DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Sempra Energy | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Shares Outstanding | 251,077,626 | |
Entity Central Index Key | 1,032,208 | |
Trading Symbol | SRE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
REVENUES | ||||||
Utilities | $ 2,197 | $ 1,994 | [1] | $ 4,895 | $ 4,436 | [1] |
Energy-related businesses | 336 | 162 | [1] | 669 | 342 | [1] |
Total revenues | 2,533 | 2,156 | [1] | 5,564 | 4,778 | [1] |
Utilities: | ||||||
Cost of electric fuel and purchased power | (553) | (561) | [1] | (1,080) | (1,076) | [1] |
Cost of natural gas | (228) | (183) | [1] | (713) | (494) | [1] |
Energy-related businesses: | ||||||
Cost of natural gas, electric fuel and purchased power | (62) | (62) | [1] | (129) | (118) | [1] |
Other cost of sales | 38 | (226) | [1] | 16 | (261) | [1] |
Operation and maintenance | (731) | (706) | [1] | (1,445) | (1,406) | [1] |
Depreciation and amortization | (368) | (314) | [1] | (728) | (642) | [1],[2] |
Franchise fees and other taxes | (101) | (96) | [1] | (211) | (207) | [1] |
Impairment losses | (71) | (21) | [1] | (71) | (22) | [1],[2] |
Equity earnings (losses), before income tax | 18 | 14 | [1] | 21 | (8) | [1] |
Operating expenses | ||||||
Impairment losses | 71 | 21 | [1] | 71 | 22 | [1],[2] |
Other income, net | 91 | 23 | [1] | 260 | 72 | [1] |
Interest income | 8 | 6 | [1] | 14 | 12 | [1] |
Interest expense | (159) | (142) | [1] | (328) | (285) | [1] |
Income (loss) before income taxes and equity earnings (losses) of certain unconsolidated subsidiaries | 415 | (112) | [1] | 1,170 | 343 | [1] |
Income tax (expense) benefit | (167) | 106 | [1] | (462) | (2) | [1] |
Equity earnings (losses), net of income tax | 0 | 33 | [1] | (8) | 50 | [1] |
Net income | 248 | 27 | [1] | 700 | 391 | [1],[2] |
(Earnings) losses attributable to noncontrolling interest | 12 | (10) | [1] | 1 | (21) | [1] |
Preferred dividends of subsidiary | (1) | (1) | [1] | (1) | (1) | [1] |
Earnings / Net Income | $ 259 | $ 16 | [1] | $ 700 | $ 369 | [1] |
Basic earnings per common share (in dollars per share) | $ 1.03 | $ 0.06 | [1] | $ 2.79 | $ 1.48 | [1] |
Weighted-average number of shares outstanding, basic | 251,447 | 250,096 | [1] | 251,290 | 249,915 | [1] |
Diluted earnings per common share (in dollars per share) | $ 1.03 | $ 0.06 | [1] | $ 2.77 | $ 1.47 | [1] |
Weighted-average number of shares outstanding, diluted | 252,822 | 252,036 | [1] | 252,609 | 251,775 | [1] |
Dividends declared per share of common stock (in dollars per share) | $ 0.83 | $ 0.75 | [1] | $ 1.65 | $ 1.51 | [1] |
San Diego Gas and Electric Company [Member] | ||||||
Operating revenues | ||||||
Electric | $ 946 | $ 897 | $ 1,821 | $ 1,740 | [1] | |
Natural gas | 112 | 95 | 294 | 243 | [1] | |
Total operating revenues | 1,058 | 992 | 2,115 | 1,983 | [1] | |
Operating expenses | ||||||
Cost of electric fuel and purchased power | 316 | 314 | 577 | 562 | [1] | |
Cost of natural gas | 38 | 25 | 103 | 64 | [1] | |
Operation and maintenance | 237 | 266 | 464 | 512 | [1] | |
Depreciation and amortization | 166 | 158 | 329 | 317 | [1] | |
Franchise fees and other taxes | 60 | 59 | 123 | 122 | [1] | |
Total operating expenses | 817 | 822 | 1,596 | 1,577 | [1] | |
Operating income | 241 | 170 | 519 | 406 | [1] | |
Other income, net | 15 | 13 | 33 | 27 | [1] | |
Interest expense | (49) | (48) | (98) | (96) | [1] | |
Income (loss) before income taxes and equity earnings (losses) of certain unconsolidated subsidiaries | 207 | 135 | 454 | 337 | [1] | |
Income tax (expense) benefit | (54) | (48) | (144) | (113) | [1] | |
Net income | 153 | 87 | 310 | 224 | [1] | |
(Earnings) losses attributable to noncontrolling interest | (4) | 13 | (6) | 12 | [1] | |
Earnings (losses) attributable to common shares | 149 | 100 | 304 | 236 | [1] | |
Southern California Gas Company [Member] | ||||||
Operating revenues | ||||||
Total operating revenues | 770 | 617 | 2,011 | 1,650 | [1] | |
Energy-related businesses: | ||||||
Impairment losses | 0 | (21) | 0 | (22) | [1] | |
Operating expenses | ||||||
Cost of natural gas | 179 | 147 | 587 | 400 | [1] | |
Operation and maintenance | 336 | 318 | 689 | 644 | [1] | |
Depreciation and amortization | 126 | 112 | 252 | 234 | [1],[2] | |
Franchise fees and other taxes | 34 | 30 | 73 | 67 | [1] | |
Impairment losses | 0 | 21 | 0 | 22 | [1] | |
Total operating expenses | 675 | 628 | 1,601 | 1,367 | [1] | |
Operating income | 95 | (11) | 410 | 283 | [1] | |
Other income, net | 9 | 6 | 20 | 16 | [1] | |
Interest expense | (26) | (24) | (51) | (46) | [1] | |
Income (loss) before income taxes and equity earnings (losses) of certain unconsolidated subsidiaries | 78 | (29) | 379 | 253 | [1] | |
Income tax (expense) benefit | (19) | 29 | (117) | (54) | [1] | |
Net income | 59 | 0 | 262 | 199 | [2] | |
Dividends, Preferred Stock | 1 | 1 | 1 | 1 | ||
Earnings (losses) attributable to common shares | $ 58 | $ (1) | $ 261 | $ 198 | [1],[2] | |
[1] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. | |||||
[2] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Net income (loss) | $ 248,000,000 | $ 27,000,000 | [1] | $ 700,000,000 | $ 391,000,000 | [1],[2] |
Other comprehensive income (loss): | ||||||
Comprehensive income (loss) | 739,000,000 | 346,000,000 | ||||
Pretax amount [Member] | ||||||
Net income (loss) | 427,000,000 | (89,000,000) | 1,163,000,000 | 372,000,000 | [3] | |
Other comprehensive income (loss): | ||||||
Foreign currency translation adjustments | 3,000,000 | 11,000,000 | 49,000,000 | 79,000,000 | [3] | |
Financial instruments | (43,000,000) | (78,000,000) | (36,000,000) | (237,000,000) | [3] | |
Pension and other postretirement benefits | 2,000,000 | 2,000,000 | 5,000,000 | 4,000,000 | [3] | |
Total other comprehensive income (loss) | (38,000,000) | (65,000,000) | 18,000,000 | (154,000,000) | [3] | |
Comprehensive income (loss) | 389,000,000 | (154,000,000) | 1,181,000,000 | 218,000,000 | [3] | |
Preferred dividends | (1,000,000) | (1,000,000) | (1,000,000) | (1,000,000) | [3] | |
Comprehensive income (loss) after preferred dividends of subsidiary | 388,000,000 | (155,000,000) | 1,180,000,000 | 217,000,000 | [3] | |
Income tax (expense) benefit [Member] | ||||||
Net income (loss) | (167,000,000) | 106,000,000 | (462,000,000) | (2,000,000) | [3] | |
Other comprehensive income (loss): | ||||||
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | [3] | |
Financial instruments | 17,000,000 | 35,000,000 | 14,000,000 | 110,000,000 | [3] | |
Pension and other postretirement benefits | (1,000,000) | (1,000,000) | (2,000,000) | (2,000,000) | [3] | |
Total other comprehensive income (loss) | 16,000,000 | 34,000,000 | 12,000,000 | 108,000,000 | [3] | |
Comprehensive income (loss) | (151,000,000) | 140,000,000 | (450,000,000) | 106,000,000 | [3] | |
Preferred dividends | 0 | 0 | 0 | 0 | [3] | |
Comprehensive income (loss) after preferred dividends of subsidiary | (151,000,000) | 140,000,000 | (450,000,000) | 106,000,000 | [3] | |
Net-of-tax amount [Member] | ||||||
Net income (loss) | 260,000,000 | 17,000,000 | 701,000,000 | 370,000,000 | [3] | |
Other comprehensive income (loss): | ||||||
Foreign currency translation adjustments | 3,000,000 | 11,000,000 | 49,000,000 | 79,000,000 | [3] | |
Financial instruments | (26,000,000) | (43,000,000) | (22,000,000) | (127,000,000) | [3] | |
Pension and other postretirement benefits | 1,000,000 | 1,000,000 | 3,000,000 | 2,000,000 | [3] | |
Total other comprehensive income (loss) | (22,000,000) | (31,000,000) | 30,000,000 | (46,000,000) | [3] | |
Comprehensive income (loss) | 238,000,000 | (14,000,000) | 731,000,000 | 324,000,000 | [3] | |
Preferred dividends | (1,000,000) | (1,000,000) | (1,000,000) | (1,000,000) | [3] | |
Comprehensive income (loss) after preferred dividends of subsidiary | 237,000,000 | (15,000,000) | 730,000,000 | 323,000,000 | [3] | |
Noncontrolling Interests (after-tax) [Member] | ||||||
Net income (loss) | (12,000,000) | 10,000,000 | (1,000,000) | 21,000,000 | [3] | |
Other comprehensive income (loss): | ||||||
Foreign currency translation adjustments | 2,000,000 | 0 | 11,000,000 | 5,000,000 | [3] | |
Financial instruments | (4,000,000) | 1,000,000 | (2,000,000) | (4,000,000) | [3] | |
Pension and other postretirement benefits | 0 | 0 | 0 | 0 | [3] | |
Total other comprehensive income (loss) | (2,000,000) | 1,000,000 | 9,000,000 | 1,000,000 | [3] | |
Comprehensive income (loss) | (14,000,000) | 11,000,000 | 8,000,000 | 22,000,000 | [3] | |
Preferred dividends | 0 | 0 | 0 | 0 | [3] | |
Comprehensive income (loss) after preferred dividends of subsidiary | (14,000,000) | 11,000,000 | 8,000,000 | 22,000,000 | [3] | |
Total [Member] | ||||||
Net income (loss) | 248,000,000 | 27,000,000 | 700,000,000 | 391,000,000 | [3] | |
Other comprehensive income (loss): | ||||||
Foreign currency translation adjustments | 5,000,000 | 11,000,000 | 60,000,000 | 84,000,000 | [3] | |
Financial instruments | (30,000,000) | (42,000,000) | (24,000,000) | (131,000,000) | [3] | |
Pension and other postretirement benefits | 1,000,000 | 1,000,000 | 3,000,000 | 2,000,000 | [3] | |
Total other comprehensive income (loss) | (24,000,000) | (30,000,000) | 39,000,000 | (45,000,000) | [3] | |
Comprehensive income (loss) | 224,000,000 | (3,000,000) | 739,000,000 | 346,000,000 | [3] | |
Preferred dividends | (1,000,000) | (1,000,000) | (1,000,000) | (1,000,000) | [3] | |
Comprehensive income (loss) after preferred dividends of subsidiary | 223,000,000 | (4,000,000) | 738,000,000 | 345,000,000 | [3] | |
San Diego Gas and Electric Company [Member] | ||||||
Net income (loss) | 153,000,000 | 87,000,000 | 310,000,000 | 224,000,000 | [1] | |
Other comprehensive income (loss): | ||||||
Comprehensive income (loss) | 314,000,000 | 223,000,000 | ||||
San Diego Gas and Electric Company [Member] | Pretax amount [Member] | ||||||
Net income (loss) | 203,000,000 | 148,000,000 | 448,000,000 | 349,000,000 | [3] | |
Other comprehensive income (loss): | ||||||
Financial instruments | 0 | 0 | 0 | 0 | [3] | |
Total other comprehensive income (loss) | 0 | 0 | 0 | 0 | [3] | |
Comprehensive income (loss) | 203,000,000 | 148,000,000 | 448,000,000 | 349,000,000 | [3] | |
San Diego Gas and Electric Company [Member] | Income tax (expense) benefit [Member] | ||||||
Net income (loss) | (54,000,000) | (48,000,000) | (144,000,000) | (113,000,000) | [3] | |
Other comprehensive income (loss): | ||||||
Financial instruments | 0 | 0 | 0 | 0 | [3] | |
Total other comprehensive income (loss) | 0 | 0 | 0 | 0 | [3] | |
Comprehensive income (loss) | (54,000,000) | (48,000,000) | (144,000,000) | (113,000,000) | [3] | |
San Diego Gas and Electric Company [Member] | Net-of-tax amount [Member] | ||||||
Net income (loss) | 149,000,000 | 100,000,000 | 304,000,000 | 236,000,000 | [3] | |
Other comprehensive income (loss): | ||||||
Financial instruments | 0 | 0 | 0 | 0 | [3] | |
Total other comprehensive income (loss) | 0 | 0 | 0 | 0 | [3] | |
Comprehensive income (loss) | 149,000,000 | 100,000,000 | 304,000,000 | 236,000,000 | [3] | |
San Diego Gas and Electric Company [Member] | Noncontrolling Interests (after-tax) [Member] | ||||||
Net income (loss) | 4,000,000 | (13,000,000) | 6,000,000 | (12,000,000) | [3] | |
Other comprehensive income (loss): | ||||||
Financial instruments | 1,000,000 | 1,000,000 | 4,000,000 | (1,000,000) | [3] | |
Total other comprehensive income (loss) | 1,000,000 | 1,000,000 | 4,000,000 | (1,000,000) | [3] | |
Comprehensive income (loss) | 5,000,000 | (12,000,000) | 10,000,000 | (13,000,000) | [3] | |
San Diego Gas and Electric Company [Member] | Total [Member] | ||||||
Net income (loss) | 153,000,000 | 87,000,000 | 310,000,000 | 224,000,000 | [3] | |
Other comprehensive income (loss): | ||||||
Financial instruments | 1,000,000 | 1,000,000 | 4,000,000 | (1,000,000) | [3] | |
Total other comprehensive income (loss) | 1,000,000 | 1,000,000 | 4,000,000 | (1,000,000) | [3] | |
Comprehensive income (loss) | 154,000,000 | 88,000,000 | 314,000,000 | 223,000,000 | [3] | |
Southern California Gas Company [Member] | ||||||
Net income (loss) | 59,000,000 | 0 | 262,000,000 | 199,000,000 | [2] | |
Other comprehensive income (loss): | ||||||
Comprehensive income (loss) | 263,000,000 | 199,000,000 | ||||
Southern California Gas Company [Member] | Pretax amount [Member] | ||||||
Net income (loss) | 78,000,000 | (29,000,000) | 379,000,000 | 253,000,000 | [3] | |
Other comprehensive income (loss): | ||||||
Financial instruments | 1,000,000 | 1,000,000 | ||||
Total other comprehensive income (loss) | 1,000,000 | 1,000,000 | ||||
Comprehensive income (loss) | 79,000,000 | (29,000,000) | 380,000,000 | 253,000,000 | [3] | |
Southern California Gas Company [Member] | Income tax (expense) benefit [Member] | ||||||
Net income (loss) | (19,000,000) | 29,000,000 | (117,000,000) | (54,000,000) | [3] | |
Other comprehensive income (loss): | ||||||
Financial instruments | 0 | 0 | ||||
Total other comprehensive income (loss) | 0 | 0 | ||||
Comprehensive income (loss) | (19,000,000) | 29,000,000 | (117,000,000) | (54,000,000) | [3] | |
Southern California Gas Company [Member] | Net-of-tax amount [Member] | ||||||
Net income (loss) | 59,000,000 | 0 | 262,000,000 | 199,000,000 | [3] | |
Other comprehensive income (loss): | ||||||
Financial instruments | 1,000,000 | 1,000,000 | ||||
Total other comprehensive income (loss) | 1,000,000 | 1,000,000 | ||||
Comprehensive income (loss) | $ 60,000,000 | $ 0 | $ 263,000,000 | $ 199,000,000 | [3] | |
[1] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. | |||||
[2] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. | |||||
[3] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 223,000,000 | $ 349,000,000 | |
Restricted cash | 70,000,000 | 66,000,000 | |
Accounts receivable – trade, net | 1,139,000,000 | 1,390,000,000 | |
Accounts receivable – other, net | 165,000,000 | 164,000,000 | |
Due from unconsolidated affiliates | 26,000,000 | 26,000,000 | |
Income taxes receivable | 110,000,000 | 43,000,000 | |
Inventories | 239,000,000 | 258,000,000 | |
Regulatory balancing accounts – undercollected | 261,000,000 | 259,000,000 | |
Fixed-price contracts and other derivatives | 186,000,000 | 83,000,000 | |
Assets held for sale | 109,000,000 | 201,000,000 | |
Other | 239,000,000 | 271,000,000 | |
Total current assets | 2,767,000,000 | 3,110,000,000 | |
Other assets: | |||
Restricted cash | 17,000,000 | 10,000,000 | |
Due from unconsolidated affiliates | 373,000,000 | 201,000,000 | |
Regulatory assets | 3,569,000,000 | 3,414,000,000 | |
Nuclear decommissioning trusts | 1,029,000,000 | 1,026,000,000 | |
Investments | 2,134,000,000 | 2,097,000,000 | |
Goodwill | 2,379,000,000 | 2,364,000,000 | |
Other intangible assets | 541,000,000 | 548,000,000 | |
Dedicated assets in support of certain benefit plans | 427,000,000 | 430,000,000 | |
Insurance receivable for Aliso Canyon costs | 554,000,000 | 606,000,000 | |
Deferred income taxes | 166,000,000 | 234,000,000 | |
Sundry | 859,000,000 | 815,000,000 | |
Total other assets | 12,048,000,000 | 11,745,000,000 | |
Property, plant and equipment: | |||
Property, plant and equipment | 45,704,000,000 | 43,624,000,000 | |
Less accumulated depreciation and amortization | (11,143,000,000) | (10,693,000,000) | |
Property, plant and equipment, net | 34,561,000,000 | 32,931,000,000 | |
Total assets | 49,376,000,000 | 47,786,000,000 | |
Current liabilities: | |||
Short-term debt | 1,826,000,000 | 1,779,000,000 | |
Accounts payable – trade | 1,054,000,000 | 1,346,000,000 | |
Accounts payable – other | 113,000,000 | 130,000,000 | |
Due to unconsolidated affiliates | 11,000,000 | 11,000,000 | |
Dividends and interest payable | 339,000,000 | 319,000,000 | |
Accrued compensation and benefits | 314,000,000 | 409,000,000 | |
Regulatory balancing accounts – overcollected | 204,000,000 | 122,000,000 | |
Current portion of long-term debt | 1,287,000,000 | 913,000,000 | |
Fixed-price contracts and other derivatives | 109,000,000 | 83,000,000 | |
Customer deposits | 158,000,000 | 158,000,000 | |
Reserve for Aliso Canyon costs | 63,000,000 | 53,000,000 | |
Liabilities held for sale | 47,000,000 | 47,000,000 | |
Other | 538,000,000 | 557,000,000 | |
Total current liabilities | 6,063,000,000 | 5,927,000,000 | |
Long-term debt | 15,000,000,000 | 14,429,000,000 | |
Deferred credits and other liabilities: | |||
Customer advances for construction | 146,000,000 | 152,000,000 | |
Pension and other postretirement benefit plan obligations, net of plan assets | 1,240,000,000 | 1,208,000,000 | |
Deferred income taxes | 4,191,000,000 | 3,745,000,000 | |
Deferred investment tax credits | 27,000,000 | 28,000,000 | |
Regulatory liabilities arising from removal obligations | 2,746,000,000 | 2,697,000,000 | |
Asset retirement obligations | 2,469,000,000 | 2,431,000,000 | |
Fixed-price contracts and other derivatives | 330,000,000 | 405,000,000 | |
Deferred credits and other | 1,559,000,000 | 1,523,000,000 | |
Total deferred credits and other liabilities | 12,708,000,000 | 12,189,000,000 | |
Commitments and contingencies (Note 11) | |||
Equity: | |||
Preferred stock | 0 | 0 | |
Common stock | 3,046,000,000 | 2,982,000,000 | |
Retained earnings | 11,004,000,000 | 10,717,000,000 | |
Accumulated other comprehensive income (loss) | (718,000,000) | (748,000,000) | |
Total shareholders’ equity | 13,332,000,000 | 12,951,000,000 | |
Preferred stock of subsidiary | 20,000,000 | 20,000,000 | |
Other noncontrolling interests | 2,253,000,000 | 2,270,000,000 | |
Total equity | 15,605,000,000 | 15,241,000,000 | |
Total liabilities and equity | 49,376,000,000 | 47,786,000,000 | |
San Diego Gas and Electric Company [Member] | |||
Current assets: | |||
Cash and cash equivalents | 12,000,000 | 8,000,000 | |
Restricted cash | 1,000,000 | 11,000,000 | |
Accounts receivable – trade, net | 368,000,000 | 354,000,000 | |
Accounts receivable – other, net | 20,000,000 | 17,000,000 | |
Due from unconsolidated affiliates | 2,000,000 | 4,000,000 | |
Income taxes receivable | 98,000,000 | 122,000,000 | |
Inventories | 89,000,000 | 80,000,000 | |
Prepaid expenses | 23,000,000 | 59,000,000 | |
Regulatory balancing accounts – undercollected | 261,000,000 | 259,000,000 | |
Regulatory assets | 104,000,000 | 81,000,000 | |
Fixed-price contracts and other derivatives | 29,000,000 | 58,000,000 | |
Other | 19,000,000 | 19,000,000 | |
Total current assets | 1,026,000,000 | 1,072,000,000 | |
Other assets: | |||
Restricted cash | 13,000,000 | 1,000,000 | |
Deferred income taxes recoverable in rates | 1,059,000,000 | 1,014,000,000 | |
Regulatory assets | 1,004,000,000 | 998,000,000 | |
Nuclear decommissioning trusts | 1,029,000,000 | 1,026,000,000 | |
Sundry | 362,000,000 | 358,000,000 | |
Total other assets | 3,467,000,000 | 3,397,000,000 | |
Property, plant and equipment: | |||
Property, plant and equipment | 18,996,000,000 | 17,844,000,000 | |
Less accumulated depreciation and amortization | (4,781,000,000) | (4,594,000,000) | |
Property, plant and equipment, net | 14,215,000,000 | 13,250,000,000 | |
Total assets | 18,708,000,000 | 17,719,000,000 | |
Current liabilities: | |||
Short-term debt | 5,000,000 | 0 | |
Accounts payable – trade | 433,000,000 | 460,000,000 | |
Due to unconsolidated affiliates | 26,000,000 | 15,000,000 | |
Interest payable | 41,000,000 | 40,000,000 | |
Accrued compensation and benefits | 77,000,000 | 121,000,000 | |
Accrued franchise fees | 37,000,000 | 43,000,000 | |
Current portion of long-term debt | 57,000,000 | 191,000,000 | |
Asset retirement obligations | 83,000,000 | 79,000,000 | |
Fixed-price contracts and other derivatives | 61,000,000 | 61,000,000 | |
Customer deposits | 77,000,000 | 76,000,000 | |
Other | 54,000,000 | 82,000,000 | |
Total current liabilities | 951,000,000 | 1,168,000,000 | |
Long-term debt | 5,523,000,000 | 4,658,000,000 | |
Deferred credits and other liabilities: | |||
Customer advances for construction | 52,000,000 | 52,000,000 | |
Pension and other postretirement benefit plan obligations, net of plan assets | 244,000,000 | 232,000,000 | |
Deferred income taxes | 2,980,000,000 | 2,829,000,000 | |
Deferred investment tax credits | 17,000,000 | 16,000,000 | |
Regulatory liabilities arising from removal obligations | 1,782,000,000 | 1,725,000,000 | |
Asset retirement obligations | 758,000,000 | 751,000,000 | |
Fixed-price contracts and other derivatives | 182,000,000 | 189,000,000 | |
Deferred credits and other | 415,000,000 | 421,000,000 | |
Total deferred credits and other liabilities | 6,430,000,000 | 6,215,000,000 | |
Commitments and contingencies (Note 11) | |||
Equity: | |||
Preferred stock | 0 | 0 | |
Common stock | 1,338,000,000 | 1,338,000,000 | |
Retained earnings | 4,440,000,000 | 4,311,000,000 | |
Accumulated other comprehensive income (loss) | (8,000,000) | (8,000,000) | |
Total shareholders’ equity | 5,770,000,000 | 5,641,000,000 | |
Other noncontrolling interests | 34,000,000 | 37,000,000 | |
Total equity | 5,804,000,000 | 5,678,000,000 | |
Total liabilities and equity | 18,708,000,000 | 17,719,000,000 | |
Southern California Gas Company [Member] | |||
Current assets: | |||
Cash and cash equivalents | 38,000,000 | 12,000,000 | |
Accounts receivable – trade, net | 377,000,000 | 608,000,000 | |
Accounts receivable – other, net | 67,000,000 | 77,000,000 | |
Due from unconsolidated affiliates | 56,000,000 | 8,000,000 | |
Income taxes receivable | 6,000,000 | 2,000,000 | |
Inventories | 45,000,000 | 58,000,000 | |
Regulatory assets | 8,000,000 | 8,000,000 | |
Other | 48,000,000 | 63,000,000 | |
Total current assets | 645,000,000 | 836,000,000 | |
Other assets: | |||
Regulatory assets arising from pension obligations | 757,000,000 | 742,000,000 | |
Regulatory assets | 679,000,000 | 589,000,000 | |
Insurance receivable for Aliso Canyon costs | 554,000,000 | 606,000,000 | |
Sundry | 439,000,000 | 399,000,000 | |
Total other assets | 2,429,000,000 | 2,336,000,000 | |
Property, plant and equipment: | |||
Property, plant and equipment | 15,889,000,000 | 15,344,000,000 | |
Less accumulated depreciation and amortization | (5,220,000,000) | (5,092,000,000) | |
Property, plant and equipment, net | 10,669,000,000 | 10,252,000,000 | |
Total assets | 13,743,000,000 | 13,424,000,000 | |
Current liabilities: | |||
Short-term debt | 0 | 62,000,000 | |
Accounts payable – trade | 330,000,000 | 481,000,000 | |
Accounts payable – other | 69,000,000 | 74,000,000 | |
Due to unconsolidated affiliates | 1,000,000 | 28,000,000 | |
Accrued compensation and benefits | 124,000,000 | 150,000,000 | |
Regulatory balancing accounts – overcollected | 204,000,000 | 122,000,000 | |
Current portion of long-term debt | 501,000,000 | 0 | |
Customer deposits | 74,000,000 | 76,000,000 | |
Reserve for Aliso Canyon costs | 63,000,000 | 53,000,000 | |
Other | 205,000,000 | 195,000,000 | |
Total current liabilities | 1,571,000,000 | 1,241,000,000 | |
Long-term debt | 2,484,000,000 | 2,982,000,000 | |
Deferred credits and other liabilities: | |||
Customer advances for construction | 94,000,000 | 99,000,000 | |
Pension obligation, net of plan assets | 777,000,000 | 762,000,000 | |
Deferred income taxes | 1,875,000,000 | 1,709,000,000 | |
Deferred investment tax credits | 11,000,000 | 12,000,000 | |
Regulatory liabilities arising from removal obligations | 964,000,000 | 972,000,000 | |
Asset retirement obligations | 1,643,000,000 | 1,616,000,000 | |
Deferred credits and other | 552,000,000 | 521,000,000 | |
Total deferred credits and other liabilities | 5,916,000,000 | 5,691,000,000 | |
Commitments and contingencies (Note 11) | |||
Equity: | |||
Preferred stock | 22,000,000 | 22,000,000 | |
Common stock | 866,000,000 | 866,000,000 | |
Retained earnings | 2,905,000,000 | 2,644,000,000 | |
Accumulated other comprehensive income (loss) | (21,000,000) | (22,000,000) | |
Total shareholders’ equity | 3,772,000,000 | 3,510,000,000 | |
Total liabilities and equity | $ 13,743,000,000 | $ 13,424,000,000 | |
[1] | Derived from audited financial statements. |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Property, plant and equipment, net related to VIE | $ 34,561 | $ 32,931 | [1] |
Long term debt related to VIE | $ 15,000 | $ 14,429 | [1] |
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 | 251,000,000 | 250,000,000 | |
Common stock, No par value (in dollars per share) | $ 0 | $ 0 | |
Otay Mesa VIE [Member] | |||
Property, plant and equipment, net related to VIE | $ 335 | $ 354 | |
Long term debt related to VIE | 289 | 293 | |
San Diego Gas and Electric Company [Member] | |||
Property, plant and equipment, net related to VIE | 14,215 | 13,250 | [1] |
Long term debt related to VIE | $ 5,523 | $ 4,658 | [1] |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Common stock, shares authorized | 255,000,000 | 255,000,000 | |
Common stock, shares outstanding | 117,000,000 | 117,000,000 | |
Common stock, No par value (in dollars per share) | $ 0 | $ 0 | |
San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member] | |||
Property, plant and equipment, net related to VIE | $ 335 | $ 354 | |
Long term debt related to VIE | 289 | 293 | |
Southern California Gas Company [Member] | |||
Property, plant and equipment, net related to VIE | 10,669 | 10,252 | [1] |
Long term debt related to VIE | $ 2,484 | $ 2,982 | [1] |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, shares outstanding | 91,000,000 | 91,000,000 | |
Common stock, No par value (in dollars per share) | $ 0 | $ 0 | |
[1] | Derived from audited financial statements. |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net Income | $ 700 | $ 391 | [1],[2] | |
Earnings / Net Income | 700 | 369 | [1] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 728 | 642 | [1],[2] | |
Deferred income taxes and investment tax credits | 411 | (76) | [2] | |
Impairment losses | 71 | 22 | [1],[2] | |
Equity earnings, net | (13) | (42) | [2] | |
Fixed-price contracts and other derivatives | (142) | 41 | [2] | |
Other | (19) | 45 | [2] | |
Net change in other working capital components | 138 | 167 | [2] | |
Insurance receivable for Aliso Canyon costs | 52 | (354) | [2] | |
Changes in other assets | (88) | (67) | [2] | |
Changes in other liabilities | 51 | 147 | [2] | |
Net cash provided by operating activities | 1,889 | 916 | [2] | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Expenditures for property, plant and equipment | (1,802) | (2,006) | [2] | |
Expenditures for investments | (97) | (46) | [2] | |
Proceeds from sale of assets | 4 | 443 | [2] | |
Distributions from investments | 18 | 12 | [2] | |
Purchases of nuclear decommissioning and other trust assets | (823) | (206) | [2] | |
Proceeds from sales by nuclear decommissioning and other trusts | 823 | 204 | [2] | |
Increases in restricted cash | (194) | (32) | [2] | |
Decreases in restricted cash | 185 | 44 | [2] | |
Advances to unconsolidated affiliates | (183) | (9) | [2] | |
Repayments of advances to unconsolidated affiliates | 2 | 9 | [2] | |
Other | 0 | (6) | [2] | |
Net cash used in investing activities | (2,067) | (1,593) | [2] | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Common dividends paid | (368) | (335) | [2] | |
Preferred dividends paid | (1) | (1) | [2] | |
Issuances of common stock | 28 | 29 | [2] | |
Repurchases of common stock | (14) | (54) | [2] | |
Issuances of debt (maturities greater than 90 days) | 1,932 | 1,384 | [2] | |
Payments on debt (maturities greater than 90 days) | (1,006) | (986) | [2] | |
(Decrease) increase in short-term debt, net | (493) | 865 | [2] | |
Net distributions to noncontrolling interests | (25) | (10) | [2] | |
Other | (9) | (10) | [2] | |
Net cash provided by (used in) financing activities | 44 | 882 | [2] | |
Effect of exchange rate changes on cash and cash equivalents | 8 | 8 | [2] | |
Increase (decrease) in cash and cash equivalents | (126) | 213 | [2] | |
Cash and cash equivalents, January 1 | 349 | [3] | 403 | [2] |
Cash and cash equivalents, June 30 | 223 | 616 | [2] | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||
Interest payments, net of amounts capitalized | 301 | 279 | [2] | |
Income tax payments, net of refunds | 109 | 73 | [2] | |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||||
Accrued capital expenditures | 428 | 541 | [2] | |
Increase in capital lease obligations for investment in property, plant and equipment | 502 | 0 | [2] | |
Equitization of note receivable due from unconsolidated affiliate | 19 | 0 | [2] | |
Common dividends issued in stock | 27 | 27 | [2] | |
Dividends declared but not paid | 214 | 195 | [2] | |
San Diego Gas and Electric Company [Member] | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net Income | 310 | 224 | [1] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 329 | 317 | [1] | |
Deferred income taxes and investment tax credits | 98 | 19 | [2] | |
Fixed-price contracts and other derivatives | (1) | (1) | [2] | |
Other | (20) | (21) | [2] | |
Net change in other working capital components | 6 | 0 | [2] | |
Changes in other assets | (49) | (39) | [2] | |
Changes in other liabilities | 17 | 9 | [2] | |
Net cash provided by operating activities | 690 | 508 | [2] | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Expenditures for property, plant and equipment | (763) | (602) | [2] | |
Purchases of nuclear decommissioning trust assets | (823) | (203) | [2] | |
Proceeds from sales by nuclear decommissioning trusts | 823 | 204 | [2] | |
Increases in restricted cash | (20) | (21) | [2] | |
Decreases in restricted cash | 18 | 24 | [2] | |
(Increase) decrease in loans to affiliate, net | 31 | (172) | [2] | |
Net cash used in investing activities | (734) | (770) | [2] | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Common dividends paid | (175) | 0 | [2] | |
Issuances of debt (maturities greater than 90 days) | 398 | 498 | [2] | |
Payments on debt (maturities greater than 90 days) | (163) | (128) | [2] | |
(Decrease) increase in short-term debt, net | 5 | (114) | [2] | |
Capital distributions made by VIE, net | (13) | (3) | [2] | |
Debt issuance costs | (4) | (3) | [2] | |
Net cash provided by (used in) financing activities | 48 | 250 | [2] | |
Increase (decrease) in cash and cash equivalents | 4 | (12) | [2] | |
Cash and cash equivalents, January 1 | 8 | [3] | 20 | [2] |
Cash and cash equivalents, June 30 | 12 | 8 | [2] | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||
Interest payments, net of amounts capitalized | 94 | 92 | [2] | |
Income tax payments, net of refunds | 13 | 125 | [2] | |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||||
Accrued capital expenditures | 152 | 124 | [2] | |
Increase in capital lease obligations for investment in property, plant and equipment | 500 | 0 | [2] | |
Dividends declared but not paid | 0 | 175 | [2] | |
Southern California Gas Company [Member] | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net Income | 262 | 199 | [2] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 252 | 234 | [1],[2] | |
Deferred income taxes and investment tax credits | 96 | 28 | [2] | |
Impairment losses | 0 | 22 | [1] | |
Other | (13) | (15) | [2] | |
Net change in other working capital components | 253 | 190 | [2] | |
Insurance receivable for Aliso Canyon costs | 52 | (354) | [2] | |
Changes in other assets | (40) | (54) | [2] | |
Changes in other liabilities | (7) | 12 | [2] | |
Net cash provided by operating activities | 855 | 262 | [2] | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Expenditures for property, plant and equipment | (682) | (650) | [2] | |
(Increase) decrease in loans to affiliate, net | (84) | 50 | [2] | |
Net cash used in investing activities | (766) | (600) | [2] | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Preferred dividends paid | (1) | (1) | [2] | |
Issuances of debt (maturities greater than 90 days) | 0 | 499 | [2] | |
Payments on debt (maturities greater than 90 days) | 0 | (3) | [2] | |
(Decrease) increase in short-term debt, net | (62) | 0 | [2] | |
Debt issuance costs | 0 | (4) | [2] | |
Net cash provided by (used in) financing activities | (63) | 491 | [2] | |
Increase (decrease) in cash and cash equivalents | 26 | 153 | [2] | |
Cash and cash equivalents, January 1 | 12 | [3] | 58 | [2] |
Cash and cash equivalents, June 30 | 38 | 211 | [2] | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||
Interest payments, net of amounts capitalized | 49 | 43 | [2] | |
Income tax payments, net of refunds | 22 | 35 | [2] | |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||||
Accrued capital expenditures | $ 155 | $ 140 | [2] | |
[1] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. | |||
[2] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. | |||
[3] | Derived from audited financial statements. |
GENERAL
GENERAL | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL PRINCIPLES OF CONSOLIDATION Sempra Energy Sempra Energy’s Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based Fortune 500 energy-services holding company, and its consolidated subsidiaries and VIEs. Sempra Energy’s operating units are ▪ Sempra Utilities, which includes our SDG&E, SoCalGas and Sempra South American Utilities reportable segments; and ▪ Sempra Infrastructure, which includes our Sempra Mexico, Sempra Renewables and Sempra LNG & Midstream reportable segments. 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. SDG&E SDG&E’s Condensed Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E is the primary beneficiary, as we discuss in Note 5 under “Variable Interest Entities.” SDG&E’s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. SoCalGas SoCalGas’ 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 Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements when discussed together or collectively: ▪ the Condensed Consolidated Financial Statements and related Notes of Sempra Energy and its subsidiaries and VIEs; ▪ the Condensed Consolidated Financial Statements and related Notes of SDG&E and its VIE; and ▪ the Condensed Financial Statements and related Notes of SoCalGas. We have prepared the Condensed Consolidated Financial Statements in conformity with U.S. GAAP and in accordance with the interim-period-reporting requirements of Form 10-Q. Results of operations for interim periods are not necessarily indicative of results for the entire year. We evaluated events and transactions that occurred after June 30, 2017 through the date the financial statements were issued and, in the opinion of management, the accompanying statements reflect all adjustments necessary for a fair presentation. These adjustments are only of a normal, recurring nature. All December 31, 2016 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2016 Consolidated Financial Statements in the Annual Report. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the interim-period-reporting provisions of U.S. GAAP and the SEC. We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. We follow the same accounting policies for interim reporting purposes. You should read the information in this Quarterly Report in conjunction with the Annual Report. Regulated Operations The California Utilities and Sempra Mexico’s natural gas distribution utility, Ecogas, prepare their financial statements in accordance with the provisions of U.S. GAAP governing rate-regulated operations. We discuss these provisions and revenue recognition at our utilities in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra South American Utilities has controlling interests in two electric distribution utilities in South America, Chilquinta Energía in Chile and Luz del Sur in Peru. 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. Our Sempra Mexico segment includes the operating companies of our subsidiary, IEnova. Certain business activities at IEnova are regulated by the CRE 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 AFUDC related to equity. We discuss AFUDC in Note 5 below and in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Standards | 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. 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 will 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 served as the basis for accounting analysis and documentation of the impact of ASU 2014-09 on our revenue recognition. The majority of Sempra Energy’s revenues result from electric and natural gas service to Sempra Utilities’ customers. Sempra Energy does not anticipate that the ASUs will materially impact the amount and timing of consolidated revenues. However, we do anticipate changes to the presentation of revenues on our statements of operations and additional disclosures around the nature, amount, timing and uncertainty of our revenues and cash flows arising from contracts with customers. 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 ASUs. 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 that do not qualify for the practical expedient to estimate fair value using net asset value per share, 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. 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, except for equity investments without readily determinable fair values, for which the guidance will be applied prospectively. 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 and do not expect it to materially affect our financial condition, results of operations or cash flows. 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 plan to adopt the standard on January 1, 2019. As part of our evaluation, we formed a steering committee comprised of members from relevant Sempra Energy business units and are compiling our population of contracts. Based on our assessment to date, we have determined that we will elect the practical expedients available under the transition guidance described above. We continue to monitor outstanding issues currently being addressed by the Financial Accounting Standards Board, since conclusions it reaches may impact our application of this ASU. 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 and tax deficiencies 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. 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. The adoption did not impact the financial statements for the three months ended June 30, 2016, except as noted in the table below. The following financial statement line items for the six months ended June 30, 2016 were affected by the change in accounting principle: IMPACT FROM ADOPTION OF ASU 2016-09 (Dollars in millions, except per share amounts) Six months ended June 30, 2016 As previously reported Effect of adoption As adjusted Sempra Energy Consolidated: Condensed Consolidated Statement of Operations: Income tax expense $ (36 ) $ 34 $ (2 ) Net income 357 34 391 Earnings 335 34 369 Basic earnings per common share $ 1.34 $ 0.14 $ 1.48 Diluted earnings per common share $ 1.33 $ 0.14 $ 1.47 Weighted-average number of shares outstanding, diluted (thousands)(1) 251,686 89 251,775 Condensed Consolidated Statement of Comprehensive Income (Loss): Net income $ 357 $ 34 $ 391 Comprehensive income 312 34 346 Comprehensive income, after preferred dividends of subsidiary 311 34 345 Condensed Consolidated Statement of Cash Flows: Cash flows from operating activities: Net income $ 357 $ 34 $ 391 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes and investment tax credits (42 ) (34 ) (76 ) Other(2) 11 34 45 Net cash provided by operating activities 882 34 916 Cash flows from financing activities: Tax benefit related to share-based compensation 34 (34 ) — Net cash provided by financing activities 916 (34 ) 882 SDG&E: Condensed Consolidated Statement of Operations: Income tax expense $ (120 ) $ 7 $ (113 ) Net income 217 7 224 Earnings attributable to common shares 229 7 236 Condensed Consolidated Statement of Comprehensive Income (Loss): Net income $ 217 $ 7 $ 224 Comprehensive income 216 7 223 Condensed Consolidated Statement of Cash Flows: Cash flows from operating activities: Net income $ 217 $ 7 $ 224 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes and investment tax credits 26 (7 ) 19 SoCalGas: Condensed Statement of Operations: Income tax expense $ (58 ) $ 4 $ (54 ) Net income 195 4 199 Earnings attributable to common shares 194 4 198 Condensed Statement of Comprehensive Income (Loss): Net income/Comprehensive income $ 195 $ 4 $ 199 Condensed Statement of Cash Flows: Cash flows from operating activities: Net income $ 195 $ 4 $ 199 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes and investment tax credits 32 (4 ) 28 (1) For the three months ended June 30, 2016, we previously reported 251,938 shares; the effect of adoption of the ASU resulted in an “as adjusted” 252,036 shares. (2) For the six months ended June 30, 2016, we previously reported $33 million in Other, which was reduced to $11 million , as $22 million was reclassified to Impairment Losses to conform to current year presentation. 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 plan to adopt the standard in the fourth quarter of 2017. If we had adopted ASU 2016-15 effective January 1, 2017, there would have been no impact to the Sempra Energy, SDG&E or SoCalGas Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017, based on the timing of cash receipts and cash payments impacted by the ASU. 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 plan to adopt the standard in the fourth quarter of 2017. If we had adopted ASU 2016-18 effective January 1, 2017, cash and cash equivalents at the beginning of the period would have included restricted cash of $76 million and $12 million , and cash and cash equivalents at the end of the period would have included restricted cash of $87 million and $14 million in Sempra Energy’s and SDG&E’s Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017, respectively. 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 are to be applied on a prospective basis. We 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. Entities may apply a full retrospective or modified retrospective approach. Under a modified retrospective approach, entities are required to apply the guidance to any transactions that are not completed as of the adoption date. We will adopt the standard in conjunction with our adoption of ASU 2014-09 on January 1, 2018 using the modified retrospective transition method. ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”: |
ACQUISITION AND DIVESTITURE ACT
ACQUISITION AND DIVESTITURE ACTIVITY | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
ACQUISITION 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. We did not complete any acquisitions during the six months ended June 30, 2017 or 2016. At June 30, 2017, the purchase price allocations for the acquisitions of Ventika in December 2016 and IEnova Pipelines (formerly known as GdC) in September 2016 were preliminary and subject to completion. Adjustments to the fair value estimates may occur as various valuations and assessments are finalized, primarily related to tax assets, liabilities and other attributes. ACQUISITION Sempra Renewables On July 10, 2017, Sempra Renewables paid $124 million in cash for an asset acquisition of a solar project located near Fresno, California, which is currently under construction. We expect to place the project into service in phases during the fourth quarter of 2017 and the first half of 2018 and, when fully constructed, it will be capable of producing up to 200 MW of solar power. The solar project is fully contracted under four long-term PPAs, with an average contract term of 18 years. 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 Termoeléctrica de Mexicali 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 we discuss in Note 3 of the Notes to Consolidated Financial Statements in the Annual Report. As a result, we stopped depreciating the plant and classified it as held for sale. In connection with the sales process, Sempra Mexico received new market information indicating that the fair value of TdM at June 30, 2017 is lower than previously estimated. As a result, and after further analysis, Sempra Mexico further reduced the carrying value of TdM by recognizing a noncash impairment charge of $71 million in the three months and six months ended June 30, 2017, recorded in Impairment Losses on Sempra Energy’s Condensed Consolidated Statements of Operations. We discuss non-recurring fair value measures and the associated accounting impact on TdM in Note 8. In connection with TdM’s classification as held for sale, we recognized a $3 million and $8 million tax benefit for the three months and six months ended June 30, 2017, respectively, and $3 million and $32 million in tax expense for the three months and six months ended June 30, 2016, respectively, related to a deferred Mexican income tax liability related to the excess of carrying value over the tax basis. As the Mexican income tax on this outside 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 June 30, 2017 , 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 JUNE 30, 2017 (Dollars in millions) Termoeléctrica de Mexicali Inventories $ 10 Other current assets 19 Property, plant and equipment, net 55 Other noncurrent assets 25 Total assets held for sale $ 109 Accounts payable $ 11 Other current liabilities 4 Asset retirement obligations 5 Other noncurrent liabilities 27 Total liabilities held for sale $ 47 DIVESTITURE Sempra LNG & Midstream Investment in Rockies Express Pipeline LLC In March 2016, Sempra LNG & Midstream entered into an agreement to sell its 25 -percent interest in Rockies Express 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 |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6 Months Ended |
Jun. 30, 2017 | |
Investments [Abstract] | |
Investments in Unconsolidated Entities | INVESTMENTS IN UNCONSOLIDATED ENTITIES 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 provide additional information concerning our equity method investments in Note 3 above and in Notes 3 and 4 of the Notes to Consolidated Financial Statements in the Annual Report. SEMPRA SOUTH AMERICAN UTILITIES In February 2017, Sempra South American Utilities recorded the equitization of its $19 million note receivable due from Eletrans, resulting in an increase in its investment in this unconsolidated joint venture. SEMPRA MEXICO Sempra Mexico invested cash of $72 million in its unconsolidated joint venture, IMG, in the six months ended June 30, 2017 . SEMPRA RENEWABLES Sempra Renewables invested cash of $18 million in its unconsolidated joint ventures in the six months ended June 30, 2016 . SEMPRA LNG & MIDSTREAM Sempra LNG & Midstream capitalized $24 million of interest during both the six months ended June 30, 2017 and 2016 related to its investment in Cameron LNG JV, which has not commenced planned principal operations. During the six months ended June 30, 2017 , Sempra LNG & Midstream invested cash of $1 million in this unconsolidated joint venture. In May 2016, Sempra LNG & Midstream sold its 25 -percent interest in Rockies Express, as we discuss in Note 3. GUARANTEES At June 30, 2017 , we had outstanding guarantees aggregating a maximum of $4.7 billion with an aggregate carrying value of $44 million . We discuss these guarantees below and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra Mexico IMG is a joint venture between a subsidiary of IEnova and a subsidiary of TransCanada. IEnova has an indirect 40 -percent ownership interest and TransCanada has an indirect 60 -percent ownership interest in IMG. IEnova and TransCanada have each provided guarantees to third parties associated with construction of IMG’s Sur de Texas - Tuxpan natural gas marine pipeline. The aggregate amount of the obligations guaranteed by IEnova shall not exceed $288 million |
OTHER FINANCIAL DATA
OTHER FINANCIAL DATA | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Financial Data | OTHER FINANCIAL DATAINVENTORIES The components of inventories by segment are as follows: INVENTORY BALANCES (Dollars in millions) Natural gas Liquefied natural gas Materials and supplies Total June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 June 30, December 31, 2016 June 30, December 31, 2016 SDG&E $ 1 $ 2 $ — $ — $ 88 $ 78 $ 89 $ 80 SoCalGas(1) — 11 — — 45 47 45 58 Sempra South American Utilities — — — — 33 27 33 27 Sempra Mexico — — 12 6 2 1 14 7 Sempra Renewables — — — — 4 4 4 4 Sempra LNG & Midstream 51 79 3 3 — — 54 82 Sempra Energy Consolidated $ 52 $ 92 $ 15 $ 9 $ 172 $ 157 $ 239 $ 258 (1) At June 30, 2017 and December 31, 2016 The Condensed Consolidated Balance Sheets include the following amounts associated with GHG allowances and obligations. GHG ALLOWANCES AND OBLIGATIONS (Dollars in millions) Sempra Energy SDG&E SoCalGas June 30, 2017 December 31, 2016 June 30, 2017 December 31, June 30, 2017 December 31, Assets: Other current assets $ 40 $ 40 $ 16 $ 16 $ 24 $ 24 Sundry 334 295 190 182 140 109 Total assets $ 374 $ 335 $ 206 $ 198 $ 164 $ 133 Liabilities: Other current liabilities $ 40 $ 40 $ 16 $ 16 $ 24 $ 24 Deferred credits and other 202 171 88 72 111 96 Total liabilities $ 242 $ 211 $ 104 $ 88 $ 135 $ 120 We discuss goodwill in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. The increase in goodwill from $2,364 million at December 31, 2016 to $2,379 million at June 30, 2017 We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based on qualitative and quantitative analyses, which assess ▪ the purpose and design of the VIE; ▪ the nature of the VIE’s risks and the risks we absorb; ▪ the power to direct activities that most significantly impact the economic performance of the VIE; and ▪ the obligation to absorb losses or right to receive benefits that could be significant to the VIE. SDG&E SDG&E’s power procurement is subject to reliability requirements that may require SDG&E to enter into various power purchase arrangements which include variable interests. SDG&E evaluates the respective entities to determine if variable interests exist and, based on the qualitative and quantitative analyses described above, if SDG&E, and thereby Sempra Energy, is the primary beneficiary. Tolling Agreements SDG&E has agreements under which it purchases power generated by facilities for which it supplies all of the natural gas to fuel the power plant (i.e., tolling agreements). SDG&E’s obligation to absorb natural gas costs may be a significant variable interest. In addition, SDG&E has the power to direct the dispatch of electricity generated by these facilities. Based upon our analysis, the ability to direct the dispatch of electricity may have the most significant impact on the economic performance of the entity owning the generating facility because of the associated exposure to the cost of natural gas, which fuels the plants, and the value of electricity produced. To the extent that SDG&E (1) is obligated to purchase and provide fuel to operate the facility, (2) has the power to direct the dispatch, and (3) purchases all of the output from the facility for a substantial portion of the facility’s useful life, SDG&E may be the primary beneficiary of the entity owning the generating facility. SDG&E determines if it is the primary beneficiary in these cases based on a qualitative approach in which we consider the operational characteristics of the facility, including its expected power generation output relative to its capacity to generate and the financial structure of the entity, among other factors. If we determine that SDG&E is the primary beneficiary, SDG&E and Sempra Energy consolidate the entity that owns the facility as a VIE. Otay Mesa VIE SDG&E has an agreement to purchase power generated at OMEC, a 605 -MW generating facility. In addition to tolling, the agreement provides SDG&E with the option to purchase OMEC at the end of the contract term in 2019, or upon earlier termination of the PPA, at a predetermined price subject to adjustments based on performance of the facility. If SDG&E does not exercise its option, under certain circumstances, it may be required to purchase the power plant for $280 million , which we refer to as the put option. The facility owner, OMEC LLC, is a VIE, which we refer to as Otay Mesa VIE, of which SDG&E is the primary beneficiary. SDG&E has no OMEC LLC voting rights, holds no equity in OMEC LLC and does not operate OMEC. In addition to the risks absorbed under the tolling agreement, SDG&E absorbs separately through the put option a significant portion of the risk that the value of Otay Mesa VIE could decline. Accordingly, SDG&E and Sempra Energy consolidate Otay Mesa VIE. Otay Mesa VIE’s equity of $34 million at June 30, 2017 and $37 million at December 31, 2016 is included on the Condensed Consolidated Balance Sheets in Other Noncontrolling Interests for Sempra Energy and in Noncontrolling Interest for SDG&E. OMEC LLC has a loan outstanding of $300 million at June 30, 2017 , the proceeds of which were used for the construction of OMEC. The loan is with third party lenders and is collateralized by OMEC’s assets. SDG&E is not a party to the loan agreement and does not have any additional implicit or explicit financial responsibility to OMEC LLC. The loan fully matures in April 2019 and bears interest at rates varying with market rates. In addition, OMEC LLC has entered into interest rate swap agreements to moderate its exposure to interest rate changes. We provide additional information concerning the interest rate swaps in Note 7. The Condensed Consolidated Statements of Operations of Sempra Energy and SDG&E include the following amounts associated with Otay Mesa VIE. The amounts are net of eliminations of transactions between SDG&E and Otay Mesa VIE. The captions in the table below correspond to SDG&E’s Condensed Consolidated Statements of Operations. AMOUNTS ASSOCIATED WITH OTAY MESA VIE (Dollars in millions) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Operating expenses Cost of electric fuel and purchased power $ (21 ) $ (17 ) $ (39 ) $ (34 ) Operation and maintenance 5 15 9 19 Depreciation and amortization 7 10 14 17 Total operating expenses (9 ) 8 (16 ) 2 Operating income (loss) 9 (8 ) 16 (2 ) Interest expense (5 ) (5 ) (10 ) (10 ) Income (loss) before income taxes/Net income (loss) 4 (13 ) 6 (12 ) (Earnings) losses attributable to noncontrolling interest (4 ) 13 (6 ) 12 Earnings attributable to common shares $ — $ — $ — $ — SDG&E has determined that no contracts, other than the one relating to Otay Mesa VIE mentioned above, result in SDG&E being the primary beneficiary of a VIE at June 30, 2017 . In addition to the tolling agreements described above, other variable interests involve various elements of fuel and power costs, and other components of cash flow expected to be paid to or received by our counterparties. In most of these cases, the expectation of variability is not substantial, and SDG&E generally does not have the power to direct activities that most significantly impact the economic performance of the other VIEs. In addition, SDG&E is not exposed to losses or gains as a result of these other VIEs, because all such variability would be recovered in rates. If our ongoing evaluation of these VIEs were to conclude that SDG&E becomes the primary beneficiary and consolidation by SDG&E becomes necessary, the effects could be significant to the financial position and liquidity of SDG&E and Sempra Energy. We provide additional information about PPAs with power plant facilities that are VIEs of which SDG&E is not the primary beneficiary in Note 11 below and in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report. We provide additional information regarding Otay Mesa VIE in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra Renewables Effective December 2016, certain of Sempra Renewables’ wind and solar power generation projects are held by limited liability companies whose members are Sempra Renewables and financial institutions. The financial institutions are noncontrolling tax equity investors to which earnings, tax attributes and cash flows are allocated in accordance with the respective limited liability company agreements. These entities are VIEs and Sempra Energy is the primary beneficiary, generally due to Sempra Energy’s power as the operator of the renewable energy projects to direct the activities that most significantly impact the economic performance of these VIEs. As the primary beneficiary of these tax equity limited liability companies, we consolidate them. Sempra Energy’s Condensed Consolidated Balance Sheets included $912 million and $926 million of PP&E, net, and equity of $454 million and $468 million included in Other Noncontrolling Interests at June 30, 2017 and December 31, 2016 , respectively, associated with these entities. Sempra Energy’s Condensed Consolidated Statements of Operations include the following amounts associated with the tax equity limited liability companies. The amounts are net of eliminations of transactions between Sempra Energy and these entities. AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS (Dollars in millions) Three months ended June 30, 2017 Six months ended June 30, 2017 REVENUES Energy-related businesses $ 18 $ 31 EXPENSES Operation and maintenance (7 ) (9 ) Depreciation and amortization (8 ) (16 ) Income before income taxes 3 6 Income tax expense (4 ) (6 ) Net loss (1 ) — Losses attributable to noncontrolling interests(1) 7 10 Earnings $ 6 $ 10 (1) Net income or loss attributable to the noncontrolling interests is computed using the HLBV method and is not based on ownership percentages. We provide additional information regarding the tax equity limited liability companies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra LNG & Midstream Sempra Energy’s equity method investment in Cameron LNG JV is considered to be a VIE principally due to contractual provisions that transfer certain risks to customers. Sempra Energy is not the primary beneficiary because we do not have the power to direct the most significant activities of Cameron LNG JV. We will continue to evaluate Cameron LNG JV for any changes that may impact our determination of the primary beneficiary. The carrying value of our investment in Cameron LNG JV, including amounts recognized in AOCI related to interest-rate cash flow hedges at Cameron LNG JV, was $977 million at June 30, 2017 and $997 million at December 31, 2016 . Our maximum exposure to loss includes the carrying value of our investment and the guarantees discussed in Note 4 above and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. Other Variable Interest Entities Net Periodic Benefit Cost The following three tables provide the components of net periodic benefit cost: NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Pension benefits Other postretirement benefits Three months ended June 30, 2017 2016 2017 2016 Service cost $ 29 $ 27 $ 5 $ 6 Interest cost 37 40 11 11 Expected return on assets (40 ) (41 ) (17 ) (18 ) Amortization of: Prior service cost 2 3 — — Actuarial loss 8 7 — — Regulatory adjustment (29 ) (28 ) 2 2 Total net periodic benefit cost $ 7 $ 8 $ 1 $ 1 Six months ended June 30, 2017 2016 2017 2016 Service cost $ 57 $ 55 $ 11 $ 11 Interest cost 74 80 20 22 Expected return on assets (80 ) (83 ) (33 ) (35 ) Amortization of: Prior service cost 5 6 — — Actuarial loss (gain) 16 13 (1 ) — Regulatory adjustment (41 ) (56 ) 4 4 Total net periodic benefit cost $ 31 $ 15 $ 1 $ 2 NET PERIODIC BENEFIT COST – SDG&E (Dollars in millions) Pension benefits Other postretirement benefits Three months ended June 30, 2017 2016 2017 2016 Service cost $ 7 $ 8 $ 2 $ 1 Interest cost 10 11 2 2 Expected return on assets (13 ) (13 ) (4 ) (2 ) Amortization of: Prior service cost 1 1 1 1 Actuarial loss (gain) 2 2 — (1 ) Regulatory adjustment (7 ) (8 ) (1 ) (1 ) Total net periodic benefit cost $ — $ 1 $ — $ — Six months ended June 30, 2017 2016 2017 2016 Service cost $ 15 $ 15 $ 3 $ 2 Interest cost 19 21 4 4 Expected return on assets (24 ) (25 ) (7 ) (5 ) Amortization of: Prior service cost 1 1 2 2 Actuarial loss (gain) 4 5 — (1 ) Regulatory adjustment (14 ) (15 ) (2 ) (2 ) Total net periodic benefit cost $ 1 $ 2 $ — $ — NET PERIODIC BENEFIT COST – SOCALGAS (Dollars in millions) Pension benefits Other postretirement benefits Three months ended June 30, 2017 2016 2017 2016 Service cost $ 18 $ 18 $ 3 $ 3 Interest cost 24 25 8 9 Expected return on assets (25 ) (27 ) (13 ) (14 ) Amortization of: Prior service cost (credit) 2 2 — (1 ) Actuarial loss (gain) 4 2 (1 ) — Regulatory adjustment (22 ) (20 ) 3 3 Total net periodic benefit cost $ 1 $ — $ — $ — Six months ended June 30, 2017 2016 2017 2016 Service cost $ 36 $ 35 $ 7 $ 7 Interest cost 48 50 15 17 Expected return on assets (51 ) (52 ) (26 ) (28 ) Amortization of: Prior service cost (credit) 4 4 (1 ) (2 ) Actuarial loss (gain) 8 5 (1 ) — Regulatory adjustment (27 ) (41 ) 6 6 Total net periodic benefit cost $ 18 $ 1 $ — $ — Benefit Plan Contributions The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2017: BENEFIT PLAN CONTRIBUTIONS (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Contributions through June 30, 2017: Pension plans $ 28 $ 2 $ 17 Other postretirement benefit plans 1 — — Total expected contributions in 2017: Pension plans $ 174 $ 32 $ 90 Other postretirement benefit plans 8 4 1 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 $427 million and $430 million at June 30, 2017 and December 31, 2016 The following table provides EPS computations for the three months and six months ended June 30, 2017 and 2016 . Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. EARNINGS PER SHARE COMPUTATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended June 30, Six months ended June 30, 2017 2016(1) 2017 2016(1) Numerator: Earnings/Income attributable to common shares $ 259 $ 16 $ 700 $ 369 Denominator: Weighted-average common shares outstanding for basic EPS(2) 251,447 250,096 251,290 249,915 Dilutive effect of stock options, RSAs and RSUs(3) 1,375 1,940 1,319 1,860 Weighted-average common shares outstanding for diluted EPS 252,822 252,036 252,609 251,775 EPS: Basic $ 1.03 $ 0.06 $ 2.79 $ 1.48 Diluted 1.03 0.06 2.77 1.47 (1) As adjusted for the adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2. (2) Includes 608 and 568 average fully vested RSUs held in our Deferred Compensation Plan for the three months ended June 30, 2017 and 2016 , respectively, and 604 and 562 for the six months ended June 30, 2017 and 2016, respectively. These fully vested RSUs are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued. (3) Due to market fluctuations of both Sempra Energy 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 of the Notes to Consolidated Financial Statements in the Annual Report, dilutive RSUs may vary widely from period-to-period. 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 for the three months ended June 30, 2017 and 2016 excludes 3,010 and 1,010 potentially dilutive shares, respectively, because to include them would be antidilutive for the period. The computation of diluted EPS for the six months ended June 30, 2017 and 2016 excludes 3,010 and 2,408 such potentially dilutive shares, respectively. However, these shares could potentially dilute basic EPS in the future. Pursuant to our Sempra Energy share-based compensation plans, Sempra Energy’s Board of Directors granted 424,760 performance-based RSUs and 93,619 service-based RSUs during the six months ended June 30, 2017, primarily in January. During the six months ended June 30, 2017, IEnova granted 1,034,086 RSUs from the IEnova 2013 Long-Term Incentive Plan, under which awards are cash settled at vesting based on the price of IEnova common stock. Capitalized financing costs include capitalized interest costs and AFUDC related to both debt and equity financing of construction projects. We capitalize interest costs incurred to finance capital projects and interest on equity method investments that have not commenced planned principal operations. Interest capitalized and AFUDC are as follows: CAPITALIZED FINANCING COSTS (Dollars in millions) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Sempra Energy Consolidated $ 62 $ 58 $ 144 $ 110 SDG&E 21 17 41 32 SoCalGas 15 14 30 27 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: 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) Three months ended June 30, 2017 and 2016 Sempra Energy Consolidated: Balance as of March 31, 2017 $ (481 ) $ (121 ) $ (94 ) $ (696 ) OCI before reclassifications 3 (26 ) — (23 ) Amounts reclassified from AOCI — — 1 1 Net OCI 3 (26 ) 1 (22 ) Balance as of June 30, 2017 $ (478 ) $ (147 ) $ (93 ) $ (718 ) . Balance as of March 31, 2016 $ (514 ) $ (221 ) $ (86 ) $ (821 ) OCI before reclassifications 11 (48 ) — (37 ) Amounts reclassified from AOCI — 5 1 6 Net OCI 11 (43 ) 1 (31 ) Balance as of June 30, 2016 $ (503 ) $ (264 ) $ (85 ) $ (852 ) SDG&E: Balance as of March 31, 2017 and June 30, 2017 $ (8 ) $ (8 ) Balance as of March 31, 2016 and June 30, 2016 $ (8 ) $ (8 ) SoCalGas: Balance as of March 31, 2017 $ (13 ) $ (9 ) $ (22 ) Amounts reclassified from AOCI — 1 1 Net OCI — 1 1 Balance as of June 30, 2017 $ (13 ) $ (8 ) $ (21 ) Balance as of March 31, 2016 and June 30, 2016 $ (14 ) $ (5 ) $ (19 ) (1) All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) (Dollars in millions) Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Total accumulated other comprehensive income (loss) Six months ended June 30, 2017 and 2016 Sempra Energy Consolidated: Balance as of December 31, 2016 $ (527 ) $ (125 ) $ (96 ) $ (748 ) OCI before reclassifications 49 (28 ) — 21 Amounts reclassified from AOCI — 6 3 9 Net OCI 49 (22 ) 3 30 Balance as of June 30, 2017 $ (478 ) $ (147 ) $ (93 ) $ (718 ) . Balance as of December 31, 2015 $ (582 ) $ (137 ) $ (87 ) $ (806 ) OCI before reclassifications 79 (130 ) — (51 ) Amounts reclassified from AOCI — 3 2 5 Net OCI 79 (127 ) 2 (46 ) Balance as of June 30, 2016 $ (503 ) $ (264 ) $ (85 ) $ (852 ) SDG&E: Balance as of December 31, 2016 and June 30, 2017 $ (8 ) $ (8 ) Balance as of December 31, 2015 and June 30, 2016 $ (8 ) $ (8 ) SoCalGas: Balance as of December 31, 2016 $ (13 ) $ (9 ) $ (22 ) Amounts reclassified from AOCI — 1 1 Net OCI — 1 1 Balance as of June 30, 2017 $ (13 ) $ (8 ) $ (21 ) Balance as of December 31, 2015 and June 30, 2016 $ (14 ) $ (5 ) $ (19 ) (1) All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Details about accumulated other Amounts reclassified Affected line item on Condensed Three months ended June 30, 2017 2016 Sempra Energy Consolidated: Financial instruments: Interest rate and foreign exchange instruments $ (1 ) $ 3 Interest Expense Interest rate instruments 2 2 Equity Earnings (Losses), Before Income Tax Interest rate and foreign exchange instruments 3 5 Equity Earnings (Losses), Net of Income Tax Foreign exchange instruments (1 ) — Revenues: Energy-Related Businesses Total before income tax 3 10 (1 ) (1 ) Income Tax (Expense) Benefit Net of income tax 2 9 (2 ) (4 ) Losses (Earnings) Attributable to Noncontrolling Interests $ — $ 5 Pension and other postretirement benefits: Amortization of actuarial loss $ 2 $ 2 See note (1) below (1 ) (1 ) Income Tax (Expense) Benefit Net of income tax $ 1 $ 1 Total reclassifications for the period, net of tax $ 1 $ 6 SDG&E: Financial instruments: Interest rate instruments $ 3 $ 3 Interest Expense (3 ) (3 ) (Earnings) Losses Attributable to Noncontrolling Interest Total reclassifications for the period $ — $ — SoCalGas: Pension and other postretirement benefits: Amortization of actuarial loss $ 1 $ — See note (1) below Total reclassifications for the period, net of tax $ 1 $ — (1) Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above). RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Details about accumulated other Amounts reclassified Affected line item on Condensed Six months ended June 30, 2017 2016 Sempra Energy Consolidated: Financial instruments: Interest rate and foreign exchange instruments $ (4 ) $ 7 Interest Expense Interest rate instruments 4 5 Equity Earnings (Losses), Before Income Tax Interest rate and foreign exchange instruments 5 6 Equity Earnings (Losses), Net of Income Tax Foreign exchange instruments 1 — Revenues: Energy-Related Businesses Commodity contracts not subject to rate recovery 9 (7 ) Revenues: Energy-Related Businesses Total before income tax 15 11 (5 ) (1 ) Income Tax (Expense) Benefit Net of income tax 10 10 (4 ) (7 ) Losses (Earnings) Attributable to Noncontrolling Interests $ 6 $ 3 Pension and other postretirement benefits: Amortization of actuarial loss $ 5 $ 4 See note (1) below (2 ) (2 ) Income Tax (Expense) Benefit Net of income tax $ 3 $ 2 Total reclassifications for the period, net of tax $ 9 $ 5 SDG&E: Financial instruments: Interest rate instruments $ 6 $ 6 Interest Expense (6 ) (6 ) (Earnings) Losses Attributable to Noncontrolling Interest Total reclassifications for the period $ — $ — SoCalGas: Pension and other postretirement benefits: Amortization of actuarial loss $ 1 $ — See note (1) below Total reclassifications for the period, net of tax $ 1 $ — (1) The following tables provide reconciliations of changes in Sempra Energy’s, SDG&E’s and SoCalGas’ shareholders’ equity and noncontrolling interests for the six months ended June 30, 2017 and 2016 . SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Sempra Energy ’ equity(1) Non- Total Balance at December 31, 2016 $ 12,951 $ 2,290 $ 15,241 Comprehensive income 731 8 739 Preferred dividends of subsidiary (1 ) — (1 ) Share-based compensation expense 23 — 23 Common stock dividends declared (413 ) — (413 ) Issuances of common stock 55 — 55 Repurchases of common stock (14 ) — (14 ) Equity contributed by noncontrolling interest — 1 1 Distributions to noncontrolling interests — (26 ) (26 ) Balance at June 30, 2017 $ 13,332 $ 2,273 $ 15,605 Balance at December 31, 2015 $ 11,809 $ 770 $ 12,579 Cumulative-effect adjustment from change in accounting principle 107 — 107 Comprehensive income 324 22 346 Preferred dividends of subsidiary (1 ) — (1 ) Share-based compensation expense 24 — 24 Common stock dividends declared (377 ) — (377 ) Issuances of common stock 56 — 56 Repurchases of common stock (54 ) — (54 ) Equity contributed by noncontrolling interest — 1 1 Distributions to noncontrolling interests — (11 ) (11 ) Balance at June 30, 2016 $ 11,888 $ 782 $ 12,670 (1) Amounts for the six months ended June 30, 2016 reflect the adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2. (2) Noncontrolling interests include the preferred stock of SoCalGas and other noncontrolling interests as listed in the table below under “Other Noncontrolling Interests.” SHAREHOLDER’S EQUITY AND NONCONTROLLING INTEREST – SDG&E (Dollars in millions) SDG&E ’ s Non- Total Balance at December 31, 2016 $ 5,641 $ 37 $ 5,678 Comprehensive income 304 10 314 Common stock dividends declared (175 ) — (175 ) Equity contributed by noncontrolling interest — 1 1 Distributions to noncontrolling interest — (14 ) (14 ) Balance at June 30, 2017 $ 5,770 $ 34 $ 5,804 Balance at December 31, 2015 $ 5,223 $ 53 $ 5,276 Cumulative-effect adjustment from change in accounting principle 23 — 23 Comprehensive income (loss) 236 (13 ) 223 Common stock dividends declared (175 ) — (175 ) Distributions to noncontrolling interest — (3 ) (3 ) Balance at June 30, 2016 $ 5,307 $ 37 $ 5,344 (1) Amounts for the six months ended June 30, 2016 reflect the adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2. SHAREHOLDERS’ EQUITY – SOCALGAS (Dollars in millions) Total Balance at December 31, 2016 $ 3,510 Comprehensive income 263 Preferred stock dividends declared (1 ) Balance at June 30, 2017 $ 3,772 Balance at December 31, 2015 $ 3,149 Cumulative-effect adjustment from change in accounting principle 15 Comprehensive income 199 Preferred stock dividends declared (1 ) Balance at June 30, 2016 $ 3,362 (1) Amounts for the six months ended June 30, 2016 reflect the adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2. Ownership interests that are held by owners other than Sempra Energy and SDG&E in subsidiaries or entities consolidated by them are accounted for and reported as noncontrolling interests. As a result, noncontrolling interests are reported as a separate component of equity on the Condensed Consolidated Balance Sheets. Earnings or losses attributable to noncontrolling interests are separately identified on the Condensed Consolidated Statements of Operations, and comprehensive income or loss attributable to noncontrolling interests is separately identified on the Condensed Consolidated Statements of Comprehensive Income (Loss). Preferred Stock The preferred stock at SoCalGas is presented at Sempra Energy as a noncontrolling interest. Sempra Energy records charges against income related to noncontrolling interests for preferred stock dividends declared by SoCalGas. We provide additional information regarding preferred stock in Note 11 of the Notes to Consolidated Financial Statements in the Annual Report. Other Noncontrolling Interests At June 30, 2017 and December 31, 2016 , we reported the following noncontrolling ownership interests held by others (not including preferred shareholders) recorded in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Condensed Consolidated Balance Sheets: OTHER NONCONTROLLING INTERESTS (Dollars in millions) Percent ownership held by noncontrolling interests Equity held by noncontrolling interests June 30, December 31, June 30, December 31, SDG&E: Otay Mesa VIE 100 % 100 % $ 34 $ 37 Sempra South American Utilities: Chilquinta Energía subsidiaries(1) 22.9 – 43.4 23.1 – 43.4 22 22 Luz del Sur 16.4 16.4 184 173 Tecsur S.A. 9.8 9.8 3 4 Sempra Mexico: IEnova 33.6 33.6 1,514 1,524 Sempra Renewables: Tax equity arrangement – wind(2) NA NA 91 92 Tax equity arrangement – solar(2) NA NA 363 376 Sempra LNG & Midstream: Bay Gas 9.1 9.1 28 27 Liberty Gas Storage, LLC 23.3 23.3 13 14 Southern Gas Transmission Company 49.0 49.0 1 1 Total Sempra Energy $ 2,253 $ 2,270 (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) 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) June 30, 2017 December 31, 2016 Sempra Energy Consolidated: Total due from various unconsolidated affiliates – current $ 26 $ 26 Sempra South American Utilities(1): Eletrans – 4% Note(2) $ 90 $ 96 Other related party receivables 1 1 Sempra Mexico(1): IMG – Note due March 15, 2022(3) 177 — Affiliate of joint venture with Ductos y Energéticos del Norte – Notes due 92 90 Energía Sierra Juárez – Note(5) 13 14 Total due from unconsolidated affiliates – noncurrent $ 373 $ 201 Total due to various unconsolidated affiliates – current $ (11 ) $ (11 ) SDG&E: Sempra Energy(6) $ — $ 3 SoCalGas 1 — Various affiliates 1 1 Total due from various unconsolidated affiliates – current $ 2 $ 4 Sempra Energy $ (18 ) $ — SoCalGas — (8 ) Various affiliates (8 ) (7 ) Total due to various unconsolidated affiliates – current $ (26 ) $ (15 ) Income taxes due from Sempra Energy(7) $ 132 $ 159 SoCalGas: Sempra Energy(8) $ 55 $ — SDG&E — 8 Various affiliates 1 — Total due from unconsolidated affiliates – current $ 56 $ 8 Sempra Energy $ — $ (28 ) SDG&E (1 ) — Total due to unconsolidated affiliates – current $ (1 ) $ (28 ) Income taxes due from Sempra Energy(7) $ 6 $ 5 (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, which includes, collectively, joint ventures of Chilquinta Energía. (3) Mexican peso-denominated revolving line of credit for up to $9.0 billion Mexican pesos or approximately $500 million U.S. dollar-equivalent, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 basis points ( 9.60 percent at June 30, 2017), to finance construction of the natural gas marine pipeline. (4) Four U.S. dollar-denominated loans, at variable interest rates based on the 30-day LIBOR plus 450 basis points ( 5.72 percent at June 30, 2017 ), to finance the Los Ramones Norte pipeline. (5) U.S. dollar-denominated loan, at a variable interest rate based on the 30-day LIBOR plus 637.5 basis points ( 7.60 percent at June 30, 2017 ) with no stated maturity date, to finance the first phase of the Energía Sierra Juárez wind project, which is a joint venture of IEnova. (6) At December 31, 2016 , net receivable included outstanding advances to Sempra Energy of $31 million at an interest rate of 0.68 percent. (7) 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. (8) At June 30, 2017 , net receivable included outstanding advances to Sempra Energy of $84 million at an interest rate of 1.23 percent. Revenues and cost of sales from unconsolidated affiliates are as follows: REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES (Dollars in millions) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Revenues: Sempra Energy Consolidated $ 8 $ 5 $ 15 $ 10 SDG&E 2 — 4 3 SoCalGas 17 18 35 35 Cost of Sales: Sempra Energy Consolidated $ 14 $ 20 $ 28 $ 50 SDG&E 19 16 39 30 Guarantees Other Income, Net on the Condensed Consolidated Statements of Operations consists of the following: OTHER INCOME, NET (Dollars in millions) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Sempra Energy Consolidated: Allowance for equity funds used during construction $ 40 $ 30 $ 112 $ 57 Investment gains(1) 14 10 30 20 Gains (losses) on interest rate and foreign exchange instruments, net 31 (15 ) 94 (12 ) Foreign currency transaction gains (losses) 7 (5 ) 17 (7 ) Electrical infrastructure relocation income(2) — 2 — 3 Regulatory interest, net(3) — 1 2 3 Sundry, net (1 ) — 5 8 Total $ 91 $ 23 $ 260 $ 72 SDG&E: Allo |
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES LINES OF CREDIT At June 30, 2017 , 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 these committed lines of credit, which expire in October 2020, are described below and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. Available unused credit on these lines at June 30, 2017 was approximately $3.1 billion . Our foreign operations have additional general purpose credit facilities aggregating $1.7 billion at June 30, 2017 . Available unused credit on these lines totaled $1 billion at June 30, 2017 . PRIMARY U.S. COMMITTED LINES OF CREDIT (Dollars in millions) At June 30, 2017 Total facility Commercial paper outstanding(4) Available unused credit Sempra Energy(1) $ 1,000 $ — $ 1,000 Sempra Global(2) 2,335 (1,236 ) 1,099 California Utilities(3): SDG&E 750 (5 ) 745 SoCalGas 750 — 750 Less: combined limit of $1 billion for both utilities (500 ) — (500 ) 1,000 (5 ) 995 Total $ 4,335 $ (1,241 ) $ 3,094 (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. No letters of credit were outstanding at June 30, 2017. (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. No letters of credit were outstanding at June 30, 2017. (4) Because the commercial paper programs are supported by these lines, we reflect the amount of commercial paper outstanding as a reduction to the available unused credit. 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 June 30, 2017. CREDIT FACILITIES IN SOUTH AMERICA AND MEXICO (U.S. dollar-equivalent in millions) At June 30, 2017 Denominated in Total facility Amount outstanding Available unused credit Sempra South American Utilities(1): Peru(2) Peruvian sol $ 379 $ (147 ) (3) $ 232 Chile Chilean peso 115 — 115 Sempra Mexico: IEnova(4) U.S. dollar 1,170 (516 ) 654 Total $ 1,664 $ (663 ) $ 1,001 (1) The credit facilities were entered into to finance working capital and for general corporate purposes and expire between 2017 and 2020. (2) The Peruvian facilities require a debt to equity ratio of no more than 170 percent , with which we were in compliance at June 30, 2017. (3) Includes bank guarantees of $4 million . (4) Five-year revolver expiring in August 2020 with a syndicate of eight lenders. WEIGHTED AVERAGE INTEREST RATES The weighted average interest rates on total short-term debt at Sempra Energy Consolidated were 1.81 percent and 1.51 percent at June 30, 2017 and December 31, 2016 , respectively. The weighted average interest rate on total short-term debt at SDG&E was 1.15 percent at June 30, 2017 . At December 31, 2016, the weighted average interest rate on total short-term debt at SoCalGas was 0.75 percent . LONG-TERM DEBT Sempra Energy In June 2017, Sempra Energy publicly offered and sold $750 million of 3.25 -percent, fixed rate notes maturing in 2027. Sempra Energy used the proceeds from the offering to repay outstanding commercial paper. SDG&E In June 2017, SDG&E publicly offered and sold $400 million of 3.75 -percent, first mortgage bonds maturing in 2047. SDG&E used the proceeds from the offering to repay outstanding commercial paper. In 2015, SDG&E entered into a CPUC-approved 25 -year PPA with a peaker plant facility. Construction of the peaker plant facility was completed and delivery of contracted power commenced in June 2017, at which time we recorded a $500 million capital lease obligation on SDG&E’s and Sempra Energy’s Condensed Consolidated Balance Sheets. We discuss commitments related to this capital lease obligation in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra South American Utilities In February 2017, Luz del Sur publicly offered and sold $50 million of corporate bonds at 6.38 percent , maturing in 2023. INTEREST RATE SWAPS |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2017 | |
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 Condensed Consolidated Balance Sheets. We designate each derivative as (1) a cash flow hedge, (2) a fair value hedge, or (3) undesignated. Depending on the applicability of hedge accounting and, for the California Utilities and other operations subject to regulatory accounting, the requirement to pass impacts through to customers, the impact of derivative instruments may be offset in other comprehensive income (loss) (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the settlements of derivative instruments as operating activities on the Condensed Consolidated Statements of Cash Flows. 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 Condensed Consolidated Statements of Operations are reflected in Cost of Electric Fuel and Purchased Power or in Cost of Natural Gas. ▪ SDG&E is allocated and may purchase CRRs, which serve to reduce the regional electricity price volatility risk that may result from local transmission capacity constraints. Unrealized gains and losses do not impact earnings, as they are offset by regulatory account balances. Realized gains and losses associated with CRRs, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. ▪ Sempra Mexico, 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 Condensed Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. Sempra Mexico may also use natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its Mexican distribution operations. These derivatives, which are recorded as commodity costs that are offset by regulatory account balances and recovered in rates, are recognized in Cost of Natural Gas on the Condensed Consolidated Statements of Operations. ▪ From time to time, our various businesses, including the California Utilities, may use other energy derivatives to hedge exposures such as the price of vehicle fuel. We summarize net energy derivative volumes at June 30, 2017 and December 31, 2016 as follows: NET ENERGY DERIVATIVE VOLUMES (Quantities in millions) Commodity Unit of measure June 30, December 31, California Utilities: SDG&E: Natural gas MMBtu 44 48 Electricity MWh 4 4 Congestion revenue rights MWh 42 48 SoCalGas – natural gas MMBtu — 1 Energy-Related Businesses: Sempra LNG & Midstream – natural gas MMBtu 14 31 Sempra Mexico – natural gas MMBtu 3 — 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 may 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 June 30, 2017 and December 31, 2016 , the net notional amounts of our interest rate derivatives, excluding joint ventures, were: INTEREST RATE DERIVATIVES (Dollars in millions) June 30, 2017 December 31, 2016 Notional debt Maturities Notional debt Maturities Sempra Energy Consolidated: Cash flow hedges(1) $ 897 2017-2032 $ 924 2017-2032 SDG&E: Cash flow hedges(1) 300 2017-2019 305 2017-2019 (1) Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. 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 or inflation. 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 of the Notes to Consolidated Financial Statements in the Annual Report. At June 30, 2017 and December 31, 2016 , the net notional amounts of our foreign currency derivatives, excluding joint ventures, were: FOREIGN CURRENCY DERIVATIVES (Dollars in millions) June 30, 2017 December 31, 2016 Notional amount Maturities Notional amount Maturities Sempra Energy Consolidated: Cross-currency swaps $ 408 2017-2023 $ 408 2017-2023 Other foreign currency derivatives(1) 903 2017-2018 86 2017-2018 (1) In the first quarter of 2017, we entered into foreign currency derivatives with notional amounts totaling $850 million that expire in December 2017. FINANCIAL STATEMENT PRESENTATION The Condensed Consolidated Balance Sheets reflect the offsetting of net derivative positions and cash collateral with the same counterparty when a legal right of offset exists. The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets at June 30, 2017 and December 31, 2016 , including the amount of cash collateral receivables that were not offset, as the cash collateral is in excess of liability positions. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) June 30, 2017 Current Other Current liabilities: Deferred Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments(3) $ 1 $ — $ (56 ) $ (153 ) Derivatives not designated as hedging instruments: Foreign exchange instruments 130 — — — Commodity contracts not subject to rate recovery 43 8 (33 ) (5 ) Associated offsetting commodity contracts (29 ) (3 ) 29 3 Commodity contracts subject to rate recovery 15 71 (59 ) (147 ) Associated offsetting commodity contracts (1 ) — 1 — Associated offsetting cash collateral — — 15 10 Net amounts presented on the balance sheet 159 76 (103 ) (292 ) Additional cash collateral for commodity contracts not subject to rate recovery 10 — — — Additional cash collateral for commodity contracts subject to rate recovery 17 — — — Total(4) $ 186 $ 76 $ (103 ) $ (292 ) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments(3) $ — $ — $ (13 ) $ (7 ) Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery 14 71 (58 ) (147 ) Associated offsetting commodity contracts (1 ) — 1 — Associated offsetting cash collateral — — 15 10 Net amounts presented on the balance sheet 13 71 (55 ) (144 ) Additional cash collateral for commodity contracts subject to rate recovery 16 — — — Total(4) $ 29 $ 71 $ (55 ) $ (144 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 1 $ — $ (1 ) $ — Net amounts presented on the balance sheet 1 — (1 ) — Additional cash collateral for commodity contracts not subject to rate recovery 1 — — — Additional cash collateral for commodity contracts subject to rate recovery 1 — — — Total $ 3 $ — $ (1 ) $ — (1) Included in Current Assets: Other for SoCalGas. (2) Included in Current Liabilities: Other for SoCalGas. (3) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. (4) Normal purchase contracts previously measured at fair value are excluded. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2016 Current Other Current liabilities: Deferred 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. The table below includes the effects of derivative instruments designated as fair value hedges on the Condensed Consolidated Statement of Operations for the three months and six months ended June 30 , 2016. There were no fair value hedges outstanding during the three months or six months ended June 30, 2017 . FAIR VALUE HEDGE IMPACTS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended Six months ended Location June 30, 2016 June 30, 2016 Sempra Energy Consolidated: Interest rate instruments Interest Expense $ 1 $ 3 Interest rate instruments Other Income, Net (2 ) (2 ) Total(1) $ (1 ) $ 1 (1) There was no hedge ineffectiveness in either the three months or six months ended June 30, 2016. 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. The table below includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI for the three months and six months ended June 30 : CASH FLOW HEDGE IMPACTS (Dollars in millions) Pretax (loss) gain recognized in OCI Pretax gain (loss) reclassified from AOCI into earnings Three months ended June 30, Three months ended June 30, 2017 2016 Location 2017 2016 Sempra Energy Consolidated: Interest rate and foreign exchange instruments(1) $ (8 ) $ 1 Interest Expense $ 1 $ (3 ) Interest rate instruments (32 ) (70 ) Equity Earnings (Losses), Before Income Tax (2 ) (2 ) Interest rate and foreign exchange instruments (9 ) (15 ) Equity Earnings (Losses), Net of Income Tax (3 ) (5 ) Foreign exchange instruments (1 ) — Revenues: Energy- Related Businesses 1 — Commodity contracts not subject to rate recovery — (5 ) Revenues: Energy- Related Businesses — — Total(2) $ (50 ) $ (89 ) $ (3 ) $ (10 ) SDG&E: Interest rate instruments(1)(3) $ (2 ) $ (2 ) Interest Expense $ (3 ) $ (3 ) Six months ended June 30, Six months ended June 30, 2017 2016 Location 2017 2016 Sempra Energy Consolidated: Interest rate and foreign $ 8 $ (10 ) Interest Expense $ 4 $ (7 ) Interest rate instruments (37 ) (207 ) Equity Earnings (Losses), (4 ) (5 ) Interest rate and foreign (18 ) (33 ) Equity Earnings (Losses), Net of Income Tax (5 ) (6 ) Foreign exchange instruments (10 ) — Revenues: Energy- (1 ) — Commodity contracts not subject 3 (4 ) Revenues: Energy- (9 ) 7 Total(2) $ (54 ) $ (254 ) $ (15 ) $ (11 ) SDG&E: Interest rate instruments(1)(3) $ (2 ) $ (7 ) Interest Expense $ (6 ) $ (6 ) (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. (2) There was $2 million of losses from hedge ineffectiveness related to these cash flow hedges in each of the three months and six months ended June 30, 2017 and negligible amounts for the same periods in 2016 . (3) There was negligible hedge ineffectiveness related to these cash flow hedges in the three months and six months ended June 30, 2017 and 2016. For Sempra Energy Consolidated, we expect that net gains of $11 million , which are net of income tax expense, that are currently recorded in AOCI (including $11 million of losses in noncontrolling interests 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 June 30, 2017 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 18 years. The effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations for the three months and six months ended June 30 were: UNDESIGNATED DERIVATIVE IMPACTS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended Six months ended Location 2017 2016 2017 2016 Sempra Energy Consolidated: Foreign exchange instruments Other Income, Net $ 32 $ (15 ) $ 97 $ (12 ) Foreign exchange instruments Equity Earnings (Losses), Net of Income Tax — — — 2 Commodity contracts not subject to rate recovery Revenues: Energy-Related Businesses 16 (24 ) 30 (29 ) Commodity contracts not subject to rate recovery Operation and Maintenance — 1 (1 ) 1 Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power 6 40 (23 ) 28 Commodity contracts subject to rate recovery Cost of Natural Gas — (1 ) — (2 ) Total $ 54 $ 1 $ 103 $ (12 ) SDG&E: Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power $ 6 $ 40 $ (23 ) $ 28 SoCalGas: Commodity contracts not subject to rate recovery Operation and Maintenance $ — $ — $ (1 ) $ — Commodity contracts subject to rate recovery Cost of Natural Gas — (1 ) — (2 ) Total $ — $ (1 ) $ (1 ) $ (2 ) CONTINGENT FEATURES For Sempra Energy Consolidated and SDG&E, certain of our derivative instruments contain credit limits which vary depending on our credit ratings. Generally, these provisions, if applicable, may reduce our credit limit if a specified credit rating agency reduces our ratings. In certain cases, if our credit ratings were to fall below investment grade, the counterparty to these derivative liability instruments could request immediate payment or demand immediate and ongoing full collateralization. For Sempra Energy Consolidated, the total fair value of this group of derivative instruments in a net liability position at June 30, 2017 and December 31, 2016 is $4 million and $10 million , respectively. At June 30, 2017 , if the credit ratings of Sempra Energy were reduced below investment grade, $6 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 $1 million at June 30, 2017 and negligible at December 31, 2016 . At June 30, 2017 , 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. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS We discuss the valuation techniques and inputs we use to measure fair value and the definition of the three levels of the fair value hierarchy in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. RECURRING FAIR VALUE MEASURES The three tables below, by level within the fair value hierarchy, set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis at June 30, 2017 and December 31, 2016 . 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. We have not changed the valuation techniques or types of inputs we use to measure recurring fair value during the six months ended June 30, 2017 . The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 7 under “Financial Statement Presentation.” The determination of fair values, shown in the tables below, incorporates various factors, including but not limited to, the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests). Our financial assets and liabilities that were accounted for at fair value on a recurring basis at June 30, 2017 and December 31, 2016 in the tables below include the following: ▪ Nuclear decommissioning trusts reflect the assets of SDG&E’s NDT, excluding cash balances. A third party trustee values the trust assets using prices from a pricing service based on a market approach. We validate these prices by comparison to prices from other independent data sources. Securities are valued using quoted prices listed on nationally recognized securities exchanges or based on closing prices reported in the active market in which the identical security is traded (Level 1). Other securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2). ▪ For commodity contracts, interest rate derivatives and foreign exchange instruments, we primarily use a market approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs and long-term, fixed-price electricity positions at SDG&E, as we discuss below in “Level 3 Information.” ▪ Rabbi Trust investments include marketable securities that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1). These investments in marketable securities were negligible at both June 30, 2017 and December 31, 2016 . 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 June 30, 2017 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 494 $ 5 $ — $ — $ 499 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 49 8 — — 57 Municipal bonds — 263 — — 263 Other securities — 199 — — 199 Total debt securities 49 470 — — 519 Total nuclear decommissioning trusts(2) 543 475 — — 1,018 Interest rate and foreign exchange instruments — 131 — — 131 Commodity contracts not subject to rate recovery 7 12 — 10 29 Commodity contracts subject to rate recovery — 1 84 17 102 Total $ 550 $ 619 $ 84 $ 27 $ 1,280 Liabilities: Interest rate and foreign exchange instruments $ — $ 209 $ — $ — $ 209 Commodity contracts not subject to rate recovery 3 3 — — 6 Commodity contracts subject to rate recovery 25 6 174 (25 ) 180 Total $ 28 $ 218 $ 174 $ (25 ) $ 395 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 (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 June 30, 2017 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 494 $ 5 $ — $ — $ 499 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 49 8 — — 57 Municipal bonds — 263 — — 263 Other securities — 199 — — 199 Total debt securities 49 470 — — 519 Total nuclear decommissioning trusts(2) 543 475 — — 1,018 Commodity contracts subject to rate recovery — — 84 16 100 Total $ 543 $ 475 $ 84 $ 16 $ 1,118 Liabilities: Interest rate instruments $ — $ 20 $ — $ — $ 20 Commodity contracts subject to rate recovery 25 5 174 (25 ) 179 Total $ 25 $ 25 $ 174 $ (25 ) $ 199 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 (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 June 30, 2017 Level 1 Level 2 Level 3 Netting(1) Total Assets: Commodity contracts not subject to rate recovery $ — $ — $ — $ 1 $ 1 Commodity contracts subject to rate recovery — 1 — 1 2 Total $ — $ 1 $ — $ 2 $ 3 Liabilities: Commodity contracts subject to rate recovery $ — $ 1 $ — $ — $ 1 Total $ — $ 1 $ — $ — $ 1 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 (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) Three months ended June 30, 2017 2016 Balance at April 1 $ (96 ) $ 11 Realized and unrealized (losses) gains (3 ) 8 Settlements 9 5 Balance at June 30 $ (90 ) $ 24 Change in unrealized gains relating to instruments still held at June 30 $ 2 $ 9 Six months ended June 30, 2017 2016 Balance at January 1 $ (74 ) $ 19 Realized and unrealized (losses) gains (16 ) 7 Settlements — (2 ) Balance at June 30 $ (90 ) $ 24 Change in unrealized (losses) gains relating to instruments still held at June 30 $ (14 ) $ 9 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 CAISO, an objective source. Annual auction prices are published once a year, typically in the middle of November, and are the basis for valuation 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. For CRRs settling from January 1, 2017 to December 31, 2017 , the auction price inputs ranged from $(12) per MWh to $7 per MWh at a given location, and for CRRs settling from January 1, 2016 to December 31, 2016 , the auction price inputs ranged from $(24) per MWh to $10 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 7. 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. These inputs range from $21.35 per MWh to $46.35 per MWh at June 30, 2017 . 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 7. Realized gains and losses associated with CRRs and long-term electricity positions, which are included in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Unrealized gains and losses are recorded as regulatory assets and liabilities and therefore 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 amounts due to/from unconsolidated affiliates, dividends and accounts payable, short-term debt and customer deposits) approximate their carrying amounts because of the short-term nature of these instruments. Investments in life insurance contracts that we hold in support of our Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans are carried at cash surrender values, which represent the amount of cash that could be realized under the contracts. The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets at June 30, 2017 and December 31, 2016 : FAIR VALUE OF FINANCIAL INSTRUMENTS (Dollars in millions) June 30, 2017 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates(1) $ 345 $ — $ 228 $ 92 $ 320 Total long-term debt(2)(3) 15,519 — 15,900 494 16,394 SDG&E: Total long-term debt(3)(4) $ 4,891 $ — $ 5,032 $ 300 $ 5,332 SoCalGas: Total long-term debt(5) $ 3,009 $ — $ 3,169 $ — $ 3,169 December 31, 2016 Carrying Fair value 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 (1) Excluding accumulated interest outstanding of $22 million and $17 million at June 30, 2017 and December 31, 2016 , respectively, and excluding foreign currency translation of $6 million on a Mexican peso-denominated loan at June 30, 2017. (2) Before reductions for unamortized discount (net of premium) and debt issuance costs of $114 million and $109 million at June 30, 2017 and December 31, 2016 , respectively, and excluding build-to-suit and capital lease obligations of $882 million and $383 million at June 30, 2017 and December 31, 2016 , respectively. We discuss our long-term debt in Note 6 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. (3) Level 3 instruments include $300 million and $305 million at June 30, 2017 and December 31, 2016 , respectively, related to Otay Mesa VIE. (4) Before reductions for unamortized discount and debt issuance costs of $48 million and $45 million at June 30, 2017 and December 31, 2016 , respectively, and excluding capital lease obligations of $737 million and $240 million at June 30, 2017 and December 31, 2016 , respectively. (5) Before reductions for unamortized discount and debt issuance costs of $25 million and $27 million at June 30, 2017 and December 31, 2016 , respectively, and excluding capital lease obligations of $1 million at June 30, 2017. 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 certain other long-term amounts due from unconsolidated affiliates 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 debt using an income approach based on the present value of estimated future cash flows discounted at rates available for similar securities (Level 3). TdM In February 2016, management approved a plan to market and sell Sempra Mexico’s TdM, a natural gas-fired power plant, and classified it as held for sale on the Sempra Energy Consolidated Balance Sheet, as we discuss in Note 3 above and in Note 3 of the Notes to Consolidated Financial Statements in the Annual Report. In connection with the sales process, Sempra Mexico received a purchase price offer resulting from negotiations with an active market participant. This new market information indicates that the fair value of TdM was lower than its carrying value at June 30, 2017. As a result, Sempra Mexico further reduced the carrying value of TdM by recognizing a noncash impairment charge of $71 million in the three months and six months ended June 30, 2017, recorded in Impairment Losses on Sempra Energy’s Consolidated Statements of Operations. The purchase price offer is considered to be a Level 2 input in the fair value hierarchy, as it represents an observable pricing input. The following table summarizes significant inputs impacting this non-recurring fair value measure: NON-RECURRING FAIR VALUE MEASURE – 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 TdM $ 62 (1) Market approach Level 2 100% Purchase price offer 100% (1) |
SAN ONOFRE NUCLEAR GENERATING S
SAN ONOFRE NUCLEAR GENERATING STATION | 6 Months Ended |
Jun. 30, 2017 | |
Regulated Operations [Abstract] | |
San Onofre Nuclear Generating Station (SONGS) | SAN ONOFRE NUCLEAR GENERATING STATION We provide below updates to ongoing matters related to SONGS, a nuclear generating facility near San Clemente, California that ceased operations in June 2013, and in which SDG&E has a 20 -percent ownership interest. We discuss SONGS further in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. REPLACEMENT STEAM GENERATORS As part of the Steam Generator Replacement Project, 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, the majority owner and operator of SONGS, 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 in June 2013. The replacement steam generators were designed and provided by 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 recovery of damages. The other SONGS co-owners, SDG&E and the City of Riverside, participated as claimants and respondents. On March 13, 2017, the Tribunal overseeing the arbitration found MHI liable for breach of contract, subject to a contractual limitation of liability, and rejected claimants’ other claims. The Tribunal awarded $118 million in damages to the SONGS co-owners, but determined that MHI was the prevailing party and awarded it 95 percent of its arbitration costs. The damage award is offset by these costs, resulting in a net award of approximately $60 million in favor of the SONGS co-owners. SDG&E’s specific allocation of the damage award is $24 million reduced by costs awarded to MHI of approximately $12 million , resulting in a net damage award of $12 million , which was paid by MHI to SDG&E in March 2017. These amounts include certain adjustments to calculations supporting the Tribunal’s findings. In accordance with the Amended Settlement Agreement discussed below, which may be modified or set aside, SDG&E recorded the proceeds from the MHI arbitration by reducing Operation and Maintenance for previously incurred legal costs of $11 million , and shared the remaining $1 million equally between ratepayers and shareholders. SETTLEMENT AGREEMENT TO RESOLVE THE CPUC’S ORDER INSTITUTING INVESTIGATION INTO THE SONGS OUTAGE 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, TURN, ORA and two other intervenors. 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. We describe the terms and provisions of the Amended Settlement Agreement in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. In May 2016, following the filing of petitions for modification by various parties, the CPUC issued a procedural 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 December 2016, the CPUC issued another 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. Pursuant to the December ruling and a subsequent procedural ruling, the parties have met to confer and, as a result of these discussions, the parties engaged a mediator and held confidential mediation discussions in June, July and continuing into August of 2017. Given the mediation, the parties were granted an extension until August 15, 2017 to file their proposed settlement and/or positions for moving forward with the proceeding. If no agreement is reached, 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 the mediation or the larger OII proceedings, which could result in a substantial reduction in our expected recovery and could 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 June 30, 2017 , the cumulative after-tax loss from plant closure recorded by Sempra Energy and SDG&E is $125 million . The remaining regulatory asset for the expected recovery of SONGS costs, consistent with the Amended Settlement Agreement, is $166 million ( $34 million current and $132 million long-term) at June 30, 2017 . The amortization period prescribed for the regulatory asset is 10 years , ending in January 2022. NUCLEAR DECOMMISSIONING AND FUNDING As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison began the decommissioning phase of the plant. 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. 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 approximately 20 percent of the total contract price. In accordance with state and federal requirements and regulations, SDG&E has assets held in the NDT to fund its share of decommissioning costs for SONGS Units 1, 2 and 3. The amounts collected in rates for SONGS’ decommissioning are invested in the NDT, which is comprised of externally managed trust funds. Amounts held by the NDT are invested in accordance with CPUC regulations. The NDT assets are presented on the Sempra Energy and SDG&E Condensed Consolidated Balance Sheets at fair value with the offsetting credits recorded in Regulatory Liabilities Arising from Removal Obligations. 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 . 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. SDG&E has received authorization from the CPUC to access NDT funds of up to $302 million for 2013 through 2017 (2017 forecasted) SONGS decommissioning costs. This includes up to $84 million authorized by the CPUC in February 2017 to be withdrawn from the NDT for forecasted 2017 SONGS Units 2 and 3 costs as decommissioning costs are incurred. 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 seeking further clarification of the proposed regulations to confirm that the proposed regulations will allow SDG&E to access the NDT funds for reimbursement or payment of the spent fuel management costs that were or will be incurred in 2016 and subsequent years. Further clarification of the proposed regulations could enable SDG&E to access the NDT to recover spent fuel management costs before Edison reaches final settlement with the DOE regarding the DOE’s reimbursement of these costs. Historically, the DOE’s reimbursements of spent fuel storage costs have not resulted in timely or complete recovery of these costs. We discuss the DOE’s responsibility for spent nuclear fuel in Note 11. It is unclear when clarification of the proposed regulations might be provided or when the proposed regulations will be finalized. The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 8. NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At June 30, 2017: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies(1) $ 57 $ — $ — $ 57 Municipal bonds(2) 256 8 (1 ) 263 Other securities(3) 197 3 (1 ) 199 Total debt securities 510 11 (2 ) 519 Equity securities 196 305 (2 ) 499 Cash and cash equivalents 11 — — 11 Total $ 717 $ 316 $ (4 ) $ 1,029 At December 31, 2016: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 52 $ — $ — $ 52 Municipal bonds 203 4 (1 ) 206 Other securities 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 (1) Maturity dates are 2018-2047. (2) Maturity dates are 2017-2047. (3) Maturity dates are 2017-2066. The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales: SALES OF SECURITIES (Dollars in millions) Three months ended Six months ended 2017 2016 2017 2016 Proceeds from sales(1) $ 466 $ 111 $ 823 $ 204 Gross realized gains 79 5 124 8 Gross realized losses (3 ) (3 ) (8 ) (11 ) (1) Excludes securities that are held to maturity. Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in Regulatory Liabilities Arising from Removal Obligations on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. In the three months and six months ended June 30, 2017, sale and purchase activities in our NDT increased significantly compared to the same periods in 2016 as a result of continuing changes to our asset allocations initiated in the fourth quarter of 2016 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 in anticipation of significant cash withdrawals over the next 10 We discuss regulatory matters in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and information about new matters below. CALIFORNIA UTILITIES MATTERS CPUC General Rate Case The CPUC uses a GRC proceeding to set sufficient rates to allow the California Utilities to recover their reasonable cost of O&M and to provide the opportunity to realize their authorized rates of return on their investment. In June 2016, the CPUC issued the 2016 GRC FD, the details of which are discussed in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report. The 2016 GRC FD was effective retroactive to January 1, 2016. SDG&E and SoCalGas recorded $9 million and $12 million , respectively, in the second quarter of 2016 for the retroactive after-tax earnings impact related to the first quarter of 2016. The 2016 GRC FD required the establishment of two-way income tax expense memorandum accounts to track any revenue variances resulting from certain differences between the income tax expense forecasted in the GRC and the income tax expense incurred by SDG&E and SoCalGas 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. Starting in the second quarter of 2016, SoCalGas and SDG&E began recording liabilities associated with tracking the differences in the income tax expense forecasted in the GRC proceedings and the income tax expense incurred. At June 30, 2017 , the recorded liability associated with these tracked amounts totaled $41 million and $20 million for SoCalGas and SDG&E, respectively. The tracking accounts will remain open, and the balance in the accounts will be reviewed in subsequent GRC proceedings, until the CPUC decides to close them. As of June 2017, there have been no mandatory or elective tax law, tax accounting, tax procedural, or tax policy changes that could give rise to a regulatory liability and as such, no amount has been tracked related to these items. SDG&E and SoCalGas are scheduled to file their next GRC applications (the 2019 GRC) in the third quarter of 2017. The applications, among other matters, will seek test year revenue requirements for 2019 and attrition year adjustments for 2020 and 2021. SDG&E and SoCalGas also expect to request a third attrition year adjustment for 2022. In June 2017, SDG&E and SoCalGas filed their first interim accountability reports comparing authorized and actual spending in 2014 and 2015 for certain safety-related activities. Similar data for 2016 will be provided with the 2019 GRC filings. The stated purpose of the interim accountability reports is to provide data and metrics for key safety and risk mitigation areas that will be reviewed in the 2019 GRC. Risk Assessment Mitigation Phase Report In December 2014, the CPUC issued a decision incorporating a risk-based decision-making framework into all future GRC application filings for major natural gas and electric utilities in California. The framework is intended to assist in assessing safety risks and the utilities’ plans to help ensure that such risks are adequately addressed. In advance of filing the California Utilities’ 2019 GRC applications, two proceedings occurred: the Safety Model Assessment Proceeding and the RAMP. In the Safety Model Assessment Proceeding, the California Utilities demonstrated the models used to prioritize and mitigate risks in order for the CPUC to establish guidelines and standards for these models. In November 2016, as part of the new framework, SDG&E and SoCalGas filed their first RAMP report presenting a comprehensive assessment of their key safety risks and proposed activities for mitigating such risks. The report details these key safety risks, which include critical operational issues such as natural gas pipeline safety and wildfire safety, and addresses their classification, scoring, mitigation, alternatives, safety culture, quantitative analysis, data collection and lessons learned. As part of the new framework, funding for any incremental projects or activities is not addressed in the RAMP report and would be subsequently requested in the California Utilities’ upcoming GRC applications. In March 2017, the CPUC’s Safety and Enforcement Division issued its evaluation report providing generally favorable feedback on the California Utilities’ RAMP report, but recommending more detailed analysis of the risks we presented in the report. The new GRC framework does not require the CPUC to adopt the RAMP report. Certain information from the RAMP report, including certain proposed projects and activities outlined therein, will be incorporated in the SDG&E and SoCalGas 2019 GRC applications to be filed in the third quarter of 2017. CPUC Cost of Capital On July 13, 2017, the CPUC issued a final decision adopting, with certain modifications, the joint petition filed in February 2017 by SDG&E, SoCalGas, PG&E and Edison, along with ORA and TURN. The final decision provides a two-year extension for each of the utilities to file its next respective cost of capital application, extending the filing date to April 2019 for a 2020 test year. The final decision also reduces the ROE for SDG&E from 10.30 percent to 10.20 percent and for SoCalGas from 10.10 percent to 10.05 |
REGULATORY MATTERS
REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2017 | |
Regulated Operations [Abstract] | |
Regulatory Matters | SAN ONOFRE NUCLEAR GENERATING STATION We provide below updates to ongoing matters related to SONGS, a nuclear generating facility near San Clemente, California that ceased operations in June 2013, and in which SDG&E has a 20 -percent ownership interest. We discuss SONGS further in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. REPLACEMENT STEAM GENERATORS As part of the Steam Generator Replacement Project, 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, the majority owner and operator of SONGS, 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 in June 2013. The replacement steam generators were designed and provided by 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 recovery of damages. The other SONGS co-owners, SDG&E and the City of Riverside, participated as claimants and respondents. On March 13, 2017, the Tribunal overseeing the arbitration found MHI liable for breach of contract, subject to a contractual limitation of liability, and rejected claimants’ other claims. The Tribunal awarded $118 million in damages to the SONGS co-owners, but determined that MHI was the prevailing party and awarded it 95 percent of its arbitration costs. The damage award is offset by these costs, resulting in a net award of approximately $60 million in favor of the SONGS co-owners. SDG&E’s specific allocation of the damage award is $24 million reduced by costs awarded to MHI of approximately $12 million , resulting in a net damage award of $12 million , which was paid by MHI to SDG&E in March 2017. These amounts include certain adjustments to calculations supporting the Tribunal’s findings. In accordance with the Amended Settlement Agreement discussed below, which may be modified or set aside, SDG&E recorded the proceeds from the MHI arbitration by reducing Operation and Maintenance for previously incurred legal costs of $11 million , and shared the remaining $1 million equally between ratepayers and shareholders. SETTLEMENT AGREEMENT TO RESOLVE THE CPUC’S ORDER INSTITUTING INVESTIGATION INTO THE SONGS OUTAGE 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, TURN, ORA and two other intervenors. 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. We describe the terms and provisions of the Amended Settlement Agreement in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. In May 2016, following the filing of petitions for modification by various parties, the CPUC issued a procedural 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 December 2016, the CPUC issued another 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. Pursuant to the December ruling and a subsequent procedural ruling, the parties have met to confer and, as a result of these discussions, the parties engaged a mediator and held confidential mediation discussions in June, July and continuing into August of 2017. Given the mediation, the parties were granted an extension until August 15, 2017 to file their proposed settlement and/or positions for moving forward with the proceeding. If no agreement is reached, 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 the mediation or the larger OII proceedings, which could result in a substantial reduction in our expected recovery and could 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 June 30, 2017 , the cumulative after-tax loss from plant closure recorded by Sempra Energy and SDG&E is $125 million . The remaining regulatory asset for the expected recovery of SONGS costs, consistent with the Amended Settlement Agreement, is $166 million ( $34 million current and $132 million long-term) at June 30, 2017 . The amortization period prescribed for the regulatory asset is 10 years , ending in January 2022. NUCLEAR DECOMMISSIONING AND FUNDING As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison began the decommissioning phase of the plant. 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. 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 approximately 20 percent of the total contract price. In accordance with state and federal requirements and regulations, SDG&E has assets held in the NDT to fund its share of decommissioning costs for SONGS Units 1, 2 and 3. The amounts collected in rates for SONGS’ decommissioning are invested in the NDT, which is comprised of externally managed trust funds. Amounts held by the NDT are invested in accordance with CPUC regulations. The NDT assets are presented on the Sempra Energy and SDG&E Condensed Consolidated Balance Sheets at fair value with the offsetting credits recorded in Regulatory Liabilities Arising from Removal Obligations. 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 . 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. SDG&E has received authorization from the CPUC to access NDT funds of up to $302 million for 2013 through 2017 (2017 forecasted) SONGS decommissioning costs. This includes up to $84 million authorized by the CPUC in February 2017 to be withdrawn from the NDT for forecasted 2017 SONGS Units 2 and 3 costs as decommissioning costs are incurred. 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 seeking further clarification of the proposed regulations to confirm that the proposed regulations will allow SDG&E to access the NDT funds for reimbursement or payment of the spent fuel management costs that were or will be incurred in 2016 and subsequent years. Further clarification of the proposed regulations could enable SDG&E to access the NDT to recover spent fuel management costs before Edison reaches final settlement with the DOE regarding the DOE’s reimbursement of these costs. Historically, the DOE’s reimbursements of spent fuel storage costs have not resulted in timely or complete recovery of these costs. We discuss the DOE’s responsibility for spent nuclear fuel in Note 11. It is unclear when clarification of the proposed regulations might be provided or when the proposed regulations will be finalized. The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 8. NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At June 30, 2017: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies(1) $ 57 $ — $ — $ 57 Municipal bonds(2) 256 8 (1 ) 263 Other securities(3) 197 3 (1 ) 199 Total debt securities 510 11 (2 ) 519 Equity securities 196 305 (2 ) 499 Cash and cash equivalents 11 — — 11 Total $ 717 $ 316 $ (4 ) $ 1,029 At December 31, 2016: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 52 $ — $ — $ 52 Municipal bonds 203 4 (1 ) 206 Other securities 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 (1) Maturity dates are 2018-2047. (2) Maturity dates are 2017-2047. (3) Maturity dates are 2017-2066. The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales: SALES OF SECURITIES (Dollars in millions) Three months ended Six months ended 2017 2016 2017 2016 Proceeds from sales(1) $ 466 $ 111 $ 823 $ 204 Gross realized gains 79 5 124 8 Gross realized losses (3 ) (3 ) (8 ) (11 ) (1) Excludes securities that are held to maturity. Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in Regulatory Liabilities Arising from Removal Obligations on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. In the three months and six months ended June 30, 2017, sale and purchase activities in our NDT increased significantly compared to the same periods in 2016 as a result of continuing changes to our asset allocations initiated in the fourth quarter of 2016 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 in anticipation of significant cash withdrawals over the next 10 We discuss regulatory matters in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and information about new matters below. CALIFORNIA UTILITIES MATTERS CPUC General Rate Case The CPUC uses a GRC proceeding to set sufficient rates to allow the California Utilities to recover their reasonable cost of O&M and to provide the opportunity to realize their authorized rates of return on their investment. In June 2016, the CPUC issued the 2016 GRC FD, the details of which are discussed in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report. The 2016 GRC FD was effective retroactive to January 1, 2016. SDG&E and SoCalGas recorded $9 million and $12 million , respectively, in the second quarter of 2016 for the retroactive after-tax earnings impact related to the first quarter of 2016. The 2016 GRC FD required the establishment of two-way income tax expense memorandum accounts to track any revenue variances resulting from certain differences between the income tax expense forecasted in the GRC and the income tax expense incurred by SDG&E and SoCalGas 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. Starting in the second quarter of 2016, SoCalGas and SDG&E began recording liabilities associated with tracking the differences in the income tax expense forecasted in the GRC proceedings and the income tax expense incurred. At June 30, 2017 , the recorded liability associated with these tracked amounts totaled $41 million and $20 million for SoCalGas and SDG&E, respectively. The tracking accounts will remain open, and the balance in the accounts will be reviewed in subsequent GRC proceedings, until the CPUC decides to close them. As of June 2017, there have been no mandatory or elective tax law, tax accounting, tax procedural, or tax policy changes that could give rise to a regulatory liability and as such, no amount has been tracked related to these items. SDG&E and SoCalGas are scheduled to file their next GRC applications (the 2019 GRC) in the third quarter of 2017. The applications, among other matters, will seek test year revenue requirements for 2019 and attrition year adjustments for 2020 and 2021. SDG&E and SoCalGas also expect to request a third attrition year adjustment for 2022. In June 2017, SDG&E and SoCalGas filed their first interim accountability reports comparing authorized and actual spending in 2014 and 2015 for certain safety-related activities. Similar data for 2016 will be provided with the 2019 GRC filings. The stated purpose of the interim accountability reports is to provide data and metrics for key safety and risk mitigation areas that will be reviewed in the 2019 GRC. Risk Assessment Mitigation Phase Report In December 2014, the CPUC issued a decision incorporating a risk-based decision-making framework into all future GRC application filings for major natural gas and electric utilities in California. The framework is intended to assist in assessing safety risks and the utilities’ plans to help ensure that such risks are adequately addressed. In advance of filing the California Utilities’ 2019 GRC applications, two proceedings occurred: the Safety Model Assessment Proceeding and the RAMP. In the Safety Model Assessment Proceeding, the California Utilities demonstrated the models used to prioritize and mitigate risks in order for the CPUC to establish guidelines and standards for these models. In November 2016, as part of the new framework, SDG&E and SoCalGas filed their first RAMP report presenting a comprehensive assessment of their key safety risks and proposed activities for mitigating such risks. The report details these key safety risks, which include critical operational issues such as natural gas pipeline safety and wildfire safety, and addresses their classification, scoring, mitigation, alternatives, safety culture, quantitative analysis, data collection and lessons learned. As part of the new framework, funding for any incremental projects or activities is not addressed in the RAMP report and would be subsequently requested in the California Utilities’ upcoming GRC applications. In March 2017, the CPUC’s Safety and Enforcement Division issued its evaluation report providing generally favorable feedback on the California Utilities’ RAMP report, but recommending more detailed analysis of the risks we presented in the report. The new GRC framework does not require the CPUC to adopt the RAMP report. Certain information from the RAMP report, including certain proposed projects and activities outlined therein, will be incorporated in the SDG&E and SoCalGas 2019 GRC applications to be filed in the third quarter of 2017. CPUC Cost of Capital On July 13, 2017, the CPUC issued a final decision adopting, with certain modifications, the joint petition filed in February 2017 by SDG&E, SoCalGas, PG&E and Edison, along with ORA and TURN. The final decision provides a two-year extension for each of the utilities to file its next respective cost of capital application, extending the filing date to April 2019 for a 2020 test year. The final decision also reduces the ROE for SDG&E from 10.30 percent to 10.20 percent and for SoCalGas from 10.10 percent to 10.05 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES LEGAL PROCEEDINGS We accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to 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 June 30, 2017 , accrued liabilities for legal proceedings, including associated legal fees and costs of litigation, were $10 million for Sempra Energy Consolidated, including $3 million for SDG&E and $5 million for SoCalGas. Amounts for Sempra Energy and SoCalGas include $5 million for matters related to the Aliso Canyon natural gas storage facility gas leak, which we discuss below. SDG&E 2007 Wildfire Litigation SDG&E has resolved all litigation associated with three wildfires that occurred in October 2007, except one appeal that remains 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 plaintiff until the case is resolved. SDG&E maintains reserves for the wildfire litigation and makes adjustments to these reserves as information becomes available and amounts are estimable. SDG&E continues to conclude 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 June 30, 2017 , Sempra Energy and SDG&E have recorded assets of $350 million in Regulatory Assets (long-term) and Other Regulatory Assets (long-term), respectively, on their Condensed Consolidated Balance Sheets related to CPUC-regulated operations. In September 2015, SDG&E filed an application with the CPUC seeking authority to recover these CPUC-related 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 Wildfire Expense Memorandum Account 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 addresses SDG&E’s operational and management prudence surrounding the 2007 wildfires. We expect a Phase 1 draft decision from the CPUC in the second half of 2017. 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, with a final CPUC decision expected by early 2019. 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 June 30, 2017 , the resulting after-tax charge against earnings would have been up to approximately $207 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 SDG&E’s and Sempra Energy’s results of operations and cash flows. We discuss how we assess the probability of recovery of our regulatory assets in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. Concluded Matter SDG&E participated as a claimant and respondent in an arbitration proceeding initiated by Edison in October 2013 against MHI seeking damages stemming from the failure of the MHI replacement steam generators at the SONGS nuclear power plant. In March 2017, the Tribunal found MHI liable for breach of contract, subject to a contractual limitation of liability, but determined that MHI was the prevailing party and awarded it 95 percent of its arbitration costs. We discuss this arbitration and decision further in Note 9. 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 natural gas storage facility has been operated by SoCalGas since 1972. SS25 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, DOGGR confirmed that the well was permanently sealed. Pursuant to a stipulation and order by the Los Angeles County 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, the DPH conducted indoor testing of certain homes in the Porter Ranch community, and concluded that indoor conditions did not present a long-term health risk and that it was safe for residents to return home. In May 2016, the Los Angeles County Superior Court ordered SoCalGas to offer to clean residents’ homes at SoCalGas’ expense as a condition to ending the relocation program. SoCalGas completed the residential cleaning program and the relocation program ended in July 2016. Apart from the Los Angeles County 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 it aside. The total costs incurred to remediate and stop the leak and to mitigate local community impacts are significant and may increase, and we may be subject to potentially significant damages, restitution, and civil, administrative and criminal fines, costs or other penalties. To the extent any of these costs are 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 June 30, 2017 , SoCalGas recorded estimated costs of $832 million related to the leak. Of this amount, approximately two-thirds is for the temporary relocation program (including cleaning costs and certain labor costs). Other estimated costs include amounts 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 investigate the cause of the leak. The remaining portion of the $832 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 $832 million represents management’s best estimate of these costs related to the leak. Of these costs, a substantial portion has been paid and $63 million is accrued as Reserve for Aliso Canyon Costs as of June 30, 2017 on SoCalGas’ and Sempra Energy’s Condensed Consolidated Balance Sheets for amounts expected to be paid after June 30, 2017 . As of June 30, 2017 , we recorded the expected recovery of the costs described in the immediately preceding paragraph related to the leak of $554 million as Insurance Receivable for Aliso Canyon Costs on SoCalGas’ and Sempra Energy’s Condensed Consolidated Balance Sheets. This amount is net of insurance retentions and $273 million of insurance proceeds we received through June 30, 2017 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 could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. 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 or otherwise paid, 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 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 ordered 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 natural gas storage facility and, in September 2016, approved SoCalGas’ request to begin tracking these revenues as of March 17, 2016. 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. 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. Subject to various policy limits, exclusions and conditions, based on 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 investigate 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, any costs to clean additional homes pursuant to the 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 a portion of control-of-well expenses and a portion of 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 in obtaining coverage or these costs exceed the amount of our coverage, 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 June 30, 2017 of $832 million of certain costs in connection with the Aliso Canyon natural gas 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, SCAQMD, CARB, Los Angeles Regional Water Quality Control Board, California Division of Occupational Safety and Health, CPUC, PHMSA, 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 to conduct an independent analysis under their supervision and to be funded by SoCalGas to investigate the technical root cause of the Aliso Canyon natural gas storage facility gas leak. The timing of the root cause analysis is under the control of Blade, DOGGR and the CPUC. As of August 3, 2017, 281 lawsuits, including over 25,500 plaintiffs, are pending 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. These complaints seek compensatory and punitive damages, civil penalties, injunctive relief, costs of future medical monitoring and attorneys’ fees, and several seek class action status. 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 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 certain of its directors in the SDCA, and six shareholder derivative actions alleging breach of fiduciary duties against certain officers and certain directors of Sempra Energy and/or SoCalGas are pending, one in the SDCA and five in the coordination proceeding in the Los Angeles County Superior Court. In March 2017, the SDCA dismissed the shareholder derivative action pending in that court, ruling that the plaintiff did not have standing to pursue the alleged claims; the plaintiff did not seek to amend his complaint to cure its deficiencies. In June 2017, the SDCA dismissed the federal securities class action on the grounds the plaintiff failed to plead sufficient facts to establish a claim for securities fraud. In July 2017, the plaintiff filed an amended complaint, again alleging violation of the federal securities laws. Pursuant to the coordination proceeding in the Los Angeles County Superior Court, in March 2017, the individuals and business entities asserting tort and Proposition 65 claims filed a Second Amended Consolidated Master Case Complaint for Individual Actions, through which their separate lawsuits will be managed for pretrial purposes. The consolidated complaint asserts causes of action for negligence, negligence per se, private and public nuisance (continuing and permanent), trespass, inverse condemnation, strict liability, negligent and intentional infliction of emotional distress, fraudulent concealment, loss of consortium and violations of Proposition 65 against SoCalGas, with certain causes also naming Sempra Energy. The consolidated complaint seeks compensatory and punitive damages for personal injuries, lost wages and/or lost profits, property damage and diminution in property value, injunctive relief, costs of future medical monitoring, civil penalties (including penalties associated with Proposition 65 claims alleging violation of requirements for warning about certain chemical exposures), and attorneys’ fees. 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 actions filed by public entities are pending, as follows. These lawsuits are also included in the coordination proceeding in the Los Angeles County Superior Court. First, 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 by SoCalGas in Los Angeles County require safety upgrades, including the installation of a sub-surface safety shut-off valve 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. Second, 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. Third, in March 2017, the County of Los Angeles filed a petition for writ of mandate against DOGGR and its State Oil and Gas Supervisor, as to which SoCalGas is the real party in interest. In July 2017, the County amended the petition to add the CPUC and its Executive Director. The petition alleges that in issuing its July 19, 2017 determination that the requirements for the resumption of injection operations have been met, discussed under “ Natural Gas Storage Operations and Reliability” below, DOGGR failed to comply with the provisions of SB 380, which requires a comprehensive safety review of the Aliso Canyon natural gas storage facility before injection of natural gas may resume. The County alleges, among other things, that DOGGR failed to comply with the provisions of SB 380 in declaring the safety review complete and authorizing the resumption of injection of natural gas into the facility before the root cause analysis was complete, failing to make its safety-review documents available to the public and failing to address seismic risks to the field as part of its safety review. The County further alleges that CEQA requires DOGGR to perform an Environmental Impact Review before the resumption of injection of natural gas at the facility may be approved. The petition seeks a writ of mandate requiring DOGGR and the State Oil and Gas Supervisor to comply with SB 380 and CEQA, and to produce records in response to the County’s Public Records Act request; as well as, declaratory and injunctive relief against any authorization to inject natural gas and attorneys’ fees. On July 24, 2017, the County filed an application for an immediate stay of DOGGR’s order, a temporary restraining order and order to show cause why a preliminary injunction should not be issued to stop the reopening of the facility. On July 28, 2017, the Superior Court denied the application on the ground that, pursuant to Public Utilities Code sections 714 and 1759(a), the CPUC has jurisdiction over regulating injections at the Aliso Canyon natural gas storage facility, and the Court therefore lacks jurisdiction to rule on the County’s application. On July 31, 2017, the County filed a petition for writ of mandate, prohibition, stay or other appropriate relief and a request for immediate stay in the Court of Appeal, seeking review of the Superior Court’s order denying the County’s application for a temporary restraining order. Later the same day, the Court of Appeal denied the County’s request for an immediate stay on injections. A complaint filed by the SCAQMD against SoCalGas seeking civil penalties for alleged violations of several nuisance-related statutory provisions arising from the leak and delays in stopping the leak was settled in February 2017, pursuant to which SoCalGas paid $8.5 million , of which $1 million is to be used to pay for a health study. The SCAQMD’s complaint was dismissed in February 2017. 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 Los Angeles County 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 operational commitments estimated to cost approximately $5 million , reimbursement and assessments in exchange for the Los Angeles County 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 the Aliso Canyon natural gas storage facility who objected to the settlement have filed a notice of appeal of the judgment, as well as a petition asking the Los Angeles County Superior Court to set aside the November 29, 2016 order and grant them restitution. The Los Angeles County Superior Court dismissed the petition in January 2017, ruling that the petitioners have a remedy at law via their direct appeal. 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 Proceedings. In February 2017, the CPUC opened a proceeding pursuant to SB 380 to determine the feasibility of minimizing or eliminating the use of the Aliso Canyon natural gas storage facility, while still maintaining energy and electric reliability for the region. The proceeding will be conducted in two phases, with Phase 1 undertaking a comprehensive effort to develop the appropriate analyses and scenarios to evaluate the impact of reducing or eliminating the use of the Aliso Canyon natural gas storage facility and Phase 2 evaluating the impacts of reducing or eliminating the use of the Aliso Canyon natural gas storage facility using the scenarios and models adopted in Phase 1. In accordance with the Phase 1 schedule, public participation hearings began in April 2017, and workshops and additional public participation hearings are expected to occur later in 2017. The order establishing the scope of the proceeding expressly excludes issues with respect to air quality, public health, causation, culpability or cost responsibility regarding the Aliso Canyon natural gas storage facility gas leak. Section 455.5 of the California Public Utilities Code, among other things, directs regulated utilities to notify the CPUC if all or any portion of a major facility has been out of service for nine consecutive months. Although SoCalGas does not believe the Aliso Canyon natural gas storage facility or any portion of that facility has been out of service for nine consecutive months, SoCalGas provided notification in an abundance of caution to demonstrate commitment to regulatory compliance and transparency, and because the process for obtaining authorization to resume injection operations at the facility required longer to complete than initially contemplated. In response, and as required by section 455.5, the CPUC issued an OII to address whether the Aliso Canyon natural gas storage 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. As required under section 455.5, if hearings on the investigation are necessary, they will be consolidated with SoCalGas’ next GRC proceeding. In the event that the CPUC determines that all or any portion of the facility has been out of service for nine consecutive months, the amount of any refund to ratepayers and the inability to earn a return on those assets could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Governmental Orders and Additional Regulation. In January 2016, the Governor of the State of California issued an Order (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 natural gas storage 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) 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; (2) 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 (3) DOGGR, CPUC, CARB and the 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 storage facility 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 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 the Aliso Canyon natural gas storage facility, sealing the well, monitoring, reporting, safety and funding a health impact study, among other things (the Abatement Order). SoCalGas fulfilled its obligations under the Abatement Order to the satisfaction of the SCAQMD and its Hearing Board, except for the condition that SoCalGas agree to fund the reasonable costs of a study of the health impacts of the leak. Pursuant to the settlement agreement between the SCAQMD and SoCalGas described above, the SCAQMD agreed that the health study condition was satisfied and, in March 2017, the Hearing Board terminated the Abatement Order. PHMSA, DOGGR, SCAQMD, EPA and CARB have each commenced separate rulemaking proceedings to adopt further regulations covering natural gas storage facilities and injection wells. DOGGR issued new regulations following the Governor’s Order as described above, and in 2016, the California Legislature enacted four separate bills providing for additional regulation of natural gas storage facilities. Additional hearings in the California Legislature, as well as with various other federal and state regulatory agencies, have been or may be scheduled, additional legislation has been proposed in the California Legislature, and additional laws, orders, rules and regulations may be adopted. The Los Angeles County Board of Supervisors has formed a task force to review and potentially implement new, more stringent land use (zoning) requirements and associated regulations and enforcement protocols for oil and gas activities, including natural gas storage field operations, which could materially affect new or modified uses of the Aliso Canyon natural gas storag |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2017 | |
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, electric, LNG, LPG, ethane and liquid fuels infrastructure, and has marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico. 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, a terminal for the import and export of LNG and sale of natural gas, and natural gas pipelines and storage facilities, 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. We discuss these divestitures in Note 3 of the Notes to Consolidated Financial Statements in the Annual Report. We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. The California Utilities’ operations are based on rates set by the CPUC and the FERC. We describe the accounting policies of all of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. Common services shared by the business segments are assigned directly or allocated based on various cost factors, depending on the nature of the service provided. Interest income and expense is recorded on intercompany loans. The loan balances and related interest are eliminated in consolidation. The following tables show selected information by segment from our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as “All other” in the following tables consist primarily of parent organizations. SEGMENT INFORMATION (Dollars in millions) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 REVENUES SDG&E $ 1,058 $ 992 $ 2,115 $ 1,983 SoCalGas 770 617 2,011 1,650 Sempra South American Utilities 381 385 793 785 Sempra Mexico 273 147 537 285 Sempra Renewables 26 6 48 13 Sempra LNG & Midstream 122 90 254 220 Intersegment revenues(1) (97 ) (81 ) (194 ) (158 ) Total $ 2,533 $ 2,156 $ 5,564 $ 4,778 INTEREST EXPENSE SDG&E $ 49 $ 48 $ 98 $ 96 SoCalGas 26 24 51 46 Sempra South American Utilities 11 11 20 20 Sempra Mexico 20 4 52 8 Sempra Renewables 4 — 8 — Sempra LNG & Midstream 9 10 20 22 All other 67 74 135 146 Intercompany eliminations (27 ) (29 ) (56 ) (53 ) Total $ 159 $ 142 $ 328 $ 285 INTEREST INCOME Sempra South American Utilities $ 6 $ 5 $ 11 $ 10 Sempra Mexico 3 1 5 3 Sempra Renewables 2 — 3 1 Sempra LNG & Midstream 12 17 29 33 Intercompany eliminations (15 ) (17 ) (34 ) (35 ) Total $ 8 $ 6 $ 14 $ 12 DEPRECIATION AND AMORTIZATION SDG&E $ 166 $ 158 $ 329 $ 317 SoCalGas 126 112 252 234 Sempra South American Utilities 13 14 26 27 Sempra Mexico 37 15 73 32 Sempra Renewables 10 2 19 3 Sempra LNG & Midstream 11 12 21 25 All other 5 1 8 4 Total $ 368 $ 314 $ 728 $ 642 INCOME TAX EXPENSE (BENEFIT)(2) SDG&E $ 54 $ 48 $ 144 $ 113 SoCalGas 19 (29 ) 117 54 Sempra South American Utilities 20 15 39 29 Sempra Mexico 102 (12 ) 244 28 Sempra Renewables (5 ) (9 ) (16 ) (22 ) Sempra LNG & Midstream 18 (99 ) 19 (128 ) All other (41 ) (20 ) (85 ) (72 ) Total $ 167 $ (106 ) $ 462 $ 2 SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 EQUITY EARNINGS (LOSSES) Earnings (losses) recorded before tax: Sempra Renewables $ 16 $ 11 $ 18 $ 18 Sempra LNG & Midstream 2 3 3 (26 ) Total $ 18 $ 14 $ 21 $ (8 ) Earnings (losses) recorded net of tax: Sempra South American Utilities $ — $ — $ 1 $ 2 Sempra Mexico — 33 (9 ) 48 Total $ — $ 33 $ (8 ) $ 50 EARNINGS (LOSSES)(2) SDG&E $ 149 $ 100 $ 304 $ 236 SoCalGas(3) 58 (1 ) 261 198 Sempra South American Utilities 45 43 92 81 Sempra Mexico (9 ) 57 39 75 Sempra Renewables 23 12 34 26 Sempra LNG & Midstream 27 (149 ) 28 (181 ) All other (34 ) (46 ) (58 ) (66 ) Total $ 259 $ 16 $ 700 $ 369 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 763 $ 602 SoCalGas 682 650 Sempra South American Utilities 77 82 Sempra Mexico 155 140 Sempra Renewables 100 457 Sempra LNG & Midstream 12 68 All other 13 7 Total $ 1,802 $ 2,006 June 30, 2017 December 31, 2016 ASSETS SDG&E $ 18,708 $ 17,719 SoCalGas 13,743 13,424 Sempra South American Utilities 3,750 3,591 Sempra Mexico 7,835 7,542 Sempra Renewables 2,349 3,644 Sempra LNG & Midstream 4,861 5,564 All other 660 475 Intersegment receivables (2,530 ) (4,173 ) Total $ 49,376 $ 47,786 EQUITY METHOD AND OTHER INVESTMENTS Sempra South American Utilities $ 20 $ — Sempra Mexico 234 180 Sempra Renewables 825 844 Sempra LNG & Midstream 977 997 All other 78 76 Total $ 2,134 $ 2,097 (1) Revenues for reportable segments include intersegment revenues of $3 million , $17 million , $26 million and $51 million for the three months ended June 30, 2017 ; $4 million , $35 million , $51 million and $104 million for the six months ended June 30, 2017 ; a negligible amount, $18 million , $27 million and $36 million for the three months ended June 30, 2016 ; and $3 million , $35 million , $54 million and $66 million for the six months ended June 30, 2016 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG & Midstream, respectively. (2) Amounts for the six months ended June 30, 2016 reflect the adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2. (3) |
NEW ACCOUNTING STANDARDS (Polic
NEW ACCOUNTING STANDARDS (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION This is a combined report of Sempra Energy, SDG&E and SoCalGas. We provide separate information for SDG&E and SoCalGas as required. References in this report to “we,” “our” and “Sempra Energy Consolidated” are to Sempra Energy and its consolidated entities, unless otherwise indicated by the context. We have eliminated intercompany accounts and transactions within the consolidated financial statements of each reporting entity. Throughout this report, we refer to the following as Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements when discussed together or collectively: ▪ the Condensed Consolidated Financial Statements and related Notes of Sempra Energy and its subsidiaries and VIEs; ▪ the Condensed Consolidated Financial Statements and related Notes of SDG&E and its VIE; and ▪ the Condensed Financial Statements and related Notes of SoCalGas. We have prepared the Condensed Consolidated Financial Statements in conformity with U.S. GAAP and in accordance with the interim-period-reporting requirements of Form 10-Q. Results of operations for interim periods are not necessarily indicative of results for the entire year. We evaluated events and transactions that occurred after June 30, 2017 through the date the financial statements were issued and, in the opinion of management, the accompanying statements reflect all adjustments necessary for a fair presentation. These adjustments are only of a normal, recurring nature. All December 31, 2016 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2016 Consolidated Financial Statements in the Annual Report. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the interim-period-reporting provisions of U.S. GAAP and the SEC. We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. We follow the same accounting policies for interim reporting purposes. |
New Accounting Standards | 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. 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 will 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 served as the basis for accounting analysis and documentation of the impact of ASU 2014-09 on our revenue recognition. The majority of Sempra Energy’s revenues result from electric and natural gas service to Sempra Utilities’ customers. Sempra Energy does not anticipate that the ASUs will materially impact the amount and timing of consolidated revenues. However, we do anticipate changes to the presentation of revenues on our statements of operations and additional disclosures around the nature, amount, timing and uncertainty of our revenues and cash flows arising from contracts with customers. 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 ASUs. 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 that do not qualify for the practical expedient to estimate fair value using net asset value per share, 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. 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, except for equity investments without readily determinable fair values, for which the guidance will be applied prospectively. 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 and do not expect it to materially affect our financial condition, results of operations or cash flows. 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 plan to adopt the standard on January 1, 2019. As part of our evaluation, we formed a steering committee comprised of members from relevant Sempra Energy business units and are compiling our population of contracts. Based on our assessment to date, we have determined that we will elect the practical expedients available under the transition guidance described above. We continue to monitor outstanding issues currently being addressed by the Financial Accounting Standards Board, since conclusions it reaches may impact our application of this ASU. 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 and tax deficiencies 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. 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. The adoption did not impact the financial statements for the three months ended June 30, 2016, except as noted in the table below. The following financial statement line items for the six months ended June 30, 2016 were affected by the change in accounting principle: IMPACT FROM ADOPTION OF ASU 2016-09 (Dollars in millions, except per share amounts) Six months ended June 30, 2016 As previously reported Effect of adoption As adjusted Sempra Energy Consolidated: Condensed Consolidated Statement of Operations: Income tax expense $ (36 ) $ 34 $ (2 ) Net income 357 34 391 Earnings 335 34 369 Basic earnings per common share $ 1.34 $ 0.14 $ 1.48 Diluted earnings per common share $ 1.33 $ 0.14 $ 1.47 Weighted-average number of shares outstanding, diluted (thousands)(1) 251,686 89 251,775 Condensed Consolidated Statement of Comprehensive Income (Loss): Net income $ 357 $ 34 $ 391 Comprehensive income 312 34 346 Comprehensive income, after preferred dividends of subsidiary 311 34 345 Condensed Consolidated Statement of Cash Flows: Cash flows from operating activities: Net income $ 357 $ 34 $ 391 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes and investment tax credits (42 ) (34 ) (76 ) Other(2) 11 34 45 Net cash provided by operating activities 882 34 916 Cash flows from financing activities: Tax benefit related to share-based compensation 34 (34 ) — Net cash provided by financing activities 916 (34 ) 882 SDG&E: Condensed Consolidated Statement of Operations: Income tax expense $ (120 ) $ 7 $ (113 ) Net income 217 7 224 Earnings attributable to common shares 229 7 236 Condensed Consolidated Statement of Comprehensive Income (Loss): Net income $ 217 $ 7 $ 224 Comprehensive income 216 7 223 Condensed Consolidated Statement of Cash Flows: Cash flows from operating activities: Net income $ 217 $ 7 $ 224 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes and investment tax credits 26 (7 ) 19 SoCalGas: Condensed Statement of Operations: Income tax expense $ (58 ) $ 4 $ (54 ) Net income 195 4 199 Earnings attributable to common shares 194 4 198 Condensed Statement of Comprehensive Income (Loss): Net income/Comprehensive income $ 195 $ 4 $ 199 Condensed Statement of Cash Flows: Cash flows from operating activities: Net income $ 195 $ 4 $ 199 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes and investment tax credits 32 (4 ) 28 (1) For the three months ended June 30, 2016, we previously reported 251,938 shares; the effect of adoption of the ASU resulted in an “as adjusted” 252,036 shares. (2) For the six months ended June 30, 2016, we previously reported $33 million in Other, which was reduced to $11 million , as $22 million was reclassified to Impairment Losses to conform to current year presentation. 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 plan to adopt the standard in the fourth quarter of 2017. If we had adopted ASU 2016-15 effective January 1, 2017, there would have been no impact to the Sempra Energy, SDG&E or SoCalGas Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017, based on the timing of cash receipts and cash payments impacted by the ASU. 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 plan to adopt the standard in the fourth quarter of 2017. If we had adopted ASU 2016-18 effective January 1, 2017, cash and cash equivalents at the beginning of the period would have included restricted cash of $76 million and $12 million , and cash and cash equivalents at the end of the period would have included restricted cash of $87 million and $14 million in Sempra Energy’s and SDG&E’s Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017, respectively. 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 are to be applied on a prospective basis. We 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. Entities may apply a full retrospective or modified retrospective approach. Under a modified retrospective approach, entities are required to apply the guidance to any transactions that are not completed as of the adoption date. We will adopt the standard in conjunction with our adoption of ASU 2014-09 on January 1, 2018 using the modified retrospective transition method. ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”: |
Variable Interest Entity Policy | VARIABLE INTEREST ENTITIES We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based on qualitative and quantitative analyses, which assess ▪ the purpose and design of the VIE; ▪ the nature of the VIE’s risks and the risks we absorb; ▪ the power to direct activities that most significantly impact the economic performance of the VIE; and ▪ |
Noncontrolling Interest Policy | Ownership interests that are held by owners other than Sempra Energy and SDG&E in subsidiaries or entities consolidated by them are accounted for and reported as noncontrolling interests. As a result, noncontrolling interests are reported as a separate component of equity on the Condensed Consolidated Balance Sheets. Earnings or losses attributable to noncontrolling interests are separately identified on the Condensed Consolidated Statements of Operations, and comprehensive income or loss attributable to noncontrolling interests is separately identified on the Condensed Consolidated Statements of Comprehensive Income (Loss). |
Earnings Per Share Policy | Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.We discuss share-based compensation plans and related awards further in Note 8 of the Notes to Consolidated Financial Statements in the Annual Report. |
Interim period effective tax rate policy | Sempra Energy, SDG&E and SoCalGas record income taxes for interim periods utilizing a forecasted effective tax rate anticipated for the full year, as required by U.S. GAAP. The income tax effect of items that can be reliably forecasted is factored into the forecasted effective tax rate, and the impact is recognized proportionately over the year. Items that cannot be reliably forecasted (e.g., foreign currency translation and inflation adjustments, remeasurement of deferred tax asset valuation allowances, income tax expense or benefit associated with the gain or loss on sale or impairment of a book investment, resolution of prior years’ income tax items, and certain impacts of regulatory matters |
Flow-through rate-making treatment tax policy | For SDG&E and SoCalGas, the CPUC requires flow-through rate-making treatment for the current income tax benefit or expense arising from certain property-related and other temporary differences between the treatment for financial reporting and income tax, which will reverse over time. Under the regulatory accounting treatment required for these flow-through temporary differences, deferred income tax assets and liabilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which impacts the 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 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. |
Derivatives Policy | 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 or inflation. In certain cases, we apply the normal purchase or sale exception to derivative instruments and have other commodity contracts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. In all other cases, we record derivatives at fair value on the Condensed Consolidated Balance Sheets. We 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 Condensed Consolidated Statements of Cash Flows. HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated cash flows associated with revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that the future cash flows of a given revenue or expense item may vary, and other criteria. 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 Condensed Consolidated Statements of Operations are reflected in Cost of Electric Fuel and Purchased Power or in Cost of Natural Gas. ▪ SDG&E is allocated and may purchase CRRs, which serve to reduce the regional electricity price volatility risk that may result from local transmission capacity constraints. Unrealized gains and losses do not impact earnings, as they are offset by regulatory account balances. Realized gains and losses associated with CRRs, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. ▪ Sempra Mexico, 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 Condensed Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. Sempra Mexico may also use natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its Mexican distribution operations. These derivatives, which are recorded as commodity costs that are offset by regulatory account balances and recovered in rates, are recognized in Cost of Natural Gas on the Condensed Consolidated Statements of Operations. ▪ From time to time, our various businesses, including the California Utilities, may use other energy derivatives to hedge exposures such as the price of vehicle fuel. INTEREST RATE DERIVATIVES |
Fair Value Measurement Policy | Positive values between two locations represent expected future reductions in congestion costs, whereas negative values between two locations represent expected future charges. Valuation of our CRRs is sensitive to a change in auction price. If auction prices at one location increase (decrease) relative to another location, this could result in a higher (lower) fair value measurement. We summarize CRR volumes in Note 7.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.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 certain other long-term amounts due from unconsolidated affiliates 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 debt using an income approach based on the present value of estimated future cash flows discounted at rates available for similar securities (Level 3).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 7. Realized gains and losses associated with CRRs and long-term electricity positions, which are included in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Unrealized gains and losses are recorded as regulatory assets and liabilities and therefore do not affect earnings. FAIR VALUE OF FINANCIAL INSTRUMENTS We have not changed the valuation techniques or types of inputs we use to measure recurring fair value during the six months ended June 30, 2017 . The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 7 under “Financial Statement Presentation.” The determination of fair values, shown in the tables below, incorporates various factors, including but not limited to, the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests). Our financial assets and liabilities that were accounted for at fair value on a recurring basis at June 30, 2017 and December 31, 2016 in the tables below include the following: ▪ Nuclear decommissioning trusts reflect the assets of SDG&E’s NDT, excluding cash balances. A third party trustee values the trust assets using prices from a pricing service based on a market approach. We validate these prices by comparison to prices from other independent data sources. Securities are valued using quoted prices listed on nationally recognized securities exchanges or based on closing prices reported in the active market in which the identical security is traded (Level 1). Other securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2). ▪ For commodity contracts, interest rate derivatives and foreign exchange instruments, we primarily use a market approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs and long-term, fixed-price electricity positions at SDG&E, as we discuss below in “Level 3 Information.” ▪ Rabbi Trust investments include marketable securities that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1). These investments in marketable securities were negligible at both June 30, 2017 and December 31, 2016 |
Segment Policy | 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, electric, LNG, LPG, ethane and liquid fuels infrastructure, and has marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico. 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, a terminal for the import and export of LNG and sale of natural gas, and natural gas pipelines and storage facilities, 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. We discuss these divestitures in Note 3 of the Notes to Consolidated Financial Statements in the Annual Report. We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. The California Utilities’ operations are based on rates set by the CPUC and the FERC. We describe the accounting policies of all of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. |
Legal Costs Policy | LEGAL PROCEEDINGSWe 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. |
NEW ACCOUNTING STANDARDS (Table
NEW ACCOUNTING STANDARDS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncement Impact | The following financial statement line items for the six months ended June 30, 2016 were affected by the change in accounting principle: IMPACT FROM ADOPTION OF ASU 2016-09 (Dollars in millions, except per share amounts) Six months ended June 30, 2016 As previously reported Effect of adoption As adjusted Sempra Energy Consolidated: Condensed Consolidated Statement of Operations: Income tax expense $ (36 ) $ 34 $ (2 ) Net income 357 34 391 Earnings 335 34 369 Basic earnings per common share $ 1.34 $ 0.14 $ 1.48 Diluted earnings per common share $ 1.33 $ 0.14 $ 1.47 Weighted-average number of shares outstanding, diluted (thousands)(1) 251,686 89 251,775 Condensed Consolidated Statement of Comprehensive Income (Loss): Net income $ 357 $ 34 $ 391 Comprehensive income 312 34 346 Comprehensive income, after preferred dividends of subsidiary 311 34 345 Condensed Consolidated Statement of Cash Flows: Cash flows from operating activities: Net income $ 357 $ 34 $ 391 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes and investment tax credits (42 ) (34 ) (76 ) Other(2) 11 34 45 Net cash provided by operating activities 882 34 916 Cash flows from financing activities: Tax benefit related to share-based compensation 34 (34 ) — Net cash provided by financing activities 916 (34 ) 882 SDG&E: Condensed Consolidated Statement of Operations: Income tax expense $ (120 ) $ 7 $ (113 ) Net income 217 7 224 Earnings attributable to common shares 229 7 236 Condensed Consolidated Statement of Comprehensive Income (Loss): Net income $ 217 $ 7 $ 224 Comprehensive income 216 7 223 Condensed Consolidated Statement of Cash Flows: Cash flows from operating activities: Net income $ 217 $ 7 $ 224 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes and investment tax credits 26 (7 ) 19 SoCalGas: Condensed Statement of Operations: Income tax expense $ (58 ) $ 4 $ (54 ) Net income 195 4 199 Earnings attributable to common shares 194 4 198 Condensed Statement of Comprehensive Income (Loss): Net income/Comprehensive income $ 195 $ 4 $ 199 Condensed Statement of Cash Flows: Cash flows from operating activities: Net income $ 195 $ 4 $ 199 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes and investment tax credits 32 (4 ) 28 (1) For the three months ended June 30, 2016, we previously reported 251,938 shares; the effect of adoption of the ASU resulted in an “as adjusted” 252,036 shares. (2) For the six months ended June 30, 2016, we previously reported $33 million in Other, which was reduced to $11 million , as $22 million was reclassified to Impairment Losses to conform to current year presentation. |
ACQUISITION AND DIVESTITURE A21
ACQUISITION AND DIVESTITURE ACTIVITY (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Assets Held for Sale and Deconsolidation of Subsidiary Table | At June 30, 2017 , 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 JUNE 30, 2017 (Dollars in millions) Termoeléctrica de Mexicali Inventories $ 10 Other current assets 19 Property, plant and equipment, net 55 Other noncurrent assets 25 Total assets held for sale $ 109 Accounts payable $ 11 Other current liabilities 4 Asset retirement obligations 5 Other noncurrent liabilities 27 Total liabilities held for sale $ 47 |
OTHER FINANCIAL DATA (Tables)
OTHER FINANCIAL DATA (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventory Table | The components of inventories by segment are as follows: INVENTORY BALANCES (Dollars in millions) Natural gas Liquefied natural gas Materials and supplies Total June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 June 30, December 31, 2016 June 30, December 31, 2016 SDG&E $ 1 $ 2 $ — $ — $ 88 $ 78 $ 89 $ 80 SoCalGas(1) — 11 — — 45 47 45 58 Sempra South American Utilities — — — — 33 27 33 27 Sempra Mexico — — 12 6 2 1 14 7 Sempra Renewables — — — — 4 4 4 4 Sempra LNG & Midstream 51 79 3 3 — — 54 82 Sempra Energy Consolidated $ 52 $ 92 $ 15 $ 9 $ 172 $ 157 $ 239 $ 258 (1) At June 30, 2017 and December 31, 2016 |
Schedule of Greenhouse Gas Allowances and Obligations Table | The Condensed Consolidated Balance Sheets include the following amounts associated with GHG allowances and obligations. GHG ALLOWANCES AND OBLIGATIONS (Dollars in millions) Sempra Energy SDG&E SoCalGas June 30, 2017 December 31, 2016 June 30, 2017 December 31, June 30, 2017 December 31, Assets: Other current assets $ 40 $ 40 $ 16 $ 16 $ 24 $ 24 Sundry 334 295 190 182 140 109 Total assets $ 374 $ 335 $ 206 $ 198 $ 164 $ 133 Liabilities: Other current liabilities $ 40 $ 40 $ 16 $ 16 $ 24 $ 24 Deferred credits and other 202 171 88 72 111 96 Total liabilities $ 242 $ 211 $ 104 $ 88 $ 135 $ 120 |
Variable Interest Entity Table | The Condensed Consolidated Statements of Operations of Sempra Energy and SDG&E include the following amounts associated with Otay Mesa VIE. The amounts are net of eliminations of transactions between SDG&E and Otay Mesa VIE. The captions in the table below correspond to SDG&E’s Condensed Consolidated Statements of Operations. AMOUNTS ASSOCIATED WITH OTAY MESA VIE (Dollars in millions) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Operating expenses Cost of electric fuel and purchased power $ (21 ) $ (17 ) $ (39 ) $ (34 ) Operation and maintenance 5 15 9 19 Depreciation and amortization 7 10 14 17 Total operating expenses (9 ) 8 (16 ) 2 Operating income (loss) 9 (8 ) 16 (2 ) Interest expense (5 ) (5 ) (10 ) (10 ) Income (loss) before income taxes/Net income (loss) 4 (13 ) 6 (12 ) (Earnings) losses attributable to noncontrolling interest (4 ) 13 (6 ) 12 Earnings attributable to common shares $ — $ — $ — $ — AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS (Dollars in millions) Three months ended June 30, 2017 Six months ended June 30, 2017 REVENUES Energy-related businesses $ 18 $ 31 EXPENSES Operation and maintenance (7 ) (9 ) Depreciation and amortization (8 ) (16 ) Income before income taxes 3 6 Income tax expense (4 ) (6 ) Net loss (1 ) — Losses attributable to noncontrolling interests(1) 7 10 Earnings $ 6 $ 10 (1) Net income or loss attributable to the noncontrolling interests is computed using the HLBV method and is not based on ownership percentages. |
Net Periodic Benefit Cost Table | The following three tables provide the components of net periodic benefit cost: NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Pension benefits Other postretirement benefits Three months ended June 30, 2017 2016 2017 2016 Service cost $ 29 $ 27 $ 5 $ 6 Interest cost 37 40 11 11 Expected return on assets (40 ) (41 ) (17 ) (18 ) Amortization of: Prior service cost 2 3 — — Actuarial loss 8 7 — — Regulatory adjustment (29 ) (28 ) 2 2 Total net periodic benefit cost $ 7 $ 8 $ 1 $ 1 Six months ended June 30, 2017 2016 2017 2016 Service cost $ 57 $ 55 $ 11 $ 11 Interest cost 74 80 20 22 Expected return on assets (80 ) (83 ) (33 ) (35 ) Amortization of: Prior service cost 5 6 — — Actuarial loss (gain) 16 13 (1 ) — Regulatory adjustment (41 ) (56 ) 4 4 Total net periodic benefit cost $ 31 $ 15 $ 1 $ 2 NET PERIODIC BENEFIT COST – SDG&E (Dollars in millions) Pension benefits Other postretirement benefits Three months ended June 30, 2017 2016 2017 2016 Service cost $ 7 $ 8 $ 2 $ 1 Interest cost 10 11 2 2 Expected return on assets (13 ) (13 ) (4 ) (2 ) Amortization of: Prior service cost 1 1 1 1 Actuarial loss (gain) 2 2 — (1 ) Regulatory adjustment (7 ) (8 ) (1 ) (1 ) Total net periodic benefit cost $ — $ 1 $ — $ — Six months ended June 30, 2017 2016 2017 2016 Service cost $ 15 $ 15 $ 3 $ 2 Interest cost 19 21 4 4 Expected return on assets (24 ) (25 ) (7 ) (5 ) Amortization of: Prior service cost 1 1 2 2 Actuarial loss (gain) 4 5 — (1 ) Regulatory adjustment (14 ) (15 ) (2 ) (2 ) Total net periodic benefit cost $ 1 $ 2 $ — $ — NET PERIODIC BENEFIT COST – SOCALGAS (Dollars in millions) Pension benefits Other postretirement benefits Three months ended June 30, 2017 2016 2017 2016 Service cost $ 18 $ 18 $ 3 $ 3 Interest cost 24 25 8 9 Expected return on assets (25 ) (27 ) (13 ) (14 ) Amortization of: Prior service cost (credit) 2 2 — (1 ) Actuarial loss (gain) 4 2 (1 ) — Regulatory adjustment (22 ) (20 ) 3 3 Total net periodic benefit cost $ 1 $ — $ — $ — Six months ended June 30, 2017 2016 2017 2016 Service cost $ 36 $ 35 $ 7 $ 7 Interest cost 48 50 15 17 Expected return on assets (51 ) (52 ) (26 ) (28 ) Amortization of: Prior service cost (credit) 4 4 (1 ) (2 ) Actuarial loss (gain) 8 5 (1 ) — Regulatory adjustment (27 ) (41 ) 6 6 Total net periodic benefit cost $ 18 $ 1 $ — $ — |
Contributions to Benefit Plans Table | The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2017: BENEFIT PLAN CONTRIBUTIONS (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Contributions through June 30, 2017: Pension plans $ 28 $ 2 $ 17 Other postretirement benefit plans 1 — — Total expected contributions in 2017: Pension plans $ 174 $ 32 $ 90 Other postretirement benefit plans 8 4 1 |
Earnings Per Share Computations Table | The following table provides EPS computations for the three months and six months ended June 30, 2017 and 2016 . Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. EARNINGS PER SHARE COMPUTATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended June 30, Six months ended June 30, 2017 2016(1) 2017 2016(1) Numerator: Earnings/Income attributable to common shares $ 259 $ 16 $ 700 $ 369 Denominator: Weighted-average common shares outstanding for basic EPS(2) 251,447 250,096 251,290 249,915 Dilutive effect of stock options, RSAs and RSUs(3) 1,375 1,940 1,319 1,860 Weighted-average common shares outstanding for diluted EPS 252,822 252,036 252,609 251,775 EPS: Basic $ 1.03 $ 0.06 $ 2.79 $ 1.48 Diluted 1.03 0.06 2.77 1.47 (1) As adjusted for the adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2. (2) Includes 608 and 568 average fully vested RSUs held in our Deferred Compensation Plan for the three months ended June 30, 2017 and 2016 , respectively, and 604 and 562 for the six months ended June 30, 2017 and 2016, respectively. These fully vested RSUs are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued. (3) Due to market fluctuations of both Sempra Energy 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 of the Notes to Consolidated Financial Statements in the Annual Report, dilutive RSUs may vary widely from period-to-period. |
Capitalized Financing Costs Table | Interest capitalized and AFUDC are as follows: CAPITALIZED FINANCING COSTS (Dollars in millions) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Sempra Energy Consolidated $ 62 $ 58 $ 144 $ 110 SDG&E 21 17 41 32 SoCalGas 15 14 30 27 |
Schedule of Accumulated Other Comprehensive Income (Loss) Table | The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to noncontrolling interests: 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) Three months ended June 30, 2017 and 2016 Sempra Energy Consolidated: Balance as of March 31, 2017 $ (481 ) $ (121 ) $ (94 ) $ (696 ) OCI before reclassifications 3 (26 ) — (23 ) Amounts reclassified from AOCI — — 1 1 Net OCI 3 (26 ) 1 (22 ) Balance as of June 30, 2017 $ (478 ) $ (147 ) $ (93 ) $ (718 ) . Balance as of March 31, 2016 $ (514 ) $ (221 ) $ (86 ) $ (821 ) OCI before reclassifications 11 (48 ) — (37 ) Amounts reclassified from AOCI — 5 1 6 Net OCI 11 (43 ) 1 (31 ) Balance as of June 30, 2016 $ (503 ) $ (264 ) $ (85 ) $ (852 ) SDG&E: Balance as of March 31, 2017 and June 30, 2017 $ (8 ) $ (8 ) Balance as of March 31, 2016 and June 30, 2016 $ (8 ) $ (8 ) SoCalGas: Balance as of March 31, 2017 $ (13 ) $ (9 ) $ (22 ) Amounts reclassified from AOCI — 1 1 Net OCI — 1 1 Balance as of June 30, 2017 $ (13 ) $ (8 ) $ (21 ) Balance as of March 31, 2016 and June 30, 2016 $ (14 ) $ (5 ) $ (19 ) (1) All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) (Dollars in millions) Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Total accumulated other comprehensive income (loss) Six months ended June 30, 2017 and 2016 Sempra Energy Consolidated: Balance as of December 31, 2016 $ (527 ) $ (125 ) $ (96 ) $ (748 ) OCI before reclassifications 49 (28 ) — 21 Amounts reclassified from AOCI — 6 3 9 Net OCI 49 (22 ) 3 30 Balance as of June 30, 2017 $ (478 ) $ (147 ) $ (93 ) $ (718 ) . Balance as of December 31, 2015 $ (582 ) $ (137 ) $ (87 ) $ (806 ) OCI before reclassifications 79 (130 ) — (51 ) Amounts reclassified from AOCI — 3 2 5 Net OCI 79 (127 ) 2 (46 ) Balance as of June 30, 2016 $ (503 ) $ (264 ) $ (85 ) $ (852 ) SDG&E: Balance as of December 31, 2016 and June 30, 2017 $ (8 ) $ (8 ) Balance as of December 31, 2015 and June 30, 2016 $ (8 ) $ (8 ) SoCalGas: Balance as of December 31, 2016 $ (13 ) $ (9 ) $ (22 ) Amounts reclassified from AOCI — 1 1 Net OCI — 1 1 Balance as of June 30, 2017 $ (13 ) $ (8 ) $ (21 ) Balance as of December 31, 2015 and June 30, 2016 $ (14 ) $ (5 ) $ (19 ) (1) |
Reclassifications out of AOCI Table | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Details about accumulated other Amounts reclassified Affected line item on Condensed Three months ended June 30, 2017 2016 Sempra Energy Consolidated: Financial instruments: Interest rate and foreign exchange instruments $ (1 ) $ 3 Interest Expense Interest rate instruments 2 2 Equity Earnings (Losses), Before Income Tax Interest rate and foreign exchange instruments 3 5 Equity Earnings (Losses), Net of Income Tax Foreign exchange instruments (1 ) — Revenues: Energy-Related Businesses Total before income tax 3 10 (1 ) (1 ) Income Tax (Expense) Benefit Net of income tax 2 9 (2 ) (4 ) Losses (Earnings) Attributable to Noncontrolling Interests $ — $ 5 Pension and other postretirement benefits: Amortization of actuarial loss $ 2 $ 2 See note (1) below (1 ) (1 ) Income Tax (Expense) Benefit Net of income tax $ 1 $ 1 Total reclassifications for the period, net of tax $ 1 $ 6 SDG&E: Financial instruments: Interest rate instruments $ 3 $ 3 Interest Expense (3 ) (3 ) (Earnings) Losses Attributable to Noncontrolling Interest Total reclassifications for the period $ — $ — SoCalGas: Pension and other postretirement benefits: Amortization of actuarial loss $ 1 $ — See note (1) below Total reclassifications for the period, net of tax $ 1 $ — (1) Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above). RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Details about accumulated other Amounts reclassified Affected line item on Condensed Six months ended June 30, 2017 2016 Sempra Energy Consolidated: Financial instruments: Interest rate and foreign exchange instruments $ (4 ) $ 7 Interest Expense Interest rate instruments 4 5 Equity Earnings (Losses), Before Income Tax Interest rate and foreign exchange instruments 5 6 Equity Earnings (Losses), Net of Income Tax Foreign exchange instruments 1 — Revenues: Energy-Related Businesses Commodity contracts not subject to rate recovery 9 (7 ) Revenues: Energy-Related Businesses Total before income tax 15 11 (5 ) (1 ) Income Tax (Expense) Benefit Net of income tax 10 10 (4 ) (7 ) Losses (Earnings) Attributable to Noncontrolling Interests $ 6 $ 3 Pension and other postretirement benefits: Amortization of actuarial loss $ 5 $ 4 See note (1) below (2 ) (2 ) Income Tax (Expense) Benefit Net of income tax $ 3 $ 2 Total reclassifications for the period, net of tax $ 9 $ 5 SDG&E: Financial instruments: Interest rate instruments $ 6 $ 6 Interest Expense (6 ) (6 ) (Earnings) Losses Attributable to Noncontrolling Interest Total reclassifications for the period $ — $ — SoCalGas: Pension and other postretirement benefits: Amortization of actuarial loss $ 1 $ — See note (1) below Total reclassifications for the period, net of tax $ 1 $ — (1) |
Shareholders' Equity and Noncontrolling Interests Table | The following tables provide reconciliations of changes in Sempra Energy’s, SDG&E’s and SoCalGas’ shareholders’ equity and noncontrolling interests for the six months ended June 30, 2017 and 2016 . SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Sempra Energy ’ equity(1) Non- Total Balance at December 31, 2016 $ 12,951 $ 2,290 $ 15,241 Comprehensive income 731 8 739 Preferred dividends of subsidiary (1 ) — (1 ) Share-based compensation expense 23 — 23 Common stock dividends declared (413 ) — (413 ) Issuances of common stock 55 — 55 Repurchases of common stock (14 ) — (14 ) Equity contributed by noncontrolling interest — 1 1 Distributions to noncontrolling interests — (26 ) (26 ) Balance at June 30, 2017 $ 13,332 $ 2,273 $ 15,605 Balance at December 31, 2015 $ 11,809 $ 770 $ 12,579 Cumulative-effect adjustment from change in accounting principle 107 — 107 Comprehensive income 324 22 346 Preferred dividends of subsidiary (1 ) — (1 ) Share-based compensation expense 24 — 24 Common stock dividends declared (377 ) — (377 ) Issuances of common stock 56 — 56 Repurchases of common stock (54 ) — (54 ) Equity contributed by noncontrolling interest — 1 1 Distributions to noncontrolling interests — (11 ) (11 ) Balance at June 30, 2016 $ 11,888 $ 782 $ 12,670 (1) Amounts for the six months ended June 30, 2016 reflect the adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2. (2) Noncontrolling interests include the preferred stock of SoCalGas and other noncontrolling interests as listed in the table below under “Other Noncontrolling Interests.” SHAREHOLDER’S EQUITY AND NONCONTROLLING INTEREST – SDG&E (Dollars in millions) SDG&E ’ s Non- Total Balance at December 31, 2016 $ 5,641 $ 37 $ 5,678 Comprehensive income 304 10 314 Common stock dividends declared (175 ) — (175 ) Equity contributed by noncontrolling interest — 1 1 Distributions to noncontrolling interest — (14 ) (14 ) Balance at June 30, 2017 $ 5,770 $ 34 $ 5,804 Balance at December 31, 2015 $ 5,223 $ 53 $ 5,276 Cumulative-effect adjustment from change in accounting principle 23 — 23 Comprehensive income (loss) 236 (13 ) 223 Common stock dividends declared (175 ) — (175 ) Distributions to noncontrolling interest — (3 ) (3 ) Balance at June 30, 2016 $ 5,307 $ 37 $ 5,344 (1) Amounts for the six months ended June 30, 2016 reflect the adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2. SHAREHOLDERS’ EQUITY – SOCALGAS (Dollars in millions) Total Balance at December 31, 2016 $ 3,510 Comprehensive income 263 Preferred stock dividends declared (1 ) Balance at June 30, 2017 $ 3,772 Balance at December 31, 2015 $ 3,149 Cumulative-effect adjustment from change in accounting principle 15 Comprehensive income 199 Preferred stock dividends declared (1 ) Balance at June 30, 2016 $ 3,362 (1) Amounts for the six months ended June 30, 2016 reflect the adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2. |
Ownership Interests Held By Others Table | At June 30, 2017 and December 31, 2016 , we reported the following noncontrolling ownership interests held by others (not including preferred shareholders) recorded in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Condensed Consolidated Balance Sheets: OTHER NONCONTROLLING INTERESTS (Dollars in millions) Percent ownership held by noncontrolling interests Equity held by noncontrolling interests June 30, December 31, June 30, December 31, SDG&E: Otay Mesa VIE 100 % 100 % $ 34 $ 37 Sempra South American Utilities: Chilquinta Energía subsidiaries(1) 22.9 – 43.4 23.1 – 43.4 22 22 Luz del Sur 16.4 16.4 184 173 Tecsur S.A. 9.8 9.8 3 4 Sempra Mexico: IEnova 33.6 33.6 1,514 1,524 Sempra Renewables: Tax equity arrangement – wind(2) NA NA 91 92 Tax equity arrangement – solar(2) NA NA 363 376 Sempra LNG & Midstream: Bay Gas 9.1 9.1 28 27 Liberty Gas Storage, LLC 23.3 23.3 13 14 Southern Gas Transmission Company 49.0 49.0 1 1 Total Sempra Energy $ 2,253 $ 2,270 (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) |
Transactions with Affiliates Table | 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) June 30, 2017 December 31, 2016 Sempra Energy Consolidated: Total due from various unconsolidated affiliates – current $ 26 $ 26 Sempra South American Utilities(1): Eletrans – 4% Note(2) $ 90 $ 96 Other related party receivables 1 1 Sempra Mexico(1): IMG – Note due March 15, 2022(3) 177 — Affiliate of joint venture with Ductos y Energéticos del Norte – Notes due 92 90 Energía Sierra Juárez – Note(5) 13 14 Total due from unconsolidated affiliates – noncurrent $ 373 $ 201 Total due to various unconsolidated affiliates – current $ (11 ) $ (11 ) SDG&E: Sempra Energy(6) $ — $ 3 SoCalGas 1 — Various affiliates 1 1 Total due from various unconsolidated affiliates – current $ 2 $ 4 Sempra Energy $ (18 ) $ — SoCalGas — (8 ) Various affiliates (8 ) (7 ) Total due to various unconsolidated affiliates – current $ (26 ) $ (15 ) Income taxes due from Sempra Energy(7) $ 132 $ 159 SoCalGas: Sempra Energy(8) $ 55 $ — SDG&E — 8 Various affiliates 1 — Total due from unconsolidated affiliates – current $ 56 $ 8 Sempra Energy $ — $ (28 ) SDG&E (1 ) — Total due to unconsolidated affiliates – current $ (1 ) $ (28 ) Income taxes due from Sempra Energy(7) $ 6 $ 5 (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, which includes, collectively, joint ventures of Chilquinta Energía. (3) Mexican peso-denominated revolving line of credit for up to $9.0 billion Mexican pesos or approximately $500 million U.S. dollar-equivalent, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 basis points ( 9.60 percent at June 30, 2017), to finance construction of the natural gas marine pipeline. (4) Four U.S. dollar-denominated loans, at variable interest rates based on the 30-day LIBOR plus 450 basis points ( 5.72 percent at June 30, 2017 ), to finance the Los Ramones Norte pipeline. (5) U.S. dollar-denominated loan, at a variable interest rate based on the 30-day LIBOR plus 637.5 basis points ( 7.60 percent at June 30, 2017 ) with no stated maturity date, to finance the first phase of the Energía Sierra Juárez wind project, which is a joint venture of IEnova. (6) At December 31, 2016 , net receivable included outstanding advances to Sempra Energy of $31 million at an interest rate of 0.68 percent. (7) 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. (8) At June 30, 2017 , net receivable included outstanding advances to Sempra Energy of $84 million at an interest rate of 1.23 percent. Revenues and cost of sales from unconsolidated affiliates are as follows: REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES (Dollars in millions) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Revenues: Sempra Energy Consolidated $ 8 $ 5 $ 15 $ 10 SDG&E 2 — 4 3 SoCalGas 17 18 35 35 Cost of Sales: Sempra Energy Consolidated $ 14 $ 20 $ 28 $ 50 SDG&E 19 16 39 30 |
Other Income and Expense Table | Other Income, Net on the Condensed Consolidated Statements of Operations consists of the following: OTHER INCOME, NET (Dollars in millions) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Sempra Energy Consolidated: Allowance for equity funds used during construction $ 40 $ 30 $ 112 $ 57 Investment gains(1) 14 10 30 20 Gains (losses) on interest rate and foreign exchange instruments, net 31 (15 ) 94 (12 ) Foreign currency transaction gains (losses) 7 (5 ) 17 (7 ) Electrical infrastructure relocation income(2) — 2 — 3 Regulatory interest, net(3) — 1 2 3 Sundry, net (1 ) — 5 8 Total $ 91 $ 23 $ 260 $ 72 SDG&E: Allowance for equity funds used during construction $ 16 $ 13 $ 31 $ 24 Regulatory interest, net(3) — 1 2 3 Sundry, net (1 ) (1 ) — — Total $ 15 $ 13 $ 33 $ 27 SoCalGas: Allowance for equity funds used during construction $ 11 $ 10 $ 22 $ 20 Sundry, net (2 ) (4 ) (2 ) (4 ) Total $ 9 $ 6 $ 20 $ 16 (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 Condensed Consolidated Statements of Operations. (2) Income at Luz del Sur associated with the relocation of electrical infrastructure. (3) |
Income Tax Expense and Effective Income Tax Rates Table | INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES (Dollars in millions) Income tax expense Effective income tax rate Income tax (benefit) expense Effective income tax rate Three months ended June 30, 2017 2016 Sempra Energy Consolidated $ 167 40 % $ (106 ) 95 % SDG&E 54 26 48 36 SoCalGas 19 24 (29 ) 100 Six months ended June 30, 2017 2016(1) Sempra Energy Consolidated $ 462 39 % $ 2 1 % SDG&E 144 32 113 34 SoCalGas 117 31 54 21 (1) |
DEBT AND CREDIT FACILITIES (Tab
DEBT AND CREDIT FACILITIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | CREDIT FACILITIES IN SOUTH AMERICA AND MEXICO (U.S. dollar-equivalent in millions) At June 30, 2017 Denominated in Total facility Amount outstanding Available unused credit Sempra South American Utilities(1): Peru(2) Peruvian sol $ 379 $ (147 ) (3) $ 232 Chile Chilean peso 115 — 115 Sempra Mexico: IEnova(4) U.S. dollar 1,170 (516 ) 654 Total $ 1,664 $ (663 ) $ 1,001 (1) The credit facilities were entered into to finance working capital and for general corporate purposes and expire between 2017 and 2020. (2) The Peruvian facilities require a debt to equity ratio of no more than 170 percent , with which we were in compliance at June 30, 2017. (3) Includes bank guarantees of $4 million . PRIMARY U.S. COMMITTED LINES OF CREDIT (Dollars in millions) At June 30, 2017 Total facility Commercial paper outstanding(4) Available unused credit Sempra Energy(1) $ 1,000 $ — $ 1,000 Sempra Global(2) 2,335 (1,236 ) 1,099 California Utilities(3): SDG&E 750 (5 ) 745 SoCalGas 750 — 750 Less: combined limit of $1 billion for both utilities (500 ) — (500 ) 1,000 (5 ) 995 Total $ 4,335 $ (1,241 ) $ 3,094 (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. No letters of credit were outstanding at June 30, 2017. (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. No letters of credit were outstanding at June 30, 2017. |
DERIVATIVE FINANCIAL INSTRUME24
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Commodity Derivative Volumes Table | We summarize net energy derivative volumes at June 30, 2017 and December 31, 2016 as follows: NET ENERGY DERIVATIVE VOLUMES (Quantities in millions) Commodity Unit of measure June 30, December 31, California Utilities: SDG&E: Natural gas MMBtu 44 48 Electricity MWh 4 4 Congestion revenue rights MWh 42 48 SoCalGas – natural gas MMBtu — 1 Energy-Related Businesses: Sempra LNG & Midstream – natural gas MMBtu 14 31 Sempra Mexico – natural gas MMBtu 3 — |
Notional Amounts of Interest Rate Derivatives Table | At June 30, 2017 and December 31, 2016 , the net notional amounts of our interest rate derivatives, excluding joint ventures, were: INTEREST RATE DERIVATIVES (Dollars in millions) June 30, 2017 December 31, 2016 Notional debt Maturities Notional debt Maturities Sempra Energy Consolidated: Cash flow hedges(1) $ 897 2017-2032 $ 924 2017-2032 SDG&E: Cash flow hedges(1) 300 2017-2019 305 2017-2019 (1) Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. June 30, 2017 and December 31, 2016 , the net notional amounts of our foreign currency derivatives, excluding joint ventures, were: FOREIGN CURRENCY DERIVATIVES (Dollars in millions) June 30, 2017 December 31, 2016 Notional amount Maturities Notional amount Maturities Sempra Energy Consolidated: Cross-currency swaps $ 408 2017-2023 $ 408 2017-2023 Other foreign currency derivatives(1) 903 2017-2018 86 2017-2018 (1) In the first quarter of 2017, we entered into foreign currency derivatives with notional amounts totaling $850 million that expire in December 2017. |
Derivative Instruments on the Condensed Consolidated Balance Sheets Table | The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets at June 30, 2017 and December 31, 2016 , including the amount of cash collateral receivables that were not offset, as the cash collateral is in excess of liability positions. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) June 30, 2017 Current Other Current liabilities: Deferred Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments(3) $ 1 $ — $ (56 ) $ (153 ) Derivatives not designated as hedging instruments: Foreign exchange instruments 130 — — — Commodity contracts not subject to rate recovery 43 8 (33 ) (5 ) Associated offsetting commodity contracts (29 ) (3 ) 29 3 Commodity contracts subject to rate recovery 15 71 (59 ) (147 ) Associated offsetting commodity contracts (1 ) — 1 — Associated offsetting cash collateral — — 15 10 Net amounts presented on the balance sheet 159 76 (103 ) (292 ) Additional cash collateral for commodity contracts not subject to rate recovery 10 — — — Additional cash collateral for commodity contracts subject to rate recovery 17 — — — Total(4) $ 186 $ 76 $ (103 ) $ (292 ) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments(3) $ — $ — $ (13 ) $ (7 ) Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery 14 71 (58 ) (147 ) Associated offsetting commodity contracts (1 ) — 1 — Associated offsetting cash collateral — — 15 10 Net amounts presented on the balance sheet 13 71 (55 ) (144 ) Additional cash collateral for commodity contracts subject to rate recovery 16 — — — Total(4) $ 29 $ 71 $ (55 ) $ (144 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 1 $ — $ (1 ) $ — Net amounts presented on the balance sheet 1 — (1 ) — Additional cash collateral for commodity contracts not subject to rate recovery 1 — — — Additional cash collateral for commodity contracts subject to rate recovery 1 — — — Total $ 3 $ — $ (1 ) $ — (1) Included in Current Assets: Other for SoCalGas. (2) Included in Current Liabilities: Other for SoCalGas. (3) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. (4) Normal purchase contracts previously measured at fair value are excluded. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2016 Current Other Current liabilities: Deferred 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. |
Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table | The table below includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI for the three months and six months ended June 30 : CASH FLOW HEDGE IMPACTS (Dollars in millions) Pretax (loss) gain recognized in OCI Pretax gain (loss) reclassified from AOCI into earnings Three months ended June 30, Three months ended June 30, 2017 2016 Location 2017 2016 Sempra Energy Consolidated: Interest rate and foreign exchange instruments(1) $ (8 ) $ 1 Interest Expense $ 1 $ (3 ) Interest rate instruments (32 ) (70 ) Equity Earnings (Losses), Before Income Tax (2 ) (2 ) Interest rate and foreign exchange instruments (9 ) (15 ) Equity Earnings (Losses), Net of Income Tax (3 ) (5 ) Foreign exchange instruments (1 ) — Revenues: Energy- Related Businesses 1 — Commodity contracts not subject to rate recovery — (5 ) Revenues: Energy- Related Businesses — — Total(2) $ (50 ) $ (89 ) $ (3 ) $ (10 ) SDG&E: Interest rate instruments(1)(3) $ (2 ) $ (2 ) Interest Expense $ (3 ) $ (3 ) Six months ended June 30, Six months ended June 30, 2017 2016 Location 2017 2016 Sempra Energy Consolidated: Interest rate and foreign $ 8 $ (10 ) Interest Expense $ 4 $ (7 ) Interest rate instruments (37 ) (207 ) Equity Earnings (Losses), (4 ) (5 ) Interest rate and foreign (18 ) (33 ) Equity Earnings (Losses), Net of Income Tax (5 ) (6 ) Foreign exchange instruments (10 ) — Revenues: Energy- (1 ) — Commodity contracts not subject 3 (4 ) Revenues: Energy- (9 ) 7 Total(2) $ (54 ) $ (254 ) $ (15 ) $ (11 ) SDG&E: Interest rate instruments(1)(3) $ (2 ) $ (7 ) Interest Expense $ (6 ) $ (6 ) (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. (2) There was $2 million of losses from hedge ineffectiveness related to these cash flow hedges in each of the three months and six months ended June 30, 2017 and negligible amounts for the same periods in 2016 . (3) There was negligible hedge ineffectiveness related to these cash flow hedges in the three months and six months ended June 30, 2017 and 2016. |
Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table | The effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations for the three months and six months ended June 30 were: UNDESIGNATED DERIVATIVE IMPACTS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended Six months ended Location 2017 2016 2017 2016 Sempra Energy Consolidated: Foreign exchange instruments Other Income, Net $ 32 $ (15 ) $ 97 $ (12 ) Foreign exchange instruments Equity Earnings (Losses), Net of Income Tax — — — 2 Commodity contracts not subject to rate recovery Revenues: Energy-Related Businesses 16 (24 ) 30 (29 ) Commodity contracts not subject to rate recovery Operation and Maintenance — 1 (1 ) 1 Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power 6 40 (23 ) 28 Commodity contracts subject to rate recovery Cost of Natural Gas — (1 ) — (2 ) Total $ 54 $ 1 $ 103 $ (12 ) SDG&E: Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power $ 6 $ 40 $ (23 ) $ 28 SoCalGas: Commodity contracts not subject to rate recovery Operation and Maintenance $ — $ — $ (1 ) $ — Commodity contracts subject to rate recovery Cost of Natural Gas — (1 ) — (2 ) Total $ — $ (1 ) $ (1 ) $ (2 ) three months and six months ended June 30 , 2016. There were no fair value hedges outstanding during the three months or six months ended June 30, 2017 . FAIR VALUE HEDGE IMPACTS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended Six months ended Location June 30, 2016 June 30, 2016 Sempra Energy Consolidated: Interest rate instruments Interest Expense $ 1 $ 3 Interest rate instruments Other Income, Net (2 ) (2 ) Total(1) $ (1 ) $ 1 (1) There was no hedge ineffectiveness in either the three months or six months ended June 30, 2016. 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. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measures Table | RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Fair value at June 30, 2017 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 494 $ 5 $ — $ — $ 499 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 49 8 — — 57 Municipal bonds — 263 — — 263 Other securities — 199 — — 199 Total debt securities 49 470 — — 519 Total nuclear decommissioning trusts(2) 543 475 — — 1,018 Interest rate and foreign exchange instruments — 131 — — 131 Commodity contracts not subject to rate recovery 7 12 — 10 29 Commodity contracts subject to rate recovery — 1 84 17 102 Total $ 550 $ 619 $ 84 $ 27 $ 1,280 Liabilities: Interest rate and foreign exchange instruments $ — $ 209 $ — $ — $ 209 Commodity contracts not subject to rate recovery 3 3 — — 6 Commodity contracts subject to rate recovery 25 6 174 (25 ) 180 Total $ 28 $ 218 $ 174 $ (25 ) $ 395 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 (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 June 30, 2017 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 494 $ 5 $ — $ — $ 499 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 49 8 — — 57 Municipal bonds — 263 — — 263 Other securities — 199 — — 199 Total debt securities 49 470 — — 519 Total nuclear decommissioning trusts(2) 543 475 — — 1,018 Commodity contracts subject to rate recovery — — 84 16 100 Total $ 543 $ 475 $ 84 $ 16 $ 1,118 Liabilities: Interest rate instruments $ — $ 20 $ — $ — $ 20 Commodity contracts subject to rate recovery 25 5 174 (25 ) 179 Total $ 25 $ 25 $ 174 $ (25 ) $ 199 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 (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 June 30, 2017 Level 1 Level 2 Level 3 Netting(1) Total Assets: Commodity contracts not subject to rate recovery $ — $ — $ — $ 1 $ 1 Commodity contracts subject to rate recovery — 1 — 1 2 Total $ — $ 1 $ — $ 2 $ 3 Liabilities: Commodity contracts subject to rate recovery $ — $ 1 $ — $ — $ 1 Total $ — $ 1 $ — $ — $ 1 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 (1) |
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) Three months ended June 30, 2017 2016 Balance at April 1 $ (96 ) $ 11 Realized and unrealized (losses) gains (3 ) 8 Settlements 9 5 Balance at June 30 $ (90 ) $ 24 Change in unrealized gains relating to instruments still held at June 30 $ 2 $ 9 Six months ended June 30, 2017 2016 Balance at January 1 $ (74 ) $ 19 Realized and unrealized (losses) gains (16 ) 7 Settlements — (2 ) Balance at June 30 $ (90 ) $ 24 Change in unrealized (losses) gains relating to instruments still held at June 30 $ (14 ) $ 9 |
Fair Value of Financial Instruments Table | The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets at June 30, 2017 and December 31, 2016 : FAIR VALUE OF FINANCIAL INSTRUMENTS (Dollars in millions) June 30, 2017 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates(1) $ 345 $ — $ 228 $ 92 $ 320 Total long-term debt(2)(3) 15,519 — 15,900 494 16,394 SDG&E: Total long-term debt(3)(4) $ 4,891 $ — $ 5,032 $ 300 $ 5,332 SoCalGas: Total long-term debt(5) $ 3,009 $ — $ 3,169 $ — $ 3,169 December 31, 2016 Carrying Fair value 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 (1) Excluding accumulated interest outstanding of $22 million and $17 million at June 30, 2017 and December 31, 2016 , respectively, and excluding foreign currency translation of $6 million on a Mexican peso-denominated loan at June 30, 2017. (2) Before reductions for unamortized discount (net of premium) and debt issuance costs of $114 million and $109 million at June 30, 2017 and December 31, 2016 , respectively, and excluding build-to-suit and capital lease obligations of $882 million and $383 million at June 30, 2017 and December 31, 2016 , respectively. We discuss our long-term debt in Note 6 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. (3) Level 3 instruments include $300 million and $305 million at June 30, 2017 and December 31, 2016 , respectively, related to Otay Mesa VIE. (4) Before reductions for unamortized discount and debt issuance costs of $48 million and $45 million at June 30, 2017 and December 31, 2016 , respectively, and excluding capital lease obligations of $737 million and $240 million at June 30, 2017 and December 31, 2016 , respectively. (5) Before reductions for unamortized discount and debt issuance costs of $25 million and $27 million at June 30, 2017 and December 31, 2016 , respectively, and excluding capital lease obligations of $1 million |
Nonrecurring Fair Value Measures Table | The following table summarizes significant inputs impacting this non-recurring fair value measure: NON-RECURRING FAIR VALUE MEASURE – 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 TdM $ 62 (1) Market approach Level 2 100% Purchase price offer 100% (1) |
SAN ONOFRE NUCLEAR GENERATING26
SAN ONOFRE NUCLEAR GENERATING STATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Public Utilities, General Disclosures [Abstract] | |
Schedule of Nuclear Decommissioning Trusts Investments | The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 8. NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At June 30, 2017: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies(1) $ 57 $ — $ — $ 57 Municipal bonds(2) 256 8 (1 ) 263 Other securities(3) 197 3 (1 ) 199 Total debt securities 510 11 (2 ) 519 Equity securities 196 305 (2 ) 499 Cash and cash equivalents 11 — — 11 Total $ 717 $ 316 $ (4 ) $ 1,029 At December 31, 2016: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 52 $ — $ — $ 52 Municipal bonds 203 4 (1 ) 206 Other securities 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 (1) Maturity dates are 2018-2047. (2) Maturity dates are 2017-2047. (3) Maturity dates are 2017-2066. |
Schedule of Sales of Securities By Nuclear Decommissioning Trusts | The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales: SALES OF SECURITIES (Dollars in millions) Three months ended Six months ended 2017 2016 2017 2016 Proceeds from sales(1) $ 466 $ 111 $ 823 $ 204 Gross realized gains 79 5 124 8 Gross realized losses (3 ) (3 ) (8 ) (11 ) (1) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments under the new PPA are as follows: FUTURE MINIMUM PAYMENTS – POWER PURCHASE AGREEMENT (Dollars in millions) 2017 $ — 2018 88 2019 105 2020 105 2021 105 Thereafter 1,706 Total minimum lease payments(1) 2,109 Less: interest(2) (1,559 ) Present value of net minimum lease payments $ 550 (1) This amount will be recorded over the life of the lease as Cost of Electric Fuel and Purchased Power on Sempra Energy’s and SDG&E’s Condensed Consolidated Statements of Operations. This expense will receive ratemaking treatment consistent with purchased-power costs, which are recovered in rates. (2) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | The following tables show selected information by segment from our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as “All other” in the following tables consist primarily of parent organizations. SEGMENT INFORMATION (Dollars in millions) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 REVENUES SDG&E $ 1,058 $ 992 $ 2,115 $ 1,983 SoCalGas 770 617 2,011 1,650 Sempra South American Utilities 381 385 793 785 Sempra Mexico 273 147 537 285 Sempra Renewables 26 6 48 13 Sempra LNG & Midstream 122 90 254 220 Intersegment revenues(1) (97 ) (81 ) (194 ) (158 ) Total $ 2,533 $ 2,156 $ 5,564 $ 4,778 INTEREST EXPENSE SDG&E $ 49 $ 48 $ 98 $ 96 SoCalGas 26 24 51 46 Sempra South American Utilities 11 11 20 20 Sempra Mexico 20 4 52 8 Sempra Renewables 4 — 8 — Sempra LNG & Midstream 9 10 20 22 All other 67 74 135 146 Intercompany eliminations (27 ) (29 ) (56 ) (53 ) Total $ 159 $ 142 $ 328 $ 285 INTEREST INCOME Sempra South American Utilities $ 6 $ 5 $ 11 $ 10 Sempra Mexico 3 1 5 3 Sempra Renewables 2 — 3 1 Sempra LNG & Midstream 12 17 29 33 Intercompany eliminations (15 ) (17 ) (34 ) (35 ) Total $ 8 $ 6 $ 14 $ 12 DEPRECIATION AND AMORTIZATION SDG&E $ 166 $ 158 $ 329 $ 317 SoCalGas 126 112 252 234 Sempra South American Utilities 13 14 26 27 Sempra Mexico 37 15 73 32 Sempra Renewables 10 2 19 3 Sempra LNG & Midstream 11 12 21 25 All other 5 1 8 4 Total $ 368 $ 314 $ 728 $ 642 INCOME TAX EXPENSE (BENEFIT)(2) SDG&E $ 54 $ 48 $ 144 $ 113 SoCalGas 19 (29 ) 117 54 Sempra South American Utilities 20 15 39 29 Sempra Mexico 102 (12 ) 244 28 Sempra Renewables (5 ) (9 ) (16 ) (22 ) Sempra LNG & Midstream 18 (99 ) 19 (128 ) All other (41 ) (20 ) (85 ) (72 ) Total $ 167 $ (106 ) $ 462 $ 2 SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 EQUITY EARNINGS (LOSSES) Earnings (losses) recorded before tax: Sempra Renewables $ 16 $ 11 $ 18 $ 18 Sempra LNG & Midstream 2 3 3 (26 ) Total $ 18 $ 14 $ 21 $ (8 ) Earnings (losses) recorded net of tax: Sempra South American Utilities $ — $ — $ 1 $ 2 Sempra Mexico — 33 (9 ) 48 Total $ — $ 33 $ (8 ) $ 50 EARNINGS (LOSSES)(2) SDG&E $ 149 $ 100 $ 304 $ 236 SoCalGas(3) 58 (1 ) 261 198 Sempra South American Utilities 45 43 92 81 Sempra Mexico (9 ) 57 39 75 Sempra Renewables 23 12 34 26 Sempra LNG & Midstream 27 (149 ) 28 (181 ) All other (34 ) (46 ) (58 ) (66 ) Total $ 259 $ 16 $ 700 $ 369 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 763 $ 602 SoCalGas 682 650 Sempra South American Utilities 77 82 Sempra Mexico 155 140 Sempra Renewables 100 457 Sempra LNG & Midstream 12 68 All other 13 7 Total $ 1,802 $ 2,006 June 30, 2017 December 31, 2016 ASSETS SDG&E $ 18,708 $ 17,719 SoCalGas 13,743 13,424 Sempra South American Utilities 3,750 3,591 Sempra Mexico 7,835 7,542 Sempra Renewables 2,349 3,644 Sempra LNG & Midstream 4,861 5,564 All other 660 475 Intersegment receivables (2,530 ) (4,173 ) Total $ 49,376 $ 47,786 EQUITY METHOD AND OTHER INVESTMENTS Sempra South American Utilities $ 20 $ — Sempra Mexico 234 180 Sempra Renewables 825 844 Sempra LNG & Midstream 977 997 All other 78 76 Total $ 2,134 $ 2,097 (1) Revenues for reportable segments include intersegment revenues of $3 million , $17 million , $26 million and $51 million for the three months ended June 30, 2017 ; $4 million , $35 million , $51 million and $104 million for the six months ended June 30, 2017 ; a negligible amount, $18 million , $27 million and $36 million for the three months ended June 30, 2016 ; and $3 million , $35 million , $54 million and $66 million for the six months ended June 30, 2016 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG & Midstream, respectively. (2) Amounts for the six months ended June 30, 2016 reflect the adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2. (3) |
NEW ACCOUNTING STANDARDS (Detai
NEW ACCOUNTING STANDARDS (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative-effect adjustment | $ 107 | |||||||
Weighted-average number of shares outstanding, diluted | 252,822,000 | 252,036,000 | [1] | 252,609,000 | 251,775,000 | [1] | ||
Income Statement [Abstract] | ||||||||
Income tax (expense) benefit | $ (167) | $ 106 | [1] | $ (462) | $ (2) | [1] | ||
Net Income | 248 | 27 | [1] | 700 | 391 | [1],[2] | ||
Earnings | $ 259 | $ 16 | [1] | $ 700 | $ 369 | [1] | ||
Basic earnings per common share (in dollars per share) | $ 1.03 | $ 0.06 | [1] | $ 2.79 | $ 1.48 | [1] | ||
Diluted earnings per common share (in dollars per share) | $ 1.03 | $ 0.06 | [1] | $ 2.77 | $ 1.47 | [1] | ||
Increase in weighted-average common shares outstanding for diluted EPS (in shares) | 252,822,000 | 252,036,000 | [1] | 252,609,000 | 251,775,000 | [1] | ||
Statement of Comprehensive Income [Abstract] | ||||||||
Comprehensive income | $ 739 | $ 346 | ||||||
Cash flows from operating activities: | ||||||||
Deferred income taxes and investment tax credits | 411 | (76) | [2] | |||||
Other | (19) | 45 | [2] | |||||
Net cash provided by operating activities | 1,889 | 916 | [2] | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Net cash used in investing activities | (2,067) | (1,593) | [2] | |||||
Cash flows from financing activities: | ||||||||
Net cash provided by financing activities | 44 | $ 882 | [2] | |||||
Effect of Early Adoption of New Accounting Pronouncement [Member] | ASU 2016-09 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Weighted-average number of shares outstanding, diluted | 252,036 | 251,775,000 | ||||||
Income Statement [Abstract] | ||||||||
Income tax (expense) benefit | $ (2) | |||||||
Net Income | 391 | |||||||
Earnings | $ 369 | |||||||
Basic earnings per common share (in dollars per share) | $ 1.48 | |||||||
Diluted earnings per common share (in dollars per share) | $ 1.47 | |||||||
Increase in weighted-average common shares outstanding for diluted EPS (in shares) | 252,036 | 251,775,000 | ||||||
Statement of Comprehensive Income [Abstract] | ||||||||
Comprehensive income | $ 346 | |||||||
Comprehensive income (loss) after preferred dividends of subsidiary | 345 | |||||||
Cash flows from operating activities: | ||||||||
Deferred income taxes and investment tax credits | (76) | |||||||
Other | 45 | |||||||
Net cash provided by operating activities | 916 | |||||||
Cash flows from financing activities: | ||||||||
Tax benefit related to share-based compensation | 0 | |||||||
Net cash provided by financing activities | 882 | |||||||
Effect of Early Adoption of New Accounting Pronouncement [Member] | ASU 2016-18 [Member] | ||||||||
Statement of Cash Flows [Abstract] | ||||||||
Cash, cash equivalents and restricted cash, beginning of period | $ 87 | 87 | $ 76 | |||||
As previously reported [Member] | ||||||||
Cash flows from operating activities: | ||||||||
Other | $ 33 | |||||||
As previously reported [Member] | Effect of Early Adoption of New Accounting Pronouncement [Member] | ASU 2016-09 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Weighted-average number of shares outstanding, diluted | 251,938 | 251,686,000 | ||||||
Income Statement [Abstract] | ||||||||
Income tax (expense) benefit | $ (36) | |||||||
Net Income | 357 | |||||||
Earnings | $ 335 | |||||||
Basic earnings per common share (in dollars per share) | $ 1.34 | |||||||
Diluted earnings per common share (in dollars per share) | $ 1.33 | |||||||
Increase in weighted-average common shares outstanding for diluted EPS (in shares) | 251,938 | 251,686,000 | ||||||
Statement of Comprehensive Income [Abstract] | ||||||||
Comprehensive income | $ 312 | |||||||
Comprehensive income (loss) after preferred dividends of subsidiary | 311 | |||||||
Cash flows from operating activities: | ||||||||
Deferred income taxes and investment tax credits | (42) | |||||||
Other | 11 | |||||||
Net cash provided by operating activities | 882 | |||||||
Cash flows from financing activities: | ||||||||
Tax benefit related to share-based compensation | 34 | |||||||
Net cash provided by financing activities | 916 | |||||||
Effect of adoption [Member] | ||||||||
Cash flows from operating activities: | ||||||||
Other | $ 22 | |||||||
Effect of adoption [Member] | Effect of Early Adoption of New Accounting Pronouncement [Member] | ASU 2016-09 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Weighted-average number of shares outstanding, diluted | 89,000 | |||||||
Income Statement [Abstract] | ||||||||
Income tax (expense) benefit | $ 34 | |||||||
Net Income | 34 | |||||||
Earnings | $ 34 | |||||||
Basic earnings per common share (in dollars per share) | $ 0.14 | |||||||
Diluted earnings per common share (in dollars per share) | $ 0.14 | |||||||
Increase in weighted-average common shares outstanding for diluted EPS (in shares) | 89,000 | |||||||
Statement of Comprehensive Income [Abstract] | ||||||||
Comprehensive income | $ 34 | |||||||
Comprehensive income (loss) after preferred dividends of subsidiary | 34 | |||||||
Cash flows from operating activities: | ||||||||
Deferred income taxes and investment tax credits | (34) | |||||||
Other | 34 | |||||||
Net cash provided by operating activities | 34 | |||||||
Cash flows from financing activities: | ||||||||
Tax benefit related to share-based compensation | (34) | |||||||
Net cash provided by financing activities | (34) | |||||||
San Diego Gas and Electric Company [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative-effect adjustment | 23 | |||||||
Income Statement [Abstract] | ||||||||
Income tax (expense) benefit | $ (54) | $ (48) | (144) | (113) | [1] | |||
Net Income | 153 | 87 | 310 | 224 | [1] | |||
Earnings attributable to common shares | 149 | 100 | 304 | 236 | [1] | |||
Statement of Comprehensive Income [Abstract] | ||||||||
Comprehensive income | 314 | 223 | ||||||
Cash flows from operating activities: | ||||||||
Deferred income taxes and investment tax credits | 98 | 19 | [2] | |||||
Other | (20) | (21) | [2] | |||||
Net cash provided by operating activities | 690 | 508 | [2] | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Net cash used in investing activities | (734) | (770) | [2] | |||||
Cash flows from financing activities: | ||||||||
Net cash provided by financing activities | 48 | 250 | [2] | |||||
San Diego Gas and Electric Company [Member] | Effect of Early Adoption of New Accounting Pronouncement [Member] | ASU 2016-09 [Member] | ||||||||
Income Statement [Abstract] | ||||||||
Income tax (expense) benefit | (113) | |||||||
Net Income | 224 | |||||||
Earnings attributable to common shares | 236 | |||||||
Statement of Comprehensive Income [Abstract] | ||||||||
Comprehensive income | 223 | |||||||
Cash flows from operating activities: | ||||||||
Deferred income taxes and investment tax credits | 19 | |||||||
San Diego Gas and Electric Company [Member] | Effect of Early Adoption of New Accounting Pronouncement [Member] | ASU 2016-18 [Member] | ||||||||
Statement of Cash Flows [Abstract] | ||||||||
Cash, cash equivalents and restricted cash, beginning of period | 14 | 14 | $ 12 | |||||
San Diego Gas and Electric Company [Member] | As previously reported [Member] | Effect of Early Adoption of New Accounting Pronouncement [Member] | ASU 2016-09 [Member] | ||||||||
Income Statement [Abstract] | ||||||||
Income tax (expense) benefit | (120) | |||||||
Net Income | 217 | |||||||
Earnings attributable to common shares | 229 | |||||||
Statement of Comprehensive Income [Abstract] | ||||||||
Comprehensive income | 216 | |||||||
Cash flows from operating activities: | ||||||||
Deferred income taxes and investment tax credits | 26 | |||||||
San Diego Gas and Electric Company [Member] | Effect of adoption [Member] | Effect of Early Adoption of New Accounting Pronouncement [Member] | ASU 2016-09 [Member] | ||||||||
Income Statement [Abstract] | ||||||||
Income tax (expense) benefit | 7 | |||||||
Net Income | 7 | |||||||
Earnings attributable to common shares | 7 | |||||||
Statement of Comprehensive Income [Abstract] | ||||||||
Comprehensive income | 7 | |||||||
Cash flows from operating activities: | ||||||||
Deferred income taxes and investment tax credits | (7) | |||||||
Southern California Gas Company [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative-effect adjustment | $ 15 | |||||||
Income Statement [Abstract] | ||||||||
Income tax (expense) benefit | (19) | 29 | (117) | (54) | [1] | |||
Net Income | 59 | 0 | 262 | 199 | [2] | |||
Earnings attributable to common shares | $ 58 | $ (1) | 261 | 198 | [1],[2] | |||
Statement of Comprehensive Income [Abstract] | ||||||||
Comprehensive income | 263 | 199 | ||||||
Cash flows from operating activities: | ||||||||
Deferred income taxes and investment tax credits | 96 | 28 | [2] | |||||
Other | (13) | (15) | [2] | |||||
Net cash provided by operating activities | 855 | 262 | [2] | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Net cash used in investing activities | (766) | (600) | [2] | |||||
Cash flows from financing activities: | ||||||||
Net cash provided by financing activities | $ (63) | 491 | [2] | |||||
Southern California Gas Company [Member] | Effect of Early Adoption of New Accounting Pronouncement [Member] | ASU 2016-09 [Member] | ||||||||
Income Statement [Abstract] | ||||||||
Income tax (expense) benefit | (54) | |||||||
Net Income | 199 | |||||||
Earnings attributable to common shares | 198 | |||||||
Cash flows from operating activities: | ||||||||
Deferred income taxes and investment tax credits | 28 | |||||||
Southern California Gas Company [Member] | As previously reported [Member] | Effect of Early Adoption of New Accounting Pronouncement [Member] | ASU 2016-09 [Member] | ||||||||
Income Statement [Abstract] | ||||||||
Income tax (expense) benefit | (58) | |||||||
Net Income | 195 | |||||||
Earnings attributable to common shares | 194 | |||||||
Cash flows from operating activities: | ||||||||
Deferred income taxes and investment tax credits | 32 | |||||||
Southern California Gas Company [Member] | Effect of adoption [Member] | Effect of Early Adoption of New Accounting Pronouncement [Member] | ASU 2016-09 [Member] | ||||||||
Income Statement [Abstract] | ||||||||
Income tax (expense) benefit | 4 | |||||||
Net Income | 4 | |||||||
Earnings attributable to common shares | 4 | |||||||
Cash flows from operating activities: | ||||||||
Deferred income taxes and investment tax credits | $ (4) | |||||||
[1] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. | |||||||
[2] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. |
ACQUISITION AND DIVESTITURE A30
ACQUISITION AND DIVESTITURE ACTIVITY - ACQUISITIONS (Details) - Sempra Renewables [Member] - Subsequent Event [Member] - Great Valley Solar [Member] $ in Millions | Jul. 10, 2017USD ($)ppaMW |
Business Acquisition [Line Items] | |
Cash paid | $ | $ 124 |
Power generating capacity | MW | 200 |
Number of purchase power agreements | ppa | 4 |
Term of power purchase agreement | 18 years |
ACQUISITION AND DIVESTITURE A31
ACQUISITION AND DIVESTITURE ACTIVITY - ASSETS HELD FOR SALE (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Feb. 29, 2016MW | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |||
Assets Held for Sale [Line Items] | |||||||
Impairment losses | $ 71 | $ 21 | [1] | $ 71 | $ 22 | [1],[2] | |
Sempra Mexico [Member] | TdM [Member] | |||||||
Assets Held for Sale [Line Items] | |||||||
Power generating capacity | MW | 625 | ||||||
Impairment losses | 71 | 71 | |||||
Deferred tax expense (benefit) from the outside basis difference | (3) | $ 3 | (8) | $ 32 | |||
Sempra Mexico [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | TdM [Member] | |||||||
Assets Held for Sale, Assets [Abstract] | |||||||
Inventories | 10 | 10 | |||||
Other current assets | 19 | 19 | |||||
Property, plant and equipment, net | 55 | 55 | |||||
Other noncurrent assets | 25 | 25 | |||||
Total assets held for sale | 109 | 109 | |||||
Assets Held for Sale, Liabilities [Abstract] | |||||||
Accounts payable | 11 | 11 | |||||
Other current liabilities | 4 | 4 | |||||
Asset retirement obligations | 5 | 5 | |||||
Other noncurrent liabilities | 27 | 27 | |||||
Total liabilities held for sale | $ 47 | $ 47 | |||||
[1] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. | ||||||
[2] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. |
ACQUISITION AND DIVESTITURE A32
ACQUISITION AND DIVESTITURE ACTIVITY - DIVESTITURES (Details) - Sempra LNG & Midstream [Member] - Rockies Express [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
May 31, 2016 | Mar. 31, 2016 | Mar. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 25.00% | 25.00% | 25.00% |
Proceeds from sale of equity method investment | $ 443 | $ 440 | |
Carrying value of equity method investment | 484 | $ 484 | |
Fair value of equity method investment | $ 440 | 440 | |
Impairment of equity method investment | 44 | ||
Impairment of equity method investment after-tax | $ 27 |
INVESTMENTS IN UNCONSOLIDATED33
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||||
Feb. 28, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | May 31, 2016 | Mar. 31, 2016 | ||
Schedule of Equity Method Investments [Line Items] | ||||||
Equitization of note receivable due from unconsolidated affiliate | $ 19 | $ 0 | [1] | |||
Maximum exposure under guarantor obligations | 4,700 | |||||
Aggregate carrying value of guarantor obligations | 44 | |||||
Sempra LNG & Midstream [Member] | Rockies Express [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage sold | 25.00% | 25.00% | ||||
Joint Venture [Member] | Sempra South American Utilities [Member] | Eletrans [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equitization of note receivable due from unconsolidated affiliate | $ 19 | |||||
Joint Venture [Member] | Sempra Mexico [Member] | IMG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments made during period | 72 | |||||
Joint Venture [Member] | Sempra Renewables [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments made during period | 18 | |||||
Joint Venture [Member] | Sempra LNG & Midstream [Member] | Cameron LNG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments made during period | 1 | |||||
Capitalized interest | 24 | $ 24 | ||||
Infraestructura Energética Nova [Member] | Joint Venture [Member] | Sempra Mexico [Member] | IMG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Maximum exposure under guarantor obligations | $ 288 | |||||
Percent ownership held by noncontrolling interests | 40.00% | |||||
TransCanada [Member] | Infraestructura Energética Nova [Member] | Joint Venture [Member] | Sempra Mexico [Member] | IMG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percent ownership held by noncontrolling interests | 60.00% | |||||
[1] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. |
OTHER FINANCIAL DATA - INVENTOR
OTHER FINANCIAL DATA - INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Inventory [Line Items] | |||
Natural gas | $ 52 | $ 92 | |
Liquefied natural gas | 15 | 9 | |
Materials and supplies | 172 | 157 | |
Total | 239 | 258 | [1] |
SDG&E [Member] | |||
Inventory [Line Items] | |||
Natural gas | 1 | 2 | |
Liquefied natural gas | 0 | 0 | |
Materials and supplies | 88 | 78 | |
Total | 89 | 80 | |
SoCalGas [Member] | |||
Inventory [Line Items] | |||
Natural gas | 0 | 11 | |
Liquefied natural gas | 0 | 0 | |
Materials and supplies | 45 | 47 | |
Total | 45 | 58 | |
Sempra South American Utilities [Member] | |||
Inventory [Line Items] | |||
Natural gas | 0 | 0 | |
Liquefied natural gas | 0 | 0 | |
Materials and supplies | 33 | 27 | |
Total | 33 | 27 | |
Sempra Mexico [Member] | |||
Inventory [Line Items] | |||
Natural gas | 0 | 0 | |
Liquefied natural gas | 12 | 6 | |
Materials and supplies | 2 | 1 | |
Total | 14 | 7 | |
Sempra Renewables [Member] | |||
Inventory [Line Items] | |||
Natural gas | 0 | 0 | |
Liquefied natural gas | 0 | 0 | |
Materials and supplies | 4 | 4 | |
Total | 4 | 4 | |
Sempra LNG & Midstream [Member] | |||
Inventory [Line Items] | |||
Natural gas | 51 | 79 | |
Liquefied natural gas | 3 | 3 | |
Materials and supplies | 0 | 0 | |
Total | 54 | 82 | |
Southern California Gas Company [Member] | |||
Inventory [Line Items] | |||
Total | $ 45 | $ 58 | [1] |
[1] | Derived from audited financial statements. |
OTHER FINANCIAL DATA - GREENHOU
OTHER FINANCIAL DATA - GREENHOUSE GAS ALLOWANCES (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Regulatory Assets [Abstract] | |||
Sundry | $ 3,569 | $ 3,414 | [1] |
Greenhouse Gas Allowance [Member] | |||
Regulatory Assets [Abstract] | |||
Other current assets | 40 | 40 | |
Sundry | 334 | 295 | |
Total assets | 374 | 335 | |
Greenhouse Gas Obligation [Member] | |||
Regulatory LIabilities [Abstract] | |||
Other current liabilities | 40 | 40 | |
Deferred credits and other | 202 | 171 | |
Total liabilities | 242 | 211 | |
San Diego Gas and Electric Company [Member] | |||
Regulatory Assets [Abstract] | |||
Other current assets | 104 | 81 | [1] |
Sundry | 1,004 | 998 | [1] |
San Diego Gas and Electric Company [Member] | Greenhouse Gas Allowance [Member] | |||
Regulatory Assets [Abstract] | |||
Other current assets | 16 | 16 | |
Sundry | 190 | 182 | |
Total assets | 206 | 198 | |
San Diego Gas and Electric Company [Member] | Greenhouse Gas Obligation [Member] | |||
Regulatory LIabilities [Abstract] | |||
Other current liabilities | 16 | 16 | |
Deferred credits and other | 88 | 72 | |
Total liabilities | 104 | 88 | |
Southern California Gas Company [Member] | |||
Regulatory Assets [Abstract] | |||
Other current assets | 8 | 8 | [1] |
Sundry | 679 | 589 | [1] |
Southern California Gas Company [Member] | Greenhouse Gas Allowance [Member] | |||
Regulatory Assets [Abstract] | |||
Other current assets | 24 | 24 | |
Sundry | 140 | 109 | |
Total assets | 164 | 133 | |
Southern California Gas Company [Member] | Greenhouse Gas Obligation [Member] | |||
Regulatory LIabilities [Abstract] | |||
Other current liabilities | 24 | 24 | |
Deferred credits and other | 111 | 96 | |
Total liabilities | $ 135 | $ 120 | |
[1] | Derived from audited financial statements. |
OTHER FINANCIAL DATA - GOODWILL
OTHER FINANCIAL DATA - GOODWILL (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Goodwill | $ 2,379 | $ 2,364 | [1] |
[1] | Derived from audited financial statements. |
OTHER FINANCIAL DATA - VARIABLE
OTHER FINANCIAL DATA - VARIABLE INTEREST ENTITIES (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)MW | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | ||||
Variable Interest Entities [Line Items] | ||||||||
Property, plant and equipment, net | $ 34,561 | $ 34,561 | $ 32,931 | [1] | ||||
Other noncontrolling interests | 2,253 | 2,253 | 2,270 | [1] | ||||
Energy-related businesses | 336 | $ 162 | [2] | 669 | $ 342 | [2] | ||
Other Cost and Expense, Operating | 731 | 706 | [2] | 1,445 | 1,406 | [2] | ||
Depreciation and amortization | 368 | 314 | [2] | 728 | 642 | [2],[3] | ||
Interest expense | (159) | (142) | [2] | (328) | (285) | [2] | ||
Income before income taxes | 415 | (112) | [2] | 1,170 | 343 | [2] | ||
Income tax (expense) benefit | (167) | 106 | [2] | (462) | (2) | [2] | ||
Income (loss) before income taxes/Net income (loss) | 248 | 27 | [2] | 700 | 391 | [2],[3] | ||
(Earnings) losses attributable to noncontrolling interest | 12 | (10) | [2] | 1 | (21) | [2] | ||
Earnings attributable to common shares | 259 | 16 | [2] | 700 | 369 | [2] | ||
Otay Mesa VIE [Member] | ||||||||
Variable Interest Entities [Line Items] | ||||||||
Property, plant and equipment, net | 335 | 335 | 354 | |||||
Sempra Renewables [Member] | Tax Equity Investors [Member] | ||||||||
Variable Interest Entities [Line Items] | ||||||||
Property, plant and equipment, net | 912 | 912 | 926 | |||||
Other noncontrolling interests | 454 | 454 | 468 | |||||
Energy-related businesses | 18 | 31 | ||||||
Other Cost and Expense, Operating | 7 | 9 | ||||||
Depreciation and amortization | 8 | 16 | ||||||
Income before income taxes | 3 | 6 | ||||||
Income tax (expense) benefit | (4) | (6) | ||||||
Income (loss) before income taxes/Net income (loss) | (1) | 0 | ||||||
(Earnings) losses attributable to noncontrolling interest | 7 | 10 | ||||||
Earnings attributable to common shares | 6 | 10 | ||||||
Sempra Natural Gas [Member] | Cameron LNG Holdings [Member] | ||||||||
Investments [Abstract] | ||||||||
Carrying value of equity method investment | 977 | 977 | 997 | |||||
San Diego Gas and Electric Company [Member] | ||||||||
Variable Interest Entities [Line Items] | ||||||||
Property, plant and equipment, net | 14,215 | 14,215 | 13,250 | [1] | ||||
Other noncontrolling interests | 34 | 34 | 37 | [1] | ||||
Operation and maintenance | 237 | 266 | 464 | 512 | [2] | |||
Depreciation and amortization | 166 | 158 | 329 | 317 | [2] | |||
Operating income (loss) | 241 | 170 | 519 | 406 | [2] | |||
Interest expense | (49) | (48) | (98) | (96) | [2] | |||
Income before income taxes | 207 | 135 | 454 | 337 | [2] | |||
Income tax (expense) benefit | (54) | (48) | (144) | (113) | [2] | |||
Income (loss) before income taxes/Net income (loss) | 153 | 87 | 310 | 224 | [2] | |||
(Earnings) losses attributable to noncontrolling interest | (4) | 13 | $ (6) | 12 | [2] | |||
San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member] | ||||||||
Variable Interest Entities [Line Items] | ||||||||
Power generating capacity | MW | 605 | |||||||
Conditional purchase obligation | 280 | $ 280 | ||||||
Equity of variable interest entity | 34 | 34 | 37 | |||||
Secured debt of variable interest entity | 300 | 300 | ||||||
Property, plant and equipment, net | 335 | 335 | $ 354 | |||||
Cost of electric fuel and purchased power | (21) | (17) | (39) | (34) | ||||
Operation and maintenance | 5 | 15 | 9 | 19 | ||||
Depreciation and amortization | 7 | 10 | 14 | 17 | ||||
Total operating expenses | (9) | 8 | (16) | 2 | ||||
Operating income (loss) | 9 | (8) | 16 | (2) | ||||
Interest expense | (5) | (5) | (10) | (10) | ||||
Income (loss) before income taxes/Net income (loss) | 4 | (13) | 6 | (12) | ||||
(Earnings) losses attributable to noncontrolling interest | (4) | 13 | (6) | 12 | ||||
Earnings attributable to common shares | $ 0 | $ 0 | $ 0 | $ 0 | ||||
[1] | Derived from audited financial statements. | |||||||
[2] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. | |||||||
[3] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. |
OTHER FINANCIAL DATA - PENSION
OTHER FINANCIAL DATA - PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 29 | $ 27 | $ 57 | $ 55 |
Interest cost | 37 | 40 | 74 | 80 |
Expected return on assets | (40) | (41) | (80) | (83) |
Prior service cost (credit) | 2 | 3 | 5 | 6 |
Actuarial loss (gain) | 8 | 7 | 16 | 13 |
Regulatory adjustment | (29) | (28) | (41) | (56) |
Total net periodic benefit cost | 7 | 8 | 31 | 15 |
Contributions by employer | 28 | |||
Expected contributions in current fiscal year | 174 | 174 | ||
Pension benefits [Member] | San Diego Gas and Electric Company [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 7 | 8 | 15 | 15 |
Interest cost | 10 | 11 | 19 | 21 |
Expected return on assets | (13) | (13) | (24) | (25) |
Prior service cost (credit) | 1 | 1 | 1 | 1 |
Actuarial loss (gain) | 2 | 2 | 4 | 5 |
Regulatory adjustment | (7) | (8) | (14) | (15) |
Total net periodic benefit cost | 0 | 1 | 1 | 2 |
Contributions by employer | 2 | |||
Expected contributions in current fiscal year | 32 | 32 | ||
Pension benefits [Member] | Southern California Gas Company [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 18 | 18 | 36 | 35 |
Interest cost | 24 | 25 | 48 | 50 |
Expected return on assets | (25) | (27) | (51) | (52) |
Prior service cost (credit) | 2 | 2 | 4 | 4 |
Actuarial loss (gain) | 4 | 2 | 8 | 5 |
Regulatory adjustment | (22) | (20) | (27) | (41) |
Total net periodic benefit cost | 1 | 0 | 18 | 1 |
Contributions by employer | 17 | |||
Expected contributions in current fiscal year | 90 | 90 | ||
Other postretirement benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5 | 6 | 11 | 11 |
Interest cost | 11 | 11 | 20 | 22 |
Expected return on assets | (17) | (18) | (33) | (35) |
Prior service cost (credit) | 0 | 0 | 0 | 0 |
Actuarial loss (gain) | 0 | 0 | (1) | 0 |
Regulatory adjustment | 2 | 2 | 4 | 4 |
Total net periodic benefit cost | 1 | 1 | 1 | 2 |
Contributions by employer | 1 | |||
Expected contributions in current fiscal year | 8 | 8 | ||
Other postretirement benefits [Member] | San Diego Gas and Electric Company [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 1 | 3 | 2 |
Interest cost | 2 | 2 | 4 | 4 |
Expected return on assets | (4) | (2) | (7) | (5) |
Prior service cost (credit) | 1 | 1 | 2 | 2 |
Actuarial loss (gain) | 0 | (1) | 0 | (1) |
Regulatory adjustment | (1) | (1) | (2) | (2) |
Total net periodic benefit cost | 0 | 0 | 0 | 0 |
Contributions by employer | 0 | |||
Expected contributions in current fiscal year | 4 | 4 | ||
Other postretirement benefits [Member] | Southern California Gas Company [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 3 | 3 | 7 | 7 |
Interest cost | 8 | 9 | 15 | 17 |
Expected return on assets | (13) | (14) | (26) | (28) |
Prior service cost (credit) | 0 | (1) | (1) | (2) |
Actuarial loss (gain) | (1) | 0 | (1) | 0 |
Regulatory adjustment | 3 | 3 | 6 | 6 |
Total net periodic benefit cost | 0 | $ 0 | 0 | $ 0 |
Contributions by employer | 0 | |||
Expected contributions in current fiscal year | $ 1 | $ 1 |
OTHER FINANCIAL DATA - RABBI TR
OTHER FINANCIAL DATA - RABBI TRUST (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Rabbi trust | $ 427 | $ 430 | [1] |
[1] | Derived from audited financial statements. |
OTHER FINANCIAL DATA - EARNINGS
OTHER FINANCIAL DATA - EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Earnings attributable to common shares | $ 259 | $ 16 | [1] | $ 700 | $ 369 | [1] |
Weighted-average common shares outstanding for basic EPS (in shares) | 251,447,000 | 250,096,000 | [1] | 251,290,000 | 249,915,000 | [1] |
Vested RSUs included in basic WASO | 608 | 568 | 604 | 562 | ||
Dilutive effect of stock options, restricted stock awards and restricted stock units (in shares) | 1,375,000 | 1,940,000 | 1,319,000 | 1,860,000 | ||
Weighted-average common shares outstanding for diluted EPS (in shares) | 252,822,000 | 252,036,000 | [1] | 252,609,000 | 251,775,000 | [1] |
Basic earnings per common share (in dollars per share) | $ 1.03 | $ 0.06 | [1] | $ 2.79 | $ 1.48 | [1] |
Diluted earnings per common share (in dollars per share) | $ 1.03 | $ 0.06 | [1] | $ 2.77 | $ 1.47 | [1] |
Antidilutive securities excluded from earnings per share | 3,010 | 1,010 | 3,010 | 2,408 | ||
Performance-based RSUs [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Equity awards, granted (in shares) | 424,760 | |||||
Service-based RSUs [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Equity awards, granted (in shares) | 93,619 | |||||
IENova Plans [Member] | RSUs [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Equity awards, granted (in shares) | 1,034,086 | |||||
[1] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. |
OTHER FINANCIAL DATA - CAPITALI
OTHER FINANCIAL DATA - CAPITALIZED FINANCING COSTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Capitalized Financing Costs Disclosure [Line Items] | ||||
Total capitalized financing costs | $ 62 | $ 58 | $ 144 | $ 110 |
San Diego Gas and Electric Company [Member] | ||||
Capitalized Financing Costs Disclosure [Line Items] | ||||
Total capitalized financing costs | 21 | 17 | 41 | 32 |
Southern California Gas Company [Member] | ||||
Capitalized Financing Costs Disclosure [Line Items] | ||||
Total capitalized financing costs | $ 15 | $ 14 | $ 30 | $ 27 |
OTHER FINANCIAL DATA - CHANGES
OTHER FINANCIAL DATA - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | $ (696,000,000) | $ (821,000,000) | $ (748,000,000) | [1] | $ (806,000,000) |
OCI before reclassifications | (23,000,000) | (37,000,000) | 21,000,000 | (51,000,000) | |
Amounts reclassified from accumulated other comprehensive income | 1,000,000 | 6,000,000 | 9,000,000 | 5,000,000 | |
Net OCI | (22,000,000) | (31,000,000) | 30,000,000 | (46,000,000) | |
AOCI, ending balance | (718,000,000) | (852,000,000) | (718,000,000) | (852,000,000) | |
Foreign currency translation adjustments [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (481,000,000) | (514,000,000) | (527,000,000) | (582,000,000) | |
OCI before reclassifications | 3,000,000 | 11,000,000 | 49,000,000 | 79,000,000 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | |
Net OCI | 3,000,000 | 11,000,000 | 49,000,000 | 79,000,000 | |
AOCI, ending balance | (478,000,000) | (503,000,000) | (478,000,000) | (503,000,000) | |
Financial instruments [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (121,000,000) | (221,000,000) | (125,000,000) | (137,000,000) | |
OCI before reclassifications | (26,000,000) | (48,000,000) | (28,000,000) | (130,000,000) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 5,000,000 | 6,000,000 | 3,000,000 | |
Net OCI | (26,000,000) | (43,000,000) | (22,000,000) | (127,000,000) | |
AOCI, ending balance | (147,000,000) | (264,000,000) | (147,000,000) | (264,000,000) | |
Pension and other postretirement benefits [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (94,000,000) | (86,000,000) | (96,000,000) | (87,000,000) | |
OCI before reclassifications | 0 | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income | 1,000,000 | 1,000,000 | 3,000,000 | 2,000,000 | |
Net OCI | 1,000,000 | 1,000,000 | 3,000,000 | 2,000,000 | |
AOCI, ending balance | (93,000,000) | (85,000,000) | (93,000,000) | (85,000,000) | |
San Diego Gas and Electric Company [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (8,000,000) | (8,000,000) | (8,000,000) | [1] | (8,000,000) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | |
AOCI, ending balance | (8,000,000) | (8,000,000) | (8,000,000) | (8,000,000) | |
San Diego Gas and Electric Company [Member] | Pension and other postretirement benefits [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (8,000,000) | (8,000,000) | (8,000,000) | (8,000,000) | |
AOCI, ending balance | (8,000,000) | (8,000,000) | (8,000,000) | (8,000,000) | |
Southern California Gas Company [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (22,000,000) | (19,000,000) | (22,000,000) | [1] | (19,000,000) |
Amounts reclassified from accumulated other comprehensive income | 1,000,000 | 0 | 1,000,000 | 0 | |
Net OCI | 1,000,000 | 1,000,000 | |||
AOCI, ending balance | (21,000,000) | (19,000,000) | (21,000,000) | (19,000,000) | |
Southern California Gas Company [Member] | Financial instruments [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (13,000,000) | (14,000,000) | (13,000,000) | (14,000,000) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |||
Net OCI | 0 | 0 | |||
AOCI, ending balance | (13,000,000) | (14,000,000) | (13,000,000) | (14,000,000) | |
Southern California Gas Company [Member] | Pension and other postretirement benefits [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (9,000,000) | (5,000,000) | (9,000,000) | (5,000,000) | |
Amounts reclassified from accumulated other comprehensive income | 1,000,000 | 1,000,000 | |||
Net OCI | 1,000,000 | 1,000,000 | |||
AOCI, ending balance | $ (8,000,000) | $ (5,000,000) | $ (8,000,000) | $ (5,000,000) | |
[1] | Derived from audited financial statements. |
OTHER FINANCIAL DATA - RECLASSI
OTHER FINANCIAL DATA - RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense | $ (159) | $ (142) | [1] | $ (328) | $ (285) | [1] |
Equity earnings (losses), before income tax | 18 | 14 | [1] | 21 | (8) | [1] |
Equity earnings (losses), net of income tax | 0 | 33 | [1] | (8) | 50 | [1] |
Revenues: Energy-Related Businesses | 336 | 162 | [1] | 669 | 342 | [1] |
Income before income taxes and equity (losses) earnings of certain unconsolidated subsidiaries | 415 | (112) | [1] | 1,170 | 343 | [1] |
Income Tax (Expense) Benefit | (167) | 106 | [1] | (462) | (2) | [1] |
Losses (Earnings) Attributable to Noncontrolling Interests | 12 | (10) | [1] | 1 | (21) | [1] |
Earnings (losses) | 259 | 16 | [1] | 700 | 369 | [1] |
Total reclassifications for the period | 1 | 6 | 9 | 5 | ||
Gains (Losses) on Cash Flow hedges Attributable to Parent [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total reclassifications for the period | 0 | 5 | 6 | 3 | ||
Gain (Loss) on Pension and Other Postretirement Benefits [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Reclassification from AOCI | 2 | 2 | 5 | 4 | ||
Pension and Other Postretirement Benefits [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income tax expense | (1) | (1) | (2) | (2) | ||
Total reclassifications for the period | 1 | 1 | 3 | 2 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income before income taxes and equity (losses) earnings of certain unconsolidated subsidiaries | 3 | 10 | 15 | 11 | ||
Income Tax (Expense) Benefit | (1) | (1) | (5) | (1) | ||
Net of income tax | 2 | 9 | 10 | 10 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | Interest rate and foreign exchange instruments [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense | (1) | 3 | (4) | 7 | ||
Equity earnings (losses), net of income tax | 3 | 5 | 5 | 6 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | Foreign exchange instruments [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Revenues: Energy-Related Businesses | (1) | 0 | 1 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | Interest rate instruments [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Equity earnings (losses), before income tax | 2 | 2 | 4 | 5 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | Commodity contracts not subject to rate recovery [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Revenues: Energy-Related Businesses | 9 | (7) | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Noncontrolling Interests [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Losses (Earnings) Attributable to Noncontrolling Interests | (2) | (4) | (4) | (7) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Parent [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Earnings (losses) | 0 | 5 | 6 | 3 | ||
San Diego Gas and Electric Company [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense | (49) | (48) | (98) | (96) | [1] | |
Income before income taxes and equity (losses) earnings of certain unconsolidated subsidiaries | 207 | 135 | 454 | 337 | [1] | |
Income Tax (Expense) Benefit | (54) | (48) | (144) | (113) | [1] | |
Losses (Earnings) Attributable to Noncontrolling Interests | (4) | 13 | (6) | 12 | [1] | |
Total reclassifications for the period | 0 | 0 | 0 | 0 | ||
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | Interest rate instruments [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense | 3 | 3 | 6 | 6 | ||
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Noncontrolling Interests [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Losses (Earnings) Attributable to Noncontrolling Interests | (3) | (3) | (6) | (6) | ||
Southern California Gas Company [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense | (26) | (24) | (51) | (46) | [1] | |
Income before income taxes and equity (losses) earnings of certain unconsolidated subsidiaries | 78 | (29) | 379 | 253 | [1] | |
Income Tax (Expense) Benefit | (19) | 29 | (117) | (54) | [1] | |
Total reclassifications for the period | 1 | 0 | 1 | 0 | ||
Southern California Gas Company [Member] | Gains (Losses) on Cash Flow hedges Attributable to Parent [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total reclassifications for the period | 0 | 0 | ||||
Southern California Gas Company [Member] | Gain (Loss) on Pension and Other Postretirement Benefits [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Reclassification from AOCI | 1 | $ 0 | 1 | $ 0 | ||
Southern California Gas Company [Member] | Pension and Other Postretirement Benefits [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total reclassifications for the period | $ 1 | $ 1 | ||||
[1] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. |
OTHER FINANCIAL DATA - SHAREHOL
OTHER FINANCIAL DATA - SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2015 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity, beginning of period | $ 15,241,000,000 | [1] | $ 12,579,000,000 | ||||||
Equity, beginning of period | [1] | 12,951,000,000 | |||||||
Cumulative-effect adjustment from change in accounting principle | $ 107,000,000 | ||||||||
Comprehensive income (loss) | 739,000,000 | 346,000,000 | |||||||
Preferred dividends of subsidiary | $ (1,000,000) | $ (1,000,000) | [2] | (1,000,000) | (1,000,000) | [2] | |||
Share-based compensation expense | 23,000,000 | 24,000,000 | |||||||
Common stock dividends declared | (413,000,000) | (377,000,000) | |||||||
Issuances of common stock | 55,000,000 | 56,000,000 | |||||||
Repurchases of common stock | (14,000,000) | (54,000,000) | |||||||
Equity contributed by noncontrolling interest | 1,000,000 | 1,000,000 | |||||||
Distributions to noncontrolling interests | (26,000,000) | (11,000,000) | |||||||
Equity, end of period | 15,605,000,000 | 12,670,000,000 | 15,605,000,000 | 12,670,000,000 | |||||
Equity, end of period | 13,332,000,000 | 13,332,000,000 | |||||||
Parent [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity, beginning of period | 12,951,000,000 | 11,809,000,000 | |||||||
Cumulative-effect adjustment from change in accounting principle | 107,000,000 | ||||||||
Comprehensive income (loss) | 731,000,000 | 324,000,000 | |||||||
Preferred dividends of subsidiary | (1,000,000) | (1,000,000) | |||||||
Share-based compensation expense | 23,000,000 | 24,000,000 | |||||||
Common stock dividends declared | (413,000,000) | (377,000,000) | |||||||
Issuances of common stock | 55,000,000 | 56,000,000 | |||||||
Repurchases of common stock | (14,000,000) | (54,000,000) | |||||||
Equity contributed by noncontrolling interest | 0 | 0 | |||||||
Distributions to noncontrolling interests | 0 | 0 | |||||||
Equity, end of period | 13,332,000,000 | 11,888,000,000 | 13,332,000,000 | 11,888,000,000 | |||||
Noncontrolling Interest [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity, beginning of period | 2,290,000,000 | 770,000,000 | |||||||
Cumulative-effect adjustment from change in accounting principle | 0 | ||||||||
Comprehensive income (loss) | 8,000,000 | 22,000,000 | |||||||
Preferred dividends of subsidiary | 0 | 0 | |||||||
Share-based compensation expense | 0 | 0 | |||||||
Common stock dividends declared | 0 | 0 | |||||||
Issuances of common stock | 0 | 0 | |||||||
Repurchases of common stock | 0 | 0 | |||||||
Equity contributed by noncontrolling interest | 1,000,000 | 1,000,000 | |||||||
Distributions to noncontrolling interests | (26,000,000) | (11,000,000) | |||||||
Equity, end of period | 2,273,000,000 | 782,000,000 | 2,273,000,000 | 782,000,000 | |||||
San Diego Gas and Electric Company [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity, beginning of period | 5,678,000,000 | [1] | 5,276,000,000 | ||||||
Equity, beginning of period | [1] | 5,641,000,000 | |||||||
Cumulative-effect adjustment from change in accounting principle | 23,000,000 | ||||||||
Comprehensive income (loss) | 314,000,000 | 223,000,000 | |||||||
Common stock dividends declared | (175,000,000) | (175,000,000) | |||||||
Equity contributed by noncontrolling interest | 1,000,000 | ||||||||
Distributions to noncontrolling interests | (14,000,000) | (3,000,000) | |||||||
Equity, end of period | 5,804,000,000 | 5,344,000,000 | 5,804,000,000 | 5,344,000,000 | |||||
Equity, end of period | 5,770,000,000 | 5,770,000,000 | |||||||
San Diego Gas and Electric Company [Member] | Parent [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity, beginning of period | 5,641,000,000 | 5,223,000,000 | |||||||
Cumulative-effect adjustment from change in accounting principle | 23,000,000 | ||||||||
Comprehensive income (loss) | 304,000,000 | 236,000,000 | |||||||
Common stock dividends declared | (175,000,000) | (175,000,000) | |||||||
Equity contributed by noncontrolling interest | 0 | ||||||||
Distributions to noncontrolling interests | 0 | 0 | |||||||
Equity, end of period | 5,770,000,000 | 5,307,000,000 | 5,770,000,000 | 5,307,000,000 | |||||
San Diego Gas and Electric Company [Member] | Noncontrolling Interest [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity, beginning of period | 37,000,000 | 53,000,000 | |||||||
Cumulative-effect adjustment from change in accounting principle | 0 | ||||||||
Comprehensive income (loss) | 10,000,000 | (13,000,000) | |||||||
Common stock dividends declared | 0 | 0 | |||||||
Equity contributed by noncontrolling interest | 1,000,000 | ||||||||
Distributions to noncontrolling interests | (14,000,000) | (3,000,000) | |||||||
Equity, end of period | 34,000,000 | 37,000,000 | 34,000,000 | 37,000,000 | |||||
Southern California Gas Company [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity, beginning of period | 3,510,000,000 | [1] | 3,149,000,000 | ||||||
Cumulative-effect adjustment from change in accounting principle | $ 15,000,000 | ||||||||
Comprehensive income (loss) | 263,000,000 | 199,000,000 | |||||||
Preferred stock dividends declared | (1,000,000) | (1,000,000) | (1,000,000) | (1,000,000) | |||||
Equity, end of period | $ 3,772,000,000 | $ 3,362,000,000 | $ 3,772,000,000 | $ 3,362,000,000 | |||||
[1] | Derived from audited financial statements. | ||||||||
[2] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. |
OTHER FINANCIAL DATA - OTHER NO
OTHER FINANCIAL DATA - OTHER NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | $ 2,253 | $ 2,270 | [1] |
San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 100.00% | 100.00% | |
Noncontrolling interests | $ 34 | $ 37 | |
Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | $ 22 | $ 22 | |
Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member] | Minimum [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 22.90% | 23.10% | |
Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member] | Maximum [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 43.40% | 43.40% | |
Sempra South American Utilities [Member] | Luz del Sur [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 16.40% | 16.40% | |
Noncontrolling interests | $ 184 | $ 173 | |
Sempra South American Utilities [Member] | Tecsur [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 9.80% | 9.80% | |
Noncontrolling interests | $ 3 | $ 4 | |
Sempra Mexico [Member] | IEnova [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 33.60% | 33.60% | |
Noncontrolling interests | $ 1,514 | $ 1,524 | |
Sempra Renewables [Member] | Tax equity arrangement – wind [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | 91 | 92 | |
Sempra Renewables [Member] | Tax equity arrangement – solar [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | $ 363 | $ 376 | |
Sempra LNG & Midstream [Member] | Bay Gas Storage Company, Ltd. [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 9.10% | 9.10% | |
Noncontrolling interests | $ 28 | $ 27 | |
Sempra LNG & Midstream [Member] | Liberty Gas Storage, LLC [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 23.30% | 23.30% | |
Noncontrolling interests | $ 13 | $ 14 | |
Sempra LNG & Midstream [Member] | Southern Gas Transmission Company [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 49.00% | 49.00% | |
Noncontrolling interests | $ 1 | $ 1 | |
[1] | Derived from audited financial statements. |
OTHER FINANCIAL DATA - DUE TO D
OTHER FINANCIAL DATA - DUE TO DUE FROM AFFILIATES (Details) MXN in Billions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2017MXN | ||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | $ 26,000,000 | $ 26,000,000 | [1] | |
Due from unconsolidated affiliates - noncurrent | 373,000,000 | 201,000,000 | [1] | |
Due to unconsolidated affiliates, current | $ (11,000,000) | (11,000,000) | [1] | |
Joint venture with PEMEX [Member] | LIBOR [Member] | ||||
Related Party Transaction [Line Items] | ||||
Spread on variable rate | 450.00% | |||
Interest rate on due from affiliate, noncurrent | 5.72% | |||
ESJ joint venture [Member] | LIBOR [Member] | ||||
Related Party Transaction [Line Items] | ||||
Spread on variable rate | 637.50% | |||
Interest rate on due from affiliate, noncurrent | 7.60% | |||
San Diego Gas and Electric Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | $ 2,000,000 | 4,000,000 | [1] | |
Due to unconsolidated affiliates, current | (26,000,000) | (15,000,000) | [1] | |
Maximum borrowing capacity | 750,000,000 | |||
San Diego Gas and Electric Company [Member] | Due to/from Other affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (8,000,000) | (7,000,000) | ||
San Diego Gas and Electric Company [Member] | Due to/from Sempra Energy [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 0 | 3,000,000 | ||
Due to unconsolidated affiliates, current | (18,000,000) | 0 | ||
Income taxes due from Sempra Energy | 132,000,000 | $ 159,000,000 | ||
Interest rate on due from affiliate, noncurrent | 0.68% | |||
Loan to unconsolidated affiliate, principal | $ 31,000,000 | |||
San Diego Gas and Electric Company [Member] | Due to/from Other Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 1,000,000 | 1,000,000 | ||
San Diego Gas and Electric Company [Member] | Due to/from SoCalGas [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 1,000,000 | 0 | ||
Due to unconsolidated affiliates, current | 0 | (8,000,000) | ||
Southern California Gas Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 56,000,000 | 8,000,000 | [1] | |
Due to unconsolidated affiliates, current | (1,000,000) | (28,000,000) | [1] | |
Maximum borrowing capacity | 750,000,000 | |||
Southern California Gas Company [Member] | Due to/from Other affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 1,000,000 | 0 | ||
Southern California Gas Company [Member] | Due to/from Sempra Energy [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 55,000,000 | 0 | ||
Due to unconsolidated affiliates, current | 0 | (28,000,000) | ||
Income taxes due from Sempra Energy | $ 6,000,000 | 5,000,000 | ||
Interest rate on due from affiliate, noncurrent | 1.23% | |||
Loan to unconsolidated affiliate, principal | $ 84,000,000 | |||
Southern California Gas Company [Member] | Due to/from SDG&E [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 0 | 8,000,000 | ||
Due to unconsolidated affiliates, current | (1,000,000) | 0 | ||
Sempra South American Utilities [Member] | Eletrans [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - noncurrent | $ 90,000,000 | 96,000,000 | ||
Interest rate on due from affiliate, noncurrent | 4.00% | |||
Sempra South American Utilities [Member] | Due to/from Other affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - noncurrent | $ 1,000,000 | 1,000,000 | ||
Sempra Mexico [Member] | IMG [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - noncurrent | 177,000,000 | 0 | ||
Maximum borrowing capacity | $ 500,000,000 | MXN 9 | ||
Sempra Mexico [Member] | IMG [Member] | Interbank Equilibrium Rate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Spread on variable rate | 220.00% | |||
Interest rate on due from affiliate, noncurrent | 9.60% | |||
Sempra Mexico [Member] | Joint venture with PEMEX [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - noncurrent | $ 92,000,000 | 90,000,000 | ||
Sempra Mexico [Member] | ESJ joint venture [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - noncurrent | $ 13,000,000 | $ 14,000,000 | ||
[1] | Derived from audited financial statements. |
OTHER FINANCIAL DATA - AFFILIAT
OTHER FINANCIAL DATA - AFFILIATES REVENUE AND COST OF SALES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 8 | $ 5 | $ 15 | $ 10 |
Costs of sales to related parties | 14 | 20 | 28 | 50 |
San Diego Gas and Electric Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 2 | 0 | 4 | 3 |
Costs of sales to related parties | 19 | 16 | 39 | 30 |
Southern California Gas Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 17 | $ 18 | $ 35 | $ 35 |
OTHER FINANCIAL DATA - OTHER IN
OTHER FINANCIAL DATA - OTHER INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Other Income [Line Items] | ||||||
Allowance for equity funds used during construction | $ 40 | $ 30 | $ 112 | $ 57 | ||
Investment gains | 14 | 10 | 30 | 20 | ||
Gains (losses) on interest rate and foreign exchange instruments, net | 31 | (15) | 94 | (12) | ||
Foreign currency transaction gains (losses) | 7 | (5) | 17 | (7) | ||
Electrical infrastructure relocation income | 0 | 2 | 0 | 3 | ||
Regulatory Interest, net | 0 | 1 | 2 | 3 | ||
Sundry, net | (1) | 0 | 5 | 8 | ||
Total | 91 | 23 | [1] | 260 | 72 | [1] |
San Diego Gas and Electric Company [Member] | ||||||
Other Income [Line Items] | ||||||
Allowance for equity funds used during construction | 16 | 13 | 31 | 24 | ||
Regulatory Interest, net | 0 | 1 | 2 | 3 | ||
Sundry, net | (1) | (1) | 0 | 0 | ||
Total | 15 | 13 | 33 | 27 | [1] | |
Southern California Gas Company [Member] | ||||||
Other Income [Line Items] | ||||||
Allowance for equity funds used during construction | 11 | 10 | 22 | 20 | ||
Sundry, net | (2) | (4) | (2) | (4) | ||
Total | $ 9 | $ 6 | $ 20 | $ 16 | [1] | |
[1] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. |
OTHER FINANCIAL DATA - INCOME T
OTHER FINANCIAL DATA - INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||||||
Income tax expense | $ 167 | $ (106) | [1] | $ 462 | $ 2 | [1] |
Effective income tax rate | 40.00% | 95.00% | 39.00% | 1.00% | ||
Income tax expense from transactional effects of foreign currency and inflation | $ 52 | $ 149 | ||||
Income tax expense from transactional effects of foreign currency and inflation net of noncontrolling interest | 34 | 99 | ||||
Gain (loss) from foreign currency derivatives | 32 | 97 | ||||
Gain (loss) from foreign currency derivatives after-tax | 19 | 58 | ||||
San Diego Gas and Electric Company [Member] | ||||||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||||||
Income tax expense | $ 54 | $ 48 | $ 144 | $ 113 | [1] | |
Effective income tax rate | 26.00% | 36.00% | 32.00% | 34.00% | ||
Southern California Gas Company [Member] | ||||||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||||||
Income tax expense | $ 19 | $ (29) | $ 117 | $ 54 | [1] | |
Effective income tax rate | 24.00% | 100.00% | 31.00% | 21.00% | ||
[1] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. |
DEBT AND CREDIT FACILITIES - LI
DEBT AND CREDIT FACILITIES - LINES OF CREDIT (Details) | 6 Months Ended | |
Jun. 30, 2017USD ($)line_of_credit | Dec. 31, 2016 | |
Sempra Energy Consolidated [Member] | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate on total short-term debt outstanding | 1.81% | 1.51% |
Sempra U.S. Businesses [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 4,335,000,000 | |
Number of primary lines of credit | line_of_credit | 3 | |
Available unused credit | $ 3,094,000,000 | |
Capacity for issuance of letters of credit | $ 400,000,000 | |
Maximum ratio of indebtedness to total capitalization | 65.00% | |
Foreign Operations [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 1,664,000,000 | |
Amount outstanding | (663,000,000) | |
Available unused credit | 1,001,000,000 | |
Sempra Energy [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,000,000,000 | |
Available unused credit | 1,000,000,000 | |
Letters of Credit Outstanding, Amount | 0 | |
Sempra Global [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 2,335,000,000 | |
Available unused credit | 1,099,000,000 | |
California Utilities Combined [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,000,000,000 | |
Limit on facility borrowings | (500,000,000) | |
Limit on borrowings available | (500,000,000) | |
Available unused credit | 995,000,000 | |
Capacity for issuance of letters of credit | 250,000,000 | |
Letters of Credit Outstanding, Amount | 0 | |
San Diego Gas and Electric Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 750,000,000 | |
Available unused credit | $ 745,000,000 | |
Maximum ratio of indebtedness to total capitalization | 65.00% | |
Weighted average interest rate on total short-term debt outstanding | 1.15% | |
Southern California Gas Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 750,000,000 | |
Available unused credit | $ 750,000,000 | |
Maximum ratio of indebtedness to total capitalization | 65.00% | |
Weighted average interest rate on total short-term debt outstanding | 0.75% | |
Sempra South American Utilities [Member] | Peru [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 379,000,000 | |
Amount outstanding | (147,000,000) | |
Available unused credit | $ 232,000,000 | |
Committed lines of credit, maximum ratio of debt to equity | 170.00% | |
Bank guarantee | $ 4,000,000 | |
Sempra South American Utilities [Member] | Chile [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 115,000,000 | |
Amount outstanding | 0 | |
Available unused credit | 115,000,000 | |
Sempra Mexico [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,170,000,000 | |
Amount outstanding | (516,000,000) | |
Available unused credit | 654,000,000 | |
Commercial Paper [Member] | Sempra U.S. Businesses [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding | (1,241,000,000) | |
Commercial Paper [Member] | Sempra Energy [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding | 0 | |
Commercial Paper [Member] | Sempra Global [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding | (1,236,000,000) | |
Commercial Paper [Member] | California Utilities Combined [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding | (5,000,000) | |
Limit on facility borrowings | 0 | |
Commercial Paper [Member] | San Diego Gas and Electric Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding | (5,000,000) | |
Commercial Paper [Member] | Southern California Gas Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding | $ 0 | |
Revolving Credit Facility [Member] | Sempra Mexico [Member] | ||
Line of Credit Facility [Line Items] | ||
Term of debt instrument | 5 years |
DEBT AND CREDIT FACILITIES - LO
DEBT AND CREDIT FACILITIES - LONG TERM DEBT (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2015 | Feb. 28, 2017 | |
Sempra Energy [Member] | Fixed Rate Notes Maturing in 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt amount offered and sold | $ 750,000,000 | ||
Stated rate of debt offered and sold | 3.25% | ||
San Diego Gas and Electric Company [Member] | First Mortgage Bonds Maturing in 2047 [Member] | |||
Debt Instrument [Line Items] | |||
Debt amount offered and sold | $ 400,000,000 | ||
Stated rate of debt offered and sold | 3.75% | ||
South American Utilities [Member] | Luz Del Sur [Member] | Corporate Bonds Maturing in 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt amount offered and sold | $ 50,000,000 | ||
Stated rate of debt offered and sold | 6.38% | ||
Peaker Plant Facility [Member] | San Diego Gas and Electric Company [Member] | |||
Debt Instrument [Line Items] | |||
Term of power purchase agreement | 25 years | ||
Capital lease obligations incurred | $ 500,000,000 |
DERIVATIVE FINANCIAL INSTRUME52
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE COMMODITY VOLUMES (Details) MWh in Millions, MMBTU in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017MWhMMBTU | Dec. 31, 2016MWhMMBTU | |
SDG&E [Member] | Natural gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net derivative energy volumes | 44 | 48 |
SDG&E [Member] | Electricity [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net derivative energy volumes | MWh | 4 | 4 |
SDG&E [Member] | Congestion revenue rights [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net derivative energy volumes | MWh | 42 | 48 |
SoCalGas [Member] | Natural gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net derivative energy volumes | 0 | 1 |
Sempra LNG & Midstream [Member] | Natural gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net derivative energy volumes | 14 | 31 |
Sempra Mexico [Member] | Natural gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net derivative energy volumes | 3 | 0 |
DERIVATIVE FINANCIAL INSTRUME53
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE NOTIONALS (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Cross currency swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative | $ 408 | $ 408 |
Cross currency swaps [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2017 | Dec. 31, 2017 |
Cross currency swaps [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2023 | Dec. 31, 2023 |
Other foreign currency derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative | $ 903 | $ 86 |
Notional amount of derivatives acquired | $ 850 | |
Other foreign currency derivatives [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2017 | Dec. 31, 2017 |
Other foreign currency derivatives [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2018 | Dec. 31, 2018 |
Cash Flow Hedging [Member] | Interest rate instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative | $ 897 | $ 924 |
Cash Flow Hedging [Member] | Interest rate instruments [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2017 | Dec. 31, 2017 |
Cash Flow Hedging [Member] | Interest rate instruments [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2032 | Dec. 31, 2032 |
San Diego Gas and Electric Company [Member] | Cash Flow Hedging [Member] | Interest rate instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative | $ 300 | $ 305 |
San Diego Gas and Electric Company [Member] | Cash Flow Hedging [Member] | Interest rate instruments [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2017 | Dec. 31, 2017 |
San Diego Gas and Electric Company [Member] | Cash Flow Hedging [Member] | Interest rate instruments [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2019 | Dec. 31, 2019 |
DERIVATIVE FINANCIAL INSTRUME54
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE INSTRUMENTS ON THE CONDENSED BALANCE SHEET (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | $ 159 | $ 41 |
Additional cash collateral for commodity contracts not subject to rate recovery | 10 | 10 |
Additional cash collateral for commodity contracts subject to rate recovery | 17 | 32 |
Total | 186 | 83 |
Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 76 | 82 |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 76 | 82 |
Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (103) | (77) |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (103) | (77) |
Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (292) | (364) |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (292) | (364) |
Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | 1 | 7 |
Commodity contracts not subject to rate recovery | 0 | |
Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | 0 | 2 |
Commodity contracts not subject to rate recovery | 0 | |
Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | (56) | (24) |
Commodity contracts not subject to rate recovery | (14) | |
Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | (153) | (228) |
Commodity contracts not subject to rate recovery | 0 | |
Not Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 130 | |
Commodity contracts not subject to rate recovery | 43 | 248 |
Associated offsetting commodity contracts | (29) | (242) |
Associated offsetting cash collateral | 0 | |
Commodity contracts subject to rate recovery | 15 | 37 |
Associated offsetting commodity contracts | (1) | (9) |
Associated offsetting cash collateral | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 0 | |
Commodity contracts not subject to rate recovery | 8 | 36 |
Associated offsetting commodity contracts | (3) | (27) |
Associated offsetting cash collateral | (1) | |
Commodity contracts subject to rate recovery | 71 | 73 |
Associated offsetting commodity contracts | 0 | (1) |
Associated offsetting cash collateral | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 0 | |
Commodity contracts not subject to rate recovery | (33) | (254) |
Associated offsetting commodity contracts | 29 | 242 |
Associated offsetting cash collateral | 16 | |
Commodity contracts subject to rate recovery | (59) | (57) |
Associated offsetting commodity contracts | 1 | 9 |
Associated offsetting cash collateral | 15 | 5 |
Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 0 | |
Commodity contracts not subject to rate recovery | (5) | (28) |
Associated offsetting commodity contracts | 3 | 27 |
Associated offsetting cash collateral | 1 | |
Commodity contracts subject to rate recovery | (147) | (150) |
Associated offsetting commodity contracts | 0 | 1 |
Associated offsetting cash collateral | 10 | 13 |
San Diego Gas and Electric Company [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 13 | 27 |
Additional cash collateral for commodity contracts not subject to rate recovery | 1 | |
Additional cash collateral for commodity contracts subject to rate recovery | 16 | 30 |
Total | 29 | 58 |
San Diego Gas and Electric Company [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 71 | 72 |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 71 | 72 |
San Diego Gas and Electric Company [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (55) | (55) |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (55) | (55) |
San Diego Gas and Electric Company [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (144) | (148) |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (144) | (148) |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | 0 | 0 |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | 0 | 0 |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | (13) | (13) |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | (7) | (12) |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 14 | 33 |
Associated offsetting commodity contracts | (1) | (6) |
Associated offsetting cash collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 71 | 73 |
Associated offsetting commodity contracts | 0 | (1) |
Associated offsetting cash collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (58) | (51) |
Associated offsetting commodity contracts | 1 | 6 |
Associated offsetting cash collateral | 15 | 3 |
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] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (147) | (150) |
Associated offsetting commodity contracts | 0 | 1 |
Associated offsetting cash collateral | 10 | 13 |
Southern California Gas Company [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 1 | 1 |
Additional cash collateral for commodity contracts not subject to rate recovery | 1 | 1 |
Additional cash collateral for commodity contracts subject to rate recovery | 1 | 2 |
Total | 3 | 4 |
Southern California Gas Company [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 0 | 0 |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 0 | 0 |
Southern California Gas Company [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (1) | (1) |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (1) | (1) |
Southern California Gas Company [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 0 | 0 |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 0 | 0 |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 1 | 4 |
Associated offsetting commodity contracts | (3) | |
Associated offsetting cash collateral | 0 | |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 0 | 0 |
Associated offsetting commodity contracts | 0 | |
Associated offsetting cash collateral | 0 | |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (1) | (6) |
Associated offsetting commodity contracts | 3 | |
Associated offsetting cash collateral | 2 | |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | $ 0 | 0 |
Associated offsetting commodity contracts | 0 | |
Associated offsetting cash collateral | $ 0 |
DERIVATIVE FINANCIAL INSTRUME55
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE IMPACT ON INCOME (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Pretax gain on derivatives recognized in earnings | $ 142,000,000 | $ (41,000,000) | [1] | ||
Fair Value Hedging [Member] | Interest Expense [Member] | Interest rate instruments [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Hedge ineffectiveness | $ 0 | 0 | |||
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest rate instruments [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Pretax gain on derivatives recognized in earnings | (1,000,000) | 1,000,000 | |||
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Expense [Member] | Interest rate instruments [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Pretax gain on derivatives recognized in earnings | 1,000,000 | 3,000,000 | |||
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Other Income, Net [Member] | Interest rate instruments [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Pretax gain on derivatives recognized in earnings | (2,000,000) | (2,000,000) | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Pretax (loss) gain recognized in OCI | $ (50,000,000) | (89,000,000) | (54,000,000) | (254,000,000) | |
Pretax gain (loss) reclassified from AOCI into earnings | (3,000,000) | (10,000,000) | (15,000,000) | (11,000,000) | |
Loss on cash flow hedge ineffectiveness | 2,000,000 | 0 | (2,000,000) | 0 | |
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 (loss) gain recognized in OCI | (8,000,000) | 1,000,000 | 8,000,000 | (10,000,000) | |
Pretax gain (loss) reclassified from AOCI into earnings | 1,000,000 | (3,000,000) | 4,000,000 | (7,000,000) | |
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 (loss) gain recognized in OCI | (32,000,000) | (70,000,000) | (37,000,000) | (207,000,000) | |
Pretax gain (loss) reclassified from AOCI into earnings | (2,000,000) | (2,000,000) | (4,000,000) | (5,000,000) | |
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 (loss) gain recognized in OCI | (9,000,000) | (15,000,000) | (18,000,000) | (33,000,000) | |
Pretax gain (loss) reclassified from AOCI into earnings | (3,000,000) | (5,000,000) | (5,000,000) | (6,000,000) | |
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 (loss) gain recognized in OCI | (1,000,000) | 0 | (10,000,000) | 0 | |
Pretax gain (loss) reclassified from AOCI into earnings | 1,000,000 | 0 | (1,000,000) | 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 (loss) gain recognized in OCI | 0 | (5,000,000) | 3,000,000 | (4,000,000) | |
Pretax gain (loss) reclassified from AOCI into earnings | 0 | 0 | (9,000,000) | 7,000,000 | |
Not Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Pretax gain on derivatives recognized in earnings | 54,000,000 | 1,000,000 | 103,000,000 | (12,000,000) | |
Not Designated as Hedging Instrument [Member] | Other Income, Net [Member] | Foreign exchange instruments [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Pretax gain on derivatives recognized in earnings | 32,000,000 | (15,000,000) | 97,000,000 | (12,000,000) | |
Not Designated as Hedging Instrument [Member] | Equity Earnings, Net of Income Tax [Member] | Foreign exchange instruments [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Pretax gain on derivatives recognized in earnings | 0 | 0 | 0 | 2,000,000 | |
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] | |||||
Pretax gain on derivatives recognized in earnings | 16,000,000 | (24,000,000) | 30,000,000 | (29,000,000) | |
Not Designated as Hedging Instrument [Member] | Operation and Maintenance [Member] | Commodity contracts not subject to rate recovery [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Pretax gain on derivatives recognized in earnings | 0 | 1,000,000 | (1,000,000) | 1,000,000 | |
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] | |||||
Pretax gain on derivatives recognized in earnings | 6,000,000 | 40,000,000 | (23,000,000) | 28,000,000 | |
Not Designated as Hedging Instrument [Member] | Cost of Natural Gas [Member] | Commodity contracts subject to rate recovery [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Pretax gain on derivatives recognized in earnings | 0 | (1,000,000) | 0 | (2,000,000) | |
San Diego Gas and Electric Company [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Pretax gain on derivatives recognized in earnings | 1,000,000 | 1,000,000 | [1] | ||
San Diego Gas and Electric Company [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | Interest rate instruments [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Loss on cash flow hedge ineffectiveness | 0 | 0 | 0 | 0 | |
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 (loss) gain recognized in OCI | (2,000,000) | (2,000,000) | (2,000,000) | (7,000,000) | |
Pretax gain (loss) reclassified from AOCI into earnings | (3,000,000) | (3,000,000) | (6,000,000) | (6,000,000) | |
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] | |||||
Pretax gain on derivatives recognized in earnings | 6,000,000 | 40,000,000 | (23,000,000) | 28,000,000 | |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Pretax gain on derivatives recognized in earnings | 0 | (1,000,000) | (1,000,000) | (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] | |||||
Pretax gain on derivatives recognized in earnings | 0 | 0 | (1,000,000) | 0 | |
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] | |||||
Pretax gain on derivatives recognized in earnings | $ 0 | $ (1,000,000) | $ 0 | $ (2,000,000) | |
[1] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. |
DERIVATIVE FINANCIAL INSTRUME56
DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Gains (losses) on cash flow hedges to be reclassified from AOCI within 12 months | $ 11 |
Maximum remaining term of cash flow hedges | 15 years |
Equity Method Investee [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Maximum remaining term of cash flow hedges | 18 years |
San Diego Gas and Electric Company [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Maximum remaining term of cash flow hedges | 2 years |
Southern California Gas Company [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Gains (losses) on cash flow hedges to be reclassified from AOCI within 12 months | $ 0 |
Noncontrolling Interest [Member] | Otay Mesa VIE [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Gains (losses) on cash flow hedges to be reclassified from AOCI within 12 months | $ 11 |
DERIVATIVE FINANCIAL INSTRUME57
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE INSTRUMENTS WITH CONTINGENT FEATURES (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net liability position for derivatives with credit limits | $ 4 | $ 10 |
Additional collateral that wil be required if credit rating falls below investment grade | 6 | |
San Diego Gas and Electric Company [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net liability position for derivatives with credit limits | 1 | $ 0 |
Additional collateral that wil be required if credit rating falls below investment grade | $ 3 |
FAIR VALUE MEASUREMENTS - RECUR
FAIR VALUE MEASUREMENTS - RECURRING FAIR VALUE MEASURES (Details) - Recurring [Member] - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | $ 499 | $ 508 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 57 | 52 |
Nuclear decommissioning trusts - Municipal bonds | 263 | 206 |
Nuclear decommissioning trusts - Other securities | 199 | 141 |
Nuclear decommissioning trusts - Total debt securities | 519 | 399 |
Nuclear decommissioning trusts - Netting | 0 | 0 |
Total nuclear decommissioning trusts | 1,018 | 907 |
Derivative asset netting | 27 | 41 |
Total | 1,280 | 1,072 |
Derivative liability netting | (25) | (35) |
Total | 395 | 441 |
Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 131 | 9 |
Derivative asset netting | 0 | 0 |
Derivative liabilities | 209 | 252 |
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 assets | 29 | 24 |
Derivative asset netting | 10 | 9 |
Derivative liabilities | 6 | 10 |
Derivative liability netting | 0 | (17) |
Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 102 | 132 |
Derivative asset netting | 17 | 32 |
Derivative liabilities | 180 | 179 |
Derivative liability netting | (25) | (18) |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 494 | 508 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 49 | 36 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 49 | 36 |
Total nuclear decommissioning trusts | 543 | 544 |
Total | 550 | 545 |
Total | 28 | 35 |
Level 1 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 1 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7 | 0 |
Derivative liabilities | 3 | 16 |
Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 1 |
Derivative liabilities | 25 | 19 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 5 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 8 | 16 |
Nuclear decommissioning trusts - Municipal bonds | 263 | 206 |
Nuclear decommissioning trusts - Other securities | 199 | 141 |
Nuclear decommissioning trusts - Total debt securities | 470 | 363 |
Total nuclear decommissioning trusts | 475 | 363 |
Total | 619 | 390 |
Total | 218 | 271 |
Level 2 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 131 | 9 |
Derivative liabilities | 209 | 252 |
Level 2 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 12 | 15 |
Derivative liabilities | 3 | 11 |
Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | 3 |
Derivative liabilities | 6 | 8 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 0 | 0 |
Total nuclear decommissioning trusts | 0 | 0 |
Total | 84 | 96 |
Total | 174 | 170 |
Level 3 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 3 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 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 assets | 84 | 96 |
Derivative liabilities | 174 | 170 |
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 | 499 | 508 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 57 | 52 |
Nuclear decommissioning trusts - Municipal bonds | 263 | 206 |
Nuclear decommissioning trusts - Other securities | 199 | 141 |
Nuclear decommissioning trusts - Total debt securities | 519 | 399 |
Nuclear decommissioning trusts - Netting | 0 | 0 |
Total nuclear decommissioning trusts | 1,018 | 907 |
Derivative asset netting | 16 | 31 |
Total | 1,118 | 1,037 |
Derivative liability netting | (25) | (16) |
Total | 199 | 203 |
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 assets | 1 | |
Derivative asset 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 assets | 100 | 129 |
Derivative asset netting | 16 | 30 |
Derivative liabilities | 179 | 178 |
Derivative liability netting | (25) | (16) |
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 liabilities | 20 | 25 |
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 | 494 | 508 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 49 | 36 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 49 | 36 |
Total nuclear decommissioning trusts | 543 | 544 |
Total | 543 | 545 |
Total | 25 | 17 |
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 assets | 0 | |
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 assets | 0 | 1 |
Derivative liabilities | 25 | 17 |
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 liabilities | 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 | 5 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 8 | 16 |
Nuclear decommissioning trusts - Municipal bonds | 263 | 206 |
Nuclear decommissioning trusts - Other securities | 199 | 141 |
Nuclear decommissioning trusts - Total debt securities | 470 | 363 |
Total nuclear decommissioning trusts | 475 | 363 |
Total | 475 | 365 |
Total | 25 | 32 |
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 assets | 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 assets | 0 | 2 |
Derivative liabilities | 5 | 7 |
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 liabilities | 20 | 25 |
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 decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 0 | 0 |
Total nuclear decommissioning trusts | 0 | 0 |
Total | 84 | 96 |
Total | 174 | 170 |
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 assets | 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 assets | 84 | 96 |
Derivative liabilities | 174 | 170 |
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 liabilities | 0 | 0 |
Southern California Gas Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset netting | 2 | 3 |
Total | 3 | 4 |
Derivative liability netting | 0 | (2) |
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 assets | 1 | 1 |
Derivative asset netting | 1 | 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 assets | 2 | 3 |
Derivative asset netting | 1 | 2 |
Derivative liabilities | 1 | 1 |
Derivative liability netting | 0 | (2) |
Southern California Gas Company [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Total | 0 | 2 |
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 assets | 0 | 0 |
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 assets | 0 | 0 |
Derivative liabilities | 0 | 2 |
Southern California Gas Company [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1 | 1 |
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 assets | 0 | 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 assets | 1 | 1 |
Derivative liabilities | 1 | 1 |
Southern California Gas Company [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
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 assets | 0 | 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 assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - RECON
FAIR VALUE MEASUREMENTS - RECON OF LEVEL 3 ASSETS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Beginning of period | $ (96,000,000) | $ 11,000,000 | $ (74,000,000) | $ 19,000,000 | ||
Realized and unrealized (losses) gains | (3,000,000) | 8,000,000 | (16,000,000) | 7,000,000 | ||
Settlements | 9,000,000 | 5,000,000 | 0 | (2,000,000) | ||
End of period | (90,000,000) | 24,000,000 | (90,000,000) | 24,000,000 | ||
Change in unrealized gains relating to instruments still held at the end of the period | 2,000,000 | $ 9,000,000 | (14,000,000) | $ 9,000,000 | ||
Minimum [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Congestion revenue rights (in dollars per MWH) | $ (24) | |||||
Market electricity forward price inputs ( in dollars per MWH) | 21.35 | 21.35 | ||||
Maximum [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Congestion revenue rights (in dollars per MWH) | $ 10 | |||||
Market electricity forward price inputs ( in dollars per MWH) | $ 46.35 | $ 46.35 | ||||
Forecast [Member] | Minimum [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Congestion revenue rights (in dollars per MWH) | $ (12) | |||||
Forecast [Member] | Maximum [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Congestion revenue rights (in dollars per MWH) | $ 7 |
FAIR VALUE MEASUREMENTS - FINAN
FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign currency effect on loan | $ 6 | |
Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 345 | $ 184 |
Total long-term debt | 15,519 | 15,068 |
Accumulated interest outstanding | 22 | 17 |
Unamortized discount (net of premium) and debt issuance costs | 114 | 109 |
Build-to-suit and capital lease obligations | 882 | 383 |
Carrying amount [Member] | Otay Mesa VIE [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, gross | 300 | 305 |
Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 320 | 175 |
Total long-term debt | 16,394 | 15,947 |
Fair value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 0 | 0 |
Total long-term debt | 0 | 0 |
Fair value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 228 | 91 |
Total long-term debt | 15,900 | 15,455 |
Fair value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 92 | 84 |
Total long-term debt | 494 | 492 |
San Diego Gas and Electric Company [Member] | Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 4,891 | 4,654 |
Unamortized discount (net of premium) and debt issuance costs | 48 | 45 |
Capital lease obligations | 737 | 240 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 5,332 | 5,032 |
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 | 5,032 | 4,727 |
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 | 300 | 305 |
Southern California Gas Company [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital lease obligations | 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 | 3,009 |
Unamortized discount (net of premium) and debt issuance costs | 25 | 27 |
Southern California Gas Company [Member] | Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 3,169 | 3,131 |
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 | 3,169 | 3,131 |
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) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | [1] | Jun. 30, 2017 | Jun. 30, 2016 | [1],[2] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment losses | $ 71 | $ 21 | $ 71 | $ 22 | ||
TdM [Member] | Sempra Mexico [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment losses | 71 | 71 | ||||
Market Approach Valuation Technique [Member] | TdM [Member] | Sempra Mexico [Member] | Nonrecurring [Member] | Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Estimated fair value | $ 62 | $ 62 | ||||
% of fair value measurement | 100.00% | 100.00% | ||||
Range of inputs | 100.00% | 100.00% | ||||
[1] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. | |||||
[2] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. |
SAN ONOFRE NUCLEAR GENERATING62
SAN ONOFRE NUCLEAR GENERATING STATION (Details) - USD ($) $ in Millions | Mar. 13, 2017 | Apr. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2017 | Feb. 28, 2017 | Dec. 31, 2016 | [1] |
Jointly Owned Utility Plant Interests [Line Items] | |||||||
Settlement amount awarded | $ 118 | ||||||
Percent of arbitration expenses reduction of award | 95.00% | ||||||
Settlement amount net of arbitration expense | $ 60 | ||||||
Regulatory asset, noncurrent | $ 3,569 | $ 3,569 | $ 3,414 | ||||
Anticipated term of dismantlement work | 10 years | ||||||
Nuclear decommissioning trusts | $ 1,029 | 1,029 | 1,026 | ||||
Environmental exit costs, anticipated cost | $ 4,400 | ||||||
San Diego Gas and Electric Company [Member] | |||||||
Jointly Owned Utility Plant Interests [Line Items] | |||||||
Settlement amount awarded | 24 | ||||||
Settlement amount net of arbitration expense | 12 | ||||||
Arbitration expense | 12 | ||||||
Legal costs | 11 | ||||||
Litigation settlement amount allocated to ratepayers and shareholders | $ 1 | ||||||
Regulatory asset, current | 104 | 104 | 81 | ||||
Regulatory asset, noncurrent | $ 1,004 | $ 1,004 | 998 | ||||
Regulatory Asset, Amortization Period | 10 years | ||||||
Percent of dismantlement work expense | 20.00% | 20.00% | |||||
Nuclear decommissioning trusts | $ 1,029 | $ 1,029 | $ 1,026 | ||||
Environmental exit costs, anticipated cost | $ 899 | ||||||
Authorized recovery amount, nuclear decommissioning trust funding | 302 | 302 | $ 84 | ||||
San Diego Gas and Electric Company [Member] | Asset Retirement Obligation Costs [Member] | |||||||
Jointly Owned Utility Plant Interests [Line Items] | |||||||
Regulatory asset | 166 | 166 | |||||
Regulatory asset, current | 34 | 34 | |||||
Regulatory asset, noncurrent | $ 132 | $ 132 | |||||
Jointly Owned Nuclear Power Plant [Member] | San Diego Gas and Electric Company [Member] | |||||||
Jointly Owned Utility Plant Interests [Line Items] | |||||||
Jointly owned utility plant, proportionate ownership share | 20.00% | 20.00% | |||||
Loss from plant closure, after tax | $ 125 | ||||||
[1] | Derived from audited financial statements. |
SAN ONOFRE NUCLEAR GENERATING63
SAN ONOFRE NUCLEAR GENERATING STATION - NUCLEAR DECOMMISSIONING TRUSTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | $ 717 | $ 717 | $ 658 | ||
Gross unrealized gains | 316 | 316 | 372 | ||
Gross unrealized losses | (4) | (4) | (4) | ||
Estimated fair value | 1,029 | 1,029 | 1,026 | ||
Proceeds from sales | 466 | $ 111 | 823 | $ 204 | |
Gross realized gains | 79 | 5 | 124 | 8 | |
Gross realized losses | (3) | $ (3) | $ (8) | $ (11) | |
Period of significant cash withdrawals | 10 years | ||||
Total debt securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 510 | $ 510 | 396 | ||
Gross unrealized gains | 11 | 11 | 6 | ||
Gross unrealized losses | (2) | (2) | (3) | ||
Estimated fair value | 519 | 519 | 399 | ||
U.S. government corporations and agencies [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 57 | 57 | 52 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | 57 | 57 | 52 | ||
Municipal bonds [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 256 | 256 | 203 | ||
Gross unrealized gains | 8 | 8 | 4 | ||
Gross unrealized losses | (1) | (1) | (1) | ||
Estimated fair value | 263 | 263 | 206 | ||
Other securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 197 | 197 | 141 | ||
Gross unrealized gains | 3 | 3 | 2 | ||
Gross unrealized losses | (1) | (1) | (2) | ||
Estimated fair value | 199 | 199 | 141 | ||
Equity securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 196 | 196 | 143 | ||
Gross unrealized gains | 305 | 305 | 366 | ||
Gross unrealized losses | (2) | (2) | (1) | ||
Estimated fair value | 499 | 499 | 508 | ||
Cash and cash equivalents [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 11 | 11 | 119 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | $ 11 | $ 11 | $ 119 |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 24 Months Ended |
Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2019 | |
San Diego Gas and Electric Company [Member] | General Rate Case [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Refund of 2015 memorandum account, After-tax | $ 9 | ||
Liability Associated With Tracked Income Tax Expense Differences | $ 20 | ||
San Diego Gas and Electric Company [Member] | California Public Utilities Commission [Member] | Capital Structure, Common Equity [Member] | Cost of Capital [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Return on equity | 10.30% | ||
San Diego Gas and Electric Company [Member] | Forecast [Member] | California Public Utilities Commission [Member] | Cost of Capital [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Return on equity | 10.20% | ||
Southern California Gas Company [Member] | General Rate Case [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Refund of 2015 memorandum account, After-tax | $ 12 | ||
Liability Associated With Tracked Income Tax Expense Differences | $ 41 | ||
Southern California Gas Company [Member] | California Public Utilities Commission [Member] | Capital Structure, Common Equity [Member] | Cost of Capital [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Return on equity | 10.10% | ||
Southern California Gas Company [Member] | Forecast [Member] | California Public Utilities Commission [Member] | Cost of Capital [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Return on equity | 10.05% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS (Details) | Aug. 03, 2017plaintifflawsuit | Jul. 19, 2017Bcf | Mar. 13, 2017 | Mar. 31, 2016t | Feb. 28, 2017USD ($) | Jan. 31, 2017lawsuit | Sep. 30, 2016USD ($) | Jun. 30, 2017USD ($)Bcflawsuit | Jun. 30, 2017USD ($)Bcflawsuit | Dec. 31, 2016USD ($) | [1] | Oct. 21, 2016t |
Loss Contingencies [Line Items] | ||||||||||||
Percent of arbitration expenses reduction of award | 95.00% | |||||||||||
Reserve for Aliso Canyon costs | $ 63,000,000 | $ 63,000,000 | $ 53,000,000 | |||||||||
Insurance receivable for Aliso Canyon costs | 554,000,000 | 554,000,000 | 606,000,000 | |||||||||
Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Reserve for Aliso Canyon costs | 63,000,000 | 63,000,000 | ||||||||||
Insurance receivable for Aliso Canyon costs | $ 554,000,000 | $ 554,000,000 | ||||||||||
Property Disputes [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits filed | lawsuit | 2 | |||||||||||
Consolidated Class Action Complaints [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits filed | lawsuit | 2 | |||||||||||
Property Class Action [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits filed | lawsuit | 1 | |||||||||||
Complaints Filed by Public Entities [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Settlement to be paid | $ 8,500,000 | |||||||||||
Number of lawsuits filed | lawsuit | 3 | |||||||||||
Complaints Filed by Public Entities [Member] | Health Study [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Settlement to be paid | $ 1,000,000 | |||||||||||
Legal Reserves [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency accrual | $ 10,000,000 | $ 10,000,000 | ||||||||||
Legal Reserves [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency accrual | 5,000,000 | 5,000,000 | ||||||||||
San Diego Gas and Electric Company [Member] | Wildfire [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Regulatory assets arising from wildfire litigation costs | 350,000,000 | 350,000,000 | ||||||||||
Potential after-tax charge for nonrecovery of CPUC regulatory assets | 207,000,000 | 207,000,000 | ||||||||||
San Diego Gas and Electric Company [Member] | Lawsuit Against MHI [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Percent of arbitration expenses reduction of award | 95.00% | |||||||||||
San Diego Gas and Electric Company [Member] | Legal Reserves [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency accrual | 3,000,000 | 3,000,000 | ||||||||||
Southern California Gas Company [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Reserve for Aliso Canyon costs | 63,000,000 | 63,000,000 | 53,000,000 | |||||||||
Insurance receivable for Aliso Canyon costs | 554,000,000 | 554,000,000 | $ 606,000,000 | |||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency accrual | 832,000,000 | 832,000,000 | ||||||||||
Reserve for Aliso Canyon costs | 63,000,000 | 63,000,000 | ||||||||||
Insurance receivable for Aliso Canyon costs | $ 554,000,000 | 554,000,000 | ||||||||||
Insurance proceeds | $ 273,000,000 | |||||||||||
Period of required climate reductions | 20 years | |||||||||||
Period of required regulatory climate reductions | 100 years | |||||||||||
Target emissions level (in metric tons) | t | 9,000,000 | |||||||||||
Loss Contingency, Total Actual Emissions, Floor (in metric tons) | t | 90,350 | |||||||||||
Loss Contingency, Total Actual Emissions, Ceiling (in metric tons) | t | 108,950 | |||||||||||
Mitigation requirements (in metric tons) | t | 109,000 | |||||||||||
Amount of natural gas released | Bcf | 4.62 | |||||||||||
Storage facility capacity | Bcf | 86 | 86 | ||||||||||
Proportion of total gas storage capacity (percentage) | 63.00% | 63.00% | ||||||||||
Net book value of Aliso Canyon facility | $ 582,000,000 | $ 582,000,000 | ||||||||||
Construction work in progress of new compressor station | 237,000,000 | 237,000,000 | ||||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Subsequent Event [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits filed | lawsuit | 281 | |||||||||||
Number of plaintiffs | plaintiff | 25,500 | |||||||||||
Required working gas target | Bcf | 23.6 | |||||||||||
Required working gas minimum | Bcf | 14.8 | |||||||||||
Proportion of total gas storage capacity (percentage) | 28.00% | |||||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Minimum [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Liability insurance coverage | 1,200,000,000 | 1,200,000,000 | ||||||||||
Environmental mitigation period | 5 years | |||||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Maximum [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Liability insurance coverage | 1,400,000,000 | 1,400,000,000 | ||||||||||
Environmental mitigation period | 10 years | |||||||||||
Southern California Gas Company [Member] | Damages from Product Defects [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Maximum occupational safety and health fines | $ 75,000 | |||||||||||
Penalty assessments | 233,500 | |||||||||||
Maximum other assessments in settlement of criminal complaint | $ 5,000,000 | |||||||||||
Southern California Gas Company [Member] | Legal Reserves [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency accrual | 5,000,000 | 5,000,000 | ||||||||||
Southern California Gas Company [Member] | Legal Reserves [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency accrual | $ 5,000,000 | $ 5,000,000 | ||||||||||
[1] | Derived from audited financial statements. |
COMMITMENTS AND CONTINGENCIES66
COMMITMENTS AND CONTINGENCIES - OTHER LITIGATION (Details) - HMRC VAT Claim [Member] £ in Millions, $ in Millions | Jun. 30, 2017USD ($) | Dec. 31, 2015GBP (£) | Oct. 01, 2014GBP (£) |
Loss Contingencies [Line Items] | |||
VAT tax claim paid upon appeal | £ | £ 160 | £ 86 | |
Investment in RBS Sempra commodities LLP | $ | $ 67 |
COMMITMENTS AND CONTINGENCIES67
COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS (Details) $ in Millions | Mar. 13, 2017USD ($) | Jun. 30, 2017USD ($) | May 31, 2017USD ($) | May 31, 2016USD ($) | Mar. 31, 2017MW | Jun. 30, 2017USD ($) | Dec. 31, 2015 |
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||
Settlement amount received | $ 118 | ||||||
Sempra LNG & Midstream [Member] | |||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||
Settlement amount received | $ 57 | $ 47 | |||||
Sempra LNG & Midstream [Member] | Natural Gas Contracts [Member] | |||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||
Increase (decrease) in commitment amount | $ (130) | ||||||
Increase (decrease) in commitment amount, 2017 | (133) | ||||||
Increase (decrease) in commitment amount, 2018 | 2 | ||||||
Increase (decrease) in unrecorded unconditional purchase obligations, after two years | 1 | ||||||
Sempra LNG & Midstream [Member] | Liquefied Natural Gas Contracts [Member] | |||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||
Increase (decrease) in commitment amount, 2017 | (321) | ||||||
Increase (decrease) in commitment amount, 2018 | (42) | ||||||
Increase (decrease) in commitment amount, 2019 | (20) | ||||||
Increase (decrease) in commitment amount, 2020 | (21) | ||||||
Increase (decrease) in commitment amount, 2021 | (24) | ||||||
Increase (decrease) in commitment amount, thereafter | (432) | ||||||
San Diego Gas and Electric Company [Member] | |||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||
Increase (decrease) in commitment amount | 41 | ||||||
Increase (decrease) in commitment amount, 2017 | 21 | ||||||
Increase (decrease) in commitment amount, 2018 | 26 | ||||||
Settlement amount received | $ 24 | ||||||
Increase (decrease) in commitment amount, 2019 | (8) | ||||||
Increase (decrease) in commitment amount, 2020 | 7 | ||||||
Increase (decrease) in commitment amount, 2021 | 2 | ||||||
Increase (decrease) in commitment amount, thereafter | (7) | ||||||
San Diego Gas and Electric Company [Member] | Peaker Plant Facility [Member] | |||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||
Term of power purchase agreement | 25 years | ||||||
Capital lease obligations incurred | $ 500 | ||||||
San Diego Gas and Electric Company [Member] | Purchased Power Contracts [Member] | |||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||
2,017 | 0 | 0 | |||||
2,018 | 88 | 88 | |||||
2,019 | 105 | 105 | |||||
2,020 | 105 | 105 | |||||
2,021 | 105 | 105 | |||||
Thereafter | 1,706 | 1,706 | |||||
Total minimum lease payments | 2,109 | 2,109 | |||||
Less: interest | (1,559) | (1,559) | |||||
Present value of net minimum lease payments | $ 550 | $ 550 | |||||
San Diego Gas and Electric Company [Member] | Intermediate Stage Power Plant Facility [Member] | |||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||
Term of power purchase agreement | 20 years | ||||||
Power generating capacity | MW | 500 |
COMMITMENTS AND CONTINGENCIES68
COMMITMENTS AND CONTINGENCIES - NUCLEAR INSURANCE (Details) - San Diego Gas and Electric Company [Member] $ in Millions | Jun. 30, 2017USD ($) |
Schedule Of Nuclear Insurance [Line Items] | |
Maximum nuclear liability insurance coverage | $ 450 |
Maximum secondary financial protection | 13,000 |
Maximum company contribution to secondary financial protection | 50.9 |
Annual maximum secondary financial protection contribution by company | 7.6 |
Federal nuclear property damage insurance, minimum required | 1,060 |
Maximum premium assessment under nuclear property damage insurance | 10.4 |
Maximum nuclear property insurance terrorism coverage | $ 3,240 |
COMMITMENTS AND CONTINGENCIES69
COMMITMENTS AND CONTINGENCIES - NUCLEAR FUEL DISPOSAL (Details) - San Diego Gas and Electric Company [Member] - USD ($) $ in Millions | Apr. 18, 2016 | Feb. 28, 2017 | Sep. 30, 2016 | May 31, 2016 |
Total Ownership [Member] | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Spent nuclear fuel damages awarded | $ 162 | $ 43 | ||
Filed claims amount | $ 56 | |||
SDG&E Ownership [Member] | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Spent nuclear fuel damages awarded | $ 9 | $ 32 | ||
Decrease In SONGS regulatory asset | 23 | |||
Decrease In nuclear decommissioning balancing account | 8 | |||
Decrease In operation and maintenance cost balancing account | $ 1 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | ||||
Segment Reporting Information [Line Items] | ||||||||
Number of reportable segments | segment | 6 | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
REVENUES | $ 2,533,000,000 | $ 2,156,000,000 | $ 5,564,000,000 | $ 4,778,000,000 | ||||
INTEREST EXPENSE | 159,000,000 | 142,000,000 | [1] | 328,000,000 | 285,000,000 | [1] | ||
INTEREST INCOME | 8,000,000 | 6,000,000 | [1] | 14,000,000 | 12,000,000 | [1] | ||
DEPRECIATION AND AMORTIZATION | 368,000,000 | 314,000,000 | 728,000,000 | 642,000,000 | ||||
INCOME TAX EXPENSE (BENEFIT) | 167,000,000 | (106,000,000) | [1] | 462,000,000 | 2,000,000 | [1] | ||
Equity earnings (losses), before tax | 18,000,000 | 14,000,000 | [1] | 21,000,000 | (8,000,000) | [1] | ||
Equity earnings (losses) net of tax | 0 | 33,000,000 | (8,000,000) | 50,000,000 | ||||
Earnings (losses) | 259,000,000 | 16,000,000 | [1] | 700,000,000 | 369,000,000 | [1] | ||
Segment Reporting Information, Additional Information [Abstract] | ||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 1,802,000,000 | 2,006,000,000 | ||||||
ASSETS | 49,376,000,000 | 49,376,000,000 | $ 47,786,000,000 | [2] | ||||
EQUITY METHOD AND OTHER INVESTMENTS | 2,134,000,000 | 2,134,000,000 | 2,097,000,000 | [2] | ||||
Operating Segments [Member] | SDG&E [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
REVENUES | 1,058,000,000 | 992,000,000 | 2,115,000,000 | 1,983,000,000 | ||||
INTEREST EXPENSE | 49,000,000 | 48,000,000 | 98,000,000 | 96,000,000 | ||||
DEPRECIATION AND AMORTIZATION | 166,000,000 | 158,000,000 | 329,000,000 | 317,000,000 | ||||
INCOME TAX EXPENSE (BENEFIT) | 54,000,000 | 48,000,000 | 144,000,000 | 113,000,000 | ||||
Earnings (losses) | 149,000,000 | 100,000,000 | 304,000,000 | 236,000,000 | ||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 763,000,000 | 602,000,000 | ||||||
ASSETS | 18,708,000,000 | 18,708,000,000 | 17,719,000,000 | |||||
Operating Segments [Member] | SoCalGas [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
REVENUES | 770,000,000 | 617,000,000 | 2,011,000,000 | 1,650,000,000 | ||||
INTEREST EXPENSE | 26,000,000 | 24,000,000 | 51,000,000 | 46,000,000 | ||||
DEPRECIATION AND AMORTIZATION | 126,000,000 | 112,000,000 | 252,000,000 | 234,000,000 | ||||
INCOME TAX EXPENSE (BENEFIT) | 19,000,000 | (29,000,000) | 117,000,000 | 54,000,000 | ||||
Earnings (losses) | 58,000,000 | (1,000,000) | 261,000,000 | 198,000,000 | ||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 682,000,000 | 650,000,000 | ||||||
ASSETS | 13,743,000,000 | 13,743,000,000 | 13,424,000,000 | |||||
Operating Segments [Member] | Sempra South American Utilities [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
REVENUES | 381,000,000 | 385,000,000 | 793,000,000 | 785,000,000 | ||||
INTEREST EXPENSE | 11,000,000 | 11,000,000 | 20,000,000 | 20,000,000 | ||||
INTEREST INCOME | 6,000,000 | 5,000,000 | 11,000,000 | 10,000,000 | ||||
DEPRECIATION AND AMORTIZATION | 13,000,000 | 14,000,000 | 26,000,000 | 27,000,000 | ||||
INCOME TAX EXPENSE (BENEFIT) | 20,000,000 | 15,000,000 | 39,000,000 | 29,000,000 | ||||
Equity earnings (losses) net of tax | 0 | 0 | 1,000,000 | 2,000,000 | ||||
Earnings (losses) | 45,000,000 | 43,000,000 | 92,000,000 | 81,000,000 | ||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 77,000,000 | 82,000,000 | ||||||
ASSETS | 3,750,000,000 | 3,750,000,000 | 3,591,000,000 | |||||
EQUITY METHOD AND OTHER INVESTMENTS | 20,000,000 | 20,000,000 | 0 | |||||
Operating Segments [Member] | Sempra Mexico [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
REVENUES | 273,000,000 | 147,000,000 | 537,000,000 | 285,000,000 | ||||
INTEREST EXPENSE | 20,000,000 | 4,000,000 | 52,000,000 | 8,000,000 | ||||
INTEREST INCOME | 3,000,000 | 1,000,000 | 5,000,000 | 3,000,000 | ||||
DEPRECIATION AND AMORTIZATION | 37,000,000 | 15,000,000 | 73,000,000 | 32,000,000 | ||||
INCOME TAX EXPENSE (BENEFIT) | 102,000,000 | (12,000,000) | 244,000,000 | 28,000,000 | ||||
Equity earnings (losses) net of tax | 0 | 33,000,000 | (9,000,000) | 48,000,000 | ||||
Earnings (losses) | (9,000,000) | 57,000,000 | 39,000,000 | 75,000,000 | ||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 155,000,000 | 140,000,000 | ||||||
ASSETS | 7,835,000,000 | 7,835,000,000 | 7,542,000,000 | |||||
EQUITY METHOD AND OTHER INVESTMENTS | 234,000,000 | 234,000,000 | 180,000,000 | |||||
Operating Segments [Member] | Sempra Renewables [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
REVENUES | 26,000,000 | 6,000,000 | 48,000,000 | 13,000,000 | ||||
INTEREST EXPENSE | 4,000,000 | 0 | 8,000,000 | 0 | ||||
INTEREST INCOME | 2,000,000 | 0 | 3,000,000 | 1,000,000 | ||||
DEPRECIATION AND AMORTIZATION | 10,000,000 | 2,000,000 | 19,000,000 | 3,000,000 | ||||
INCOME TAX EXPENSE (BENEFIT) | (5,000,000) | (9,000,000) | (16,000,000) | (22,000,000) | ||||
Equity earnings (losses), before tax | 16,000,000 | 11,000,000 | 18,000,000 | 18,000,000 | ||||
Earnings (losses) | 23,000,000 | 12,000,000 | 34,000,000 | 26,000,000 | ||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 100,000,000 | 457,000,000 | ||||||
ASSETS | 2,349,000,000 | 2,349,000,000 | 3,644,000,000 | |||||
EQUITY METHOD AND OTHER INVESTMENTS | 825,000,000 | 825,000,000 | 844,000,000 | |||||
Operating Segments [Member] | Sempra LNG & Midstream [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
REVENUES | 122,000,000 | 90,000,000 | 254,000,000 | 220,000,000 | ||||
INTEREST EXPENSE | 9,000,000 | 10,000,000 | 20,000,000 | 22,000,000 | ||||
INTEREST INCOME | 12,000,000 | 17,000,000 | 29,000,000 | 33,000,000 | ||||
DEPRECIATION AND AMORTIZATION | 11,000,000 | 12,000,000 | 21,000,000 | 25,000,000 | ||||
INCOME TAX EXPENSE (BENEFIT) | 18,000,000 | (99,000,000) | 19,000,000 | (128,000,000) | ||||
Equity earnings (losses), before tax | 2,000,000 | 3,000,000 | 3,000,000 | (26,000,000) | ||||
Earnings (losses) | 27,000,000 | (149,000,000) | 28,000,000 | (181,000,000) | ||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 12,000,000 | 68,000,000 | ||||||
ASSETS | 4,861,000,000 | 4,861,000,000 | 5,564,000,000 | |||||
EQUITY METHOD AND OTHER INVESTMENTS | 977,000,000 | 977,000,000 | 997,000,000 | |||||
All other [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
INTEREST EXPENSE | 67,000,000 | 74,000,000 | 135,000,000 | 146,000,000 | ||||
DEPRECIATION AND AMORTIZATION | 5,000,000 | 1,000,000 | 8,000,000 | 4,000,000 | ||||
INCOME TAX EXPENSE (BENEFIT) | (41,000,000) | (20,000,000) | (85,000,000) | (72,000,000) | ||||
Earnings (losses) | (34,000,000) | (46,000,000) | (58,000,000) | (66,000,000) | ||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 13,000,000 | 7,000,000 | ||||||
ASSETS | 660,000,000 | 660,000,000 | 475,000,000 | |||||
EQUITY METHOD AND OTHER INVESTMENTS | 78,000,000 | 78,000,000 | 76,000,000 | |||||
Intersegment eliminations [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
REVENUES | (97,000,000) | (81,000,000) | (194,000,000) | (158,000,000) | ||||
INTEREST EXPENSE | (27,000,000) | (29,000,000) | (56,000,000) | (53,000,000) | ||||
INTEREST INCOME | (15,000,000) | (17,000,000) | (34,000,000) | (35,000,000) | ||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||
ASSETS | (2,530,000,000) | (2,530,000,000) | $ (4,173,000,000) | |||||
Intersegment eliminations [Member] | SDG&E [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
REVENUES | 3,000,000 | 4,000,000 | 3,000,000 | |||||
Intersegment eliminations [Member] | SoCalGas [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
REVENUES | 17,000,000 | 18,000,000 | 35,000,000 | 35,000,000 | ||||
Intersegment eliminations [Member] | Sempra Mexico [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
REVENUES | 26,000,000 | 27,000,000 | 51,000,000 | 54,000,000 | ||||
Intersegment eliminations [Member] | Sempra LNG & Midstream [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
REVENUES | $ 51,000,000 | $ 36,000,000 | $ 104,000,000 | $ 66,000,000 | ||||
[1] | As adjusted for the adoption of ASU 2016-09 as of January 1, 2016. | |||||||
[2] | Derived from audited financial statements. |