342) |
Common stock dividends paid | (686) | (628) | (598) |
Issuances of common stock | 51 | 52 | 56 |
Repurchases of common stock | (56) | (74) | (38) |
Issuances of long-term debt | 2,951 | 2,992 | 3,272 |
Payments on long-term debt | (2,057) | (1,854) | (2,034) |
Tax benefit related to share-based compensation | 0 | 52 | 0 |
Other | (10) | (17) | (37) |
Net cash provided by (used in) financing activities | 2,513 | (173) | 854 |
Increase (decrease) in cash and cash equivalents | (54) | (167) | (334) |
Cash and cash equivalents, January 1 | 403 | 570 | 904 |
Cash and cash equivalents, December 31 | 349 | 403 | 570 |
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES | |||
Financing of build-to-suit property | 0 | 61 | 61 |
Common dividends issued in stock | 53 | 55 | 42 |
Dividends declared but not paid | 196 | 180 | 166 |
Parent Company [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash used in operating activities | (178) | (255) | (260) |
Dividends received from subsidiaries | 175 | 350 | 300 |
Expenditures for property, plant and equipment | (5) | (43) | (15) |
Purchase of trust assets | 0 | (5) | (4) |
Decrease (increase) in loans to affiliates, net | 457 | (457) | 627 |
Net cash used in investing activities | 627 | (155) | 908 |
Common stock dividends paid | (686) | (628) | (598) |
Issuances of common stock | 51 | 52 | 56 |
Repurchases of common stock | (56) | (74) | (38) |
Issuances of long-term debt | 499 | 1,248 | 499 |
Payments on long-term debt | (750) | 0 | (800) |
Increase (decrease) in loans from affiliates, net | 504 | (230) | 234 |
Tax benefit related to share-based compensation | 0 | 52 | 0 |
Other | (3) | (9) | (4) |
Net cash provided by (used in) financing activities | (441) | 411 | (651) |
Increase (decrease) in cash and cash equivalents | 8 | 1 | (3) |
Cash and cash equivalents, January 1 | 4 | 3 | 6 |
Cash and cash equivalents, December 31 | 12 | 4 | 3 |
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES | |||
Financing of build-to-suit property | 0 | 61 | 61 |
Common dividends issued in stock | 53 | 55 | 42 |
Dividends declared but not paid | $ 189 | $ 174 | $ 163 |
SCHEDULE I, CONDENSED FINANCI49
SCHEDULE I, CONDENSED FINANCIAL INFORMATION OF PARENT, FOOTNOTES (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Basis of Presentation | ||||||||||||
Rabbi trust investment gains | $ 7 | $ 6 | $ 5 | |||||||||
New Accounting Standards | ||||||||||||
Cumulative-effect adjustment | $ 107 | 107 | ||||||||||
Excess tax benefit | $ (34) | $ 0 | $ 0 | |||||||||
Weighted-average common shares outstanding for diluted EPS | 251,600 | 252,400 | 252,000 | 251,500 | 251,500 | 251,000 | 251,500 | 251,200 | 251,155 | 250,923 | 250,655 | |
Debt Instruments [Abstract] | ||||||||||||
Current portion of long-term debt | $ (913) | $ (907) | $ (913) | $ (907) | ||||||||
Total long-term debt | 14,429 | 13,134 | 14,429 | 13,134 | ||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||||||
2,017 | 905 | 905 | ||||||||||
2,018 | 1,414 | 1,414 | ||||||||||
2,019 | 1,417 | 1,417 | ||||||||||
2,020 | 1,032 | 1,032 | ||||||||||
Retained Earnings [Member] | ||||||||||||
New Accounting Standards | ||||||||||||
Cumulative-effect adjustment | 107 | 107 | ||||||||||
Accounting Standards Update 2016-09 [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | ||||||||||||
New Accounting Standards | ||||||||||||
Excess tax benefit | 34 | |||||||||||
Weighted-average common shares outstanding for diluted EPS | 98 | 75 | 89 | |||||||||
Accounting Standards Update 2016-09 [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Retained Earnings [Member] | ||||||||||||
New Accounting Standards | ||||||||||||
Cumulative-effect adjustment | 107 | 107 | ||||||||||
Parent Company [Member] | ||||||||||||
Basis of Presentation | ||||||||||||
Rabbi trust investment gains | $ 23 | $ 3 | $ 27 | |||||||||
New Accounting Standards | ||||||||||||
Weighted-average common shares outstanding for diluted EPS | 251,155 | 250,923 | 250,655 | |||||||||
Debt Instruments [Abstract] | ||||||||||||
Market value adjustments for interest rate swaps, net | (3) | (2) | $ (3) | $ (2) | ||||||||
Build-to-suit lease | 137 | 136 | 137 | 136 | ||||||||
Gross long-term debt | 5,734 | 5,984 | 5,734 | 5,984 | ||||||||
Current portion of long-term debt | (600) | (752) | (600) | (752) | ||||||||
Unamortized discount on long-term debt | (10) | (10) | (10) | (10) | ||||||||
Unamortized debt issuance costs | (24) | (27) | (24) | (27) | ||||||||
Total long-term debt | 5,100 | 5,195 | 5,100 | 5,195 | ||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||||||
2,017 | 600 | 600 | ||||||||||
2,018 | 500 | 500 | ||||||||||
2,019 | 1,000 | 1,000 | ||||||||||
2,020 | 900 | 900 | ||||||||||
Thereafter | 2,600 | 2,600 | ||||||||||
Parent Company [Member] | 6.5% Notes June 1, 2016 [Member] | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Gross long-term debt | $ 0 | 750 | $ 0 | 750 | ||||||||
Stated rate percentage | 6.50% | 6.50% | ||||||||||
Effective rate percentage | 4.77% | 4.77% | ||||||||||
Parent Company [Member] | 6.5% Notes June 1, 2016 [Member] | Fixed-to-floating Rate Swap [Member] | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Gross long-term debt | 300 | 300 | ||||||||||
Parent Company [Member] | 2.3% Notes April 1, 2017 [Member] | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Gross long-term debt | $ 600 | 600 | $ 600 | 600 | ||||||||
Stated rate percentage | 2.30% | 2.30% | ||||||||||
Parent Company [Member] | 6.15% Notes June 15, 2018 [Member] | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Gross long-term debt | $ 500 | 500 | $ 500 | 500 | ||||||||
Stated rate percentage | 6.15% | 6.15% | ||||||||||
Parent Company [Member] | Other Long-term Debt, Due February 2019 [Member] | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Gross long-term debt | $ 500 | 500 | $ 500 | 500 | ||||||||
Stated rate percentage | 9.80% | 9.80% | ||||||||||
Parent Company [Member] | 1.625% Notes October 7, 2019 [Member] | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Gross long-term debt | $ 500 | 0 | $ 500 | 0 | ||||||||
Stated rate percentage | 1.625% | 1.625% | ||||||||||
Parent Company [Member] | 2.4% Notes March 15, 2020 [Member] | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Gross long-term debt | $ 500 | 500 | $ 500 | 500 | ||||||||
Stated rate percentage | 2.40% | 2.40% | ||||||||||
Parent Company [Member] | 2.85% Notes November 15, 2020 [Member] | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Gross long-term debt | $ 400 | 400 | $ 400 | 400 | ||||||||
Stated rate percentage | 2.85% | 2.85% | ||||||||||
Parent Company [Member] | 2.875% Notes October 1, 2022 [Member] | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Gross long-term debt | $ 500 | 500 | $ 500 | 500 | ||||||||
Stated rate percentage | 2.875% | 2.875% | ||||||||||
Parent Company [Member] | 4.05% Notes December 1, 2023 [Member] | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Gross long-term debt | $ 500 | 500 | $ 500 | 500 | ||||||||
Stated rate percentage | 4.05% | 4.05% | ||||||||||
Parent Company [Member] | 3.55% Notes June 15, 2024 [Member] | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Gross long-term debt | $ 500 | 500 | $ 500 | 500 | ||||||||
Stated rate percentage | 3.55% | 3.55% | ||||||||||
Parent Company [Member] | 3.75% Notes November 15, 2025 [Member] | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Gross long-term debt | $ 350 | 350 | $ 350 | 350 | ||||||||
Stated rate percentage | 3.75% | 3.75% | ||||||||||
Parent Company [Member] | 6% Notes October 15, 2039 [Member] | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Gross long-term debt | $ 750 | 750 | $ 750 | 750 | ||||||||
Stated rate percentage | 6.00% | 6.00% | ||||||||||
Parent Company [Member] | Accounting Standards Update 2016-09 [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | ||||||||||||
New Accounting Standards | ||||||||||||
Excess tax benefit | $ 17 | 34 | ||||||||||
Weighted-average common shares outstanding for diluted EPS | 98 | 75 | 89 | |||||||||
Parent Company [Member] | Accounting Standards Update 2016-09 [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Retained Earnings [Member] | ||||||||||||
New Accounting Standards | ||||||||||||
Cumulative-effect adjustment | $ 49 | $ 49 |
SIGNIFICANT ACCOUNTING POLICI50
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - RESTRICTED CASH (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Presentation Of Restricted Cash [Line Items] | ||
Restricted cash | $ 76 | $ 47 |
Restricted cash, current | 66 | 27 |
Restricted cash, noncurrent | 10 | 20 |
Restricted Cash, Operating Requirements [Member] | SDG&E [Member] | ||
Presentation Of Restricted Cash [Line Items] | ||
Restricted cash | 12 | |
Restricted cash, current | 11 | 23 |
Restricted cash, noncurrent | 1 | |
Restricted Cash, Construction Financing [Member] | Sempra Mexico [Member] | ||
Presentation Of Restricted Cash [Line Items] | ||
Restricted cash, current | 52 | |
Restricted cash, noncurrent | 9 | 20 |
Restricted Cash, Construction Financing [Member] | Sempra Renewables [Member] | ||
Presentation Of Restricted Cash [Line Items] | ||
Restricted cash, current | $ 3 | $ 4 |
SIGNIFICANT ACCOUNTING POLICI51
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - COLLECTION ALLOWANCES (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowance balance at January 1 | $ 32 | $ 34 | $ 29 |
Provisions for uncollectible accounts | 23 | 20 | 25 |
Write-offs of uncollectible accounts | (20) | (22) | (20) |
Allowance balance at December 31 | 35 | 32 | 34 |
San Diego Gas and Electric Company [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowance balance at January 1 | 9 | 7 | 5 |
Provisions for uncollectible accounts | 6 | 7 | 7 |
Write-offs of uncollectible accounts | (7) | (5) | (5) |
Allowance balance at December 31 | 8 | 9 | 7 |
Southern California Gas Company [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowance balance at January 1 | 17 | 17 | 12 |
Provisions for uncollectible accounts | 14 | 11 | 15 |
Write-offs of uncollectible accounts | (10) | (11) | (10) |
Allowance balance at December 31 | $ 21 | $ 17 | $ 17 |
SIGNIFICANT ACCOUNTING POLICI52
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - INVENTORIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory [Line Items] | ||
LIFO liquidation | $ 33 | |
Natural gas | 92 | $ 149 |
LNG | 9 | 6 |
Materials and supplies | 157 | 143 |
Inventories | 258 | 298 |
SDG&E [Member] | ||
Inventory [Line Items] | ||
Natural gas | 2 | 6 |
LNG | 0 | 0 |
Materials and supplies | 78 | 69 |
Inventories | 80 | 75 |
SoCalGas [Member] | ||
Inventory [Line Items] | ||
Natural gas | 11 | 49 |
LNG | 0 | 0 |
Materials and supplies | 47 | 30 |
Inventories | 58 | 79 |
Sempra South American Utilities [Member] | ||
Inventory [Line Items] | ||
Natural gas | 0 | 0 |
LNG | 0 | 0 |
Materials and supplies | 27 | 30 |
Inventories | 27 | 30 |
Sempra Mexico [Member] | ||
Inventory [Line Items] | ||
Natural gas | 0 | 0 |
LNG | 6 | 3 |
Materials and supplies | 1 | 10 |
Inventories | 7 | 13 |
Sempra Renewables [Member] | ||
Inventory [Line Items] | ||
Natural gas | 0 | 0 |
LNG | 0 | 0 |
Materials and supplies | 4 | 3 |
Inventories | 4 | 3 |
Sempra LNG and Midstream [Member] | ||
Inventory [Line Items] | ||
Natural gas | 79 | 94 |
LNG | 3 | 3 |
Materials and supplies | 0 | 1 |
Inventories | $ 82 | $ 98 |
SIGNIFICANT ACCOUNTING POLICI53
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - GREENHOUSE GAS (GHG) ALLOWANCES (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Regulatory Assets [Abstract] | ||
Noncurrent | $ 3,414 | $ 3,273 |
Greenhouse Gas Obligation [Member] | ||
Regulatory LIabilities [Abstract] | ||
Current | 40 | 41 |
Noncurrent | 171 | 91 |
Total liabilities | 211 | 132 |
Greenhouse Gas Allowance [Member] | ||
Regulatory Assets [Abstract] | ||
Current | 40 | 42 |
Noncurrent | 295 | 201 |
Total assets | 335 | 243 |
San Diego Gas and Electric Company [Member] | ||
Regulatory Assets [Abstract] | ||
Current | 81 | 107 |
Noncurrent | 998 | 977 |
San Diego Gas and Electric Company [Member] | Greenhouse Gas Obligation [Member] | ||
Regulatory LIabilities [Abstract] | ||
Current | 16 | 17 |
Noncurrent | 72 | 34 |
Total liabilities | 88 | 51 |
San Diego Gas and Electric Company [Member] | Greenhouse Gas Allowance [Member] | ||
Regulatory Assets [Abstract] | ||
Current | 16 | 17 |
Noncurrent | 182 | 141 |
Total assets | 198 | 158 |
Southern California Gas Company [Member] | ||
Regulatory Assets [Abstract] | ||
Current | 8 | 7 |
Noncurrent | 589 | 636 |
Southern California Gas Company [Member] | Greenhouse Gas Obligation [Member] | ||
Regulatory LIabilities [Abstract] | ||
Current | 24 | 18 |
Noncurrent | 96 | 41 |
Total liabilities | 120 | 59 |
Southern California Gas Company [Member] | Greenhouse Gas Allowance [Member] | ||
Regulatory Assets [Abstract] | ||
Current | 24 | 19 |
Noncurrent | 109 | 43 |
Total assets | $ 133 | $ 62 |
SIGNIFICANT ACCOUNTING POLICI54
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - PROPERTY, PLANT, AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 43,624 | $ 38,200 | |
Depreciation | 1,236 | 1,178 | $ 1,126 |
Accumulated depreciation | 10,693 | 10,161 | |
Other non-utility [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | 755 | 860 | |
Utility electric distribution operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | 252 | 199 | |
Plant, pipeline and other distribution assets of ecogas [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | 33 | 36 | |
Total Other Operating Units And Parent [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | 1,007 | 1,059 | |
Plant, pipeline and other distribution assets of Mobile Gas [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | 35 | ||
Plant, pipeline and other distribution assets of Willmut Gas [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | 3 | ||
San Diego Gas and Electric Company [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 17,844 | 16,458 | |
Depreciation | 583 | 544 | $ 512 |
Accumulated depreciation | 4,594 | 4,202 | |
San Diego Gas and Electric Company [Member] | Natural gas operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 1,897 | $ 1,642 | |
Depreciation rates (percentage) | 2.40% | 2.52% | 2.72% |
Accumulated depreciation | $ 721 | $ 690 | |
San Diego Gas and Electric Company [Member] | Electric distribution [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 6,497 | $ 6,151 | |
Depreciation rates (percentage) | 3.86% | 3.79% | 3.79% |
Accumulated depreciation | $ 3,873 | $ 3,512 | |
Accumulated depreciation of capital leased assets | 39 | 34 | |
San Diego Gas and Electric Company [Member] | Electric transmission [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 5,152 | $ 4,870 | |
Depreciation rates (percentage) | 2.66% | 2.62% | 2.59% |
San Diego Gas and Electric Company [Member] | Electric generation [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 1,932 | $ 1,891 | |
Depreciation rates (percentage) | 4.00% | 3.89% | 3.86% |
Capital leased assets | $ 258 | ||
San Diego Gas and Electric Company [Member] | Other electric [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 1,059 | $ 981 | |
Depreciation rates (percentage) | 5.66% | 5.73% | 7.09% |
Capital leased assets | $ 21 | $ 20 | |
San Diego Gas and Electric Company [Member] | Construction work in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 1,307 | 923 | |
San Diego Gas and Electric Company [Member] | Southwest Powerlink (SWPL) transmission line [Member] | Electric transmission [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 388 | ||
Ownership interest | 91.00% | ||
Accumulated depreciation | $ 229 | ||
San Diego Gas and Electric Company [Member] | Southwest Powerlink (SWPL) transmission line [Member] | Construction work in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 46 | ||
Southern California Gas Company [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 15,344 | 14,171 | |
Depreciation | 474 | 459 | $ 429 |
Accumulated depreciation | 5,092 | 4,900 | |
Southern California Gas Company [Member] | Natural gas operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 14,428 | $ 13,241 | |
Depreciation rates (percentage) | 3.64% | 3.83% | 3.89% |
Capital leased assets | $ 32 | $ 30 | |
Accumulated depreciation | 5,079 | 4,810 | |
Accumulated depreciation of capital leased assets | 31 | 29 | |
Southern California Gas Company [Member] | Other non-utility [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 34 | $ 110 | |
Depreciation rates (percentage) | 6.55% | 3.95% | 2.88% |
Accumulated depreciation | $ 13 | $ 90 | |
Southern California Gas Company [Member] | Construction work in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 882 | 820 | |
Other Operating Units and Parent [Member] | Land and land rights [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 381 | 289 | |
Other Operating Units and Parent [Member] | Land and land rights [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 20 years | ||
Other Operating Units and Parent [Member] | Land and land rights [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 55 years | ||
Other Operating Units and Parent [Member] | Land and land rights [Member] | Weighted Average [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 33 years | ||
Other Operating Units and Parent [Member] | Utility electric distribution operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 1,519 | 1,362 | |
Other Operating Units and Parent [Member] | Utility electric distribution operations [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 12 years | ||
Other Operating Units and Parent [Member] | Utility electric distribution operations [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 60 years | ||
Other Operating Units and Parent [Member] | Utility electric distribution operations [Member] | Weighted Average [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 52 years | ||
Other Operating Units and Parent [Member] | Generating plants [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 1,874 | 782 | |
Other Operating Units and Parent [Member] | Generating plants [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Other Operating Units and Parent [Member] | Generating plants [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 100 years | ||
Other Operating Units and Parent [Member] | Generating plants [Member] | Weighted Average [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 32 years | ||
Other Operating Units and Parent [Member] | LNG terminals [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 1,129 | 1,124 | |
Other Operating Units and Parent [Member] | LNG terminals [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Other Operating Units and Parent [Member] | LNG terminals [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 43 years | ||
Other Operating Units and Parent [Member] | LNG terminals [Member] | Weighted Average [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 43 years | ||
Other Operating Units and Parent [Member] | Pipelines and storage [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 3,242 | 2,311 | |
Other Operating Units and Parent [Member] | Pipelines and storage [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Other Operating Units and Parent [Member] | Pipelines and storage [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 55 years | ||
Other Operating Units and Parent [Member] | Pipelines and storage [Member] | Weighted Average [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 43 years | ||
Other Operating Units and Parent [Member] | Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 235 | 233 | |
Other Operating Units and Parent [Member] | Other [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 1 year | ||
Other Operating Units and Parent [Member] | Other [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 50 years | ||
Other Operating Units and Parent [Member] | Other [Member] | Weighted Average [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 12 years | ||
Other Operating Units and Parent [Member] | Construction work in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 1,488 | 1,022 | |
Other Operating Units and Parent [Member] | Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 568 | 448 | |
Capital leased assets | $ 136 | 136 | |
Other Operating Units and Parent [Member] | Other [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 1 year | ||
Other Operating Units and Parent [Member] | Other [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 80 years | ||
Other Operating Units and Parent [Member] | Other [Member] | Weighted Average [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 32 years | ||
Other Operating Units and Parent [Member] | Plant, pipeline and other distribution assets of ecogas [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 128 | 142 | |
Other Operating Units and Parent [Member] | Total Other Operating Units And Parent [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 10,436 | 7,571 | |
Other Operating Units and Parent [Member] | Plant, pipeline and other distribution assets of Mobile Gas [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 204 | ||
Other Operating Units and Parent [Member] | Plant, pipeline and other distribution assets of Willmut Gas [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 28 |
SIGNIFICANT ACCOUNTING POLICI55
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - CAPITALIZED FINANCING COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Capitalized Financing Costs Disclosure [Line Items] | |||
Total capitalized financing costs | $ 236 | $ 201 | $ 167 |
San Diego Gas and Electric Company [Member] | |||
Capitalized Financing Costs Disclosure [Line Items] | |||
Total capitalized financing costs | 62 | 51 | 52 |
Southern California Gas Company [Member] | |||
Capitalized Financing Costs Disclosure [Line Items] | |||
Total capitalized financing costs | $ 55 | $ 49 | $ 34 |
SIGNIFICANT ACCOUNTING POLICI56
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - GOODWILL (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 819,000,000 | $ 931,000,000 |
Acquisition of businesses | 1,590,000,000 | |
Sale of business | (72,000,000) | |
Foreign currency translation | 27,000,000 | (112,000,000) |
Goodwill, ending balance | 2,364,000,000 | 819,000,000 |
Sempra South American Utilities [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 722,000,000 | 834,000,000 |
Acquisition of businesses | 0 | |
Sale of business | 0 | |
Foreign currency translation | 27,000,000 | (112,000,000) |
Goodwill, ending balance | 749,000,000 | 722,000,000 |
Sempra Mexico [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 25,000,000 | 25,000,000 |
Acquisition of businesses | 1,590,000,000 | |
Sale of business | 0 | |
Foreign currency translation | 0 | 0 |
Goodwill, ending balance | 1,615,000,000 | 25,000,000 |
Sempra LNG and Midstream [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 72,000,000 | 72,000,000 |
Acquisition of businesses | 0 | |
Sale of business | (72,000,000) | |
Foreign currency translation | 0 | 0 |
Goodwill, ending balance | $ 0 | $ 72,000,000 |
SIGNIFICANT ACCOUNTING POLICI57
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Gross | $ 632 | $ 632 | $ 477 | |
Accumulated amortization | (84) | (84) | (73) | |
Finite-lived intangible assets, Net | 548 | 548 | 404 | |
Intangible assets amortization expense | 11 | 10 | $ 10 | |
Future intangible asset amortization expense per year | 18 | |||
Storage rights [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Gross | 138 | 138 | 138 | |
Accumulated amortization | (25) | $ (25) | (22) | |
Amortization period | 46 years | |||
Development rights [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Gross | 322 | $ 322 | 322 | |
Accumulated amortization | (53) | $ (53) | (47) | |
Amortization period | 50 years | |||
Renewable energy and consumption permit [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Gross | 154 | $ 154 | 0 | |
Amortization period | 20 years | |||
Other [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Gross | 18 | $ 18 | 17 | |
Accumulated amortization | (6) | $ (6) | $ (4) | |
Other [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 10 years | |||
Sempra Mexico [Member] | Renewable energy and consumption permit [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | $ 154 |
SIGNIFICANT ACCOUNTING POLICI58
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - VARIABLE INTEREST ENTITIES (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)MW | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Investments [Abstract] | ||||||||||||
Equity method investment | $ 2,080 | $ 2,889 | $ 2,080 | $ 2,889 | ||||||||
Assets [Abstract] | ||||||||||||
Cash and cash equivalents | 349 | 403 | 349 | 403 | $ 570 | $ 904 | ||||||
Restricted cash | 66 | 27 | 66 | 27 | ||||||||
Inventories | 258 | 298 | 258 | 298 | ||||||||
Other | 271 | 267 | 271 | 267 | ||||||||
Total current assets | 3,110 | 2,891 | 3,110 | 2,891 | ||||||||
Restricted cash | 10 | 20 | 10 | 20 | ||||||||
Property, plant and equipment, net | 32,931 | 28,039 | 32,931 | 28,039 | ||||||||
Total assets | 47,786 | 41,150 | 47,786 | 41,150 | 39,651 | |||||||
Liabilities [Abstract] | ||||||||||||
Current portion of long-term debt | 913 | 907 | 913 | 907 | ||||||||
Fixed-price contracts and other derivatives | 83 | 56 | 83 | 56 | ||||||||
Other | 557 | 551 | 557 | 551 | ||||||||
Total current liabilities | 5,927 | 4,612 | 5,927 | 4,612 | ||||||||
Asset retirement obligations | 2,431 | 2,126 | 2,431 | 2,126 | ||||||||
Long-term debt | 14,429 | 13,134 | 14,429 | 13,134 | ||||||||
Fixed-price contracts and other derivatives | 405 | 240 | 405 | 240 | ||||||||
Equity [Abstract] | ||||||||||||
Other noncontrolling interests | 2,270 | 750 | 2,270 | 750 | ||||||||
Total liabilities and equity | 47,786 | 41,150 | 47,786 | 41,150 | ||||||||
Net assets less other noncontrolling interests | 12,951 | 11,809 | 12,951 | 11,809 | ||||||||
Operating Expenses [Abstract] | ||||||||||||
Operation and maintenance | 2,970 | 2,886 | 2,935 | |||||||||
Depreciation and amortization | 1,312 | 1,250 | 1,156 | |||||||||
Interest expense | (553) | (561) | (554) | |||||||||
(Loss) income before taxes/Net (loss) income | 1,519 | 1,448 | 1,262 | |||||||||
Losses (earnings) attributable to noncontrolling interest | (148) | (98) | (100) | |||||||||
Earnings attributable to common shares | 379 | $ 622 | $ 16 | $ 353 | 369 | $ 248 | $ 295 | $ 437 | 1,370 | 1,349 | 1,161 | |
San Diego Gas and Electric Company [Member] | ||||||||||||
Assets [Abstract] | ||||||||||||
Cash and cash equivalents | 8 | 20 | 8 | 20 | 8 | $ 27 | ||||||
Restricted cash | 11 | 23 | 11 | 23 | ||||||||
Inventories | 80 | 75 | 80 | 75 | ||||||||
Other | 19 | 20 | 19 | 20 | ||||||||
Total current assets | 1,072 | 1,004 | 1,072 | 1,004 | ||||||||
Restricted cash | 1 | 0 | 1 | 0 | ||||||||
Property, plant and equipment, net | 13,250 | 12,256 | 13,250 | 12,256 | ||||||||
Total assets | 17,719 | 16,515 | 17,719 | 16,515 | ||||||||
Liabilities [Abstract] | ||||||||||||
Current portion of long-term debt | 191 | 50 | 191 | 50 | ||||||||
Fixed-price contracts and other derivatives | 61 | 51 | 61 | 51 | ||||||||
Other | 82 | 101 | 82 | 101 | ||||||||
Total current liabilities | 1,168 | 1,207 | 1,168 | 1,207 | ||||||||
Asset retirement obligations | 751 | 729 | 751 | 729 | ||||||||
Long-term debt | 4,658 | 4,455 | 4,658 | 4,455 | ||||||||
Fixed-price contracts and other derivatives | 189 | 106 | 189 | 106 | ||||||||
Equity [Abstract] | ||||||||||||
Other noncontrolling interests | 37 | 53 | 37 | 53 | ||||||||
Total liabilities and equity | 17,719 | 16,515 | 17,719 | 16,515 | ||||||||
Net assets less other noncontrolling interests | 5,641 | 5,223 | 5,641 | 5,223 | ||||||||
Operating Expenses [Abstract] | ||||||||||||
Operating income | 990 | 1,058 | 959 | |||||||||
Interest expense | (195) | (204) | (202) | |||||||||
(Loss) income before taxes/Net (loss) income | 565 | 606 | 527 | |||||||||
Losses (earnings) attributable to noncontrolling interest | 5 | (19) | (20) | |||||||||
Earnings attributable to common shares | $ 570 | 587 | 507 | |||||||||
San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member] | ||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||
Generating capacity (in mw) | MW | 605 | |||||||||||
Put option | 280 | $ 280 | ||||||||||
Investments [Abstract] | ||||||||||||
Equity of Variable interest entity | 37 | 53 | 37 | 53 | ||||||||
Secured debt of variable interest entity | 305 | 305 | ||||||||||
Assets [Abstract] | ||||||||||||
Cash and cash equivalents | 6 | 5 | 6 | 5 | ||||||||
Restricted cash | 11 | 23 | 11 | 23 | ||||||||
Inventories | 3 | 3 | 3 | 3 | ||||||||
Other | 2 | 0 | 2 | 0 | ||||||||
Total current assets | 22 | 31 | 22 | 31 | ||||||||
Restricted cash | 1 | 0 | 1 | 0 | ||||||||
Property, plant and equipment, net | 354 | 383 | 354 | 383 | ||||||||
Total assets | 377 | 414 | 377 | 414 | ||||||||
Liabilities [Abstract] | ||||||||||||
Current portion of long-term debt | 10 | 10 | 10 | 10 | ||||||||
Fixed-price contracts and other derivatives | 13 | 14 | 13 | 14 | ||||||||
Other | 5 | 5 | 5 | 5 | ||||||||
Total current liabilities | 28 | 29 | 28 | 29 | ||||||||
Long-term debt | 293 | 303 | 293 | 303 | ||||||||
Fixed-price contracts and other derivatives | 12 | 23 | 12 | 23 | ||||||||
Deferred credits and other | 7 | 6 | 7 | 6 | ||||||||
Equity [Abstract] | ||||||||||||
Other noncontrolling interests | 37 | 53 | 37 | 53 | ||||||||
Total liabilities and equity | 377 | 414 | 377 | 414 | ||||||||
Operating Expenses [Abstract] | ||||||||||||
Cost of electric fuel and purchased power | (79) | (83) | (83) | |||||||||
Operation and maintenance | 29 | 19 | 19 | |||||||||
Depreciation and amortization | 35 | 26 | 27 | |||||||||
Total operating expenses | (15) | (38) | (37) | |||||||||
Operating income | 15 | 38 | 37 | |||||||||
Interest expense | (20) | (19) | (17) | |||||||||
(Loss) income before taxes/Net (loss) income | (5) | 19 | 20 | |||||||||
Losses (earnings) attributable to noncontrolling interest | 5 | (19) | (20) | |||||||||
Earnings attributable to common shares | 0 | 0 | $ 0 | |||||||||
Sempra Renewables [Member] | ||||||||||||
Assets [Abstract] | ||||||||||||
Inventories | 4 | 3 | 4 | 3 | ||||||||
Sempra Renewables [Member] | Noncontrolling Tax Equity Investors [Member] | ||||||||||||
Assets [Abstract] | ||||||||||||
Cash and cash equivalents | 88 | 88 | ||||||||||
Accounts receivable | 3 | 3 | ||||||||||
Total current assets | 91 | 91 | ||||||||||
Property, plant and equipment, net | 926 | 926 | ||||||||||
Total assets | 1,017 | 1,017 | ||||||||||
Liabilities [Abstract] | ||||||||||||
Accounts payable | 68 | 68 | ||||||||||
Other | 7 | 7 | ||||||||||
Total current liabilities | 75 | 75 | ||||||||||
Asset retirement obligations | 27 | 27 | ||||||||||
Total liabilities | 102 | 102 | ||||||||||
Equity [Abstract] | ||||||||||||
Other noncontrolling interests | 468 | 468 | ||||||||||
Net assets less other noncontrolling interests | 447 | 447 | ||||||||||
Sempra LNG and Midstream [Member] | ||||||||||||
Assets [Abstract] | ||||||||||||
Inventories | 82 | 98 | 82 | 98 | ||||||||
Sempra LNG and Midstream [Member] | Cameron LNG Holdings [Member] | ||||||||||||
Investments [Abstract] | ||||||||||||
Equity method investment | $ 997 | $ 983 | $ 997 | $ 983 |
SIGNIFICANT ACCOUNTING POLICI59
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning Balance | $ 2,255 | $ 2,190 |
Accretion expense | 101 | 92 |
Liabilities incurred and acquired | 35 | 1 |
Deconsolidation and reclassification | (16) | 0 |
Payments | (47) | (80) |
Revisions | 225 | 52 |
Ending Balance | 2,553 | 2,255 |
Asset retirement obligations deconsolidated | 12 | |
Asset retirement obligations reclassified | 4 | |
San Diego Gas and Electric Company [Member] | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning Balance | 828 | 873 |
Accretion expense | 38 | 40 |
Liabilities incurred and acquired | 0 | 0 |
Deconsolidation and reclassification | 0 | 0 |
Payments | (46) | (79) |
Revisions | 10 | (6) |
Ending Balance | 830 | 828 |
Southern California Gas Company [Member] | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning Balance | 1,383 | 1,276 |
Accretion expense | 61 | 49 |
Liabilities incurred and acquired | 0 | 0 |
Deconsolidation and reclassification | 0 | 0 |
Payments | 0 | 0 |
Revisions | 215 | 58 |
Ending Balance | $ 1,659 | $ 1,383 |
SIGNIFICANT ACCOUNTING POLICI60
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 11,809 | ||
Amounts reclassified from AOCI | 18 | $ 18 | $ 20 |
Ending Balance | 12,951 | 11,809 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Sale of noncontrolling interests, net of offering costs | 1,701 | ||
Foreign currency translation adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (582) | (322) | (129) |
OCI before reclassifications | 42 | (260) | (193) |
Amounts reclassified from AOCI | 13 | 0 | 0 |
Total other comprehensive income (loss) | 55 | (260) | (193) |
Ending Balance | (527) | (582) | (322) |
Financial instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (137) | (90) | (26) |
OCI before reclassifications | (7) | (57) | (70) |
Amounts reclassified from AOCI | 19 | 10 | 6 |
Total other comprehensive income (loss) | 12 | (47) | (64) |
Ending Balance | (125) | (137) | (90) |
Pension and other postretirement benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (87) | (85) | (73) |
OCI before reclassifications | (15) | (10) | (26) |
Amounts reclassified from AOCI | 6 | 8 | 14 |
Total other comprehensive income (loss) | (9) | (2) | (12) |
Ending Balance | (96) | (87) | (85) |
Accumulated other comprehensive income (loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (806) | (497) | (228) |
OCI before reclassifications | 20 | (327) | (289) |
Amounts reclassified from AOCI | 38 | 18 | 20 |
Total other comprehensive income (loss) | 58 | (309) | (269) |
Ending Balance | (748) | (806) | (497) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Sale of noncontrolling interests, net of offering costs | 20 | ||
Parent Company [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 11,809 | ||
Ending Balance | 12,951 | 11,809 | |
San Diego Gas and Electric Company [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 5,223 | ||
Amounts reclassified from AOCI | 1 | 1 | 2 |
Ending Balance | 5,641 | 5,223 | |
San Diego Gas and Electric Company [Member] | Pension and other postretirement benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (8) | (12) | (9) |
OCI before reclassifications | (1) | 3 | (5) |
Amounts reclassified from AOCI | 1 | 1 | 2 |
Total other comprehensive income (loss) | 0 | 4 | (3) |
Ending Balance | (8) | (8) | (12) |
San Diego Gas and Electric Company [Member] | Accumulated other comprehensive income (loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (8) | (12) | (9) |
OCI before reclassifications | (1) | 3 | (5) |
Amounts reclassified from AOCI | 1 | 1 | 2 |
Total other comprehensive income (loss) | 0 | 4 | (3) |
Ending Balance | (8) | (8) | (12) |
Southern California Gas Company [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 3,149 | ||
Amounts reclassified from AOCI | 1 | 0 | 3 |
Ending Balance | 3,510 | 3,149 | |
Southern California Gas Company [Member] | Financial instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (14) | (14) | (14) |
OCI before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCI | 1 | 0 | |
Total other comprehensive income (loss) | 1 | 0 | 0 |
Ending Balance | (13) | (14) | (14) |
Southern California Gas Company [Member] | Pension and other postretirement benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (5) | (4) | (4) |
OCI before reclassifications | (4) | (1) | (3) |
Amounts reclassified from AOCI | 0 | 0 | 3 |
Total other comprehensive income (loss) | (4) | (1) | 0 |
Ending Balance | (9) | (5) | (4) |
Southern California Gas Company [Member] | Accumulated other comprehensive income (loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (19) | (18) | (18) |
OCI before reclassifications | (4) | (1) | (3) |
Amounts reclassified from AOCI | 1 | 3 | |
Total other comprehensive income (loss) | (3) | (1) | 0 |
Ending Balance | $ (22) | $ (19) | $ (18) |
SIGNIFICANT ACCOUNTING POLICI61
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense | $ (553) | $ (561) | $ (554) | ||||||||
Gain on sale of assets | 134 | 70 | 62 | ||||||||
Equity earnings, before income tax | 6 | 104 | 81 | ||||||||
Remeasurement of equity method investment | 617 | 0 | 0 | ||||||||
Equity earnings, net of income tax | 78 | 85 | 38 | ||||||||
Other income, net | 132 | 126 | 137 | ||||||||
Energy-related businesses | 922 | 977 | 1,277 | ||||||||
Income before income taxes | 1,830 | 1,704 | 1,524 | ||||||||
Income tax (expense) benefit | (389) | (341) | (300) | ||||||||
Earnings attributable to noncontrolling interest | 148 | 98 | 100 | ||||||||
Net income/Earnings | $ 379 | $ 622 | $ 16 | $ 353 | $ 369 | $ 248 | $ 295 | $ 437 | 1,370 | 1,349 | 1,161 |
Reclassification from AOCI, Net of taxes | 18 | 18 | 20 | ||||||||
Financial instruments attributable to parent [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from AOCI, Net of taxes | 19 | 10 | 6 | ||||||||
Amortization of actuarial loss [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from AOCI, before taxes | 10 | 14 | 23 | ||||||||
Prior service credit [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from AOCI, before taxes | 1 | 0 | 0 | ||||||||
Pension and other postretirement benefits [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from AOCI, before taxes | 11 | 14 | 23 | ||||||||
Reclassification from AOCI, Taxes | (5) | (6) | (9) | ||||||||
Reclassification from AOCI, Net of taxes | 6 | 8 | 14 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income before income taxes | 33 | 29 | 20 | ||||||||
Income tax (expense) benefit | (6) | (4) | (3) | ||||||||
Net of income tax | 27 | 25 | 17 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments [Member] | Interest rate and foreign exchange instruments [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense | 17 | 18 | 21 | ||||||||
Remeasurement of equity method investment | 7 | 0 | 0 | ||||||||
Equity earnings, net of income tax | 5 | 13 | 0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments [Member] | Interest rate instruments [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gain on sale of assets | 0 | 0 | (3) | ||||||||
Equity earnings, before income tax | 10 | 12 | 10 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments [Member] | Commodity Contracts Not Subject To Rate Recovery [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Energy-related businesses | (6) | (14) | (8) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments attributable to Noncontrolling interests [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Earnings attributable to noncontrolling interest | 15 | 15 | 11 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments attributable to parent [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income/Earnings | 12 | 10 | 6 | ||||||||
Parent Company [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense | (277) | (261) | (235) | ||||||||
Equity earnings, net of income tax | 1,549 | 1,519 | 1,291 | ||||||||
Other income, net | (2) | 7 | 50 | ||||||||
Income tax (expense) benefit | 181 | 150 | 133 | ||||||||
Net of income tax | (179) | (170) | (130) | ||||||||
Net income/Earnings | 1,370 | 1,349 | 1,161 | ||||||||
San Diego Gas and Electric Company [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense | (195) | (204) | (202) | ||||||||
Other income, net | 50 | 36 | 40 | ||||||||
Income before income taxes | 845 | 890 | 797 | ||||||||
Income tax (expense) benefit | (280) | (284) | (270) | ||||||||
Earnings attributable to noncontrolling interest | (5) | 19 | 20 | ||||||||
Net income/Earnings | 570 | 587 | 507 | ||||||||
Reclassification from AOCI, Net of taxes | 1 | 1 | 2 | ||||||||
San Diego Gas and Electric Company [Member] | Amortization of actuarial loss [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from AOCI, before taxes | 1 | 1 | 3 | ||||||||
San Diego Gas and Electric Company [Member] | Pension and other postretirement benefits [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from AOCI, Taxes | 0 | 0 | (1) | ||||||||
Reclassification from AOCI, Net of taxes | 1 | 1 | 2 | ||||||||
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments [Member] | Interest rate instruments [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense | 12 | 12 | 11 | ||||||||
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments attributable to Noncontrolling interests [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Earnings attributable to noncontrolling interest | 12 | 12 | 11 | ||||||||
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments attributable to parent [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from AOCI, Net of taxes | 0 | 0 | 0 | ||||||||
Southern California Gas Company [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense | (97) | (84) | (69) | ||||||||
Other income, net | 32 | 30 | 20 | ||||||||
Income before income taxes | 493 | 558 | 472 | ||||||||
Income tax (expense) benefit | (143) | (138) | (139) | ||||||||
Net income/Earnings | 350 | 420 | 333 | ||||||||
Reclassification from AOCI, Net of taxes | 1 | 0 | 3 | ||||||||
Southern California Gas Company [Member] | Financial instruments attributable to parent [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from AOCI, Net of taxes | 1 | 0 | |||||||||
Southern California Gas Company [Member] | Amortization of actuarial loss [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from AOCI, before taxes | 0 | 0 | 5 | ||||||||
Southern California Gas Company [Member] | Pension and other postretirement benefits [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from AOCI, Taxes | 0 | 0 | (2) | ||||||||
Reclassification from AOCI, Net of taxes | 0 | 0 | 3 | ||||||||
Southern California Gas Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments attributable to parent [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income tax (expense) benefit | 0 | (1) | (1) | ||||||||
Net income/Earnings | 1 | 0 | 0 | ||||||||
Southern California Gas Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments attributable to parent [Member] | Interest rate instruments [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense | $ 1 | $ 1 | $ 1 |
SIGNIFICANT ACCOUNTING POLICI62
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - NONCONTROLLING INTERESTS (Details) $ / shares in Units, MXN in Millions, $ in Millions | Oct. 13, 2016USD ($)$ / sharesMXN / $shares | Oct. 13, 2016MXNshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2016USD ($) | Oct. 19, 2016 | Oct. 18, 2016 | Nov. 30, 2014 |
Noncontrolling Interest [Line Items] | |||||||
Impact of issuance on equity | $ 1,701 | ||||||
IEnova [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Price of shares issued (in pesos per share) | $ / shares | $ 80 | ||||||
Additional shares purchased | shares | 83,125,000 | ||||||
Cash consideration (fair value of total consideration) | $ 351 | ||||||
Shares issued | shares | 380,000,000 | 380,000,000 | |||||
Proceeds from sale of shares | $ 1,570 | MXN 29,860 | |||||
Exchange rate (in pesos) | MXN / $ | 18.96 | ||||||
Ownership interest | 66.40% | 81.10% | |||||
IEnova [Member] | Bridge Loan [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Repayments of debt | $ 1,150 | ||||||
IEnova [Member] | Related Party Debt [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Repayments of debt | 100 | ||||||
IEnova [Member] | Revolving Credit Facility [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Repayments of debt | 250 | ||||||
Ventika [Member] | IEnova [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Cash consideration (fair value of total consideration) | $ 50 | ||||||
Shareholders' equity [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Impact of issuance on equity | 281 | ||||||
Shareholders' equity [Member] | IEnova [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Impact of issuance on equity | 281 | ||||||
Non-controlling interests [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Impact of issuance on equity | 1,420 | ||||||
Non-controlling interests [Member] | IEnova [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Impact of issuance on equity | 948 | ||||||
Sempra Renewables [Member] | Noncontrolling Tax Equity Investors [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Proceeds from sale of noncontrolling interests | $ 472 | ||||||
Sempra South American Utilities [Member] | Luz Del Sur [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Additional shares purchased | shares | 18,625,594 | ||||||
Cash consideration (fair value of total consideration) | $ 74 | ||||||
Ownership interest | 83.60% | 79.80% |
SIGNIFICANT ACCOUNTING POLICI63
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - OTHER NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2015 | Dec. 31, 2014 |
Noncontrolling Interest [Line Items] | ||||
Other noncontrolling interests | $ 2,270 | $ 750 | ||
SDG&E [Member] | Otay Mesa VIE [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage held by noncontrolling owners | 100.00% | 100.00% | ||
Other noncontrolling interests | $ 37 | $ 53 | ||
Sempra South American Utilities [Member] | Chilquinta Energia subsidiaries [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Other noncontrolling interests | $ 22 | $ 21 | ||
Sempra South American Utilities [Member] | Chilquinta Energia subsidiaries [Member] | Minimum [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage held by noncontrolling owners | 23.10% | 23.50% | ||
Sempra South American Utilities [Member] | Chilquinta Energia subsidiaries [Member] | Maximum [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage held by noncontrolling owners | 43.40% | 43.40% | ||
Sempra South American Utilities [Member] | Luz Del Sur [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage held by noncontrolling owners | 16.40% | 16.40% | ||
Other noncontrolling interests | $ 173 | $ 164 | ||
Sempra South American Utilities [Member] | Tecsur [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage held by noncontrolling owners | 9.80% | 9.80% | ||
Other noncontrolling interests | $ 4 | $ 4 | ||
Sempra Mexico [Member] | IEnova [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage held by noncontrolling owners | 33.60% | 18.90% | 33.60% | 18.90% |
Other noncontrolling interests | $ 1,524 | $ 468 | ||
Sempra Renewables [Member] | Tax equity arrangement – wind [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage held by noncontrolling owners | 0.00% | |||
Other noncontrolling interests | 92 | $ 0 | ||
Sempra Renewables [Member] | Tax equity arrangement – solar [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage held by noncontrolling owners | 0.00% | |||
Other noncontrolling interests | $ 376 | $ 0 | ||
Sempra LNG & MIdstream [Member] | Bay Gas Storage Company [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage held by noncontrolling owners | 9.10% | 9.10% | ||
Other noncontrolling interests | $ 27 | $ 25 | ||
Sempra LNG & MIdstream [Member] | Liberty Gas Storage [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage held by noncontrolling owners | 23.30% | 23.20% | ||
Other noncontrolling interests | $ 14 | $ 14 | ||
Sempra LNG & MIdstream [Member] | Southern Gas Transmission [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage held by noncontrolling owners | 49.00% | 49.00% | ||
Other noncontrolling interests | $ 1 | $ 1 |
SIGNIFICANT ACCOUNTING POLICI64
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - REVENUES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues Disclosure [Abstract] | |||
Electric revenues | $ 5,211 | $ 5,158 | $ 5,209 |
Natural gas revenues | 4,050 | 4,096 | 4,549 |
Total Utilities Revenues at Sempra Energy Consolidated | $ 9,261 | $ 9,254 | $ 9,758 |
SIGNIFICANT ACCOUNTING POLICI65
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - FOREIGN CURRENCY TRANSLATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Foreign currency transaction losses | $ 1 | $ 7 | $ 15 |
SIGNIFICANT ACCOUNTING POLICI66
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - TRANSACTIONS WITH AFFILIATES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - current | $ 26 | $ 6 |
Due from unconsolidated affiliates - noncurrent | 201 | 186 |
Due to unconsolidated affiliates - current | $ (11) | (14) |
Joint venture with PEMEX [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction rate | 5.27% | |
ESJ joint venture [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction rate | 7.15% | |
Sempra LNG and Midstream [Member] | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - noncurrent | $ 0 | 3 |
LIBOR [Member] | Joint venture with PEMEX [Member] | ||
Related Party Transaction [Line Items] | ||
Variable percentage rate | 450.00% | |
LIBOR [Member] | ESJ joint venture [Member] | ||
Related Party Transaction [Line Items] | ||
Variable percentage rate | 637.50% | |
Sempra South American Utilities [Member] | Eletrans [Member] | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - noncurrent | $ 96 | 72 |
Sempra South American Utilities [Member] | Other related parties [Member] | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - noncurrent | 1 | 0 |
Sempra Mexico [Member] | PEMEX Three year loan A [Member] | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - noncurrent | 2 | 3 |
Sempra Mexico [Member] | PEMEX Four year loan A [Member] | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - noncurrent | 44 | 42 |
Sempra Mexico [Member] | PEMEX Four year loan B [Member] | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - noncurrent | 35 | 34 |
Sempra Mexico [Member] | PEMEX Four year loan C [Member] | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - noncurrent | 9 | 8 |
Sempra Mexico [Member] | ESJ joint venture [Member] | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - noncurrent | 14 | 24 |
Parent Company [Member] | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - current | 73 | 62 |
Due from unconsolidated affiliates - noncurrent | 0 | 457 |
Due to unconsolidated affiliates - current | (359) | (332) |
San Diego Gas and Electric Company [Member] | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - current | 4 | 1 |
Due to unconsolidated affiliates - current | (15) | (55) |
San Diego Gas and Electric Company [Member] | Due to/from Sempra Energy [Member] | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - current | 3 | 0 |
Due to unconsolidated affiliates - current | 0 | (34) |
Income taxes due from (to) Sempra Energy | 159 | 28 |
San Diego Gas and Electric Company [Member] | Due to/from Various Affiliates | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - current | 1 | 1 |
Due to unconsolidated affiliates - current | (7) | (8) |
San Diego Gas and Electric Company [Member] | Due to/from SoCalGas | ||
Related Party Transaction [Line Items] | ||
Due to unconsolidated affiliates - current | (8) | (13) |
Southern California Gas Company [Member] | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - current | 8 | 48 |
Due to unconsolidated affiliates - current | (28) | 0 |
Southern California Gas Company [Member] | Due to/from Sempra Energy [Member] | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - current | 0 | 35 |
Due to unconsolidated affiliates - current | (28) | 0 |
Income taxes due from (to) Sempra Energy | $ 5 | $ 1 |
Related party transaction rate | 0.68% | 0.11% |
Loan to unconsolidated affiliate, principal | $ 31 | $ 50 |
Southern California Gas Company [Member] | Due to/from SDG&E | ||
Related Party Transaction [Line Items] | ||
Due from unconsolidated affiliates - current | $ 8 | $ 13 |
SIGNIFICANT ACCOUNTING POLICI67
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - AFFILIATES REVENUE AND COST OF SALES (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2016 | Dec. 31, 2016USD ($)MW | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Related Party Transaction [Line Items] | ||||
Related party revenue | $ 25 | $ 26 | $ 13 | |
Related party cost of sales | 72 | 107 | 78 | |
San Diego Gas and Electric Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party revenue | 7 | 10 | 13 | |
Related party cost of sales | $ 64 | 49 | 17 | |
San Diego Gas and Electric Company [Member] | Energia Sierra Juarez Wind Project [Member] | ||||
Related Party Transaction [Line Items] | ||||
Power purchase agreement term | 20 years | |||
Generating capacity (in mw) | MW | 155 | |||
Southern California Gas Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party revenue | $ 76 | $ 75 | $ 69 | |
Minimum [Member] | Federal Funds Rate [Member] | California Utilities [Member] | ||||
Related Party Transaction [Line Items] | ||||
Variable percentage rate | 13.00% | |||
Maximum [Member] | Federal Funds Rate [Member] | California Utilities [Member] | ||||
Related Party Transaction [Line Items] | ||||
Variable percentage rate | 20.00% |
SIGNIFICANT ACCOUNTING POLICI68
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - RESTRICTED NET ASSETS (Details) | Dec. 31, 2016USD ($) |
Significant Restrictions of Subsidiaries [Line Items] | |
Undistributed earnings of equity investments | $ 44,000,000 |
Sempra South American Utilities [Member] | Luz Del Sur [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | 35,000,000 |
Sempra Mexico [Member] | Mexican Subsidiaries [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | 152,000,000 |
Sempra Mexico [Member] | GdC [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | 14,000,000 |
Sempra Mexico [Member] | Ventika [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | 38,000,000 |
Sempra Mexico [Member] | Energia Sierra Juarez Wind Project [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | $ 10,000,000 |
Ownership percentage in equity method investee | 50.00% |
Sempra Mexico [Member] | Ductos Energéticos del Norte [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | $ 130,000,000 |
Ownership percentage in equity method investee | 50.00% |
Sempra Renewables [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | $ 265,000,000 |
Sempra Renewables [Member] | Solar Project [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | 9,000,000 |
Sempra Renewables [Member] | Tax Equity LLCs [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | $ 78,000,000 |
Sempra Renewables [Member] | Joint Venture One [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Ownership percentage in equity method investee | 50.00% |
Sempra Renewables [Member] | Joint Venture Two [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Ownership percentage in equity method investee | 25.00% |
Sempra LNG and Midstream [Member] | Bay Gas [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | $ 0 |
Ownership percentage in equity method investee | 91.00% |
Sempra LNG and Midstream [Member] | Cameron LNG Holdings [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | $ 5,500,000,000 |
Consolidated Entities [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | 8,600,000,000 |
Unconsolidated Entities [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | 5,900,000,000 |
San Diego Gas and Electric Company [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | 5,100,000,000 |
Amount available for dividend distribution and loans without prior approval from regulatory agency | $ 579,000,000 |
Authorized percentage of equity | 52.00% |
Minimum common equity ratio | 30.00% |
Southern California Gas Company [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Restricted net assets of consolidated subsidiaries | $ 3,200,000,000 |
Amount available for dividend distribution and loans without prior approval from regulatory agency | $ 340,000,000 |
Authorized percentage of equity | 52.00% |
California Utilities [Member] | |
Significant Restrictions of Subsidiaries [Line Items] | |
Maximum ratio of indebtedness to total capitalization | 0.65 |
SIGNIFICANT ACCOUNTING POLICI69
SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - OTHER INCOME, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income [Line Items] | |||
Allowance for equity funds used during construction | $ 116 | $ 107 | $ 106 |
Investment gains | 23 | 3 | 27 |
Losses on interest rate and foreign exchange instruments, net | (32) | (4) | (15) |
Foreign currency transaction losses | (1) | (7) | (15) |
Sale of other investments | 5 | 11 | 2 |
Electrical infrastructure relocation income | 10 | 7 | 21 |
Regulatory Interest, net | 4 | 3 | 6 |
Sundry, net | 7 | 6 | 5 |
Total | 132 | 126 | 137 |
San Diego Gas and Electric Company [Member] | |||
Other Income [Line Items] | |||
Allowance for equity funds used during construction | 46 | 37 | 37 |
Regulatory Interest, net | 3 | 3 | 6 |
Sundry, net | 1 | (4) | (3) |
Total | 50 | 36 | 40 |
Southern California Gas Company [Member] | |||
Other Income [Line Items] | |||
Allowance for equity funds used during construction | 40 | 36 | 26 |
Regulatory Interest, net | 1 | 0 | 0 |
Sundry, net | (9) | (6) | (6) |
Total | $ 32 | $ 30 | $ 20 |
NEW ACCOUNTING STANDARDS (Detai
NEW ACCOUNTING STANDARDS (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative-effect adjustment from change in accounting principle | $ 107 | $ 107 | ||||||||||
Excess Tax Benefits | $ (34) | $ 0 | $ 0 | |||||||||
Weighted-average number of shares outstanding, diluted | 251,600 | 252,400 | 252,000 | 251,500 | 251,500 | 251,000 | 251,500 | 251,200 | 251,155 | 250,923 | 250,655 | |
Parent Company [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Weighted-average number of shares outstanding, diluted | 251,155 | 250,923 | 250,655 | |||||||||
San Diego Gas and Electric Company [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative-effect adjustment from change in accounting principle | $ 23 | $ 23 | ||||||||||
Southern California Gas Company [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative-effect adjustment from change in accounting principle | 15 | 15 | ||||||||||
Retained earnings [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative-effect adjustment from change in accounting principle | 107 | 107 | ||||||||||
Retained earnings [Member] | San Diego Gas and Electric Company [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative-effect adjustment from change in accounting principle | 23 | 23 | ||||||||||
Retained earnings [Member] | Southern California Gas Company [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative-effect adjustment from change in accounting principle | 15 | 15 | ||||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Excess Tax Benefits | $ 34 | |||||||||||
Weighted-average number of shares outstanding, diluted | 98 | 75 | 89 | |||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member] | Parent Company [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Excess Tax Benefits | 17 | 34 | ||||||||||
Weighted-average number of shares outstanding, diluted | 98 | 75 | 89 | |||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member] | San Diego Gas and Electric Company [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Excess Tax Benefits | 7 | |||||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member] | Southern California Gas Company [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Excess Tax Benefits | $ 4 | |||||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member] | Retained earnings [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative-effect adjustment from change in accounting principle | 107 | 107 | ||||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member] | Retained earnings [Member] | Parent Company [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative-effect adjustment from change in accounting principle | 49 | 49 | ||||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member] | Retained earnings [Member] | San Diego Gas and Electric Company [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative-effect adjustment from change in accounting principle | 23 | 23 | ||||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member] | Retained earnings [Member] | Southern California Gas Company [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative-effect adjustment from change in accounting principle | $ 15 | $ 15 |
ACQUISTION AND DIVESTITURE AC71
ACQUISTION AND DIVESTITURE ACTIVITY - ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) $ in Millions | Dec. 14, 2016 | Sep. 26, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Fair value of equity interest in GdC immediately prior to acquisition | $ 1,144 | $ 0 | $ 0 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Goodwill | 2,364 | $ 819 | $ 931 | ||
Sempra Mexico [Member] | GdC [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash consideration (fair value of total consideration) | $ 1,144 | ||||
Fair value of equity interest in GdC immediately prior to acquisition | 1,144 | ||||
Total fair value of business combination | 2,288 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Cash and cash equivalents | 66 | ||||
Restricted cash | 0 | ||||
Accounts receivable(2) | 39 | ||||
Other current assets | 6 | ||||
Other intangible assets | 0 | ||||
Deferred income taxes | 0 | ||||
Regulatory assets | 33 | ||||
Property, plant and equipment | 1,248 | ||||
Other noncurrent assets | 1 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Short-term debt | 0 | ||||
Accounts payable | (11) | ||||
Due to unconsolidated affiliates | (3) | ||||
Current portion of long-term debt | (49) | ||||
Fixed-price contracts and other derivatives, current | (6) | ||||
Other current liabilities | (20) | ||||
Long-term debt | (315) | ||||
Asset retirement obligations | (5) | ||||
Deferred income taxes | (127) | ||||
Fixed-price contracts and other derivatives, noncurrent | (19) | ||||
Other noncurrent liabilities | (11) | ||||
Total identifiable net assets | 827 | ||||
Goodwill | $ 1,461 | ||||
Sempra Mexico [Member] | GdC [Member] | Scenario, Adjustment [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Regulatory assets | 33 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Deferred income taxes | (119) | ||||
Goodwill | $ 86 | ||||
Sempra Mexico [Member] | Ventika [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash consideration (fair value of total consideration) | $ 310 | ||||
Fair value of equity interest in GdC immediately prior to acquisition | 0 | ||||
Total fair value of business combination | 310 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Cash and cash equivalents | 0 | ||||
Restricted cash | 68 | ||||
Accounts receivable(2) | 14 | ||||
Other current assets | 1 | ||||
Other intangible assets | 154 | ||||
Deferred income taxes | 23 | ||||
Regulatory assets | 0 | ||||
Property, plant and equipment | 673 | ||||
Other noncurrent assets | 3 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Short-term debt | (125) | ||||
Accounts payable | (1) | ||||
Due to unconsolidated affiliates | 0 | ||||
Current portion of long-term debt | (7) | ||||
Fixed-price contracts and other derivatives, current | (4) | ||||
Other current liabilities | (8) | ||||
Long-term debt | (478) | ||||
Asset retirement obligations | (2) | ||||
Deferred income taxes | (120) | ||||
Fixed-price contracts and other derivatives, noncurrent | (10) | ||||
Other noncurrent liabilities | 0 | ||||
Total identifiable net assets | 181 | ||||
Goodwill | $ 129 |
ACQUISTION AND DIVESTITURE AC72
ACQUISTION AND DIVESTITURE ACTIVITY - ACQUISITION ACTIVITY (Details) $ in Millions | Dec. 14, 2016USD ($)MW | Oct. 13, 2016USD ($) | Sep. 26, 2016USD ($) | Sep. 30, 2016USD ($) | Jul. 31, 2016USD ($)MW | Mar. 31, 2015USD ($)MW | May 31, 2014USD ($)facilityMW | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 25, 2016 |
Business Acquisition [Line Items] | |||||||||||||||||||
Cash paid, net of cash and cash equivalents acquired | $ (1,410) | $ (3) | $ 0 | ||||||||||||||||
Revenues | 10,183 | 10,231 | 11,035 | ||||||||||||||||
Earnings/Income attributable to common shares | $ 379 | $ 622 | $ 16 | $ 353 | $ 369 | $ 248 | $ 295 | $ 437 | 1,370 | 1,349 | 1,161 | ||||||||
Proceeds from issuance of common stock | 51 | 52 | $ 56 | ||||||||||||||||
Restricted cash | $ 76 | $ 47 | 76 | 47 | |||||||||||||||
IEnova [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Cash consideration (fair value of total consideration) | $ 351 | ||||||||||||||||||
Ventika [Member] | IEnova [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Cash consideration (fair value of total consideration) | $ 50 | ||||||||||||||||||
Sempra Mexico [Member] | Ramones Norte Pipeline [Member] | IEnova [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Ownership percentage in equity method investee | 25.00% | ||||||||||||||||||
Sempra Mexico [Member] | Ductos Energéticos del Norte [Member] | IEnova [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Ownership percentage in consolidated entity | 50.00% | ||||||||||||||||||
Sempra Mexico [Member] | GdC [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Cash consideration (fair value of total consideration) | $ 1,144 | ||||||||||||||||||
Cash and cash equivalents | $ 66 | ||||||||||||||||||
Sempra Mexico [Member] | GdC [Member] | IEnova [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Acquired percentage interest | 50.00% | 50.00% | 50.00% | ||||||||||||||||
Cash consideration (fair value of total consideration) | $ 1,144 | ||||||||||||||||||
Cash and cash equivalents | 66 | ||||||||||||||||||
Debt assumed | $ 364 | ||||||||||||||||||
Ownership percentage in consolidated entity | 100.00% | ||||||||||||||||||
Ownership percentage before acquisition | 50.00% | ||||||||||||||||||
Cash paid, net of cash and cash equivalents acquired | $ 1,078 | ||||||||||||||||||
Proceeds from debt issued | $ 1,150 | ||||||||||||||||||
Gain on acquisition of remaining voting rights | $ 617 | 617 | |||||||||||||||||
Gain on acquisition of remaining voting rights, net of tax | $ 432 | 432 | |||||||||||||||||
Acquisition costs | 4 | $ 1 | |||||||||||||||||
Revenues | 82 | ||||||||||||||||||
Earnings/Income attributable to common shares | 33 | ||||||||||||||||||
Sempra Mexico [Member] | Ventika [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Cash consideration (fair value of total consideration) | $ 310 | ||||||||||||||||||
Cash and cash equivalents | $ 0 | ||||||||||||||||||
Sempra Mexico [Member] | Ventika [Member] | IEnova [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Acquired percentage interest | 100.00% | ||||||||||||||||||
Debt assumed | $ 610 | ||||||||||||||||||
Proceeds from debt issued | 250 | ||||||||||||||||||
Cash | 10 | ||||||||||||||||||
Acquisition costs | 1 | ||||||||||||||||||
Revenues | 4 | ||||||||||||||||||
Earnings/Income attributable to common shares | $ 3 | ||||||||||||||||||
Consideration transferred | $ 310 | ||||||||||||||||||
Generating capacity (in mw) | MW | 252 | ||||||||||||||||||
Power purchase agreement term | 20 years | ||||||||||||||||||
Proceeds from issuance of common stock | $ 50 | ||||||||||||||||||
Restricted cash | $ 68 | ||||||||||||||||||
Sempra Mexico [Member] | Ventika [Member] | IEnova [Member] | Renewable energy and consumption permit [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||||||||||||||||||
Sempra Renewables [Member] | Huron County, Michigan [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Cash consideration (fair value of total consideration) | $ 22 | ||||||||||||||||||
Ownership percentage in consolidated entity | 100.00% | ||||||||||||||||||
Generating capacity (in mw) | MW | 100 | ||||||||||||||||||
Power purchase agreement term | 15 years | ||||||||||||||||||
Sempra Renewables [Member] | Stearns County, Minnesota [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Ownership percentage in consolidated entity | 100.00% | ||||||||||||||||||
Consideration transferred | $ 8 | ||||||||||||||||||
Generating capacity (in mw) | MW | 78 | ||||||||||||||||||
Power purchase agreement term | 20 years | ||||||||||||||||||
Sempra Renewables [Member] | California Solar Partnership [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Ownership percentage in consolidated entity | 50.00% | ||||||||||||||||||
Consideration transferred | $ 121 | ||||||||||||||||||
Generating capacity (in mw) | MW | 110 | ||||||||||||||||||
Number of facilities acquired | facility | 4 |
ACQUISTION AND DIVESTITURE AC73
ACQUISTION AND DIVESTITURE ACTIVITY - PRO FORMA INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||||
Revenues | $ 10,463 | $ 10,473 | ||
Net income | 1,145 | 1,938 | ||
Earnings | $ 1,058 | $ 1,641 | ||
IEnova [Member] | Sempra Mexico [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage held by noncontrolling owners | 33.60% | 18.90% | 33.60% | 18.90% |
ACQUISTION AND DIVESTITURE AC74
ACQUISTION AND DIVESTITURE ACTIVITY - ASSETS HELD FOR SALE (Details) - Sempra Mexico [Member] - Termoelectrica de Mexicali [Member] $ in Millions | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2016USD ($) | Feb. 29, 2016MW | Dec. 31, 2016USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Generating capacity (in mw) | MW | 625 | ||
Other than temporary impairment in investment | $ 131 | ||
Other than temporary impairment in investment, net of tax | $ 111 | ||
Deferred tax expense | $ 8 | ||
Disposal Group Held-for-sale [Member] | |||
Assets Held for Sale, Assets [Abstract] | |||
Inventories | 9 | ||
Other current assets | 30 | ||
Deferred income taxes | 21 | ||
Property, plant and equipment, net | 120 | ||
Other noncurrent assets | 21 | ||
Total assets held for sale | 201 | ||
Assets Held for Sale, Liabilities [Abstract] | |||
Accounts payable | 2 | ||
Other current liabilities | 5 | ||
Deferred income taxes | 14 | ||
Asset retirement obligations | 4 | ||
Other noncurrent liabilities | 22 | ||
Total liabilities held for sale | $ 47 |
ACQUISTION AND DIVESTITURE AC75
ACQUISTION AND DIVESTITURE ACTIVITY - DIVESTITURES (Details) $ in Millions | Oct. 01, 2014USD ($) | Sep. 30, 2016USD ($) | May 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Apr. 30, 2015USD ($)MW | Nov. 30, 2014USD ($)MW | Jul. 31, 2014USD ($)MW | Mar. 31, 2014USD ($)MW | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 12, 2016USD ($) | Mar. 29, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Liabilities assumed | $ 1,322 | $ 2 | $ 0 | ||||||||||||
Equity method investment | $ 2,889 | 2,080 | $ 2,889 | ||||||||||||
Disposal Group Disposed of by Sale [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Gain on sale of equity interests | (130) | (60) | |||||||||||||
Cash | 2 | 10 | |||||||||||||
Equity method investment | $ 0 | $ (1,085) | |||||||||||||
Rockies Express [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Ownership percentage in equity method investee | 25.00% | ||||||||||||||
Sempra Mexico [Member] | Energia Sierra Juarez Wind Project [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Ownership percentage in equity method investee | 50.00% | ||||||||||||||
Sempra Mexico [Member] | Energia Sierra Juarez Wind Project [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Ownership percentage in equity method investee | 50.00% | ||||||||||||||
Generating capacity (in mw) | MW | 155 | ||||||||||||||
Proceeds from sale, net of cash sold | $ 24 | ||||||||||||||
Cash | 2 | ||||||||||||||
Gain on sale of equity interests | 19 | ||||||||||||||
Gain on sale of assets, after tax | 14 | ||||||||||||||
Property, plant and equipment, net | 137 | ||||||||||||||
Long-term debt, including current portion | 82 | ||||||||||||||
Gain attributable to remeasurement, after tax | $ 7 | ||||||||||||||
Sempra Renewables [Member] | Rosamond Solar [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Ownership percentage in equity method investee | 100.00% | 100.00% | |||||||||||||
Proceeds from sale | $ 26 | ||||||||||||||
Gain on sale of equity interests | 8 | ||||||||||||||
Gain on sale of assets, after tax | 5 | ||||||||||||||
Property, plant and equipment, net | $ 18 | ||||||||||||||
Sempra Renewables [Member] | Broken Bow 2 Wind [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Ownership percentage in equity method investee | 50.00% | ||||||||||||||
Generating capacity (in mw) | MW | 75 | ||||||||||||||
Proceeds from sale | $ 58 | ||||||||||||||
Gain on sale of equity interests | 14 | ||||||||||||||
Gain on sale of assets, after tax | 8 | ||||||||||||||
Property, plant and equipment, net | 151 | ||||||||||||||
Long-term debt, including current portion | $ 72 | ||||||||||||||
Sempra Renewables [Member] | Copper Mountain Solar 3 [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Ownership percentage in equity method investee | 50.00% | ||||||||||||||
Generating capacity (in mw) | MW | 250 | ||||||||||||||
Proceeds from sale, net of cash sold | $ 66 | ||||||||||||||
Cash | 2 | ||||||||||||||
Gain on sale of equity interests | 27 | ||||||||||||||
Gain on sale of assets, after tax | 16 | ||||||||||||||
Property, plant and equipment, net | 247 | ||||||||||||||
Long-term debt, including current portion | $ 97 | ||||||||||||||
Sempra LNG & MIdstream [Member] | Mesquite Power [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Generating capacity (in mw) | MW | 625 | ||||||||||||||
Proceeds from sale | $ 347 | ||||||||||||||
Gain on sale of equity interests | 61 | ||||||||||||||
Gain on sale of assets, after tax | $ 36 | ||||||||||||||
Sempra LNG & MIdstream [Member] | Cameron LNG [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Ownership percentage in equity method investee | 50.20% | ||||||||||||||
Property, plant and equipment, net | $ 1,000 | ||||||||||||||
Ownership percentage of minority partner in equity method investee | 49.80% | ||||||||||||||
Sempra LNG & MIdstream [Member] | Disposal Group Disposed of by Sale [Member] | Energy South [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Gain on sale of equity interests | $ 130 | ||||||||||||||
Gain on sale of assets, after tax | $ 78 | ||||||||||||||
Percentage of ownership before transaction | 100.00% | ||||||||||||||
Proceeds from sale | $ 318 | ||||||||||||||
Cash | $ 2 | ||||||||||||||
Liabilities assumed | $ 67 | ||||||||||||||
Sempra LNG & MIdstream [Member] | Rockies Express [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Ownership percentage in equity method investee | 25.00% | 25.00% | |||||||||||||
Proceeds from sale of investments | $ 443 | $ 440 | |||||||||||||
Equity method investment | 484 | ||||||||||||||
Fair value of investment | 440 | ||||||||||||||
Other than temporary impairment in investment | 44 | $ 44 | |||||||||||||
Other than temporary impairment in investment, net of tax | $ 27 | $ 27 |
ACQUISTION AND DIVESTITURE AC76
ACQUISTION AND DIVESTITURE ACTIVITY - SUMMARY OF DECONSOLIDATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Equity method investment | $ 2,080 | $ 2,889 | |
Disposal Group Disposed of by Sale [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds, net of transaction costs | 304 | $ 152 | |
Cash | (2) | (10) | |
Restricted cash | 0 | (5) | |
Inventory | (3) | 0 | |
Other current assets | (14) | (23) | |
Regulatory assets | (12) | 0 | |
Goodwill | (72) | 0 | |
Property, plant and equipment, net | (199) | (1,557) | |
Other noncurrent assets | (53) | (65) | |
Accounts payable and accrued expenses | 12 | 188 | |
Due to affiliates | 0 | 39 | |
Other current liabilities | 13 | 0 | |
Long-term debt, including current portion | 67 | 251 | |
Deferred income taxes | 36 | 0 | |
Regulatory liabilities | 23 | 0 | |
Asset retirement obligations | 12 | 0 | |
Other noncurrent liabilities | 18 | 12 | |
Accumulated other comprehensive income | 0 | (7) | |
Gain on sale of business and equity interests | (130) | (60) | |
Equity method investment | $ 0 | $ (1,085) |
INVESTMENTS IN UNCONSOLIDATED77
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | $ 2,080 | $ 2,889 | |
Income (Loss) from Equity Method Investments | 6 | 104 | $ 81 |
Cameron LNG Holdings [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Difference between carrying amount of equity method investment and underlying equity | 190 | 143 | |
Rockies Express [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Difference between carrying amount of equity method investment and underlying equity | (357) | ||
R B S Sempra Commodities [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 67 | 67 | |
Energia Sierra Juarez Wind Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Difference between carrying amount of equity method investment and underlying equity | 12 | 12 | |
GdC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Difference between carrying amount of equity method investment and underlying equity | 65 | ||
Other Equity Method Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 17 | 16 | |
Income (loss) from equity method investment earnings (losses) net of tax | 78 | 85 | 38 |
Other Equity Method Investments And Other Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 2,097 | 2,905 | |
Sempra Renewables [Member] | California Solar Partnership [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 113 | 120 | |
Income (Loss) from Equity Method Investments | 7 | 6 | 6 |
Sempra Renewables [Member] | Copper Mountain Solar 3 [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 42 | 44 | |
Income (Loss) from Equity Method Investments | 8 | 8 | 2 |
Sempra Renewables [Member] | Broken Bow 2 Wind [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 35 | 41 | |
Income (Loss) from Equity Method Investments | (2) | (2) | 0 |
Sempra Renewables [Member] | Cedar Creek 2 Wind Farm [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 75 | 75 | |
Income (Loss) from Equity Method Investments | (2) | (6) | (3) |
Sempra Renewables [Member] | Flat Ridge 2 Wind Farm [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 271 | 275 | |
Income (Loss) from Equity Method Investments | (7) | (12) | (7) |
Sempra Renewables [Member] | Fowler Ridge 2 Wind Farm [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 43 | 46 | |
Income (Loss) from Equity Method Investments | 4 | 4 | 2 |
Sempra Renewables [Member] | Mehoopany Wind Farm [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 92 | 92 | |
Income (Loss) from Equity Method Investments | 0 | (1) | (1) |
Sempra Renewables [Member] | Copper Mountain Solar 2 [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 33 | 32 | |
Income (Loss) from Equity Method Investments | 6 | 7 | 3 |
Sempra Renewables [Member] | Mesquite Solar 1 [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 86 | 86 | |
Income (Loss) from Equity Method Investments | 17 | 16 | 14 |
Sempra Renewables [Member] | Auwahi Wind [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 41 | 44 | |
Income (Loss) from Equity Method Investments | 4 | 4 | 4 |
Sempra Renewables [Member] | Other Equity Method Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 13 | 0 | |
Income (Loss) from Equity Method Investments | (1) | 0 | 0 |
Sempra LNG & MIdstream [Member] | Cameron LNG Holdings [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 997 | 983 | |
Income (Loss) from Equity Method Investments | (2) | 5 | 2 |
Sempra LNG & MIdstream [Member] | Rockies Express [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 0 | 477 | |
Income (Loss) from Equity Method Investments | (26) | 79 | 60 |
Sempra Energy and Other [Member] | R B S Sempra Commodities [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 67 | 67 | |
Income (Loss) from Equity Method Investments | 0 | (4) | (2) |
Sempra Energy and Other [Member] | Other Equity Method Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Income (Loss) from Equity Method Investments | 0 | 0 | 1 |
Sempra South American Utilities [Member] | Eletrans [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | (8) | (12) | |
Income (loss) from equity method investment earnings (losses) net of tax | 3 | (4) | (4) |
Sempra Mexico [Member] | Ductos Energéticos del Norte [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 42 | 0 | |
Income (loss) from equity method investment earnings (losses) net of tax | 5 | 0 | 0 |
Sempra Mexico [Member] | Energia Sierra Juarez Wind Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 38 | 30 | |
Income (loss) from equity method investment earnings (losses) net of tax | 6 | 6 | 3 |
Sempra Mexico [Member] | GdC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | 0 | 489 | |
Income (loss) from equity method investment earnings (losses) net of tax | 64 | 83 | $ 39 |
Sempra Mexico [Member] | Infraestructura Marina del Golfo [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method and Other Investments | $ 100 | $ 0 |
INVESTMENTS IN UNCONSOLIDATED78
INVESTMENTS IN UNCONSOLIDATED ENTITIES - NARRATIVE (Details) $ in Millions | Jul. 16, 2014MW | Apr. 30, 2015USD ($) | Jul. 31, 2014MW | Dec. 31, 2016USD ($)MTBcf | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 27, 2016 | Sep. 26, 2016USD ($) | Sep. 25, 2016 | May 31, 2016 | Jun. 30, 2015USD ($) | Nov. 30, 2014USD ($) | Oct. 01, 2014USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Undistributed earnings of equity method investments | $ 44 | $ 299 | |||||||||||
Ownership percentage of operating partner | 50.00% | ||||||||||||
Equity Method Investments in Joint Ventures, capitalized interest | $ 236 | 201 | $ 167 | ||||||||||
Current guarantor obligations | $ 43 | ||||||||||||
Indirect economic and beneficial and ownership interest prior to financial completion | 37.65% | ||||||||||||
Equity Method and Other Investments | $ 2,080 | 2,889 | |||||||||||
R B S Sempra Commodities [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equity Method and Other Investments | $ 67 | 67 | |||||||||||
Rockies Express [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage in equity method investee | 25.00% | ||||||||||||
Payments to acquire equity method investments | $ 113 | ||||||||||||
Cameron LNG [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Payments to acquire equity method investments | 10 | ||||||||||||
Proved developed reserves | Bcf | 1.5 | ||||||||||||
Project capacity | MT | 13.9 | ||||||||||||
Proved undeveloped reserve | MT | 12 | ||||||||||||
Proved undeveloped reserve per day | Bcf | 1.7 | ||||||||||||
Equity Method Investments in Joint Ventures, capitalized interest | $ 47 | $ 49 | |||||||||||
Debt amount | $ 7,400 | ||||||||||||
Fair value at origin guarantee obligation associated with cash flow requirements | $ 82 | ||||||||||||
Indirect economic and beneficial and ownership interest after financial completion | 10.00% | ||||||||||||
Weighted average rate prior to project completion | 1.59% | ||||||||||||
Weighted average rate after project completion | 1.78% | ||||||||||||
Notional amount of derivatives | $ 1,500 | $ 3,700 | |||||||||||
Fixed percentage interest rate | 3.19% | ||||||||||||
Percentage of debt hedged by interest rate derivatives | 50.00% | ||||||||||||
Threshold for canceling of hedge, Percent of unamortized principal | 50.00% | ||||||||||||
Other Long Term Debt, Due July 2030 [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Completion guarantees | 50.20% | ||||||||||||
Debt instrument, maximum borrowing amount | $ 3,900 | ||||||||||||
Other Project Partners [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Completion guarantees | 49.80% | ||||||||||||
LIBOR [Member] | Cameron LNG [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Fixed percentage interest rate | 3.32% | ||||||||||||
Sempra Mexico [Member] | Gasoductos De Chihuahua [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage in equity method investee | 100.00% | 100.00% | 50.00% | ||||||||||
Equity Method and Other Investments | $ 520 | ||||||||||||
Acquired percentage interest | 50.00% | ||||||||||||
Sempra Mexico [Member] | Infraestructura Marina del Golfo [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage in equity method investee | 40.00% | ||||||||||||
Payments to acquire equity method investments | $ 100 | ||||||||||||
Transportation service contract term | 25 years | ||||||||||||
Sempra Mexico [Member] | TransCanada [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage in equity method investee | 60.00% | ||||||||||||
Sempra Mexico [Member] | Energia Sierra Juarez Wind Project [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage in equity method investee | 50.00% | ||||||||||||
Sempra Mexico [Member] | Energia Sierra Juarez Wind Project [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage in equity method investee | 50.00% | ||||||||||||
Generating capacity (in mw) | MW | 155 | 155 | |||||||||||
Sempra Mexico [Member] | DEN [Member] | Gasoductos De Chihuahua [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage in equity method investee | 50.00% |
INVESTMENTS IN UNCONSOLIDATED79
INVESTMENTS IN UNCONSOLIDATED ENTITIES - SUMMARIZED FINANCIAL INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Gross revenue | $ 1,079 | $ 1,533 | $ 1,296 |
Operating expense | (726) | (845) | (749) |
Income from operations | 353 | 688 | 547 |
Interest expense | (127) | (312) | (298) |
Net income/earnings | 252 | 440 | $ 291 |
Current assets | 704 | 750 | |
Noncurrent assets | 9,970 | 15,112 | |
Current liabilities | 629 | 859 | |
Noncurrent liabilities | $ 6,627 | $ 7,862 |
INVESTMENTS IN UNCONSOLIDATED80
INVESTMENTS IN UNCONSOLIDATED ENTITIES - GUARANTEES (Details) $ in Millions | Dec. 31, 2016USD ($) |
Long-term Purchase Commitment [Line Items] | |
Current guarantor obligations | $ 43 |
Debt Service Operations [Member] | Sempra Renewables [Member] | |
Long-term Purchase Commitment [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 332 |
Current guarantor obligations | 8 |
Purchased Power Contracts [Member] | Sempra Renewables [Member] | |
Long-term Purchase Commitment [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 164 |
Current guarantor obligations | $ 2 |
DEBT AND CREDIT FACILITIES - LI
DEBT AND CREDIT FACILITIES - LINES OF CREDIT (Details) | 12 Months Ended | |
Dec. 31, 2016USD ($)lenderline_of_credit | Dec. 31, 2015 | |
Sempra Energy Consolidated [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | $ 4,300,000,000 | |
Number of primary lines of credit | line_of_credit | 3 | |
Weighted average interest rate on total short-term debt outstanding | 1.51% | 1.09% |
Sempra South American Utilities [Member] | PERU | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | $ 392,000,000 | |
Line of credit outstanding | 179,000,000 | |
Committed lines of credit, remaining borrowing capacity | $ 213,000,000 | |
Committed lines of credit, maximum debt to equity ratio | 170.00% | |
Committed lines of credit, bank guarantee | $ 18,000,000 | |
Sempra South American Utilities [Member] | CHILE | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | 113,000,000 | |
Line of credit outstanding | 0 | |
Committed lines of credit, remaining borrowing capacity | 113,000,000 | |
Sempra Mexico [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | 1,170,000,000 | |
Line of credit outstanding | 446,000,000 | |
Committed lines of credit, remaining borrowing capacity | 724,000,000 | |
South America and Mexico [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | 1,675,000,000 | |
Line of credit outstanding | 625,000,000 | |
Committed lines of credit, remaining borrowing capacity | 1,050,000,000 | |
Sempra Energy [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | 1,000,000,000 | |
Committed lines of credit, remaining borrowing capacity | 935,000,000 | |
Committed lines of credit, capacity for issuance of letters of credit | $ 400,000,000 | |
Committed lines of credit, maximum ratio of indebtedness to total capitalization | 65.00% | |
Sempra Energy [Member] | Commercial paper [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit outstanding | $ 0 | |
Sempra Energy [Member] | Letters of credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit outstanding | 65,000,000 | |
Sempra Global [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | 2,335,000,000 | |
Committed lines of credit, remaining borrowing capacity | 1,154,000,000 | |
Sempra Global [Member] | Commercial paper [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit outstanding | 1,181,000,000 | |
Sempra Global [Member] | Letters of credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit outstanding | 0 | |
Southern California Gas Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | 750,000,000 | |
Committed lines of credit, remaining borrowing capacity | $ 688,000,000 | |
Committed lines of credit, maximum ratio of indebtedness to total capitalization | 65.00% | |
Weighted average interest rate on total short-term debt outstanding | 0.75% | |
Southern California Gas Company [Member] | Commercial paper [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit outstanding | $ 62,000,000 | |
Southern California Gas Company [Member] | Letters of credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit outstanding | 0 | |
San Diego Gas and Electric Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | 750,000,000 | |
Committed lines of credit, remaining borrowing capacity | $ 750,000,000 | |
Committed lines of credit, maximum ratio of indebtedness to total capitalization | 65.00% | |
Weighted average interest rate on total short-term debt outstanding | 1.01% | |
San Diego Gas and Electric Company [Member] | Commercial paper [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit outstanding | $ 0 | |
San Diego Gas and Electric Company [Member] | Letters of credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit outstanding | 0 | |
California Utilities [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | 1,000,000,000 | |
Committed lines of credit, remaining borrowing capacity | 938,000,000 | |
Reduction in borrowing limit | (500,000,000) | |
Line of Credit Facility, Available Unused Credit Limit Reduction | (500,000,000) | |
Committed lines of credit, capacity for issuance of letters of credit | 250,000,000 | |
California Utilities [Member] | Commercial paper [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit outstanding | 62,000,000 | |
Reduction in borrowing limit | 0 | |
California Utilities [Member] | Letters of credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit outstanding | 0 | |
Reduction in borrowing limit | 0 | |
Sempra Energy Consolidated [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | 4,335,000,000 | |
Committed lines of credit, remaining borrowing capacity | $ 3,027,000,000 | |
Committed lines of credit, term | 5 years | |
Committed lines of credit, number of lenders | lender | 21 | |
Lender maximum share of debt percent | 7.00% | |
Sempra Energy Consolidated [Member] | Commercial paper [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit outstanding | $ 1,243,000,000 | |
Sempra Energy Consolidated [Member] | Letters of credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit outstanding | $ 65,000,000 |
DEBT AND CREDIT FACILITIES - SC
DEBT AND CREDIT FACILITIES - SCHEDULE OF LONG-TERM DEBT INSTRUMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Oct. 31, 2016 | Jun. 30, 2016 | May 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||||
Current portion of long-term debt | $ (913) | $ (907) | |||
Long-term debt | 14,429 | 13,134 | |||
San Diego Gas and Electric Company [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | 4,349 | 3,989 | |||
Capital lease obligations | 240 | 244 | |||
Long-term debt and capital lease obligations | 4,894 | 4,548 | |||
Current portion of long-term debt | (191) | (50) | |||
Unamortized discount on long-term debt | (11) | (10) | |||
Unamortized debt issuance costs | (34) | (33) | |||
Long-term debt | 4,658 | 4,455 | |||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds Due March 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 140 | 140 | |||
Stated percentage rate | 1.151% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due July 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 161 | 161 | |||
Stated percentage rate | 1.65% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due August 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 350 | 350 | |||
Stated percentage rate | 3.00% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds Due February 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 197 | 232 | |||
Stated percentage rate | 1.914% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due September 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 450 | 450 | |||
Stated percentage rate | 3.60% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds Due May 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 500 | $ 500 | 0 | ||
Stated percentage rate | 2.50% | 2.50% | |||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due June 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 250 | 250 | |||
Stated percentage rate | 6.00% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due December 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 0 | 105 | |||
Stated percentage rate | 5.00% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due January and February 2034 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 176 | 176 | |||
Stated percentage rate | 5.875% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due May 2035 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 250 | 250 | |||
Stated percentage rate | 5.35% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due September 2037 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 250 | 250 | |||
Stated percentage rate | 6.125% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due May 2039 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 75 | 75 | |||
Stated percentage rate | 4.00% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due June 2039 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 300 | 300 | |||
Stated percentage rate | 6.00% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due May 2040 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 250 | 250 | |||
Stated percentage rate | 5.35% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due August 2040 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 500 | 500 | |||
Stated percentage rate | 4.50% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due November 2041 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 250 | 250 | |||
Stated percentage rate | 3.95% | ||||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due April 2042 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 250 | 250 | |||
Stated percentage rate | 4.30% | ||||
San Diego Gas and Electric Company [Member] | Capital Lease Obligations, Purchased Power Agreements [Member] | |||||
Debt Instrument [Line Items] | |||||
Capital lease obligations | $ 239 | 243 | |||
San Diego Gas and Electric Company [Member] | Capital Lease Obligations, Other [Member] | |||||
Debt Instrument [Line Items] | |||||
Capital lease obligations | 1 | 1 | |||
San Diego Gas and Electric Company [Member] | Other Long-term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt and capital lease obligations | 545 | 559 | |||
San Diego Gas and Electric Company [Member] | Otay Mesa Energy Center Loan Payable Currently Through April 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 305 | 315 | |||
Stated percentage rate | 5.2925% | ||||
Southern California Gas Company [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 3,000 | 2,500 | |||
Capital lease obligations | 0 | 1 | |||
Long-term debt and capital lease obligations | 3,009 | 2,514 | |||
Current portion of long-term debt | 0 | (9) | |||
Unamortized discount on long-term debt | (7) | (7) | |||
Unamortized debt issuance costs | (20) | (17) | |||
Long-term debt | 2,982 | 2,481 | |||
Southern California Gas Company [Member] | First Mortgage Bonds Due May 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated percentage rate | 2.60% | ||||
Southern California Gas Company [Member] | First Mortgage Bonds, Due June 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 500 | $ 500 | 0 | ||
Stated percentage rate | 2.60% | ||||
Southern California Gas Company [Member] | First Mortgage Bonds, Due April 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 250 | 250 | |||
Stated percentage rate | 5.45% | ||||
Southern California Gas Company [Member] | First Mortgage Bonds Due June 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 250 | 250 | |||
Stated percentage rate | 1.55% | ||||
Southern California Gas Company [Member] | First Mortgage Bonds, Due September 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 500 | 500 | |||
Stated percentage rate | 3.15% | ||||
Southern California Gas Company [Member] | First Mortgage Bonds Due June 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 350 | 350 | |||
Stated percentage rate | 3.20% | ||||
Southern California Gas Company [Member] | First Mortgage Bonds, Due November 2035 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 250 | 250 | |||
Stated percentage rate | 5.75% | ||||
Southern California Gas Company [Member] | First Mortgage Bonds, Due November 2040 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 300 | 300 | |||
Stated percentage rate | 5.125% | ||||
Southern California Gas Company [Member] | First Mortgage Bonds, Due September 2042 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 350 | 350 | |||
Stated percentage rate | 3.75% | ||||
Southern California Gas Company [Member] | First Mortgage Bonds, Due March 2044 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 250 | 250 | |||
Stated percentage rate | 4.45% | ||||
Southern California Gas Company [Member] | Other Long-term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt and capital lease obligations | $ 9 | 14 | |||
Southern California Gas Company [Member] | Other Long-term Debt, Due May 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 4 | 8 | |||
Stated percentage rate | 1.875% | ||||
Southern California Gas Company [Member] | Other Long-term Debt, Due January 2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 5 | 5 | |||
Stated percentage rate | 5.67% | ||||
Sempra Energy [Member] | |||||
Debt Instrument [Line Items] | |||||
Build to suit lease | $ 137 | 136 | |||
Sempra Energy [Member] | Other Long-term Debt, Due June 2016 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | 0 | $ 750 | |||
Stated percentage rate | 6.50% | ||||
Variable percentage rate | 4.77% | ||||
Long-term debt subject to variable rate | $ 300 | ||||
Sempra Energy [Member] | Other Long Term Debt Due April 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 600 | 600 | |||
Stated percentage rate | 2.30% | ||||
Sempra Energy [Member] | Other Long-term Debt, Due June 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 500 | 500 | |||
Stated percentage rate | 6.15% | ||||
Sempra Energy [Member] | Other Long-term Debt, Due February 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 500 | 500 | |||
Stated percentage rate | 9.80% | ||||
Sempra Energy [Member] | Other Long-term Debt, Due October 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 500 | $ 500 | 0 | ||
Stated percentage rate | 1.625% | 1.625% | |||
Sempra Energy [Member] | Other Long Term Debt Due March 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 500 | 500 | |||
Stated percentage rate | 2.40% | ||||
Sempra Energy [Member] | Other Long Term Debt, Due November 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 400 | 400 | |||
Stated percentage rate | 2.85% | ||||
Sempra Energy [Member] | Other Long-term Debt, Due October 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 500 | 500 | |||
Stated percentage rate | 2.875% | ||||
Sempra Energy [Member] | Other Long-term Debt, Due December 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 500 | 500 | |||
Stated percentage rate | 4.05% | ||||
Sempra Energy [Member] | Other Long Term Debt Due June 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 500 | 500 | |||
Stated percentage rate | 3.55% | ||||
Sempra Energy [Member] | Other Long-term Debt, Due November 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 350 | 350 | |||
Stated percentage rate | 3.75% | ||||
Sempra Energy [Member] | Other Long-Term Debt, Due October 2039 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 750 | 750 | |||
Stated percentage rate | 6.00% | ||||
Sempra Energy [Member] | Market Value Adjustment For Interest Rate Swap [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ (3) | (2) | |||
Sempra South American Utilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Capital lease obligations | 6 | 6 | |||
Sempra South American Utilities [Member] | Other Long-term Debt, Currently Through October 2030 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 185 | 170 | |||
Stated percentage rate | 4.25% | ||||
Sempra South American Utilities [Member] | Other Long-term Debt, Currently Through December 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 75 | 136 | |||
Sempra South American Utilities [Member] | Other Long-term Debt, Currently Through December 2018 [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated percentage rate | 5.05% | ||||
Sempra South American Utilities [Member] | Other Long-term Debt, Currently Through December 2018 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated percentage rate | 6.70% | ||||
Sempra South American Utilities [Member] | Other Long Term Debt, Payable Currently Through September 2029 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 346 | 292 | |||
Sempra South American Utilities [Member] | Other Long Term Debt, Payable Currently Through September 2029 [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated percentage rate | 4.75% | ||||
Sempra South American Utilities [Member] | Other Long Term Debt, Payable Currently Through September 2029 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated percentage rate | 8.75% | ||||
Sempra South American Utilities [Member] | Other Long Term Debt, Payable Currently Through May 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 7 | 8 | |||
Sempra South American Utilities [Member] | Other Long Term Debt, Payable Currently Through May 2022 [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated percentage rate | 3.77% | ||||
Sempra South American Utilities [Member] | Other Long Term Debt, Payable Currently Through May 2022 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated percentage rate | 4.61% | ||||
Sempra Mexico [Member] | Other Long-term Debt, Due February 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 63 | 75 | |||
Variable percentage rate | 2.66% | ||||
Sempra Mexico [Member] | Other Long Term Debt, Due February 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 189 | 227 | |||
Stated percentage rate | 6.30% | ||||
Effective percentage rate | 4.12% | ||||
Sempra Mexico [Member] | Other Long-term Debt, Currently Through December 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 352 | 0 | |||
Stated percentage rate | 4.63% | ||||
Sempra Mexico [Member] | Other Long Term Debt, Payable Currently Through May 2032 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 481 | 0 | |||
Effective percentage rate | 6.67% | ||||
Long-term debt subject to fixed rate | $ 254 | ||||
Sempra Mexico [Member] | Other Long Term Debt, Payable Currently Through May 2032, Variable Rate Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective percentage rate | 3.99% | ||||
Long-term debt subject to variable rate | $ 40 | ||||
Sempra Mexico [Member] | Other Long Term Debt, Payable Currently Through May 2032, Variable Rate One [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted average rate | 6.29% | ||||
Long-term debt subject to variable rate | $ 187 | ||||
Sempra Renewables [Member] | Other LongTerm Debt, Variable Rate Loan Payable Currently Through December 2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 84 | 91 | |||
Stated percentage rate | 3.668% | ||||
Variable percentage rate | 2.625% | ||||
Long-term debt subject to variable rate | $ 64 | ||||
Sempra LNG & MIdstream [Member] | First Mortgage Bonds, Due September 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 0 | 20 | |||
Stated percentage rate | 4.14% | ||||
Sempra LNG & MIdstream [Member] | First Mortgage Bonds, Due September 2031 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 0 | $ 42 | |||
Stated percentage rate | 5.00% | ||||
Sempra LNG & MIdstream [Member] | Other Long-term Debt, Currently Through October 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 20 | $ 19 | |||
Sempra LNG & MIdstream [Member] | Other Long-term Debt, Currently Through October 2026 [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated percentage rate | 2.87% | ||||
Sempra LNG & MIdstream [Member] | Other Long-term Debt, Currently Through October 2026 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated percentage rate | 3.51% | ||||
Sempra LNG & MIdstream [Member] | Other Long Term Debt, Payable Currently Through December 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 6 | 11 | |||
Stated percentage rate | 8.45% | ||||
Sempra LNG & MIdstream [Member] | Other Long-term Debt, Due December 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt | $ 0 | $ 5 | |||
Stated percentage rate | 3.10% | ||||
Other Sempra Energy [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt and capital lease obligations | 7,548 | $ 7,086 | |||
Current portion of long-term debt | (722) | (848) | |||
Unamortized discount on long-term debt | (10) | (10) | |||
Unamortized premium on long-term debt | 4 | 5 | |||
Unamortized debt issuance costs | (31) | (35) | |||
Long-term debt | $ 6,789 | $ 6,198 |
DEBT AND CREDIT FACILITIES - MA
DEBT AND CREDIT FACILITIES - MATURITIES OF LONG-TERM DEBT (5 YEAR SCHEDULE) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Schedule Of Long Term Debt Maturities [Line Items] | |
2,017 | $ 905 |
2,018 | 1,414 |
2,019 | 1,417 |
2,020 | 1,032 |
2,021 | 498 |
Thereafter | 9,805 |
Long-term Debt Maturities, Total Repayments Of Principal | 15,071 |
San Diego Gas and Electric Company [Member] | |
Schedule Of Long Term Debt Maturities [Line Items] | |
2,017 | 186 |
2,018 | 207 |
2,019 | 321 |
2,020 | 36 |
2,021 | 385 |
Thereafter | 3,519 |
Long-term Debt Maturities, Total Repayments Of Principal | 4,654 |
Southern California Gas Company [Member] | |
Schedule Of Long Term Debt Maturities [Line Items] | |
2,017 | 0 |
2,018 | 500 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 2,509 |
Long-term Debt Maturities, Total Repayments Of Principal | 3,009 |
Other Sempra Energy [Member] | |
Schedule Of Long Term Debt Maturities [Line Items] | |
2,017 | 719 |
2,018 | 707 |
2,019 | 1,096 |
2,020 | 996 |
2,021 | 113 |
Thereafter | 3,777 |
Long-term Debt Maturities, Total Repayments Of Principal | $ 7,408 |
DEBT AND CREDIT FACILITIES - UN
DEBT AND CREDIT FACILITIES - UNSECURED DEBT (Details) $ in Millions | Dec. 31, 2016USD ($) |
Unsecured Debt [Line Items] | |
Unsecured debt | $ 6,500 |
San Diego Gas and Electric Company [Member] | |
Unsecured Debt [Line Items] | |
Unsecured debt | 0 |
Southern California Gas Company [Member] | |
Unsecured Debt [Line Items] | |
Unsecured debt | $ 9 |
DEBT AND CREDIT FACILITIES - CA
DEBT AND CREDIT FACILITIES - CALLABLE LONG-TERM DEBT (Details) $ in Millions | Dec. 31, 2016USD ($) |
Schedule Of Callable Long-term Debt [Line Items] | |
Callable Long-term Debt | $ 520 |
Callable Long term Debt Subject To Make Whole Provisions | 12,844 |
Southern California Gas Company [Member] | |
Schedule Of Callable Long-term Debt [Line Items] | |
Callable Long-term Debt | 4 |
Callable Long term Debt Subject To Make Whole Provisions | 3,005 |
Other Sempra Energy [Member] | |
Schedule Of Callable Long-term Debt [Line Items] | |
Callable Long-term Debt | 104 |
Callable Long term Debt Subject To Make Whole Provisions | 6,042 |
San Diego Gas and Electric Company [Member] | |
Schedule Of Callable Long-term Debt [Line Items] | |
Callable Long-term Debt | 412 |
Callable Long term Debt Subject To Make Whole Provisions | 3,797 |
Otay Mesa Energy Center [Member] | |
Schedule Of Callable Long-term Debt [Line Items] | |
Callable Long-term Debt | $ 305 |
DEBT AND CREDIT FACILITIES - FI
DEBT AND CREDIT FACILITIES - FIRST MORTGAGE BONDS (Details) - USD ($) $ in Millions | 1 Months Ended | |||
May 31, 2016 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Parent Company [Member] | ||||
First Mortgage Bonds [Line Items] | ||||
Gross long-term debt | $ 5,734 | $ 5,984 | ||
San Diego Gas and Electric Company [Member] | ||||
First Mortgage Bonds [Line Items] | ||||
First mortgage bonds available for future issuance | 4,500 | |||
Gross long-term debt | 4,349 | 3,989 | ||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds Due May 2026 [Member] | ||||
First Mortgage Bonds [Line Items] | ||||
Gross long-term debt | $ 500 | $ 500 | 0 | |
Stated percentage rate | 2.50% | 2.50% | ||
San Diego Gas and Electric Company [Member] | Industrial Development Bonds Due 2027 [Member] | ||||
First Mortgage Bonds [Line Items] | ||||
Stated percentage rate | 5.00% | |||
Repayments of debt | $ 105 | |||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due June 2026 [Member] | ||||
First Mortgage Bonds [Line Items] | ||||
Gross long-term debt | $ 250 | 250 | ||
Stated percentage rate | 6.00% | |||
Southern California Gas Company [Member] | ||||
First Mortgage Bonds [Line Items] | ||||
First mortgage bonds available for future issuance | $ 700 | |||
Gross long-term debt | 3,000 | 2,500 | ||
Southern California Gas Company [Member] | First Mortgage Bonds Due May 2026 [Member] | ||||
First Mortgage Bonds [Line Items] | ||||
Stated percentage rate | 2.60% | |||
Southern California Gas Company [Member] | First Mortgage Bonds, Due June 2026 [Member] | ||||
First Mortgage Bonds [Line Items] | ||||
Gross long-term debt | $ 500 | $ 500 | $ 0 | |
Stated percentage rate | 2.60% |
DEBT AND CREDIT FACILITIES - OT
DEBT AND CREDIT FACILITIES - OTHER LONG-TERM DEBT (Details) - USD ($) $ in Millions | 1 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jan. 31, 2017 | Dec. 14, 2016 | Oct. 31, 2016 | Sep. 26, 2016 | Sep. 12, 2016 | Jul. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disposal Group Disposed of by Sale [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Cash | $ 2 | $ 10 | ||||||||
Sempra South American Utilities [Member] | Corporate Bonds Due in 2025 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated percentage rate | 6.50% | |||||||||
Sempra Mexico [Member] | GdC [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt acquired | $ 315 | |||||||||
Current portion of debt acquired | $ 49 | |||||||||
Sempra Mexico [Member] | Ventika [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt acquired | $ 478 | |||||||||
Current portion of debt acquired | $ 7 | |||||||||
Sempra LNG & MIdstream [Member] | Disposal Group Disposed of by Sale [Member] | Energy South [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from sale | $ 318 | |||||||||
Cash | 2 | |||||||||
Debt transferred | $ 67 | |||||||||
Sempra LNG & MIdstream [Member] | Mobile Gas [Member] | Disposal Group Disposed of by Sale [Member] | Energy South [Member] | 4.14% First Mortgage Bonds [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated percentage rate | 4.14% | |||||||||
Debt transferred | $ 20 | |||||||||
Sempra LNG & MIdstream [Member] | Mobile Gas [Member] | Disposal Group Disposed of by Sale [Member] | Energy South [Member] | 5% First Mortgage Bonds [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated percentage rate | 5.00% | |||||||||
Debt transferred | $ 42 | |||||||||
Sempra LNG & MIdstream [Member] | Willmut Gas [Member] | Disposal Group Disposed of by Sale [Member] | Energy South [Member] | 3.1% Notes Payable [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated percentage rate | 3.10% | |||||||||
Debt transferred | $ 5 | |||||||||
Sempra Energy [Member] | Other Long-term Debt, Due October 2019 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Gross long-term debt | $ 500 | $ 500 | $ 0 | |||||||
Stated percentage rate | 1.625% | 1.625% | ||||||||
Luz Del Sur [Member] | Sempra South American Utilities [Member] | Corporate Bonds Due in 2025 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Gross long-term debt | $ 50 | |||||||||
IEnova [Member] | Sempra Mexico [Member] | GdC [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Acquired percentage interest | 50.00% | 50.00% | ||||||||
Debt acquired | $ 364 | |||||||||
Current portion of debt acquired | $ 49 | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Ventika [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Gross long-term debt | $ 481 | |||||||||
Effective percentage rate | 6.30% | |||||||||
Acquired percentage interest | 100.00% | |||||||||
Debt acquired | $ 485 | |||||||||
Current portion of debt acquired | 7 | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Ventika [Member] | Year 2024 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt acquired | 113 | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Ventika [Member] | Matures in March 2032 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt acquired | 372 | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Ventika [Member] | Other Long Term Debt, Payable Currently Through May 2032 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt subject to fixed rate | $ 254 | |||||||||
Stated percentage rate | 3.64% | |||||||||
Effective percentage rate | 6.67% | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Ventika [Member] | Other Long Term Debt, Payable Currently Through May 2032 [Member] | Credit Spread [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable percentage rate | 3.03% | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Ventika [Member] | Other Long Term Debt, Variable Rate, Payable Through May 2032, Subject to Hedging [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt subject to variable rate | $ 187 | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Ventika [Member] | Other Long Term Debt, Variable Rate, Payable Through May 2032, Not Subject to Hedging [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt subject to variable rate | $ 40 | |||||||||
Variable percentage rate | 3.03% | |||||||||
Effective percentage rate | 3.99% | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Ventika [Member] | Other Long Term Debt, Variable Rate, Payable Through May 2032 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt subject to variable rate | $ 227 | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Minimum [Member] | GdC [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable percentage rate | 2.00% | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Minimum [Member] | Ventika [Member] | Other Long Term Debt, Payable Currently Through May 2032 [Member] | Credit Spread [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable percentage rate | 3.03% | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Maximum [Member] | GdC [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable percentage rate | 2.75% | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Maximum [Member] | Ventika [Member] | Other Long Term Debt, Payable Currently Through May 2032 [Member] | Credit Spread [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable percentage rate | 3.93% | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Interest Rate Swap [Member] | GdC [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Hedging rate | 2.63% | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Interest Rate Swap [Member] | Ventika [Member] | Other Long Term Debt, Variable Rate, Payable Through May 2032, Subject to Hedging [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Hedging rate | 3.26% | |||||||||
Effective percentage rate | 6.29% | |||||||||
IEnova [Member] | Sempra Mexico [Member] | Interest Rate Swap [Member] | Ventika [Member] | Other Long Term Debt, Variable Rate, Payable Through May 2032, Subject to Hedging [Member] | Credit Spread [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable percentage rate | 3.03% | |||||||||
Sempra Mexico [Member] | Other Long Term Debt, Payable Currently Through May 2032 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt subject to fixed rate | $ 254 | |||||||||
Gross long-term debt | $ 481 | $ 0 | ||||||||
Effective percentage rate | 6.67% | |||||||||
Subsequent Event [Member] | Sempra South American Utilities [Member] | Corporate Bonds Due in 2023 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated percentage rate | 6.375% | |||||||||
Subsequent Event [Member] | Luz Del Sur [Member] | Sempra South American Utilities [Member] | Corporate Bonds Due in 2023 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Gross long-term debt | $ 50 |
INCOME TAXES - RECONCILIATION T
INCOME TAXES - RECONCILIATION TO EFFECTIVE TAX RATE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Utility depreciation | 4.00% | 5.00% | 5.00% |
U.S. tax on repatriation of foreign earnings | (1.00%) | 1.00% | 2.00% |
State income taxes, net of federal income tax benefit | 1.00% | 1.00% | 0.00% |
Utility repairs expenditures | (4.00%) | (5.00%) | (5.00%) |
Tax credits | (3.00%) | (4.00%) | (4.00%) |
Self-developed software expenditures | (3.00%) | (3.00%) | (3.00%) |
Resolution of prior years’ income tax items | 0.00% | (3.00%) | (1.00%) |
Non-U.S. earnings taxed at lower statutory income tax rates | (3.00%) | (2.00%) | (2.00%) |
Allowance for equity funds used during construction | (2.00%) | (2.00%) | (2.00%) |
Foreign exchange and inflation effects | (2.00%) | (2.00%) | (2.00%) |
Share-based compensation | (2.00%) | 0.00% | 0.00% |
International tax reform | 1.00% | 0.00% | (1.00%) |
Other, net | 0.00% | (1.00%) | (2.00%) |
Effective income tax rate | 21.00% | 20.00% | 20.00% |
Reversal of previous income tax expense | $ 20 | ||
Distributions from non-U.S. subsidiaries | $ 288 | ||
Distributions from non-U.S. subsidiaries previously taxed | 100 | ||
Income Tax Expense Louisiana valuation allowance release | 25 | ||
SONGS tax regulatory asset write-off | 17 | ||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 773 | $ 1,189 | 1,014 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 1,057 | 515 | 510 |
Income before income taxes | $ 1,830 | $ 1,704 | $ 1,524 |
San Diego Gas and Electric Company [Member] | |||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Utility depreciation | 5.00% | 4.00% | 4.00% |
SONGS tax regulatory asset write-off | 0.00% | 0.00% | 2.00% |
State income taxes, net of federal income tax benefit | 5.00% | 5.00% | 5.00% |
Utility repairs expenditures | (4.00%) | (4.00%) | (4.00%) |
Self-developed software expenditures | (3.00%) | (3.00%) | (3.00%) |
Resolution of prior years’ income tax items | (1.00%) | (2.00%) | (2.00%) |
Allowance for equity funds used during construction | (2.00%) | (2.00%) | (2.00%) |
Share-based compensation | (1.00%) | 0.00% | 0.00% |
Variable interest entity | 0.00% | (1.00%) | (1.00%) |
Other, net | (1.00%) | 0.00% | 0.00% |
Effective income tax rate | 33.00% | 32.00% | 34.00% |
Income before income taxes | $ 845 | $ 890 | $ 797 |
Southern California Gas Company [Member] | |||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Utility depreciation | 9.00% | 8.00% | 8.00% |
State income taxes, net of federal income tax benefit | 2.00% | 4.00% | 4.00% |
Utility repairs expenditures | (9.00%) | (10.00%) | (9.00%) |
Self-developed software expenditures | (6.00%) | (6.00%) | (5.00%) |
Resolution of prior years’ income tax items | 2.00% | (3.00%) | (2.00%) |
Allowance for equity funds used during construction | (2.00%) | (2.00%) | (2.00%) |
Share-based compensation | (1.00%) | 0.00% | 0.00% |
Other, net | (1.00%) | (1.00%) | 0.00% |
Effective income tax rate | 29.00% | 25.00% | 29.00% |
Income before income taxes | $ 493 | $ 558 | $ 472 |
INCOME TAXES - COMPONENTS OF IN
INCOME TAXES - COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U.S. federal | $ 0 | $ 3 | $ (10) |
U.S. state | 1 | (24) | (7) |
Non-U.S. | 171 | 123 | 171 |
Total | 172 | 102 | 154 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U.S. federal | 78 | 242 | 237 |
U.S. state | 9 | 34 | 4 |
Non-U.S. | 135 | (32) | (91) |
Total | 222 | 244 | 150 |
Deferred investment tax credits | (5) | (5) | (4) |
Total income tax expense | 389 | 341 | 300 |
Parent Company [Member] | |||
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Total income tax expense | (181) | (150) | (133) |
San Diego Gas and Electric Company [Member] | |||
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U.S. federal | 0 | 12 | (5) |
U.S. state | 22 | 77 | 52 |
Total | 22 | 89 | 47 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U.S. federal | 223 | 233 | 220 |
U.S. state | 38 | (35) | 5 |
Total | 261 | 198 | 225 |
Deferred investment tax credits | (3) | (3) | (2) |
Total income tax expense | 280 | 284 | 270 |
Southern California Gas Company [Member] | |||
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U.S. federal | 0 | (1) | 2 |
U.S. state | 40 | 12 | 7 |
Total | 40 | 11 | 9 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U.S. federal | 123 | 122 | 117 |
U.S. state | (18) | 7 | 15 |
Total | 105 | 129 | 132 |
Deferred investment tax credits | (2) | (2) | (2) |
Total income tax expense | $ 143 | $ 138 | $ 139 |
INCOME TAXES - DEFERRED INCOME
INCOME TAXES - DEFERRED INCOME TAXES (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Differences in financial and tax bases of fixed assets, investments and other assets | $ 6,111 | $ 5,283 |
Regulatory balancing accounts | 783 | 745 |
Property taxes | 63 | 61 |
Other deferred income tax liabilities | 143 | 100 |
Total deferred income tax liabilities | 7,100 | 6,189 |
Deferred Tax Assets, Gross [Abstract] | ||
Tax credits | 431 | 381 |
Net operating losses | 2,304 | 1,856 |
Compensation-related items | 252 | 252 |
Postretirement benefits | 434 | 446 |
Other deferred income tax assets | 87 | 179 |
Accrued expenses not yet deductible | 112 | 72 |
Deferred income tax assets before valuation allowances | 3,620 | 3,186 |
Less: valuation allowances | 31 | 34 |
Total deferred income tax assets | 3,589 | 3,152 |
Net deferred income tax liability | 3,511 | 3,037 |
Deferred income tax asset, noncurrent | 234 | 120 |
Deferred income tax liabilities, noncurrent | 3,745 | 3,157 |
Parent Company [Member] | ||
Deferred Tax Assets, Gross [Abstract] | ||
Deferred income tax asset, noncurrent | 2,570 | 2,188 |
San Diego Gas and Electric Company [Member] | ||
Deferred Tax Liabilities, Gross [Abstract] | ||
Differences in financial and tax bases of fixed assets, investments and other assets | 2,549 | 2,392 |
Regulatory balancing accounts | 379 | 234 |
Property taxes | 42 | 42 |
Other deferred income tax liabilities | 10 | 5 |
Total deferred income tax liabilities | 2,980 | 2,673 |
Deferred Tax Assets, Gross [Abstract] | ||
Tax credits | 27 | 9 |
Net operating losses | 0 | 0 |
Compensation-related items | 8 | 11 |
Postretirement benefits | 98 | 90 |
Other deferred income tax assets | 11 | 9 |
State income taxes | 0 | 46 |
Accrued expenses not yet deductible | 7 | 36 |
Total deferred income tax assets | 151 | 201 |
Net deferred income tax liability | 2,829 | 2,472 |
Deferred income tax liabilities, noncurrent | 2,829 | 2,472 |
Southern California Gas Company [Member] | ||
Deferred Tax Liabilities, Gross [Abstract] | ||
Differences in financial and tax bases of fixed assets, investments and other assets | 1,699 | 1,473 |
Regulatory balancing accounts | 411 | 515 |
Property taxes | 21 | 20 |
Other deferred income tax liabilities | 4 | 5 |
Total deferred income tax liabilities | 2,135 | 2,013 |
Deferred Tax Assets, Gross [Abstract] | ||
Tax credits | 17 | 16 |
Net operating losses | 83 | 110 |
Compensation-related items | 32 | 42 |
Postretirement benefits | 244 | 268 |
Other deferred income tax assets | 11 | 12 |
State income taxes | 19 | 13 |
Accrued expenses not yet deductible | 20 | 20 |
Total deferred income tax assets | 426 | 481 |
Net deferred income tax liability | 1,709 | 1,532 |
Deferred income tax liabilities, noncurrent | $ 1,709 | $ 1,532 |
INCOME TAXES - NET OPERATING LO
INCOME TAXES - NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowances | $ 31 | $ 34 |
U.S. Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
NOLs | 5,514 | |
Tax credits | 62 | |
U.S. Federal [Member] | General general business tax credits [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credits | 329 | |
U.S. state [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
NOLs | 2,836 | |
U.S. state [Member] | General general business tax credits [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credits | 44 | |
U.S. state [Member] | Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowances | 30 | 28 |
Non-U.S. [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
NOLs and tax credits | 843 | |
Non-U.S. [Member] | Deferred Tax Assets, Operating Loss Carryforwards [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowances | 1 | $ 6 |
San Diego Gas and Electric Company [Member] | U.S. Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
NOLs | 39 | |
San Diego Gas and Electric Company [Member] | U.S. Federal [Member] | General general business tax credits [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credits | 19 | |
Southern California Gas Company [Member] | U.S. Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
NOLs | 289 | |
Southern California Gas Company [Member] | U.S. Federal [Member] | General general business tax credits [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credits | $ 12 |
INCOME TAXES - UNRECOGNIZED TAX
INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||||
Unrecognized deferred tax liability related to basis difference and consisting of cumulative undistributed earnings | $ 4,600 | |||||
Income Tax Contingency [Line Items] | ||||||
Unrecognized tax benefits | $ 87 | $ 117 | $ 90 | 90 | $ 87 | $ 117 |
Of the total, amounts related to tax positions that, if recognized, in future years, would decrease the effective tax rate | (87) | (83) | (114) | |||
Of the total, amounts related to tax positions that, if recognized, in future years, would increase the effective tax rate | 36 | 32 | 21 | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Beginning balance | 87 | 117 | 90 | |||
Increase in prior period tax positions | 2 | 10 | 37 | |||
Decrease in prior period tax positions | (2) | 0 | 0 | |||
Increase in current period tax positions | 6 | 8 | 5 | |||
Settlements with taxing authorities | (3) | (48) | (15) | |||
Ending balance | 90 | 87 | 117 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | ||||||
Interest (income) expense | 0 | (2) | (4) | |||
Penalties | 0 | 0 | (3) | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ||||||
Accrued interest | 1 | 1 | ||||
Accrued penalties | 0 | 0 | ||||
San Diego Gas and Electric Company [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Unrecognized tax benefits | 20 | 14 | 17 | 22 | 20 | 14 |
Of the total, amounts related to tax positions that, if recognized, in future years, would decrease the effective tax rate | (19) | (16) | (11) | |||
Of the total, amounts related to tax positions that, if recognized, in future years, would increase the effective tax rate | 13 | 11 | 6 | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Beginning balance | 20 | 14 | 17 | |||
Increase in prior period tax positions | 0 | 5 | 2 | |||
Increase in current period tax positions | 2 | 2 | 0 | |||
Settlements with taxing authorities | 0 | (1) | (5) | |||
Ending balance | 22 | 20 | 14 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | ||||||
Interest (income) expense | 0 | 0 | (1) | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ||||||
Accrued interest | 0 | 0 | ||||
Southern California Gas Company [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Unrecognized tax benefits | 27 | 19 | 13 | 29 | 27 | 19 |
Of the total, amounts related to tax positions that, if recognized, in future years, would decrease the effective tax rate | (29) | (27) | (19) | |||
Of the total, amounts related to tax positions that, if recognized, in future years, would increase the effective tax rate | $ 24 | $ 21 | $ 15 | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Beginning balance | 27 | 19 | 13 | |||
Increase in prior period tax positions | 0 | 2 | 2 | |||
Decrease in prior period tax positions | (2) | 0 | 0 | |||
Increase in current period tax positions | 4 | 6 | 4 | |||
Ending balance | $ 29 | $ 27 | $ 19 |
INCOME TAXES - CHANGES IN UNREC
INCOME TAXES - CHANGES IN UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Possible change in unrecognized tax benefits in next 12 months | $ (38) | $ (34) | $ (61) |
Expiration of statutes of limitations on tax assessments [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Possible change in unrecognized tax benefits in next 12 months | (2) | (2) | 0 |
Potential resolution of audit issues with various U.S. federal, state, and local non-U.S. taxing authorities [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Possible change in unrecognized tax benefits in next 12 months | (36) | (32) | (61) |
San Diego Gas and Electric Company [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Possible change in unrecognized tax benefits in next 12 months | (11) | (9) | (9) |
San Diego Gas and Electric Company [Member] | Expiration of statutes of limitations on tax assessments [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Possible change in unrecognized tax benefits in next 12 months | (1) | (1) | 0 |
San Diego Gas and Electric Company [Member] | Potential resolution of audit issues with various U.S. federal, state, and local non-U.S. taxing authorities [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Possible change in unrecognized tax benefits in next 12 months | (10) | (8) | (9) |
Southern California Gas Company [Member] | Potential resolution of audit issues with various U.S. federal, state, and local non-U.S. taxing authorities [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Possible change in unrecognized tax benefits in next 12 months | $ (25) | $ (22) | $ (15) |
EMPLOYEE BENEFIT PLANS - NARRAT
EMPLOYEE BENEFIT PLANS - NARRATIVE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Dedicated assets in support of certain benefit plans | $ 430 | $ 464 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Change in plan liability due to divestiture | 61 | 0 | |
Change in plan assets due to divestiture | 44 | 0 | |
Increase in liability due to special termination benefits | 0 | 0 | |
Settlements | 75 | 10 | |
Settlement and curtailment charges | 16 | 4 | $ 31 |
Defined Benefit Plan, Plan Amendment [Abstract] | |||
Increase in liability due to plan amendment | 5 | ||
Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Change in plan liability due to divestiture | 6 | 0 | |
Change in plan assets due to divestiture | 4 | 0 | |
Increase in liability due to special termination benefits | 26 | 0 | |
Settlements | 1 | 0 | |
Settlement and curtailment charges | 0 | 0 | (1) |
Defined Benefit Plan, Plan Amendment [Abstract] | |||
Increase in liability due to plan amendment | (9) | ||
San Diego Gas and Electric Company [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase in liability due to special termination benefits | 0 | 0 | |
Settlements | 75 | 0 | |
Settlement charge | 16 | 0 | 19 |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase in liability due to special termination benefits | 14 | 0 | |
Settlements | 0 | 0 | |
Settlement charge | 0 | 0 | 0 |
Defined Benefit Plan, Plan Amendment [Abstract] | |||
Increase in liability due to plan amendment | 0 | ||
Southern California Gas Company [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase in liability due to special termination benefits | 0 | 0 | |
Settlement charge | 0 | 0 | 4 |
Defined Benefit Plan, Plan Amendment [Abstract] | |||
Increase in liability due to plan amendment | 3 | ||
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase in liability due to special termination benefits | 11 | 0 | |
Settlement charge | $ 0 | 0 | $ 0 |
Defined Benefit Plan, Plan Amendment [Abstract] | |||
Increase in liability due to plan amendment | $ (9) |
EMPLOYEE BENEFIT PLANS - EMPLOY
EMPLOYEE BENEFIT PLANS - EMPLOYEE BENEFIT PLANS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | |||
Noncurrent liabilities | $ (1,208,000,000) | $ (1,152,000,000) | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |||
Future amortization of gain (loss) in 2017 | 10,000,000 | ||
Future amortization of prior service cost (credit) in 2017 | $ 1,000,000 | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Expected return on plan assets | 7.00% | ||
Pension Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | $ 3,649,000,000 | 3,839,000,000 | |
Service cost | 107,000,000 | 114,000,000 | $ 101,000,000 |
Interest cost | 160,000,000 | 154,000,000 | 161,000,000 |
Contributions from plan participants | 0 | 0 | |
Actuarial loss (gain) | 116,000,000 | (180,000,000) | |
Benefit payments | (217,000,000) | (273,000,000) | |
Divestiture of EnergySouth | (61,000,000) | 0 | |
Plan amendments | 0 | 5,000,000 | |
Special termination benefits | 0 | 0 | |
Settlements | (75,000,000) | (10,000,000) | |
Ending balance | 3,679,000,000 | 3,649,000,000 | 3,839,000,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 2,484,000,000 | 2,807,000,000 | |
Actual return on plan assets | 207,000,000 | (73,000,000) | |
Employer contributions | 104,000,000 | 33,000,000 | |
Contributions from plan participants | 0 | 0 | |
Benefit payments | (217,000,000) | (273,000,000) | |
Divestiture of EnergySouth | (44,000,000) | 0 | |
Settlements | (75,000,000) | (10,000,000) | |
Ending balance | 2,459,000,000 | 2,484,000,000 | 2,807,000,000 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||
Funded status | (1,220,000,000) | (1,165,000,000) | |
Net recorded liability | (1,220,000,000) | (1,165,000,000) | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (56,000,000) | (43,000,000) | |
Noncurrent liabilities | (1,164,000,000) | (1,122,000,000) | |
Net recorded (liability) asset | (1,220,000,000) | (1,165,000,000) | |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Abstract] | |||
Net actuarial (loss) gain | (95,000,000) | (84,000,000) | |
Prior service cost | (4,000,000) | (5,000,000) | |
Total | (99,000,000) | (89,000,000) | |
Accumulated benefit obligation | 3,465,000,000 | 3,397,000,000 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | |||
Projected benefit obligation | 3,431,000,000 | 3,410,000,000 | |
Accumulated benefit obligation | 3,227,000,000 | 3,183,000,000 | |
Fair value of plan assets | 2,459,000,000 | 2,484,000,000 | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 107,000,000 | 114,000,000 | 101,000,000 |
Interest cost | 160,000,000 | 154,000,000 | 161,000,000 |
Expected return on assets | (166,000,000) | (173,000,000) | (171,000,000) |
Amortization of Prior service cost (credit) | 11,000,000 | 11,000,000 | 11,000,000 |
Amortization of actuarial loss (gain) | 30,000,000 | 38,000,000 | 18,000,000 |
Settlement and curtailment charges | 16,000,000 | 4,000,000 | 31,000,000 |
Special termination benefits | 0 | 0 | 0 |
Regulatory adjustment | (57,000,000) | (110,000,000) | (31,000,000) |
Defined Benefit Plan, Net Periodic Benefit Cost, Total | 101,000,000 | 38,000,000 | 120,000,000 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, [Abstract] | |||
Net loss (gain) | 26,000,000 | 17,000,000 | 38,000,000 |
Prior service (credit) cost | (1,000,000) | 4,000,000 | 4,000,000 |
Amortization of actuarial loss | (10,000,000) | (14,000,000) | (23,000,000) |
Total recognized in other comprehensive income (loss) | 15,000,000 | 7,000,000 | 19,000,000 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 116,000,000 | $ 45,000,000 | $ 139,000,000 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.08% | 4.46% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.46% | 4.09% | 4.85% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
Expected employer contributions | $ 180,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
2,017 | 347,000,000 | ||
2,018 | 317,000,000 | ||
2,019 | 304,000,000 | ||
2,020 | 291,000,000 | ||
20,121 | 295,000,000 | ||
2022-2026 | $ 1,254,000,000 | ||
Pension Plan [Member] | Maximum [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Rate of compensation increase | 10.00% | 10.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Rate of compensation increase | 10.00% | 10.00% | 10.00% |
Pension Plan [Member] | Minimum [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Rate of compensation increase | 2.00% | 2.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Rate of compensation increase | 2.00% | 2.00% | 3.50% |
Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | $ 963,000,000 | $ 1,115,000,000 | |
Service cost | 20,000,000 | 26,000,000 | $ 24,000,000 |
Interest cost | 42,000,000 | 44,000,000 | 49,000,000 |
Contributions from plan participants | 20,000,000 | 19,000,000 | |
Actuarial loss (gain) | (81,000,000) | (172,000,000) | |
Benefit payments | (61,000,000) | (60,000,000) | |
Divestiture of EnergySouth | (6,000,000) | 0 | |
Plan amendments | 0 | (9,000,000) | |
Special termination benefits | 26,000,000 | 0 | |
Settlements | (1,000,000) | 0 | |
Ending balance | 922,000,000 | 963,000,000 | 1,115,000,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 1,003,000,000 | 1,054,000,000 | |
Actual return on plan assets | 94,000,000 | (21,000,000) | |
Employer contributions | 6,000,000 | 11,000,000 | |
Contributions from plan participants | 20,000,000 | 19,000,000 | |
Benefit payments | (61,000,000) | (60,000,000) | |
Divestiture of EnergySouth | (4,000,000) | 0 | |
Settlements | (1,000,000) | 0 | |
Ending balance | 1,057,000,000 | 1,003,000,000 | 1,054,000,000 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||
Funded status | 135,000,000 | 40,000,000 | |
Net recorded liability | 135,000,000 | 40,000,000 | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | |||
Noncurrent assets | 179,000,000 | 70,000,000 | |
Current liabilities | 0 | 0 | |
Noncurrent liabilities | (44,000,000) | (30,000,000) | |
Net recorded (liability) asset | 135,000,000 | 40,000,000 | |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Abstract] | |||
Net actuarial (loss) gain | 3,000,000 | 2,000,000 | |
Prior service cost | 0 | 0 | |
Total | 3,000,000 | 2,000,000 | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 20,000,000 | 26,000,000 | 24,000,000 |
Interest cost | 42,000,000 | 44,000,000 | 49,000,000 |
Expected return on assets | (69,000,000) | (68,000,000) | (63,000,000) |
Amortization of Prior service cost (credit) | 0 | (4,000,000) | (5,000,000) |
Amortization of actuarial loss (gain) | (1,000,000) | 0 | 0 |
Settlement and curtailment charges | 0 | 0 | (1,000,000) |
Special termination benefits | 26,000,000 | 0 | 5,000,000 |
Regulatory adjustment | (11,000,000) | 12,000,000 | 6,000,000 |
Defined Benefit Plan, Net Periodic Benefit Cost, Total | 7,000,000 | 10,000,000 | 15,000,000 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, [Abstract] | |||
Net loss (gain) | (2,000,000) | (4,000,000) | 1,000,000 |
Prior service (credit) cost | 0 | 0 | 0 |
Amortization of actuarial loss | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | (2,000,000) | (4,000,000) | 1,000,000 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 5,000,000 | $ 6,000,000 | $ 16,000,000 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.19% | 4.49% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.49% | 4.15% | 4.95% |
Expected return on plan assets | 6.98% | 6.98% | 6.97% |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
Effect of 1% increase on total of service and interest cost components of net periodic postretirement health care benefit cost | $ 5,000,000 | ||
Effect of 1% decrease on total of service and interest cost components of net periodic postretirement health care benefit cost | (4,000,000) | ||
Effect of 1% increase on the health care component of the accumulated other postretirement benefit obligations | 62,000,000 | ||
Effect of 1% decrease on the health care component of the accumulated other postretirement benefit obligations | (52,000,000) | ||
Expected employer contributions | 8,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
2,017 | 47,000,000 | ||
2,018 | 51,000,000 | ||
2,019 | 53,000,000 | ||
2,020 | 56,000,000 | ||
20,121 | 55,000,000 | ||
2022-2026 | $ 277,000,000 | ||
Other Postretirement Benefit Plan [Member] | Pre-65Retiree [Member] | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rate assumed for next year | 8.00% | 8.10% | 7.75% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend) | 5.00% | 5.00% | 5.00% |
Year the rate reaches the ultimate trend | 2,022 | 2,022 | 2,020 |
Other Postretirement Benefit Plan [Member] | Retiree Aged 65 or Older [Member] | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rate assumed for next year | 5.50% | 5.50% | 5.25% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend) | 4.50% | 4.50% | 4.50% |
Year the rate reaches the ultimate trend | 2,022 | 2,022 | 2,020 |
Other Postretirement Benefit Plan [Member] | Maximum [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Rate of compensation increase | 10.00% | 10.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Rate of compensation increase | 10.00% | 10.00% | 10.00% |
Other Postretirement Benefit Plan [Member] | Minimum [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Rate of compensation increase | 2.00% | 2.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Rate of compensation increase | 2.00% | 2.00% | 3.50% |
San Diego Gas and Electric Company [Member] | |||
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | |||
Noncurrent liabilities | $ (232,000,000) | $ (212,000,000) | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |||
Future amortization of gain (loss) in 2017 | 1,000,000 | ||
Future amortization of prior service cost (credit) in 2017 | 0 | ||
San Diego Gas and Electric Company [Member] | Pension Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | 965,000,000 | 1,011,000,000 | |
Service cost | 29,000,000 | 29,000,000 | $ 30,000,000 |
Interest cost | 41,000,000 | 39,000,000 | 43,000,000 |
Contributions from plan participants | 0 | 0 | |
Actuarial loss (gain) | 7,000,000 | (52,000,000) | |
Benefit payments | (25,000,000) | (56,000,000) | |
Special termination benefits | 0 | 0 | |
Settlements | (75,000,000) | 0 | |
Transfer of liability to other plans | (7,000,000) | (6,000,000) | |
Ending balance | 935,000,000 | 965,000,000 | 1,011,000,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 752,000,000 | 828,000,000 | |
Actual return on plan assets | 59,000,000 | (24,000,000) | |
Employer contributions | 3,000,000 | 2,000,000 | |
Contributions from plan participants | 0 | 0 | |
Benefit payments | (25,000,000) | (56,000,000) | |
Transfer of assets from other plans | 0 | 2,000,000 | |
Settlements | (75,000,000) | 0 | |
Ending balance | 714,000,000 | 752,000,000 | 828,000,000 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||
Funded status | (221,000,000) | (213,000,000) | |
Net recorded liability | (221,000,000) | (213,000,000) | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | |||
Current liabilities | (10,000,000) | (5,000,000) | |
Noncurrent liabilities | (211,000,000) | (208,000,000) | |
Net recorded (liability) asset | (221,000,000) | (213,000,000) | |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Abstract] | |||
Net actuarial (loss) gain | (8,000,000) | (8,000,000) | |
Prior service cost | 0 | 0 | |
Total | (8,000,000) | (8,000,000) | |
Accumulated benefit obligation | 904,000,000 | 939,000,000 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | |||
Projected benefit obligation | 902,000,000 | 927,000,000 | |
Accumulated benefit obligation | 874,000,000 | 906,000,000 | |
Fair value of plan assets | 714,000,000 | 752,000,000 | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 29,000,000 | 29,000,000 | 30,000,000 |
Interest cost | 41,000,000 | 39,000,000 | 43,000,000 |
Expected return on assets | (49,000,000) | (54,000,000) | (55,000,000) |
Amortization of Prior service cost (credit) | 1,000,000 | 8,000,000 | 2,000,000 |
Amortization of actuarial loss (gain) | 10,000,000 | 2,000,000 | 4,000,000 |
Settlement charge | 16,000,000 | 0 | 19,000,000 |
Special termination benefits | 0 | 0 | 0 |
Regulatory adjustment | (45,000,000) | (20,000,000) | 12,000,000 |
Defined Benefit Plan, Net Periodic Benefit Cost, Total | 3,000,000 | 4,000,000 | 55,000,000 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, [Abstract] | |||
Net loss (gain) | 1,000,000 | (6,000,000) | 8,000,000 |
Amortization of actuarial loss | (1,000,000) | (1,000,000) | (3,000,000) |
Total recognized in other comprehensive income (loss) | 0 | (7,000,000) | 5,000,000 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 3,000,000 | $ (3,000,000) | $ 60,000,000 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.08% | 4.35% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.35% | 4.00% | 4.69% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
Expected employer contributions | $ 38,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
2,017 | 94,000,000 | ||
2,018 | 84,000,000 | ||
2,019 | 81,000,000 | ||
2,020 | 77,000,000 | ||
20,121 | 73,000,000 | ||
2022-2026 | $ 322,000,000 | ||
San Diego Gas and Electric Company [Member] | Pension Plan [Member] | Maximum [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Rate of compensation increase | 10.00% | 10.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Rate of compensation increase | 10.00% | 10.00% | 10.00% |
San Diego Gas and Electric Company [Member] | Pension Plan [Member] | Minimum [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Rate of compensation increase | 2.00% | 2.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Rate of compensation increase | 2.00% | 2.00% | 3.50% |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | $ 165,000,000 | $ 200,000,000 | |
Service cost | 5,000,000 | 7,000,000 | $ 7,000,000 |
Interest cost | 7,000,000 | 8,000,000 | 9,000,000 |
Contributions from plan participants | 7,000,000 | 7,000,000 | |
Actuarial loss (gain) | 6,000,000 | (43,000,000) | |
Benefit payments | (14,000,000) | (14,000,000) | |
Special termination benefits | 14,000,000 | 0 | |
Settlements | 0 | 0 | |
Transfer of liability to other plans | 0 | 0 | |
Ending balance | 190,000,000 | 165,000,000 | 200,000,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 161,000,000 | 164,000,000 | |
Actual return on plan assets | 13,000,000 | (3,000,000) | |
Employer contributions | 2,000,000 | 7,000,000 | |
Contributions from plan participants | 7,000,000 | 7,000,000 | |
Benefit payments | (14,000,000) | (14,000,000) | |
Transfer of assets from other plans | 0 | 0 | |
Settlements | 0 | 0 | |
Ending balance | 169,000,000 | 161,000,000 | 164,000,000 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||
Funded status | (21,000,000) | (4,000,000) | |
Net recorded liability | (21,000,000) | (4,000,000) | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | |||
Current liabilities | 0 | 0 | |
Noncurrent liabilities | (21,000,000) | (4,000,000) | |
Net recorded (liability) asset | (21,000,000) | (4,000,000) | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 5,000,000 | 7,000,000 | 7,000,000 |
Interest cost | 7,000,000 | 8,000,000 | 9,000,000 |
Expected return on assets | (12,000,000) | (11,000,000) | (10,000,000) |
Amortization of Prior service cost (credit) | 3,000,000 | 3,000,000 | 2,000,000 |
Amortization of actuarial loss (gain) | (1,000,000) | 0 | 0 |
Settlement charge | 0 | 0 | 0 |
Special termination benefits | 14,000,000 | 0 | 5,000,000 |
Regulatory adjustment | (14,000,000) | 0 | 1,000,000 |
Defined Benefit Plan, Net Periodic Benefit Cost, Total | 2,000,000 | 7,000,000 | 14,000,000 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, [Abstract] | |||
Net loss (gain) | 0 | 0 | 0 |
Amortization of actuarial loss | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | 0 | 0 | 0 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 2,000,000 | $ 7,000,000 | $ 14,000,000 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.15% | 4.50% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.50% | 4.15% | 5.00% |
Expected return on plan assets | 6.90% | 6.91% | 6.88% |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
Effect of 1% increase on total of service and interest cost components of net periodic postretirement health care benefit cost | $ 1,000,000 | ||
Effect of 1% decrease on total of service and interest cost components of net periodic postretirement health care benefit cost | (1,000,000) | ||
Effect of 1% increase on the health care component of the accumulated other postretirement benefit obligations | 6,000,000 | ||
Effect of 1% decrease on the health care component of the accumulated other postretirement benefit obligations | (5,000,000) | ||
Expected employer contributions | 5,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
2,017 | 10,000,000 | ||
2,018 | 11,000,000 | ||
2,019 | 11,000,000 | ||
2,020 | 12,000,000 | ||
20,121 | 12,000,000 | ||
2022-2026 | $ 61,000,000 | ||
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Maximum [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Rate of compensation increase | 10.00% | 10.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Rate of compensation increase | 10.00% | 10.00% | 10.00% |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Minimum [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Rate of compensation increase | 2.00% | 2.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Rate of compensation increase | 2.00% | 2.00% | 3.50% |
Southern California Gas Company [Member] | |||
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |||
Future amortization of gain (loss) in 2017 | $ 1,000,000 | ||
Future amortization of prior service cost (credit) in 2017 | 1,000,000 | ||
Southern California Gas Company [Member] | Pension Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | 2,255,000,000 | $ 2,398,000,000 | |
Service cost | 67,000,000 | 74,000,000 | $ 60,000,000 |
Interest cost | 101,000,000 | 98,000,000 | 100,000,000 |
Contributions from plan participants | 0 | 0 | |
Actuarial loss (gain) | 77,000,000 | (131,000,000) | |
Benefit payments | (158,000,000) | (187,000,000) | |
Plan amendments | 0 | 3,000,000 | |
Special termination benefits | 0 | 0 | |
Transfer of liability to other plans | 1,000,000 | 0 | |
Ending balance | 2,343,000,000 | 2,255,000,000 | 2,398,000,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 1,537,000,000 | 1,763,000,000 | |
Actual return on plan assets | 128,000,000 | (45,000,000) | |
Employer contributions | 72,000,000 | 6,000,000 | |
Contributions from plan participants | 0 | 0 | |
Benefit payments | (158,000,000) | (187,000,000) | |
Ending balance | 1,579,000,000 | 1,537,000,000 | 1,763,000,000 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||
Funded status | (764,000,000) | (718,000,000) | |
Net recorded liability | (764,000,000) | (718,000,000) | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (2,000,000) | (2,000,000) | |
Noncurrent liabilities | (762,000,000) | (716,000,000) | |
Net recorded (liability) asset | (764,000,000) | (718,000,000) | |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Abstract] | |||
Net actuarial (loss) gain | (6,000,000) | (4,000,000) | |
Prior service cost | (3,000,000) | (1,000,000) | |
Total | (9,000,000) | (5,000,000) | |
Accumulated benefit obligation | 2,167,000,000 | 2,056,000,000 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | |||
Projected benefit obligation | 2,320,000,000 | 2,236,000,000 | |
Accumulated benefit obligation | 2,148,000,000 | 2,039,000,000 | |
Fair value of plan assets | 1,579,000,000 | 1,537,000,000 | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 67,000,000 | 74,000,000 | 60,000,000 |
Interest cost | 101,000,000 | 98,000,000 | 100,000,000 |
Expected return on assets | (103,000,000) | (106,000,000) | (104,000,000) |
Amortization of Prior service cost (credit) | 9,000,000 | 9,000,000 | 9,000,000 |
Amortization of actuarial loss (gain) | 11,000,000 | 21,000,000 | 6,000,000 |
Settlement charge | 0 | 0 | 4,000,000 |
Special termination benefits | 0 | 0 | 0 |
Regulatory adjustment | (12,000,000) | (90,000,000) | (43,000,000) |
Defined Benefit Plan, Net Periodic Benefit Cost, Total | 73,000,000 | 6,000,000 | 32,000,000 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, [Abstract] | |||
Net loss (gain) | 4,000,000 | 0 | 5,000,000 |
Prior service (credit) cost | 2,000,000 | 2,000,000 | 0 |
Amortization of actuarial loss | 0 | 0 | (5,000,000) |
Total recognized in other comprehensive income (loss) | 6,000,000 | 2,000,000 | 0 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 79,000,000 | $ 8,000,000 | $ 32,000,000 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.10% | 4.50% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.50% | 4.15% | 4.94% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
Expected employer contributions | $ 90,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
2,017 | 194,000,000 | ||
2,018 | 189,000,000 | ||
2,019 | 184,000,000 | ||
2,020 | 175,000,000 | ||
20,121 | 177,000,000 | ||
2022-2026 | $ 804,000,000 | ||
Southern California Gas Company [Member] | Pension Plan [Member] | Maximum [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Rate of compensation increase | 10.00% | 10.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Rate of compensation increase | 10.00% | 10.00% | 10.00% |
Southern California Gas Company [Member] | Pension Plan [Member] | Minimum [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Rate of compensation increase | 2.00% | 2.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Rate of compensation increase | 2.00% | 2.00% | 3.50% |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | $ 752,000,000 | $ 866,000,000 | |
Service cost | 14,000,000 | 17,000,000 | $ 16,000,000 |
Interest cost | 32,000,000 | 34,000,000 | 38,000,000 |
Contributions from plan participants | 13,000,000 | 12,000,000 | |
Actuarial loss (gain) | (86,000,000) | (125,000,000) | |
Benefit payments | (45,000,000) | (43,000,000) | |
Plan amendments | 0 | (9,000,000) | |
Special termination benefits | 11,000,000 | 0 | |
Transfer of liability to other plans | 0 | 0 | |
Ending balance | 691,000,000 | 752,000,000 | 866,000,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 822,000,000 | 870,000,000 | |
Actual return on plan assets | 79,000,000 | (18,000,000) | |
Employer contributions | 1,000,000 | 1,000,000 | |
Contributions from plan participants | 13,000,000 | 12,000,000 | |
Benefit payments | (45,000,000) | (43,000,000) | |
Ending balance | 870,000,000 | 822,000,000 | 870,000,000 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||
Funded status | 179,000,000 | 70,000,000 | |
Net recorded liability | 179,000,000 | 70,000,000 | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | |||
Noncurrent assets | 179,000,000 | 70,000,000 | |
Current liabilities | 0 | 0 | |
Noncurrent liabilities | 0 | 0 | |
Net recorded (liability) asset | 179,000,000 | 70,000,000 | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 14,000,000 | 17,000,000 | 16,000,000 |
Interest cost | 32,000,000 | 34,000,000 | 38,000,000 |
Expected return on assets | (56,000,000) | (56,000,000) | (51,000,000) |
Amortization of Prior service cost (credit) | (4,000,000) | (7,000,000) | (8,000,000) |
Amortization of actuarial loss (gain) | 0 | 0 | 0 |
Settlement charge | 0 | 0 | 0 |
Special termination benefits | 11,000,000 | 0 | 0 |
Regulatory adjustment | 3,000,000 | 12,000,000 | 5,000,000 |
Defined Benefit Plan, Net Periodic Benefit Cost, Total | 0 | 0 | 0 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, [Abstract] | |||
Net loss (gain) | 0 | 0 | 0 |
Prior service (credit) cost | 0 | 0 | 0 |
Amortization of actuarial loss | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | 0 | 0 | 0 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 0 | $ 0 | $ 0 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.20% | 4.50% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.50% | 4.15% | 4.95% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
Effect of 1% increase on total of service and interest cost components of net periodic postretirement health care benefit cost | $ 4,000,000 | ||
Effect of 1% decrease on total of service and interest cost components of net periodic postretirement health care benefit cost | (3,000,000) | ||
Effect of 1% increase on the health care component of the accumulated other postretirement benefit obligations | 55,000,000 | ||
Effect of 1% decrease on the health care component of the accumulated other postretirement benefit obligations | (46,000,000) | ||
Expected employer contributions | 1,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
2,017 | 35,000,000 | ||
2,018 | 37,000,000 | ||
2,019 | 38,000,000 | ||
2,020 | 39,000,000 | ||
20,121 | 40,000,000 | ||
2022-2026 | $ 203,000,000 | ||
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Maximum [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Rate of compensation increase | 10.00% | 10.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Rate of compensation increase | 10.00% | 10.00% | 10.00% |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Minimum [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Rate of compensation increase | 2.00% | 2.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Rate of compensation increase | 2.00% | 2.00% | 3.50% |
Mobile Gas [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rate assumed for next year | 8.10% | 7.75% | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend) | 5.00% | 5.00% | |
Year the rate reaches the ultimate trend | 2,022 | 2,020 | |
Chilquinta Energia [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rate assumed for next year | 3.00% | 3.00% | 3.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend) | 3.00% | 3.00% | 3.00% |
EMPLOYEE BENEFIT PLANS - PLAN A
EMPLOYEE BENEFIT PLANS - PLAN ASSETS (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected return on plan assets | 7.00% |
Domestic Equity [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Targeted plan asset allocations | 38.00% |
International Equity [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Targeted plan asset allocations | 26.00% |
Long Credit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Targeted plan asset allocations | 18.00% |
Ultra-long duration government securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Targeted plan asset allocations | 8.00% |
High Yield Credit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Targeted plan asset allocations | 5.00% |
Real Assets [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Targeted plan asset allocations | 5.00% |
Return Seeking Assets [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocations | 75.00% |
Risk Mitigating Assets [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocations | 25.00% |
Minimum [Member] | Return Seeking Assets [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected return on plan assets | 7.00% |
Minimum [Member] | Risk Mitigating Assets [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected return on plan assets | 3.00% |
Maximum [Member] | Return Seeking Assets [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected return on plan assets | 9.00% |
Maximum [Member] | Risk Mitigating Assets [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected return on plan assets | 5.00% |
EMPLOYEE BENEFIT PLANS - FAIR V
EMPLOYEE BENEFIT PLANS - FAIR VALUE OF PLAN ASSETS (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 2,459 | $ 2,484 | $ 2,807 |
Cash and cash equivalents excluded | 14 | 14 | |
Accounts payable excluded | 24 | 25 | |
Pension Plan [Member] | Equity Securities, Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 884 | 900 | |
Pension Plan [Member] | Equity Securities, International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 522 | 544 | |
Pension Plan [Member] | Equity Securities, Registered Investment Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 127 | 124 | |
Pension Plan [Member] | domestic government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 246 | 155 | |
Pension Plan [Member] | International government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 10 | |
Pension Plan [Member] | Domestic corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 346 | 338 | |
Pension Plan [Member] | International corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 94 | 100 | |
Pension Plan [Member] | Registered investment companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14 | 7 | |
Pension Plan [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | ||
Pension Plan [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,242 | 2,179 | |
Pension Plan [Member] | Common/collective trusts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at NAV | 223 | 312 | |
Pension Plan [Member] | Venture capital funds and real estate funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at NAV | 4 | 4 | |
Pension Plan [Member] | Total fair value of plan assets excluding cash and cash equivalents and accounts payable [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,469 | 2,495 | |
Pension Plan [Member] | Level 1 [Member] | Equity Securities, Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 884 | 893 | |
Pension Plan [Member] | Level 1 [Member] | Equity Securities, International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 522 | 543 | |
Pension Plan [Member] | Level 1 [Member] | Equity Securities, Registered Investment Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 127 | 124 | |
Pension Plan [Member] | Level 1 [Member] | domestic government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 214 | 124 | |
Pension Plan [Member] | Level 1 [Member] | International government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Level 1 [Member] | Domestic corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Level 1 [Member] | International corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Level 1 [Member] | Registered investment companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Level 1 [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | ||
Pension Plan [Member] | Level 1 [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,747 | 1,685 | |
Pension Plan [Member] | Level 2 [Member] | Equity Securities, Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 7 | |
Pension Plan [Member] | Level 2 [Member] | Equity Securities, International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 1 | |
Pension Plan [Member] | Level 2 [Member] | Equity Securities, Registered Investment Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Level 2 [Member] | domestic government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 32 | 31 | |
Pension Plan [Member] | Level 2 [Member] | International government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 10 | |
Pension Plan [Member] | Level 2 [Member] | Domestic corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 346 | 338 | |
Pension Plan [Member] | Level 2 [Member] | International corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 94 | 100 | |
Pension Plan [Member] | Level 2 [Member] | Registered investment companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14 | 7 | |
Pension Plan [Member] | Level 2 [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pension Plan [Member] | Level 2 [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 495 | 494 | |
Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,057 | 1,003 | 1,054 |
Other Postretirement Benefit Plan [Member] | Total fair value of plan assets excluding cash and cash equivalents and accounts payable [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,057 | 1,004 | |
Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 436 | 405 | |
Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 221 | 217 | |
San Diego Gas and Electric Company [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 714 | 752 | 828 |
Transfers receivable excluded | 2 | ||
San Diego Gas and Electric Company [Member] | Pension Plan [Member] | Total fair value of plan assets excluding cash and cash equivalents and accounts payable [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 717 | 753 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 169 | 161 | 164 |
Cash and cash equivalents excluded | 1 | 1 | |
Accounts payable excluded | 1 | 1 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Equity Securities, Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41 | 39 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Equity Securities, International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24 | 24 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Equity Securities, Registered Investment Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46 | 41 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | domestic government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | 8 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Domestic corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16 | 15 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | International corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 4 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Registered investment companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17 | 16 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 158 | 147 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Common/collective trusts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at NAV | 11 | 14 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Total fair value of plan assets excluding cash and cash equivalents and accounts payable [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 169 | 161 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Equity Securities, Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41 | 39 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Equity Securities, International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24 | 24 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Equity Securities, Registered Investment Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46 | 41 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | domestic government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 5 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Domestic corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | International corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Registered investment companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 121 | 109 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Equity Securities, Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Equity Securities, International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Equity Securities, Registered Investment Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | domestic government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 3 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Domestic corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16 | 15 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | International corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 4 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Registered investment companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17 | 16 | |
San Diego Gas and Electric Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 37 | 38 | |
Southern California Gas Company [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,579 | 1,537 | 1,763 |
Southern California Gas Company [Member] | Pension Plan [Member] | Total fair value of plan assets excluding cash and cash equivalents and accounts payable [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,585 | 1,544 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 870 | 822 | $ 870 |
Cash and cash equivalents excluded | 4 | 3 | |
Accounts payable excluded | 4 | 4 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Equity Securities, Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 130 | 124 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Equity Securities, International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 77 | 74 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Equity Securities, Registered Investment Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46 | 43 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | domestic government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 60 | 49 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | International government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Domestic corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 94 | 87 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | International corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28 | 28 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Registered investment companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 47 | 49 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 484 | 456 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Common/collective trusts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at NAV | 386 | 367 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Total fair value of plan assets excluding cash and cash equivalents and accounts payable [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 870 | 823 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Equity Securities, Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 130 | 123 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Equity Securities, International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 77 | 74 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Equity Securities, Registered Investment Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46 | 43 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | domestic government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 52 | 42 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | International government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Domestic corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | International corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Registered investment companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 305 | 282 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Equity Securities, Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 1 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Equity Securities, International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Equity Securities, Registered Investment Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | domestic government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 7 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | International government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Domestic corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 94 | 87 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | International corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28 | 28 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Registered investment companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 47 | 49 | |
Southern California Gas Company [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 179 | 174 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Equity Securities, Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 6 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Equity Securities, International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 3 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Equity Securities, Registered Investment Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | ||
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | domestic government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 2 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | International government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Domestic corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | International corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Registered investment companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15 | 19 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Common/collective trusts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at NAV | 3 | 1 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Total fair value of plan assets excluding cash and cash equivalents and accounts payable [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18 | 20 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Equity Securities, Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 5 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Equity Securities, International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 3 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Equity Securities, Registered Investment Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | ||
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | domestic government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 2 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | International government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Domestic corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | International corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Registered investment companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 14 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Equity Securities, Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 1 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Equity Securities, International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Equity Securities, Registered Investment Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | domestic government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | International government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Domestic corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | International corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Registered investment companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Other Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | Level 2 [Member] | Total investment assets in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 5 | |
Sempra Energy [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash and cash equivalents excluded | 5 | 4 | |
Accounts payable excluded | $ 5 | $ 5 |
EMPLOYEE BENEFIT PLANS - PROFIT
EMPLOYEE BENEFIT PLANS - PROFIT SHARING PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Chilquinta Energia Profit Sharing [Member] | |||
Profit Sharing Plans [Line Items] | |||
Recorded Annual Profit Sharing Expense | $ 5 | $ 3 | $ 4 |
Luz del Sur Profit Sharing [Member] | |||
Profit Sharing Plans [Line Items] | |||
Recorded Annual Profit Sharing Expense | $ 10 | $ 10 | $ 10 |
EMPLOYEE BENEFIT PLANS - SAVING
EMPLOYEE BENEFIT PLANS - SAVINGS PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Savings Plan [Line Items] | |||
Employer contributions to defined benefit plan | $ 42 | $ 43 | $ 38 |
Market value of employer stock held by plan | 1,100 | 1,100 | |
San Diego Gas and Electric Company [Member] | |||
Savings Plan [Line Items] | |||
Employer contributions to defined benefit plan | 15 | 17 | 15 |
Southern California Gas Company [Member] | |||
Savings Plan [Line Items] | |||
Employer contributions to defined benefit plan | $ 22 | $ 21 | $ 18 |
SHARE-BASED COMPENSATION EXPENS
SHARE-BASED COMPENSATION EXPENSE/ OPTIONS (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense, before income taxes | $ 46 | $ 48 | $ 46 |
Income tax benefit | (18) | (19) | (18) |
Share-based compensation expense, net of taxes | 28 | 29 | 28 |
Excess Tax Benefits | 34 | 0 | 0 |
Allocated share based compensation | $ 7 | 6 | $ 5 |
Excess tax benefit | $ 52 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning balance | 527,997 | ||
Exercised | (167,742) | (227,815) | (699,783) |
Ending balance | 360,255 | 527,997 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Beginning balance (in dollars per share) | $ 53.62 | ||
Exercised (in dollars per share) | 56.11 | ||
Ending balance (in dollars per share) | $ 52.46 | $ 53.62 | |
Outstanding at period end, Weighted- average remaining contractual term | 2 years | ||
Outstanding at period end, Aggregate intrinsic value | $ 17 | ||
Vested at period end | 360,255 | ||
Vested at period end, Weighted- average exercise price (in dollars per share) | $ 52.46 | ||
Vested at period end, Weighted- average remaining contractual term | 2 years | ||
Vested at period end, Aggregate intrinsic value | $ 17 | ||
Exercisable at period end | 360,255 | ||
Exercisable at period end, Weighted- average exercise price (in dollars per share) | $ 52.46 | ||
Exercisable at period end, Weighted- average remaining contractual term | 2 years | ||
Exercisable at period end, Aggregate intrinsic value | $ 17 | ||
Aggregate intrinsic value of options exercised | $ 8 | $ 12 | $ 33 |
Options grants in period (in shares) | 0 | 0 | 0 |
Fair value of options vested | $ 1 | ||
Cash received from exercise of options | $ 9 | ||
Restricted Stock Units Issued By Subsidiary, Outstanding | 698,838 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,627,118 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,627,118 | ||
Restricted stock units issued by subsidary | 378,367 | 278,538 | 468,339 |
IENova Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Cash paid to settle awards | $ 1 | $ 4 | $ 3 |
San Diego Gas and Electric Company [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense, before income taxes | 7 | 8 | 8 |
Income tax benefit | (3) | (3) | (3) |
Share-based compensation expense, net of taxes | 4 | 5 | 5 |
Allocated share based compensation | 4 | 4 | 3 |
Southern California Gas Company [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense, before income taxes | 8 | 10 | 8 |
Income tax benefit | (3) | (4) | (3) |
Share-based compensation expense, net of taxes | 5 | 6 | 5 |
Allocated share based compensation | $ 3 | $ 2 | $ 2 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Restricted Stock Units (RSUs), Service-based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years | ||
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | ||
Awarded During Or After Two Thousand and Fourteen [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Maximum Additional Award | 100.00% | ||
Awarded during or after two thousand fifteen [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Maximum Additional Award | 100.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Increase Modifier for Top Quartile | 20.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Decrease Modifier for Bottom Quartile | 20.00% | ||
Awarded during or after two thousand fifteen [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years | ||
Awards Granted in 2013 and Earlier [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Maximum Additional Award | 50.00% | ||
Awards Before 2015 [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | ||
Awards Before 2015 [Member] | Restricted Stock Units (RSUs), Service-based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | ||
Minimum [Member] | Other Performance-Based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 2 years | ||
Minimum [Member] | Restricted Stock Units, Employee Stock Options, or Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years | ||
Maximum [Member] | Other Performance-Based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years | ||
Maximum [Member] | Restricted Stock Units, Employee Stock Options, or Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years |
- RSAs and RSUs (Details)
- RSAs and RSUs (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Maximum Performance Based RSU Target Performance Conditions Exceeded Through 2013 | 50.00% | ||
Maximum Performance Based RSU Target Performance Conditions Exceeded For Awards Granted during or after 2014 | 100.00% | ||
Share-Based Compensation, Restricted Stock Awards And Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 16.00% | 14.00% | 16.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.30% | 1.10% | 1.20% |
Share-Based Compensation, Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 34 | ||
Weighted average period over which unrecognized compensation cost will be recognized | 1 year 6 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 46 | $ 46 | $ 33 |
Share-Based Compensation, Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 1,537 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning of Period | $ 75.87 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (1,537) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 75.87 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 0 | 1,537 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, End of Period | $ 0 | $ 75.87 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0 | $ 1 | $ 1 |
Share-Based Compensation, Performance Based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 2,271,675 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning of Period | $ 73.28 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 467,830 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 100.37 | $ 123.30 | $ 88.01 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (761,042) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 49.28 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (24,141) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 115.73 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 1,954,322 | 2,271,675 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, End of Period | $ 88.58 | $ 73.28 | |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Vested And Expected To Vest, Outstanding, Number | 1,883,636 | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Vested And Expected To Vest, Weighted Average Grant Date Fair Value | $ 88.07 | ||
Share-Based Compensation, Service Based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 348,806 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning of Period | $ 80.14 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 95,876 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 93.59 | $ 111.43 | $ 91.54 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (135,456) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 65.20 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (3,490) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 90.58 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 305,736 | 348,806 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, End of Period | $ 94.68 | $ 80.14 | |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Vested And Expected To Vest, Outstanding, Number | 293,822 | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Vested And Expected To Vest, Weighted Average Grant Date Fair Value | $ 90.58 |
DERIVATIVE FINANCIAL INSTRUM102
DERIVATIVE FINANCIAL INSTRUMENTS - COMMODITY VOLUMES (Details) MWh in Millions, MMBTU in Millions | 12 Months Ended | |
Dec. 31, 2016MWhMMBTU | Dec. 31, 2015MWhMMBTU | |
SDG&E [Member] | Natural Gas Derivative [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Energy Measure | 48 | 70 |
SDG&E [Member] | Electric Energy Derivative [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Energy Measure | MWh | 4 | 1 |
SDG&E [Member] | Congestion Revenue Rights Derivative [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Energy Measure | MWh | 48 | 36 |
SoCalGas [Member] | Natural Gas Derivative [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Energy Measure | 1 | 1 |
Sempra LNG and Midstream [Member] | Natural Gas Derivative [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Energy Measure | 31 | 43 |
DERIVATIVE FINANCIAL INSTRUM103
DERIVATIVE FINANCIAL INSTRUMENTS - NOTIONALS AMOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2017 | |
Cash Flow Hedging [Member] | Interest rate instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of derivative liability | $ 924 | $ 384 | |
Fair Value Hedging [Member] | Interest rate instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Maturity Date | Dec. 31, 2016 | ||
Notional amount of derivative liability | 0 | $ 300 | |
Sempra Mexico [Member] | Cross-currency swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of derivative liability | 408 | 408 | |
Sempra Mexico [Member] | Other foreign currency derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of derivative liability | $ 86 | $ 0 | |
Minimum [Member] | Cash Flow Hedging [Member] | Interest rate instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Maturity Date | Dec. 31, 2017 | Dec. 31, 2016 | |
Minimum [Member] | Sempra Mexico [Member] | Cross-currency swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Maturity Date | Dec. 31, 2017 | Dec. 31, 2016 | |
Minimum [Member] | Sempra Mexico [Member] | Other foreign currency derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Maturity Date | Dec. 31, 2017 | ||
Maximum [Member] | Cash Flow Hedging [Member] | Interest rate instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Maturity Date | Dec. 31, 2032 | Dec. 31, 2028 | |
Maximum [Member] | Sempra Mexico [Member] | Cross-currency swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Maturity Date | Dec. 31, 2023 | Dec. 31, 2023 | |
Maximum [Member] | Sempra Mexico [Member] | Other foreign currency derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Maturity Date | Dec. 31, 2018 | ||
Subsequent Event [Member] | Other foreign currency derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of derivative liability | $ 750 | ||
San Diego Gas and Electric Company [Member] | Cash Flow Hedging [Member] | Interest rate instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of derivative liability | $ 305 | $ 315 | |
San Diego Gas and Electric Company [Member] | Minimum [Member] | Cash Flow Hedging [Member] | Interest rate instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Maturity Date | Dec. 31, 2017 | Dec. 31, 2016 | |
San Diego Gas and Electric Company [Member] | Maximum [Member] | Cash Flow Hedging [Member] | Interest rate instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Maturity Date | Dec. 31, 2019 | Dec. 31, 2019 |
DERIVATIVE FINANCIAL INSTRUM104
DERIVATIVE FINANCIAL INSTRUMENTS - BALANCE SHEET (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Net amount presented on balance sheet | $ 41,000,000 | $ 50,000,000 |
Additional margin posted for commodity contracts not subject to rate recovery | 10,000,000 | 2,000,000 |
Additional margin posted for commodity contracts subject to rate recovery | 32,000,000 | 28,000,000 |
Total | 83,000,000 | 80,000,000 |
Other assets: Sundry [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Net amount presented on balance sheet | 82,000,000 | 60,000,000 |
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 | 82,000,000 | 60,000,000 |
Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Net amount presented on balance sheet | (77,000,000) | (49,000,000) |
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 | (77,000,000) | (49,000,000) |
Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Net amount presented on balance sheet | (364,000,000) | (193,000,000) |
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 | (364,000,000) | (193,000,000) |
Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ||
Interest rate and foreign exchange instruments | 7,000,000 | 4,000,000 |
Commodity contracts not subject to rate recovery | 0 | 13,000,000 |
Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ||
Interest rate and foreign exchange instruments | 2,000,000 | 1,000,000 |
Commodity contracts not subject to rate recovery | 0 | 0 |
Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ||
Interest rate and foreign exchange instruments | (24,000,000) | (15,000,000) |
Commodity contracts not subject to rate recovery | (14,000,000) | 0 |
Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ||
Interest rate and foreign exchange instruments | (228,000,000) | (156,000,000) |
Commodity contracts not subject to rate recovery | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Commodity contracts not subject to rate recovery | 248,000,000 | 245,000,000 |
Associated offsetting commodity contracts not subject to rate recovery | (242,000,000) | (232,000,000) |
Associated cash collateral commodity contracts not subject to rate recovery | 0 | (6,000,000) |
Commodity contracts subject to rate recovery | 37,000,000 | 28,000,000 |
Associated offsetting commodity contracts subject to rate recovery | (9,000,000) | (2,000,000) |
Associated cash collateral commodity contracts subject to rate recovery | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Commodity contracts not subject to rate recovery | 36,000,000 | 32,000,000 |
Associated offsetting commodity contracts not subject to rate recovery | (27,000,000) | (20,000,000) |
Associated cash collateral commodity contracts not subject to rate recovery | (1,000,000) | 0 |
Commodity contracts subject to rate recovery | 73,000,000 | 49,000,000 |
Associated offsetting commodity contracts subject to rate recovery | (1,000,000) | (2,000,000) |
Associated cash collateral commodity contracts subject to rate recovery | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Commodity contracts not subject to rate recovery | (254,000,000) | (239,000,000) |
Associated offsetting commodity contracts not subject to rate recovery | 242,000,000 | 232,000,000 |
Associated cash collateral commodity contracts not subject to rate recovery | 16,000,000 | 4,000,000 |
Commodity contracts subject to rate recovery | (57,000,000) | (61,000,000) |
Associated offsetting commodity contracts subject to rate recovery | 9,000,000 | 2,000,000 |
Associated cash collateral commodity contracts subject to rate recovery | 5,000,000 | 28,000,000 |
Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Commodity contracts not subject to rate recovery | (28,000,000) | (21,000,000) |
Associated offsetting commodity contracts not subject to rate recovery | 27,000,000 | 20,000,000 |
Associated cash collateral commodity contracts not subject to rate recovery | 1,000,000 | 0 |
Commodity contracts subject to rate recovery | (150,000,000) | (64,000,000) |
Associated offsetting commodity contracts subject to rate recovery | 1,000,000 | 2,000,000 |
Associated cash collateral commodity contracts subject to rate recovery | 13,000,000 | 26,000,000 |
San Diego Gas and Electric Company [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Net amount presented on balance sheet | 27,000,000 | 25,000,000 |
Additional margin posted for commodity contracts not subject to rate recovery | 1,000,000 | 1,000,000 |
Additional margin posted for commodity contracts subject to rate recovery | 30,000,000 | 27,000,000 |
Total | 58,000,000 | 53,000,000 |
San Diego Gas and Electric Company [Member] | Other assets: Sundry [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Net amount presented on balance sheet | 72,000,000 | 47,000,000 |
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 | 72,000,000 | 47,000,000 |
San Diego Gas and Electric Company [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Net amount presented on balance sheet | (55,000,000) | (44,000,000) |
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 | (55,000,000) | (44,000,000) |
San Diego Gas and Electric Company [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Net amount presented on balance sheet | (148,000,000) | (59,000,000) |
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 | (148,000,000) | (59,000,000) |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ||
Interest rate and foreign exchange instruments | 0 | 0 |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ||
Interest rate and foreign exchange instruments | 0 | 0 |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ||
Interest rate and foreign exchange instruments | (13,000,000) | (14,000,000) |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ||
Interest rate and foreign exchange instruments | (12,000,000) | (23,000,000) |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Commodity contracts not subject to rate recovery | 0 | |
Associated cash collateral commodity contracts not subject to rate recovery | 0 | |
Commodity contracts subject to rate recovery | 33,000,000 | 27,000,000 |
Associated offsetting commodity contracts subject to rate recovery | (6,000,000) | (2,000,000) |
Associated cash collateral commodity contracts subject to rate recovery | 0 | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Commodity contracts not subject to rate recovery | 0 | |
Associated cash collateral commodity contracts not subject to rate recovery | 0 | |
Commodity contracts subject to rate recovery | 73,000,000 | 49,000,000 |
Associated offsetting commodity contracts subject to rate recovery | (1,000,000) | (2,000,000) |
Associated cash collateral commodity contracts subject to rate recovery | 0 | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Commodity contracts not subject to rate recovery | (1,000,000) | |
Associated cash collateral commodity contracts not subject to rate recovery | 1,000,000 | |
Commodity contracts subject to rate recovery | (51,000,000) | (60,000,000) |
Associated offsetting commodity contracts subject to rate recovery | 6,000,000 | 2,000,000 |
Associated cash collateral commodity contracts subject to rate recovery | 3,000,000 | 28,000,000 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Commodity contracts not subject to rate recovery | 0 | |
Associated cash collateral commodity contracts not subject to rate recovery | 0 | |
Commodity contracts subject to rate recovery | (150,000,000) | (64,000,000) |
Associated offsetting commodity contracts subject to rate recovery | 1,000,000 | 2,000,000 |
Associated cash collateral commodity contracts subject to rate recovery | 13,000,000 | 26,000,000 |
Southern California Gas Company [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Net amount presented on balance sheet | 1,000,000 | 1,000,000 |
Additional margin posted for commodity contracts not subject to rate recovery | 1,000,000 | |
Additional margin posted for commodity contracts subject to rate recovery | 2,000,000 | 1,000,000 |
Total | 4,000,000 | 2,000,000 |
Southern California Gas Company [Member] | Other assets: Sundry [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Net amount presented on balance sheet | 0 | 0 |
Additional margin posted for commodity contracts not subject to rate recovery | 0 | |
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 |
Total | 0 | 0 |
Southern California Gas Company [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Net amount presented on balance sheet | (1,000,000) | (1,000,000) |
Additional margin posted for commodity contracts not subject to rate recovery | 0 | |
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 |
Total | (1,000,000) | (1,000,000) |
Southern California Gas Company [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Net amount presented on balance sheet | 0 | 0 |
Additional margin posted for commodity contracts not subject to rate recovery | 0 | |
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 |
Total | 0 | 0 |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Commodity contracts not subject to rate recovery | 0 | |
Associated cash collateral commodity contracts not subject to rate recovery | 0 | |
Commodity contracts subject to rate recovery | 4,000,000 | 1,000,000 |
Associated offsetting commodity contracts subject to rate recovery | (3,000,000) | |
Associated cash collateral commodity contracts subject to rate recovery | 0 | |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Commodity contracts not subject to rate recovery | 0 | |
Associated cash collateral commodity contracts not subject to rate recovery | 0 | |
Commodity contracts subject to rate recovery | 0 | 0 |
Associated offsetting commodity contracts subject to rate recovery | 0 | |
Associated cash collateral commodity contracts subject to rate recovery | 0 | |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Commodity contracts not subject to rate recovery | (1,000,000) | |
Associated cash collateral commodity contracts not subject to rate recovery | 1,000,000 | |
Commodity contracts subject to rate recovery | (6,000,000) | (1,000,000) |
Associated offsetting commodity contracts subject to rate recovery | 3,000,000 | |
Associated cash collateral commodity contracts subject to rate recovery | 2,000,000 | |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Commodity contracts not subject to rate recovery | 0 | |
Associated cash collateral commodity contracts not subject to rate recovery | 0 | |
Commodity contracts subject to rate recovery | 0 | $ 0 |
Associated offsetting commodity contracts subject to rate recovery | 0 | |
Associated cash collateral commodity contracts subject to rate recovery | $ 0 |
DERIVATIVE FINANCIAL INSTRUM105
DERIVATIVE FINANCIAL INSTRUMENTS - INCOME STATEMENT (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | $ (21,000,000) | $ 10,000,000 | $ 25,000,000 |
Loss on cash flow hedge ineffectiveness | 4,000,000 | 2,000,000 | 1,000,000 |
Fair Value Hedging [Member] | Interest Expense [Member] | Interest rate instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain on fair value hedge ineffectiveness | 0 | 0 | 9,000,000 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | 1,000,000 | 1,000,000 | 5,000,000 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Expense [Member] | Interest rate instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | 3,000,000 | 6,000,000 | 8,000,000 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Other Income [Member] | Interest rate instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | (2,000,000) | (5,000,000) | (3,000,000) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivative recognized in OCI (effective portion) | (21,000,000) | (106,000,000) | (129,000,000) |
Pretax gain (loss) reclassified from AOCI into earnings (effective portion) | (33,000,000) | (29,000,000) | (20,000,000) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | Interest rate and foreign exchange instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivative recognized in OCI (effective portion) | (8,000,000) | (18,000,000) | (24,000,000) |
Pretax gain (loss) reclassified from AOCI into earnings (effective portion) | (17,000,000) | (18,000,000) | (21,000,000) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Gain On Sale Of Assets [Member] | Interest rate instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivative recognized in OCI (effective portion) | 0 | 0 | 3,000,000 |
Pretax gain (loss) reclassified from AOCI into earnings (effective portion) | 0 | 0 | 3,000,000 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Equity Earnings Before Income Tax [Member] | Interest rate instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivative recognized in OCI (effective portion) | (9,000,000) | (80,000,000) | (127,000,000) |
Pretax gain (loss) reclassified from AOCI into earnings (effective portion) | (10,000,000) | (12,000,000) | (10,000,000) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Remeasurement of Equity Method Investment [Member] | Interest rate and foreign exchange instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivative recognized in OCI (effective portion) | 0 | 0 | 0 |
Pretax gain (loss) reclassified from AOCI into earnings (effective portion) | (7,000,000) | 0 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Equity Earnings Net Of Income Tax [Member] | Interest rate and foreign exchange instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivative recognized in OCI (effective portion) | 5,000,000 | (20,000,000) | 0 |
Pretax gain (loss) reclassified from AOCI into earnings (effective portion) | (5,000,000) | (13,000,000) | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Revenues: Energy-Related Businesses [Member] | Commodity Contracts Not Subject To Rate Recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivative recognized in OCI (effective portion) | (13,000,000) | 12,000,000 | 19,000,000 |
Pretax gain (loss) reclassified from AOCI into earnings (effective portion) | 6,000,000 | 14,000,000 | 8,000,000 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Revenues: Energy-Related Businesses [Member] | Foreign exchange instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivative recognized in OCI (effective portion) | 4,000,000 | 0 | 0 |
Pretax gain (loss) reclassified from AOCI into earnings (effective portion) | 0 | 0 | 0 |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | (103,000,000) | (92,000,000) | (23,000,000) |
Not Designated as Hedging Instrument [Member] | Other Income [Member] | Interest rate and foreign exchange instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | (32,000,000) | (4,000,000) | (24,000,000) |
Not Designated as Hedging Instrument [Member] | Equity Earnings Net Of Income Tax [Member] | Foreign exchange instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | 3,000,000 | (4,000,000) | (5,000,000) |
Not Designated as Hedging Instrument [Member] | Revenues: Energy-Related Businesses [Member] | Commodity Contracts Not Subject To Rate Recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | (18,000,000) | 42,000,000 | 17,000,000 |
Not Designated as Hedging Instrument [Member] | Cost of Natural Gas, Electric Fuel and Purchased Power [Member] | Commodity Contracts Not Subject To Rate Recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | 0 | 0 | 3,000,000 |
Not Designated as Hedging Instrument [Member] | Operation And Maintenance [Member] | Commodity Contracts Not Subject To Rate Recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | 1,000,000 | (1,000,000) | (4,000,000) |
Not Designated as Hedging Instrument [Member] | Cost of Electric Fuel and Purchased Power [Member] | Commodity contracts subject to rate recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | (53,000,000) | (126,000,000) | (10,000,000) |
Not Designated as Hedging Instrument [Member] | Cost of Natural Gas [Member] | Commodity contracts subject to rate recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | (4,000,000) | 1,000,000 | 0 |
San Diego Gas and Electric Company [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | 3,000,000 | 4,000,000 | 6,000,000 |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | Interest rate instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivative recognized in OCI (effective portion) | (2,000,000) | (6,000,000) | (9,000,000) |
Pretax gain (loss) reclassified from AOCI into earnings (effective portion) | (12,000,000) | (12,000,000) | (11,000,000) |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | (53,000,000) | (126,000,000) | (11,000,000) |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Operation And Maintenance [Member] | Commodity Contracts Not Subject To Rate Recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | 0 | 0 | (1,000,000) |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Cost of Electric Fuel and Purchased Power [Member] | Commodity contracts subject to rate recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | (53,000,000) | (126,000,000) | (10,000,000) |
Southern California Gas Company [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | Interest rate instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivative recognized in OCI (effective portion) | 0 | 0 | 0 |
Pretax gain (loss) reclassified from AOCI into earnings (effective portion) | (1,000,000) | (1,000,000) | (1,000,000) |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | (3,000,000) | 0 | (2,000,000) |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Operation And Maintenance [Member] | Commodity Contracts Not Subject To Rate Recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | 1,000,000 | (1,000,000) | (2,000,000) |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Cost of Natural Gas [Member] | Commodity contracts subject to rate recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative recognized in earnings | $ (4,000,000) | $ 1,000,000 | $ 0 |
DERIVATIVE FINANCIAL INSTRUM106
DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Cash flow hedge gain (loss) to be reclassified within 12 months | $ 25 |
Maximum length of time hedged in cash flow hedge | 15 years |
Non-controlling interests [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Cash flow hedge gain (loss) to be reclassified within 12 months | $ 12 |
San Diego Gas and Electric Company [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Maximum length of time hedged in cash flow hedge | 2 years |
San Diego Gas and Electric Company [Member] | Non-controlling interests [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Cash flow hedge gain (loss) to be reclassified within 12 months | $ 12 |
Equity Method Investee [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Maximum length of time hedged in cash flow hedge | 19 years |
DERIVATIVE FINANCIAL INSTRUM107
DERIVATIVE FINANCIAL INSTRUMENTS - CONTINGENT FEATURES (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate fair value of net liability position | $ 10 | $ 6 |
Aggregate fair value of additional collateral | 13 | |
San Diego Gas and Electric Company [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate fair value of net liability position | 0 | $ 5 |
Aggregate fair value of additional collateral | $ 3 |
FAIR VALUE MEASUREMENTS - RECUR
FAIR VALUE MEASUREMENTS - RECURRING FAIR VALUE MEASURES (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | $ 508 | $ 619 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 52 | 91 |
Nuclear decomissioning trusts - Municipal debt securities | 206 | 156 |
Nuclear decommissioning trusts - Other debt securities | 141 | 182 |
Nuclear decommissioning trusts - Total debt securities | 399 | 429 |
Nuclear Decommissioning trust netting | 0 | 0 |
Total nuclear decommissioning trusts | 907 | 1,048 |
Derivative Asset, Netting | 41 | 24 |
Assets fair value disclosure, total | 1,072 | 1,188 |
Derivative Liability, Netting | (35) | (58) |
Liabilities fair value disclosure, total | 441 | 242 |
Interest Rate and Foreign Exchange Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 9 | 5 |
Derivative Asset, Netting | 0 | 0 |
Derivative Liability | 252 | 171 |
Derivative Liability, Netting | 0 | 0 |
Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 24 | 34 |
Derivative Asset, Netting | 9 | (4) |
Derivative Liability | 10 | 4 |
Derivative Liability, Netting | (17) | (4) |
Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 132 | 101 |
Derivative Asset, Netting | 32 | 28 |
Derivative Liability | 179 | 67 |
Derivative Liability, Netting | (18) | (54) |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 508 | 619 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 36 | 47 |
Nuclear decomissioning trusts - Municipal debt securities | 0 | 0 |
Nuclear decommissioning trusts - Other debt securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 36 | 47 |
Total nuclear decommissioning trusts | 544 | 666 |
Assets fair value disclosure, total | 545 | 688 |
Liabilities fair value disclosure, total | 35 | 5 |
Level 1 [Member] | Interest Rate and Foreign Exchange Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Level 1 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 22 |
Derivative Liability | 16 | 5 |
Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 1 | 0 |
Derivative Liability | 19 | 0 |
Level 2 [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 | 16 | 44 |
Nuclear decomissioning trusts - Municipal debt securities | 206 | 156 |
Nuclear decommissioning trusts - Other debt securities | 141 | 182 |
Nuclear decommissioning trusts - Total debt securities | 363 | 382 |
Total nuclear decommissioning trusts | 363 | 382 |
Assets fair value disclosure, total | 390 | 404 |
Liabilities fair value disclosure, total | 271 | 242 |
Level 2 [Member] | Interest Rate and Foreign Exchange Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 9 | 5 |
Derivative Liability | 252 | 171 |
Level 2 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 15 | 16 |
Derivative Liability | 11 | 3 |
Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 3 | 1 |
Derivative Liability | 8 | 68 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 |
Nuclear 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 | 0 |
Assets fair value disclosure, total | 96 | 72 |
Liabilities fair value disclosure, total | 170 | 53 |
Level 3 [Member] | Interest Rate and Foreign Exchange Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Level 3 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 96 | 72 |
Derivative Liability | 170 | 53 |
San Diego Gas and Electric Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 508 | 619 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 52 | 91 |
Nuclear decomissioning trusts - Municipal debt securities | 206 | 156 |
Nuclear decommissioning trusts - Other debt securities | 141 | 182 |
Nuclear decommissioning trusts - Total debt securities | 399 | 429 |
Nuclear Decommissioning trust netting | 0 | 0 |
Total nuclear decommissioning trusts | 907 | 1,048 |
Derivative Asset, Netting | 31 | 28 |
Assets fair value disclosure, total | 1,037 | 1,148 |
Derivative Liability, Netting | (16) | (55) |
Liabilities fair value disclosure, total | 203 | 103 |
San Diego Gas and Electric Company [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 1 | 1 |
Derivative Asset, Netting | 1 | 1 |
Derivative Liability | 0 | |
Derivative Liability, Netting | (1) | |
San Diego Gas and Electric Company [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 129 | 99 |
Derivative Asset, Netting | 30 | 27 |
Derivative Liability | 178 | 66 |
Derivative Liability, Netting | (16) | (54) |
San Diego Gas and Electric Company [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 25 | 37 |
Derivative Liability, Netting | 0 | 0 |
San Diego Gas and Electric Company [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 508 | 619 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 36 | 47 |
Nuclear decomissioning trusts - Municipal debt securities | 0 | 0 |
Nuclear decommissioning trusts - Other debt securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 36 | 47 |
Total nuclear decommissioning trusts | 544 | 666 |
Assets fair value disclosure, total | 545 | 666 |
Liabilities fair value disclosure, total | 17 | 1 |
San Diego Gas and Electric Company [Member] | Level 1 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 1 | |
San Diego Gas and Electric Company [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 1 | 0 |
Derivative Liability | 17 | 0 |
San Diego Gas and Electric Company [Member] | Level 1 [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | 0 |
San Diego Gas and Electric Company [Member] | Level 2 [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 | 16 | 44 |
Nuclear decomissioning trusts - Municipal debt securities | 206 | 156 |
Nuclear decommissioning trusts - Other debt securities | 141 | 182 |
Nuclear decommissioning trusts - Total debt securities | 363 | 382 |
Total nuclear decommissioning trusts | 363 | 382 |
Assets fair value disclosure, total | 365 | 382 |
Liabilities fair value disclosure, total | 32 | 104 |
San Diego Gas and Electric Company [Member] | Level 2 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | |
San Diego Gas and Electric Company [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 2 | 0 |
Derivative Liability | 7 | 67 |
San Diego Gas and Electric Company [Member] | Level 2 [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 25 | 37 |
San Diego Gas and Electric Company [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 |
Nuclear 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 | 0 |
Assets fair value disclosure, total | 96 | 72 |
Liabilities fair value disclosure, total | 170 | 53 |
San Diego Gas and Electric Company [Member] | Level 3 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | |
San Diego Gas and Electric Company [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 96 | 72 |
Derivative Liability | 170 | 53 |
San Diego Gas and Electric Company [Member] | Level 3 [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | 0 |
Southern California Gas Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Netting | 3 | 1 |
Assets fair value disclosure, total | 4 | 2 |
Derivative Liability, Netting | (2) | (1) |
Liabilities fair value disclosure, total | 1 | 1 |
Southern California Gas Company [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 1 | |
Derivative Asset, Netting | 1 | |
Derivative Liability | 0 | |
Derivative Liability, Netting | (1) | |
Southern California Gas Company [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 3 | 2 |
Derivative Asset, Netting | 2 | 1 |
Derivative Liability | 1 | 1 |
Derivative Liability, Netting | (2) | 0 |
Southern California Gas Company [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure, total | 0 | 0 |
Liabilities fair value disclosure, total | 2 | 1 |
Southern California Gas Company [Member] | Level 1 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Derivative Liability | 1 | |
Southern California Gas Company [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 2 | 0 |
Southern California Gas Company [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure, total | 1 | 1 |
Liabilities fair value disclosure, total | 1 | 1 |
Southern California Gas Company [Member] | Level 2 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Derivative Liability | 0 | |
Southern California Gas Company [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 1 | 1 |
Derivative Liability | 1 | 1 |
Southern California Gas Company [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure, total | 0 | 0 |
Liabilities fair value disclosure, total | 0 | 0 |
Southern California Gas Company [Member] | Level 3 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Derivative Liability | 0 | |
Southern California Gas Company [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - RECON
FAIR VALUE MEASUREMENTS - RECON OF LEVEL 3 ASSETS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract] | |||
Balance at beginning of period | $ 19,000,000 | $ 107,000,000 | $ 99,000,000 |
Realized and unrealized (losses) gains | (120,000,000) | (134,000,000) | 15,000,000 |
Allocated transmission instruments | 8,000,000 | 12,000,000 | 19,000,000 |
Settlements | 19,000,000 | 34,000,000 | (26,000,000) |
Balance at end of period | (74,000,000) | 19,000,000 | 107,000,000 |
Change in unrealized gains relating to instruments still held at the end of the period | (101,000,000) | (27,000,000) | $ 8,000,000 |
San Diego Gas and Electric Company [Member] | Maximum [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract] | |||
Congestion revenue rights | 10 | 8 | |
Market electricity forward price inputs | 56.67 | ||
San Diego Gas and Electric Company [Member] | Minimum [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract] | |||
Congestion revenue rights | (24) | $ (16) | |
Market electricity forward price inputs | $ 17.40 |
FAIR VALUE MEASUREMENTS - FINAN
FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Accumulated interest outstanding | $ 17 | $ 11 |
Unamortized discount (net of premium) and debt issuance costs | 109 | 107 |
Capital lease obligations and build-to-suit | 383 | 387 |
Level 3 [Member] | Otay Mesa VIE [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross long-term debt | 305 | 315 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term amounts due from unconsolidated entities | 184 | 175 |
Total long-term debt | 15,068 | 13,761 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term amounts due from unconsolidated entities | 175 | 166 |
Total long-term debt | 15,947 | 14,633 |
Fair Value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term amounts due from unconsolidated entities | 0 | 0 |
Total long-term debt | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term amounts due from unconsolidated entities | 91 | 97 |
Total long-term debt | 15,455 | 13,985 |
Fair Value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term amounts due from unconsolidated entities | 84 | 69 |
Total long-term debt | 492 | 648 |
San Diego Gas and Electric Company [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized discount (net of premium) and debt issuance costs | 45 | 43 |
Gross long-term debt | 4,349 | 3,989 |
Capital lease obligations | 240 | 244 |
San Diego Gas and Electric Company [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 4,654 | 4,304 |
San Diego Gas and Electric Company [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 5,032 | 4,670 |
San Diego Gas and Electric Company [Member] | Fair Value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 0 | 0 |
San Diego Gas and Electric Company [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 4,727 | 4,355 |
San Diego Gas and Electric Company [Member] | Fair Value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 305 | 315 |
Southern California Gas Company [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized discount (net of premium) and debt issuance costs | 27 | 24 |
Gross long-term debt | 3,000 | 2,500 |
Capital lease obligations | 0 | 1 |
Southern California Gas Company [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 3,009 | 2,513 |
Southern California Gas Company [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 3,131 | 2,621 |
Southern California Gas Company [Member] | Fair Value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 0 | 0 |
Southern California Gas Company [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 3,131 | 2,621 |
Southern California Gas Company [Member] | Fair Value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - NONRE
FAIR VALUE MEASUREMENTS - NONRECURRING FAIR VALUE MEASURES (Details) $ in Millions | Sep. 26, 2016USD ($) | Jul. 16, 2014USD ($)MW | May 31, 2016USD ($) | Mar. 31, 2016USD ($) | Jul. 31, 2014MW | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 29, 2016USD ($) | Sep. 27, 2016 | Sep. 25, 2016 | Mar. 29, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Remeasurement of equity method investment | $ 617 | $ 0 | $ 0 | |||||||||||
Equity method investment | 2,080 | $ 2,889 | ||||||||||||
Rockies Express [Member] | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Ownership percentage in equity method investee | 25.00% | |||||||||||||
Market Approach Valuation Technique [Member] | GdC [Member] | Level 2 [Member] | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Fair value of investment | $ 1,144 | |||||||||||||
% of fair value measurement | 100.00% | |||||||||||||
Range of inputs | 100.00% | |||||||||||||
Market Approach Valuation Technique [Member] | TdM [Member] | Level 2 [Member] | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Fair value of investment | $ 145 | |||||||||||||
% of fair value measurement | 100.00% | |||||||||||||
Range of inputs | 100.00% | |||||||||||||
Market Approach Valuation Technique [Member] | Energia Sierra Juarez Wind Project [Member] | Level 2 [Member] | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Fair value of investment | $ 26 | |||||||||||||
% of fair value measurement | 100.00% | |||||||||||||
Range of inputs | 100.00% | |||||||||||||
Market Approach Valuation Technique [Member] | Rockies Express [Member] | Level 2 [Member] | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Fair value of investment | $ 440 | |||||||||||||
% of fair value measurement | 100.00% | |||||||||||||
Range of inputs | 100.00% | |||||||||||||
Carrying Amount [Member] | TdM [Member] | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Fair value of investment | 154 | |||||||||||||
Carrying Amount [Member] | Energia Sierra Juarez Wind Project [Member] | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Fair value of investment | $ 38 | |||||||||||||
Sempra Mexico [Member] | GdC [Member] | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Acquired percentage interest | 50.00% | |||||||||||||
Ownership percentage in equity method investee | 100.00% | 100.00% | 50.00% | |||||||||||
Remeasurement of equity method investment | $ 617 | |||||||||||||
Gain on acquisition of remaining voting rights, net of tax | 432 | |||||||||||||
Fair value of investment | 1,144 | |||||||||||||
Equity method investment | 520 | |||||||||||||
Reclassification adjustment from AOCI | (7) | |||||||||||||
Fair value of business combination | $ 2,288 | |||||||||||||
Sempra Mexico [Member] | TdM [Member] | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Other than temporary impairment in investment | $ 131 | |||||||||||||
Other than temporary impairment in investment, net of tax | $ 111 | |||||||||||||
Sempra Mexico [Member] | Energia Sierra Juarez Wind Project [Member] | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Ownership percentage in equity method investee | 50.00% | |||||||||||||
Sempra Mexico [Member] | Energia Sierra Juarez Wind Project [Member] | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Ownership percentage in equity method investee | 50.00% | |||||||||||||
Generating capacity (in mw) | MW | 155 | 155 | ||||||||||||
Cash consideration received | $ 24 | |||||||||||||
Cash | 2 | |||||||||||||
Gain attributable to remeasurement, after tax | 7 | |||||||||||||
Proceeds from sale | $ 26 | |||||||||||||
Sempra LNG & MIdstream [Member] | Rockies Express [Member] | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Ownership percentage in equity method investee | 25.00% | 25.00% | ||||||||||||
Fair value of investment | $ 440 | |||||||||||||
Equity method investment | 484 | |||||||||||||
Other than temporary impairment in investment | 44 | $ 44 | ||||||||||||
Other than temporary impairment in investment, net of tax | 27 | $ 27 | ||||||||||||
Proceeds from sale of investments | $ 443 | $ 440 |
PREFERRED STOCK (Details)
PREFERRED STOCK (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Preferred Stock [Line Items] | ||
Preferred stock shares authorized | 50,000,000 | 50,000,000 |
So Cal Gas Series Preferred Stock [Member] | ||
Preferred Stock [Line Items] | ||
Preferred stock shares authorized | 5,000,000 | |
So Cal Gas Preferred Stock Owned By Pacific Enterprises [Member] | ||
Preferred Stock [Line Items] | ||
Preferred stock outstanding held by parent | $ (2) | $ (2) |
Preferred Stock Of Subsidiaries [Member] | ||
Preferred Stock [Line Items] | ||
Preferred stock outstanding | $ 20 | $ 20 |
Utility Subsidiaries [Member] | Twenty Five Dollar Par, Six Percent Series A [Member] | ||
Preferred Stock [Line Items] | ||
Number of preferred stock shares outstanding | 783,032 | |
San Diego Gas and Electric Company [Member] | ||
Preferred Stock [Line Items] | ||
Preferred stock shares authorized | 45,000,000 | 45,000,000 |
Southern California Gas Company [Member] | ||
Preferred Stock [Line Items] | ||
Preferred stock shares authorized | 11,000,000 | 11,000,000 |
Number of preferred stock shares outstanding | 1,000,000 | 1,000,000 |
Southern California Gas Company [Member] | So Cal Gas Series Preferred Stock [Member] | ||
Preferred Stock [Line Items] | ||
Preferred stock shares authorized | 5,000,000 | |
Preferred stock outstanding | $ 22 | $ 22 |
Southern California Gas Company [Member] | Twenty Five Dollar Par, Six Percent Series [Member] | ||
Preferred Stock [Line Items] | ||
Preferred stock shares authorized | 1,000,000 | |
Par value (in dollars per share) | $ 25 | |
Number of preferred stock shares outstanding | 79,011 | |
Preferred stock outstanding | $ 3 | 3 |
Southern California Gas Company [Member] | Twenty Five Dollar Par, Six Percent Series A [Member] | ||
Preferred Stock [Line Items] | ||
Par value (in dollars per share) | $ 25 | |
Preferred stock outstanding | $ 19 | $ 19 |
Liquidation preference (in dollars per share) | $ 25 | |
Southern California Gas Company [Member] | So Cal Gas Preferred Stock Owned By Pacific Enterprises [Member] | ||
Preferred Stock [Line Items] | ||
Number of preferred stock shares outstanding | 50,970 |
SEMPRA ENERGY - SHAREHOLDERS113
SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE - EARNINGS PER SHARE COMPUTATIONS AND DIVIDENDS DECLARED (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Earnings/Income attributable to common shares | $ 379 | $ 622 | $ 16 | $ 353 | $ 369 | $ 248 | $ 295 | $ 437 | $ 1,370 | $ 1,349 | $ 1,161 |
Weighted-average number of shares outstanding, basic | 250,600,000 | 250,400,000 | 250,100,000 | 249,700,000 | 248,700,000 | 248,400,000 | 248,100,000 | 247,700,000 | 250,217,000 | 248,249,000 | 245,891,000 |
Fully vested RSUs included in the computation of EPS | 568 | 491 | 212 | ||||||||
Dilutive effect of stock options, restricted stock awards and restricted stock units (in shares) | 938,000 | 2,674,000 | 4,764,000 | ||||||||
Weighted-average number of shares outstanding, diluted | 251,600,000 | 252,400,000 | 252,000,000 | 251,500,000 | 251,500,000 | 251,000,000 | 251,500,000 | 251,200,000 | 251,155,000 | 250,923,000 | 250,655,000 |
Basic earnings per common share (in dollars per share) | $ 1.51 | $ 2.48 | $ 0.06 | $ 1.41 | $ 1.48 | $ 1 | $ 1.19 | $ 1.76 | $ 5.48 | $ 5.43 | $ 4.72 |
Diluted earnings per common share (in dollars per share) | $ 1.51 | $ 2.46 | $ 0.06 | $ 1.40 | $ 1.47 | $ 0.99 | $ 1.17 | $ 1.74 | 5.46 | 5.37 | 4.63 |
Dividends declared per share of common stock (in dollars per share) | $ 3.02 | $ 2.80 | $ 2.64 |
SEMPRA ENERGY - SHAREHOLDERS114
SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE - ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EPS (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from the computation of EPS | 0 | 722 | 4,087 |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from the computation of EPS | 0 | 0 | 0 |
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from the computation of EPS | 0 | 0 | 0 |
SEMPRA ENERGY - SHAREHOLDERS115
SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE - COMMON STOCK ACTIVITY (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Common stock, shares authorized | 750,000,000 | 750,000,000 | |
Common stock par value (in dollars per share) | $ 0 | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common shares outstanding, January 1 | 248,298,080 | 246,330,884 | 244,461,327 |
Restricted stock units vesting | 1,363,555 | 1,499,062 | 989,027 |
Stock options exercised | 167,742 | 227,815 | 699,783 |
Savings plan issuance | 653,607 | 652,631 | 398,042 |
Common stock investment plan | 266,056 | 249,665 | 205,203 |
Shares repurchased | 596,526 | 661,977 | 422,498 |
Common shares outstanding, December 31 | 250,152,514 | 248,298,080 | 246,330,884 |
SAN ONOFRE NUCLEAR GENERATIN116
SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) - NARRATIVE (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | 48 Months Ended | ||||
Dec. 31, 2016 | Apr. 30, 2016 | Oct. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2016 | |
Jointly Owned Utility Plant Interests [Line Items] | ||||||||
Nuclear plant closure regulatory asset, noncurrent | $ 3,414 | $ 3,273 | $ 3,414 | $ 3,414 | ||||
Nuclear decommissioning trusts | 1,026 | 1,063 | 1,026 | 1,026 | ||||
San Onofre Nuclear Generating Station (SONGS) [Member] | ||||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||||
Insurance recovery | $ 400 | |||||||
Current authorized annual recovery amount from nuclear decommissioning trust funding | $ 4,400 | |||||||
San Diego Gas and Electric Company [Member] | ||||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||||
Nuclear plant closure regulatory asset, current | 81 | 107 | 81 | 81 | ||||
Nuclear plant closure regulatory asset, noncurrent | 998 | 977 | 998 | 998 | ||||
Nuclear decommissioning trusts | 1,026 | 1,063 | 1,026 | 1,026 | ||||
Requested withdrawal from nuclear decommissioning trust funds | 84 | |||||||
Decommissioning liability | 637 | 637 | 637 | |||||
Cost study estimate decommissioning escalated | $ 989 | 989 | $ 989 | |||||
San Diego Gas and Electric Company [Member] | Year 2013 through 2016 forecasted [Member] | ||||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||||
Current authorized annual recovery amount from nuclear decommissioning trust funding | 218 | |||||||
Amount pending regulatory clarification | $ 37 | |||||||
San Diego Gas and Electric Company [Member] | San Onofre Nuclear Generating Station (SONGS) [Member] | ||||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||||
Ownership percentage | 20.00% | 20.00% | 20.00% | |||||
Portion of weighted average return on preferred stock included in nuclear plant return on ratebase | 50.00% | 50.00% | 50.00% | |||||
Return on ratebase | 2.35% | |||||||
Loss from plant closure, after tax (cumulative) | $ 125 | |||||||
Plant closure (adjustment) loss, after tax | $ 2 | $ 13 | $ 21 | |||||
Plant closure (adjustment) loss after settlement, after tax | $ 12 | |||||||
Insurance recovery | $ 80 | |||||||
Recovery allocation percentage | 5.00% | |||||||
Current authorized annual recovery amount from nuclear decommissioning trust funding | $ 899 | |||||||
San Diego Gas and Electric Company [Member] | San Onofre Nuclear Generating Station (SONGS) [Member] | Nuclear Plant Closure [Member] | ||||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||||
Nuclear plant closure regulatory asset | $ 183 | $ 183 | 183 | |||||
Nuclear plant closure regulatory asset, current | 31 | 31 | 31 | |||||
Nuclear plant closure regulatory asset, noncurrent | $ 152 | $ 152 | $ 152 | |||||
Ratepayers [Member] | San Onofre Nuclear Generating Station (SONGS) [Member] | ||||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||||
Amount funded to customers through Energy Resource Recovery Account | $ 75 |
SAN ONOFRE NUCLEAR GENERATIN117
SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) - NUCLEAR DECOMMISSIONING TRUSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | $ 658 | $ 660 | |
Gross unrealized gains | 372 | 423 | |
Gross unrealized losses | (4) | (20) | |
Estimated fair value | 1,026 | 1,063 | |
Proceeds from sales | 1,134 | 577 | $ 601 |
Gross realized gains | 111 | 29 | 11 |
Gross realized losses | (29) | (15) | $ (11) |
Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 396 | 431 | |
Gross unrealized gains | 6 | 11 | |
Gross unrealized losses | (3) | (13) | |
Estimated fair value | 399 | 429 | |
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 52 | 89 | |
Gross unrealized gains | 0 | 2 | |
Gross unrealized losses | 0 | 0 | |
Estimated fair value | 52 | 91 | |
Municipal bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 203 | 148 | |
Gross unrealized gains | 4 | 8 | |
Gross unrealized losses | (1) | 0 | |
Estimated fair value | 206 | 156 | |
Other securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 141 | 194 | |
Gross unrealized gains | 2 | 1 | |
Gross unrealized losses | (2) | (13) | |
Estimated fair value | 141 | 182 | |
Equity securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 143 | 214 | |
Gross unrealized gains | 366 | 412 | |
Gross unrealized losses | (1) | (7) | |
Estimated fair value | 508 | 619 | |
Cash and cash equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 119 | 15 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Estimated fair value | $ 119 | $ 15 |
REGULATORY MATTERS - REGULATORY
REGULATORY MATTERS - REGULATORY BALANCING ACCOUNTS (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Regulatory Balancing Accounts [Line Items] | ||
Overcollected | $ (804) | $ (789) |
Undercollected | 941 | 1,062 |
Net current receivable (payable) | 137 | 273 |
Undercollected | 85 | 215 |
Net noncurrent receivable (payable) | 85 | 215 |
Total net receviable (payable) | 222 | 488 |
San Diego Gas and Electric Company [Member] | ||
Regulatory Balancing Accounts [Line Items] | ||
Overcollected | (301) | (345) |
Undercollected | 560 | 652 |
Net current receivable (payable) | 259 | 307 |
Undercollected | 0 | 0 |
Net noncurrent receivable (payable) | 0 | 0 |
Total net receviable (payable) | 259 | 307 |
Southern California Gas Company [Member] | ||
Regulatory Balancing Accounts [Line Items] | ||
Overcollected | (503) | (444) |
Undercollected | 381 | 410 |
Net current receivable (payable) | (122) | (34) |
Undercollected | 85 | 215 |
Net noncurrent receivable (payable) | 85 | 215 |
Total net receviable (payable) | $ (37) | $ 181 |
REGULATORY MATTERS - REGULAT119
REGULATORY MATTERS - REGULATORY ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Current regulatory assets | $ 89 | $ 115 | |
Noncurrent regulatory assets | 3,329 | 3,058 | |
Current regulatory liabilities | 0 | (2) | |
Noncurrent regulatory liabilities | (2,876) | (2,865) | |
Total net regulatory assets and (liabilities) | 542 | 306 | |
Long-term undercollected balancing accounts excluded | 85 | 215 | |
Regulatory liabilities in deferred credits and other | 179 | 72 | |
Amortization expense on regulatory assets | 65 | 62 | $ 20 |
Net Regulatory Assets (Liabilities) Other [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 71 | 26 | |
Net Regulatory Assets (Liabilities) Sempra Energy Consolidated [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 542 | 306 | |
Sempra LNG and Midstream [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 0 | (7) | |
Sempra Mexico [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 71 | 33 | |
Southern California Gas Company [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Current regulatory assets | 8 | 7 | |
Noncurrent regulatory assets | 1,246 | 1,120 | |
Current regulatory liabilities | 0 | 0 | |
Noncurrent regulatory liabilities | (1,151) | (1,216) | |
Total net regulatory assets and (liabilities) | 103 | (89) | |
Regulatory liabilities in deferred credits and other | 179 | 71 | |
Amortization expense on regulatory assets | 2 | 2 | 2 |
Southern California Gas Company [Member] | Deferred Income Tax Charge [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 417 | 330 | |
Southern California Gas Company [Member] | Pension And Other Postretirement Benefit Obligations [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 563 | 629 | |
Southern California Gas Company [Member] | Employee Benefit Costs [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 45 | 51 | |
Southern California Gas Company [Member] | Asset Retirement Obligation Costs [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | (972) | (1,145) | |
Southern California Gas Company [Member] | Loss on Reacquired Debt [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | $ 10 | 11 | |
Southern California Gas Company [Member] | Loss on Reacquired Debt [Member] | Maximum [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Remaining amortization period | 9 years | ||
Southern California Gas Company [Member] | Loss on Reacquired Debt [Member] | Minimum [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Remaining amortization period | 5 years | ||
Southern California Gas Company [Member] | Environmental Restoration Costs [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | $ 22 | 22 | |
Southern California Gas Company [Member] | Workers Compensation Costs [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 10 | 13 | |
Southern California Gas Company [Member] | Other [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 8 | 0 | |
Southern California Gas Company [Member] | Net Regulatory Assets (Liabilities) So Cal Gas [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 103 | (89) | |
San Diego Gas and Electric Company [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Current regulatory assets | 81 | 107 | |
Noncurrent regulatory assets | 2,012 | 1,891 | |
Current regulatory liabilities | 0 | 0 | |
Noncurrent regulatory liabilities | (1,725) | (1,629) | |
Total net regulatory assets and (liabilities) | 368 | 369 | |
Amortization expense on regulatory assets | 63 | 60 | $ 18 |
San Diego Gas and Electric Company [Member] | Fixed Price Contracts And Other Derivatives [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 141 | 99 | |
San Diego Gas and Electric Company [Member] | Costs related to SONGS plant closure [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 183 | 257 | |
San Diego Gas and Electric Company [Member] | Wildfire Litigation Costs [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 353 | 362 | |
San Diego Gas and Electric Company [Member] | Deferred Income Tax Charge [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 1,014 | 914 | |
San Diego Gas and Electric Company [Member] | Pension And Other Postretirement Benefit Obligations [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | 210 | 180 | |
San Diego Gas and Electric Company [Member] | Asset Retirement Obligation Costs [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | (1,725) | (1,629) | |
San Diego Gas and Electric Company [Member] | Loss on Reacquired Debt [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | $ 12 | 12 | |
San Diego Gas and Electric Company [Member] | Loss on Reacquired Debt [Member] | Maximum [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Remaining amortization period | 11 years | ||
San Diego Gas and Electric Company [Member] | Loss on Reacquired Debt [Member] | Minimum [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Remaining amortization period | 1 year | ||
San Diego Gas and Electric Company [Member] | Environmental Restoration Costs [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | $ 48 | 16 | |
San Diego Gas and Electric Company [Member] | Legacy Meters [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | $ 16 | 32 | |
Remaining amortization period | 1-year | ||
San Diego Gas and Electric Company [Member] | Sunrise Powerlink Fire Mitigation [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | $ 118 | 117 | |
Remaining amortization period | 53-year | ||
San Diego Gas and Electric Company [Member] | Other Utility Costs [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | $ (2) | 9 | |
San Diego Gas and Electric Company [Member] | Net Regulatory Assets (Liabilities) S D G E [Member] | |||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | |||
Net regulatory assets (liabilities) | $ 368 | $ 369 |
REGULATORY MATTERS - GENERAL RA
REGULATORY MATTERS - GENERAL RATE CASE (Details) - USD ($) $ in Millions | Oct. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Sep. 30, 2016 |
Southern California Gas Company [Member] | |||||
General Rate Case [Line Items] | |||||
Adjustment To Revenue, Refund Of Tax Memorandum Account, Pre-tax | $ 72 | ||||
Adjustment To Revenue, Refund Of Tax Memorandum Account, Net of Tax | (43) | ||||
Adjustment To Revenue, Change in Tax Estimates, Pre-tax | (11) | ||||
Adjustment To Revenue, Change in Tax Estimates, Net of Tax | (6) | ||||
Adjustment To Revenue Related To Tax Repairs Deductions, Pre-tax | (83) | $ 27 | |||
Adjustment To Revenue Related To Tax Repairs Deductions, Net of Tax | (49) | 16 | |||
San Diego Gas and Electric Company [Member] | |||||
General Rate Case [Line Items] | |||||
Adjustment To Revenue, Refund Of Tax Memorandum Account, Pre-tax | 37 | ||||
Adjustment To Revenue, Refund Of Tax Memorandum Account, Net of Tax | (22) | ||||
Adjustment To Revenue, Change in Tax Estimates, Pre-tax | (15) | ||||
Adjustment To Revenue, Change in Tax Estimates, Net of Tax | (9) | ||||
Adjustment To Revenue Related To Tax Repairs Deductions, Pre-tax | (52) | 5 | |||
Adjustment To Revenue Related To Tax Repairs Deductions, Net of Tax | (31) | 3 | |||
Year 2016 [Member] | Southern California Gas Company [Member] | |||||
General Rate Case [Line Items] | |||||
General Rate Case, Revenue Requirement, Approved | $ 2,204 | ||||
General Rate Case Revenue Requirement, Balancing Account | 47 | ||||
General Rate Case, Rate Base Adjustment | 38 | ||||
General Rate Case, Revenue Requirement Adjustment | 5 | ||||
Income Tax Examination, Increase (Decrease) in Liability from Prior Year | $ (19) | ||||
Year 2016 [Member] | San Diego Gas and Electric Company [Member] | |||||
General Rate Case [Line Items] | |||||
General Rate Case, Revenue Requirement, Approved | 1,791 | ||||
General Rate Case Revenue Requirement, Balancing Account | 20 | ||||
General Rate Case, Rate Base Adjustment | 55 | ||||
General Rate Case, Revenue Requirement Adjustment | $ 7 | ||||
Income Tax Examination, Increase (Decrease) in Liability from Prior Year | $ (5) | ||||
Years 2017 and 2018 [Member] | Southern California Gas Company [Member] | |||||
General Rate Case [Line Items] | |||||
General Rate Case, Revenue Requirement, Approved Percentage Increase Decrease Annual Escalation | 3.50% | ||||
Z Factor Mechanism, Deductible Per Event | $ 5 | ||||
Years 2012 through 2014 [Member] | Southern California Gas Company [Member] | |||||
General Rate Case [Line Items] | |||||
Regulatory Liability | 11 | 11 | |||
Years 2012 through 2014 [Member] | San Diego Gas and Electric Company [Member] | |||||
General Rate Case [Line Items] | |||||
Regulatory Liability | $ 15 | $ 15 | |||
Year 2015 [Member] | Southern California Gas Company [Member] | |||||
General Rate Case [Line Items] | |||||
Public Utilities, Requested Rate Increase (Decrease), Amended, Amount | $ 32 | ||||
Year 2015 [Member] | San Diego Gas and Electric Company [Member] | |||||
General Rate Case [Line Items] | |||||
Public Utilities, Requested Rate Increase (Decrease), Amended, Amount | $ 53 |
REGULATORY MATTERS - COST OF CA
REGULATORY MATTERS - COST OF CAPITAL & FERC RATES (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | 24 Months Ended |
Apr. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2019 | |
Southern California Gas Company [Member] | California Public Utilities Commission [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Cost Of Capital Benchmark Rate | 4.24% | ||
Cost Of Capital Floor Rate | 3.24% | ||
Cost Of Capital Ceiling Rate | 5.24% | ||
Cost Of Capital Average Benchmark Rate | 4.01% | ||
Cost Of Capital Authorized Weighting | 100.00% | ||
Cost Of Capital Authorized Return On Rate Base | 8.02% | ||
Southern California Gas Company [Member] | Scenario, Forecast [Member] | California Public Utilities Commission [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Cost Of Capital Potential Reduced Return On Equity | 10.05% | ||
Southern California Gas Company [Member] | Capital Structure, Long Term Debt [Member] | California Public Utilities Commission [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Cost Of Capital Authorized Weighting | 45.60% | ||
Cost Of Capital Authorized Rate Of Recovery | 5.77% | ||
Cost Of Capital Weighted Authorized Return On Rate Base | 2.63% | ||
Southern California Gas Company [Member] | Capital Structure, Preferred Stock [Member] | California Public Utilities Commission [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Cost Of Capital Authorized Weighting | 2.40% | ||
Cost Of Capital Authorized Rate Of Recovery | 6.00% | ||
Cost Of Capital Weighted Authorized Return On Rate Base | 0.14% | ||
Southern California Gas Company [Member] | Capital Structure, Common Equity [Member] | California Public Utilities Commission [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Cost Of Capital Authorized Weighting | 52.00% | ||
Cost Of Capital Authorized Rate Of Recovery | 10.10% | ||
Cost Of Capital Weighted Authorized Return On Rate Base | 5.25% | ||
San Diego Gas and Electric Company [Member] | California Public Utilities Commission [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Cost Of Capital Benchmark Rate | 4.24% | ||
Cost Of Capital Floor Rate | 3.24% | ||
Cost Of Capital Ceiling Rate | 5.24% | ||
Cost Of Capital Average Benchmark Rate | 4.01% | ||
Cost Of Capital Authorized Weighting | 100.00% | ||
Cost Of Capital Authorized Return On Rate Base | 7.79% | ||
San Diego Gas and Electric Company [Member] | Federal Energy Regulatory Commission [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Cost Of Capital Estimated Weighting | 100.00% | ||
Cost Of Capital Weighted Estimated Return On Rate Base | 7.51% | ||
Recovery Of Wildfire Damage Expenses Awarded In FERC Decision | $ 23 | ||
San Diego Gas and Electric Company [Member] | Scenario, Forecast [Member] | California Public Utilities Commission [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Cost Of Capital Potential Reduced Return On Equity | 10.20% | ||
San Diego Gas and Electric Company [Member] | Capital Structure, Long Term Debt [Member] | California Public Utilities Commission [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Cost Of Capital Authorized Weighting | 45.25% | ||
Cost Of Capital Authorized Rate Of Recovery | 5.00% | ||
Cost Of Capital Weighted Authorized Return On Rate Base | 2.26% | ||
San Diego Gas and Electric Company [Member] | Capital Structure, Long Term Debt [Member] | Federal Energy Regulatory Commission [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Cost Of Capital Estimated Weighting | 43.48% | ||
Cost Of Capital Estimated Rate Of Recovery | 4.21% | ||
Cost Of Capital Weighted Estimated Return On Rate Base | 1.83% | ||
San Diego Gas and Electric Company [Member] | Capital Structure, Preferred Stock [Member] | California Public Utilities Commission [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Cost Of Capital Authorized Weighting | 2.75% | ||
Cost Of Capital Authorized Rate Of Recovery | 6.22% | ||
Cost Of Capital Weighted Authorized Return On Rate Base | 0.17% | ||
San Diego Gas and Electric Company [Member] | Capital Structure, Common Equity [Member] | California Public Utilities Commission [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Cost Of Capital Authorized Weighting | 52.00% | ||
Cost Of Capital Authorized Rate Of Recovery | 10.30% | ||
Cost Of Capital Weighted Authorized Return On Rate Base | 5.36% | ||
San Diego Gas and Electric Company [Member] | Capital Structure, Common Equity [Member] | Federal Energy Regulatory Commission [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Authorized Return On Equity | 10.05% | ||
Cost Of Capital Estimated Weighting | 56.52% | ||
Cost Of Capital Weighted Estimated Return On Rate Base | 5.68% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - OPERATING LEASES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leases, Rent Expense, Net [Abstract] | |||
Operating Leases, Rent Expense | $ 77 | $ 78 | $ 78 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 78 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 69 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 61 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 54 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 49 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 306 | ||
Operating Leases, Future Minimum Payments Due, Total | $ 617 | ||
Operating Leases, Annual Rent Escalation [Abstract] | |||
Operating Leases, Annual Rent Escalation, Range, Minimum | 2.00% | ||
Operating Leases, Annual Rent Escalation, Range, Maximum | 5.00% | ||
Utility Subsidiaries [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating Leases, Aggregate Maximum Lease Limit | $ 150 | ||
Operating Leases, Lease Limit Utilized | 125 | ||
San Diego Gas and Electric Company [Member] | |||
Operating Leases, Rent Expense, Net [Abstract] | |||
Operating Leases, Rent Expense | 28 | 27 | 26 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 27 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 23 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 22 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 20 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 19 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 71 | ||
Operating Leases, Future Minimum Payments Due, Total | $ 182 | ||
Operating Leases, Annual Rent Escalation [Abstract] | |||
Operating Leases, Annual Rent Escalation, Range, Minimum | 2.00% | ||
Operating Leases, Annual Rent Escalation, Range, Maximum | 5.00% | ||
Southern California Gas Company [Member] | |||
Operating Leases, Rent Expense, Net [Abstract] | |||
Operating Leases, Rent Expense | $ 38 | $ 39 | $ 38 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 42 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 38 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 32 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 27 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 25 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 134 | ||
Operating Leases, Future Minimum Payments Due, Total | $ 298 | ||
Operating Leases, Annual Rent Escalation [Abstract] | |||
Operating Leases, Annual Rent Escalation, Range, Minimum | 2.00% | ||
Operating Leases, Annual Rent Escalation, Range, Maximum | 5.00% |
COMMITMENTS AND CONTINGENCIE123
COMMITMENTS AND CONTINGENCIES - CAPITAL LEASES (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2017MW | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
HQ Build To Suit Lease [Member] | ||||
Capital Lease Obligations [Abstract] | ||||
Capital Lease Term (Years) | 25 | |||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2,017 | $ 10 | |||
2,018 | 10 | |||
2,019 | 10 | |||
2,020 | 11 | |||
2,021 | 11 | |||
Thereafter | 245 | |||
Total minimum payments | 297 | |||
Present value of net minimum lease payments | 137 | |||
Utility Fleet Leases [Member] | ||||
Capital Leases, Income Statement of Lessee [Abstract] | ||||
Capital Leases, Income Statement, Depreciation Expense | 2 | $ 4 | $ 4 | |
Power Purchase Agreements [Member] | ||||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2,017 | 77 | |||
2,018 | 104 | |||
2,019 | 104 | |||
2,020 | 104 | |||
2,021 | 104 | |||
Thereafter | 1,806 | |||
Total minimum payments | 2,299 | |||
Less: estimated executory costs | (517) | |||
Less: interest | (1,043) | |||
Present value of net minimum lease payments | 739 | |||
Capital Leases, Current portion | 8 | |||
Capital leases, Noncurrent portion | 231 | |||
Fleet And Other Capital Leases [Member] | ||||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2,017 | 2 | |||
2,018 | 2 | |||
2,019 | 1 | |||
Thereafter | 8 | |||
Present value of net minimum lease payments | 6 | |||
San Diego Gas and Electric Company [Member] | ||||
Capital Lease Obligations [Abstract] | ||||
Capital lease obligations | 240 | 244 | ||
San Diego Gas and Electric Company [Member] | Utility Fleet Leases [Member] | ||||
Capital Leases, Income Statement of Lessee [Abstract] | ||||
Capital Leases, Income Statement, Depreciation Expense | 1 | 2 | 2 | |
San Diego Gas and Electric Company [Member] | Power Purchase Agreements [Member] | ||||
Capital Lease Obligations [Abstract] | ||||
Capital lease obligations | $ 239 | |||
Capital Lease Term (Years) | 25 | |||
Capital Leases, Income Statement of Lessee [Abstract] | ||||
Capital Leases, Income Statement, Depreciation Expense | $ 4 | 4 | 3 | |
Leases, Capital [Abstract] | ||||
Number Of Power Purchase Agreements With Peaker Facilities, Capital Leases | 4 | |||
Number Of Power Purchase Agreements With Peaker Facilities In Commercial Operation In 2015 | 1 | |||
San Diego Gas and Electric Company [Member] | Pending Power Purchase Agreement With Peaker Facilities, Capital Lease [Member] | ||||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
Present value of net minimum lease payments | $ 500 | |||
San Diego Gas and Electric Company [Member] | Purchase Power Agreements With 25 Year Term [Member] | ||||
Capital Lease Obligations [Abstract] | ||||
Capital Lease Term (Years) | 25 | |||
San Diego Gas and Electric Company [Member] | Purchase Power Agreements With 9 Year Term [Member] | ||||
Capital Lease Obligations [Abstract] | ||||
Capital Lease Term (Years) | 9 | |||
Southern California Gas Company [Member] | ||||
Capital Lease Obligations [Abstract] | ||||
Capital lease obligations | $ 0 | 1 | ||
Southern California Gas Company [Member] | Utility Fleet Leases [Member] | ||||
Capital Leases, Income Statement of Lessee [Abstract] | ||||
Capital Leases, Income Statement, Depreciation Expense | $ 1 | $ 2 | $ 2 | |
Subsequent Event [Member] | Intermediate Stage Power Plant Facility [Member] | San Diego Gas and Electric Company [Member] | ||||
Capital Leases, Income Statement of Lessee [Abstract] | ||||
Power purchase agreement term | 20 years | |||
Generating capacity (in mw) | MW | 500 |
COMMITMENTS AND CONTINGENCIE124
COMMITMENTS AND CONTINGENCIES - LOSS ON CONTINGENCIES (Details) € in Millions, £ in Millions | Feb. 27, 2017plaintifflawsuit | Mar. 31, 2016t | Feb. 28, 2017USD ($) | Jan. 31, 2017USD ($)lawsuit | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)Bcfappeal | Dec. 31, 2015EUR (€) | Oct. 21, 2016t | Dec. 31, 2015USD ($) | Oct. 01, 2014GBP (£) |
Loss Contingencies [Line Items] | ||||||||||
Loss Contingency Accrual | $ 19,000,000 | |||||||||
Reserve for Aliso Canyon costs | 53,000,000 | $ 274,000,000 | ||||||||
San Diego Gas and Electric Company [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss Contingency Accrual | 16,000,000 | |||||||||
Southern California Gas Company [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss Contingency Accrual | 1,000,000 | |||||||||
Reserve for Aliso Canyon costs | 53,000,000 | $ 274,000,000 | ||||||||
Loss from Catastrophes, 2007 Wildfire [Member] | San Diego Gas and Electric Company [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Regulatory Assets | 353,000,000 | |||||||||
Portion of Regulatory Assets Arising From Wildfire Litigation Related To CPUC-Regulated Operations | 352,000,000 | |||||||||
Portion of Regulatory Assets Arising From Wildfire Litigation Related To FERC-Regulated Operations | 1,000,000 | |||||||||
Potential After-Tax Earnings Impact | $ 208,000,000 | |||||||||
Number of Appeals Pending | appeal | 2 | |||||||||
Rim Rock Wind Farm [Member] | San Diego Gas and Electric Company [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Litigation Settlement Amount, Settlement Agreement | $ 39,000,000 | |||||||||
Estimated Tax Equity Investment | 285,000,000 | |||||||||
Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss Contingency Accrual | 1,000,000 | |||||||||
Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Southern California Gas Company [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss Contingency Accrual | 1,000,000 | |||||||||
Net Book Value Of Aliso Canyon Natural Gas Storage Facility | 531,000,000 | |||||||||
Construction in Work Progress Of Aliso Canyon Natural Gas Storage Facility | 217,000,000 | |||||||||
Recorded Estimated Costs | $ 780,000,000 | |||||||||
Estimated Costs Related To Temporary Relocation Percentage | 70.00% | |||||||||
Estimated Costs Related To Controlling Well And Stopping Leak And Emissions Percentage | 20.00% | |||||||||
Insurance receivable for Aliso Canyon costs | $ 606,000,000 | |||||||||
Proceeds from Insurance Settlement, Operating Activities | 169,000,000 | |||||||||
Reserve for Aliso Canyon costs | $ 53,000,000 | |||||||||
Storage Facility Maximum Capacity | Bcf | 86 | |||||||||
Aliso Canyon Facility As A Percentage of SoCalGas Total Storage Capacity | 63.00% | |||||||||
Amount of Natural Gas Released | Bcf | 4.62 | |||||||||
Loss Contingency, Period Of Required Climate Reductions | 20 years | |||||||||
Loss Contingency, Period Of Required Regulatory Climate Reductions | 100 years | |||||||||
Loss Contingency, Target Emissions Level | t | 9,000,000 | |||||||||
Loss Contingency, Total Actual Emissions, Floor | t | 90,350 | |||||||||
Loss Contingency, Total Actual Emissions, Ceiling | t | 108,950 | |||||||||
Loss Contingency, Mitigation Requirement | t | 109,000 | |||||||||
Damages from Product Defects [Member] | Southern California Gas Company [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Maximum Occupational Safety And Health Fines | $ 75,000 | |||||||||
Penalty Assessments | 233,500 | |||||||||
Maximum Other Assessments | $ 4,000,000 | |||||||||
So Cal Gas PCB Litigation [Member] | Southern California Gas Company [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of lawsuits | 7 | |||||||||
Sempra Mexico Property Disputes [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of lawsuits | 2 | |||||||||
HMRC VAT Claim [Member] | Parent Company [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
VAT Tax Claim Paid Upon Appeal | £ | £ 86 | |||||||||
R B S Sempra Commodities [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought | € | € 146 | |||||||||
Investment in RBS Sempra Commodities LLP | $ 67,000,000 | |||||||||
Subsequent Event [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Southern California Gas Company [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number Of Plaintiffs | plaintiff | 14,000 | |||||||||
Number of lawsuits | lawsuit | 250 | |||||||||
Minimum [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Southern California Gas Company [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Liability insurance coverage | 1,200,000,000 | |||||||||
Loss Contingency, Environmental Mitigation Period | 5 years | |||||||||
Maximum [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Southern California Gas Company [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Liability insurance coverage | $ 1,400,000,000 | |||||||||
Loss Contingency, Environmental Mitigation Period | 10 years | |||||||||
Consolidated Class Action Complaints [Member] | Subsequent Event [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of lawsuits | lawsuit | 2 | |||||||||
Property Class Action [Member] | Subsequent Event [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of lawsuits | lawsuit | 1 | |||||||||
Complaints Filed by Public Entities [Member] | Subsequent Event [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Litigation Settlement Amount, Settlement Agreement | $ 8,500,000 | |||||||||
Damages sought | $ 250,000 | |||||||||
Number of lawsuits | lawsuit | 3 | |||||||||
Complaints Filed by Public Entities [Member] | Subsequent Event [Member] | Health Study [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Litigation Settlement Amount, Settlement Agreement | $ 1,000,000 |
COMMITMENTS AND CONTINGENCIE125
COMMITMENTS AND CONTINGENCIES - LONG-TERM PURCHASE COMMITMENT (Details) | 1 Months Ended | 12 Months Ended | |||
May 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2011USD ($)MMcf | |
Sempra LNG & Midstream [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
Equity Method Investment, Realized Gain (Loss) on Released Pipeline Capacity | $ 206,000,000 | ||||
Equity Method Investment, Realized Gain (Loss) on Released Pipeline Capacity, Net of Tax | $ 123,000,000 | ||||
Natural Gas Contracts [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | $ 388,000,000 | ||||
2,018 | 297,000,000 | ||||
2,019 | 139,000,000 | ||||
2,020 | 42,000,000 | ||||
2,021 | 42,000,000 | ||||
Thereafter | 144,000,000 | ||||
Total Contractual Commitments | 1,052,000,000 | ||||
Unrecorded Unconditional Purchase Obligation, Purchases | 1,169,000,000 | $ 1,200,000,000 | $ 1,984,000,000 | ||
Natural Gas Contracts [Member] | SoCalGas [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 139,000,000 | ||||
2,018 | 105,000,000 | ||||
2,019 | 53,000,000 | ||||
2,020 | 23,000,000 | ||||
2,021 | 23,000,000 | ||||
Thereafter | 82,000,000 | ||||
Total Contractual Commitments | 425,000,000 | ||||
Unrecorded Unconditional Purchase Obligation, Purchases | 966,000,000 | 975,000,000 | 1,735,000,000 | ||
Natural Gas Transportation Contracts [Member] | SoCalGas [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 123,000,000 | ||||
2,018 | 104,000,000 | ||||
2,019 | 52,000,000 | ||||
2,020 | 23,000,000 | ||||
2,021 | 23,000,000 | ||||
Thereafter | 82,000,000 | ||||
Total Contractual Commitments | 407,000,000 | ||||
Natural Gas Supply Contracts [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 148,000,000 | ||||
2,018 | 84,000,000 | ||||
2,019 | 1,000,000 | ||||
2,020 | 0 | ||||
2,021 | 0 | ||||
Thereafter | 0 | ||||
Total Contractual Commitments | 233,000,000 | ||||
Natural Gas Supply Contracts [Member] | SoCalGas [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 16,000,000 | ||||
2,018 | 1,000,000 | ||||
2,019 | 1,000,000 | ||||
2,020 | 0 | ||||
2,021 | 0 | ||||
Thereafter | 0 | ||||
Total Contractual Commitments | 18,000,000 | ||||
Natural Gas Storage and Transportation Contracts [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 240,000,000 | ||||
2,018 | 213,000,000 | ||||
2,019 | 138,000,000 | ||||
2,020 | 42,000,000 | ||||
2,021 | 42,000,000 | ||||
Thereafter | 144,000,000 | ||||
Total Contractual Commitments | 819,000,000 | ||||
Purchased Power Contracts [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 666,000,000 | ||||
2,018 | 672,000,000 | ||||
2,019 | 664,000,000 | ||||
2,020 | 606,000,000 | ||||
2,021 | 608,000,000 | ||||
Thereafter | 6,205,000,000 | ||||
Total Contractual Commitments | 9,421,000,000 | ||||
Unrecorded Unconditional Purchase Obligation, Purchases | 1,667,000,000 | 1,573,000,000 | 1,574,000,000 | ||
Purchased Power Contracts [Member] | SDG&E [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 563,000,000 | ||||
2,018 | 556,000,000 | ||||
2,019 | 546,000,000 | ||||
2,020 | 487,000,000 | ||||
2,021 | 487,000,000 | ||||
Thereafter | 5,865,000,000 | ||||
Total Contractual Commitments | 8,504,000,000 | ||||
Unrecorded Unconditional Purchase Obligation, Purchases | $ 752,000,000 | $ 715,000,000 | $ 710,000,000 | ||
Sunrise Powerlink Construction [Member] | SDG&E [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
Contractual Commitment Annual Escalation Percentage | 2.00% | ||||
Contractual Commitment Future Annual Payment Amount | $ 3,000,000 | ||||
Contractual commitment period | 53 years | ||||
Contractual Commitment Present Value Future Payments, Regulatory Asset | $ 118,000,000 | ||||
Contractual Commitment Future Payments, Liability | 118,000,000 | ||||
Continental Forge [Member] | Sempra LNG and Midstream [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
Contractual commitment period | 18 years | ||||
Amount of Natural Gas to be Sold | MMcf | 500 | ||||
Reduction in price index | $ 0.02 | ||||
Liquefied Natural Gas Contracts [Member] | Sempra LNG and Midstream [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 446,000,000 | ||||
2,018 | 459,000,000 | ||||
2,019 | 416,000,000 | ||||
2,020 | 423,000,000 | ||||
2,021 | 434,000,000 | ||||
Thereafter | 4,004,000,000 | ||||
Total Contractual Commitments | 6,182,000,000 | ||||
Nuclear Plant Maintenance [Member] | San Diego Gas and Electric Company [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
Long-term Purchase Commitment, Amount | 14,000,000 | ||||
Infrastructure Construction And Improvements [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 398,000,000 | ||||
2,018 | 73,000,000 | ||||
2,019 | 44,000,000 | ||||
2,020 | 39,000,000 | ||||
2,021 | 28,000,000 | ||||
Thereafter | 245,000,000 | ||||
Long-term Purchase Commitment, Amount | 827,000,000 | ||||
Infrastructure Construction And Improvements [Member] | SDG&E [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 59,000,000 | ||||
2,018 | 44,000,000 | ||||
2,019 | 17,000,000 | ||||
2,020 | 12,000,000 | ||||
2,021 | 3,000,000 | ||||
Thereafter | 8,000,000 | ||||
Long-term Purchase Commitment, Amount | 143,000,000 | ||||
Infrastructure Construction And Improvements [Member] | Sempra South American Utilities [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 21,000,000 | ||||
Infrastructure Construction And Improvements [Member] | Southern California Gas Company [Member] | SoCalGas [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 3,000,000 | ||||
2,018 | 3,000,000 | ||||
2,019 | 3,000,000 | ||||
2,020 | 4,000,000 | ||||
Total Contractual Commitments | 13,000,000 | ||||
Infrastructure Improvements For Natural Gas And Electric Transmission And Distribution [Member] | SDG&E [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
Long-term Purchase Commitment, Amount | $ 80,000,000 | ||||
Long-term Contracts [Member] | San Diego Gas and Electric Company [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
Purchase Commitment Component Percentage | 40.00% | ||||
Other Owned Generation [Member] | San Diego Gas and Electric Company [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
Purchase Commitment Component Percentage | 45.00% | ||||
Spot Market Purchases [Member] | San Diego Gas and Electric Company [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
Purchase Commitment Component Percentage | 15.00% | ||||
Renewable Energy Contracts Expiring Through 2041 [Member] | San Diego Gas and Electric Company [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
Purchase Commitment Component Percentage | 35.00% | ||||
Sempra Renewables Construction [Member] | Sempra Renewables [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | $ 166,000,000 | ||||
Sempra Natural Gas Construction [Member] | Sempra LNG and Midstream [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 14,000,000 | ||||
San Luis Rey Synchronous Condensor And Bay Boulevard Substation [Member] | SDG&E [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
Unrecorded Unconditional Purchase Obligation, Purchases | 49,000,000 | ||||
Pipelines [Member] | Sempra Mexico [Member] | |||||
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |||||
2,017 | 135,000,000 | ||||
2,018 | 26,000,000 | ||||
2,019 | 24,000,000 | ||||
2,020 | 23,000,000 | ||||
2,021 | 25,000,000 | ||||
Thereafter | 237,000,000 | ||||
Total Contractual Commitments | $ 470,000,000 |
COMMITMENTS AND CONTINGENCIE126
COMMITMENTS AND CONTINGENCIES - ENVIRONMENTAL ISSUES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Environmental Issues [Line Items] | |||
Environmental Costs Recognized, Capitalized in Period | $ 53 | $ 64 | $ 45 |
San Diego Gas and Electric Company [Member] | |||
Environmental Issues [Line Items] | |||
Environmental Costs Recognized, Capitalized in Period | 17 | 24 | 23 |
Southern California Gas Company [Member] | |||
Environmental Issues [Line Items] | |||
Environmental Costs Recognized, Capitalized in Period | $ 35 | $ 39 | $ 21 |
COMMITMENTS AND CONTINGENCIE127
COMMITMENTS AND CONTINGENCIES - SITE CONTINGENCY (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Site Contingency [Line Items] | |
Accrual for environmental loss contingencies | $ 28 |
Accrual for environmental loss contingencies, current | 8 |
Accrual for environmental loss contingencies, noncurrent | 20 |
Manufactured Gas Sites [Member] | |
Site Contingency [Line Items] | |
Accrual for environmental loss contingencies | 23 |
Waste Disposal Sites [Member] | |
Site Contingency [Line Items] | |
Accrual for environmental loss contingencies | 4 |
Former Fossil Fueled Power Plants [Member] | |
Site Contingency [Line Items] | |
Accrual for environmental loss contingencies | 1 |
San Diego Gas and Electric Company [Member] | |
Site Contingency [Line Items] | |
Accrual for environmental loss contingencies | 2 |
Accrual for environmental loss contingencies, current | 1 |
Accrual for environmental loss contingencies, noncurrent | 1 |
Estimated SONGS mitigation costs, recoverable in rates | 89 |
SONGS mitigation costs incurred | 43 |
SONGS mitigation costs remaining | $ 46 |
San Diego Gas and Electric Company [Member] | Manufactured Gas Sites [Member] | |
Site Contingency [Line Items] | |
Site Contingency, Sites Completed | 3 |
Site Contingency, Sites In Process | 0 |
Accrual for environmental loss contingencies | $ 0 |
San Diego Gas and Electric Company [Member] | Waste Disposal Sites [Member] | |
Site Contingency [Line Items] | |
Site Contingency, Sites Completed | 2 |
Site Contingency, Sites In Process | 1 |
Accrual for environmental loss contingencies | $ 1 |
San Diego Gas and Electric Company [Member] | Former Fossil Fueled Power Plants [Member] | |
Site Contingency [Line Items] | |
Accrual for environmental loss contingencies | 1 |
San Diego Gas and Electric Company [Member] | California Coastal Reef Expansion [Member] | |
Site Contingency [Line Items] | |
SONGS mitigation costs remaining | 7 |
Southern California Gas Company [Member] | |
Site Contingency [Line Items] | |
Accrual for environmental loss contingencies | 25 |
Accrual for environmental loss contingencies, current | 7 |
Accrual for environmental loss contingencies, noncurrent | $ 18 |
Southern California Gas Company [Member] | Manufactured Gas Sites [Member] | |
Site Contingency [Line Items] | |
Site Contingency, Sites Completed | 39 |
Site Contingency, Sites In Process | 3 |
Accrual for environmental loss contingencies | $ 23 |
Southern California Gas Company [Member] | Waste Disposal Sites [Member] | |
Site Contingency [Line Items] | |
Site Contingency, Sites Completed | 5 |
Site Contingency, Sites In Process | 2 |
Accrual for environmental loss contingencies | $ 2 |
Southern California Gas Company [Member] | Former Fossil Fueled Power Plants [Member] | |
Site Contingency [Line Items] | |
Accrual for environmental loss contingencies | 0 |
Other Sempra Energy [Member] | |
Site Contingency [Line Items] | |
Accrual for environmental loss contingencies | 1 |
Other Sempra Energy [Member] | Manufactured Gas Sites [Member] | |
Site Contingency [Line Items] | |
Accrual for environmental loss contingencies | 0 |
Other Sempra Energy [Member] | Waste Disposal Sites [Member] | |
Site Contingency [Line Items] | |
Accrual for environmental loss contingencies | 1 |
Other Sempra Energy [Member] | Former Fossil Fueled Power Plants [Member] | |
Site Contingency [Line Items] | |
Accrual for environmental loss contingencies | $ 0 |
COMMITMENTS AND CONTINGENCIE128
COMMITMENTS AND CONTINGENCIES - NUCLEAR INSURANCE (Details) - San Diego Gas and Electric Company [Member] $ in Thousands | Dec. 31, 2016USD ($) |
Schedule Of Nuclear Insurance [Line Items] | |
Nuclear Liability Insurance Coverage, Maximum | $ 375,000 |
Secondary Financial Protection, Maximum | 13,000,000 |
Secondary Financial Protection, Company Contribution, Maximum | 50,930 |
Secondary Financial Protection, Company Contribution, Annual Maximum | 7,600 |
Nuclear Property Insurance Coverage, Maximum | 2,750,000 |
Nuclear Property Damage Insurance, Premium Assessment | 10,400 |
Nuclear Property Insurance Terrorism Coverage, Maximum | 3,240,000 |
Nuclear Property Damage Insurance, Deductible Per Event | $ 2,500 |
COMMITMENTS AND CONTINGENCIE129
COMMITMENTS AND CONTINGENCIES - NUCLEAR FUEL DISPOSAL (Details) - USD ($) $ in Millions | Apr. 18, 2016 | Sep. 30, 2016 | May 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Nuclear Fuel Disposal [Line Items] | ||||||
Increase (Decrease) in Regulatory Assets and Liabilities | $ 3 | $ 4 | $ (8) | |||
Increase (Decrease) in Balancing Account, Utility | (198) | (586) | 317 | |||
San Diego Gas and Electric Company [Member] | ||||||
Nuclear Fuel Disposal [Line Items] | ||||||
Increase (Decrease) in Balancing Account, Utility | $ (35) | $ (474) | $ 208 | |||
Total Ownership [Member] | San Diego Gas and Electric Company [Member] | ||||||
Nuclear Fuel Disposal [Line Items] | ||||||
Loss Contingency, Damages Awarded, Value | $ 162 | |||||
Damages sought | $ 56 | |||||
San Onofre Nuclear Generating Station (SONGS) [Member] | San Diego Gas and Electric Company [Member] | ||||||
Nuclear Fuel Disposal [Line Items] | ||||||
Loss Contingency, Damages Awarded, Value | $ 32 | |||||
Damages sought | $ 11 | |||||
Increase (Decrease) in Regulatory Assets and Liabilities | (23) | |||||
Increase (Decrease) in Balancing Account, Utility | (8) | |||||
Increase Decrease In Operation And Maintenance Cost Balancing Account | $ (1) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of Reportable Segments | segment | 6 | ||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | $ 10,183 | $ 10,231 | $ 11,035 | ||||||||
Segment reporting information, Interest Expense | 553 | 561 | 554 | ||||||||
Segment reporting information, Interest Income | 26 | 29 | 22 | ||||||||
Segment reporting information, Depreciation and Amortization | 1,312 | 1,250 | 1,156 | ||||||||
Segment reporting information, Income Tax Expense (Benefit) | 389 | 341 | 300 | ||||||||
Earnings attributable to common shares | $ 379 | $ 622 | $ 16 | $ 353 | $ 369 | $ 248 | $ 295 | $ 437 | 1,370 | 1,349 | 1,161 |
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Segment reporting information, Assets | 47,786 | 41,150 | 47,786 | 41,150 | 39,651 | ||||||
Segment Reporting Information Expenditures For Property Plant and Equipment | 4,214 | 3,156 | 3,123 | ||||||||
Assets, geographical | 35,028 | 30,944 | 35,028 | 30,944 | 28,750 | ||||||
Entity-Wide Disclosure On Geographic Areas, United States [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | 8,004 | 8,119 | 8,774 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Assets, geographical | 28,351 | 26,132 | 28,351 | 26,132 | 24,183 | ||||||
Entity-Wide Disclosure On Geographic Areas, South America [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | 1,556 | 1,544 | 1,534 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Assets, geographical | 1,863 | 1,652 | 1,863 | 1,652 | 1,746 | ||||||
Entity-Wide Disclosure On Geographic Areas Mexico [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | 623 | 568 | 727 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Assets, geographical | 4,814 | 3,160 | 4,814 | 3,160 | 2,821 | ||||||
Operating Segments [Member] | SDG&E [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | 4,253 | 4,219 | 4,329 | ||||||||
Segment reporting information, Interest Expense | 195 | 204 | 202 | ||||||||
Segment reporting information, Depreciation and Amortization | 646 | 604 | 530 | ||||||||
Segment reporting information, Income Tax Expense (Benefit) | 280 | 284 | 270 | ||||||||
Earnings attributable to common shares | 570 | 587 | 507 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Segment reporting information, Assets | 17,719 | 16,515 | 17,719 | 16,515 | 16,260 | ||||||
Segment Reporting Information Expenditures For Property Plant and Equipment | 1,399 | 1,133 | 1,100 | ||||||||
Operating Segments [Member] | SoCalGas [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | 3,471 | 3,489 | 3,855 | ||||||||
Segment reporting information, Interest Expense | 97 | 84 | 69 | ||||||||
Segment reporting information, Interest Income | 1 | 4 | 0 | ||||||||
Segment reporting information, Depreciation and Amortization | 476 | 461 | 431 | ||||||||
Segment reporting information, Income Tax Expense (Benefit) | 143 | 138 | 139 | ||||||||
Earnings attributable to common shares | 349 | 419 | 332 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Segment reporting information, Assets | 13,424 | 12,104 | 13,424 | 12,104 | 10,446 | ||||||
Segment Reporting Information Expenditures For Property Plant and Equipment | 1,319 | 1,352 | 1,104 | ||||||||
Operating Segments [Member] | Sempra South American Utilities [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | 1,556 | 1,544 | 1,534 | ||||||||
Segment reporting information, Interest Expense | 38 | 32 | 33 | ||||||||
Segment reporting information, Interest Income | 21 | 19 | 14 | ||||||||
Segment reporting information, Depreciation and Amortization | 49 | 50 | 55 | ||||||||
Segment reporting information, Income Tax Expense (Benefit) | 80 | 67 | 58 | ||||||||
Earnings attributable to common shares | 156 | 175 | 172 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Segment reporting information, Assets | 3,591 | 3,235 | 3,591 | 3,235 | 3,379 | ||||||
Segment Reporting Information Expenditures For Property Plant and Equipment | 194 | 154 | 174 | ||||||||
Operating Segments [Member] | Sempra Mexico [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | 725 | 669 | 818 | ||||||||
Segment reporting information, Interest Expense | 13 | 23 | 17 | ||||||||
Segment reporting information, Interest Income | 6 | 7 | 4 | ||||||||
Segment reporting information, Depreciation and Amortization | 77 | 70 | 64 | ||||||||
Segment reporting information, Income Tax Expense (Benefit) | 188 | 11 | 5 | ||||||||
Earnings attributable to common shares | 463 | 213 | 192 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Segment reporting information, Assets | 7,542 | 3,783 | 7,542 | 3,783 | 3,486 | ||||||
Segment Reporting Information Expenditures For Property Plant and Equipment | 330 | 302 | 325 | ||||||||
Operating Segments [Member] | Sempra Renewables [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | 34 | 36 | 35 | ||||||||
Segment reporting information, Interest Expense | 4 | 3 | 5 | ||||||||
Segment reporting information, Interest Income | 5 | 4 | 1 | ||||||||
Segment reporting information, Depreciation and Amortization | 6 | 6 | 5 | ||||||||
Segment reporting information, Income Tax Expense (Benefit) | (38) | (49) | (44) | ||||||||
Earnings attributable to common shares | 55 | 63 | 81 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Segment reporting information, Assets | 3,644 | 1,441 | 3,644 | 1,441 | 1,334 | ||||||
Segment Reporting Information Expenditures For Property Plant and Equipment | 835 | 81 | 190 | ||||||||
Operating Segments [Member] | Sempra LNG and Midstream [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | 508 | 653 | 979 | ||||||||
Segment reporting information, Interest Expense | 43 | 72 | 111 | ||||||||
Segment reporting information, Interest Income | 71 | 75 | 115 | ||||||||
Segment reporting information, Depreciation and Amortization | 47 | 49 | 61 | ||||||||
Segment reporting information, Income Tax Expense (Benefit) | (80) | 28 | (20) | ||||||||
Earnings attributable to common shares | (107) | 44 | 50 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Segment reporting information, Assets | 5,564 | 5,566 | 5,564 | 5,566 | 6,435 | ||||||
Segment Reporting Information Expenditures For Property Plant and Equipment | 117 | 87 | 212 | ||||||||
Adjustment and Elimination [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | 0 | (2) | (3) | ||||||||
All Other [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Interest Expense | 282 | 263 | 241 | ||||||||
Segment reporting information, Interest Income | 0 | 0 | 1 | ||||||||
Segment reporting information, Depreciation and Amortization | 11 | 10 | 10 | ||||||||
Segment reporting information, Income Tax Expense (Benefit) | (184) | (138) | (108) | ||||||||
Earnings attributable to common shares | (116) | (152) | (173) | ||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Segment reporting information, Assets | 475 | 734 | 475 | 734 | 872 | ||||||
Segment Reporting Information Expenditures For Property Plant and Equipment | 20 | 47 | 18 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | (364) | (377) | (512) | ||||||||
Segment reporting information, Interest Expense | (119) | (120) | (124) | ||||||||
Segment reporting information, Interest Income | (78) | (80) | (113) | ||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Segment reporting information, Assets | $ (4,173) | $ (2,228) | (4,173) | (2,228) | (2,561) | ||||||
Intersegment Eliminations [Member] | SDG&E [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | 6 | 9 | 10 | ||||||||
Intersegment Eliminations [Member] | SoCalGas [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | 76 | 75 | 69 | ||||||||
Intersegment Eliminations [Member] | Sempra Mexico [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | 102 | 101 | 91 | ||||||||
Intersegment Eliminations [Member] | Sempra LNG and Midstream [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Segment reporting information, Revenue | $ 180 | $ 192 | $ 342 |
QUARTERLY FINANCIAL DATA (UN131
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Selected Quarterly Financial Information [Line Items] | |||||||||||
Quarterly Financial Data, Revenues | $ 2,870,000,000 | $ 2,535,000,000 | $ 2,156,000,000 | $ 2,622,000,000 | $ 2,701,000,000 | $ 2,481,000,000 | $ 2,367,000,000 | $ 2,682,000,000 | |||
Quarterly Financial Data, Expenses And Other Income | 2,365,000,000 | 1,553,000,000 | 2,268,000,000 | 2,167,000,000 | 2,269,000,000 | 2,211,000,000 | 1,971,000,000 | 2,076,000,000 | |||
Quarterly Financial Data, Net Income (Loss) | 409,000,000 | 719,000,000 | 27,000,000 | 364,000,000 | 388,000,000 | 282,000,000 | 320,000,000 | 458,000,000 | |||
Earnings | $ 379,000,000 | $ 622,000,000 | $ 16,000,000 | $ 353,000,000 | $ 369,000,000 | $ 248,000,000 | $ 295,000,000 | $ 437,000,000 | $ 1,370,000,000 | $ 1,349,000,000 | $ 1,161,000,000 |
Quarterly Financial Data, Net Income Per Share, Basic (in dollars per share) | $ 1.63 | $ 2.87 | $ 0.11 | $ 1.46 | $ 1.56 | $ 1.14 | $ 1.29 | $ 1.85 | |||
Basic earnings per common share (in dollars per share) | $ 1.51 | $ 2.48 | $ 0.06 | $ 1.41 | $ 1.48 | $ 1 | $ 1.19 | $ 1.76 | $ 5.48 | $ 5.43 | $ 4.72 |
Weighted-average number of shares outstanding, basic | 250,600 | 250,400 | 250,100 | 249,700 | 248,700 | 248,400 | 248,100 | 247,700 | 250,217 | 248,249 | 245,891 |
Quarterly Financial Data, Net Income Per Share, Diluted (in dollars per share) | $ 1.62 | $ 2.85 | $ 0.11 | $ 1.45 | $ 1.54 | $ 1.12 | $ 1.27 | $ 1.83 | |||
Diluted earnings per common share (in dollars per share) | $ 1.51 | $ 2.46 | $ 0.06 | $ 1.40 | $ 1.47 | $ 0.99 | $ 1.17 | $ 1.74 | $ 5.46 | $ 5.37 | $ 4.63 |
Weighted-average number of shares outstanding, diluted | 251,600 | 252,400 | 252,000 | 251,500 | 251,500 | 251,000 | 251,500 | 251,200 | 251,155 | 250,923 | 250,655 |
Parent Company [Member] | |||||||||||
Selected Quarterly Financial Information [Line Items] | |||||||||||
Earnings | $ 1,370,000,000 | $ 1,349,000,000 | $ 1,161,000,000 | ||||||||
Basic earnings per common share (in dollars per share) | $ 5.48 | $ 5.43 | $ 4.72 | ||||||||
Weighted-average number of shares outstanding, basic | 250,217 | 248,249 | 245,891 | ||||||||
Diluted earnings per common share (in dollars per share) | $ 5.46 | $ 5.37 | $ 4.63 | ||||||||
Weighted-average number of shares outstanding, diluted | 251,155 | 250,923 | 250,655 | ||||||||
San Diego Gas and Electric Company [Member] | |||||||||||
Selected Quarterly Financial Information [Line Items] | |||||||||||
Quarterly Financial Data, Revenues | $ 1,061,000,000 | $ 1,209,000,000 | $ 992,000,000 | $ 991,000,000 | $ 1,051,000,000 | $ 1,230,000,000 | $ 972,000,000 | $ 966,000,000 | |||
Quarterly Financial Data, Operating Expenses | 800,000,000 | 886,000,000 | 822,000,000 | 755,000,000 | 802,000,000 | 930,000,000 | 745,000,000 | 684,000,000 | |||
Quarterly Financial Data, Operating Income | 261,000,000 | 323,000,000 | 170,000,000 | 236,000,000 | 249,000,000 | 300,000,000 | 227,000,000 | 282,000,000 | |||
Quarterly Financial Data, Net Income (Loss) | 147,000,000 | 194,000,000 | 87,000,000 | 137,000,000 | 143,000,000 | 182,000,000 | 130,000,000 | 151,000,000 | |||
Quarterly Financial Data, (Earnings) Losses Attributable To Noncontrolling Interests | (4,000,000) | 11,000,000 | (13,000,000) | 1,000,000 | (1,000,000) | 12,000,000 | 4,000,000 | 4,000,000 | |||
Earnings | $ 570,000,000 | $ 587,000,000 | $ 507,000,000 | ||||||||
Quarterly Financial Data, Earnings Attributable To Common Shares | 151,000,000 | 183,000,000 | 100,000,000 | 136,000,000 | 144,000,000 | 170,000,000 | 126,000,000 | 147,000,000 | |||
Southern California Gas Company [Member] | |||||||||||
Selected Quarterly Financial Information [Line Items] | |||||||||||
Quarterly Financial Data, Revenues | 1,135,000,000 | 686,000,000 | 617,000,000 | 1,033,000,000 | 1,041,000,000 | 620,000,000 | 780,000,000 | 1,048,000,000 | |||
Quarterly Financial Data, Operating Expenses | 899,000,000 | 648,000,000 | 628,000,000 | 739,000,000 | 834,000,000 | 633,000,000 | 686,000,000 | 728,000,000 | |||
Quarterly Financial Data, Operating Income | 236,000,000 | 38,000,000 | (11,000,000) | 294,000,000 | 207,000,000 | (13,000,000) | 94,000,000 | 320,000,000 | |||
Quarterly Financial Data, Net Income (Loss) | 151,000,000 | 0 | 0 | 199,000,000 | 143,000,000 | (8,000,000) | 71,000,000 | 214,000,000 | |||
Earnings | $ 350,000,000 | $ 420,000,000 | $ 333,000,000 | ||||||||
Quarterly Financial Data, Dividends On Preferred Stock | 0 | 0 | 1,000,000 | 0 | 0 | 0 | 1,000,000 | 0 | |||
Quarterly Financial Data, Earnings Attributable To Common Shares | $ 151,000,000 | $ 0 | $ (1,000,000) | $ 199,000,000 | $ 143,000,000 | $ (8,000,000) | $ 70,000,000 | $ 214,000,000 |
QUARTERLY FINANCIAL DATA (UN132
QUARTERLY FINANCIAL DATA (UNAUDITED) - NARRATIVE (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | May 31, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | |
Sempra LNG & Midstream [Member] | ||||
Significant Items Affecting Quarterly Results [Line Items] | ||||
Equity Method Investment, Realized Gain (Loss) on Released Pipeline Capacity | $ 206 | |||
Equity Method Investment, Realized Gain (Loss) on Released Pipeline Capacity, Net of Tax | $ 123 | |||
Equity Method Investment, Impairment Amount | $ 44 | |||
Equity Method Investment, Impairment Amount, Net of Tax | $ 27 | |||
GdC [Member] | Sempra Mexico [Member] | IEnova [Member] | ||||
Significant Items Affecting Quarterly Results [Line Items] | ||||
Gain on acquisition of remaining voting rights | $ 617 | $ 617 | ||
Gain on acquisition of remaining voting rights, net of tax | 432 | $ 432 | ||
Equity Method Investment, Realized Gain (Loss) on Acquisition of Remaining Voting Rights, Net of Tax and Noncontrolling Interest | 350 | |||
Termoelectrica de Mexicali [Member] | Sempra Mexico [Member] | ||||
Significant Items Affecting Quarterly Results [Line Items] | ||||
Other than temporary impairment in investment | 131 | |||
Other than temporary impairment in investment, net of tax | 111 | |||
Equity Method Investment Other Than Temporary Impairment Net Of Tax Benefit and Noncontrolling Interest | $ 90 |