DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2019 | May 02, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Sempra Energy | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Shares Outstanding | 274,388,245 | |
Entity Central Index Key | 0001032208 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
REVENUES | ||
Utilities operating revenue | $ 2,515 | $ 2,190 |
Energy-related businesses | 383 | 346 |
Total revenues | 2,898 | 2,536 |
Operating expenses | ||
Operation and maintenance | (832) | (741) |
Depreciation and amortization | (383) | (372) |
Franchise fees and other taxes | (130) | (117) |
Operating expenses | ||
Other income, net | 82 | 152 |
Interest income | 21 | 29 |
Interest expense | (260) | (206) |
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 501 | 593 |
Income tax expense | (42) | (242) |
Equity earnings (losses) | 101 | (21) |
Income from continuing operations, net of income tax | 560 | 330 |
(Loss) income from discontinued operations, net of income tax | (42) | 28 |
Net income | 518 | 358 |
(Earnings) losses attributable to noncontrolling interest | (41) | 17 |
Mandatory convertible preferred stock dividends | (36) | (28) |
Earnings attributable to common shares | $ 441 | $ 347 |
Basic earnings (losses) per common share: | ||
Earnings from continuing operations attributable to common shares (in usd per share) | $ 1.79 | $ 1.26 |
(Losses) earnings from discontinued operations attributable to common shares (in usd per share) | (0.19) | 0.08 |
Earnings attributable to common shares (in usd per share) | $ 1.60 | $ 1.34 |
Weighted-average common shares outstanding | 274,674 | 257,932 |
Earnings Per Share, Diluted [Abstract] | ||
Earnings from continuing operations attributable to common shares (in usd per share) | $ 1.78 | $ 1.25 |
(Losses) earnings from discontinued operations attributable to common shares (in usd per share) | (0.19) | 0.08 |
Earnings from continuing operations attributable to common shares (n usd per share) | $ 1.59 | $ 1.33 |
Weighted-average common share outstanding, diluted | 277,228 | 259,490 |
Natural gas [Member] | ||
Operating expenses | ||
Operating expenses | $ (531) | $ (348) |
Electric fuel and purchased power [Member] | ||
Operating expenses | ||
Operating expenses | (256) | (271) |
Energy-related businesses [Member] | ||
Operating expenses | ||
Operating expenses | (108) | (69) |
San Diego Gas and Electric Company [Member] | ||
REVENUES | ||
Electric | 940 | 884 |
Natural gas | 205 | 171 |
Utilities operating revenue | 1,145 | 1,055 |
Operating expenses | ||
Cost of electric fuel and purchased power | 258 | 274 |
Cost of natural gas | 79 | 50 |
Operation and maintenance | 286 | 248 |
Depreciation and amortization | 186 | 166 |
Franchise fees and other taxes | 74 | 69 |
Total operating expenses | 883 | 807 |
Operating income | 262 | 248 |
Other income, net | 22 | 28 |
Interest income | 1 | 1 |
Interest expense | (103) | (52) |
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 182 | 225 |
Income tax expense | (5) | (56) |
Net income | 177 | 169 |
(Earnings) losses attributable to noncontrolling interest | (1) | 1 |
Earnings attributable to common shares | 176 | 170 |
Southern California Gas Company [Member] | ||
REVENUES | ||
Utilities operating revenue | 1,361 | 1,126 |
Operating expenses | ||
Cost of natural gas | 455 | 289 |
Operation and maintenance | 410 | 384 |
Depreciation and amortization | 147 | 135 |
Franchise fees and other taxes | 48 | 40 |
Total operating expenses | 1,060 | 848 |
Operating income | 301 | 278 |
Other income, net | 16 | 33 |
Interest expense | (34) | (27) |
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 283 | 284 |
Income tax expense | (19) | (59) |
Net income | 264 | 225 |
Earnings attributable to common shares | $ 264 | $ 225 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income (loss) | $ 518 | $ 358 |
Other comprehensive income (loss): | ||
Total other comprehensive (loss) income | (11) | 99 |
Pretax amount [Member] | ||
Net income (loss) | 670 | 664 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 32 | 24 |
Financial instruments | (68) | 88 |
Pension and other postretirement benefits | 4 | 3 |
Total other comprehensive (loss) income | (32) | 115 |
Comprehensive income (loss) | 638 | 779 |
Income tax (expense) benefit [Member] | ||
Net income (loss) | (193) | (289) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 0 | 0 |
Financial instruments | 22 | (30) |
Pension and other postretirement benefits | (1) | (1) |
Total other comprehensive (loss) income | 21 | (31) |
Comprehensive income (loss) | (172) | (320) |
Net-of-tax amount [Member] | ||
Net income (loss) | 477 | 375 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 32 | 24 |
Financial instruments | (46) | 58 |
Pension and other postretirement benefits | 3 | 2 |
Total other comprehensive (loss) income | (11) | 84 |
Comprehensive income (loss) | 466 | 459 |
Noncontrolling Interests (after-tax) [Member] | ||
Net income (loss) | 41 | (17) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 4 | 5 |
Financial instruments | (4) | 10 |
Pension and other postretirement benefits | 0 | 0 |
Total other comprehensive (loss) income | 0 | 15 |
Comprehensive income (loss) | 41 | (2) |
Total [Member] | ||
Net income (loss) | 518 | 358 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 36 | 29 |
Financial instruments | (50) | 68 |
Pension and other postretirement benefits | 3 | 2 |
Total other comprehensive (loss) income | (11) | 99 |
Comprehensive income (loss) | 507 | 457 |
San Diego Gas and Electric Company [Member] | ||
Net income (loss) | 177 | 169 |
Other comprehensive income (loss): | ||
Total other comprehensive (loss) income | 1 | 4 |
San Diego Gas and Electric Company [Member] | Pretax amount [Member] | ||
Net income (loss) | 181 | 226 |
Other comprehensive income (loss): | ||
Financial instruments | 0 | 0 |
Total other comprehensive (loss) income | 0 | 0 |
Comprehensive income (loss) | 181 | 226 |
San Diego Gas and Electric Company [Member] | Income tax (expense) benefit [Member] | ||
Net income (loss) | (5) | (56) |
Other comprehensive income (loss): | ||
Financial instruments | 0 | 0 |
Total other comprehensive (loss) income | 0 | 0 |
Comprehensive income (loss) | (5) | (56) |
San Diego Gas and Electric Company [Member] | Net-of-tax amount [Member] | ||
Net income (loss) | 176 | 170 |
Other comprehensive income (loss): | ||
Financial instruments | 0 | 0 |
Total other comprehensive (loss) income | 0 | 0 |
Comprehensive income (loss) | 176 | 170 |
San Diego Gas and Electric Company [Member] | Noncontrolling Interests (after-tax) [Member] | ||
Net income (loss) | 1 | (1) |
Other comprehensive income (loss): | ||
Financial instruments | 1 | 4 |
Total other comprehensive (loss) income | 1 | 4 |
Comprehensive income (loss) | 2 | 3 |
San Diego Gas and Electric Company [Member] | Total [Member] | ||
Net income (loss) | 177 | 169 |
Other comprehensive income (loss): | ||
Financial instruments | 1 | 4 |
Total other comprehensive (loss) income | 1 | 4 |
Comprehensive income (loss) | 178 | 173 |
Southern California Gas Company [Member] | ||
Net income (loss) | 264 | 225 |
Southern California Gas Company [Member] | Pretax amount [Member] | ||
Other comprehensive income (loss): | ||
Comprehensive income (loss) | 283 | 284 |
Southern California Gas Company [Member] | Income tax (expense) benefit [Member] | ||
Other comprehensive income (loss): | ||
Comprehensive income (loss) | (19) | (59) |
Southern California Gas Company [Member] | Net-of-tax amount [Member] | ||
Other comprehensive income (loss): | ||
Comprehensive income (loss) | $ 264 | $ 225 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 78,000,000 | $ 102,000,000 | [1] |
Restricted cash | 41,000,000 | 35,000,000 | [1] |
Accounts receivable – trade, net | 1,222,000,000 | 1,215,000,000 | [1] |
Accounts receivable – other, net | 320,000,000 | 320,000,000 | [1] |
Due from unconsolidated affiliates | 50,000,000 | 37,000,000 | [1] |
Income taxes receivable | 121,000,000 | 60,000,000 | [1] |
Inventories | 189,000,000 | 258,000,000 | [1] |
Regulatory assets | 87,000,000 | 138,000,000 | [1] |
Greenhouse gas allowances | 61,000,000 | 59,000,000 | [1] |
Other | 262,000,000 | 249,000,000 | [1] |
Total current assets | 3,262,000,000 | 3,645,000,000 | [1] |
Other assets: | |||
Restricted cash | 21,000,000 | 21,000,000 | [1] |
Due from unconsolidated affiliates | 668,000,000 | 644,000,000 | [1] |
Regulatory assets | 1,838,000,000 | 1,589,000,000 | [1] |
Nuclear decommissioning trusts | 1,037,000,000 | 974,000,000 | [1] |
Investment in Oncor Holdings | 9,748,000,000 | 9,652,000,000 | [1] |
Other investments | 2,290,000,000 | 2,320,000,000 | [1] |
Goodwill | 1,602,000,000 | 1,602,000,000 | [1] |
Other intangible assets | 222,000,000 | 224,000,000 | [1] |
Dedicated assets in support of certain benefit plans | 413,000,000 | 416,000,000 | [1] |
Insurance receivable for Aliso Canyon costs | 477,000,000 | 461,000,000 | [1] |
Deferred income taxes | 139,000,000 | 141,000,000 | [1] |
Greenhouse gas allowances | 353,000,000 | 289,000,000 | [1] |
Right-of-use assets – operating leases | 612,000,000 | ||
Assets held for sale in discontinued operations | 3,388,000,000 | 3,259,000,000 | [1] |
Sundry | 850,000,000 | 962,000,000 | [1] |
Total other assets | 23,658,000,000 | 22,554,000,000 | [1] |
Property, plant and equipment: | |||
Property, plant and equipment | 47,105,000,000 | 46,615,000,000 | [1] |
Less accumulated depreciation and amortization | (12,407,000,000) | (12,176,000,000) | [1] |
Property, plant and equipment, net | 34,698,000,000 | 34,439,000,000 | [1] |
Total assets | 61,618,000,000 | 60,638,000,000 | [1] |
Current liabilities: | |||
Short-term debt | 2,523,000,000 | 2,024,000,000 | [1] |
Accounts payable – trade | 989,000,000 | 1,160,000,000 | [1] |
Accounts payable – other | 166,000,000 | 138,000,000 | [1] |
Due to unconsolidated affiliates | 10,000,000 | 10,000,000 | [1] |
Dividends and interest payable | 496,000,000 | 480,000,000 | [1] |
Accrued compensation and benefits | 264,000,000 | 440,000,000 | [1] |
Regulatory liabilities | 523,000,000 | 105,000,000 | [1] |
Current portion of long-term debt and finance leases | 2,152,000,000 | 1,644,000,000 | [1] |
Reserve for Aliso Canyon costs | 60,000,000 | 160,000,000 | [1] |
Greenhouse gas obligations | 61,000,000 | 59,000,000 | [1] |
Liabilities held for sale in discontinued operations | 375,000,000 | 368,000,000 | [1] |
Other | 993,000,000 | 935,000,000 | [1] |
Total current liabilities | 8,612,000,000 | 7,523,000,000 | [1] |
Long-term debt and finance leases | 19,738,000,000 | 20,903,000,000 | [1] |
Deferred credits and other liabilities: | |||
Due to unconsolidated affiliates | 38,000,000 | 37,000,000 | [1] |
Pension and other postretirement benefit plan obligations, net of plan assets | 1,155,000,000 | 1,143,000,000 | [1] |
Deferred income taxes | 2,622,000,000 | 2,321,000,000 | [1] |
Deferred investment tax credits | 23,000,000 | 24,000,000 | [1] |
Regulatory liabilities | 3,996,000,000 | 4,016,000,000 | [1] |
Asset retirement obligations | 2,795,000,000 | 2,786,000,000 | [1] |
Greenhouse gas obligations | 174,000,000 | 131,000,000 | [1] |
Liabilities held for sale in discontinued operations | 1,046,000,000 | 1,013,000,000 | [1] |
Deferred credits and other | 1,949,000,000 | 1,493,000,000 | [1] |
Total deferred credits and other liabilities | 13,798,000,000 | 12,964,000,000 | [1] |
Commitments and contingencies (Note 11) | [1] | ||
Equity: | |||
Common stock | 5,568,000,000 | 5,540,000,000 | [1] |
Retained earnings | 10,337,000,000 | 10,104,000,000 | [1] |
Accumulated other comprehensive income (loss) | (817,000,000) | (764,000,000) | [1] |
Total shareholders’ equity | 17,346,000,000 | 17,138,000,000 | [1] |
Preferred stock of subsidiary | 20,000,000 | 20,000,000 | [1] |
Other noncontrolling interests | 2,104,000,000 | 2,090,000,000 | [1] |
Total equity | 19,470,000,000 | 19,248,000,000 | [1] |
Total liabilities and equity | 61,618,000,000 | 60,638,000,000 | [1] |
San Diego Gas and Electric Company [Member] | |||
Current assets: | |||
Cash and cash equivalents | 10,000,000 | 8,000,000 | [1] |
Restricted cash | 21,000,000 | 11,000,000 | [1] |
Accounts receivable – trade, net | 390,000,000 | 368,000,000 | [1] |
Accounts receivable – other, net | 96,000,000 | 106,000,000 | [1] |
Inventories | 99,000,000 | 102,000,000 | [1] |
Prepaid expenses | 53,000,000 | 74,000,000 | [1] |
Regulatory assets | 71,000,000 | 123,000,000 | [1] |
Fixed-price contracts and other derivatives | 66,000,000 | 82,000,000 | [1] |
Greenhouse gas allowances | 15,000,000 | 15,000,000 | [1] |
Other | 26,000,000 | 5,000,000 | [1] |
Total current assets | 847,000,000 | 894,000,000 | [1] |
Other assets: | |||
Restricted cash | 18,000,000 | 18,000,000 | [1] |
Regulatory assets | 467,000,000 | 454,000,000 | [1] |
Nuclear decommissioning trusts | 1,037,000,000 | 974,000,000 | [1] |
Greenhouse gas allowances | 169,000,000 | 155,000,000 | [1] |
Right-of-use assets – operating leases | 135,000,000 | ||
Sundry | 421,000,000 | 420,000,000 | [1] |
Total other assets | 2,247,000,000 | 2,021,000,000 | [1] |
Property, plant and equipment: | |||
Property, plant and equipment | 21,950,000,000 | 21,662,000,000 | [1] |
Less accumulated depreciation and amortization | (5,486,000,000) | (5,352,000,000) | [1] |
Property, plant and equipment, net | 16,464,000,000 | 16,310,000,000 | [1] |
Total assets | 19,558,000,000 | 19,225,000,000 | [1] |
Current liabilities: | |||
Short-term debt | 238,000,000 | 291,000,000 | [1] |
Accounts payable | 360,000,000 | 439,000,000 | [1] |
Due to unconsolidated affiliates | 63,000,000 | 61,000,000 | [1] |
Accrued compensation and benefits | 52,000,000 | 117,000,000 | [1] |
Accrued franchise fees | 60,000,000 | 64,000,000 | [1] |
Regulatory liabilities | 47,000,000 | 53,000,000 | [1] |
Current portion of long-term debt and finance leases | 89,000,000 | 81,000,000 | [1] |
Customer deposits | 70,000,000 | 70,000,000 | [1] |
Greenhouse gas obligations | 15,000,000 | 15,000,000 | [1] |
Asset retirement obligations | 93,000,000 | 96,000,000 | [1] |
Other | 280,000,000 | 141,000,000 | [1] |
Total current liabilities | 1,367,000,000 | 1,428,000,000 | [1] |
Long-term debt and finance leases | 6,113,000,000 | 6,138,000,000 | [1] |
Deferred credits and other liabilities: | |||
Pension and other postretirement benefit plan obligations, net of plan assets | 217,000,000 | 212,000,000 | [1] |
Deferred income taxes | 1,653,000,000 | 1,616,000,000 | [1] |
Deferred investment tax credits | 15,000,000 | 16,000,000 | [1] |
Regulatory liabilities | 2,470,000,000 | 2,404,000,000 | [1] |
Asset retirement obligations | 777,000,000 | 778,000,000 | [1] |
Greenhouse gas obligations | 43,000,000 | 30,000,000 | [1] |
Deferred credits and other | 610,000,000 | 488,000,000 | [1] |
Total deferred credits and other liabilities | 5,785,000,000 | 5,544,000,000 | [1] |
Commitments and contingencies (Note 11) | [1] | ||
Equity: | |||
Preferred stock | 0 | 0 | [1] |
Common stock | 1,338,000,000 | 1,338,000,000 | [1] |
Retained earnings | 4,865,000,000 | 4,687,000,000 | [1] |
Accumulated other comprehensive income (loss) | (12,000,000) | (10,000,000) | [1] |
Total shareholders’ equity | 6,191,000,000 | 6,015,000,000 | [1] |
Other noncontrolling interests | 102,000,000 | 100,000,000 | [1] |
Total equity | 6,293,000,000 | 6,115,000,000 | [1] |
Total liabilities and equity | 19,558,000,000 | 19,225,000,000 | [1] |
Southern California Gas Company [Member] | |||
Current assets: | |||
Cash and cash equivalents | 3,000,000 | 18,000,000 | [1] |
Accounts receivable – trade, net | 674,000,000 | 634,000,000 | [1] |
Accounts receivable – other, net | 91,000,000 | 97,000,000 | [1] |
Due from unconsolidated affiliates | 15,000,000 | 7,000,000 | [1] |
Inventories | 58,000,000 | 134,000,000 | [1] |
Regulatory assets | 11,000,000 | 12,000,000 | [1] |
Greenhouse gas allowances | 39,000,000 | 37,000,000 | [1] |
Other | 39,000,000 | 31,000,000 | [1] |
Total current assets | 930,000,000 | 970,000,000 | [1] |
Other assets: | |||
Regulatory assets | 1,286,000,000 | 1,051,000,000 | [1] |
Insurance receivable for Aliso Canyon costs | 477,000,000 | 461,000,000 | [1] |
Greenhouse gas allowances | 164,000,000 | 116,000,000 | [1] |
Right-of-use assets – operating leases | 110,000,000 | ||
Sundry | 356,000,000 | 352,000,000 | [1] |
Total other assets | 2,393,000,000 | 1,980,000,000 | [1] |
Property, plant and equipment: | |||
Property, plant and equipment | 18,347,000,000 | 18,138,000,000 | [1] |
Less accumulated depreciation and amortization | (5,766,000,000) | (5,699,000,000) | [1] |
Property, plant and equipment, net | 12,581,000,000 | 12,439,000,000 | [1] |
Total assets | 15,904,000,000 | 15,389,000,000 | [1] |
Current liabilities: | |||
Short-term debt | 190,000,000 | 256,000,000 | [1] |
Accounts payable – trade | 427,000,000 | 556,000,000 | [1] |
Accounts payable – other | 98,000,000 | 93,000,000 | [1] |
Due to unconsolidated affiliates | 42,000,000 | 34,000,000 | [1] |
Accrued compensation and benefits | 101,000,000 | 159,000,000 | [1] |
Regulatory liabilities | 476,000,000 | 52,000,000 | [1] |
Current portion of long-term debt and finance leases | 3,000,000 | 3,000,000 | [1] |
Customer deposits | 71,000,000 | 101,000,000 | [1] |
Reserve for Aliso Canyon costs | 60,000,000 | 160,000,000 | [1] |
Greenhouse gas obligations | 39,000,000 | 37,000,000 | [1] |
Asset retirement obligations | 90,000,000 | 90,000,000 | [1] |
Other | 333,000,000 | 217,000,000 | [1] |
Total current liabilities | 1,930,000,000 | 1,758,000,000 | [1] |
Long-term debt and finance leases | 3,429,000,000 | 3,427,000,000 | [1] |
Deferred credits and other liabilities: | |||
Pension obligation, net of plan assets | 773,000,000 | 760,000,000 | [1] |
Deferred income taxes | 1,204,000,000 | 1,177,000,000 | [1] |
Deferred investment tax credits | 8,000,000 | 8,000,000 | [1] |
Regulatory liabilities | 1,526,000,000 | 1,612,000,000 | [1] |
Asset retirement obligations | 1,982,000,000 | 1,973,000,000 | [1] |
Greenhouse gas obligations | 110,000,000 | 86,000,000 | [1] |
Deferred credits and other | 422,000,000 | 330,000,000 | [1] |
Total deferred credits and other liabilities | 6,025,000,000 | 5,946,000,000 | [1] |
Commitments and contingencies (Note 11) | [1] | ||
Equity: | |||
Preferred stock | 22,000,000 | 22,000,000 | [1] |
Common stock | 866,000,000 | 866,000,000 | [1] |
Retained earnings | 3,656,000,000 | 3,390,000,000 | [1] |
Accumulated other comprehensive income (loss) | (24,000,000) | (20,000,000) | [1] |
Total shareholders’ equity | 4,520,000,000 | 4,258,000,000 | [1] |
Total equity | 4,520,000,000 | 4,258,000,000 | |
Total liabilities and equity | 15,904,000,000 | 15,389,000,000 | [1] |
Convertible Preferred Stock Series A [Member] | |||
Equity: | |||
Preferred stock | 1,693,000,000 | 1,693,000,000 | [1] |
Convertible Preferred Stock Series B [Member] | |||
Equity: | |||
Preferred stock | 565,000,000 | 565,000,000 | [1] |
Disposal Group Held-for-sale [Member] | |||
Current assets: | |||
Assets held for sale in discontinued operations | 374,000,000 | 713,000,000 | [1] |
Disposal Group Held-for-sale [Member] | |||
Current assets: | |||
Assets held for sale in discontinued operations | $ 457,000,000 | $ 459,000,000 | [1] |
[1] | Derived from audited financial statements. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | ||
Current portion of long-term debt and finance leases | $ 2,152 | $ 1,644 | [1] |
Property, plant and equipment, net | 34,698 | 34,439 | [1] |
Long-term debt and finance leases | $ 19,738 | $ 20,903 | [1] |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 | |
Common stock, shares outstanding (in shares) | 274,000,000 | 274,000,000 | |
Otay Mesa VIE [Member] | |||
Current portion of long-term debt and finance leases | $ 36 | $ 28 | |
Property, plant and equipment, net | 287 | 295 | |
Long-term debt and finance leases | 182 | 190 | |
San Diego Gas and Electric Company [Member] | |||
Current portion of long-term debt and finance leases | 89 | 81 | [1] |
Property, plant and equipment, net | 16,464 | 16,310 | [1] |
Long-term debt and finance leases | $ 6,113 | $ 6,138 | [1] |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Preferred stock, shares authorized (in shares) | 45,000,000 | 45,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Common stock, shares authorized (in shares) | 255,000,000 | 255,000,000 | |
Common stock, shares outstanding (in shares) | 117,000,000 | 117,000,000 | |
San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member] | |||
Current portion of long-term debt and finance leases | $ 36 | $ 28 | |
Property, plant and equipment, net | 287 | 295 | |
Long-term debt and finance leases | 182 | 190 | |
Southern California Gas Company [Member] | |||
Current portion of long-term debt and finance leases | 3 | 3 | [1] |
Property, plant and equipment, net | 12,581 | 12,439 | [1] |
Long-term debt and finance leases | $ 3,429 | $ 3,427 | [1] |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Preferred stock, shares authorized (in shares) | 11,000,000 | 11,000,000 | |
Preferred stock, shares issued (in shares) | 1,000,000 | 1,000,000 | |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Common stock, shares outstanding (in shares) | 91,000,000 | 91,000,000 | |
Convertible Preferred Stock Series A [Member] | |||
Stockholders' Equity Attributable to Parent [Abstract] | |||
Preferred Stock, Dividend Rate, Percentage | 6.00% | 6.00% | |
Preferred stock, shares issued (in shares) | 17,250,000 | 17,250,000 | |
Preferred stock, shares outstanding (in shares) | 17,250,000 | 17,250,000 | |
Convertible Preferred Stock Series B [Member] | |||
Stockholders' Equity Attributable to Parent [Abstract] | |||
Preferred Stock, Dividend Rate, Percentage | 6.75% | 6.75% | |
Preferred stock, shares issued (in shares) | 5,750,000 | 5,750,000 | |
Preferred stock, shares outstanding (in shares) | 5,750,000 | 5,750,000 | |
[1] | Derived from audited financial statements. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 518,000,000 | $ 358,000,000 |
Loss (income) from discontinued operations, net of income tax | 42,000,000 | (28,000,000) |
Income from continuing operations, net of income tax | 560,000,000 | 330,000,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 383,000,000 | 372,000,000 |
Deferred income taxes and investment tax credits | 24,000,000 | 202,000,000 |
Equity (earnings) losses | (101,000,000) | 21,000,000 |
Share-based compensation expense | 21,000,000 | 15,000,000 |
Fixed-price contracts and other derivatives | (27,000,000) | (35,000,000) |
Other | 13,000,000 | 7,000,000 |
Intercompany activities with discontinued operations, net | 31,000,000 | 0 |
Net change in other working capital components | 169,000,000 | 101,000,000 |
Insurance receivable for Aliso Canyon costs | (16,000,000) | (29,000,000) |
Changes in other noncurrent assets and liabilities, net | (199,000,000) | (94,000,000) |
Net cash provided by continuing operations | 858,000,000 | 890,000,000 |
Net cash provided by discontinued operations | 93,000,000 | 76,000,000 |
Net cash provided by operating activities | 951,000,000 | 966,000,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (783,000,000) | (979,000,000) |
Expenditures for investments and acquisitions, net of cash and cash equivalents acquired | (94,000,000) | (9,617,000,000) |
Proceeds from sale of assets | 327,000,000 | 0 |
Purchases of nuclear decommissioning trust assets | (225,000,000) | (210,000,000) |
Proceeds from sales by nuclear decommissioning trusts | 225,000,000 | 210,000,000 |
Advances to unconsolidated affiliates | 0 | (81,000,000) |
Repayments of advances to unconsolidated affiliates | 3,000,000 | 1,000,000 |
Intercompany activities with discontinued operations, net | 0 | (3,000,000) |
Other | 7,000,000 | 35,000,000 |
Net cash used in continuing operations | (540,000,000) | (10,644,000,000) |
Net cash used in discontinued operations | (70,000,000) | (58,000,000) |
Net cash used in investing activities | (610,000,000) | (10,702,000,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Common dividends paid | (232,000,000) | (194,000,000) |
Preferred dividends paid | (36,000,000) | 0 |
Issuances of mandatory convertible preferred stock, net of $32 in offering costs | 0 | 1,693,000,000 |
Issuances of common stock, net of $24 in offering costs in 2018 | 11,000,000 | 1,278,000,000 |
Repurchases of common stock | (14,000,000) | (19,000,000) |
Issuances of debt (maturities greater than 90 days) | 304,000,000 | 5,949,000,000 |
Payments on debt (maturities greater than 90 days) and finance leases | (837,000,000) | (154,000,000) |
Payments on finance leases | (5,000,000) | |
Increase (decrease) in short-term debt, net | 497,000,000 | 1,149,000,000 |
Purchases of and distributions to noncontrolling interests | (27,000,000) | (3,000,000) |
Intercompany activities with discontinued operations, net | (2,000,000) | 67,000,000 |
Other | 0 | (82,000,000) |
Net cash (used in) provided by continuing operations | (336,000,000) | 9,684,000,000 |
Net cash used in discontinued operations | (45,000,000) | (6,000,000) |
Net cash (used in) provided by financing activities | (381,000,000) | 9,678,000,000 |
Effect of exchange rate changes in continuing operations | 0 | 1,000,000 |
Effect of exchange rate changes in discontinued operations | 1,000,000 | 0 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,000,000 | 1,000,000 |
Increase (decrease) in cash, cash equivalents and restricted cash, including discontinued operations | (39,000,000) | (57,000,000) |
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 | 246,000,000 | 364,000,000 |
Cash, cash equivalents and restricted cash, including discontinued operations, March 31 | 207,000,000 | 307,000,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 257,000,000 | 108,000,000 |
Income tax payments, net of refunds | 16,000,000 | 18,000,000 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Assets acquired | 0 | 9,670,000,000 |
Liabilities assumed | 0 | (104,000,000) |
Cash paid | 0 | 9,566,000,000 |
Accrued capital expenditures | 388,000,000 | 316,000,000 |
Accrued Merger-related transaction and financing costs | 0 | 6,000,000 |
Increase in finance lease obligations for investment in property, plant and equipment | 7,000,000 | 5,000,000 |
Common dividends issued in stock | 13,000,000 | 13,000,000 |
Preferred stock [Member] | ||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Dividends declared but not paid | 36,000,000 | 28,000,000 |
Common Stock [Member] | ||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Dividends declared but not paid | 265,000,000 | 236,000,000 |
San Diego Gas and Electric Company [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 177,000,000 | 169,000,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 186,000,000 | 166,000,000 |
Deferred income taxes and investment tax credits | (28,000,000) | (11,000,000) |
Other | 1,000,000 | 3,000,000 |
Net change in other working capital components | 96,000,000 | 102,000,000 |
Changes in other noncurrent assets and liabilities, net | 11,000,000 | (25,000,000) |
Net cash provided by operating activities | 443,000,000 | 404,000,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (356,000,000) | (475,000,000) |
Purchases of nuclear decommissioning trust assets | (225,000,000) | (210,000,000) |
Proceeds from sales by nuclear decommissioning trusts | 225,000,000 | 210,000,000 |
Net cash used in investing activities | (356,000,000) | (475,000,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments on debt (maturities greater than 90 days) and finance leases | (22,000,000) | (20,000,000) |
Payments on finance leases | (4,000,000) | |
Increase (decrease) in short-term debt, net | (53,000,000) | 87,000,000 |
Net cash (used in) provided by financing activities | (75,000,000) | 67,000,000 |
Increase (decrease) in cash, cash equivalents and restricted cash, including discontinued operations | 12,000,000 | (4,000,000) |
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 | 37,000,000 | 29,000,000 |
Cash, cash equivalents and restricted cash, including discontinued operations, March 31 | 49,000,000 | 25,000,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 86,000,000 | 39,000,000 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures | 100,000,000 | 97,000,000 |
Increase in finance lease obligations for investment in property, plant and equipment | 4,000,000 | 0 |
Southern California Gas Company [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 264,000,000 | 225,000,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 147,000,000 | 135,000,000 |
Deferred income taxes and investment tax credits | (65,000,000) | 47,000,000 |
Other | 5,000,000 | 21,000,000 |
Net change in other working capital components | 287,000,000 | 76,000,000 |
Insurance receivable for Aliso Canyon costs | (16,000,000) | (29,000,000) |
Changes in other noncurrent assets and liabilities, net | (246,000,000) | (56,000,000) |
Net cash provided by operating activities | 376,000,000 | 419,000,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (324,000,000) | (403,000,000) |
Other | 0 | 3,000,000 |
Net cash used in investing activities | (324,000,000) | (400,000,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments on finance leases | (1,000,000) | 0 |
Increase (decrease) in short-term debt, net | (66,000,000) | (16,000,000) |
Net cash (used in) provided by financing activities | (67,000,000) | (16,000,000) |
Increase (decrease) in cash, cash equivalents and restricted cash, including discontinued operations | (15,000,000) | 3,000,000 |
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 | 18,000,000 | 8,000,000 |
Cash, cash equivalents and restricted cash, including discontinued operations, March 31 | 3,000,000 | 11,000,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 26,000,000 | 18,000,000 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures | 163,000,000 | 159,000,000 |
Increase in finance lease obligations for investment in property, plant and equipment | $ 3,000,000 | $ 5,000,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Convertible Preferred Stock [Member] | |
Offering costs | $ 32 |
Common Stock [Member] | |
Offering costs | $ 24 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Preferred stock [Member] | Preferred stock [Member]Series A Preferred Stock [Member] | Common Stock [Member] | Retained earnings [Member] | Retained earnings [Member]Series A Preferred Stock [Member] | Retained earnings [Member]Series B Preferred Stock [Member] | Accumulated other comprehensive income (loss) [Member] | Shareholders' equity [Member] | Shareholders' equity [Member]Series A Preferred Stock [Member] | Shareholders' equity [Member]Series B Preferred Stock [Member] | Noncontrolling Interest [Member] | San Diego Gas and Electric Company [Member] | San Diego Gas and Electric Company [Member]Common Stock [Member] | San Diego Gas and Electric Company [Member]Retained earnings [Member] | San Diego Gas and Electric Company [Member]Accumulated other comprehensive income (loss) [Member] | San Diego Gas and Electric Company [Member]Shareholders' equity [Member] | San Diego Gas and Electric Company [Member]Noncontrolling Interest [Member] | Southern California Gas Company [Member] | Southern California Gas Company [Member]Preferred stock [Member] | Southern California Gas Company [Member]Common Stock [Member] | Southern California Gas Company [Member]Retained earnings [Member] | Southern California Gas Company [Member]Accumulated other comprehensive income (loss) [Member] | ||
Cumulative-effect adjustment from change in accounting principle | $ (1) | $ 2 | $ (3) | $ (1) | |||||||||||||||||||||||
Beginning Balance at Dec. 31, 2017 | 15,140 | $ 0 | $ 3,149 | 10,147 | (626) | 12,670 | $ 2,470 | $ 5,626 | $ 1,338 | $ 4,268 | $ (8) | $ 5,598 | $ 28 | $ 3,907 | $ 22 | $ 866 | $ 3,040 | $ (21) | |||||||||
Net income (loss) | 358 | 375 | 375 | (17) | 169 | 170 | 170 | (1) | 225 | 225 | |||||||||||||||||
Other comprehensive (loss) income | 99 | 84 | 84 | 15 | 4 | 4 | |||||||||||||||||||||
Share-based compensation expense | 15 | 15 | 15 | ||||||||||||||||||||||||
Preferred stock dividends declared | $ (28) | $ (28) | $ (28) | 0 | 0 | ||||||||||||||||||||||
Common stock dividends declared | (236) | (236) | (236) | ||||||||||||||||||||||||
Issuances of stock | 1,291 | 1,693 | $ 1,693 | 1,291 | 1,291 | 1,693 | |||||||||||||||||||||
Repurchases of common stock | (19) | (19) | (19) | ||||||||||||||||||||||||
Noncontrolling interests activities: Distributions | (7) | (7) | (1) | (1) | |||||||||||||||||||||||
Ending balance at Mar. 31, 2018 | 18,305 | 1,693 | 4,436 | 10,260 | (545) | 15,844 | 2,461 | 5,798 | 1,338 | 4,438 | (8) | 5,768 | 30 | 4,132 | 22 | 866 | 3,265 | (21) | |||||||||
Cumulative-effect adjustment from change in accounting principle | 15 | 57 | (42) | 15 | 0 | 2 | (2) | 0 | (2) | 2 | (4) | ||||||||||||||||
Beginning Balance at Dec. 31, 2018 | 19,248 | [1] | 2,258 | 5,540 | 10,104 | (764) | 17,138 | 2,110 | 6,115 | [1] | 1,338 | 4,687 | (10) | 6,015 | 100 | 4,258 | 22 | 866 | 3,390 | (20) | |||||||
Net income (loss) | 518 | 477 | 477 | 41 | 177 | 176 | 176 | 1 | 264 | 264 | |||||||||||||||||
Other comprehensive (loss) income | (11) | (11) | (11) | 1 | 1 | ||||||||||||||||||||||
Share-based compensation expense | 21 | 21 | 21 | ||||||||||||||||||||||||
Preferred stock dividends declared | $ (26) | $ (10) | $ (26) | $ (10) | $ (26) | $ (10) | 0 | 0 | |||||||||||||||||||
Common stock dividends declared | (265) | (265) | (265) | ||||||||||||||||||||||||
Issuances of stock | 24 | 24 | 24 | ||||||||||||||||||||||||
Repurchases of common stock | (14) | (14) | (14) | ||||||||||||||||||||||||
Noncontrolling interests activities: Distributions | (4) | (4) | |||||||||||||||||||||||||
Noncontrolling interests activities: Purchase | (26) | (3) | (3) | (23) | |||||||||||||||||||||||
Ending balance at Mar. 31, 2019 | $ 19,470 | $ 2,258 | $ 5,568 | $ 10,337 | $ (817) | $ 17,346 | $ 2,124 | $ 6,293 | $ 1,338 | $ 4,865 | $ (12) | $ 6,191 | $ 102 | $ 4,520 | $ 22 | $ 866 | $ 3,656 | $ (24) | |||||||||
[1] | Derived from audited financial statements. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Dividends declared per share of common stock (in dollars per share) | $ 0.97 | $ 0.90 |
Southern California Gas Company [Member] | ||
Dividends declared per share of preferred stock (in dollars per share) | 0.38 | 0.38 |
Series A Preferred Stock [Member] | ||
Dividends declared per share of preferred stock (in dollars per share) | 1.5 | $ 1.60 |
Series B Preferred Stock [Member] | ||
Dividends declared per share of preferred stock (in dollars per share) | $ 1.69 |
GENERAL INFORMATION AND OTHER F
GENERAL INFORMATION AND OTHER FINANCIAL DATA | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL INFORMATION AND OTHER FINANCIAL DATA | GENERAL INFORMATION AND OTHER FINANCIAL DATA PRINCIPLES OF CONSOLIDATION Sempra Energy Sempra Energy’s Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based Fortune 500 energy-services holding company, and its consolidated subsidiaries and VIEs. Sempra Global is the holding company for most of our subsidiaries that are not subject to California or Texas utility regulation. Sempra Energy’s businesses are managed within six separate reportable segments, which we discuss in Note 12. In the first quarter of 2019, our Sempra LNG & Midstream segment was renamed “Sempra LNG.” This segment name change had no impact on our historical position, results of operations, cash flow or segment level results previously reported. All references in these Notes to our reportable segments are not intended to refer to any legal entity with the same or similar name. SDG&E SDG&E’s Condensed Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E is the primary beneficiary, as we discuss below in “Variable Interest Entities.” SDG&E’s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. SoCalGas SoCalGas’ common stock is wholly owned by Pacific Enterprises, which is a wholly owned subsidiary of Sempra Energy. In this report, we refer to SDG&E and SoCalGas collectively as the California Utilities. BASIS OF PRESENTATION This is a combined report of Sempra Energy, SDG&E and SoCalGas. We provide separate information for SDG&E and SoCalGas as required. References in this report to “we,” “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 March 31, 2019 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, 2018 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2018 Consolidated Financial Statements in the Annual Report, which for Sempra Energy has been retrospectively adjusted for discontinued operations, as we discuss below. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the interim-period-reporting provisions of U.S. GAAP and the SEC. We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report and the impact of the adoption of new accounting standards on those policies in Note 2 below. We follow the same accounting policies for interim reporting purposes. You should read the information in this Quarterly Report in conjunction with the Annual Report. Discontinued Operations On January 25, 2019, our board of directors approved a plan to sell our South American businesses based on our strategic focus on North America. We determined that these businesses, which previously constituted the Sempra South American Utilities segment, and certain activities associated with these businesses, met the held-for-sale criteria. These businesses are presented as discontinued operations, as the planned sale represents a strategic shift that will have a major effect on our operations and financial results. Throughout this report, the financial information for all periods presented has been adjusted to reflect the presentation of these businesses as discontinued operations, which we discuss further in Note 5. Our discussions in the Notes below relate only to our continuing operations unless otherwise noted. Regulated Operations The California Utilities and Sempra Mexico’s natural gas distribution utility, Ecogas, prepare their financial statements in accordance with the provisions of U.S. GAAP governing rate-regulated operations. We discuss the effects of regulation and revenue recognition at our utilities in Notes 1 and 3 of the Notes to Consolidated Financial Statements in the Annual Report. Our Sempra Texas Utility segment is comprised of our equity method investment in Oncor Holdings, which owns 80.25 percent of Oncor, as we discuss in Notes 5 and 6. Oncor is a regulated electric transmission and distribution utility and prepares its financial statements in accordance with the provisions of U.S. GAAP governing rate-regulated operations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Condensed Consolidated Balance Sheets to the sum of such amounts reported on the Condensed Consolidated Statements of Cash Flows. We provide information about the nature of restricted cash in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Dollars in millions) March 31, December 31, 2019 2018 Sempra Energy Consolidated: Cash and cash equivalents $ 78 $ 102 Restricted cash, current 41 35 Restricted cash, noncurrent 21 21 Cash, cash equivalents and restricted cash in discontinued operations 67 88 Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows $ 207 $ 246 SDG&E: Cash and cash equivalents $ 10 $ 8 Restricted cash, current 21 11 Restricted cash, noncurrent 18 18 Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows $ 49 $ 37 The following table presents the components of inventories by segment. INVENTORY BALANCES (Dollars in millions) Natural gas LNG Materials and supplies Total March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 SDG&E $ — $ — $ — $ — $ 99 $ 102 $ 99 $ 102 SoCalGas 12 92 — — 46 42 58 134 Sempra Mexico — — 7 4 16 15 23 19 Sempra LNG 9 3 — — — — 9 3 Sempra Energy Consolidated $ 21 $ 95 $ 7 $ 4 $ 161 $ 159 $ 189 $ 258 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. The table below summarizes capitalized interest and AFUDC. CAPITALIZED FINANCING COSTS (Dollars in millions) Three months ended March 31, 2019 2018 Sempra Energy Consolidated $ 47 $ 49 SDG&E 17 24 SoCalGas 11 13 We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based on qualitative and quantitative analyses, which assess: ▪ the purpose and design of the VIE; ▪ the nature of the VIE’s risks and the risks we absorb; ▪ the power to direct activities that most significantly impact the economic performance of the VIE; and ▪ the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. We will continue to evaluate our VIEs for any changes that may impact our determination of the primary beneficiary. SDG&E SDG&E’s power procurement is subject to reliability requirements that may require SDG&E to enter into various PPAs that include variable interests. SDG&E evaluates the respective entities to determine if variable interests exist and, based on the qualitative and quantitative analyses described above, if SDG&E, and thereby Sempra Energy, is the primary beneficiary. 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 on our analysis, the ability to direct the dispatch of electricity may have the most significant impact on the economic performance of the entity owning the generating facility because of the associated exposure to the cost of natural gas, which fuels the plants, and the value of electricity produced. To the extent that SDG&E (1) is obligated to purchase and provide fuel to operate the facility, (2) has the power to direct the dispatch, and (3) purchases all of the output from the facility for a substantial portion of the facility’s useful life, SDG&E may be the primary beneficiary of the entity owning the generating facility. SDG&E determines if it is the primary beneficiary in these cases based on a qualitative approach in which we consider the operational characteristics of the facility, including its expected power generation output relative to its capacity to generate and the financial structure of the entity, among other factors. If we determine that SDG&E is the primary beneficiary, SDG&E and Sempra Energy consolidate the entity that owns the facility as a VIE. Otay Mesa VIE SDG&E has a tolling agreement to purchase power generated at OMEC, a 605 -MW generating facility. Under the terms of a related agreement, OMEC LLC can require SDG&E to purchase the power plant (referred to as the put option) on or before October 3, 2019 for $280 million , subject to adjustments, or upon earlier termination of the PPA. 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 $102 million at March 31, 2019 and $100 million at December 31, 2018 is included on the Condensed Consolidated Balance Sheets in Other Noncontrolling Interests for Sempra Energy and in Noncontrolling Interest for SDG&E. In October 2018, SDG&E and OMEC LLC signed a resource adequacy capacity agreement for a term that would commence at the expiration of the current tolling agreement in October 2019 and end in August 2024. The capacity agreement was approved by OMEC LLC’s lenders and the CPUC in December 2018 and February 2019, respectively. However, given certain pending requests for rehearing of the CPUC’s decisions related to OMEC, on March 28, 2019, OMEC LLC exercised the put option requiring SDG&E to purchase the power plant by October 3, 2019. The outcome of these rehearing requests could impact the effectiveness of the resource adequacy capacity agreement and whether the OMEC facility is purchased by SDG&E. OMEC LLC has a loan outstanding of $220 million at March 31, 2019 , which we describe in Note 7 of the Notes to Consolidated Financial Statements in the Annual Report. SDG&E is not a party to the loan agreement and does not have any additional implicit or explicit financial responsibility to OMEC LLC, nor is SDG&E required to assume OMEC LLC’s loan under the put option. 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 March 31, 2019 2018 Operating expenses Cost of electric fuel and purchased power $ (16 ) $ (16 ) Operation and maintenance 4 4 Depreciation and amortization 7 8 Total operating expenses (5 ) (4 ) Operating income 5 4 Interest expense (4 ) (5 ) Income (losses) before income taxes/Net income (loss) 1 (1 ) (Earnings) losses attributable to noncontrolling interest (1 ) 1 Earnings attributable to common shares $ — $ — SDG&E has determined that no contracts, other than the one relating to Otay Mesa VIE described above, resulted in SDG&E being the primary beneficiary of a VIE at March 31, 2019 . In addition to the tolling agreements described above, other variable interests involve various elements of fuel and power costs, and other components of cash flows expected to be paid to or received by our counterparties. In most of these cases, the expectation of variability is not substantial, and SDG&E generally does not have the power to direct activities 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 16 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 Texas Utility On March 9, 2018, we completed the acquisition of an indirect, 100 -percent interest in Oncor Holdings, a VIE that owns an 80.25 -percent interest in Oncor. Sempra Energy is not the primary beneficiary of the VIE because of the structural and operational ring-fencing and governance measures in place that prevent us from having the power to direct the significant activities of Oncor Holdings. As a result, we do not consolidate Oncor Holdings and instead account for our ownership interest as an equity method investment. See Note 6 for additional information about our equity method investment in Oncor Holdings and restrictions on our ability to influence its activities. Our current maximum exposure to loss from our interest in Oncor Holdings does not exceed the carrying value of our investment, which was $9,748 million at March 31, 2019 and $9,652 million at December 31, 2018 . Our maximum exposure will fluctuate over time, including as a result of our commitment to contribute an estimated $1,025 million in capital (excluding Sempra Energy’s share of approximately $40 million for a management agreement termination fee, as well as other customary transaction costs incurred by InfraREIT that would be borne by Oncor as part of the acquisition) to partially fund Oncor’s pending acquisition of InfraREIT, which we discuss in Note 5 . Sempra Renewables Certain of Sempra Renewables’ wind and solar power generation projects were held by limited liability companies whose members were Sempra Renewables and financial institutions. We sold the solar entities in December 2018 and the wind entities in April 2019. The financial institutions are noncontrolling tax equity investors to which earnings, tax attributes and cash flows were allocated in accordance with the respective limited liability company agreements. These entities were VIEs and Sempra Energy was 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 impacted the economic performance of these VIEs. As the primary beneficiary of these tax equity limited liability companies, we consolidated them. Sempra Energy’s Condensed Consolidated Balance Sheets include equity of $161 million at March 31, 2019 and $158 million at December 31, 2018 of Other Noncontrolling Interests associated with these entities. Sempra Energy’s Condensed Consolidated Statements of Operations include the following amounts associated with the tax equity limited liability companies, net of eliminations of transactions between Sempra Energy and these entities. AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS (Dollars in millions) Three months ended March 31, 2019 2018 REVENUES Energy-related businesses $ 6 $ 17 EXPENSES Operation and maintenance (2 ) (4 ) Depreciation and amortization (3 ) (11 ) Income before income taxes 1 2 Income tax benefit (expense) 1 (5 ) Net income (loss) 2 (3 ) (Earnings) losses attributable to noncontrolling interests (1) (3 ) 21 (Losses) earnings attributable to common shares $ (1 ) $ 18 (1) Net income or loss attributable to NCI 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 Cameron LNG JV is a VIE principally due to contractual provisions that transfer certain risks to customers. Sempra Energy is not the primary beneficiary of the VIE because we do not have the power to direct the most significant activities of Cameron LNG JV, and therefore we account for our investment in Cameron LNG JV under the equity method. The carrying value of our investment, including amounts recognized in AOCI related to interest-rate cash flow hedges at Cameron LNG JV, was $1,255 million at March 31, 2019 and $1,271 million at December 31, 2018 . Our current maximum exposure to loss, which fluctuates over time, includes the carrying value of our investment and the guarantees that we discuss in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. Other Variable Interest Entities Sempra Energy’s other businesses also enter into arrangements that could include variable interests. We evaluate these arrangements and applicable entities based on the qualitative and quantitative analyses described above. Certain of these entities are service or project companies that are VIEs because the total equity at risk is not sufficient for the entities to finance their activities without additional subordinated financial support. As the primary beneficiary of these companies, we consolidate them. The assets of these VIEs totaled approximately $502 million at March 31, 2019 and $286 million at December 31, 2018 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 March 31, 2019 2018 2019 2018 Service cost $ 27 $ 33 $ 4 $ 6 Interest cost 35 35 9 9 Expected return on assets (36 ) (42 ) (18 ) (18 ) Amortization of: Prior service cost 3 3 — — Actuarial loss (gain) 14 9 (2 ) (1 ) Settlement charges — 14 — — Net periodic benefit cost (credit) 43 52 (7 ) (4 ) Regulatory adjustment (36 ) (45 ) 7 4 Total expense recognized $ 7 $ 7 $ — $ — NET PERIODIC BENEFIT COST – SDG&E (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2019 2018 2019 2018 Service cost $ 8 $ 8 $ 1 $ 1 Interest cost 9 9 2 2 Expected return on assets (11 ) (13 ) (3 ) (3 ) Amortization of: Prior service cost 1 — 1 1 Actuarial loss (gain) 4 1 (1 ) (1 ) Settlement charges — 14 — — Net periodic benefit cost 11 19 — — Regulatory adjustment (11 ) (19 ) — — Total expense recognized $ — $ — $ — $ — NET PERIODIC BENEFIT COST – SOCALGAS (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2019 2018 2019 2018 Service cost $ 16 $ 22 $ 3 $ 4 Interest cost 23 23 7 7 Expected return on assets (24 ) (26 ) (14 ) (14 ) Amortization of: Prior service cost (credit) 2 2 (1 ) (1 ) Actuarial loss (gain) 9 6 (2 ) — Net periodic benefit cost (credit) 26 27 (7 ) (4 ) Regulatory adjustment (25 ) (26 ) 7 4 Total expense recognized $ 1 $ 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 2019 . BENEFIT PLAN CONTRIBUTIONS (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Contributions through March 31, 2019: Pension plans $ 9 $ — $ 1 Other postretirement benefit plans 2 — — Total expected contributions in 2019: Pension plans $ 234 $ 40 $ 118 Other postretirement benefit plans 9 — 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 $413 million and $416 million at March 31, 2019 and December 31, 2018 The following table provides EPS computations for the three months ended March 31, 2019 and 2018 . Basic EPS is calculated by dividing earnings attributable to common shares (from both continuing and discontinued operations) by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. EARNINGS PER COMMON SHARE COMPUTATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended March 31, 2019 2018 Numerator for continuing operations: Income from continuing operations, net of income tax $ 560 $ 330 (Earnings) losses attributable to noncontrolling interests (32 ) 24 Mandatory convertible preferred stock dividends (36 ) (28 ) Earnings from continuing operations attributable to common shares $ 492 $ 326 Numerator for discontinued operations: (Loss) income from discontinued operations, net of income tax $ (42 ) $ 28 Earnings attributable to noncontrolling interests (9 ) (7 ) (Losses) earnings from discontinued operations attributable to common shares $ (51 ) $ 21 Numerator for earnings: Earnings attributable to common shares $ 441 $ 347 Denominator: Weighted-average common shares outstanding for basic EPS (1) 274,674 257,932 Dilutive effect of stock options and RSUs (2) 969 933 Dilutive effect of common shares sold forward 1,585 625 Weighted-average common shares outstanding for diluted EPS 277,228 259,490 Basic EPS: Earnings from continuing operations attributable to common shares $ 1.79 $ 1.26 (Losses) earnings from discontinued operations attributable to common shares $ (0.19 ) $ 0.08 Earnings attributable to common shares $ 1.60 $ 1.34 Diluted EPS: Earnings from continuing operations attributable to common shares $ 1.78 $ 1.25 (Losses) earnings from discontinued operations attributable to common shares $ (0.19 ) $ 0.08 Earnings attributable to common shares $ 1.59 $ 1.33 (1) Includes 613 and 628 average fully vested RSUs held in our Deferred Compensation Plan for the three months ended March 31, 2019 and 2018 , 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. (2) Due to market fluctuations of both Sempra Energy common stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 10 of the Notes to Consolidated Financial Statements in the Annual Report, dilutive RSUs may vary widely from period-to-period. The potentially dilutive impact from stock options 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 March 31, 2019 and 2018 excludes 316,385 and 80,449 potentially dilutive shares, respectively, because to include them would be antidilutive for the period. However, these shares could potentially dilute basic EPS in the future. The potentially dilutive impact from the forward sale of our common stock pursuant to the forward sale agreements that we entered into in 2018 is reflected in our diluted EPS calculation using the treasury stock method. We anticipate there will be a dilutive effect on our EPS when the average market price of shares of our common stock is above the applicable adjusted forward sale price, subject to increase or decrease based on the overnight bank funding rate, less a spread, and subject to decrease by amounts related to expected dividends on shares of our common stock during the term of the forward sale agreements. Additionally, if we decide to physically settle or net share settle the forward sale agreements, delivery of our shares to the forward purchasers on any such physical settlement or net share settlement of the forward sale agreements would result in dilution to our EPS. The potentially dilutive impact from mandatory convertible preferred stock that we issued in 2018 is calculated under the if-converted method. The computation of diluted EPS for the three months ended March 31, 2019 and 2018 excludes 18,601,085 and 15,592,572 potentially dilutive shares, respectively, because to include them would be antidilutive for the period. 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 261,075 non-qualified stock options that are exercisable over a three-year period, 384,373 performance-based RSUs and 214,502 service-based RSUs in the three months ended March 31, 2019 , primarily in January. The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to NCI. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT (1) (Dollars in millions) Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Total accumulated other comprehensive income (loss) Three months ended March 31, 2019 and 2018 Sempra Energy Consolidated (2) : Balance as of December 31, 2018 $ (564 ) $ (82 ) $ (118 ) $ (764 ) Cumulative-effect adjustment from change in accounting principle — (25 ) (17 ) (42 ) OCI before reclassifications 32 (45 ) 1 (12 ) Amounts reclassified from AOCI — (1 ) 2 1 Net OCI 32 (46 ) 3 (11 ) Balance as of March 31, 2019 $ (532 ) $ (153 ) $ (132 ) $ (817 ) Balance as of December 31, 2017 $ (420 ) $ (122 ) $ (84 ) $ (626 ) Cumulative-effect adjustment from change in accounting principle — (3 ) — (3 ) OCI before reclassifications 24 66 — 90 Amounts reclassified from AOCI — (8 ) 2 (6 ) Net OCI 24 58 2 84 Balance as of March 31, 2018 $ (396 ) $ (67 ) $ (82 ) $ (545 ) SDG&E: Balance as of December 31, 2018 $ (10 ) $ (10 ) Cumulative-effect adjustment from change in accounting principle (2 ) (2 ) Balance as of March 31, 2019 $ (12 ) $ (12 ) Balance as of December 31, 2017 and March 31, 2018 $ (8 ) $ (8 ) SoCalGas: Balance as of December 31, 2018 $ (12 ) $ (8 ) $ (20 ) Cumulative-effect adjustment from change in accounting principle (2 ) (2 ) (4 ) Balance as of March 31, 2019 $ (14 ) $ (10 ) $ (24 ) Balance as of December 31, 2017 and March 31, 2018 $ (13 ) $ (8 ) $ (21 ) (1) All amounts are net of income tax, if subject to tax, and exclude NCI. (2) Includes discontinued operations. 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 March 31, 2019 2018 Sempra Energy Consolidated: Financial instruments: Interest rate and foreign exchange instruments (1) $ 1 $ (2 ) Interest Expense (3 ) (18 ) Other Income, Net Interest rate and foreign exchange instruments 1 4 Equity Earnings (Losses) Foreign exchange instruments 1 — Revenues: Energy-Related Businesses Total before income tax — (16 ) — 3 Income Tax Expense Net of income tax — (13 ) (1 ) 5 (Earnings) Losses Attributable to Noncontrolling Interests $ (1 ) $ (8 ) Pension and other postretirement benefits: Amortization of actuarial loss (2) $ 2 $ 3 Other Income, Net Amortization of prior service cost (2) 1 — Other Income, Net Total before income tax 3 3 (1 ) (1 ) Income Tax Expense Net of income tax $ 2 $ 2 Total reclassifications for the period, net of tax $ 1 $ (6 ) SDG&E: Financial instruments: Interest rate instruments (1) $ 1 $ 3 Interest Expense (1 ) (3 ) (Earnings) Losses Attributable to Noncontrolling Interest Total reclassifications for the period, net of tax $ — $ — (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. (2) Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above). For the three months ended March 31, 2019 and 2018, reclassifications out of AOCI to net income were negligible for SoCalGas. Sempra Energy Mandatory Convertible Preferred Stock Offerings In January 2018, we issued 17,250,000 shares of our series A preferred stock in a registered public offering resulting in net proceeds of approximately $1.69 billion . In July 2018, we issued 5,750,000 shares of our series B preferred stock in a registered public offering resulting in net proceeds of approximately $565 million . Each share of series A preferred stock and series B preferred stock has a liquidation value of $100.00 . We discuss the preferred stock offerings in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra Energy Common Stock Offerings In January 2018, we completed the offering of 26,869,158 shares of our common stock, no par value, in a registered public offering at $107.00 per share (approximately $105.07 per share after deducting underwriting discounts), pursuant to forward sale agreements. We received net proceeds totaling approximately $1.27 billion from the sale of shares in the January 2018 offering (including $367 million to cover overallotments) and from the settlement of forward sales in the first quarter of 2018 under the forward sale agreements. We received net proceeds of approximately $800 million from the settlement of forward sales in the second quarter of 2018 under the forward sale agreements. In July 2018, we completed the offering of 11,212,500 shares of our common stock, no par value, in a registered public offering at $113.75 per share (approximately $111.87 per share after deducting underwriting discounts), pursuant to forward sale agreements. We received net proceeds of approximately $164 million from the sale of shares in the July 2018 offering to cover overallotments. We discuss the common stock offerings in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report. As of May 7, 2019, a total of 16,906,185 shares of Sempra Energy common stock remain subject to future settlement under these forward sale agreements, which may be settled on one or more dates specified by us occurring no later than December 15, 2019, which is the final settlement date under the agreements. Although we expect to settle the forward sale agreements entirely by the physical delivery of shares of our common stock in exchange for cash proceeds, we may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of our obligations under the forward sale agreements. The forward sale agreements are also subject to acceleration by the forward purchasers upon the occurrence of certain events. SoCalGas Preferred Stock The preferred stock at SoCalGas is presented at Sempra Energy as a noncontrolling interest. Sempra Energy records charges against income related to NCI for preferred stock dividends declared by SoCalGas. We provide add |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS We describe below recent accounting pronouncements that have had or may have a significant effect on our financial condition, results of operations, cash flows or disclosures. ASU 2016-02, “Leases,” ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842,” ASU 2018-10, “Codification Improvements to Topic 842, Leases,” ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” ASU 2018-20, “Narrow-Scope Improvements for Lessors” and ASU 2019-01, “Leases (Topic 842): Codification Improvements” (collectively referred to as the “lease standard”): In 2016, the FASB began issuing the first in a series of ASUs intended to increase transparency and comparability among organizations with leasing activities. The most significant provision of the lease standard is the requirement that lessees recognize operating lease ROU assets and lease liabilities on the balance sheet. We adopted the lease standard on January 1, 2019, using the optional transition method to apply the new guidance prospectively as of January 1, 2019, rather than as of the earliest period presented. We elected the package of practical expedients that permits us to not reassess (a) whether a contract is or contains a lease, (b) lease classification or (c) determination of initial direct costs, which allows us to carry forward accounting conclusions under previous U.S. GAAP on contracts that commenced prior to adoption of the lease standard. We also elected the land easement practical expedient, which allows us to continue to account for pre-existing land easements under our accounting policy that existed before adoption of the lease standard. We did not elect the practical expedient to use hindsight in making judgments when determining the lease term. The adoption of the lease standard did not change our previously reported financial statements. However, in accordance with the lease standard, on a prospective basis, a significant portion of finance lease costs for PPAs that have historically been presented in Cost of Electric Fuel and Purchased Power are now presented in Depreciation and Amortization Expense and Interest Expense on Sempra Energy’s and SDG&E’s statements of operations. Additionally, the adoption of the lease standard had a material impact on our balance sheets at January 1, 2019 due to the initial recognition of ROU assets and lease liabilities for operating leases. Our finance leases were already included on our balance sheets prior to adoption of the lease standard, consistent with previous U.S. GAAP for capital leases. The following table shows the initial (decreases) increases on our balance sheets at January 1, 2019 from adoption of the lease standard. IMPACT FROM ADOPTION OF THE LEASE STANDARD (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Assets held for sale $ 13 $ — $ — Sundry (71 ) — — Property, plant and equipment, net (147 ) — — Right-of-use assets – operating leases 603 130 116 Deferred income tax assets (3 ) — — Other current liabilities 80 20 23 Long-term debt (138 ) — — Deferred credits and other 436 110 93 Retained earnings 17 — — As a result of the adoption of the lease standard, we derecognized our corporate headquarters building lease in accordance with the transition provisions for build-to-suit arrangements. On a prospective basis, we will account for the corporate headquarters building lease as an operating lease. The initial impact is included in the above table. We include additional disclosures about our leases in Note 11. 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, including interim periods therein, with early adoption permitted for fiscal years beginning after December 15, 2018. The amendments are to be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings at the beginning of the first reporting period in the year of adoption. We are currently evaluating the impact of the standard on our ongoing financial reporting and plan to adopt the standard on January 1, 2020. 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 plan to adopt the standard on January 1, 2020. ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”: ASU 2018-02 contains amendments that allow a reclassification from AOCI to retained earnings for stranded tax effects resulting from the TCJA. Under ASU 2018-02, an entity is required to provide certain disclosures regarding stranded tax effects, including its accounting policy related to releasing the income tax effects from AOCI. The amendments in this update can be applied either as of the beginning of the period of adoption or retrospectively as of the date of enactment of the TCJA and to each period in which the effect of the TCJA is recognized. We adopted ASU 2018-02 on January 1, 2019 and reclassified the income tax effects of the TCJA from AOCI to retained earnings. The impact from adoption of ASU 2018-02 on January 1, 2019 was as follows: ▪ Sempra Energy: increase of $40 million to beginning Retained Earnings, $2 million to noncurrent Regulatory Liabilities and $42 million to Accumulated Other Comprehensive Loss; ▪ SDG&E: increase of $2 million to beginning Retained Earnings and Accumulated Other Comprehensive Loss; and ▪ SoCalGas: increase of $2 million to beginning Retained Earnings, $2 million to noncurrent Regulatory Liabilities and $4 million |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES We discuss revenue recognition for revenues from contracts with customers and from sources other than contracts with customers in Note 3 of the Notes to Consolidated Financial Statements in the Annual Report. The following table disaggregates our revenues from contracts with customers by major service line and market and provides a reconciliation to total revenues by segment. The majority of our revenue is recognized over time. DISAGGREGATED REVENUES (Dollars in millions) Three months ended March 31, 2019 SDG&E SoCalGas Sempra Mexico Sempra Renewables Sempra LNG Consolidating adjustments Sempra Energy Consolidated By major service line: Utilities $ 1,236 $ 1,528 $ 27 $ — $ — $ (18 ) $ 2,773 Midstream — — 171 — 67 (59 ) 179 Renewables — — 20 4 — — 24 Other — — 66 — 1 — 67 Revenues from contracts with customers $ 1,236 $ 1,528 $ 284 $ 4 $ 68 $ (77 ) $ 3,043 By market: Electric $ 997 $ — $ 86 $ 4 $ 1 $ (1 ) $ 1,087 Gas 239 1,528 198 — 67 (76 ) 1,956 Revenues from contracts with customers $ 1,236 $ 1,528 $ 284 $ 4 $ 68 $ (77 ) $ 3,043 Revenues from contracts with customers $ 1,236 $ 1,528 $ 284 $ 4 $ 68 $ (77 ) $ 3,043 Utilities regulatory revenues (91 ) (167 ) — — — — (258 ) Other revenues — — 99 3 73 (62 ) 113 Total revenues $ 1,145 $ 1,361 $ 383 $ 7 $ 141 $ (139 ) $ 2,898 Three months ended March 31, 2018 By major service line: Utilities $ 1,131 $ 1,081 $ 28 $ — $ — $ (19 ) $ 2,221 Midstream — — 143 — 54 (21 ) 176 Renewables — — 22 11 1 (1 ) 33 Other — — 41 — 2 (2 ) 41 Revenues from contracts with customers $ 1,131 $ 1,081 $ 234 $ 11 $ 57 $ (43 ) $ 2,471 By market: Electric $ 963 $ — $ 62 $ 11 $ 2 $ (4 ) $ 1,034 Gas 168 1,081 172 — 55 (39 ) 1,437 Revenues from contracts with customers $ 1,131 $ 1,081 $ 234 $ 11 $ 57 $ (43 ) $ 2,471 Revenues from contracts with customers $ 1,131 $ 1,081 $ 234 $ 11 $ 57 $ (43 ) $ 2,471 Utilities regulatory revenues (76 ) 45 — — — — (31 ) Other revenues — — 74 14 47 (39 ) 96 Total revenues $ 1,055 $ 1,126 $ 308 $ 25 $ 104 $ (82 ) $ 2,536 Remaining Performance Obligations For contracts greater than one year, at March 31, 2019 , we expect to recognize revenue related to the fixed fee component of the consideration as shown below. SoCalGas did not have any such remaining performance obligations at March 31, 2019 . REMAINING PERFORMANCE OBLIGATIONS (1) (Dollars in millions) Sempra Energy Consolidated SDG&E 2019 (excluding first three months of 2019) $ 384 $ 2 2020 512 3 2021 513 3 2022 515 3 2023 509 3 Thereafter 2,784 52 Total revenues to be recognized $ 5,217 $ 66 (1) Excludes intercompany transactions. Contract Balances from Revenues from Contracts with Customers Activities within Sempra Energy’s contract liabilities are presented below. There were no contract liabilities at SDG&E or SoCalGas for the three months ended March 31 , 2019 and 2018. CONTRACT LIABILITIES (Dollars in millions) Balance at January 1, 2019 $ (70 ) Revenue from performance obligations satisfied during reporting period 1 Payments received in advance (2 ) Balance at March 31, 2019 (1) $ (71 ) Balance at January 1, 2018 $ — Adoption of ASC 606 adjustment (61 ) Revenue from performance obligations satisfied during reporting period 5 Payments received in advance (7 ) Balance at March 31, 2018 $ (63 ) (1) I ncludes a negligible amount in Other Current Liabilities a nd $71 million in Deferred Credits and Other on the Sempra Energy Condensed Consolidated Balance Sheet. Receivables from Revenues from Contracts with Customers The table below shows receivable balances associated with revenues from contracts with customers on our Condensed Consolidated Balance Sheets. RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS (Dollars in millions) March 31, 2019 December 31, 2018 Sempra Energy Consolidated: Accounts receivable – trade, net $ 1,145 $ 1,106 Accounts receivable – other, net 14 11 Due from unconsolidated affiliates – current (1) 6 4 Assets held for sale 1 6 Total $ 1,166 $ 1,127 SDG&E: Accounts receivable – trade, net $ 390 $ 368 Accounts receivable – other, net 12 6 Due from unconsolidated affiliates – current (1) 3 3 Total $ 405 $ 377 SoCalGas: Accounts receivable – trade, net $ 674 $ 634 Accounts receivable – other, net 2 5 Total $ 676 $ 639 (1) A |
REGULATORY MATTERS
REGULATORY MATTERS | 3 Months Ended |
Mar. 31, 2019 | |
Regulated Operations [Abstract] | |
Regulatory Matters | REGULATORY MATTERS We discuss regulatory matters in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and information about new regulatory matters below. REGULATORY ASSETS AND LIABILITIES We show the details of regulatory assets and liabilities in the following table. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) March 31, December 31, SDG&E: Fixed-price contracts and other derivatives $ (144 ) $ (150 ) Deferred income taxes refundable in rates (171 ) (236 ) Pension and other postretirement benefit plan obligations 190 186 Removal obligations (1,946 ) (1,848 ) Unamortized loss on reacquired debt 6 7 Environmental costs 27 28 Sunrise Powerlink fire mitigation 121 120 Regulatory balancing accounts (1) Commodity – electric 60 (8 ) Gas transportation 13 45 Safety and reliability 77 70 Public purpose programs (80 ) (62 ) Other balancing accounts 67 145 Other regulatory liabilities, net (2) (199 ) (177 ) Total SDG&E (1,979 ) (1,880 ) SoCalGas: Pension and other postretirement benefit plan obligations 479 470 Employee benefit costs 49 49 Removal obligations (804 ) (833 ) Deferred income taxes refundable in rates (248 ) (336 ) Unamortized loss on reacquired debt 6 7 Environmental costs 32 28 Workers’ compensation 9 9 Regulatory balancing accounts (1) Commodity – gas, including transportation 16 196 Safety and reliability 348 332 Public purpose programs (289 ) (325 ) Other balancing accounts (143 ) (68 ) Other regulatory liabilities, net (2) (160 ) (130 ) Total SoCalGas (705 ) (601 ) Sempra Mexico: Deferred income taxes recoverable in rates 81 81 Other regulatory assets 9 6 Total Sempra Energy Consolidated $ (2,594 ) $ (2,394 ) (1) At March 31, 2019 and December 31, 2018 , the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $84 million and $78 million , respectively, and for SoCalGas was $405 million and $185 million , respectively. (2) Includes regulatory assets earning a rate of return. CALIFORNIA UTILITIES 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. 2019 General Rate Case On October 6, 2017, SDG&E and SoCalGas filed their 2019 GRC applications requesting CPUC approval of test year revenue requirements for 2019 and attrition year adjustments for 2020 through 2022. SDG&E and SoCalGas are seeking revenue requirements for 2019 of $2.203 billion and $2.937 billion , respectively, which is an increase of $221 million and $481 million over their respective 2018 revenue requirements (the 2019 proposed and 2018 actual revenue requirements reflect the impact of various updates made during the course of the proceeding). The California Utilities are proposing post-test year revenue requirement annual attrition percentages that are estimated to result in annual increases of approximately 5 percent to 7 percent at SDG&E and approximately 6 percent to 8 percent at SoCalGas. The original GRC applications filed in October 2017 did not reflect the impact of the TCJA, which we discuss in “2016 General Rate Case” below and in Note 8 of the Notes to Consolidated Financial Statements in the Annual Report. In April 2018, SDG&E and SoCalGas updated their applications to reflect the impact of the TCJA and filed a joint proposal to address the impacts. The TCJA impact to SDG&E is a reduction of approximately $58 million to its 2019 test year revenue requirement; however, SDG&E’s 2019 requested revenue requirement is unchanged as we evaluate potentially higher costs associated with mitigating wildfire risks. The TCJA impact to SoCalGas’ 2019 requested revenue requirement is a reduction of approximately $58 million , which is reflected in its updated request. During the course of the proceeding, Cal PA recommended 2019 revenue requirements of $1.918 billion and $2.695 billion for SDG&E and SoCalGas, respectively, which is a net decrease of $64 million for SDG&E and a net increase of $239 million for SoCalGas compared to the 2018 revenue requirements. Cal PA proposes a three-year annual attrition percentage of 4 percent for SDG&E and a range of 4 percent to 5 percent for SoCalGas. Cal PA recommends addressing SDG&E’s potential ownership of OMEC in a separate proceeding. As a result, Cal PA’s proposed 2019 revenue requirement does not include the estimated $ 68 million included in SDG&E’s GRC application associated with owning and operating the generating facility. As we discuss in Note 1, on March 28, 2019, OMEC LLC exercised the put option requiring SDG&E to purchase the power plant by October 3, 2019, which is subject to the results of rehearing requests. TURN and other intervenors oppose various components of our revenue requests in the 2019 GRC applications. The results of the rate case may materially and adversely differ from what is contained in the GRC applications. We expect a preliminary decision from the CPUC in mid-2019. 2016 General Rate Case As we discuss in Notes 4 and 8 of the Notes to Consolidated Financial Statements in the Annual Report, the 2016 GRC FD required SDG&E and SoCalGas to each establish a two-way income tax expense memorandum account to track certain revenue variances resulting from certain differences between the income tax expense forecasted in the GRC and the income tax expense incurred from 2016 through 2018. At March 31, 2019 , the recorded regulatory liability associated with these tracked amounts totaled $90 million and $95 million for SDG&E and SoCalGas, respectively. The recorded liability is primarily related to lower income tax expense incurred than was forecasted in the GRC relating to tax repairs deductions, self-developed software deductions and certain book-over-tax depreciation. The tracking accounts will remain open until the CPUC decides to close the accounts, which we expect will be reviewed in the 2019 GRC proceedings. The 2016 GRC FD revenue requirement was authorized using a federal income tax rate of 35 percent. As a result of the TCJA, the federal income tax rate of 21 percent became effective January 1, 2018. Since SDG&E and SoCalGas continue to collect authorized revenues based on a 35 percent tax rate, SDG&E and SoCalGas are recording revenue deferrals, aligned with authorized seasonality factors, that reflect the estimated reduction in the revenue requirement. As of March 31, 2019 , SDG&E and SoCalGas recorded regulatory liabilities of $95 million and $91 million , respectively, in anticipation of amounts that will benefit customers in future rates. SDG&E also recorded a $85 million regulatory liability at March 31, 2019 , relating to its FERC jurisdictional rates, in anticipation of amounts that will benefit customers in future rates for the decrease in the federal income tax rate. CPUC Cost of Capital In April 2019, SDG&E and SoCalGas filed separate applications with the CPUC to update their cost of capital effective January 1, 2020. SDG&E proposed to adjust its authorized capital structure by increasing the amount of its common equity from 52 percent to 56 percent . SDG&E also proposed to increase its authorized ROE from 10.2 percent to 14.3 percent , including a premium for wildfire risk of 3.4 percent , and to increase its authorized return on rate base from 7.55 percent to 10.03 percent . SoCalGas proposed to adjust its authorized capital structure by increasing the amount of its common equity from 52 percent to 56 percent . SoCalGas also proposed to increase its authorized ROE from 10.05 percent to 10.7 percent and to increase its authorized return on rate base from 7.34 percent to 7.85 percent . SOCALGAS Billing Practices OII In May 2017, the CPUC issued an OII to determine whether SoCalGas violated any provisions of the California Public Utilities Code, General Orders, CPUC decisions, or other requirements pertaining to billing practices from 2014 through 2016. The CPUC examined the timeliness of monthly bills, extending the billing period for customers, and issuing estimated bills, including an examination of SoCalGas’ gas tariff rules. In January 2019, the CPUC ordered SoCalGas to pay $8 million in penalties, including $3 million payable to California’s general fund and $5 million to be credited to customers that received delayed bills (greater than 45 days ) in the form of a $100 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 15 of the Notes to Consolidated Financial Statements in the Annual Report. NUCLEAR DECOMMISSIONING AND FUNDING As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison began the decommissioning phase of the plant. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work for Unit 1 will be completed once Units 2 and 3 are dismantled and the spent fuel is removed from the site . The majority of the dismantlement work is expected to take 10 years . The spent fuel is currently being stored on-site, until the DOE identifies a spent fuel storage facility and puts in place a program for the fuel’s disposal, as we discuss below. SDG&E is responsible for approximately 20 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 noncurrent Regulatory Liabilities. Except for the use of funds for the planning of decommissioning activities or NDT administrative costs, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs for Units 2 and 3. SDG&E has received authorization from the CPUC to access NDT funds of up to $455 million for 2013 through 2019 (2019 forecasted) SONGS decommissioning costs. This includes up to $93 million authorized by the CPUC in January 2019 to be withdrawn from the NDT for forecasted 2019 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 trust fund. The proposed regulations state that costs related to the construction and maintenance of independent spent fuel management installations are included in the definition of “nuclear decommissioning costs.” The proposed regulations will be effective prospectively once they are finalized; 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 awaiting the adoption of, or additional refinement to, the proposed regulations before determining whether the proposed regulations will allow SDG&E to access the NDT funds for reimbursement or payment of the spent fuel management costs incurred in 2017 and subsequent years. Further clarification of the proposed regulations could enable SDG&E to access the NDT to recover spent fuel management costs before Edison reaches final settlement with the DOE regarding the DOE’s reimbursement of these costs. Historically, the DOE’s reimbursements of spent fuel storage costs have not resulted in timely or complete recovery of these costs. We discuss the DOE’s responsibility for spent nuclear fuel below. The IRS held public hearings on the proposed regulations in October 2017. It is unclear when clarification of the proposed regulations might be provided or when the proposed regulations will be finalized. The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 9 . NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At March 31, 2019: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 48 $ — $ — $ 48 Municipal bonds (2) 271 8 — 279 Other securities (3) 236 3 (1 ) 238 Total debt securities 555 11 (1 ) 565 Equity securities 166 299 (6 ) 459 Cash and cash equivalents 13 — — 13 Total $ 734 $ 310 $ (7 ) $ 1,037 At December 31, 2018: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 52 $ 1 $ — $ 53 Municipal bonds 266 4 (1 ) 269 Other securities 238 1 (5 ) 234 Total debt securities 556 6 (6 ) 556 Equity securities 168 253 (10 ) 411 Cash and cash equivalents 7 — — 7 Total $ 731 $ 259 $ (16 ) $ 974 (1) Maturity dates are 2019-2049. (2) Maturity dates are 2019-2056. (3) Maturity dates are 2019-2064. The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales. SALES OF SECURITIES IN THE NDT (Dollars in millions) Three months ended March 31, 2019 2018 Proceeds from sales $ 225 $ 210 Gross realized gains 5 4 Gross realized losses (2 ) (3 ) Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. ASSET RETIREMENT OBLIGATION AND SPENT NUCLEAR FUEL SDG&E’s ARO related to decommissioning costs for the SONGS units was $620 million at March 31, 2019. That amount includes the cost to decommission Units 2 and 3, and the remaining cost to complete the decommissioning of Unit 1, which is substantially complete. The ARO for all three units is based on a cost study prepared in 2017 that is pending CPUC approval. The ARO for Units 2 and 3 reflects the acceleration of the start of decommissioning of these units as a result of the early closure of the plant. SDG&E’s share of total decommissioning costs in 2018 dollars is approximately $810 million . U.S. DEPARTMENT OF ENERGY NUCLEAR FUEL DISPOSAL Spent nuclear fuel from SONGS is currently stored on-site in an ISFSI licensed by the Nuclear Regulatory Commission or temporarily in spent fuel pools. In October 2015, the California Coastal Commission approved Edison’s application for the proposed expansion of the ISFSI at SONGS. The ISFSI expansion began construction in 2016 and the transfer of the spent nuclear fuel from Units 2 and 3 to the ISFSI began in 2018. Edison suspended this transfer on August 3, 2018 due to an incident that occurred when a spent fuel canister was getting loaded into the ISFSI. The incident did not result in any harm to the public or workers and the canister was subsequently safely loaded into the IFSFI. Edison has not resumed spent fuel transfer operations at SONGS, but has publicly stated that it will resume operations once it is satisfied all corrective actions are in place and proven effective and the NRC has completed its on-site inspection activities. The ISFSI will operate until 2049, when it is assumed that the DOE will have taken custody of all the SONGS spent fuel. The ISFSI would then be decommissioned, and the site restored to its original environmental state. Until then, SONGS owners are responsible for interim storage of spent nuclear fuel at SONGS. The Nuclear Waste Policy Act of 1982 made the DOE responsible for accepting, transporting, and disposing of spent nuclear fuel. However, it is uncertain when the DOE will begin accepting spent nuclear fuel from SONGS. This delay will lead to increased costs for spent fuel storage. SDG&E will continue to support Edison in its pursuit of claims on behalf of the SONGS co-owners against the DOE for its failure to timely accept the spent nuclear fuel. However, it is unclear whether Edison will enter into a new settlement with the DOE or pursue litigation claims for spent fuel management costs incurred on or after January 1, 2017. NUCLEAR INSURANCE SDG&E and the other owners of SONGS have insurance to cover claims from nuclear liability incidents arising at SONGS. Currently, this insurance provides $450 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides an additional $110 million of coverage. If a nuclear liability loss occurs at SONGS and exceeds the $450 million insurance limit, this additional coverage would be available to provide a total of $560 million in coverage limits per incident. The SONGS owners, including SDG&E, also maintain nuclear property damage insurance at $1.5 billion , with a $500 million property damage sublimit on the ISFSI, which exceeds the minimum federal requirements of $1.06 billion . This insurance coverage is provided through NEIL. The NEIL policies have specific exclusions and limitations that can result in reduced or eliminated coverage. Insured members as a group are subject to retrospective premium assessments to cover losses sustained by NEIL under all issued policies. SDG&E could be assessed up to $10.4 million of retrospective premiums based on overall member claims. The nuclear property insurance program includes an industry aggregate loss limit for non-certified acts of terrorism (as defined by the Terrorism Risk Insurance Act) of $3.24 billion |
ACQUISITIONS, DIVESTITURES AND
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS | ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS We consolidate assets acquired and liabilities assumed as of the purchase date and include earnings from acquisitions in consolidated earnings after the purchase date. ACQUISITIONS Sempra Texas Utility On March 9, 2018, Sempra Energy completed the acquisition of an indirect, 100 -percent interest in Oncor Holdings, which owned 80.03 percent of Oncor, and other EFH assets and liabilities unrelated to Oncor, pursuant to the Merger Agreement with EFH. Under the Merger Agreement, we paid Merger Consideration of $9.45 billion in cash and an additional $31 million representing an adjustment for dividends and payments pursuant to a tax sharing agreement with Oncor and Oncor Holdings. Also on March 9, 2018, in a separate transaction, Sempra Energy, through its interest in Oncor Holdings, acquired an additional 0.22 percent of the outstanding membership interests in Oncor from OMI for approximately $26 million in cash, bringing Sempra Energy’s indirect ownership in Oncor to 80.25 percent . TTI, an investment vehicle indirectly owned by third parties unaffiliated with Oncor Holdings or Sempra Energy, continues to own 19.75 percent of Oncor’s outstanding membership interests. We discuss this acquisition, including the purchase price allocation, in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra South American Utilities Compañía Transmisora del Norte Grande S.A. On December 18, 2018, Chilquinta Energía acquired a 100 -percent interest in Compañía Transmisora del Norte Grande S.A. through a sales and purchase agreement with AES Gener S.A. and its subsidiary Sociedad Eléctrica Angamos S.A. We completed the acquisition for a purchase price of $226 million and paid $208 million (net of $18 million cash acquired) with available cash on hand at Sempra South American Utilities. We accounted for this business combination using the acquisition method of accounting. We allocated the $208 million in cash paid ( $226 million purchase price less $18 million of cash acquired) to the identifiable assets acquired and liabilities assumed based on their respective fair values, with the excess recognized as goodwill, which is included in assets held for sale in discontinued operations. There were no measurement period adjustments related to this acquisition during the three months ended March 31, 2019. At March 31, 2019, the purchase price allocation was preliminary and subject to completion. Adjustments to the fair value estimates may occur as the process conducted for various valuations and assessments is finalized, primarily related to deferred income taxes. We discuss this acquisition, including the purchase price allocation, in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. PENDING ACQUISITIONS Sempra Texas Utility On October 18, 2018, Oncor entered into the InfraREIT Merger Agreement, whereby Oncor has agreed to acquire 100 percent of the issued and outstanding shares of InfraREIT and 100 percent of the limited partnership units of its subsidiary, InfraREIT Partners, for approximately $1,275 million , or $21 per share and unit, plus approximately $40 million for a management agreement termination fee, as well as other customary transaction costs incurred by InfraREIT that would be borne by Oncor as part of the acquisition. In addition, the transaction includes InfraREIT’s outstanding debt, which as of March 31, 2019 was approximately $946 million . Consummation of the InfraREIT Merger Agreement is subject to the satisfaction of certain closing conditions, including the substantially concurrent consummation of the transactions contemplated by the Asset Exchange Agreement and Securities Purchase Agreement, discussed below. On October 18, 2018, Oncor entered into the Asset Exchange Agreement, whereby SDTS has agreed to accept and assume certain assets and liabilities of SU in exchange for certain SDTS assets. As currently contemplated, SDTS would receive certain real property and other assets used in the electric transmission and distribution business in Central, North and West Texas, as well as the equity interests in GS Project Entity, LLC (a wholly owned subsidiary of SU) and SU would receive certain real property and other assets that are near the Texas-Mexico border. Immediately prior to completing the exchange, SDTS would become a wholly owned, indirect subsidiary of InfraREIT Partners. Consummation of the Asset Exchange Agreement is subject to the satisfaction of certain closing conditions, including the substantially concurrent consummation of the transactions contemplated by the Securities Purchase Agreement, discussed below. On October 18, 2018, Sempra Energy entered into the Securities Purchase Agreement, whereby Sempra Texas Utilities Holdings I, LLC (a wholly owned subsidiary of Sempra Energy in our Sempra Texas Utility reportable segment) has agreed to acquire a 50 -percent economic interest in Sharyland Holdings, LP for approximately $ 98 million , subject to customary closing adjustments. In connection with and prior to the consummation of the Securities Purchase Agreement, Sharyland Holdings, LP would own 100 - percent of the membership interests in SU and SU would convert into a limited liability company, which is expected to be named Sharyland Utilities, LLC. Upon consummation of the Securities Purchase Agreement, Sempra Texas Utilities Holdings I, LLC would indirectly own and account for its 50 -percent membership interest in Sharyland Utilities, LLC as an equity method investment. Consummation of the Securities Purchase Agreement is subject to the satisfaction of certain closing conditions, including the substantially concurrent consummation of the transactions contemplated by the InfraREIT Merger Agreement and the Asset Exchange Agreement. For Oncor to fund its acquisition of interests in InfraREIT, Sempra Energy and certain indirect equity holders of TTI have committed to make capital contributions proportionate to their respective ownership interest in Oncor, with the amount estimated to be contributed by Sempra Energy equal to approximately $1,025 million , excluding Sempra Energy’s share of approximately $40 million for a management agreement termination fee, as well as other customary transaction costs incurred by InfraREIT that would be borne by Oncor as part of the acquisition. We expect to fund our capital contribution to Oncor and to purchase the 50 -percent limited-partner interest in Sharyland Holdings, LP by utilizing a portion of the proceeds received from the sales of Sempra Renewables’ assets. The capital contributions are contingent on the satisfaction of customary conditions, including the substantially simultaneous closing of the transactions contemplated by the InfraREIT Merger Agreement, but are not a condition to the transactions contemplated therein. The transactions are subject to the satisfaction of certain closing conditions, including approval by the PUCT. In December 2018, early termination of the 30-day waiting period required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, was granted. In March 2019, we received approval from the FERC and clearance from the Committee on Foreign Investment in the United States. In addition, the acquisition of InfraREIT was approved by the InfraREIT stockholders on February 7, 2019. We expect that the transactions will close in mid-2019. DIVESTITURES Sempra LNG On February 7, 2019, Sempra LNG completed the sale of its non-utility natural gas storage assets in the southeast U.S. (comprised of Mississippi Hub and Bay Gas), which we classified as held for sale at December 31, 2018, to an affiliate of ArcLight Capital Partners and received cash proceeds of $322 million (subject to working capital adjustments), net of transaction costs. In January 2019, Sempra LNG completed the sale of other non-utility assets for $5 million . 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 Renewables On February 12, 2019, Sempra Renewables entered into an agreement with American Electric Power Company, Inc. (AEP) to sell its remaining wind assets and investments. On April 22, 2019, Sempra Renewables completed the sale to AEP for $584 million in cash, subject to working capital and other customary adjustments. Upon completion of the sale, remaining nominal business activities at Sempra Renewables were subsumed into Parent and other and the Sempra Renewables segment ceased to exist. The following table summarizes the carrying amounts of the major classes of assets and related liabilities classified as held for sale. ASSETS HELD FOR SALE (Dollars in millions) Sempra Renewables’ wind assets At March 31, 2019 Cash and cash equivalents $ 4 Accounts receivable – trade, net 2 Other current assets 2 Property, plant and equipment, net 366 Total assets held for sale $ 374 Accounts payable – trade $ 1 Asset retirement obligations 6 Total liabilities held for sale (1) $ 7 (1) Included in Other Current Liabilities on Sempra Energy’s Condensed Consolidated Balance Sheet. Sempra Renewables’ wind equity method investments totaling $290 million On January 25, 2019, our board of directors approved a plan to sell our South American businesses. We launched a formal process to sell our South American businesses and expect to complete the sale by the end of 2019. We determined that these businesses, which previously constituted the Sempra South American Utilities segment, and certain activities associated with those businesses, met the held-for-sale criteria. These businesses are presented as discontinued operations, as the planned sale represents a strategic shift that will have a major effect on our operations and financial results. We do not plan to have significant continuing involvement in or be able to exercise significant influence on the operating or financial policies of these operations after they are sold. Accordingly, the results of operations, financial position and cash flows for these businesses have been reclassified to discontinued operations for all periods presented. Discontinued operations that were previously in the Sempra South American Utilities segment include our 100 -percent interest in Chilquinta Energía in Chile, our 83.6 -percent interest in Luz del Sur in Peru and our interests in two energy-services companies, Tecnored and Tecsur, which provide electric construction and infrastructure services to Chilquinta Energía and Luz del Sur, respectively, as well as third parties. Summarized results from discontinued operations were as follows: DISCONTINUED OPERATIONS (Dollars in millions) Three months ended March 31, 2019 2018 Revenues $ 421 $ 426 Cost of sales (265 ) (293 ) Operating expenses (45 ) (54 ) Interest and other (3 ) (5 ) Income before income taxes and equity earnings of unconsolidated entities 108 74 Income tax expense (151 ) (47 ) Equity earnings 1 1 (Loss) income from discontinued operations, net of income tax (42 ) 28 Earnings attributable to noncontrolling interests (9 ) (7 ) (Losses) earnings from discontinued operations attributable to common shares $ (51 ) $ 21 The following table summarizes the carrying amounts of the major classes of assets and related liabilities classified as held for sale in discontinued operations. ASSETS HELD FOR SALE IN DISCONTINUED OPERATIONS (Dollars in millions) March 31, December 31, 2018 Cash and cash equivalents $ 67 $ 88 Accounts receivable, net 331 315 Due from unconsolidated affiliates 3 2 Inventories 41 38 Other current assets 15 16 Current assets $ 457 $ 459 Due from unconsolidated affiliates $ 46 $ 44 Goodwill and other intangible assets 834 819 Property, plant and equipment, net 2,459 2,357 Other noncurrent assets 49 39 Noncurrent assets $ 3,388 $ 3,259 Short-term debt $ 46 $ 55 Accounts payable 188 176 Current portion of long-term debt and finance leases 22 29 Other current liabilities 119 108 Current liabilities $ 375 $ 368 Long-term debt and finance leases $ 721 $ 708 Deferred income taxes 263 250 Other noncurrent liabilities 62 55 Noncurrent liabilities $ 1,046 $ 1,013 |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Investments in Unconsolidated Entities | INVESTMENTS IN UNCONSOLIDATED ENTITIES We generally account for investments under the equity method when we have significant influence over, but do not have control of, these entities. Equity earnings and losses, both before and net of income tax, are combined and presented as Equity Earnings (Losses) on the Condensed Consolidated Statements of Operations. See Note 1 for information on how equity earnings and losses before income taxes are factored into the calculations of our pretax income or loss and ETR. Our equity method investments include various domestic and foreign entities. Our foreign equity method investees are corporations whose operations are generally taxable on a stand alone basis in the countries in which they operate, and we recognize our equity in such income or loss net of investee income tax. Oncor is a domestic partnership for U.S. federal income tax purposes and is not included in the consolidated income tax return of Sempra Energy. Rather, only our equity earnings from our investment in Oncor Holdings (a disregarded entity for tax purposes) are included in our consolidated income tax return. A tax sharing agreement with TTI, Oncor Holdings and Oncor provides for the calculation of an income tax liability substantially as if Oncor Holdings and Oncor were taxed as corporations, and requires tax payments determined on that basis. While partnerships are not subject to income taxes, in consideration of the tax sharing agreement and Oncor being subject to the provisions of U.S. GAAP governing rate-regulated operations, Oncor recognizes amounts determined under cost-based regulatory rate-setting processes (with such costs including income taxes), as if it were taxed as a corporation. As a result, since Oncor Holdings consolidates Oncor, we recognize equity earnings from our investment in Oncor Holdings net of its recorded income tax. We provide additional information concerning our equity method investments in Note 5 above and in Notes 5 and 6 of the Notes to Consolidated Financial Statements in the Annual Report. SEMPRA TEXAS UTILITY We account for our 100-percent ownership interest in Oncor Holdings as an equity method investment. Due to the ring-fencing measures, governance mechanisms, and commitments in effect following the Merger, we do not have the power to direct the significant activities of Oncor Holdings and Oncor. See Note 6 of the Notes to Consolidated Financial Statements in the Annual Report for additional information related to the restrictions on our ability to direct the significant activities of Oncor Holdings and Oncor. In each of the first quarter of 2019 and the second quarter of 2019 through May 7, 2019, Sempra Energy contributed $56 million to Oncor, and Oncor Holdings distributed to Sempra Energy $54 million in dividends and $3 million in tax sharing payments. We provide summarized income statement information for Oncor Holdings in the following table. SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS (Dollars in millions) Three months ended March 31, 2019 March 9 - March 31, 2018 Operating revenues $ 1,016 $ 236 Operating expense (775 ) (185 ) Income from operations 241 51 Interest expense (86 ) (22 ) Income tax expense (23 ) (7 ) Net income 114 19 Noncontrolling interest held by TTI (23 ) (4 ) Earnings attributable to Sempra Energy (1) 91 15 (1) Earnings at Oncor Holdings differ from earnings at the Sempra Texas Utility segment due to amortization of a tax sharing liability associated with a tax sharing arrangement and basis differences in AOCI. SEMPRA MEXICO Sempra Mexico invested cash of $25 million in the IMG JV in the three months ended March 31, 2018 . SEMPRA RENEWABLES As we discuss in Note 5, in February 2019, Sempra Renewables entered into an agreement to sell its remaining wind assets and investments. At March 31, 2019, the wind investments had a carrying value of $290 million and were included in Other Investments on Sempra Energy’s Condensed Consolidated Balance Sheets. We completed the sale in April 2019, as we discuss in Note 5 . SEMPRA LNG Sempra LNG capitalized $13 million and $11 million of interest in the three months ended March 31, 2019 and 2018 , respectively, related to its investment in Cameron LNG JV, which has not commenced planned principal operations. In the three months ended March 31, 2019 and 2018, Sempra LNG invested cash of $25 million and $29 million , respectively, in this unconsolidated JV. GUARANTEES At March 31, 2019 , we had outstanding guarantees aggregating a maximum of $4.2 billion with an aggregate carrying value of $10 million |
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES LINES OF CREDIT Primary U.S. Committed Lines of Credit At March 31, 2019, Sempra Energy Consolidated had an aggregate of approximately $5.4 billion in three primary U.S. 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 7 of the Notes to Consolidated Financial Statements in the Annual Report. PRIMARY U.S. COMMITTED LINES OF CREDIT (Dollars in millions) March 31, 2019 Total facility Commercial paper outstanding (1) Available unused credit Sempra Energy (2) $ 1,250 $ — $ 1,250 Sempra Global (3) 3,185 (1,289 ) 1,896 California Utilities (4) : SDG&E 750 (238 ) 512 SoCalGas 750 (190 ) 560 Less: subject to a combined limit of $1 billion for both utilities (500 ) — (500 ) 1,000 (428 ) 572 Total $ 5,435 $ (1,717 ) $ 3,718 (1) 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. (2) 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 March 31, 2019. (3) Commercial paper outstanding is before reductions of unamortized discount of $2 million . Sempra Energy guarantees Sempra Global’s obligations under the credit facility. (4) 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 March 31, 2019. Sempra Energy, SDG&E and SoCalGas must maintain a ratio of indebtedness to total capitalization (as defined in each of the applicable credit facilities) of no more than 65 percent at the end of each quarter. At March 31, 2019, each entity was in compliance with this and all other financial covenants under its respective credit facility. Foreign Committed Lines of Credit In February 2019, IEnova revised the terms of its five -year revolving credit facility by increasing the amount available under the facility from $1.17 billion to $1.5 billion , extending the expiration of the facility from August 2020 to February 2024 and increasing the syndicate of lenders from eight to 10 . At March 31, 2019, available unused credit on this line was approximately $692 million . On April 11, 2019, IEnova entered into a three-year, $100 million revolving credit agreement with Scotiabank Inverlat, S.A. Under the agreement, withdrawals may be made for up to one year in either U.S. dollars or Mexican pesos. Letters of Credit Outside of our domestic and foreign committed credit facilities, we have bilateral unsecured standby letter of credit capacity with select lenders that is uncommitted and supported by reimbursement agreements. At March 31, 2019, we had approximately $611 million in standby letters of credit outstanding under these agreement s. WEIGHTED-AVERAGE INTEREST RATES The weighted-average interest rates on total short-term debt at Sempra Energy Consolidated were 3.07 percent and 2.99 percent at March 31, 2019 and December 31, 2018 , respectively. The weighted-average interest rates on total short-term debt at SDG&E were 2.80 percent and 2.97 percent at March 31, 2019 and December 31, 2018 , respectively. The weighted-average interest rates on total short-term debt at SoCalGas were 2.49 percent and 2.58 percent at March 31, 2019 and December 31, 2018 , respectively. INTEREST RATE SWAPS In February 2019, Sempra Energy entered into floating-to-fixed interest rate swaps to hedge interest payments on the $850 million of variable rate notes issued in October 2017 and maturing in March 2021, resulting in an all-in fixed rate of 3.069 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2019 | |
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 OCI (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the principal settlements of cross-currency swaps that hedge exposure related to Mexican peso-denominated debt as financing activities and settlements of other derivative instruments as operating activities on the Condensed Consolidated Statements of Cash Flows. HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated cash flows associated with revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that the future cash flows of a given revenue or expense item may vary, and other criteria. ENERGY DERIVATIVES Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business, as follows: ▪ The California Utilities use natural gas and electricity derivatives, for the benefit of customers, with the objective of managing price risk and basis risks, and stabilizing and lowering natural gas and electricity costs. These derivatives include fixed price natural gas and electricity positions, options, and basis risk instruments, which are either exchange-traded or over-the-counter financial instruments, or bilateral physical transactions. This activity is governed by risk management and transacting activity plans that have been filed with and approved by the CPUC. Natural gas and electricity derivative activities are recorded as commodity costs that are offset by regulatory account balances and are recovered in rates. Net commodity cost impacts on the Condensed Consolidated Statements of Operations are reflected in Cost of Electric Fuel and Purchased Power or in Cost of Natural Gas. ▪ SDG&E is allocated and may purchase CRRs, which serve to reduce the regional electricity price volatility risk that may result from local transmission capacity constraints. Unrealized gains and losses do not impact earnings, as they are offset by regulatory account balances. Realized gains and losses associated with CRRs, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. ▪ Sempra Mexico, Sempra LNG 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 Sales on the Condensed Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. Sempra Mexico may also use natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its distribution operations. These derivatives, which are recorded as commodity costs that are offset by regulatory account balances and recovered in rates, are recognized in Cost of Natural Gas on the Condensed Consolidated Statements of Operations. ▪ From time to time, our various businesses, including the California Utilities, may use other energy derivatives to hedge exposures such as the price of vehicle fuel and GHG allowances. The following table summarizes net energy derivative volumes. NET ENERGY DERIVATIVE VOLUMES (Quantities in millions) Commodity Unit of measure March 31, December 31, Sempra Energy Consolidated: Natural gas MMBtu 33 35 Electricity MWh 2 2 Congestion revenue rights MWh 50 52 SDG&E: Natural gas MMBtu 32 33 Electricity MWh 2 2 Congestion revenue rights MWh 50 52 In addition to the amounts noted above, we use commodity derivatives to manage risks associated with the physical locations of contractual obligations and assets, such as natural gas purchases and sales. INTEREST RATE DERIVATIVES We are exposed to interest rates primarily as a result of our current and expected use of financing. The California Utilities, as well as Sempra Energy and its other subsidiaries and JVs, periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. In addition, we may utilize interest rate swaps, typically designated as cash flow hedges, to lock in interest rates on outstanding debt or in anticipation of future financings. Separately, Otay Mesa VIE has entered into interest rate swap agreements, designated as cash flow hedges, to moderate its exposure to interest rate changes. The following table presents the net notional amounts of our interest rate derivatives, excluding JVs. INTEREST RATE DERIVATIVES (Dollars in millions) March 31, 2019 December 31, 2018 Notional debt Maturities Notional debt Maturities Sempra Energy Consolidated: Cash flow hedges (1) $ 1,430 2019-2032 $ 594 2019-2032 SDG&E: Cash flow hedge (1) 142 2019 142 2019 (1) Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. In December 2018, OMEC LLC entered into new floating-to-fixed interest rate swaps with notional amounts of $159 million effective April 30, 2019 through October 31, 2019, and a swaption with a notional amount of $142 million effective October 31, 2019 through October 31, 2023. FOREIGN CURRENCY DERIVATIVES We utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and JVs. These cash flow hedges exchange our Mexican peso-denominated principal and interest payments into the U.S. dollar and swap Mexican variable interest rates for U.S. fixed interest rates. From time to time, Sempra Mexico and its JVs may use other foreign currency derivatives to hedge exposures related to cash flows associated with revenues from contracts denominated in Mexican pesos that are indexed to the U.S. dollar. We are also exposed to exchange rate movements at our Mexican subsidiaries and JVs, which have U.S. dollar-denominated cash balances, receivables, payables and debt (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. They also have deferred income tax assets and liabilities denominated in the Mexican peso, which must be translated to U.S. dollars for financial reporting purposes. In addition, monetary assets and liabilities and certain nonmonetary assets and liabilities are adjusted for Mexican inflation for Mexican income tax purposes. We utilize foreign currency derivatives as a means to manage the risk of exposure to significant fluctuations in our income tax expense and equity earnings from these impacts; however, we generally do not hedge our deferred income tax assets and liabilities or for inflation. The following table presents the net notional amounts of our foreign currency derivatives, excluding JVs. FOREIGN CURRENCY DERIVATIVES (Dollars in millions) March 31, 2019 December 31, 2018 Notional amount Maturities Notional amount Maturities Sempra Energy Consolidated: Cross-currency swaps $ 306 2019-2023 $ 306 2019-2023 Other foreign currency derivatives 1,084 2019-2020 1,158 2019-2020 FINANCIAL STATEMENT PRESENTATION The Condensed Consolidated Balance Sheets reflect the offsetting of net derivative positions and cash collateral with the same counterparty when a legal right of offset exists. The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets, including the amount of cash collateral receivables that were not offset, as the cash collateral was in excess of liability positions. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) March 31, 2019 Current (1) Other Current liabilities: Deferred Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments (2) $ — $ — $ (5 ) $ (146 ) Derivatives not designated as hedging instruments: Foreign exchange instruments 12 — — — Commodity contracts not subject to rate recovery 58 6 (65 ) (5 ) Associated offsetting commodity contracts (47 ) (2 ) 47 2 Commodity contracts subject to rate recovery 50 236 (41 ) (65 ) Associated offsetting commodity contracts (5 ) (2 ) 5 2 Associated offsetting cash collateral — — 3 3 Net amounts presented on the balance sheet 68 238 (56 ) (209 ) Additional cash collateral for commodity contracts not subject to rate recovery 25 — — — Additional cash collateral for commodity contracts subject to rate recovery 26 — — — Total (3) $ 119 $ 238 $ (56 ) $ (209 ) SDG&E: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 45 $ 234 $ (37 ) $ (65 ) Associated offsetting commodity contracts (5 ) (2 ) 5 2 Associated offsetting cash collateral — — 3 3 Net amounts presented on the balance sheet 40 232 (29 ) (60 ) Additional cash collateral for commodity contracts subject to rate recovery 25 — — — Total (3) $ 65 $ 232 $ (29 ) $ (60 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 5 $ 2 $ (4 ) $ — Net amounts presented on the balance sheet 5 2 (4 ) — Additional cash collateral for commodity contracts subject to rate recovery 1 — — — Total $ 6 $ 2 $ (4 ) $ — (1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Includes a negligible amount for Otay Mesa VIE. (3) Normal purchase contracts previously measured at fair value are excluded. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2018 Current (1) Other Current liabilities: Deferred Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments (2) $ 2 $ — $ (3 ) $ (147 ) Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery 153 7 (164 ) (6 ) Associated offsetting commodity contracts (133 ) (3 ) 133 3 Commodity contracts subject to rate recovery 64 233 (42 ) (72 ) Associated offsetting commodity contracts (6 ) (2 ) 6 2 Associated offsetting cash collateral — — — 2 Net amounts presented on the balance sheet 80 235 (70 ) (218 ) Additional cash collateral for commodity contracts not subject to rate recovery 19 — — — Additional cash collateral for commodity contracts subject to rate recovery 33 — — — Total (3) $ 132 $ 235 $ (70 ) $ (218 ) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments (2) $ — $ — $ (1 ) $ — Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery 60 233 (37 ) (72 ) Associated offsetting commodity contracts (6 ) (2 ) 6 2 Associated offsetting cash collateral — — — 2 Net amounts presented on the balance sheet 54 231 (32 ) (68 ) Additional cash collateral for commodity contracts subject to rate recovery 28 — — — Total (3) $ 82 $ 231 $ (32 ) $ (68 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 4 $ — $ (5 ) $ — Net amounts presented on the balance sheet 4 — (5 ) — Additional cash collateral for commodity contracts subject to rate recovery 5 — — — Total $ 9 $ — $ (5 ) $ — (1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. (3) Normal purchase contracts previously measured at fair value are excluded. The table below includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI: CASH FLOW HEDGE IMPACTS (Dollars in millions) Pretax gain (loss) recognized in OCI Pretax gain (loss) reclassified from AOCI into earnings Three months ended March 31, Three months ended March 31, 2019 2018 Location 2019 2018 Sempra Energy Consolidated: Interest rate and foreign exchange instruments (1) $ (3 ) $ 54 Interest Expense $ (1 ) $ 2 Other Income, Net 3 18 Interest rate and foreign exchange instruments (68 ) 70 Equity Earnings (Losses) (1 ) (4 ) Foreign exchange instruments (3 ) (7 ) Revenues: Energy- Related Businesses (1 ) — Total $ (74 ) $ 117 $ — $ 16 SDG&E: Interest rate instruments (1) $ — $ 1 Interest Expense $ (1 ) $ (3 ) (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. For Sempra Energy Consolidated, we expect that net gains of $5 million , which are net of income tax expense, that are currently recorded in AOCI (including $1 million of losses in NCI related to Otay Mesa VIE at SDG&E) related to cash flow hedges will be reclassified into earnings during the next 12 months as the hedged items affect earnings. SoCalGas expects that $1 million of losses, net of income tax benefit, that are currently recorded in AOCI related to cash flow hedges will be reclassified into earnings during the next 12 months as the hedged items affect earnings. Actual amounts ultimately reclassified into earnings depend on the interest rates in effect when derivative contracts mature. For all forecasted transactions, the maximum remaining term over which we are hedging exposure to the variability of cash flows at March 31, 2019 is approximately 13 years and less than one year 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 15 years . The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations. UNDESIGNATED DERIVATIVE IMPACTS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended Location 2019 2018 Sempra Energy Consolidated: Foreign exchange instruments Other Income, Net $ 10 $ 44 Commodity contracts not subject to rate recovery Revenues: Energy-Related Businesses — (9 ) Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power 2 2 Commodity contracts subject to rate recovery Cost of Natural Gas 2 1 Total $ 14 $ 38 SDG&E: Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power $ 2 $ 2 SoCalGas: Commodity contracts subject to rate recovery Cost of Natural Gas $ 2 $ 1 CONTINGENT FEATURES For Sempra Energy Consolidated, SDG&E and SoCalGas, certain of our derivative instruments contain credit limits which vary depending on our credit ratings. Generally, these provisions, if applicable, may reduce our credit limit if a specified credit rating agency reduces our ratings. In certain cases, if our credit ratings were to fall below investment grade, the counterparty to these derivative liability instruments could request immediate payment or demand immediate and ongoing full collateralization. For Sempra Energy Consolidated, the total fair value of this group of derivative instruments in a net liability position at March 31, 2019 and December 31, 2018 was $14 million and $16 million , respectively. For SoCalGas, the total fair value of this group of derivative instruments in a net liability position at March 31, 2019 and December 31, 2018 was $4 million and $5 million , respectively. At March 31, 2019 , if the credit ratings of Sempra Energy or SoCalGas were reduced below investment grade, $15 million and $4 million , respectively, of additional assets could be required to be posted as collateral for these derivative contracts. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 . 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. We have not changed the valuation techniques or types of inputs we use to measure recurring fair value since December 31, 2018. The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 8 under “Financial Statement Presentation.” The determination of fair values, shown in the tables below, incorporates various factors, including but not limited to, the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests). Our financial assets and liabilities that were accounted for at fair value on a recurring basis in the tables below include the following (other than a $7 million investment at March 31, 2019 measured at net asset value): ▪ Nuclear decommissioning trusts reflect the assets of SDG&E’s NDT, excluding cash balances. A third party trustee values the trust assets using prices from a pricing service based on a market approach. We validate these prices by comparison to prices from other independent data sources. Securities are valued using quoted prices listed on nationally recognized securities exchanges or based on closing prices reported in the active market in which the identical security is traded (Level 1). Other securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2). ▪ For commodity contracts, interest rate derivatives and foreign exchange instruments, we primarily use a market or income approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs and long-term, fixed-price electricity positions at SDG&E, as we discuss below in “Level 3 Information.” ▪ Rabbi Trust investments include marketable securities that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1). These investments in marketable securities were negligible at both March 31, 2019 and December 31, 2018 . RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Fair value at March 31, 2019 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 454 $ 5 $ — $ 459 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 39 9 — 48 Municipal bonds — 279 — 279 Other securities — 238 — 238 Total debt securities 39 526 — 565 Total nuclear decommissioning trusts (1) 493 531 — 1,024 Interest rate and foreign exchange instruments — 12 — 12 Commodity contracts not subject to rate recovery — 15 — 15 Effect of netting and allocation of collateral (2) 25 — — 25 Commodity contracts subject to rate recovery — 8 271 279 Effect of netting and allocation of collateral (2) 21 — 5 26 Total $ 539 $ 566 $ 276 $ 1,381 Liabilities: Interest rate and foreign exchange instruments $ — $ 151 $ — $ 151 Commodity contracts not subject to rate recovery — 21 — 21 Commodity contracts subject to rate recovery 6 4 89 99 Effect of netting and allocation of collateral (2) (6 ) — — (6 ) Total $ — $ 176 $ 89 $ 265 Fair value at December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 407 $ 4 $ — $ 411 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 43 10 — 53 Municipal bonds — 269 — 269 Other securities — 234 — 234 Total debt securities 43 513 — 556 Total nuclear decommissioning trusts (1) 450 517 — 967 Interest rate and foreign exchange instruments — 2 — 2 Commodity contracts not subject to rate recovery — 24 — 24 Effect of netting and allocation of collateral (2) 19 — — 19 Commodity contracts subject to rate recovery 2 9 278 289 Effect of netting and allocation of collateral (2) 28 — 5 33 Total $ 499 $ 552 $ 283 $ 1,334 Liabilities: Interest rate and foreign exchange instruments $ — $ 150 $ — $ 150 Commodity contracts not subject to rate recovery — 34 — 34 Commodity contracts subject to rate recovery 2 5 99 106 Effect of netting and allocation of collateral (2) (2 ) — — (2 ) Total $ — $ 189 $ 99 $ 288 (1) Excludes cash balances and cash equivalents. (2) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. RECURRING FAIR VALUE MEASURES – SDG&E (Dollars in millions) Fair value at March 31, 2019 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 454 $ 5 $ — $ 459 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 39 9 — 48 Municipal bonds — 279 — 279 Other securities — 238 — 238 Total debt securities 39 526 — 565 Total nuclear decommissioning trusts (1) 493 531 — 1,024 Commodity contracts subject to rate recovery — 1 271 272 Effect of netting and allocation of collateral (2) 20 — 5 25 Total $ 513 $ 532 $ 276 $ 1,321 Liabilities: Commodity contracts subject to rate recovery $ 6 $ — $ 89 $ 95 Effect of netting and allocation of collateral (2) (6 ) — — (6 ) Total $ — $ — $ 89 $ 89 Fair value at December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 407 $ 4 $ — $ 411 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 43 10 — 53 Municipal bonds — 269 — 269 Other securities — 234 — 234 Total debt securities 43 513 — 556 Total nuclear decommissioning trusts (1) 450 517 — 967 Commodity contracts subject to rate recovery 1 6 278 285 Effect of netting and allocation of collateral (2) 23 — 5 28 Total $ 474 $ 523 $ 283 $ 1,280 Liabilities: Interest rate instruments $ — $ 1 $ — $ 1 Commodity contracts subject to rate recovery 2 — 99 101 Effect of netting and allocation of collateral (2) (2 ) — — (2 ) Total $ — $ 1 $ 99 $ 100 (1) Excludes cash balances and cash equivalents. (2) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. RECURRING FAIR VALUE MEASURES – SOCALGAS (Dollars in millions) Fair value at March 31, 2019 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ — $ 7 $ — $ 7 Effect of netting and allocation of collateral (1) 1 — — 1 Total $ 1 $ 7 $ — $ 8 Liabilities: Commodity contracts subject to rate recovery $ — $ 4 $ — $ 4 Total $ — $ 4 $ — $ 4 Fair value at December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ 1 $ 3 $ — $ 4 Effect of netting and allocation of collateral (1) 5 — — 5 Total $ 6 $ 3 $ — $ 9 Liabilities: Commodity contracts subject to rate recovery $ — $ 5 $ — $ 5 Total $ — $ 5 $ — $ 5 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. Level 3 Information The table below sets forth reconciliations of changes in the fair value of CRRs and long-term, fixed-price electricity positions classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E. LEVEL 3 RECONCILIATIONS (1) (Dollars in millions) Three months ended March 31, 2019 2018 Balance at January 1 $ 179 $ (28 ) Realized and unrealized gains 5 4 Allocated transmission instruments — 3 Settlements (2 ) (19 ) Balance at March 31 $ 182 $ (40 ) Change in unrealized gains (losses) relating to instruments still held at March 31 $ 13 $ (8 ) (1) Excludes the effect of the contractual ability to settle contracts under master netting agreements. Inputs used to determine the fair value of CRRs and fixed-price electricity positions are reviewed and compared with market conditions to determine reasonableness. SDG&E expects all costs related to these instruments to be recoverable through customer rates. As such, there is no impact to earnings from changes in the fair value of these instruments. CRRs are recorded at fair value based almost entirely on the most current auction prices published by the California ISO, an objective source. Annual auction prices are published once a year, typically in the middle of November, and are the basis for valuing CRRs settling in the following year. For the CRRs settling from January 1 to December 31, the auction price inputs, at a given location, were in the following ranges for the years indicated below: CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS Settlement year Price per MWh Median price per MWh 2019 $ (8.57 ) to $ 35.21 $ (2.94 ) 2018 (7.25 ) to 11.99 0.09 The impact associated with discounting is negligible. Because these auction prices are a less observable input, these instruments are classified as Level 3. The fair value of these instruments is derived from auction price differences between two locations. Positive values between two locations represent expected future reductions in congestion costs, whereas negative values between two locations represent expected future charges. Valuation of our CRRs is sensitive to a change in auction price. If auction prices at one location increase (decrease) relative to another location, this could result in a higher (lower) fair value measurement. We summarize CRR volumes in Note 8. Long-term, fixed-price electricity positions that are valued using significant unobservable data are classified as Level 3 because the contract terms relate to a delivery location or tenor for which observable market rate information is not available. The fair value of the net electricity positions classified as Level 3 is derived from a discounted cash flow model using market electricity forward price inputs. The range and weighted-average price of these inputs were as follows: LONG-TERM, FIXED-PRICE ELECTRICITY POSITIONS PRICE INPUTS Settlement year Price per MWh Weighted-average price per MWh 2019 $ 23.25 to $ 81.75 $ 42.49 2018 20.00 to 47.65 35.42 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 8. Realized gains and losses associated with CRRs and long-term electricity positions, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Because unrealized gains and losses are recorded as regulatory assets and liabilities, they do not affect earnings. Fair Value of Financial Instruments The fair values of certain of our financial instruments (cash, accounts and notes receivable, short-term amounts due to/from unconsolidated affiliates, dividends and accounts payable, short-term debt and customer deposits) approximate their carrying amounts because of the short-term nature of these instruments. Investments in life insurance contracts that we hold in support of our Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans are carried at cash surrender values, which represent the amount of cash that could be realized under the contracts. The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets. FAIR VALUE OF FINANCIAL INSTRUMENTS (Dollars in millions) March 31, 2019 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates $ 668 $ — $ 689 $ — $ 689 Long-term amounts due to unconsolidated affiliates 38 — 37 — 37 Total long-term debt (1)(2) 20,814 — 20,598 248 20,846 SDG&E: Total long-term debt (2)(3) $ 4,978 $ — $ 4,918 $ 220 $ 5,138 SoCalGas: Total long-term debt (4) $ 3,459 $ — $ 3,595 $ — $ 3,595 December 31, 2018 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates $ 644 $ — $ 648 $ 4 $ 652 Long-term amounts due to unconsolidated affiliates 37 — 35 — 35 Total long-term debt (2)(5) 21,340 — 20,616 247 20,863 SDG&E: Total long-term debt (6) $ 4,996 $ — $ 4,897 $ 220 $ 5,117 SoCalGas: Total long-term debt (7) $ 3,459 $ — $ 3,505 $ — $ 3,505 (1) Before reductions of unamortized discount and debt issuance costs of $201 million and excluding finance lease obligations of $1,277 million . (2) Level 3 instruments includes $220 million at both March 31, 2019 and December 31, 2018 related to Otay Mesa VIE. (3) Before reductions of unamortized discount and debt issuance costs of $48 million and excluding finance lease obligations of $1,272 million . (4) Before reductions of unamortized discount and debt issuance costs of $32 million and excluding finance lease obligations of $5 million . (5) Before reductions of unamortized discount and debt issuance costs of $206 million and excluding build-to-suit and capital lease obligations of $1,413 million . (6) Before reductions of unamortized discount and debt issuance costs of $49 million and excluding capital lease obligations of $1,272 million . (7) Before reductions of unamortized discount and debt issuance costs of $32 million and excluding capital lease obligations of $3 million . We provide the fair values for the securities held in the NDT related to SONGS in Note 10 |
SAN ONOFRE NUCLEAR GENERATING S
SAN ONOFRE NUCLEAR GENERATING STATION | 3 Months Ended |
Mar. 31, 2019 | |
Regulated Operations [Abstract] | |
San Onofre Nuclear Generating Station (SONGS) | REGULATORY MATTERS We discuss regulatory matters in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and information about new regulatory matters below. REGULATORY ASSETS AND LIABILITIES We show the details of regulatory assets and liabilities in the following table. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) March 31, December 31, SDG&E: Fixed-price contracts and other derivatives $ (144 ) $ (150 ) Deferred income taxes refundable in rates (171 ) (236 ) Pension and other postretirement benefit plan obligations 190 186 Removal obligations (1,946 ) (1,848 ) Unamortized loss on reacquired debt 6 7 Environmental costs 27 28 Sunrise Powerlink fire mitigation 121 120 Regulatory balancing accounts (1) Commodity – electric 60 (8 ) Gas transportation 13 45 Safety and reliability 77 70 Public purpose programs (80 ) (62 ) Other balancing accounts 67 145 Other regulatory liabilities, net (2) (199 ) (177 ) Total SDG&E (1,979 ) (1,880 ) SoCalGas: Pension and other postretirement benefit plan obligations 479 470 Employee benefit costs 49 49 Removal obligations (804 ) (833 ) Deferred income taxes refundable in rates (248 ) (336 ) Unamortized loss on reacquired debt 6 7 Environmental costs 32 28 Workers’ compensation 9 9 Regulatory balancing accounts (1) Commodity – gas, including transportation 16 196 Safety and reliability 348 332 Public purpose programs (289 ) (325 ) Other balancing accounts (143 ) (68 ) Other regulatory liabilities, net (2) (160 ) (130 ) Total SoCalGas (705 ) (601 ) Sempra Mexico: Deferred income taxes recoverable in rates 81 81 Other regulatory assets 9 6 Total Sempra Energy Consolidated $ (2,594 ) $ (2,394 ) (1) At March 31, 2019 and December 31, 2018 , the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $84 million and $78 million , respectively, and for SoCalGas was $405 million and $185 million , respectively. (2) Includes regulatory assets earning a rate of return. CALIFORNIA UTILITIES 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. 2019 General Rate Case On October 6, 2017, SDG&E and SoCalGas filed their 2019 GRC applications requesting CPUC approval of test year revenue requirements for 2019 and attrition year adjustments for 2020 through 2022. SDG&E and SoCalGas are seeking revenue requirements for 2019 of $2.203 billion and $2.937 billion , respectively, which is an increase of $221 million and $481 million over their respective 2018 revenue requirements (the 2019 proposed and 2018 actual revenue requirements reflect the impact of various updates made during the course of the proceeding). The California Utilities are proposing post-test year revenue requirement annual attrition percentages that are estimated to result in annual increases of approximately 5 percent to 7 percent at SDG&E and approximately 6 percent to 8 percent at SoCalGas. The original GRC applications filed in October 2017 did not reflect the impact of the TCJA, which we discuss in “2016 General Rate Case” below and in Note 8 of the Notes to Consolidated Financial Statements in the Annual Report. In April 2018, SDG&E and SoCalGas updated their applications to reflect the impact of the TCJA and filed a joint proposal to address the impacts. The TCJA impact to SDG&E is a reduction of approximately $58 million to its 2019 test year revenue requirement; however, SDG&E’s 2019 requested revenue requirement is unchanged as we evaluate potentially higher costs associated with mitigating wildfire risks. The TCJA impact to SoCalGas’ 2019 requested revenue requirement is a reduction of approximately $58 million , which is reflected in its updated request. During the course of the proceeding, Cal PA recommended 2019 revenue requirements of $1.918 billion and $2.695 billion for SDG&E and SoCalGas, respectively, which is a net decrease of $64 million for SDG&E and a net increase of $239 million for SoCalGas compared to the 2018 revenue requirements. Cal PA proposes a three-year annual attrition percentage of 4 percent for SDG&E and a range of 4 percent to 5 percent for SoCalGas. Cal PA recommends addressing SDG&E’s potential ownership of OMEC in a separate proceeding. As a result, Cal PA’s proposed 2019 revenue requirement does not include the estimated $ 68 million included in SDG&E’s GRC application associated with owning and operating the generating facility. As we discuss in Note 1, on March 28, 2019, OMEC LLC exercised the put option requiring SDG&E to purchase the power plant by October 3, 2019, which is subject to the results of rehearing requests. TURN and other intervenors oppose various components of our revenue requests in the 2019 GRC applications. The results of the rate case may materially and adversely differ from what is contained in the GRC applications. We expect a preliminary decision from the CPUC in mid-2019. 2016 General Rate Case As we discuss in Notes 4 and 8 of the Notes to Consolidated Financial Statements in the Annual Report, the 2016 GRC FD required SDG&E and SoCalGas to each establish a two-way income tax expense memorandum account to track certain revenue variances resulting from certain differences between the income tax expense forecasted in the GRC and the income tax expense incurred from 2016 through 2018. At March 31, 2019 , the recorded regulatory liability associated with these tracked amounts totaled $90 million and $95 million for SDG&E and SoCalGas, respectively. The recorded liability is primarily related to lower income tax expense incurred than was forecasted in the GRC relating to tax repairs deductions, self-developed software deductions and certain book-over-tax depreciation. The tracking accounts will remain open until the CPUC decides to close the accounts, which we expect will be reviewed in the 2019 GRC proceedings. The 2016 GRC FD revenue requirement was authorized using a federal income tax rate of 35 percent. As a result of the TCJA, the federal income tax rate of 21 percent became effective January 1, 2018. Since SDG&E and SoCalGas continue to collect authorized revenues based on a 35 percent tax rate, SDG&E and SoCalGas are recording revenue deferrals, aligned with authorized seasonality factors, that reflect the estimated reduction in the revenue requirement. As of March 31, 2019 , SDG&E and SoCalGas recorded regulatory liabilities of $95 million and $91 million , respectively, in anticipation of amounts that will benefit customers in future rates. SDG&E also recorded a $85 million regulatory liability at March 31, 2019 , relating to its FERC jurisdictional rates, in anticipation of amounts that will benefit customers in future rates for the decrease in the federal income tax rate. CPUC Cost of Capital In April 2019, SDG&E and SoCalGas filed separate applications with the CPUC to update their cost of capital effective January 1, 2020. SDG&E proposed to adjust its authorized capital structure by increasing the amount of its common equity from 52 percent to 56 percent . SDG&E also proposed to increase its authorized ROE from 10.2 percent to 14.3 percent , including a premium for wildfire risk of 3.4 percent , and to increase its authorized return on rate base from 7.55 percent to 10.03 percent . SoCalGas proposed to adjust its authorized capital structure by increasing the amount of its common equity from 52 percent to 56 percent . SoCalGas also proposed to increase its authorized ROE from 10.05 percent to 10.7 percent and to increase its authorized return on rate base from 7.34 percent to 7.85 percent . SOCALGAS Billing Practices OII In May 2017, the CPUC issued an OII to determine whether SoCalGas violated any provisions of the California Public Utilities Code, General Orders, CPUC decisions, or other requirements pertaining to billing practices from 2014 through 2016. The CPUC examined the timeliness of monthly bills, extending the billing period for customers, and issuing estimated bills, including an examination of SoCalGas’ gas tariff rules. In January 2019, the CPUC ordered SoCalGas to pay $8 million in penalties, including $3 million payable to California’s general fund and $5 million to be credited to customers that received delayed bills (greater than 45 days ) in the form of a $100 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 15 of the Notes to Consolidated Financial Statements in the Annual Report. NUCLEAR DECOMMISSIONING AND FUNDING As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison began the decommissioning phase of the plant. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work for Unit 1 will be completed once Units 2 and 3 are dismantled and the spent fuel is removed from the site . The majority of the dismantlement work is expected to take 10 years . The spent fuel is currently being stored on-site, until the DOE identifies a spent fuel storage facility and puts in place a program for the fuel’s disposal, as we discuss below. SDG&E is responsible for approximately 20 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 noncurrent Regulatory Liabilities. Except for the use of funds for the planning of decommissioning activities or NDT administrative costs, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs for Units 2 and 3. SDG&E has received authorization from the CPUC to access NDT funds of up to $455 million for 2013 through 2019 (2019 forecasted) SONGS decommissioning costs. This includes up to $93 million authorized by the CPUC in January 2019 to be withdrawn from the NDT for forecasted 2019 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 trust fund. The proposed regulations state that costs related to the construction and maintenance of independent spent fuel management installations are included in the definition of “nuclear decommissioning costs.” The proposed regulations will be effective prospectively once they are finalized; 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 awaiting the adoption of, or additional refinement to, the proposed regulations before determining whether the proposed regulations will allow SDG&E to access the NDT funds for reimbursement or payment of the spent fuel management costs incurred in 2017 and subsequent years. Further clarification of the proposed regulations could enable SDG&E to access the NDT to recover spent fuel management costs before Edison reaches final settlement with the DOE regarding the DOE’s reimbursement of these costs. Historically, the DOE’s reimbursements of spent fuel storage costs have not resulted in timely or complete recovery of these costs. We discuss the DOE’s responsibility for spent nuclear fuel below. The IRS held public hearings on the proposed regulations in October 2017. It is unclear when clarification of the proposed regulations might be provided or when the proposed regulations will be finalized. The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 9 . NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At March 31, 2019: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 48 $ — $ — $ 48 Municipal bonds (2) 271 8 — 279 Other securities (3) 236 3 (1 ) 238 Total debt securities 555 11 (1 ) 565 Equity securities 166 299 (6 ) 459 Cash and cash equivalents 13 — — 13 Total $ 734 $ 310 $ (7 ) $ 1,037 At December 31, 2018: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 52 $ 1 $ — $ 53 Municipal bonds 266 4 (1 ) 269 Other securities 238 1 (5 ) 234 Total debt securities 556 6 (6 ) 556 Equity securities 168 253 (10 ) 411 Cash and cash equivalents 7 — — 7 Total $ 731 $ 259 $ (16 ) $ 974 (1) Maturity dates are 2019-2049. (2) Maturity dates are 2019-2056. (3) Maturity dates are 2019-2064. The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales. SALES OF SECURITIES IN THE NDT (Dollars in millions) Three months ended March 31, 2019 2018 Proceeds from sales $ 225 $ 210 Gross realized gains 5 4 Gross realized losses (2 ) (3 ) Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. ASSET RETIREMENT OBLIGATION AND SPENT NUCLEAR FUEL SDG&E’s ARO related to decommissioning costs for the SONGS units was $620 million at March 31, 2019. That amount includes the cost to decommission Units 2 and 3, and the remaining cost to complete the decommissioning of Unit 1, which is substantially complete. The ARO for all three units is based on a cost study prepared in 2017 that is pending CPUC approval. The ARO for Units 2 and 3 reflects the acceleration of the start of decommissioning of these units as a result of the early closure of the plant. SDG&E’s share of total decommissioning costs in 2018 dollars is approximately $810 million . U.S. DEPARTMENT OF ENERGY NUCLEAR FUEL DISPOSAL Spent nuclear fuel from SONGS is currently stored on-site in an ISFSI licensed by the Nuclear Regulatory Commission or temporarily in spent fuel pools. In October 2015, the California Coastal Commission approved Edison’s application for the proposed expansion of the ISFSI at SONGS. The ISFSI expansion began construction in 2016 and the transfer of the spent nuclear fuel from Units 2 and 3 to the ISFSI began in 2018. Edison suspended this transfer on August 3, 2018 due to an incident that occurred when a spent fuel canister was getting loaded into the ISFSI. The incident did not result in any harm to the public or workers and the canister was subsequently safely loaded into the IFSFI. Edison has not resumed spent fuel transfer operations at SONGS, but has publicly stated that it will resume operations once it is satisfied all corrective actions are in place and proven effective and the NRC has completed its on-site inspection activities. The ISFSI will operate until 2049, when it is assumed that the DOE will have taken custody of all the SONGS spent fuel. The ISFSI would then be decommissioned, and the site restored to its original environmental state. Until then, SONGS owners are responsible for interim storage of spent nuclear fuel at SONGS. The Nuclear Waste Policy Act of 1982 made the DOE responsible for accepting, transporting, and disposing of spent nuclear fuel. However, it is uncertain when the DOE will begin accepting spent nuclear fuel from SONGS. This delay will lead to increased costs for spent fuel storage. SDG&E will continue to support Edison in its pursuit of claims on behalf of the SONGS co-owners against the DOE for its failure to timely accept the spent nuclear fuel. However, it is unclear whether Edison will enter into a new settlement with the DOE or pursue litigation claims for spent fuel management costs incurred on or after January 1, 2017. NUCLEAR INSURANCE SDG&E and the other owners of SONGS have insurance to cover claims from nuclear liability incidents arising at SONGS. Currently, this insurance provides $450 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides an additional $110 million of coverage. If a nuclear liability loss occurs at SONGS and exceeds the $450 million insurance limit, this additional coverage would be available to provide a total of $560 million in coverage limits per incident. The SONGS owners, including SDG&E, also maintain nuclear property damage insurance at $1.5 billion , with a $500 million property damage sublimit on the ISFSI, which exceeds the minimum federal requirements of $1.06 billion . This insurance coverage is provided through NEIL. The NEIL policies have specific exclusions and limitations that can result in reduced or eliminated coverage. Insured members as a group are subject to retrospective premium assessments to cover losses sustained by NEIL under all issued policies. SDG&E could be assessed up to $10.4 million of retrospective premiums based on overall member claims. The nuclear property insurance program includes an industry aggregate loss limit for non-certified acts of terrorism (as defined by the Terrorism Risk Insurance Act) of $3.24 billion |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES LEGAL PROCEEDINGS We accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to reasonably estimate the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued. At March 31, 2019 , loss contingency accruals for legal matters, including associated legal fees, that are probable and estimable were $ 104 million for Sempra Energy Consolidated, including $54 million for SoCalGas. Amounts for Sempra Energy and SoCalGas include $53 million for matters related to the Aliso Canyon natural gas storage facility gas leak, which we discuss below. SDG&E 2007 Wildfire Litigation and Net Cost Recovery Status SDG&E has resolved all civil litigation associated with three wildfires that occurred in October 2007. As a result of a CPUC decision denying SDG&E’s request to recover wildfire costs, SDG&E wrote off the wildfire regulatory asset, resulting in a charge of $351 million ( $208 million after-tax) in the third quarter of 2017. SDG&E continues to vigorously pursue recovery of these costs, which were incurred through settling claims brought under the doctrine of inverse condemnation. SDG&E applied to the CPUC for rehearing of its decision on January 2, 2018. On July 12, 2018, the CPUC adopted a decision denying the rehearing requests filed by SDG&E and other parties. On August 3, 2018, SDG&E filed an appeal with the California Court of Appeal seeking to reverse the CPUC’s decision. The filing also asked the court to direct the CPUC to award SDG&E recovery for payments made to settle inverse condemnation claims and limit any reasonableness review to the amounts of those payments. On November 13, 2018, the California Court of Appeal denied SDG&E’s petition. On November 26, 2018, SDG&E filed an appeal with the California Supreme Court seeking to reverse the decisions of the CPUC and the California Court of Appeal. In January 2019, the California Supreme Court denied SDG&E’s petition. On April 30, 2019, SDG&E filed an appeal with the U.S. Supreme Court seeking to reverse the CPUC’s decision. 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. 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. SoCalGas calculated that approximately 4.62 Bcf of natural gas was released from the Aliso Canyon natural gas storage facility as a result of the Leak. As discussed in “Cost Estimates and Accounting Impact” below, SoCalGas incurred significant costs for temporary relocation, to control the well and to stop the Leak, as well as to purchase natural gas to replace that lost through the Leak. As discussed in “Local Community Mitigation Efforts” below, during the Leak and in the months following the sealing of the well, SoCalGas provided support to nearby residents who wished to temporarily relocate as a result of the Leak. These programs ended in July 2016. SoCalGas has additionally incurred significant costs to defend against and, in certain cases settle, civil and criminal litigation arising from the Leak; to pay the costs of the government-ordered response to the Leak including the costs for an independent third party to conduct a root cause analysis to investigate the technical cause of the Leak; to respond to various government and agency investigations regarding the Leak, and to comply with increased regulation imposed as a result of the Leak. As further described below in “Civil and Criminal Litigation,” “Regulatory Proceedings” and “Governmental Investigations and Orders and Additional Regulation,” these activities are ongoing and SoCalGas anticipates that it will incur additional such costs, which may also be significant. Local Community Mitigation Efforts. Pursuant to a directive by the DPH and orders by the LA Superior Court, SoCalGas provided temporary relocation support to residents in the nearby community who requested it. Following the permanent sealing of the well, the DPH conducted testing in 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 those residents to return home. In May 2016, the DPH also issued a directive that SoCalGas additionally professionally clean 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 experienced symptoms from the Leak (the Directive). SoCalGas disputed the Directive as invalid and unenforceable, and filed a petition for writ of mandate to set aside the Directive. The Directive was settled and SoCalGas’ petition was dismissed pursuant to the Government Plaintiffs Settlement that we discuss below in “Civil and Criminal Litigation.” The costs incurred to remediate and stop the Leak and to mitigate local community impacts have been significant and may increase, and we may be subject to potentially significant damages, restitution, and civil, administrative and criminal fines, penalties and other costs. If any of these costs are not covered by insurance (including any costs in excess of applicable policy limits), if there are significant delays in receiving insurance recoveries, or if the insurance recoveries are subject to income taxes while the associated costs are not tax deductible, such amounts could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Civil and Criminal Litigation. As of May 2, 2019, 394 lawsuits, including approximately 48,500 plaintiffs, are pending against SoCalGas, some of which have also named Sempra Energy. All these cases, other than a matter brought by the Los Angeles County District Attorney and the federal securities class action discussed below, are coordinated before a single court in the LA Superior Court for pretrial management (the Coordination Proceeding). Pursuant to the Coordination Proceeding, in November 2017, the individuals and business entities asserting tort and Proposition 65 claims filed a Third Amended Consolidated Master Case Complaint for Individual Actions, through which their separate lawsuits will be managed for pretrial purposes. The consolidated complaint asserts causes of action for negligence, negligence per se, private and public nuisance (continuing and permanent), trespass, inverse condemnation, strict liability, negligent and intentional infliction of emotional distress, fraudulent concealment, loss of consortium, wrongful death and violations of Proposition 65 against SoCalGas, with certain causes 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 the 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. In December 2017, the California Court of Appeal, Second Appellate District ruled that the purely economic damages alleged in the Business Class Action are not recoverable under the law. In February 2018, the California Supreme Court granted a petition filed by the plaintiffs to review that ruling, and oral argument on the appeal was heard in March 2019. Complaints by property developers were filed in 2017 and 2018 against SoCalGas and Sempra Energy alleging causes of action for strict liability, negligence per se, negligence, continuing nuisance, permanent nuisance and violation of the California Unfair Competition Law, as well as claims for negligence against certain directors of SoCalGas. The complaints seek compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees. These claims are also joined in the Coordination Proceeding. In addition to the lawsuits described above, in October 2018 and January 2019, complaints were filed on behalf of 51 plaintiffs who are firefighters stationed near the Aliso Canyon natural gas storage facility and allege they were injured by exposure to chemicals released during the Leak. The complaints against SoCalGas and Sempra Energy assert causes of actions for negligence, negligence per se, private and public nuisance (continuing and permanent), trespass, inverse condemnation, strict liability, negligent and intentional infliction of emotional distress, fraudulent concealment and loss of consortium. The complaints seek compensatory and punitive damages for personal injuries, lost wages and/or lost profits, property damage and diminution in property value, and attorney’s fees. These claims are also joined in the Coordination Proceeding. In addition, 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 . In March 2018, the court dismissed the action with prejudice, and in December 2018 the court denied the plaintiffs’ request for reconsideration of that order. The plaintiffs have filed a notice of appeal of the dismissal. Five shareholder derivative actions are also pending in the Coordination Proceeding alleging breach of fiduciary duties against certain officers and certain directors of Sempra Energy and/or SoCalGas, four of which were joined in a Consolidated Shareholder Derivative Complaint in August 2017. Three actions by public entities were filed in the Coordination Proceeding, including complaints by the County of Los Angeles, on behalf of itself and the people of the State of California, the California Attorney General, acting in an independent capacity and on behalf of the people of the State of California and the CARB, and the Los Angeles City Attorney alleging public nuisance, unfair competition, and violations of California Health and Safety Code provisions regarding discharge of contaminants, among other things, which sought injunctive relief, abatement, civil penalties and damages. Additionally, the County of Los Angeles filed a petition against DOGGR and its State Oil and Gas Supervisor and the CPUC and its Executive Director, as to which SoCalGas is the real party in interest, alleging that they failed to comply with the provisions of SB 380 in authorizing the resumption of injections of natural gas at the Aliso Canyon natural gas storage facility, and seeking a writ of mandate requiring DOGGR and the State Oil and Gas Supervisor to comply with SB 380 and CEQA, as well as declaratory and injunctive relief against any authorization to inject natural gas and attorneys’ fees. In August 2018, SoCalGas entered into a settlement agreement with the Los Angeles City Attorney’s Office, the County of Los Angeles, the California Office of the Attorney General and CARB (collectively, the Government Plaintiffs) to settle the three public entity actions and the Directive for payments and funding for environmental projects totaling $120 million , including $21 million in civil penalties (the Government Plaintiffs Settlement). Under the settlement agreement, SoCalGas also agreed to continue its fence-line methane monitoring program, establish a safety committee and hire an independent ombudsman to monitor and report on the safety at the facility. This settlement also fully resolves SoCalGas’ commitment to mitigate the actual natural gas released during the Leak and fulfills the requirements of the Governor’s Order, described below, for SoCalGas to pay for a mitigation program developed by CARB. The Government Plaintiffs Settlement was approved by the LA Superior Court in February 2019. 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. Pursuant to a settlement agreement with the Los Angeles County District Attorney’s Office, SoCalGas 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 $6 million , reimbursements 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 (the District Attorney Settlement). In November 2016, SoCalGas completed the commitments and obligations under the District Attorney Settlement, and on November 29, 2016, the LA Superior Court approved the settlement and entered judgment on the notice charge. Certain individuals who object to the settlement have filed an appeal of the judgment, contending they should be granted restitution. The costs of defending against these civil and criminal lawsuits, and any damages, restitution, and civil, administrative and criminal fines, penalties and other costs, if awarded or imposed, as well as the costs of mitigating the actual natural gas released, could be significant. If any of these costs are not covered by insurance (including any costs in excess of applicable policy limits), if there are significant delays in receiving insurance recoveries, or if the insurance recoveries are subject to income taxes while the associated costs are not tax deductible, such amounts 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 CPUC indicated it intends to conduct the proceeding 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 using those analyses and scenarios to evaluate the impacts of reducing or eliminating the use of the Aliso Canyon natural gas storage facility. 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 Leak. In January 2019, the CPUC concluded Phase 1 of the proceeding by establishing a framework for the hydraulic, production cost and economic modeling assumptions for the potential reduction in usage or elimination of the Aliso Canyon natural gas storage facility. Phase 2 of the proceeding, which will evaluate the impacts of reducing or eliminating the Aliso Canyon natural gas storage facility using the established framework and models, began in the first quarter of 2019. The CPUC has indicated that it expects to issue its report in 2020. Governmental Investigations and Orders and Additional Regulation. Various governmental agencies, including DOE, 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. In January 2016, DOGGR and the CPUC selected Blade Energy Partners to conduct, under their supervision, an independent analysis of the technical root cause of the Leak, to be funded by SoCalGas. The independent root cause analysis is ongoing, and its timing is under the control of Blade Energy Partners, DOGGR and the CPUC. We expect the report will be issued in the second quarter of 2019. In January 2016, the Governor of the State of California proclaimed a state of emergency in Los Angeles County due to the Leak. The proclamation ordered various actions with respect to the Leak, including: (1) applicable agencies must convene an independent panel of scientific and medical experts to review public health concerns stemming from the Leak and evaluate whether additional measures are needed to protect public health; (2) the CPUC must ensure that SoCalGas covers costs related to the Leak and its response while protecting ratepayers; (3) CARB must develop a program, to be funded by SoCalGas, to fully mitigate the Leak’s emissions of methane; and (4) 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 March 2016, CARB issued its “Aliso Canyon Methane Leak Climate Impacts Mitigation Program” recommending a program to fully mitigate the emissions from the Leak. In October 2016, CARB issued a report concluding that SoCalGas should mitigate 109,000 metric tons of methane to fully mitigate the GHG impacts of the Leak. The Government Plaintiffs Settlement described above satisfies the mitigation requirement of the Governor’s emergency proclamation. Cost Estimates and Accounting Impact. At March 31, 2019 , SoCalGas estimates its costs related to the Leak are $1,071 million (the cost estimate), which includes $1,043 million of costs recovered or probable of recovery from insurance. Approximately 53 percent of the cost estimate is for the temporary relocation program (including cleaning costs and certain labor costs). The remaining portion of the cost estimate includes costs incurred to defend litigation, the costs of the government-ordered response to the Leak including the costs for an independent third party to conduct a root cause analysis, efforts to control the well, to mitigate the actual natural gas released, the cost of replacing the lost gas, and other costs, as well as the estimated costs to settle certain actions. SoCalGas adjusts the cost estimate as additional information becomes available. A substantial portion of the cost estimate has been paid, and $60 million is accrued as Reserve for Aliso Canyon Costs as of March 31, 2019 on SoCalGas’ and Sempra Energy’s Condensed Consolidated Balance Sheets. As of March 31, 2019 , we recorded the expected recovery of the cost estimate related to the Leak of $477 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 $566 million of insurance proceeds we received through March 31, 2019 . The Insurance Receivable for Aliso Canyon Costs and insurance proceeds received to date relate to portions of the cost estimate described above, including temporary relocation and associated processing costs, control-of-well expenses, costs of the government-ordered response for an independent third party to conduct a root cause analysis, the costs to settle certain claims as described above , the estimated costs to perform obligations pursuant to settlement of some of those claims, legal costs and lost gas. If we were to conclude that this receivable or a portion of it is no longer probable of recovery from insurers, some or all of this receivable would be charged against earnings, which could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. As described in “Civil and Criminal Litigation” above , the actions seek compensatory, statutory and punitive damages, restitution, and civil, administrative and criminal fines, penalties and other costs, which, except for the amounts paid or estimated to settle certain actions as described above , are not included in the cost estimate as it is not possible at this time to predict the outcome of these actions or reasonably estimate the amount of damages, restitution or civil, administrative or criminal fines, penalties or other costs that may be imposed. The recorded amounts above also do not include future legal costs necessary to defend litigation, and other potential costs that we currently do not anticipate incurring or that we cannot reasonably estimate. Furthermore, the cost estimate does not include certain other costs incurred by Sempra Energy associated with defending against shareholder derivative lawsuits. Insurance. Excluding directors’ and officers’ liability insurance, we have at least four kinds of insurance policies that together we estimate 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 and associated processing costs (including cleaning costs and certain labor costs), costs to address the Leak and stop or reduce emissions, costs of the government-ordered response to the Leak including the costs for an independent third party to conduct a root cause analysis, the value of lost 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 portions of the costs described above, including temporary relocation and associated processing costs, control-of-well expenses, legal costs and lost gas. 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 additional insurance recovery for these costs, 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. At March 31, 2019 , SoCalGas’ estimate of costs related to the Leak of $1,071 million include $1,043 million of costs recovered or probable of recovery from insurance. This estimate may rise significantly as more information becomes available. Costs not included in the $1,071 million cost estimate could be material. If any costs are not covered by insurance (including any costs in excess of applicable policy limits), if there are significant delays in receiving insurance recoveries, or if the insurance recoveries are subject to income taxes while the associated costs are not tax deductible, such amounts could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Natural Gas Storage Operations and Reliability. Natural gas withdrawn from storage is important for service reliability during peak demand periods, including peak electric generation needs in the summer and heating needs in the winter. The Aliso Canyon natural gas storage facility, with a capacity of 86 Bcf (representing 63 percent of SoCalGas’ natural gas storage capacity), is the largest SoCalGas storage facility and an important element of SoCalGas’ delivery system. As a result of the Leak, SoCalGas suspended injection of natural gas into the Aliso Canyon natural gas storage facility beginning in October 2015, and following a comprehensive safety review and authorization by DOGGR and the CPUC’s Executive Director, resumed limited injection operations in July 2017. During the suspension period, SoCalGas advised the California ISO, CEC, CPUC and PHMSA of its concerns that the inability to inject natural gas into the Aliso Canyon natural gas storage facility posed a risk to energy reliability in Southern California. Following the resumption of injection operations, the CPUC has issued a series of directives to SoCalGas specifying the range of working gas to be maintained in the Aliso Canyon natural gas storage facility to help ensure safety and reliability for the region and just and reasonable rates in California, the most recent of which, issued in July 2018, directed SoCalGas to maintain up to 34 Bcf of working gas. Limited withdrawals of natural gas from the facility were made in 2018 and 2019 to augment natural gas supplies during critical demand periods. If the Aliso Canyon natural gas storage facility were to be permanently closed, or if future cash flows were otherwise insufficient to recover its carrying value, it could result in an impairment of the facility and significantly higher than expected operating costs and/or additional capital expenditures, and natural gas reliability and electric generation could be jeopardized. At March 31, 2019 , the Aliso Canyon natural gas storage facility had a net book value of $741 million . Any significant impairment of this asset could have a material adverse effect on SoCalGas’ and Sempra Energy’s results of operations for the period in which it is recorded. Higher operating costs and additional capital expenditures incurred by SoCalGas may not be recoverable in customer rates, and could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Sempra Mexico Property Disputes and Permit Challenges Energía Costa Azul. IEnova has been engaged in a long-running land dispute relating to property adjacent to its ECA LNG terminal near Ensenada, Mexico. A claimant to the adjacent property filed complaints in the federal Agrarian Court challenging the refusal of SEDATU in 2006 to issue a title to him for the disputed property. In November 2013, the federal Agrarian Court ordered that SEDATU issue the requested title and cause it to be registered. Both SEDATU and IEnova challenged the ruling, due to lack of notification of the underlying process. Both challenges are pending to be resolved by a Federal Court in Mexico. IEnova expects additional proceedings regarding the claims. Several administrative challenges are pending in Mexico before the Mexican environmental protection agency and the Federal Tax and Administrative Courts seeking revocation of the environmental impact authorization issued to ECA in 2003. These cases generally allege that the conditions and mitigation measures in the environmental impact authorization are inadequate and challenge findings that the activities of the terminal are consistent with regional development guidelines. Additionally, in August 2018, a claimant filed a challenge in the federal district court in Ensenada, Baja California in relation to the environmental and social impact permits issued to ECA in September 2017 and December 2017, respectively, to allow natural gas liquefaction activities at the ECA LNG terminal. The court issued a provisional injunction on September 28, 2018 and maintained that provisional injunction at an April 11, 2019 hearing. The provisional injunction has uncertain application and requires clarification by the court, which is being pursued through additional proceedings that are pending before the court. In December 2018, the relevant Mexican regulators approved modifications to the environmental permit that facilitate the development of the proposed natural gas liquefaction facility at the ECA LNG terminal in two phases. Cases involving t wo parcels of real property have been filed against ECA. In one case, filed in the federal Agrarian Court in 2006, the plaintiffs seek to annul the recorded property title for a parcel on which the ECA LNG terminal is situated and to obtain possession of a different parcel that allegedly sits in the same place. Another civil complaint filed in the state court was served in April 2012 seeking to invalidate the contract by which ECA purchased another of the terminal parcels, on the grounds the purchase price was unfair; the plaintiff filed a second complaint in 2013 in the federal Agrarian Court seeking an order that SEDATU issue title to her. In January 2016, the federal Agrarian Court ruled against the plaintiff, and the plaintiff appealed the ruling. In May 2018, the state court dismissed the civil complaint, and the plaintiff has appealed. IEnova expects further proceedings on these two matters. An unfavorable final decision on these property disputes or permit challenges could materially and adversely affect our planned natural gas liquefaction projects currently in development at ECA. Guaymas-El Oro Segment of the Sonora Pipeline. IEnova’s Sonora natural gas pipeline consists of two segments, the Sasabe-Puerto Libertad-Guaymas segment, and the Guaymas-El Oro segment. Each segment has its own service agreement with the CFE. In 2015, the Yaqui tribe, with the exception of some members living in the Bácum community, granted its consent and a right-of-way easement agreement for the construction of the Guaymas-El Oro segment of the Sonora natural gas pipeline that crosses its territory. Representatives of the Bácum community filed a legal challenge in Mexican Federal Court demanding the right to withhold consent for the project, the stoppage of work in the Yaqui territory and damages. In 2016, the judge granted a suspension order that prohibited the construction of such segment through the Bácum community territory. Because the pipeline does not pass through the Bácum community, IEnova did not believe the 2016 suspension order prohibited construction in the remainder of the Yaqui territory. Construction of the Guaymas-El Oro segment was completed, and commercial operations began in May 2017. Following the start of commercial operations of the Guaymas-El Oro segment, an appellate court ruled that the scope of the 2016 suspension order encompassed the wider Yaqui territory. The legal challenge remains pending. IEnova has subsequently reported damage to the Guaymas-El Oro segment of the Sonora pipeline in the Yaqui territory that has made that section inoperable since August 23, 2017 and, as a result, declared a force majeure event. IEnova will continue to exercise its rights under the contract, which includes seeking continued force majeure payments for the two-year period such force majeure payments are required |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION At March 31, 2019 , we had 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 Texas Utility holds our investment in Oncor Holdings, which owns an 80.25 -percent interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern and western parts of Texas. ▪ Sempra Mexico develops, owns and operates, or holds interests in, natural gas, electric, LNG, LPG, ethane and liquid fuels infrastructure, and has marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico. ▪ Sempra Renewables develops, owns and operates, or holds interests in, wind power generation facilities serving wholesale electricity markets in the U.S. In December 2018, Sempra Renewables completed the sale of all its operating solar assets, solar and battery storage development projects and one wind generation facility. In April 2019, Sempra Renewables completed the sale of its remaining wind assets and investments. Upon completion of this sale, remaining nominal business activities at Sempra Renewables were subsumed into Parent and other and the Sempra Renewables segment ceased to exist. ▪ Sempra LNG (previously known as Sempra LNG & Midstream) develops, owns and operates, or holds interests in, terminals for the import and export of LNG and sale of natural gas, natural gas pipelines and marketing operations, all within the U.S. and Mexico. In February 2019, we completed the sale of our natural gas storage assets at Mississippi Hub and Bay Gas. As we discuss in Note 5, the financial information related to our businesses that constituted the Sempra South American Utilities segment has been reclassified to discontinued operations for all periods presented. The information in the tables below excludes amounts from discontinued operations unless otherwise noted. We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings and cash flows. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. 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. The cost of common services shared by the business segments is assigned directly or allocated based on various cost factors, depending on the nature of the service provided. Interest income and expense is recorded on intercompany loans. The loan balances and related interest are eliminated in consolidation. The following tables show selected information by segment from our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as “All other” in the following tables consist primarily of activities of parent organizations, and include certain nominal amounts from our South American businesses that did not qualify for treatment as discontinued operations. SEGMENT INFORMATION (Dollars in millions) Three months ended March 31, 2019 2018 REVENUES SDG&E $ 1,145 $ 1,055 SoCalGas 1,361 1,126 Sempra Mexico 383 308 Sempra Renewables 7 25 Sempra LNG 141 104 Adjustments and eliminations — (1 ) Intersegment revenues (1) (139 ) (81 ) Total $ 2,898 $ 2,536 INTEREST EXPENSE SDG&E $ 103 $ 52 SoCalGas 34 27 Sempra Mexico 30 30 Sempra Renewables 3 5 Sempra LNG 4 8 All other 109 112 Intercompany eliminations (23 ) (28 ) Total $ 260 $ 206 INTEREST INCOME SDG&E $ 1 $ 1 Sempra Mexico 19 15 Sempra Renewables 10 2 Sempra LNG 14 13 All other 1 16 Intercompany eliminations (24 ) (18 ) Total $ 21 $ 29 DEPRECIATION AND AMORTIZATION SDG&E $ 186 $ 166 SoCalGas 147 135 Sempra Mexico 44 43 Sempra Renewables — 13 Sempra LNG 2 11 All other 4 4 Total $ 383 $ 372 INCOME TAX EXPENSE (BENEFIT) SDG&E $ 5 $ 56 SoCalGas 19 59 Sempra Mexico 72 155 Sempra Renewables (10 ) (7 ) Sempra LNG 4 12 All other (48 ) (33 ) Total $ 42 $ 242 EQUITY EARNINGS (LOSSES) Equity earnings before income tax: Sempra Renewables $ 3 $ 5 Sempra LNG 2 — 5 5 Equity earnings (losses) net of income tax: Sempra Texas Utility 94 15 Sempra Mexico 2 (41 ) 96 (26 ) Total $ 101 $ (21 ) SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Three months ended March 31, 2019 2018 EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES SDG&E $ 176 $ 170 SoCalGas 264 225 Sempra Texas Utility 94 15 Sempra Mexico 57 20 Sempra Renewables 13 21 Sempra LNG 5 (16 ) Discontinued operations (51 ) 21 All other (117 ) (109 ) Total $ 441 $ 347 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 356 $ 475 SoCalGas 324 403 Sempra Mexico 85 59 Sempra Renewables — 31 Sempra LNG 18 6 All other — 5 Total $ 783 $ 979 March 31, 2019 December 31, 2018 ASSETS SDG&E $ 19,558 $ 19,225 SoCalGas 15,904 15,389 Sempra Texas Utility 9,748 9,652 Sempra Mexico 9,382 9,165 Sempra Renewables 1,310 2,549 Sempra LNG 3,731 4,060 Discontinued operations 3,845 3,718 All other 1,135 1,070 Intersegment receivables (2,995 ) (4,190 ) Total $ 61,618 $ 60,638 EQUITY METHOD AND OTHER INVESTMENTS Sempra Texas Utility $ 9,748 $ 9,652 Sempra Mexico 737 747 Sempra Renewables 290 291 Sempra LNG 1,255 1,271 All other 8 11 Total $ 12,038 $ 11,972 (1) Revenues for reportable segments include intersegment revenues of $1 million , $17 million , $28 million and $93 million for the three months ended March 31, 2019 and $1 million , $17 million , $29 million and $34 million for the three months ended March 31, 2018 |
GENERAL INFORMATION AND OTHER_2
GENERAL INFORMATION AND OTHER FINANCIAL DATA (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION Sempra Energy Sempra Energy’s Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based Fortune 500 energy-services holding company, and its consolidated subsidiaries and VIEs. Sempra Global is the holding company for most of our subsidiaries that are not subject to California or Texas utility regulation. Sempra Energy’s businesses are managed within six separate reportable segments, which we discuss in Note 12. In the first quarter of 2019, our Sempra LNG & Midstream segment was renamed “Sempra LNG.” This segment name change had no impact on our historical position, results of operations, cash flow or segment level results previously reported. All references in these Notes to our reportable segments are not intended to refer to any legal entity with the same or similar name. SDG&E SDG&E’s Condensed Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E is the primary beneficiary, as we discuss below in “Variable Interest Entities.” SDG&E’s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. SoCalGas SoCalGas’ common stock is wholly owned by Pacific Enterprises, which is a wholly owned subsidiary of Sempra Energy. |
Basis of Presentation | 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 March 31, 2019 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, 2018 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2018 Consolidated Financial Statements in the Annual Report, which for Sempra Energy has been retrospectively adjusted for discontinued operations, as we discuss below. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the interim-period-reporting provisions of U.S. GAAP and the SEC. We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report and the impact of the adoption of new accounting standards on those policies in Note 2 below. We follow the same accounting policies for interim reporting purposes. |
Discontinued Operations | Discontinued OperationsOn January 25, 2019, our board of directors approved a plan to sell our South American businesses based on our strategic focus on North America. We determined that these businesses, which previously constituted the Sempra South American Utilities segment, and certain activities associated with these businesses, met the held-for-sale criteria. These businesses are presented as discontinued operations, as the planned sale represents a strategic shift that will have a major effect on our operations and financial results. Throughout this report, the financial information for all periods presented has been adjusted to reflect the presentation of these businesses as discontinued operations, which we discuss further in Note 5. Our discussions in the Notes below relate only to our continuing operations unless otherwise noted. |
Variable Interest Entity Policy | VARIABLE INTEREST ENTITIES We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based on qualitative and quantitative analyses, which assess: ▪ the purpose and design of the VIE; ▪ the nature of the VIE’s risks and the risks we absorb; ▪ the power to direct activities that most significantly impact the economic performance of the VIE; and ▪ the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. |
Earnings Per Share Policy | Basic EPS is calculated by dividing earnings attributable to common shares (from both continuing and discontinued operations) by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.The potentially dilutive impact from the forward sale of our common stock pursuant to the forward sale agreements that we entered into in 2018 is reflected in our diluted EPS calculation using the treasury stock method. We anticipate there will be a dilutive effect on our EPS when the average market price of shares of our common stock is above the applicable adjusted forward sale price, subject to increase or decrease based on the overnight bank funding rate, less a spread, and subject to decrease by amounts related to expected dividends on shares of our common stock during the term of the forward sale agreements. Additionally, if we decide to physically settle or net share settle the forward sale agreements, delivery of our shares to the forward purchasers on any such physical settlement or net share settlement of the forward sale agreements would result in dilution to our EPS. |
Interim period effective tax rate policy | Sempra Energy, SDG&E and SoCalGas record income taxes for interim periods utilizing a forecasted ETR anticipated for the full year. Unusual and infrequent items and items that cannot be reliably estimated are recorded in the interim period in which they occur, which can result in variability in the ETR. |
Flow-through rate-making treatment tax policy | For SDG&E and SoCalGas, the CPUC requires flow-through rate-making treatment for the current income tax benefit or expense arising from certain property-related and other temporary differences between the treatment for financial reporting and income tax, which will reverse over time. Under the regulatory accounting treatment required for these flow-through temporary differences, deferred income tax assets and liabilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which impacts the ETR. As a result, changes in the relative size of these items compared to pretax income, from period to period, can cause variations in the ETR. The following items are subject to flow-through treatment: ▪ repairs expenditures related to a certain portion of utility plant fixed assets; ▪ the equity portion of AFUDC, which is non-taxable; ▪ a portion of the cost of removal of utility plant assets; ▪ utility self-developed software expenditures; ▪ depreciation on a certain portion of utility plant assets; and ▪ state income taxes. |
New Accounting Standards | NEW ACCOUNTING STANDARDS We describe below recent accounting pronouncements that have had or may have a significant effect on our financial condition, results of operations, cash flows or disclosures. ASU 2016-02, “Leases,” ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842,” ASU 2018-10, “Codification Improvements to Topic 842, Leases,” ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” ASU 2018-20, “Narrow-Scope Improvements for Lessors” and ASU 2019-01, “Leases (Topic 842): Codification Improvements” (collectively referred to as the “lease standard”): In 2016, the FASB began issuing the first in a series of ASUs intended to increase transparency and comparability among organizations with leasing activities. The most significant provision of the lease standard is the requirement that lessees recognize operating lease ROU assets and lease liabilities on the balance sheet. We adopted the lease standard on January 1, 2019, using the optional transition method to apply the new guidance prospectively as of January 1, 2019, rather than as of the earliest period presented. We elected the package of practical expedients that permits us to not reassess (a) whether a contract is or contains a lease, (b) lease classification or (c) determination of initial direct costs, which allows us to carry forward accounting conclusions under previous U.S. GAAP on contracts that commenced prior to adoption of the lease standard. We also elected the land easement practical expedient, which allows us to continue to account for pre-existing land easements under our accounting policy that existed before adoption of the lease standard. We did not elect the practical expedient to use hindsight in making judgments when determining the lease term. The adoption of the lease standard did not change our previously reported financial statements. However, in accordance with the lease standard, on a prospective basis, a significant portion of finance lease costs for PPAs that have historically been presented in Cost of Electric Fuel and Purchased Power are now presented in Depreciation and Amortization Expense and Interest Expense on Sempra Energy’s and SDG&E’s statements of operations. Additionally, the adoption of the lease standard had a material impact on our balance sheets at January 1, 2019 due to the initial recognition of ROU assets and lease liabilities for operating leases. Our finance leases were already included on our balance sheets prior to adoption of the lease standard, consistent with previous U.S. GAAP for capital leases. The following table shows the initial (decreases) increases on our balance sheets at January 1, 2019 from adoption of the lease standard. IMPACT FROM ADOPTION OF THE LEASE STANDARD (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Assets held for sale $ 13 $ — $ — Sundry (71 ) — — Property, plant and equipment, net (147 ) — — Right-of-use assets – operating leases 603 130 116 Deferred income tax assets (3 ) — — Other current liabilities 80 20 23 Long-term debt (138 ) — — Deferred credits and other 436 110 93 Retained earnings 17 — — As a result of the adoption of the lease standard, we derecognized our corporate headquarters building lease in accordance with the transition provisions for build-to-suit arrangements. On a prospective basis, we will account for the corporate headquarters building lease as an operating lease. The initial impact is included in the above table. We include additional disclosures about our leases in Note 11. 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, including interim periods therein, with early adoption permitted for fiscal years beginning after December 15, 2018. The amendments are to be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings at the beginning of the first reporting period in the year of adoption. We are currently evaluating the impact of the standard on our ongoing financial reporting and plan to adopt the standard on January 1, 2020. 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 plan to adopt the standard on January 1, 2020. ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”: ASU 2018-02 contains amendments that allow a reclassification from AOCI to retained earnings for stranded tax effects resulting from the TCJA. Under ASU 2018-02, an entity is required to provide certain disclosures regarding stranded tax effects, including its accounting policy related to releasing the income tax effects from AOCI. The amendments in this update can be applied either as of the beginning of the period of adoption or retrospectively as of the date of enactment of the TCJA and to each period in which the effect of the TCJA is recognized. We adopted ASU 2018-02 on January 1, 2019 and reclassified the income tax effects of the TCJA from AOCI to retained earnings. The impact from adoption of ASU 2018-02 on January 1, 2019 was as follows: ▪ Sempra Energy: increase of $40 million to beginning Retained Earnings, $2 million to noncurrent Regulatory Liabilities and $42 million to Accumulated Other Comprehensive Loss; ▪ SDG&E: increase of $2 million to beginning Retained Earnings and Accumulated Other Comprehensive Loss; and ▪ SoCalGas: increase of $2 million to beginning Retained Earnings, $2 million to noncurrent Regulatory Liabilities and $4 million |
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 OCI (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the principal settlements of cross-currency swaps that hedge exposure related to Mexican peso-denominated debt as financing activities and settlements of other derivative instruments as operating activities on the Condensed Consolidated Statements of Cash Flows. HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated cash flows associated with revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that the future cash flows of a given revenue or expense item may vary, and other criteria. ENERGY DERIVATIVES Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business, as follows: ▪ The California Utilities use natural gas and electricity derivatives, for the benefit of customers, with the objective of managing price risk and basis risks, and stabilizing and lowering natural gas and electricity costs. These derivatives include fixed price natural gas and electricity positions, options, and basis risk instruments, which are either exchange-traded or over-the-counter financial instruments, or bilateral physical transactions. This activity is governed by risk management and transacting activity plans that have been filed with and approved by the CPUC. Natural gas and electricity derivative activities are recorded as commodity costs that are offset by regulatory account balances and are recovered in rates. Net commodity cost impacts on the Condensed Consolidated Statements of Operations are reflected in Cost of Electric Fuel and Purchased Power or in Cost of Natural Gas. ▪ SDG&E is allocated and may purchase CRRs, which serve to reduce the regional electricity price volatility risk that may result from local transmission capacity constraints. Unrealized gains and losses do not impact earnings, as they are offset by regulatory account balances. Realized gains and losses associated with CRRs, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. ▪ Sempra Mexico, Sempra LNG 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 Sales on the Condensed Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. Sempra Mexico may also use natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its distribution operations. These derivatives, which are recorded as commodity costs that are offset by regulatory account balances and recovered in rates, are recognized in Cost of Natural Gas on the Condensed Consolidated Statements of Operations. ▪ From time to time, our various businesses, including the California Utilities, may use other energy derivatives to hedge exposures such as the price of vehicle fuel and GHG allowances. INTEREST RATE DERIVATIVES We utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and JVs. These cash flow hedges exchange our Mexican peso-denominated principal and interest payments into the U.S. dollar and swap Mexican variable interest rates for U.S. fixed interest rates. From time to time, Sempra Mexico and its JVs may use other foreign currency derivatives to hedge exposures related to cash flows associated with revenues from contracts denominated in Mexican pesos that are indexed to the U.S. dollar. We are also exposed to exchange rate movements at our Mexican subsidiaries and JVs, which have U.S. dollar-denominated cash balances, receivables, payables and debt (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. They also have deferred income tax assets and liabilities denominated in the Mexican peso, which must be translated to U.S. dollars for financial reporting purposes. In addition, monetary assets and liabilities and certain nonmonetary assets and liabilities are adjusted for Mexican inflation for Mexican income tax purposes. We utilize foreign currency derivatives as a means to manage the risk of exposure to significant fluctuations in our income tax expense and equity earnings from these impacts; however, we generally do not hedge our deferred income tax assets and liabilities or for inflation. |
Fair Value Measurement Policy | The impact associated with discounting is negligible. Because these auction prices are a less observable input, these instruments are classified as Level 3. The fair value of these instruments is derived from auction price differences between two locations. Positive values between two locations represent expected future reductions in congestion costs, whereas negative values between two locations represent expected future charges. Valuation of our CRRs is sensitive to a change in auction price. If auction prices at one location increase (decrease) relative to another location, this could result in a higher (lower) fair value measurement. We summarize CRR volumes in Note 8.Long-term, fixed-price electricity positions that are valued using significant unobservable data are classified as Level 3 because the contract terms relate to a delivery location or tenor for which observable market rate information is not available. The fair value of the net electricity positions classified as Level 3 is derived from a discounted cash flow model using market electricity forward price inputs.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 8. Realized gains and losses associated with CRRs and long-term electricity positions, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Because unrealized gains and losses are recorded as regulatory assets and liabilities, they do not affect earnings. Fair Value of Financial Instruments We have not changed the valuation techniques or types of inputs we use to measure recurring fair value since December 31, 2018. The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 8 under “Financial Statement Presentation.” The determination of fair values, shown in the tables below, incorporates various factors, including but not limited to, the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests). Our financial assets and liabilities that were accounted for at fair value on a recurring basis in the tables below include the following (other than a $7 million investment at March 31, 2019 measured at net asset value): ▪ Nuclear decommissioning trusts reflect the assets of SDG&E’s NDT, excluding cash balances. A third party trustee values the trust assets using prices from a pricing service based on a market approach. We validate these prices by comparison to prices from other independent data sources. Securities are valued using quoted prices listed on nationally recognized securities exchanges or based on closing prices reported in the active market in which the identical security is traded (Level 1). Other securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2). ▪ For commodity contracts, interest rate derivatives and foreign exchange instruments, we primarily use a market or income approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs and long-term, fixed-price electricity positions at SDG&E, as we discuss below in “Level 3 Information.” ▪ Rabbi Trust investments include marketable securities that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1). These investments in marketable securities were negligible at both March 31, 2019 and December 31, 2018 |
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 reasonably estimate the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued. |
Gains and Losses on NDTs | Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. |
Lessee, Leases Policy | Certain of our contracts are short-term leases, which have a lease term of 12 months For our operating leases, our non-regulated entities recognize a single lease cost on a straight-line basis over the lease term in operating expenses. The California Utilities recognize this single lease cost on a basis that is consistent with the recovery of such costs in accordance with U.S. GAAP governing rate-regulated operations. |
Lessor, Leases Policy | Generally, we recognize operating lease income on a straight-line basis over the lease term and evaluate the underlying asset for impairment. Certain of our leases contain rate adjustments or are based on foreign currency exchange rates that may result in lease payments received that vary from one period to the next. |
Segment Information | At March 31, 2019 , we had 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 Texas Utility holds our investment in Oncor Holdings, which owns an 80.25 -percent interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern and western parts of Texas. ▪ Sempra Mexico develops, owns and operates, or holds interests in, natural gas, electric, LNG, LPG, ethane and liquid fuels infrastructure, and has marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico. ▪ Sempra Renewables develops, owns and operates, or holds interests in, wind power generation facilities serving wholesale electricity markets in the U.S. In December 2018, Sempra Renewables completed the sale of all its operating solar assets, solar and battery storage development projects and one wind generation facility. In April 2019, Sempra Renewables completed the sale of its remaining wind assets and investments. Upon completion of this sale, remaining nominal business activities at Sempra Renewables were subsumed into Parent and other and the Sempra Renewables segment ceased to exist. ▪ Sempra LNG (previously known as Sempra LNG & Midstream) develops, owns and operates, or holds interests in, terminals for the import and export of LNG and sale of natural gas, natural gas pipelines and marketing operations, all within the U.S. and Mexico. In February 2019, we completed the sale of our natural gas storage assets at Mississippi Hub and Bay Gas. As we discuss in Note 5, the financial information related to our businesses that constituted the Sempra South American Utilities segment has been reclassified to discontinued operations for all periods presented. The information in the tables below excludes amounts from discontinued operations unless otherwise noted. We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings and cash flows. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. 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. |
GENERAL INFORMATION AND OTHER_3
GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Condensed Consolidated Balance Sheets to the sum of such amounts reported on the Condensed Consolidated Statements of Cash Flows. We provide information about the nature of restricted cash in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Dollars in millions) March 31, December 31, 2019 2018 Sempra Energy Consolidated: Cash and cash equivalents $ 78 $ 102 Restricted cash, current 41 35 Restricted cash, noncurrent 21 21 Cash, cash equivalents and restricted cash in discontinued operations 67 88 Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows $ 207 $ 246 SDG&E: Cash and cash equivalents $ 10 $ 8 Restricted cash, current 21 11 Restricted cash, noncurrent 18 18 Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows $ 49 $ 37 |
Inventory Table | The following table presents the components of inventories by segment. INVENTORY BALANCES (Dollars in millions) Natural gas LNG Materials and supplies Total March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 SDG&E $ — $ — $ — $ — $ 99 $ 102 $ 99 $ 102 SoCalGas 12 92 — — 46 42 58 134 Sempra Mexico — — 7 4 16 15 23 19 Sempra LNG 9 3 — — — — 9 3 Sempra Energy Consolidated $ 21 $ 95 $ 7 $ 4 $ 161 $ 159 $ 189 $ 258 |
Capitalized Financing Costs Table | The table below summarizes capitalized interest and AFUDC. CAPITALIZED FINANCING COSTS (Dollars in millions) Three months ended March 31, 2019 2018 Sempra Energy Consolidated $ 47 $ 49 SDG&E 17 24 SoCalGas 11 13 |
Variable Interest Entity Table | Sempra Energy’s Condensed Consolidated Statements of Operations include the following amounts associated with the tax equity limited liability companies, net of eliminations of transactions between Sempra Energy and these entities. AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS (Dollars in millions) Three months ended March 31, 2019 2018 REVENUES Energy-related businesses $ 6 $ 17 EXPENSES Operation and maintenance (2 ) (4 ) Depreciation and amortization (3 ) (11 ) Income before income taxes 1 2 Income tax benefit (expense) 1 (5 ) Net income (loss) 2 (3 ) (Earnings) losses attributable to noncontrolling interests (1) (3 ) 21 (Losses) earnings attributable to common shares $ (1 ) $ 18 (1) AMOUNTS ASSOCIATED WITH OTAY MESA VIE (Dollars in millions) Three months ended March 31, 2019 2018 Operating expenses Cost of electric fuel and purchased power $ (16 ) $ (16 ) Operation and maintenance 4 4 Depreciation and amortization 7 8 Total operating expenses (5 ) (4 ) Operating income 5 4 Interest expense (4 ) (5 ) Income (losses) before income taxes/Net income (loss) 1 (1 ) (Earnings) losses attributable to noncontrolling interest (1 ) 1 Earnings attributable to common shares $ — $ — |
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 March 31, 2019 2018 2019 2018 Service cost $ 27 $ 33 $ 4 $ 6 Interest cost 35 35 9 9 Expected return on assets (36 ) (42 ) (18 ) (18 ) Amortization of: Prior service cost 3 3 — — Actuarial loss (gain) 14 9 (2 ) (1 ) Settlement charges — 14 — — Net periodic benefit cost (credit) 43 52 (7 ) (4 ) Regulatory adjustment (36 ) (45 ) 7 4 Total expense recognized $ 7 $ 7 $ — $ — NET PERIODIC BENEFIT COST – SDG&E (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2019 2018 2019 2018 Service cost $ 8 $ 8 $ 1 $ 1 Interest cost 9 9 2 2 Expected return on assets (11 ) (13 ) (3 ) (3 ) Amortization of: Prior service cost 1 — 1 1 Actuarial loss (gain) 4 1 (1 ) (1 ) Settlement charges — 14 — — Net periodic benefit cost 11 19 — — Regulatory adjustment (11 ) (19 ) — — Total expense recognized $ — $ — $ — $ — NET PERIODIC BENEFIT COST – SOCALGAS (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2019 2018 2019 2018 Service cost $ 16 $ 22 $ 3 $ 4 Interest cost 23 23 7 7 Expected return on assets (24 ) (26 ) (14 ) (14 ) Amortization of: Prior service cost (credit) 2 2 (1 ) (1 ) Actuarial loss (gain) 9 6 (2 ) — Net periodic benefit cost (credit) 26 27 (7 ) (4 ) Regulatory adjustment (25 ) (26 ) 7 4 Total expense recognized $ 1 $ 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 2019 . BENEFIT PLAN CONTRIBUTIONS (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Contributions through March 31, 2019: Pension plans $ 9 $ — $ 1 Other postretirement benefit plans 2 — — Total expected contributions in 2019: Pension plans $ 234 $ 40 $ 118 Other postretirement benefit plans 9 — 1 |
Earnings Per Share Computations Table | The following table provides EPS computations for the three months ended March 31, 2019 and 2018 . Basic EPS is calculated by dividing earnings attributable to common shares (from both continuing and discontinued operations) by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. EARNINGS PER COMMON SHARE COMPUTATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended March 31, 2019 2018 Numerator for continuing operations: Income from continuing operations, net of income tax $ 560 $ 330 (Earnings) losses attributable to noncontrolling interests (32 ) 24 Mandatory convertible preferred stock dividends (36 ) (28 ) Earnings from continuing operations attributable to common shares $ 492 $ 326 Numerator for discontinued operations: (Loss) income from discontinued operations, net of income tax $ (42 ) $ 28 Earnings attributable to noncontrolling interests (9 ) (7 ) (Losses) earnings from discontinued operations attributable to common shares $ (51 ) $ 21 Numerator for earnings: Earnings attributable to common shares $ 441 $ 347 Denominator: Weighted-average common shares outstanding for basic EPS (1) 274,674 257,932 Dilutive effect of stock options and RSUs (2) 969 933 Dilutive effect of common shares sold forward 1,585 625 Weighted-average common shares outstanding for diluted EPS 277,228 259,490 Basic EPS: Earnings from continuing operations attributable to common shares $ 1.79 $ 1.26 (Losses) earnings from discontinued operations attributable to common shares $ (0.19 ) $ 0.08 Earnings attributable to common shares $ 1.60 $ 1.34 Diluted EPS: Earnings from continuing operations attributable to common shares $ 1.78 $ 1.25 (Losses) earnings from discontinued operations attributable to common shares $ (0.19 ) $ 0.08 Earnings attributable to common shares $ 1.59 $ 1.33 (1) Includes 613 and 628 average fully vested RSUs held in our Deferred Compensation Plan for the three months ended March 31, 2019 and 2018 , 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. (2) Due to market fluctuations of both Sempra Energy common stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 10 of the Notes to Consolidated Financial Statements in the Annual Report, dilutive RSUs may vary widely from period-to-period. |
Schedule of Accumulated Other Comprehensive Income (Loss) Table | The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to NCI. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT (1) (Dollars in millions) Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Total accumulated other comprehensive income (loss) Three months ended March 31, 2019 and 2018 Sempra Energy Consolidated (2) : Balance as of December 31, 2018 $ (564 ) $ (82 ) $ (118 ) $ (764 ) Cumulative-effect adjustment from change in accounting principle — (25 ) (17 ) (42 ) OCI before reclassifications 32 (45 ) 1 (12 ) Amounts reclassified from AOCI — (1 ) 2 1 Net OCI 32 (46 ) 3 (11 ) Balance as of March 31, 2019 $ (532 ) $ (153 ) $ (132 ) $ (817 ) Balance as of December 31, 2017 $ (420 ) $ (122 ) $ (84 ) $ (626 ) Cumulative-effect adjustment from change in accounting principle — (3 ) — (3 ) OCI before reclassifications 24 66 — 90 Amounts reclassified from AOCI — (8 ) 2 (6 ) Net OCI 24 58 2 84 Balance as of March 31, 2018 $ (396 ) $ (67 ) $ (82 ) $ (545 ) SDG&E: Balance as of December 31, 2018 $ (10 ) $ (10 ) Cumulative-effect adjustment from change in accounting principle (2 ) (2 ) Balance as of March 31, 2019 $ (12 ) $ (12 ) Balance as of December 31, 2017 and March 31, 2018 $ (8 ) $ (8 ) SoCalGas: Balance as of December 31, 2018 $ (12 ) $ (8 ) $ (20 ) Cumulative-effect adjustment from change in accounting principle (2 ) (2 ) (4 ) Balance as of March 31, 2019 $ (14 ) $ (10 ) $ (24 ) Balance as of December 31, 2017 and March 31, 2018 $ (13 ) $ (8 ) $ (21 ) (1) All amounts are net of income tax, if subject to tax, and exclude NCI. (2) Includes discontinued operations. |
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 March 31, 2019 2018 Sempra Energy Consolidated: Financial instruments: Interest rate and foreign exchange instruments (1) $ 1 $ (2 ) Interest Expense (3 ) (18 ) Other Income, Net Interest rate and foreign exchange instruments 1 4 Equity Earnings (Losses) Foreign exchange instruments 1 — Revenues: Energy-Related Businesses Total before income tax — (16 ) — 3 Income Tax Expense Net of income tax — (13 ) (1 ) 5 (Earnings) Losses Attributable to Noncontrolling Interests $ (1 ) $ (8 ) Pension and other postretirement benefits: Amortization of actuarial loss (2) $ 2 $ 3 Other Income, Net Amortization of prior service cost (2) 1 — Other Income, Net Total before income tax 3 3 (1 ) (1 ) Income Tax Expense Net of income tax $ 2 $ 2 Total reclassifications for the period, net of tax $ 1 $ (6 ) SDG&E: Financial instruments: Interest rate instruments (1) $ 1 $ 3 Interest Expense (1 ) (3 ) (Earnings) Losses Attributable to Noncontrolling Interest Total reclassifications for the period, net of tax $ — $ — (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. (2) Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above). For the three months ended March 31, 2019 and 2018, reclassifications out of AOCI to net income were negligible for SoCalGas. |
Ownership Interests Held By Others Table | The following table provides information on noncontrolling ownership interests held by others (not including preferred shareholders) in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Condensed Consolidated Balance Sheets. OTHER NONCONTROLLING INTERESTS (Dollars in millions) Percent ownership held by noncontrolling interests Equity (deficit) held by noncontrolling interests March 31, December 31, March 31, December 31, SDG&E: Otay Mesa VIE 100 % 100 % $ 102 $ 100 Sempra Mexico: IEnova 33.4 33.5 1,611 1,592 IEnova subsidiaries (1) 10.0 – 47.6 10.0 – 49.0 13 13 Sempra Renewables: Tax equity arrangements – wind (2) NA NA 161 158 PXiSE Energy Solutions, LLC 11.1 11.1 — 1 Sempra LNG: Bay Gas — 9.1 — 18 Liberty Gas Storage, LLC 24.6 24.6 (12 ) (12 ) Discontinued Operations: Chilquinta Energía subsidiaries (1) 19.7 – 43.4 19.7 – 43.4 24 23 Luz del Sur 16.4 16.4 201 193 Tecsur 9.8 9.8 4 4 Total Sempra Energy $ 2,104 $ 2,090 (1) IEnova and Chilquinta Energía have subsidiaries with NCI held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries. (2) Net income or loss attributable to NCI is computed using the HLBV method and is not based on ownership percentages. |
Transactions with Affiliates Table | We summarize amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas in the following table. AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES (Dollars in millions) March 31, December 31, Sempra Energy Consolidated: Total due from various unconsolidated affiliates – current $ 50 $ 37 Sempra Mexico (1) : IMG – Note due March 15, 2022 (2) $ 668 $ 641 Energía Sierra Juárez – Note (3) — 3 Total due from unconsolidated affiliates – noncurrent $ 668 $ 644 Total due to various unconsolidated affiliates – current $ (10 ) $ (10 ) Sempra Mexico (1) : Total due to unconsolidated affiliates – noncurrent – TAG – Note due December 20, 2021 (4) $ (38 ) $ (37 ) SDG&E: Sempra Energy $ (37 ) $ (43 ) SoCalGas (14 ) (6 ) Various affiliates (12 ) (12 ) Total due to unconsolidated affiliates – current $ (63 ) $ (61 ) Income taxes due (to) from Sempra Energy (5) $ (29 ) $ 5 SoCalGas: SDG&E $ 14 $ 6 Various affiliates 1 1 Total due from unconsolidated affiliates – current $ 15 $ 7 Sempra Energy $ (39 ) $ (34 ) Various affiliates (3 ) — Total due to unconsolidated affiliates – current $ (42 ) $ (34 ) Income taxes due to Sempra Energy (5) $ (88 ) $ (4 ) (1) Amounts include principal balances plus accumulated interest outstanding. (2) Mexican peso-denominated revolving line of credit for up to 14.2 billion Mexican pesos or approximately $729 million U.S. dollar-equivalent, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps ( 10.69 percent at March 31, 2019 ), to finance construction of the natural gas marine pipeline. (3) U.S. dollar-denominated loan, at a variable interest rate based on the 30-day LIBOR plus 637.5 bps ( 8.89 percent at December 31, 2018 ). (4) U.S. dollar-denominated loan, at a variable interest rate based on the 6-month LIBOR plus 290 bps ( 5.54 percent at March 31, 2019 ). (5) 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. The following table summarizes revenues and cost of sales from unconsolidated affiliates. REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES (Dollars in millions) Three months ended March 31, 2019 2018 Revenues: Sempra Energy Consolidated $ 14 $ 16 SDG&E 1 2 SoCalGas 17 17 Cost of Sales: Sempra Energy Consolidated $ 14 $ 12 SDG&E 20 19 SoCalGas 4 — |
Other Income and Expense Table | Other Income, Net on the Condensed Consolidated Statements of Operations consisted of the following: OTHER INCOME, NET (Dollars in millions) Three months ended March 31, 2019 2018 Sempra Energy Consolidated: Allowance for equity funds used during construction $ 21 $ 27 Investment gains (losses) (1) 26 (1 ) Gains on interest rate and foreign exchange instruments, net 13 62 Foreign currency transaction gains, net (2) 7 30 Non-service component of net periodic benefit credit 24 32 Penalties related to billing practices OII (8 ) — Interest on regulatory balancing accounts, net (1 ) — Sundry, net — 2 Total $ 82 $ 152 SDG&E: Allowance for equity funds used during construction $ 12 $ 18 Non-service component of net periodic benefit credit 9 9 Sundry, net 1 1 Total $ 22 $ 28 SoCalGas: Allowance for equity funds used during construction $ 8 $ 9 Non-service component of net periodic benefit credit 18 25 Penalties related to billing practices OII (8 ) — Interest on regulatory balancing accounts, net (1 ) — Sundry, net (1 ) (1 ) Total $ 16 $ 33 (1) Represents investment gains (losses) on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans, recorded in O&M on the Condensed Consolidated Statements of Operations. (2) Includes gains of $10 million and $39 million |
Income Tax Expense and Effective Income Tax Rates Table | We provide our calculations of ETRs in the following table. INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES (Dollars in millions) Three months ended March 31, 2019 2018 Sempra Energy Consolidated: Income tax expense from continuing operations $ 42 $ 242 Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities $ 501 $ 593 Equity earnings, before income tax (1) 5 5 Pretax income $ 506 $ 598 Effective income tax rate 8 % 40 % SDG&E: Income tax expense $ 5 $ 56 Income before income taxes $ 182 $ 225 Effective income tax rate 3 % 25 % SoCalGas: Income tax expense $ 19 $ 59 Income before income taxes $ 283 $ 284 Effective income tax rate 7 % 21 % (1) We discuss how we recognize equity earnings in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. |
NEW ACCOUNTING STANDARDS (Table
NEW ACCOUNTING STANDARDS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table shows the initial (decreases) increases on our balance sheets at January 1, 2019 from adoption of the lease standard. IMPACT FROM ADOPTION OF THE LEASE STANDARD (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Assets held for sale $ 13 $ — $ — Sundry (71 ) — — Property, plant and equipment, net (147 ) — — Right-of-use assets – operating leases 603 130 116 Deferred income tax assets (3 ) — — Other current liabilities 80 20 23 Long-term debt (138 ) — — Deferred credits and other 436 110 93 Retained earnings 17 — — |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates our revenues from contracts with customers by major service line and market and provides a reconciliation to total revenues by segment. The majority of our revenue is recognized over time. DISAGGREGATED REVENUES (Dollars in millions) Three months ended March 31, 2019 SDG&E SoCalGas Sempra Mexico Sempra Renewables Sempra LNG Consolidating adjustments Sempra Energy Consolidated By major service line: Utilities $ 1,236 $ 1,528 $ 27 $ — $ — $ (18 ) $ 2,773 Midstream — — 171 — 67 (59 ) 179 Renewables — — 20 4 — — 24 Other — — 66 — 1 — 67 Revenues from contracts with customers $ 1,236 $ 1,528 $ 284 $ 4 $ 68 $ (77 ) $ 3,043 By market: Electric $ 997 $ — $ 86 $ 4 $ 1 $ (1 ) $ 1,087 Gas 239 1,528 198 — 67 (76 ) 1,956 Revenues from contracts with customers $ 1,236 $ 1,528 $ 284 $ 4 $ 68 $ (77 ) $ 3,043 Revenues from contracts with customers $ 1,236 $ 1,528 $ 284 $ 4 $ 68 $ (77 ) $ 3,043 Utilities regulatory revenues (91 ) (167 ) — — — — (258 ) Other revenues — — 99 3 73 (62 ) 113 Total revenues $ 1,145 $ 1,361 $ 383 $ 7 $ 141 $ (139 ) $ 2,898 Three months ended March 31, 2018 By major service line: Utilities $ 1,131 $ 1,081 $ 28 $ — $ — $ (19 ) $ 2,221 Midstream — — 143 — 54 (21 ) 176 Renewables — — 22 11 1 (1 ) 33 Other — — 41 — 2 (2 ) 41 Revenues from contracts with customers $ 1,131 $ 1,081 $ 234 $ 11 $ 57 $ (43 ) $ 2,471 By market: Electric $ 963 $ — $ 62 $ 11 $ 2 $ (4 ) $ 1,034 Gas 168 1,081 172 — 55 (39 ) 1,437 Revenues from contracts with customers $ 1,131 $ 1,081 $ 234 $ 11 $ 57 $ (43 ) $ 2,471 Revenues from contracts with customers $ 1,131 $ 1,081 $ 234 $ 11 $ 57 $ (43 ) $ 2,471 Utilities regulatory revenues (76 ) 45 — — — — (31 ) Other revenues — — 74 14 47 (39 ) 96 Total revenues $ 1,055 $ 1,126 $ 308 $ 25 $ 104 $ (82 ) $ 2,536 |
Schedule of Timing of Remaining Performance Obligations | For contracts greater than one year, at March 31, 2019 , we expect to recognize revenue related to the fixed fee component of the consideration as shown below. SoCalGas did not have any such remaining performance obligations at March 31, 2019 . REMAINING PERFORMANCE OBLIGATIONS (1) (Dollars in millions) Sempra Energy Consolidated SDG&E 2019 (excluding first three months of 2019) $ 384 $ 2 2020 512 3 2021 513 3 2022 515 3 2023 509 3 Thereafter 2,784 52 Total revenues to be recognized $ 5,217 $ 66 (1) Excludes intercompany transactions. |
Schedule of Contract Liabilities | Activities within Sempra Energy’s contract liabilities are presented below. There were no contract liabilities at SDG&E or SoCalGas for the three months ended March 31 , 2019 and 2018. CONTRACT LIABILITIES (Dollars in millions) Balance at January 1, 2019 $ (70 ) Revenue from performance obligations satisfied during reporting period 1 Payments received in advance (2 ) Balance at March 31, 2019 (1) $ (71 ) Balance at January 1, 2018 $ — Adoption of ASC 606 adjustment (61 ) Revenue from performance obligations satisfied during reporting period 5 Payments received in advance (7 ) Balance at March 31, 2018 $ (63 ) (1) I ncludes a negligible amount in Other Current Liabilities a nd $71 million in Deferred Credits and Other on the Sempra Energy Condensed Consolidated Balance Sheet. |
Schedule of Contract Accounts Receivable | The table below shows receivable balances associated with revenues from contracts with customers on our Condensed Consolidated Balance Sheets. RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS (Dollars in millions) March 31, 2019 December 31, 2018 Sempra Energy Consolidated: Accounts receivable – trade, net $ 1,145 $ 1,106 Accounts receivable – other, net 14 11 Due from unconsolidated affiliates – current (1) 6 4 Assets held for sale 1 6 Total $ 1,166 $ 1,127 SDG&E: Accounts receivable – trade, net $ 390 $ 368 Accounts receivable – other, net 12 6 Due from unconsolidated affiliates – current (1) 3 3 Total $ 405 $ 377 SoCalGas: Accounts receivable – trade, net $ 674 $ 634 Accounts receivable – other, net 2 5 Total $ 676 $ 639 (1) A |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | We show the details of regulatory assets and liabilities in the following table. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) March 31, December 31, SDG&E: Fixed-price contracts and other derivatives $ (144 ) $ (150 ) Deferred income taxes refundable in rates (171 ) (236 ) Pension and other postretirement benefit plan obligations 190 186 Removal obligations (1,946 ) (1,848 ) Unamortized loss on reacquired debt 6 7 Environmental costs 27 28 Sunrise Powerlink fire mitigation 121 120 Regulatory balancing accounts (1) Commodity – electric 60 (8 ) Gas transportation 13 45 Safety and reliability 77 70 Public purpose programs (80 ) (62 ) Other balancing accounts 67 145 Other regulatory liabilities, net (2) (199 ) (177 ) Total SDG&E (1,979 ) (1,880 ) SoCalGas: Pension and other postretirement benefit plan obligations 479 470 Employee benefit costs 49 49 Removal obligations (804 ) (833 ) Deferred income taxes refundable in rates (248 ) (336 ) Unamortized loss on reacquired debt 6 7 Environmental costs 32 28 Workers’ compensation 9 9 Regulatory balancing accounts (1) Commodity – gas, including transportation 16 196 Safety and reliability 348 332 Public purpose programs (289 ) (325 ) Other balancing accounts (143 ) (68 ) Other regulatory liabilities, net (2) (160 ) (130 ) Total SoCalGas (705 ) (601 ) Sempra Mexico: Deferred income taxes recoverable in rates 81 81 Other regulatory assets 9 6 Total Sempra Energy Consolidated $ (2,594 ) $ (2,394 ) (1) At March 31, 2019 and December 31, 2018 , the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $84 million and $78 million , respectively, and for SoCalGas was $405 million and $185 million , respectively. (2) |
Schedule of Regulatory Liabilities | We show the details of regulatory assets and liabilities in the following table. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) March 31, December 31, SDG&E: Fixed-price contracts and other derivatives $ (144 ) $ (150 ) Deferred income taxes refundable in rates (171 ) (236 ) Pension and other postretirement benefit plan obligations 190 186 Removal obligations (1,946 ) (1,848 ) Unamortized loss on reacquired debt 6 7 Environmental costs 27 28 Sunrise Powerlink fire mitigation 121 120 Regulatory balancing accounts (1) Commodity – electric 60 (8 ) Gas transportation 13 45 Safety and reliability 77 70 Public purpose programs (80 ) (62 ) Other balancing accounts 67 145 Other regulatory liabilities, net (2) (199 ) (177 ) Total SDG&E (1,979 ) (1,880 ) SoCalGas: Pension and other postretirement benefit plan obligations 479 470 Employee benefit costs 49 49 Removal obligations (804 ) (833 ) Deferred income taxes refundable in rates (248 ) (336 ) Unamortized loss on reacquired debt 6 7 Environmental costs 32 28 Workers’ compensation 9 9 Regulatory balancing accounts (1) Commodity – gas, including transportation 16 196 Safety and reliability 348 332 Public purpose programs (289 ) (325 ) Other balancing accounts (143 ) (68 ) Other regulatory liabilities, net (2) (160 ) (130 ) Total SoCalGas (705 ) (601 ) Sempra Mexico: Deferred income taxes recoverable in rates 81 81 Other regulatory assets 9 6 Total Sempra Energy Consolidated $ (2,594 ) $ (2,394 ) (1) At March 31, 2019 and December 31, 2018 , the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $84 million and $78 million , respectively, and for SoCalGas was $405 million and $185 million , respectively. (2) |
ACQUISITIONS, DIVESTITURES AN_2
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule Of Assets Held for Sale and Deconsolidation of Subsidiaries Table | The following table summarizes the carrying amounts of the major classes of assets and related liabilities classified as held for sale. ASSETS HELD FOR SALE (Dollars in millions) Sempra Renewables’ wind assets At March 31, 2019 Cash and cash equivalents $ 4 Accounts receivable – trade, net 2 Other current assets 2 Property, plant and equipment, net 366 Total assets held for sale $ 374 Accounts payable – trade $ 1 Asset retirement obligations 6 Total liabilities held for sale (1) $ 7 (1) DISCONTINUED OPERATIONS (Dollars in millions) Three months ended March 31, 2019 2018 Revenues $ 421 $ 426 Cost of sales (265 ) (293 ) Operating expenses (45 ) (54 ) Interest and other (3 ) (5 ) Income before income taxes and equity earnings of unconsolidated entities 108 74 Income tax expense (151 ) (47 ) Equity earnings 1 1 (Loss) income from discontinued operations, net of income tax (42 ) 28 Earnings attributable to noncontrolling interests (9 ) (7 ) (Losses) earnings from discontinued operations attributable to common shares $ (51 ) $ 21 The following table summarizes the carrying amounts of the major classes of assets and related liabilities classified as held for sale in discontinued operations. ASSETS HELD FOR SALE IN DISCONTINUED OPERATIONS (Dollars in millions) March 31, December 31, 2018 Cash and cash equivalents $ 67 $ 88 Accounts receivable, net 331 315 Due from unconsolidated affiliates 3 2 Inventories 41 38 Other current assets 15 16 Current assets $ 457 $ 459 Due from unconsolidated affiliates $ 46 $ 44 Goodwill and other intangible assets 834 819 Property, plant and equipment, net 2,459 2,357 Other noncurrent assets 49 39 Noncurrent assets $ 3,388 $ 3,259 Short-term debt $ 46 $ 55 Accounts payable 188 176 Current portion of long-term debt and finance leases 22 29 Other current liabilities 119 108 Current liabilities $ 375 $ 368 Long-term debt and finance leases $ 721 $ 708 Deferred income taxes 263 250 Other noncurrent liabilities 62 55 Noncurrent liabilities $ 1,046 $ 1,013 |
INVESTMENT IN UNCONSOLIDATED EN
INVESTMENT IN UNCONSOLIDATED ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Business Acquisition, Results of Operations | We provide summarized income statement information for Oncor Holdings in the following table. SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS (Dollars in millions) Three months ended March 31, 2019 March 9 - March 31, 2018 Operating revenues $ 1,016 $ 236 Operating expense (775 ) (185 ) Income from operations 241 51 Interest expense (86 ) (22 ) Income tax expense (23 ) (7 ) Net income 114 19 Noncontrolling interest held by TTI (23 ) (4 ) Earnings attributable to Sempra Energy (1) 91 15 (1) |
DEBT AND CREDIT FACILITIES (Tab
DEBT AND CREDIT FACILITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | PRIMARY U.S. COMMITTED LINES OF CREDIT (Dollars in millions) March 31, 2019 Total facility Commercial paper outstanding (1) Available unused credit Sempra Energy (2) $ 1,250 $ — $ 1,250 Sempra Global (3) 3,185 (1,289 ) 1,896 California Utilities (4) : SDG&E 750 (238 ) 512 SoCalGas 750 (190 ) 560 Less: subject to a combined limit of $1 billion for both utilities (500 ) — (500 ) 1,000 (428 ) 572 Total $ 5,435 $ (1,717 ) $ 3,718 (1) 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. (2) 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 March 31, 2019. (3) Commercial paper outstanding is before reductions of unamortized discount of $2 million . Sempra Energy guarantees Sempra Global’s obligations under the credit facility. (4) 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 March 31, 2019. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Commodity Derivative Volumes Table | The following table summarizes net energy derivative volumes. NET ENERGY DERIVATIVE VOLUMES (Quantities in millions) Commodity Unit of measure March 31, December 31, Sempra Energy Consolidated: Natural gas MMBtu 33 35 Electricity MWh 2 2 Congestion revenue rights MWh 50 52 SDG&E: Natural gas MMBtu 32 33 Electricity MWh 2 2 Congestion revenue rights MWh 50 52 |
Notional Amounts of Derivatives Table | The following table presents the net notional amounts of our foreign currency derivatives, excluding JVs. FOREIGN CURRENCY DERIVATIVES (Dollars in millions) March 31, 2019 December 31, 2018 Notional amount Maturities Notional amount Maturities Sempra Energy Consolidated: Cross-currency swaps $ 306 2019-2023 $ 306 2019-2023 Other foreign currency derivatives 1,084 2019-2020 1,158 2019-2020 INTEREST RATE DERIVATIVES (Dollars in millions) March 31, 2019 December 31, 2018 Notional debt Maturities Notional debt Maturities Sempra Energy Consolidated: Cash flow hedges (1) $ 1,430 2019-2032 $ 594 2019-2032 SDG&E: Cash flow hedge (1) 142 2019 142 2019 (1) Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. In December 2018, OMEC LLC entered into new floating-to-fixed interest rate swaps with notional amounts of $159 million effective April 30, 2019 through October 31, 2019, and a swaption with a notional amount of $142 million effective October 31, 2019 through October 31, 2023. |
Derivative Instruments on the Condensed Consolidated Balance Sheets Table | The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets, including the amount of cash collateral receivables that were not offset, as the cash collateral was in excess of liability positions. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) March 31, 2019 Current (1) Other Current liabilities: Deferred Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments (2) $ — $ — $ (5 ) $ (146 ) Derivatives not designated as hedging instruments: Foreign exchange instruments 12 — — — Commodity contracts not subject to rate recovery 58 6 (65 ) (5 ) Associated offsetting commodity contracts (47 ) (2 ) 47 2 Commodity contracts subject to rate recovery 50 236 (41 ) (65 ) Associated offsetting commodity contracts (5 ) (2 ) 5 2 Associated offsetting cash collateral — — 3 3 Net amounts presented on the balance sheet 68 238 (56 ) (209 ) Additional cash collateral for commodity contracts not subject to rate recovery 25 — — — Additional cash collateral for commodity contracts subject to rate recovery 26 — — — Total (3) $ 119 $ 238 $ (56 ) $ (209 ) SDG&E: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 45 $ 234 $ (37 ) $ (65 ) Associated offsetting commodity contracts (5 ) (2 ) 5 2 Associated offsetting cash collateral — — 3 3 Net amounts presented on the balance sheet 40 232 (29 ) (60 ) Additional cash collateral for commodity contracts subject to rate recovery 25 — — — Total (3) $ 65 $ 232 $ (29 ) $ (60 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 5 $ 2 $ (4 ) $ — Net amounts presented on the balance sheet 5 2 (4 ) — Additional cash collateral for commodity contracts subject to rate recovery 1 — — — Total $ 6 $ 2 $ (4 ) $ — (1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Includes a negligible amount for Otay Mesa VIE. (3) Normal purchase contracts previously measured at fair value are excluded. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2018 Current (1) Other Current liabilities: Deferred Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments (2) $ 2 $ — $ (3 ) $ (147 ) Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery 153 7 (164 ) (6 ) Associated offsetting commodity contracts (133 ) (3 ) 133 3 Commodity contracts subject to rate recovery 64 233 (42 ) (72 ) Associated offsetting commodity contracts (6 ) (2 ) 6 2 Associated offsetting cash collateral — — — 2 Net amounts presented on the balance sheet 80 235 (70 ) (218 ) Additional cash collateral for commodity contracts not subject to rate recovery 19 — — — Additional cash collateral for commodity contracts subject to rate recovery 33 — — — Total (3) $ 132 $ 235 $ (70 ) $ (218 ) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments (2) $ — $ — $ (1 ) $ — Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery 60 233 (37 ) (72 ) Associated offsetting commodity contracts (6 ) (2 ) 6 2 Associated offsetting cash collateral — — — 2 Net amounts presented on the balance sheet 54 231 (32 ) (68 ) Additional cash collateral for commodity contracts subject to rate recovery 28 — — — Total (3) $ 82 $ 231 $ (32 ) $ (68 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 4 $ — $ (5 ) $ — Net amounts presented on the balance sheet 4 — (5 ) — Additional cash collateral for commodity contracts subject to rate recovery 5 — — — Total $ 9 $ — $ (5 ) $ — (1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. (3) |
Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table | The table below includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI: CASH FLOW HEDGE IMPACTS (Dollars in millions) Pretax gain (loss) recognized in OCI Pretax gain (loss) reclassified from AOCI into earnings Three months ended March 31, Three months ended March 31, 2019 2018 Location 2019 2018 Sempra Energy Consolidated: Interest rate and foreign exchange instruments (1) $ (3 ) $ 54 Interest Expense $ (1 ) $ 2 Other Income, Net 3 18 Interest rate and foreign exchange instruments (68 ) 70 Equity Earnings (Losses) (1 ) (4 ) Foreign exchange instruments (3 ) (7 ) Revenues: Energy- Related Businesses (1 ) — Total $ (74 ) $ 117 $ — $ 16 SDG&E: Interest rate instruments (1) $ — $ 1 Interest Expense $ (1 ) $ (3 ) (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. |
Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table | The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations. UNDESIGNATED DERIVATIVE IMPACTS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended Location 2019 2018 Sempra Energy Consolidated: Foreign exchange instruments Other Income, Net $ 10 $ 44 Commodity contracts not subject to rate recovery Revenues: Energy-Related Businesses — (9 ) Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power 2 2 Commodity contracts subject to rate recovery Cost of Natural Gas 2 1 Total $ 14 $ 38 SDG&E: Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power $ 2 $ 2 SoCalGas: Commodity contracts subject to rate recovery Cost of Natural Gas $ 2 $ 1 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measures Table | RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Fair value at March 31, 2019 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 454 $ 5 $ — $ 459 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 39 9 — 48 Municipal bonds — 279 — 279 Other securities — 238 — 238 Total debt securities 39 526 — 565 Total nuclear decommissioning trusts (1) 493 531 — 1,024 Interest rate and foreign exchange instruments — 12 — 12 Commodity contracts not subject to rate recovery — 15 — 15 Effect of netting and allocation of collateral (2) 25 — — 25 Commodity contracts subject to rate recovery — 8 271 279 Effect of netting and allocation of collateral (2) 21 — 5 26 Total $ 539 $ 566 $ 276 $ 1,381 Liabilities: Interest rate and foreign exchange instruments $ — $ 151 $ — $ 151 Commodity contracts not subject to rate recovery — 21 — 21 Commodity contracts subject to rate recovery 6 4 89 99 Effect of netting and allocation of collateral (2) (6 ) — — (6 ) Total $ — $ 176 $ 89 $ 265 Fair value at December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 407 $ 4 $ — $ 411 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 43 10 — 53 Municipal bonds — 269 — 269 Other securities — 234 — 234 Total debt securities 43 513 — 556 Total nuclear decommissioning trusts (1) 450 517 — 967 Interest rate and foreign exchange instruments — 2 — 2 Commodity contracts not subject to rate recovery — 24 — 24 Effect of netting and allocation of collateral (2) 19 — — 19 Commodity contracts subject to rate recovery 2 9 278 289 Effect of netting and allocation of collateral (2) 28 — 5 33 Total $ 499 $ 552 $ 283 $ 1,334 Liabilities: Interest rate and foreign exchange instruments $ — $ 150 $ — $ 150 Commodity contracts not subject to rate recovery — 34 — 34 Commodity contracts subject to rate recovery 2 5 99 106 Effect of netting and allocation of collateral (2) (2 ) — — (2 ) Total $ — $ 189 $ 99 $ 288 (1) Excludes cash balances and cash equivalents. (2) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. RECURRING FAIR VALUE MEASURES – SDG&E (Dollars in millions) Fair value at March 31, 2019 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 454 $ 5 $ — $ 459 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 39 9 — 48 Municipal bonds — 279 — 279 Other securities — 238 — 238 Total debt securities 39 526 — 565 Total nuclear decommissioning trusts (1) 493 531 — 1,024 Commodity contracts subject to rate recovery — 1 271 272 Effect of netting and allocation of collateral (2) 20 — 5 25 Total $ 513 $ 532 $ 276 $ 1,321 Liabilities: Commodity contracts subject to rate recovery $ 6 $ — $ 89 $ 95 Effect of netting and allocation of collateral (2) (6 ) — — (6 ) Total $ — $ — $ 89 $ 89 Fair value at December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 407 $ 4 $ — $ 411 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 43 10 — 53 Municipal bonds — 269 — 269 Other securities — 234 — 234 Total debt securities 43 513 — 556 Total nuclear decommissioning trusts (1) 450 517 — 967 Commodity contracts subject to rate recovery 1 6 278 285 Effect of netting and allocation of collateral (2) 23 — 5 28 Total $ 474 $ 523 $ 283 $ 1,280 Liabilities: Interest rate instruments $ — $ 1 $ — $ 1 Commodity contracts subject to rate recovery 2 — 99 101 Effect of netting and allocation of collateral (2) (2 ) — — (2 ) Total $ — $ 1 $ 99 $ 100 (1) Excludes cash balances and cash equivalents. (2) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. RECURRING FAIR VALUE MEASURES – SOCALGAS (Dollars in millions) Fair value at March 31, 2019 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ — $ 7 $ — $ 7 Effect of netting and allocation of collateral (1) 1 — — 1 Total $ 1 $ 7 $ — $ 8 Liabilities: Commodity contracts subject to rate recovery $ — $ 4 $ — $ 4 Total $ — $ 4 $ — $ 4 Fair value at December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ 1 $ 3 $ — $ 4 Effect of netting and allocation of collateral (1) 5 — — 5 Total $ 6 $ 3 $ — $ 9 Liabilities: Commodity contracts subject to rate recovery $ — $ 5 $ — $ 5 Total $ — $ 5 $ — $ 5 (1) |
Recurring Fair Value Measures Level 3 Rollforward Table | The table below sets forth reconciliations of changes in the fair value of CRRs and long-term, fixed-price electricity positions classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E. LEVEL 3 RECONCILIATIONS (1) (Dollars in millions) Three months ended March 31, 2019 2018 Balance at January 1 $ 179 $ (28 ) Realized and unrealized gains 5 4 Allocated transmission instruments — 3 Settlements (2 ) (19 ) Balance at March 31 $ 182 $ (40 ) Change in unrealized gains (losses) relating to instruments still held at March 31 $ 13 $ (8 ) (1) |
Schedule of Fair Value Inputs | The fair value of the net electricity positions classified as Level 3 is derived from a discounted cash flow model using market electricity forward price inputs. The range and weighted-average price of these inputs were as follows: LONG-TERM, FIXED-PRICE ELECTRICITY POSITIONS PRICE INPUTS Settlement year Price per MWh Weighted-average price per MWh 2019 $ 23.25 to $ 81.75 $ 42.49 2018 20.00 to 47.65 35.42 CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS Settlement year Price per MWh Median price per MWh 2019 $ (8.57 ) to $ 35.21 $ (2.94 ) 2018 (7.25 ) to 11.99 0.09 |
Fair Value of Financial Instruments Table | The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets. FAIR VALUE OF FINANCIAL INSTRUMENTS (Dollars in millions) March 31, 2019 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates $ 668 $ — $ 689 $ — $ 689 Long-term amounts due to unconsolidated affiliates 38 — 37 — 37 Total long-term debt (1)(2) 20,814 — 20,598 248 20,846 SDG&E: Total long-term debt (2)(3) $ 4,978 $ — $ 4,918 $ 220 $ 5,138 SoCalGas: Total long-term debt (4) $ 3,459 $ — $ 3,595 $ — $ 3,595 December 31, 2018 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates $ 644 $ — $ 648 $ 4 $ 652 Long-term amounts due to unconsolidated affiliates 37 — 35 — 35 Total long-term debt (2)(5) 21,340 — 20,616 247 20,863 SDG&E: Total long-term debt (6) $ 4,996 $ — $ 4,897 $ 220 $ 5,117 SoCalGas: Total long-term debt (7) $ 3,459 $ — $ 3,505 $ — $ 3,505 (1) Before reductions of unamortized discount and debt issuance costs of $201 million and excluding finance lease obligations of $1,277 million . (2) Level 3 instruments includes $220 million at both March 31, 2019 and December 31, 2018 related to Otay Mesa VIE. (3) Before reductions of unamortized discount and debt issuance costs of $48 million and excluding finance lease obligations of $1,272 million . (4) Before reductions of unamortized discount and debt issuance costs of $32 million and excluding finance lease obligations of $5 million . (5) Before reductions of unamortized discount and debt issuance costs of $206 million and excluding build-to-suit and capital lease obligations of $1,413 million . (6) Before reductions of unamortized discount and debt issuance costs of $49 million and excluding capital lease obligations of $1,272 million . (7) Before reductions of unamortized discount and debt issuance costs of $32 million and excluding capital lease obligations of $3 million . |
SAN ONOFRE NUCLEAR GENERATING_2
SAN ONOFRE NUCLEAR GENERATING STATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Public Utilities, General Disclosures [Abstract] | |
Schedule of Nuclear Decommissioning Trusts Investments | The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 9 . NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At March 31, 2019: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 48 $ — $ — $ 48 Municipal bonds (2) 271 8 — 279 Other securities (3) 236 3 (1 ) 238 Total debt securities 555 11 (1 ) 565 Equity securities 166 299 (6 ) 459 Cash and cash equivalents 13 — — 13 Total $ 734 $ 310 $ (7 ) $ 1,037 At December 31, 2018: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 52 $ 1 $ — $ 53 Municipal bonds 266 4 (1 ) 269 Other securities 238 1 (5 ) 234 Total debt securities 556 6 (6 ) 556 Equity securities 168 253 (10 ) 411 Cash and cash equivalents 7 — — 7 Total $ 731 $ 259 $ (16 ) $ 974 (1) Maturity dates are 2019-2049. (2) Maturity dates are 2019-2056. (3) Maturity dates are 2019-2064. |
Schedule of Sales of Securities By Nuclear Decommissioning Trusts | The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales. SALES OF SECURITIES IN THE NDT (Dollars in millions) Three months ended March 31, 2019 2018 Proceeds from sales $ 225 $ 210 Gross realized gains 5 4 Gross realized losses (2 ) (3 ) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Leases Statement of Financial Position | Classification of ROU assets and lease liabilities and the weighted-average remaining lease term and discount rate associated with operating and finance leases are summarized in the table below. LESSEE INFORMATION ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) March 31, 2019 Sempra Energy Consolidated SDG&E SoCalGas Right-of-use assets: Operating leases: Right-of-use assets $ 612 $ 135 $ 110 Finance leases: Property, plant and equipment 1,322 1,315 7 Accumulated depreciation (45 ) (43 ) (2 ) Property, plant and equipment, net 1,277 1,272 5 Total right-of-use assets $ 1,889 $ 1,407 $ 115 Lease liabilities: Operating leases: Other current liabilities $ 52 $ 24 $ 22 Deferred credits and other 455 110 88 507 134 110 Finance leases: Current portion of long-term debt and finance leases 21 18 3 Long-term debt and finance leases 1,256 1,254 2 1,277 1,272 5 Total lease liabilities $ 1,784 $ 1,406 $ 115 Weighted-average remaining lease term (in years): Operating leases 14 7 6 Finance leases 20 20 3 Weighted-average discount rate: Operating leases 5.87 % 3.69 % 3.76 % Finance leases 14.91 % 14.92 % 3.94 % |
Schedule of Lease Cost | The components of lease costs were as follows: LESSEE INFORMATION ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1) (Dollars in millions) Three months ended March 31, 2019 Sempra Energy Consolidated SDG&E SoCalGas Operating lease costs $ 24 $ 8 $ 7 Finance lease costs: Amortization of ROU assets 5 4 1 Interest on lease liabilities 47 47 — Total finance lease costs 52 51 1 Short-term lease costs (2) 1 — — Variable lease costs (2) 92 90 2 Total lease costs $ 169 $ 149 $ 10 (1) Includes costs capitalized in PP&E. (2) |
Schedule of Lease Cash Flow Activity [Table Text Block] | Cash paid for amounts included in the measurement of lease liabilities was as follows: LESSEE INFORMATION ON THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in millions) Three months ended March 31, 2019 Sempra Energy Consolidated SDG&E SoCalGas Operating activities: Cash paid for operating leases $ 39 $ 8 $ 7 Cash paid for finance leases 43 43 — Financing activities: Cash paid for finance leases 5 4 1 Increase in operating lease obligations for right-of-use assets 552 142 117 Increase in finance lease obligations for investment in PP&E 7 4 3 |
Schedule of Operating Lease Maturity Payments | The table below presents the future minimum lease payments under previous U.S. GAAP: FUTURE MINIMUM LEASE PAYMENTS (Dollars in millions) December 31, 2018 Sempra Energy Consolidated SDG&E SoCalGas Build-to-suit lease Operating leases Capital leases Operating leases Capital leases Operating leases Capital leases 2019 $ 10 $ 77 $ 215 $ 23 $ 212 $ 26 $ 3 2020 11 55 210 22 210 22 — 2021 11 53 211 22 211 21 — 2022 11 50 211 21 211 20 — 2023 11 42 211 17 211 16 — Thereafter 217 253 3,196 48 3,196 28 — Total undiscounted lease payments $ 271 $ 530 4,254 $ 153 4,251 $ 133 3 Less: estimated executory costs (480 ) (480 ) — Less: imputed interest (2,483 ) (2,483 ) — Total future minimum lease payments $ 1,291 $ 1,288 $ 3 LESSEE MATURITY ANALYSIS OF LIABILITIES (Dollars in millions) March 31, 2019 Sempra Energy Consolidated SDG&E SoCalGas Operating leases Finance leases Operating leases Finance leases Operating leases Finance leases 2019 (excluding first three months of 2019) $ 60 $ 146 $ 24 $ 143 $ 20 $ 3 2020 69 190 25 189 22 1 2021 65 188 24 188 20 — 2022 59 188 21 188 17 — 2023 50 188 17 188 13 — Thereafter 479 2,806 42 2,805 31 1 Total undiscounted lease payments 782 3,706 153 3,701 123 5 Less: imputed interest (275 ) (2,429 ) (19 ) (2,429 ) (13 ) — Total lease liabilities 507 1,277 134 1,272 110 5 Less: current lease liabilities (52 ) (21 ) (24 ) (18 ) (22 ) (3 ) Long-term lease liabilities $ 455 $ 1,256 $ 110 $ 1,254 $ 88 $ 2 |
Schedule of Finance Lease Maturity Payments | The table below presents the future minimum lease payments under previous U.S. GAAP: FUTURE MINIMUM LEASE PAYMENTS (Dollars in millions) December 31, 2018 Sempra Energy Consolidated SDG&E SoCalGas Build-to-suit lease Operating leases Capital leases Operating leases Capital leases Operating leases Capital leases 2019 $ 10 $ 77 $ 215 $ 23 $ 212 $ 26 $ 3 2020 11 55 210 22 210 22 — 2021 11 53 211 22 211 21 — 2022 11 50 211 21 211 20 — 2023 11 42 211 17 211 16 — Thereafter 217 253 3,196 48 3,196 28 — Total undiscounted lease payments $ 271 $ 530 4,254 $ 153 4,251 $ 133 3 Less: estimated executory costs (480 ) (480 ) — Less: imputed interest (2,483 ) (2,483 ) — Total future minimum lease payments $ 1,291 $ 1,288 $ 3 LESSEE MATURITY ANALYSIS OF LIABILITIES (Dollars in millions) March 31, 2019 Sempra Energy Consolidated SDG&E SoCalGas Operating leases Finance leases Operating leases Finance leases Operating leases Finance leases 2019 (excluding first three months of 2019) $ 60 $ 146 $ 24 $ 143 $ 20 $ 3 2020 69 190 25 189 22 1 2021 65 188 24 188 20 — 2022 59 188 21 188 17 — 2023 50 188 17 188 13 — Thereafter 479 2,806 42 2,805 31 1 Total undiscounted lease payments 782 3,706 153 3,701 123 5 Less: imputed interest (275 ) (2,429 ) (19 ) (2,429 ) (13 ) — Total lease liabilities 507 1,277 134 1,272 110 5 Less: current lease liabilities (52 ) (21 ) (24 ) (18 ) (22 ) (3 ) Long-term lease liabilities $ 455 $ 1,256 $ 110 $ 1,254 $ 88 $ 2 |
Schedule of Operating Lease Payments to Be Received | We provide information below for leases for which we are the lessor. LESSOR INFORMATION – SEMPRA ENERGY (Dollars in millions) March 31, 2019 Assets subject to operating leases: Assets held for sale $ 148 Property, plant and equipment (1) $ 1,026 Accumulated depreciation (151 ) Property, plant and equipment, net $ 875 Maturity analysis of operating lease payments: 2019 (excluding first three months of 2019) $ 151 2020 200 2021 200 2022 200 2023 200 Thereafter 2,619 Total undiscounted cash flows $ 3,570 (1) Included in Machinery and Equipment — Pipelines and Storage within the major functional categories of PP&E. LESSOR INFORMATION ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – SEMPRA ENERGY (Dollars in millions) Three months ended March 31, 2019 2018 Minimum lease payments $ 50 $ 49 Variable lease payments 4 13 Total revenues from operating leases $ 54 $ 62 Depreciation expense $ 9 $ 17 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | The following tables show selected information by segment from our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as “All other” in the following tables consist primarily of activities of parent organizations, and include certain nominal amounts from our South American businesses that did not qualify for treatment as discontinued operations. SEGMENT INFORMATION (Dollars in millions) Three months ended March 31, 2019 2018 REVENUES SDG&E $ 1,145 $ 1,055 SoCalGas 1,361 1,126 Sempra Mexico 383 308 Sempra Renewables 7 25 Sempra LNG 141 104 Adjustments and eliminations — (1 ) Intersegment revenues (1) (139 ) (81 ) Total $ 2,898 $ 2,536 INTEREST EXPENSE SDG&E $ 103 $ 52 SoCalGas 34 27 Sempra Mexico 30 30 Sempra Renewables 3 5 Sempra LNG 4 8 All other 109 112 Intercompany eliminations (23 ) (28 ) Total $ 260 $ 206 INTEREST INCOME SDG&E $ 1 $ 1 Sempra Mexico 19 15 Sempra Renewables 10 2 Sempra LNG 14 13 All other 1 16 Intercompany eliminations (24 ) (18 ) Total $ 21 $ 29 DEPRECIATION AND AMORTIZATION SDG&E $ 186 $ 166 SoCalGas 147 135 Sempra Mexico 44 43 Sempra Renewables — 13 Sempra LNG 2 11 All other 4 4 Total $ 383 $ 372 INCOME TAX EXPENSE (BENEFIT) SDG&E $ 5 $ 56 SoCalGas 19 59 Sempra Mexico 72 155 Sempra Renewables (10 ) (7 ) Sempra LNG 4 12 All other (48 ) (33 ) Total $ 42 $ 242 EQUITY EARNINGS (LOSSES) Equity earnings before income tax: Sempra Renewables $ 3 $ 5 Sempra LNG 2 — 5 5 Equity earnings (losses) net of income tax: Sempra Texas Utility 94 15 Sempra Mexico 2 (41 ) 96 (26 ) Total $ 101 $ (21 ) SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Three months ended March 31, 2019 2018 EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES SDG&E $ 176 $ 170 SoCalGas 264 225 Sempra Texas Utility 94 15 Sempra Mexico 57 20 Sempra Renewables 13 21 Sempra LNG 5 (16 ) Discontinued operations (51 ) 21 All other (117 ) (109 ) Total $ 441 $ 347 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 356 $ 475 SoCalGas 324 403 Sempra Mexico 85 59 Sempra Renewables — 31 Sempra LNG 18 6 All other — 5 Total $ 783 $ 979 March 31, 2019 December 31, 2018 ASSETS SDG&E $ 19,558 $ 19,225 SoCalGas 15,904 15,389 Sempra Texas Utility 9,748 9,652 Sempra Mexico 9,382 9,165 Sempra Renewables 1,310 2,549 Sempra LNG 3,731 4,060 Discontinued operations 3,845 3,718 All other 1,135 1,070 Intersegment receivables (2,995 ) (4,190 ) Total $ 61,618 $ 60,638 EQUITY METHOD AND OTHER INVESTMENTS Sempra Texas Utility $ 9,748 $ 9,652 Sempra Mexico 737 747 Sempra Renewables 290 291 Sempra LNG 1,255 1,271 All other 8 11 Total $ 12,038 $ 11,972 (1) Revenues for reportable segments include intersegment revenues of $1 million , $17 million , $28 million and $93 million for the three months ended March 31, 2019 and $1 million , $17 million , $29 million and $34 million for the three months ended March 31, 2018 |
GENERAL INFORMATION AND OTHER_4
GENERAL INFORMATION AND OTHER FINANCIAL DATA PRINCIPLES OF CONSOLIDATION (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 6 |
GENERAL INFORMATION AND OTHER_5
GENERAL INFORMATION AND OTHER FINANCIAL DATA - REGULATED OPERATIONS (Details) | Mar. 31, 2019 |
Oncor Electric Delivery Company LLC. [Member] | Sempra Texas Utility [Member] | |
Regulatory Assets [Line Items] | |
Ownership Percentage | 80.25% |
GENERAL INFORMATION AND OTHER_6
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 78 | $ 102 | [1] |
Restricted cash, current | 41 | 35 | [1] |
Restricted cash, noncurrent | 21 | 21 | [1] |
Cash and cash equivalents | 67 | 88 | |
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | 207 | 246 | |
San Diego Gas and Electric Company [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 10 | 8 | [1] |
Restricted cash, current | 21 | 11 | [1] |
Restricted cash, noncurrent | 18 | 18 | [1] |
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | $ 49 | $ 37 | |
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHER_7
GENERAL INFORMATION AND OTHER FINANCIAL DATA - INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Inventory [Line Items] | |||
Natural gas | $ 21 | $ 95 | |
LNG | 7 | 4 | |
Materials and supplies | 161 | 159 | |
Inventory | 189 | 258 | [1] |
SDG&E [Member] | |||
Inventory [Line Items] | |||
Natural gas | 0 | 0 | |
LNG | 0 | 0 | |
Materials and supplies | 99 | 102 | |
Inventory | 99 | 102 | |
SoCalGas [Member] | |||
Inventory [Line Items] | |||
Natural gas | 12 | 92 | |
LNG | 0 | 0 | |
Materials and supplies | 46 | 42 | |
Inventory | 58 | 134 | |
Sempra Mexico [Member] | |||
Inventory [Line Items] | |||
Natural gas | 0 | 0 | |
LNG | 7 | 4 | |
Materials and supplies | 16 | 15 | |
Inventory | 23 | 19 | |
Sempra LNG [Member] | |||
Inventory [Line Items] | |||
Natural gas | 9 | 3 | |
LNG | 0 | 0 | |
Materials and supplies | 0 | 0 | |
Inventory | $ 9 | $ 3 | |
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHER_8
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CAPITALIZED FINANCING COSTS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Capitalized Financing Costs Disclosure [Line Items] | ||
Total capitalized financing costs | $ 47 | $ 49 |
San Diego Gas and Electric Company [Member] | ||
Capitalized Financing Costs Disclosure [Line Items] | ||
Total capitalized financing costs | 17 | 24 |
Southern California Gas Company [Member] | ||
Capitalized Financing Costs Disclosure [Line Items] | ||
Total capitalized financing costs | $ 11 | $ 13 |
GENERAL INFORMATION AND OTHER_9
GENERAL INFORMATION AND OTHER FINANCIAL DATA - VARIABLE INTEREST ENTITIES (Details) $ in Millions | Mar. 09, 2018 | Mar. 31, 2019USD ($)MW | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Variable Interest Entities [Line Items] | |||||
Equity method investment | $ 9,748 | $ 9,652 | [1] | ||
Energy-related businesses | 383 | $ 346 | |||
Operation and maintenance | (832) | (741) | |||
Depreciation and amortization | (383) | (372) | |||
Interest expense | (260) | (206) | |||
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 501 | 593 | |||
Income tax expense | (42) | (242) | |||
Net income | 518 | 358 | |||
(Earnings) losses attributable to noncontrolling interest | (41) | 17 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Variable Interest Entities [Line Items] | |||||
Assets of VIEs | 502 | 286 | |||
Sempra Texas Utility [Member] | Oncor Holdings [Member] | |||||
Variable Interest Entities [Line Items] | |||||
Equity method investment | 9,748 | 9,652 | |||
Commitment to invest | 1,025 | ||||
Management Agreement Termination Fee | 40 | ||||
Sempra Renewables [Member] | Tax Equity Investors [Member] | |||||
Variable Interest Entities [Line Items] | |||||
Equity | 161 | 158 | |||
Energy-related businesses | 6 | 17 | |||
Operation and maintenance | (2) | (4) | |||
Depreciation and amortization | (3) | (11) | |||
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 1 | 2 | |||
Income tax expense | 1 | (5) | |||
Net income | 2 | (3) | |||
(Earnings) losses attributable to noncontrolling interest | (3) | 21 | |||
Earnings attributable to common shares | (1) | 18 | |||
Sempra Natural Gas [Member] | Cameron LNG Holdings [Member] | |||||
Variable Interest Entities [Line Items] | |||||
Equity method investment | 1,255 | 1,271 | |||
San Diego Gas and Electric Company [Member] | |||||
Variable Interest Entities [Line Items] | |||||
Operation and maintenance | 286 | 248 | |||
Depreciation and amortization | 186 | 166 | |||
Operating income | 262 | 248 | |||
Interest expense | (103) | (52) | |||
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 182 | 225 | |||
Income tax expense | (5) | (56) | |||
Net income | 177 | 169 | |||
(Earnings) losses attributable to noncontrolling interest | $ (1) | 1 | |||
San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member] | |||||
Variable Interest Entities [Line Items] | |||||
Generating capacity | MW | 605 | ||||
Conditional purchase obligation | $ 280 | ||||
Equity of variable interest entity | 102 | $ 100 | |||
Secured debt of variable interest entity | 220 | ||||
Cost of electric fuel and purchased power | (16) | (16) | |||
Operation and maintenance | 4 | 4 | |||
Depreciation and amortization | 7 | 8 | |||
Total operating expenses | (5) | (4) | |||
Operating income | 5 | 4 | |||
Interest expense | (4) | (5) | |||
Net income | 1 | (1) | |||
(Earnings) losses attributable to noncontrolling interest | (1) | 1 | |||
Earnings attributable to common shares | $ 0 | $ 0 | |||
Oncor Holdings [Member] | Sempra Texas Holdings Corp [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | |||||
Variable Interest Entities [Line Items] | |||||
Ownership percentage in consolidated entity | 100.00% | ||||
Oncor Electric Delivery Company LLC. [Member] | |||||
Variable Interest Entities [Line Items] | |||||
Acquired percentage interest | 80.25% | ||||
Oncor Electric Delivery Company LLC. [Member] | Sempra Texas Holdings Corp [Member] | |||||
Variable Interest Entities [Line Items] | |||||
Acquired percentage interest | 80.03% | ||||
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_10
GENERAL INFORMATION AND OTHER FINANCIAL DATA - PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 27 | $ 33 |
Interest cost | 35 | 35 |
Expected return on assets | (36) | (42) |
Prior service cost (credit) | 3 | 3 |
Actuarial loss (gain) | 14 | 9 |
Settlement charges | 0 | 14 |
Net periodic benefit cost (credit) | 43 | 52 |
Regulatory adjustment | (36) | (45) |
Total expense recognized | 7 | 7 |
Contributions by employer | 9 | |
Expected contributions in current fiscal year | 234 | |
Pension benefits [Member] | San Diego Gas and Electric Company [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 8 | 8 |
Interest cost | 9 | 9 |
Expected return on assets | (11) | (13) |
Prior service cost (credit) | 1 | 0 |
Actuarial loss (gain) | 4 | 1 |
Settlement charges | 0 | 14 |
Net periodic benefit cost (credit) | 11 | 19 |
Regulatory adjustment | (11) | (19) |
Total expense recognized | 0 | 0 |
Contributions by employer | 0 | |
Expected contributions in current fiscal year | 40 | |
Pension benefits [Member] | Southern California Gas Company [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 16 | 22 |
Interest cost | 23 | 23 |
Expected return on assets | (24) | (26) |
Prior service cost (credit) | 2 | 2 |
Actuarial loss (gain) | 9 | 6 |
Net periodic benefit cost (credit) | 26 | 27 |
Regulatory adjustment | (25) | (26) |
Total expense recognized | 1 | 1 |
Contributions by employer | 1 | |
Expected contributions in current fiscal year | 118 | |
Other postretirement benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 4 | 6 |
Interest cost | 9 | 9 |
Expected return on assets | (18) | (18) |
Prior service cost (credit) | 0 | 0 |
Actuarial loss (gain) | (2) | (1) |
Settlement charges | 0 | 0 |
Net periodic benefit cost (credit) | (7) | (4) |
Regulatory adjustment | 7 | 4 |
Total expense recognized | 0 | 0 |
Contributions by employer | 2 | |
Expected contributions in current fiscal year | 9 | |
Other postretirement benefits [Member] | San Diego Gas and Electric Company [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 2 | 2 |
Expected return on assets | (3) | (3) |
Prior service cost (credit) | 1 | 1 |
Actuarial loss (gain) | (1) | (1) |
Settlement charges | 0 | 0 |
Net periodic benefit cost (credit) | 0 | 0 |
Regulatory adjustment | 0 | 0 |
Total expense recognized | 0 | 0 |
Contributions by employer | 0 | |
Expected contributions in current fiscal year | 0 | |
Other postretirement benefits [Member] | Southern California Gas Company [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 3 | 4 |
Interest cost | 7 | 7 |
Expected return on assets | (14) | (14) |
Prior service cost (credit) | (1) | (1) |
Actuarial loss (gain) | (2) | 0 |
Net periodic benefit cost (credit) | (7) | (4) |
Regulatory adjustment | 7 | 4 |
Total expense recognized | 0 | $ 0 |
Contributions by employer | 0 | |
Expected contributions in current fiscal year | $ 1 |
GENERAL INFORMATION AND OTHE_11
GENERAL INFORMATION AND OTHER FINANCIAL DATA - RABBI TRUST (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Rabbi trust | $ 413 | $ 416 | [1] |
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_12
GENERAL INFORMATION AND OTHER FINANCIAL DATA - EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Income from continuing operations, net of income tax | $ 560 | $ 330 |
(Earnings) losses attributable to noncontrolling interests | (32) | 24 |
Mandatory convertible preferred stock dividends | (36) | (28) |
Earnings from continuing operations attributable to common shares | 492 | 326 |
(Loss) income from discontinued operations, net of income tax | (42) | 28 |
(Losses) earnings from discontinued operations attributable to common shares | (51) | 21 |
Earnings attributable to common shares | $ 441 | $ 347 |
Weighted-average common shares outstanding for basic EPS | 274,674,000 | 257,932,000 |
Dilutive effect of stock options, RSAs and RSUs (in shares) | 969,000 | 933,000 |
Dilutive effect of common stock forward shares (in shares) | 1,585,000 | 625,000 |
Weighted-average common shares outstanding for diluted EPS (in shares) | 277,228,000 | 259,490,000 |
Earnings from continuing operations attributable to common shares (in usd per share) | $ 1.79 | $ 1.26 |
(Losses) earnings from discontinued operations attributable to common shares (in usd per share) | (0.19) | 0.08 |
Earnings attributable to common shares (in usd per share) | 1.60 | 1.34 |
Earnings from continuing operations attributable to common shares (in usd per share) | 1.78 | 1.25 |
(Losses) earnings from discontinued operations attributable to common shares (in usd per share) | (0.19) | 0.08 |
Earnings from continuing operations attributable to common shares (n usd per share) | $ 1.59 | $ 1.33 |
Vested RSUs included in basic WASO (in shares) | 613,000 | 628,000 |
Non-qualified stock options granted (in shares) | 261,075 | |
Convertible Preferred Stock [Member] | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Antidilutive securities excluded from earnings per share (in shares) | 18,601,085 | 15,592,572 |
Stock options, RSAs and RSUs [Member] | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Antidilutive securities excluded from earnings per share (in shares) | 316,385 | 80,449 |
Employee Stock Option [Member] | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Exercisable period | 3 years | |
Performance-based RSUs [Member] | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Equity awards, granted (in shares) | 384,373 | |
Service-based RSUs [Member] | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Equity awards, granted (in shares) | 214,502 |
GENERAL INFORMATION AND OTHE_13
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | [1] | $ 17,138 | |||
Cumulative-effect adjustment from change in accounting principle | $ 15 | $ (1) | |||
AOCI, ending balance | 17,346 | ||||
Foreign currency translation adjustments [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (564) | $ (420) | |||
Cumulative-effect adjustment from change in accounting principle | 0 | 0 | |||
OCI before reclassifications | 32 | 24 | |||
Amounts reclassified from AOCI | 0 | 0 | |||
Net OCI | 32 | 24 | |||
AOCI, ending balance | (532) | (396) | |||
Financial instruments [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (82) | (122) | |||
Cumulative-effect adjustment from change in accounting principle | (25) | (3) | |||
OCI before reclassifications | (45) | 66 | |||
Amounts reclassified from AOCI | (1) | (8) | |||
Net OCI | (46) | 58 | |||
AOCI, ending balance | (153) | (67) | |||
Pension and other postretirement benefits [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (118) | (84) | |||
Cumulative-effect adjustment from change in accounting principle | (17) | 0 | |||
OCI before reclassifications | 1 | 0 | |||
Amounts reclassified from AOCI | 2 | 2 | |||
Net OCI | 3 | 2 | |||
AOCI, ending balance | (132) | (82) | |||
Total accumulated other comprehensive income (loss) [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (764) | (626) | |||
Cumulative-effect adjustment from change in accounting principle | (42) | $ (3) | |||
OCI before reclassifications | (12) | 90 | |||
Amounts reclassified from AOCI | 1 | (6) | |||
Net OCI | (11) | 84 | |||
AOCI, ending balance | (817) | (545) | |||
San Diego Gas and Electric Company [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | [1] | 6,015 | |||
Cumulative-effect adjustment from change in accounting principle | 0 | ||||
AOCI, ending balance | 6,191 | ||||
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 | (10) | (8) | |||
Cumulative-effect adjustment from change in accounting principle | (2) | ||||
AOCI, ending balance | (12) | (8) | |||
San Diego Gas and Electric Company [Member] | Total accumulated other comprehensive income (loss) [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (10) | (8) | |||
Cumulative-effect adjustment from change in accounting principle | (2) | ||||
AOCI, ending balance | (12) | (8) | |||
Southern California Gas Company [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | [1] | 4,258 | |||
Cumulative-effect adjustment from change in accounting principle | (2) | ||||
AOCI, ending balance | 4,520 | ||||
Southern California Gas Company [Member] | Financial instruments [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (12) | (13) | |||
Cumulative-effect adjustment from change in accounting principle | (2) | ||||
AOCI, ending balance | (14) | (13) | |||
Southern California Gas Company [Member] | Pension and other postretirement benefits [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (8) | (8) | |||
Cumulative-effect adjustment from change in accounting principle | (2) | ||||
AOCI, ending balance | (10) | (8) | |||
Southern California Gas Company [Member] | Total accumulated other comprehensive income (loss) [Member] | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
AOCI, beginning balance | (20) | (21) | |||
Cumulative-effect adjustment from change in accounting principle | $ (4) | ||||
AOCI, ending balance | $ (24) | $ (21) | |||
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_14
GENERAL INFORMATION AND OTHER FINANCIAL DATA - RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (260) | $ (206) |
Other income, net | (82) | (152) |
Equity earnings (losses) | 101 | (21) |
Energy-related businesses | 383 | 346 |
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 501 | 593 |
Income tax benefit (expense) | 42 | 242 |
Net income | (518) | (358) |
Earnings attributable to noncontrolling interest | (41) | 17 |
Earnings attributable to common shares | 441 | 347 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Earnings attributable to common shares | 1 | (6) |
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 from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 0 | (16) |
Income tax benefit (expense) | 0 | (3) |
Net income | 0 | 13 |
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 | (2) |
Other income, net | (3) | (18) |
Equity earnings (losses) | 1 | 4 |
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] | ||
Energy-related businesses | 1 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Noncontrolling Interests [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Earnings attributable to noncontrolling interest | (1) | 5 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Parent [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Earnings attributable to common shares | (1) | (8) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Pension and Other Postretirement Benefits [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income, net | 2 | 3 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income, net | 1 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and Other Postretirement Benefits [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 3 | 3 |
Income tax benefit (expense) | (1) | (1) |
Net income | 2 | 2 |
San Diego Gas and Electric Company [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | (103) | (52) |
Other income, net | (22) | (28) |
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 182 | 225 |
Income tax benefit (expense) | 5 | 56 |
Net income | (177) | (169) |
Earnings attributable to noncontrolling interest | (1) | 1 |
Earnings attributable to common shares | 176 | 170 |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Earnings attributable to common shares | 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 | 1 | 3 |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Noncontrolling Interests [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Earnings attributable to noncontrolling interest | $ (1) | $ (3) |
GENERAL INFORMATION AND OTHE_15
GENERAL INFORMATION AND OTHER FINANCIAL DATA - SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST (Details) - USD ($) $ / shares in Units, $ in Millions | May 07, 2019 | Jul. 31, 2018 | Jan. 31, 2018 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jul. 13, 2018 | Jan. 09, 2018 |
Subsidiary, Sale of Stock [Line Items] | ||||||||
Proceeds from issuance | $ 0 | $ 1,693 | ||||||
Proceeds from issuance | $ 11 | $ 1,278 | ||||||
Public Offering [Member] | Common Stock [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Shares issued | 11,212,500 | 26,869,158 | ||||||
Shares issued (in usd per share) | $ 113.75 | $ 107 | ||||||
Shares issued net of underwriting discount (in usd per share) | $ 111.87 | $ 105.07 | ||||||
Proceeds from issuance | $ 1,270 | |||||||
Over-Allotment Option [Member] | Common Stock [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Proceeds from issuance | $ 164 | $ 367 | ||||||
Settlement of Forward Sale Contracts [Member] | Common Stock [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Proceeds from issuance | $ 800 | |||||||
Sempra Energy [Member] | Series A Preferred Stock [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Shares issued | 17,250,000 | |||||||
Proceeds from issuance | $ 1,690 | |||||||
Liquidation price (in usd per share) | $ 100 | |||||||
Sempra Energy [Member] | Series B Preferred Stock [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Shares issued | 5,750,000 | |||||||
Proceeds from issuance | $ 565 | |||||||
Liquidation price (in usd per share) | $ 100 | |||||||
Subsequent Event [Member] | Settlement of Forward Sale Contracts [Member] | Common Stock [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Shares issuable under forward contracts | 16,906,185 |
GENERAL INFORMATION AND OTHE_16
GENERAL INFORMATION AND OTHER FINANCIAL DATA - OTHER NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions | Feb. 07, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Noncontrolling Interest [Line Items] | |||||
Repurchases of common stock | $ 14 | $ 19 | |||
Other noncontrolling interests | $ 2,104 | $ 2,090 | [1] | ||
Infraestructura Energética Nova [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Common stock repurchased (in shares) | 1,600,000 | ||||
Repurchases of common stock | $ 6 | ||||
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% | |||
Other noncontrolling interests | $ 102 | $ 100 | |||
Sempra Mexico [Member] | IEnova [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 33.40% | 33.50% | |||
Other noncontrolling interests | $ 1,611 | $ 1,592 | |||
Sempra Mexico [Member] | Ownership Interests Held By Others, IEnova, Subsidiary One [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Other noncontrolling interests | $ 13 | $ 13 | |||
Sempra Mexico [Member] | Ownership Interests Held By Others, IEnova, Subsidiary One [Member] | Minimum [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 10.00% | 10.00% | |||
Sempra Mexico [Member] | Ownership Interests Held By Others, IEnova, Subsidiary One [Member] | Maximum [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 47.60% | 49.00% | |||
Sempra Renewables [Member] | Tax equity arrangement – wind [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Other noncontrolling interests | $ 161 | $ 158 | |||
Sempra Renewables [Member] | PXISE Energy Solutions LLC [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 11.10% | 11.10% | |||
Other noncontrolling interests | $ 0 | $ 1 | |||
Sempra LNG [Member] | Bay Gas Storage Company, Ltd. [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 0.00% | 9.10% | |||
Other noncontrolling interests | $ 0 | $ 18 | |||
Sempra LNG [Member] | Liberty Gas Storage, LLC [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 24.60% | 24.60% | |||
Other noncontrolling interests | $ (12) | $ (12) | |||
Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Other noncontrolling interests | $ 24 | $ 23 | |||
Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member] | Minimum [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 19.70% | 19.70% | |||
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% | |||
Other noncontrolling interests | $ 201 | $ 193 | |||
Sempra South American Utilities [Member] | Tecsur [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 9.80% | 9.80% | |||
Other noncontrolling interests | $ 4 | $ 4 | |||
Infraestructura Energética Nova [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership interest | 66.60% | 66.50% | |||
Bay Gas [Member] | Sempra LNG [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Payment to acquire remaining interest in Bay Gas | $ 20 | ||||
Sale of interest | 100.00% | ||||
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_17
GENERAL INFORMATION AND OTHER FINANCIAL DATA - DUE TO DUE FROM AFFILIATES (Details) $ in Billions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2019MXN ($) | ||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | $ 50,000,000 | $ 37,000,000 | [1] | |
Due from unconsolidated affiliates - noncurrent | 668,000,000 | 644,000,000 | [1] | |
Due to unconsolidated affiliates, current | (10,000,000) | (10,000,000) | [1] | |
Due to unconsolidated affiliates - noncurrent | $ (38,000,000) | $ (37,000,000) | [1] | |
ESJ joint venture [Member] | LIBOR [Member] | ||||
Related Party Transaction [Line Items] | ||||
Spread on variable rate | 6.375% | 6.375% | ||
Interest rate on due from affiliate, noncurrent | 8.89% | |||
TAG Pipeline Norte [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest rate on due from affiliate, noncurrent | 5.54% | |||
TAG Pipeline Norte [Member] | LIBOR [Member] | ||||
Related Party Transaction [Line Items] | ||||
Spread on variable rate | 2.90% | 2.90% | ||
California Utilities Combined [Member] | ||||
Related Party Transaction [Line Items] | ||||
Maximum borrowing capacity | $ 1,000,000,000 | |||
San Diego Gas and Electric Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (63,000,000) | $ (61,000,000) | [1] | |
Maximum borrowing capacity | 750,000,000 | |||
San Diego Gas and Electric Company [Member] | Due to/from Sempra Energy [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (37,000,000) | (43,000,000) | ||
Income taxes due (to) from Sempra Energy | (29,000,000) | 5,000,000 | ||
San Diego Gas and Electric Company [Member] | Due to/from SoCalGas [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (14,000,000) | (6,000,000) | ||
San Diego Gas and Electric Company [Member] | Due to/from Other affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (12,000,000) | (12,000,000) | ||
Southern California Gas Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 15,000,000 | 7,000,000 | [1] | |
Due to unconsolidated affiliates, current | (42,000,000) | (34,000,000) | [1] | |
Maximum borrowing capacity | 750,000,000 | |||
Southern California Gas Company [Member] | Due to/from Sempra Energy [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (39,000,000) | (34,000,000) | ||
Income taxes due (to) from Sempra Energy | (88,000,000) | (4,000,000) | ||
Southern California Gas Company [Member] | Due to/from Other affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 1,000,000 | 1,000,000 | ||
Due to unconsolidated affiliates, current | (3,000,000) | 0 | ||
Southern California Gas Company [Member] | Due to/from SDG&E | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 14,000,000 | 6,000,000 | ||
Sempra Mexico [Member] | IMG [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - noncurrent | 668,000,000 | $ 641,000,000 | ||
Maximum borrowing capacity | $ 729,000,000 | $ 14.2 | ||
Sempra Mexico [Member] | IMG [Member] | Interbank Equilibrium Rate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Spread on variable rate | 2.20% | 2.20% | ||
Interest rate on due from affiliate, noncurrent | 10.69% | |||
Sempra Mexico [Member] | ESJ joint venture [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - noncurrent | $ 0 | $ 3,000,000 | ||
Sempra Mexico [Member] | TAG Pipeline Norte [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates - noncurrent | $ 38,000,000 | $ 37,000,000 | ||
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_18
GENERAL INFORMATION AND OTHER FINANCIAL DATA - AFFILIATES REVENUE AND COST OF SALES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 14 | $ 16 |
Costs of sales to related parties | 14 | 12 |
San Diego Gas and Electric Company [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | 1 | 2 |
Costs of sales to related parties | 20 | 19 |
Southern California Gas Company [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | 17 | 17 |
Costs of sales to related parties | $ 4 | $ 0 |
GENERAL INFORMATION AND OTHE_19
GENERAL INFORMATION AND OTHER FINANCIAL DATA - OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Other Income [Line Items] | |||
Allowance for equity funds used during construction | $ 21 | $ 27 | |
Investment gains (losses) | 26 | (1) | |
Gains on interest rate and foreign exchange instruments, net | 13 | 62 | |
Foreign currency transaction gains, net | 7 | 30 | |
Non-service component of net periodic benefit credit | 24 | 32 | |
Penalties related to billing practices OII | (8) | 0 | |
Interest on regulatory balancing accounts, net | (1) | 0 | |
Sundry, net | 0 | 2 | |
Total | 82 | 152 | |
San Diego Gas and Electric Company [Member] | |||
Other Income [Line Items] | |||
Allowance for equity funds used during construction | 12 | 18 | |
Non-service component of net periodic benefit credit | 9 | 9 | |
Sundry, net | 1 | 1 | |
Total | 22 | 28 | |
Southern California Gas Company [Member] | |||
Other Income [Line Items] | |||
Allowance for equity funds used during construction | 8 | 9 | |
Non-service component of net periodic benefit credit | 18 | 25 | |
Penalties related to billing practices OII | $ (8) | (8) | 0 |
Interest on regulatory balancing accounts, net | (1) | 0 | |
Sundry, net | (1) | (1) | |
Total | 16 | 33 | |
Sempra Mexico [Member] | IMG [Member] | |||
Other Income [Line Items] | |||
Foreign currency gain | $ 10 | $ 39 |
GENERAL INFORMATION AND OTHE_20
GENERAL INFORMATION AND OTHER FINANCIAL DATA - INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||
Income Tax Expense (Benefit) | $ 42 | $ 242 |
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 501 | 593 |
Equity (losses) earnings, before income tax | 5 | 5 |
Pretax income | $ 506 | $ 598 |
Effective income tax rate | 8.00% | 40.00% |
Income tax expense related to outside basis differences existing prior to the January 25, 2019 approval of our plan to sell our South American businesses | $ 103 | |
Income tax expense related to the increase in outside basis differences from 2019 earnings since January 25, 2019 | 13 | |
San Diego Gas and Electric Company [Member] | ||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||
Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Deferred Tax Assets and Liabilities, Income Tax (Expense) Benefit, Recognized in Period | 31 | |
Income Tax Expense (Benefit) | 5 | $ 56 |
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 182 | 225 |
Pretax income | $ 182 | $ 225 |
Effective income tax rate | 3.00% | 25.00% |
Southern California Gas Company [Member] | ||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||
Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Deferred Tax Assets and Liabilities, Income Tax (Expense) Benefit, Recognized in Period | $ 35 | |
Income Tax Expense (Benefit) | 19 | $ 59 |
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 283 | 284 |
Pretax income | $ 283 | $ 284 |
Effective income tax rate | 7.00% | 21.00% |
NEW ACCOUNTING STANDARDS (Detai
NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | [1] |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Sundry | $ 262 | $ 249 | ||
Property, plant and equipment, net | 34,698 | 34,439 | ||
Right-of-use assets – operating leases | 612 | |||
Deferred Income Tax Assets, Net | 139 | 141 | ||
Deferred income tax assets | 2,622 | 2,321 | ||
Other current liabilities | 993 | 935 | ||
Deferred credits and other | 1,949 | 1,493 | ||
Retained earnings | 10,337 | 10,104 | ||
Regulatory liabilities | 3,996 | 4,016 | ||
Accumulated other comprehensive income (loss) | (817) | (764) | ||
Accounting Standards Update 2016-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Sundry | $ (71) | |||
Property, plant and equipment, net | (147) | |||
Right-of-use assets – operating leases | 603 | |||
Deferred Income Tax Assets, Net | (3) | |||
Other current liabilities | 80 | |||
Long-term debt | (138) | |||
Deferred credits and other | 436 | |||
Retained earnings | 17 | |||
Accounting Standards Update 2018-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | 40 | |||
Regulatory liabilities | 2 | |||
Accumulated other comprehensive income (loss) | 42 | |||
San Diego Gas and Electric Company [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Sundry | 26 | 5 | ||
Property, plant and equipment, net | 16,464 | 16,310 | ||
Right-of-use assets – operating leases | 135 | |||
Deferred income tax assets | 1,653 | 1,616 | ||
Other current liabilities | 280 | 141 | ||
Deferred credits and other | 610 | 488 | ||
Retained earnings | 4,865 | 4,687 | ||
Regulatory liabilities | 2,470 | 2,404 | ||
Accumulated other comprehensive income (loss) | (12) | (10) | ||
San Diego Gas and Electric Company [Member] | Accounting Standards Update 2016-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Sundry | 0 | |||
Property, plant and equipment, net | 0 | |||
Right-of-use assets – operating leases | 130 | |||
Deferred Tax Assets, Net | 0 | |||
Other current liabilities | 20 | |||
Long-term debt | 0 | |||
Deferred credits and other | 110 | |||
Retained earnings | 0 | |||
San Diego Gas and Electric Company [Member] | Accounting Standards Update 2018-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | 2 | |||
Accumulated other comprehensive income (loss) | 2 | |||
Southern California Gas Company [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Sundry | 39 | 31 | ||
Property, plant and equipment, net | 12,581 | 12,439 | ||
Right-of-use assets – operating leases | 110 | |||
Deferred income tax assets | 1,204 | 1,177 | ||
Other current liabilities | 333 | 217 | ||
Deferred credits and other | 422 | 330 | ||
Retained earnings | 3,656 | 3,390 | ||
Regulatory liabilities | 1,526 | 1,612 | ||
Accumulated other comprehensive income (loss) | $ (24) | $ (20) | ||
Southern California Gas Company [Member] | Accounting Standards Update 2016-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Sundry | 0 | |||
Property, plant and equipment, net | 0 | |||
Right-of-use assets – operating leases | 116 | |||
Deferred Tax Assets, Net | 0 | |||
Other current liabilities | 23 | |||
Long-term debt | 0 | |||
Deferred credits and other | 93 | |||
Retained earnings | 0 | |||
Southern California Gas Company [Member] | Accounting Standards Update 2018-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | 2 | |||
Regulatory liabilities | 2 | |||
Accumulated other comprehensive income (loss) | 4 | |||
Disposal Group Held-for-sale [Member] | Accounting Standards Update 2016-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Assets Held-for-sale, Not Part of Disposal Group, Current | 13 | |||
Disposal Group Held-for-sale [Member] | San Diego Gas and Electric Company [Member] | Accounting Standards Update 2016-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Assets Held-for-sale, Not Part of Disposal Group, Current | 0 | |||
Disposal Group Held-for-sale [Member] | Southern California Gas Company [Member] | Accounting Standards Update 2016-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Assets Held-for-sale, Not Part of Disposal Group, Current | $ 0 | |||
[1] | Derived from audited financial statements. |
REVENUES - DISAGGREGATION OF RE
REVENUES - DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 3,043 | $ 2,471 |
Utilities regulatory revenues | (258) | (31) |
Other revenues | 113 | 96 |
Total revenues | 2,898 | 2,536 |
Utilities service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 2,773 | 2,221 |
Midstream service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 179 | 176 |
Renewables service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 24 | 33 |
Other service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 67 | 41 |
Electric market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,087 | 1,034 |
Gas market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,956 | 1,437 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,236 | 1,131 |
Utilities regulatory revenues | (91) | (76) |
Other revenues | 0 | 0 |
Total revenues | 1,145 | 1,055 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Utilities service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,236 | 1,131 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Midstream service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Renewables service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Other service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Electric market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 997 | 963 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Gas market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 239 | 168 |
Operating Segments [Member] | Southern California Gas Company [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,528 | 1,081 |
Utilities regulatory revenues | (167) | 45 |
Other revenues | 0 | 0 |
Total revenues | 1,361 | 1,126 |
Operating Segments [Member] | Southern California Gas Company [Member] | Utilities service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,528 | 1,081 |
Operating Segments [Member] | Southern California Gas Company [Member] | Midstream service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments [Member] | Southern California Gas Company [Member] | Renewables service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments [Member] | Southern California Gas Company [Member] | Other service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments [Member] | Southern California Gas Company [Member] | Electric market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments [Member] | Southern California Gas Company [Member] | Gas market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,528 | 1,081 |
Operating Segments [Member] | Sempra Mexico [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 284 | 234 |
Utilities regulatory revenues | 0 | 0 |
Other revenues | 99 | 74 |
Total revenues | 383 | 308 |
Operating Segments [Member] | Sempra Mexico [Member] | Utilities service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 27 | 28 |
Operating Segments [Member] | Sempra Mexico [Member] | Midstream service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 171 | 143 |
Operating Segments [Member] | Sempra Mexico [Member] | Renewables service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 20 | 22 |
Operating Segments [Member] | Sempra Mexico [Member] | Other service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 66 | 41 |
Operating Segments [Member] | Sempra Mexico [Member] | Electric market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 86 | 62 |
Operating Segments [Member] | Sempra Mexico [Member] | Gas market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 198 | 172 |
Operating Segments [Member] | Sempra Renewables [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 4 | 11 |
Utilities regulatory revenues | 0 | 0 |
Other revenues | 3 | 14 |
Total revenues | 7 | 25 |
Operating Segments [Member] | Sempra Renewables [Member] | Utilities service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments [Member] | Sempra Renewables [Member] | Midstream service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments [Member] | Sempra Renewables [Member] | Renewables service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 4 | 11 |
Operating Segments [Member] | Sempra Renewables [Member] | Other service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments [Member] | Sempra Renewables [Member] | Electric market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 4 | 11 |
Operating Segments [Member] | Sempra Renewables [Member] | Gas market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments [Member] | Sempra LNG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 68 | 57 |
Utilities regulatory revenues | 0 | 0 |
Other revenues | 73 | 47 |
Total revenues | 141 | 104 |
Operating Segments [Member] | Sempra LNG [Member] | Utilities service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments [Member] | Sempra LNG [Member] | Midstream service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 67 | 54 |
Operating Segments [Member] | Sempra LNG [Member] | Renewables service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 1 |
Operating Segments [Member] | Sempra LNG [Member] | Other service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1 | 2 |
Operating Segments [Member] | Sempra LNG [Member] | Electric market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1 | 2 |
Operating Segments [Member] | Sempra LNG [Member] | Gas market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 67 | 55 |
Consolidating Adjustments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (77) | (43) |
Utilities regulatory revenues | 0 | 0 |
Other revenues | (62) | (39) |
Total revenues | (139) | (82) |
Consolidating Adjustments [Member] | Utilities service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (18) | (19) |
Consolidating Adjustments [Member] | Midstream service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (59) | (21) |
Consolidating Adjustments [Member] | Renewables service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | (1) |
Consolidating Adjustments [Member] | Other service line [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | (2) |
Consolidating Adjustments [Member] | Electric market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (1) | (4) |
Consolidating Adjustments [Member] | Gas market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ (76) | $ (39) |
REVENUES - PERFORMANCE OBLIGATI
REVENUES - PERFORMANCE OBLIGATIONS (Details) $ in Millions | Mar. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 384 |
Revenues to be recognized, period of recognition | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 512 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 513 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 515 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 509 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 2,784 |
Revenues to be recognized, period of recognition | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 5,217 |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 2 |
Revenues to be recognized, period of recognition | 9 months |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 52 |
Revenues to be recognized, period of recognition | |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 66 |
REVENUES - CONTRACT LIABILITIES
REVENUES - CONTRACT LIABILITIES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, opening balance | $ (70) | $ 0 |
Adoption of ASC 606 adjustment | (61) | |
Revenue from performance obligations satisfied during reporting period | 1 | 5 |
Payments received in advance | (2) | (7) |
Contract liabilities, closing balance | (71) | (63) |
Other Current Liabilities [Member] | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | 0 | |
Deferred Credits and Other [Member] | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | (71) | |
San Diego Gas and Electric Company [Member] | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | 0 | 0 |
Southern California Gas Company [Member] | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | $ 0 | $ 0 |
REVENUES - RECEIVABLES FROM REV
REVENUES - RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | $ 1,166 | $ 1,127 |
Accounts receivable – trade, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 1,145 | 1,106 |
Accounts receivable – other, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 14 | 11 |
Due from unconsolidated affiliates – current [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 6 | 4 |
Assets held-for-sale [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 1 | 6 |
San Diego Gas and Electric Company [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 405 | 377 |
San Diego Gas and Electric Company [Member] | Accounts receivable – trade, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 390 | 368 |
San Diego Gas and Electric Company [Member] | Accounts receivable – other, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 12 | 6 |
San Diego Gas and Electric Company [Member] | Due from unconsolidated affiliates – current [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 3 | 3 |
Southern California Gas Company [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 676 | 639 |
Southern California Gas Company [Member] | Accounts receivable – trade, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 674 | 634 |
Southern California Gas Company [Member] | Accounts receivable – other, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | $ 2 | $ 5 |
REGULATORY MATTERS - REGULATORY
REGULATORY MATTERS - REGULATORY ACCOUNTS (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Net Regulatory Assets (Liabilities) Sempra Energy Consolidated [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | $ (2,594) | $ (2,394) |
San Diego Gas and Electric Company [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Regulatory balancing accounts - net undercollected, Noncurrent | 84 | 78 |
San Diego Gas and Electric Company [Member] | Fixed-price contracts and other derivatives [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (144) | (150) |
San Diego Gas and Electric Company [Member] | Deferred income taxes (refundable) recoverable in rates [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (171) | (236) |
San Diego Gas and Electric Company [Member] | Pension and other postretirement benefit plan obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 190 | 186 |
San Diego Gas and Electric Company [Member] | Removal obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (1,946) | (1,848) |
San Diego Gas and Electric Company [Member] | Unamortized loss on reacquired debt [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 6 | 7 |
San Diego Gas and Electric Company [Member] | Environmental costs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 27 | 28 |
San Diego Gas and Electric Company [Member] | Sunrise Powerlink fire mitigation [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 121 | 120 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Commodity – electric [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 60 | (8) |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Gas transportation [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 13 | 45 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Safety and reliability [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 77 | 70 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Public purpose programs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (80) | (62) |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Other balancing accounts [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 67 | 145 |
San Diego Gas and Electric Company [Member] | Other regulatory (liabilities) assets [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (199) | (177) |
San Diego Gas and Electric Company [Member] | Net Regulatory Assets (Liabilities) SDGE [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (1,979) | (1,880) |
Southern California Gas Company [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Regulatory balancing accounts - net undercollected, Noncurrent | 405 | 185 |
Southern California Gas Company [Member] | Deferred income taxes (refundable) recoverable in rates [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (248) | (336) |
Southern California Gas Company [Member] | Pension and other postretirement benefit plan obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 479 | 470 |
Southern California Gas Company [Member] | Employee benefit costs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 49 | 49 |
Southern California Gas Company [Member] | Removal obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (804) | (833) |
Southern California Gas Company [Member] | Unamortized loss on reacquired debt [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 6 | 7 |
Southern California Gas Company [Member] | Environmental costs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 32 | 28 |
Southern California Gas Company [Member] | Workers’ compensation [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 9 | 9 |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Commodity - gas including transportation | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 16 | 196 |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Safety and reliability [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 348 | 332 |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Public purpose programs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (289) | (325) |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Other balancing accounts [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (143) | (68) |
Southern California Gas Company [Member] | Other regulatory (liabilities) assets [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (160) | (130) |
Southern California Gas Company [Member] | Net Regulatory Assets (Liabilities) SoCalGas [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (705) | (601) |
Sempra Mexico [Member] | Deferred income taxes (refundable) recoverable in rates [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 81 | 81 |
Sempra Mexico [Member] | Other regulatory (liabilities) assets [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | $ 9 | $ 6 |
REGULATORY MATTERS - GENERAL RA
REGULATORY MATTERS - GENERAL RATE CASE (Details) - USD ($) $ in Millions | Oct. 06, 2017 | Apr. 30, 2018 | Mar. 31, 2019 |
San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement | $ 2,203 | $ 1,918 | |
GRC requested revenue requirement adjustment | 221 | $ 64 | |
Tax Cuts and Jobs Act, change in tax rate, change in revenue requirement | $ 58 | ||
Proposed annual attrition percentage | 4.00% | ||
San Diego Gas and Electric Company [Member] | General Rate Case [Member] | |||
General Rate Case [Line Items] | |||
Tracked income tax expense liability | 90 | ||
San Diego Gas and Electric Company [Member] | Future Refund of Rates to Customers [Member] | |||
General Rate Case [Line Items] | |||
Regulatory liability | 95 | ||
San Diego Gas and Electric Company [Member] | Future Refund of Rates to Customers - FERC [Member] | |||
General Rate Case [Line Items] | |||
Regulatory liability | 85 | ||
Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement | 2,937 | $ 2,695 | |
GRC requested revenue requirement adjustment | $ 481 | $ 239 | |
Tax Cuts and Jobs Act, change in tax rate, change in revenue requirement | 58 | ||
Southern California Gas Company [Member] | General Rate Case [Member] | |||
General Rate Case [Line Items] | |||
Tracked income tax expense liability | 95 | ||
Southern California Gas Company [Member] | Future Refund of Rates to Customers [Member] | |||
General Rate Case [Line Items] | |||
Regulatory liability | $ 91 | ||
Minimum [Member] | San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement adjustment percentage | 5.00% | ||
Minimum [Member] | Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement adjustment percentage | 6.00% | ||
Proposed annual attrition percentage | 4.00% | ||
Maximum [Member] | San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement adjustment percentage | 7.00% | ||
Maximum [Member] | Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement adjustment percentage | 8.00% | ||
Proposed annual attrition percentage | 5.00% | ||
Otay Mesa Energy Center [Member] | San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
Owning and operating costs | $ 68 |
REGULATORY MATTERS - COST OF CA
REGULATORY MATTERS - COST OF CAPITAL (Details) - Forecast [Member] - California Public Utilities Commission [Member] | Jan. 01, 2020 | Dec. 31, 2019 |
San Diego Gas and Electric Company [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Return On Rate Base | 10.03% | 7.55% |
San Diego Gas and Electric Company [Member] | Common Equity [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Authorized weighting | 56.00% | 52.00% |
Return on rate base | 14.30% | 10.20% |
Premium for wildfire risk | 3.40% | |
Southern California Gas Company [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Return On Rate Base | 7.85% | 7.34% |
Southern California Gas Company [Member] | Common Equity [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Authorized weighting | 56.00% | 52.00% |
Return on rate base | 10.70% | 10.05% |
REGULATORY MATTERS - BILLING PR
REGULATORY MATTERS - BILLING PRACTICES (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Public Utilities, General Disclosures [Line Items] | |||
Penalties related to billing practices OII | $ (8,000,000) | $ 0 | |
Southern California Gas Company [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Penalties related to billing practices OII | $ (8,000,000) | $ (8,000,000) | $ 0 |
Penalties related to billing practives, payable to general fund | 3,000,000 | ||
Total amount penalties credited to customers | $ 5,000,000 | ||
Number of days that customers bills were delayed | 45 days | ||
Penalty credit per customer | $ 100 |
ACQUISITIONS, DIVESTITURES AN_3
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS - ACQUISITION ACTIVITY (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 18, 2018 | Oct. 18, 2018 | Mar. 09, 2018 | Mar. 31, 2019 |
Oncor Electric Delivery Company LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired percentage interest | 80.25% | |||
Compania Transmisora del Norte Grande S.A. [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 208 | |||
Consideration | 226 | |||
Cash acquired | $ 18 | |||
Sempra Texas Holdings Corp [Member] | Oncor Electric Delivery Company LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired percentage interest | 80.03% | |||
Sempra Texas Holdings Corp [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | Oncor Holdings [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage in consolidated entity | 100.00% | |||
Sempra Texas Holdings Corp [Member] | Texas Transmission Investment LLC [Member] | Oncor Electric Delivery Company LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage held by noncontrolling owners | 19.75% | |||
Sempra Texas Holdings Corp [Member] | Oncor Holdings [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 9,450 | |||
Adjustment for dividends | $ 31 | |||
Sempra Texas Holdings Corp [Member] | Oncor Holdings [Member] | Oncor Electric Delivery Company LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage in consolidated entity | 80.25% | |||
Oncor Electric Delivery Company LLC Additional Acquisition [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | Oncor Holdings [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 26 | |||
Oncor Electric Delivery Company LLC Additional Acquisition [Member] | Oncor Electric Delivery Company LLC. [Member] | Oncor Holdings [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired percentage interest | 0.22% | |||
Compania Transmisora del Norte Grande S.A. [Member] | Sempra South American Utilities [Member] | Compania Transmisora del Norte Grande S.A. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired percentage interest | 100.00% | |||
InfraREIT Acquisition [Member] | Sempra Texas Utility [Member] | ||||
Business Acquisition [Line Items] | ||||
Consideration | $ 1,275 | |||
Acquisition price per share acquired | $ 21 | |||
Management agreement termination fee paid | $ 40 | |||
Debt assumed | $ 946 | |||
InfraREIT Acquisition [Member] | Sempra Texas Utility [Member] | InfraREIT [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired percentage interest | 100.00% | |||
InfraREIT Acquisition [Member] | Sempra Texas Utility [Member] | InfraREIT Partners [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired percentage interest | 100.00% | |||
Sharyland Holdings, LP [Member] | ||||
Business Acquisition [Line Items] | ||||
Commitment to invest | $ 1,025 | |||
Sharyland Holdings, LP [Member] | Sempra Texas Utility [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired percentage interest | 50.00% | |||
Consideration | $ 98 | |||
Sharyland Holdings, LP [Member] | Sempra Texas Utility [Member] | Sharyland Utilities [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage in consolidated entity | 50.00% | |||
Acquired percentage interest | 100.00% |
ACQUISITIONS, DIVESTITURES AN_4
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS - DIVESTITURES (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - Sempra LNG [Member] - USD ($) $ in Millions | Feb. 07, 2019 | Jan. 31, 2019 |
Mississippi Hub And Bay Gas [Member] | ||
Business Acquisition [Line Items] | ||
Consideration to be received | $ 322 | |
Other Non-Utility assets [Member] | ||
Business Acquisition [Line Items] | ||
Consideration to be received | $ 5 |
ACQUISITIONS, DIVESTITURES AN_5
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS - ASSETS HELD FOR SALE (Details) - USD ($) $ in Millions | Apr. 22, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 12,038 | $ 11,972 | |
Assets Held for Sale, Assets [Abstract] | |||
Cash and cash equivalents | 67 | 88 | |
Sempra Renewables [Member] | Disposal Group Held-for-sale [Member] | Wind Facilities [Member] | |||
Assets Held for Sale, Assets [Abstract] | |||
Cash and cash equivalents | 4 | ||
Accounts receivable – trade, net | 2 | ||
Other current assets | 2 | ||
Property, plant and equipment, net | 366 | ||
Total assets held for sale | 374 | ||
Assets Held for Sale, Liabilities [Abstract] | |||
Accounts payable – trade | 1 | ||
Asset retirement obligations | 6 | ||
Total liabilities held for sale | 7 | ||
Operating Segments [Member] | Sempra LNG [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 1,255 | $ 1,271 | |
Operating Segments [Member] | Sempra Renewables [Member] | Wind and Solar Investments [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 290 | ||
Subsequent Event [Member] | Sempra Renewables [Member] | Disposal Group Held-for-sale [Member] | Wind Facilities [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration to be received | $ 584 |
ACQUISITIONS, DIVESTITURES AN_6
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS - DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Loss) income from discontinued operations, net of income tax | $ (42) | $ 28 | ||
(Losses) earnings from discontinued operations attributable to common shares | (51) | 21 | ||
Cash and cash equivalents | 67 | $ 88 | ||
Noncurrent assets | 3,388 | 3,259 | [1] | |
Current liabilities | 375 | 368 | [1] | |
Noncurrent liabilities | 1,046 | 1,013 | [1] | |
Disposal Group Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Current assets | 457 | 459 | [1] | |
Disposal Group Held-for-sale [Member] | Sempra South American Utilities [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 421 | 426 | ||
Cost of sales | (265) | (293) | ||
Operating expenses | (45) | (54) | ||
Interest and other | (3) | (5) | ||
Income before income taxes and equity earnings of unconsolidated entities | 108 | 74 | ||
Income tax expense | (151) | (47) | ||
Equity earnings | 1 | 1 | ||
(Loss) income from discontinued operations, net of income tax | (42) | 28 | ||
Earnings attributable to noncontrolling interests | (9) | (7) | ||
(Losses) earnings from discontinued operations attributable to common shares | (51) | $ 21 | ||
Cash and cash equivalents | 67 | 88 | ||
Accounts receivable, net | 331 | 315 | ||
Due from unconsolidated affiliates | 3 | 2 | ||
Inventories | 41 | 38 | ||
Other current assets | 15 | 16 | ||
Current assets | 457 | 459 | ||
Due from unconsolidated affiliates | 46 | 44 | ||
Goodwill and other intangible assets | 834 | 819 | ||
Property, plant and equipment, net | 2,459 | 2,357 | ||
Other noncurrent assets | 49 | 39 | ||
Noncurrent assets | 3,388 | 3,259 | ||
Short-term debt | 46 | 55 | ||
Accounts payable | 188 | 176 | ||
Current portion of long-term debt and finance leases | 22 | 29 | ||
Other current liabilities | 119 | 108 | ||
Current liabilities | 375 | 368 | ||
Long-term debt and finance leases | 721 | 708 | ||
Deferred income taxes | 263 | 250 | ||
Other noncurrent liabilities | 62 | 55 | ||
Noncurrent liabilities | $ 1,046 | $ 1,013 | ||
Disposal Group Held-for-sale [Member] | Luz Del Sur [Member] | Sempra South American Utilities [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership interest | 83.60% | |||
Disposal Group Held-for-sale [Member] | Chilquinta Energia [Member] | Sempra South American Utilities [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership interest | 100.00% | |||
[1] | Derived from audited financial statements. |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES - NARRATIVE (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
May 07, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 12,038 | $ 11,972 | ||
Maximum exposure under guarantor obligations | 4,200 | |||
Aggregate carrying value of guarantor obligations | 10 | |||
Joint Venture [Member] | Sempra Mexico [Member] | IMG [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments made during period | $ 25 | |||
Joint Venture [Member] | Sempra LNG [Member] | Cameron LNG [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments made during period | 25 | 29 | ||
Capitalized interest | 13 | $ 11 | ||
Oncor Holdings [Member] | Sempra Energy [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Contribution | 56 | |||
Operating Segments [Member] | Sempra LNG [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 1,255 | $ 1,271 | ||
Operating Segments [Member] | Wind Investments [Member] | Sempra Renewables [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 290 | |||
Sempra Energy [Member] | Oncor Holdings [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Dividends | 54 | |||
Tax sharing payments | $ 3 | |||
Subsequent Event [Member] | Sempra Energy [Member] | Oncor Holdings [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Contribution | $ 56 | |||
Dividends | 54 | |||
Tax sharing payments | $ 3 |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED ENTITIES - SUMMARIZED FINANCIAL INFORMATION (Details) - Oncor Holdings [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Mar. 31, 2018 | Mar. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Operating revenues | $ 236 | $ 1,016 |
Operating expense | (185) | (775) |
Income from operations | 51 | 241 |
Interest expense | (22) | (86) |
Income tax expense | (7) | (23) |
Net income / Earnings | 19 | 114 |
Noncontrolling interest held by TTI | (4) | (23) |
Earnings attributable to Sempra Energy | $ 15 | $ 91 |
DEBT AND CREDIT FACILITIES - LI
DEBT AND CREDIT FACILITIES - LINES OF CREDIT (Details) | Apr. 11, 2019USD ($) | Feb. 28, 2019USD ($)lender | Dec. 31, 2018USD ($)lender | Mar. 31, 2019USD ($) |
Line of Credit Facility [Line Items] | ||||
Standby letters of credit outstanding | $ 611,000,000 | |||
Sempra U.S. Businesses [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 5,435,000,000 | |||
Available unused credit | $ 3,718,000,000 | |||
Maximum ratio of indebtedness to total capitalization | 65.00% | |||
Sempra Energy [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 1,250,000,000 | |||
Available unused credit | 1,250,000,000 | |||
Capacity for issuance of letters of credit | 400,000,000 | |||
Sempra Global [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 3,185,000,000 | |||
Available unused credit | 1,896,000,000 | |||
California Utilities Combined [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 1,000,000,000 | |||
Limit on facility borrowings | (500,000,000) | |||
Available unused credit | 572,000,000 | |||
Limit on borrowings available | (500,000,000) | |||
Capacity for issuance of letters of credit | 250,000,000 | |||
San Diego Gas and Electric Company [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 750,000,000 | |||
Available unused credit | $ 512,000,000 | |||
Maximum ratio of indebtedness to total capitalization | 65.00% | |||
Southern California Gas Company [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 750,000,000 | |||
Available unused credit | $ 560,000,000 | |||
Maximum ratio of indebtedness to total capitalization | 65.00% | |||
Sempra Mexico [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 1,500,000,000 | $ 1,170,000,000 | ||
Available unused credit | $ 692,000,000 | |||
Term of debt instrument | 5 years | |||
Number of lenders | lender | 10 | 8 | ||
Commercial Paper [Member] | Sempra U.S. Businesses [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | (1,717,000,000) | |||
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 | (1,289,000,000) | |||
Unamortized debt discount | 2,000,000 | |||
Commercial Paper [Member] | California Utilities Combined [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | (428,000,000) | |||
Limit on facility borrowings | 0 | |||
Commercial Paper [Member] | San Diego Gas and Electric Company [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | (238,000,000) | |||
Commercial Paper [Member] | Southern California Gas Company [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | $ (190,000,000) | |||
Subsequent Event [Member] | Sempra Mexico [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 100,000,000 | |||
Term of debt instrument | 3 years |
DEBT AND CREDIT FACILITIES - WE
DEBT AND CREDIT FACILITIES - WEIGHTED-AVERAGE INTEREST RATES AND INTEREST RATE SWAPS (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 |
Sempra Energy Consolidated [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate on total short-term debt outstanding | 3.07% | 2.99% | |
San Diego Gas and Electric Company [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate on total short-term debt outstanding | 2.80% | 2.97% | |
Southern California Gas Company [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate on total short-term debt outstanding | 2.49% | 2.58% | |
Interest Rate Swap, maturing in March 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Notional amount of derivative | $ 850 | ||
Fixed interest rate | 3.069% |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE COMMODITY VOLUMES (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019MWhMMBTU | Dec. 31, 2018MWhMMBTU | |
Natural Gas Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 33 | 35 |
Electric Energy Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | 2 | 2 |
Congestion Revenue Rights Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | 50 | 52 |
SDG&E [Member] | Natural Gas Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 32 | 33 |
SDG&E [Member] | Electric Energy Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | 2 | 2 |
SDG&E [Member] | Congestion Revenue Rights Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | 50 | 52 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE NOTIONALS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Interest rate and foreign exchange instruments [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 306 | $ 306 |
Foreign Exchange [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | 1,084 | 1,158 |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | 1,430 | 594 |
San Diego Gas and Electric Company [Member] | Interest Rate Swap maturing on October 31 2019 [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | 159 | |
San Diego Gas and Electric Company [Member] | Swaption [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | 142 | |
San Diego Gas and Electric Company [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 142 | $ 142 |
Maximum [Member] | Interest rate and foreign exchange instruments [Member] | ||
Derivative [Line Items] | ||
Derivative, Maturity Date | Dec. 31, 2023 | Dec. 31, 2023 |
Maximum [Member] | Foreign Exchange [Member] | ||
Derivative [Line Items] | ||
Derivative, Maturity Date | Dec. 31, 2020 | Dec. 31, 2020 |
Maximum [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Maturity Date | Dec. 31, 2032 | Dec. 31, 2032 |
Maximum [Member] | San Diego Gas and Electric Company [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Maturity Date | Dec. 31, 2019 | Dec. 31, 2019 |
Minimum [Member] | Interest rate and foreign exchange instruments [Member] | ||
Derivative [Line Items] | ||
Derivative, Maturity Date | Dec. 31, 2019 | Dec. 31, 2019 |
Minimum [Member] | Foreign Exchange [Member] | ||
Derivative [Line Items] | ||
Derivative, Maturity Date | Dec. 31, 2019 | Dec. 31, 2019 |
Minimum [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Maturity Date | Dec. 31, 2019 | Dec. 31, 2019 |
Minimum [Member] | San Diego Gas and Electric Company [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Maturity Date | Dec. 31, 2019 | Dec. 31, 2019 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE INSTRUMENTS ON THE CONDENSED BALANCE SHEET (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | $ 68 | $ 80 |
Additional cash collateral for commodity contracts not subject to rate recovery | 25 | 19 |
Additional cash collateral for commodity contracts subject to rate recovery | 26 | 33 |
Total | 119 | 132 |
Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 238 | 235 |
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 | 238 | 235 |
Current liabilities: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (56) | (70) |
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 | (56) | (70) |
Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (209) | (218) |
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 | (209) | (218) |
Designated as Hedging Instrument [Member] | Current assets: Other [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | 0 | 2 |
Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | 0 | 0 |
Designated as Hedging Instrument [Member] | Current liabilities: Other [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | (5) | (3) |
Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | (146) | (147) |
Not Designated as Hedging Instrument [Member] | Current assets: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 12 | |
Commodity contracts not subject to rate recovery | 58 | 153 |
Associated offsetting commodity contracts | (47) | (133) |
Commodity contracts subject to rate recovery | 50 | 64 |
Associated offsetting commodity contracts | (5) | (6) |
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 | 6 | 7 |
Associated offsetting commodity contracts | (2) | (3) |
Commodity contracts subject to rate recovery | 236 | 233 |
Associated offsetting commodity contracts | (2) | (2) |
Associated offsetting cash collateral | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Current liabilities: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 0 | |
Commodity contracts not subject to rate recovery | (65) | (164) |
Associated offsetting commodity contracts | 47 | 133 |
Commodity contracts subject to rate recovery | (41) | (42) |
Associated offsetting commodity contracts | 5 | 6 |
Associated offsetting cash collateral | 3 | 0 |
Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 0 | |
Commodity contracts not subject to rate recovery | (5) | (6) |
Associated offsetting commodity contracts | 2 | 3 |
Commodity contracts subject to rate recovery | (65) | (72) |
Associated offsetting commodity contracts | 2 | 2 |
Associated offsetting cash collateral | 3 | 2 |
San Diego Gas and Electric Company [Member] | Current assets: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 40 | 54 |
Additional cash collateral for commodity contracts subject to rate recovery | 25 | 28 |
Total | 65 | 82 |
San Diego Gas and Electric Company [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 232 | 231 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 232 | 231 |
San Diego Gas and Electric Company [Member] | Current liabilities: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (29) | (32) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (29) | (32) |
San Diego Gas and Electric Company [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (60) | (68) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (60) | (68) |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Current assets: Other [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | 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 | |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Current liabilities: Other [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | (1) | |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | 0 | |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Current assets: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 45 | 60 |
Associated offsetting commodity contracts | (5) | (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 | 234 | 233 |
Associated offsetting commodity contracts | (2) | (2) |
Associated offsetting cash collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Current liabilities: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (37) | (37) |
Associated offsetting commodity contracts | 5 | 6 |
Associated offsetting cash collateral | 3 | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (65) | (72) |
Associated offsetting commodity contracts | 2 | 2 |
Associated offsetting cash collateral | 3 | 2 |
Southern California Gas Company [Member] | Current assets: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 5 | 4 |
Additional cash collateral for commodity contracts subject to rate recovery | 1 | 5 |
Total | 6 | 9 |
Southern California Gas Company [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 2 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 2 | 0 |
Southern California Gas Company [Member] | Current liabilities: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (4) | (5) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (4) | (5) |
Southern California Gas Company [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 0 | 0 |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Current assets: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 5 | 4 |
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 | 2 | 0 |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Current liabilities: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (4) | (5) |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE IMPACT ON INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 27 | $ 35 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 14 | 38 |
Not Designated as Hedging Instrument [Member] | Other Income [Member] | Foreign Exchange [Member] | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 10 | 44 |
Not Designated as Hedging Instrument [Member] | Sales [Member] | Commodity Contracts not subject to rate recovery [Member] | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | (9) |
Not Designated as Hedging Instrument [Member] | Cost of Electric Fuel and Purchased Power [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 2 | 2 |
Not Designated as Hedging Instrument [Member] | Cost of Natural Gas [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 2 | 1 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (74) | 117 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 16 |
Designated as Hedging Instrument [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | Interest rate and foreign exchange instruments [Member] | ||
Derivative [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (3) | 54 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1) | 2 |
Designated as Hedging Instrument [Member] | Other Income [Member] | Cash Flow Hedging [Member] | Interest rate and foreign exchange instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 3 | 18 |
Designated as Hedging Instrument [Member] | Equity Earnings (Losses) [Member] | Cash Flow Hedging [Member] | Interest rate and foreign exchange instruments [Member] | ||
Derivative [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (68) | 70 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1) | (4) |
Designated as Hedging Instrument [Member] | Sales [Member] | Cash Flow Hedging [Member] | Foreign Exchange [Member] | ||
Derivative [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (3) | (7) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1) | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Cost of Electric Fuel and Purchased Power [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 2 | 2 |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 0 | 1 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1) | (3) |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Cost of Natural Gas [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 2 | $ 1 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Derivative [Line Items] | |
Cash flow hedge gain (loss) to be reclassified | $ 5 |
Term of interest rate cash flow hedge | 13 years |
San Diego Gas and Electric Company [Member] | |
Derivative [Line Items] | |
Term of interest rate cash flow hedge | 1 year |
San Diego Gas and Electric Company [Member] | Noncontrolling Interest [Member] | |
Derivative [Line Items] | |
Cash flow hedge gain (loss) to be reclassified | $ (1) |
Southern California Gas Company [Member] | |
Derivative [Line Items] | |
Cash flow hedge gain (loss) to be reclassified | $ (1) |
Equity Method Investee [Member] | |
Derivative [Line Items] | |
Term of interest rate cash flow hedge | 15 years |
DERIVATIVE FINANCIAL INSTRUME_8
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE INSTRUMENTS WITH CONTINGENT FEATURES (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative fair value | $ 14 | $ 16 |
Collateral | 15 | |
Southern California Gas Company [Member] | ||
Derivative [Line Items] | ||
Derivative fair value | 4 | $ 5 |
Collateral | $ 4 |
FAIR VALUE MEASUREMENTS - RECUR
FAIR VALUE MEASUREMENTS - RECURRING FAIR VALUE MEASURES (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Measured at Net Asset Value Per Share [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at NAV | $ 7,000,000 | |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 459,000,000 | $ 411,000,000 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 48,000,000 | 53,000,000 |
Nuclear decommissioning trusts - Municipal bonds | 279,000,000 | 269,000,000 |
Nuclear decommissioning trusts - Other securities | 238,000,000 | 234,000,000 |
Nuclear decommissioning trusts - Total debt securities | 565,000,000 | 556,000,000 |
Total nuclear decommissioning trusts | 1,024,000,000 | 967,000,000 |
Total Assets Measured at Fair Value | 1,381,000,000 | 1,334,000,000 |
Total LIabilities Measured at Fair Value | 265,000,000 | 288,000,000 |
Recurring [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 12,000,000 | 2,000,000 |
Derivative liabilities | 151,000,000 | 150,000,000 |
Recurring [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 15,000,000 | 24,000,000 |
Effect of netting and allocation of collateral | 25,000,000 | 19,000,000 |
Derivative liabilities | 21,000,000 | 34,000,000 |
Recurring [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 279,000,000 | 289,000,000 |
Effect of netting and allocation of collateral | 26,000,000 | 33,000,000 |
Derivative liabilities | 99,000,000 | 106,000,000 |
Effect of netting and allocation of collateral | (6,000,000) | (2,000,000) |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 454,000,000 | 407,000,000 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 39,000,000 | 43,000,000 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 39,000,000 | 43,000,000 |
Total nuclear decommissioning trusts | 493,000,000 | 450,000,000 |
Total Assets Measured at Fair Value | 539,000,000 | 499,000,000 |
Total LIabilities Measured at Fair Value | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 25,000,000 | 19,000,000 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 2,000,000 |
Effect of netting and allocation of collateral | 21,000,000 | 28,000,000 |
Derivative liabilities | 6,000,000 | 2,000,000 |
Effect of netting and allocation of collateral | (6,000,000) | (2,000,000) |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 5,000,000 | 4,000,000 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 9,000,000 | 10,000,000 |
Nuclear decommissioning trusts - Municipal bonds | 279,000,000 | 269,000,000 |
Nuclear decommissioning trusts - Other securities | 238,000,000 | 234,000,000 |
Nuclear decommissioning trusts - Total debt securities | 526,000,000 | 513,000,000 |
Total nuclear decommissioning trusts | 531,000,000 | 517,000,000 |
Total Assets Measured at Fair Value | 566,000,000 | 552,000,000 |
Total LIabilities Measured at Fair Value | 176,000,000 | 189,000,000 |
Recurring [Member] | Level 2 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 12,000,000 | 2,000,000 |
Derivative liabilities | 151,000,000 | 150,000,000 |
Recurring [Member] | Level 2 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 15,000,000 | 24,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 21,000,000 | 34,000,000 |
Recurring [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 8,000,000 | 9,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 4,000,000 | 5,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 0 | 0 |
Total nuclear decommissioning trusts | 0 | 0 |
Total Assets Measured at Fair Value | 276,000,000 | 283,000,000 |
Total LIabilities Measured at Fair Value | 89,000,000 | 99,000,000 |
Recurring [Member] | Level 3 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 271,000,000 | 278,000,000 |
Effect of netting and allocation of collateral | 5,000,000 | 5,000,000 |
Derivative liabilities | 89,000,000 | 99,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 459,000,000 | 411,000,000 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 48,000,000 | 53,000,000 |
Nuclear decommissioning trusts - Municipal bonds | 279,000,000 | 269,000,000 |
Nuclear decommissioning trusts - Other securities | 238,000,000 | 234,000,000 |
Nuclear decommissioning trusts - Total debt securities | 565,000,000 | 556,000,000 |
Total nuclear decommissioning trusts | 1,024,000,000 | 967,000,000 |
Total Assets Measured at Fair Value | 1,321,000,000 | 1,280,000,000 |
Total LIabilities Measured at Fair Value | 89,000,000 | 100,000,000 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 272,000,000 | 285,000,000 |
Effect of netting and allocation of collateral | 25,000,000 | 28,000,000 |
Derivative liabilities | 95,000,000 | 101,000,000 |
Effect of netting and allocation of collateral | (6,000,000) | (2,000,000) |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,000,000 | |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 454,000,000 | 407,000,000 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 39,000,000 | 43,000,000 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 39,000,000 | 43,000,000 |
Total nuclear decommissioning trusts | 493,000,000 | 450,000,000 |
Total Assets Measured at Fair Value | 513,000,000 | 474,000,000 |
Total LIabilities Measured at Fair Value | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 1,000,000 |
Effect of netting and allocation of collateral | 20,000,000 | 23,000,000 |
Derivative liabilities | 6,000,000 | 2,000,000 |
Effect of netting and allocation of collateral | (6,000,000) | (2,000,000) |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 1 [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 5,000,000 | 4,000,000 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 9,000,000 | 10,000,000 |
Nuclear decommissioning trusts - Municipal bonds | 279,000,000 | 269,000,000 |
Nuclear decommissioning trusts - Other securities | 238,000,000 | 234,000,000 |
Nuclear decommissioning trusts - Total debt securities | 526,000,000 | 513,000,000 |
Total nuclear decommissioning trusts | 531,000,000 | 517,000,000 |
Total Assets Measured at Fair Value | 532,000,000 | 523,000,000 |
Total LIabilities Measured at Fair Value | 0 | 1,000,000 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,000,000 | 6,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 0 | 0 |
Effect of netting and allocation of collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 2 [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,000,000 | |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 0 | 0 |
Total nuclear decommissioning trusts | 0 | 0 |
Total Assets Measured at Fair Value | 276,000,000 | 283,000,000 |
Total LIabilities Measured at Fair Value | 89,000,000 | 99,000,000 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 271,000,000 | 278,000,000 |
Effect of netting and allocation of collateral | 5,000,000 | 5,000,000 |
Derivative liabilities | 89,000,000 | 99,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 3 [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Southern California Gas Company [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 8,000,000 | 9,000,000 |
Total LIabilities Measured at Fair Value | 4,000,000 | 5,000,000 |
Southern California Gas Company [Member] | Recurring [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7,000,000 | 4,000,000 |
Effect of netting and allocation of collateral | 1,000,000 | 5,000,000 |
Derivative liabilities | 4,000,000 | 5,000,000 |
Southern California Gas Company [Member] | Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 1,000,000 | 6,000,000 |
Total LIabilities Measured at Fair Value | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 1,000,000 |
Effect of netting and allocation of collateral | 1,000,000 | 5,000,000 |
Derivative liabilities | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 7,000,000 | 3,000,000 |
Total LIabilities Measured at Fair Value | 4,000,000 | 5,000,000 |
Southern California Gas Company [Member] | Recurring [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7,000,000 | 3,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 4,000,000 | 5,000,000 |
Southern California Gas Company [Member] | Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 0 | 0 |
Total LIabilities Measured at Fair Value | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - RECON
FAIR VALUE MEASUREMENTS - RECON OF LEVEL 3 ASSETS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at January 1 | $ 179,000,000 | $ (28,000,000) | $ 179,000,000 | $ (28,000,000) |
Realized and unrealized gains | 5,000,000 | 4,000,000 | ||
Allocated transmission instruments | 0 | 3,000,000 | ||
Settlements | (2,000,000) | (19,000,000) | ||
Balance at March 31 | 182,000,000 | (40,000,000) | 179,000,000 | |
Change in unrealized gains relating to instruments still held at the end of the period | $ 13,000,000 | $ (8,000,000) | ||
San Diego Gas and Electric Company [Member] | Minimum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Congestion revenue rights (in dollars per MWH) | (7.25) | |||
San Diego Gas and Electric Company [Member] | Maximum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Congestion revenue rights (in dollars per MWH) | 11.99 | |||
San Diego Gas and Electric Company [Member] | Weighted Average [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Congestion revenue rights (in dollars per MWH) | 0.09 | |||
Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | Minimum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Congestion revenue rights (in dollars per MWH) | (8.57) | |||
Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | Maximum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Congestion revenue rights (in dollars per MWH) | 35.21 | |||
Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | Weighted Average [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Congestion revenue rights (in dollars per MWH) | (2.94) | |||
Level 3 [Member] | San Diego Gas and Electric Company [Member] | Minimum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Market electricity forward price inputs ( in dollars per MWH) | 20 | |||
Level 3 [Member] | San Diego Gas and Electric Company [Member] | Maximum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Market electricity forward price inputs ( in dollars per MWH) | 47.65 | |||
Level 3 [Member] | San Diego Gas and Electric Company [Member] | Weighted Average [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Market electricity forward price inputs ( in dollars per MWH) | $ 35.42 | |||
Level 3 [Member] | Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | Minimum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Market electricity forward price inputs ( in dollars per MWH) | 23.25 | |||
Level 3 [Member] | Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | Maximum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Market electricity forward price inputs ( in dollars per MWH) | 81.75 | |||
Level 3 [Member] | Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | Weighted Average [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Market electricity forward price inputs ( in dollars per MWH) | $ 42.49 |
FAIR VALUE MEASUREMENTS - FINAN
FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized discount (net of premium) and debt issuance costs | $ 201,000,000 | $ 206,000,000 |
Finance Lease, Liability | 1,277,000,000 | |
Build-to-suit and capital lease obligations | 1,413,000,000 | |
Level 3 [Member] | Otay Mesa VIE [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 220,000,000 | 220,000,000 |
Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 668,000,000 | 644,000,000 |
Long-term amounts due to unconsolidated affiliate | 38,000,000 | 37,000,000 |
Total long-term debt | 20,814,000,000 | 21,340,000,000 |
Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 689,000,000 | 652,000,000 |
Long-term amounts due to unconsolidated affiliate | 37,000,000 | 35,000,000 |
Total long-term debt | 20,846,000,000 | 20,863,000,000 |
Fair value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 0 | 0 |
Long-term amounts due to unconsolidated affiliate | 0 | 0 |
Total long-term debt | 0 | 0 |
Fair value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 689,000,000 | 648,000,000 |
Long-term amounts due to unconsolidated affiliate | 37,000,000 | 35,000,000 |
Total long-term debt | 20,598,000,000 | 20,616,000,000 |
Fair value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 0 | 4,000,000 |
Long-term amounts due to unconsolidated affiliate | 0 | 0 |
Total long-term debt | 248,000,000 | 247,000,000 |
San Diego Gas and Electric Company [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized discount (net of premium) and debt issuance costs | 48,000,000 | 49,000,000 |
Finance Lease, Liability | 1,272,000,000 | |
Capital lease obligations | 1,272,000,000 | |
San Diego Gas and Electric Company [Member] | Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 4,978,000,000 | 4,996,000,000 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 5,138,000,000 | 5,117,000,000 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 0 | 0 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 4,918,000,000 | 4,897,000,000 |
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 | 220,000,000 | 220,000,000 |
Southern California Gas Company [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized discount (net of premium) and debt issuance costs | 32,000,000 | 32,000,000 |
Finance Lease, Liability | 5,000,000 | |
Capital lease obligations | 3,000,000 | |
Southern California Gas Company [Member] | Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 3,459,000,000 | 3,459,000,000 |
Southern California Gas Company [Member] | Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 3,595,000,000 | 3,505,000,000 |
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 | 3,595,000,000 | 3,505,000,000 |
Southern California Gas Company [Member] | Fair value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | $ 0 | $ 0 |
SAN ONOFRE NUCLEAR GENERATING_3
SAN ONOFRE NUCLEAR GENERATING STATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Jan. 31, 2019 | |
Jointly Owned Utility Plant Interests [Line Items] | ||
Anticipated term of dismantlement work | 10 years | |
San Diego Gas and Electric Company [Member] | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Percent of dismantlement work expense | 20.00% | |
Nuclear decommissioning trust authorized withdrawal amount | $ 455 | $ 93 |
ARO related to decommissioning costs | 620 | |
Cost study estimate decommissioning escalated | $ 810 | |
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% |
SAN ONOFRE NUCLEAR GENERATING_4
SAN ONOFRE NUCLEAR GENERATING STATION - NUCLEAR DECOMMISSIONING TRUSTS (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Cost | $ 734 | $ 731 | |
Gross unrealized gains | 310 | 259 | |
Gross unrealized losses | (7) | (16) | |
Estimated fair value | 1,037 | 974 | |
Proceeds from sales | 225 | $ 210 | |
Gross realized gains | 5 | 4 | |
Gross realized losses | (2) | $ (3) | |
Total debt securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 555 | 556 | |
Gross unrealized gains | 11 | 6 | |
Gross unrealized losses | (1) | (6) | |
Estimated fair value | 565 | 556 | |
U.S. government corporations and agencies [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 48 | 52 | |
Gross unrealized gains | 0 | 1 | |
Gross unrealized losses | 0 | 0 | |
Estimated fair value | 48 | 53 | |
Municipal bonds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 271 | 266 | |
Gross unrealized gains | 8 | 4 | |
Gross unrealized losses | 0 | (1) | |
Estimated fair value | 279 | 269 | |
Other securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 236 | 238 | |
Gross unrealized gains | 3 | 1 | |
Gross unrealized losses | (1) | (5) | |
Estimated fair value | 238 | 234 | |
Equity securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 166 | 168 | |
Gross unrealized gains | 299 | 253 | |
Gross unrealized losses | (6) | (10) | |
Estimated fair value | 459 | 411 | |
Cash and cash equivalents [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 13 | 7 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Estimated fair value | $ 13 | $ 7 |
SAN ONOFRE NUCLEAR GENERATING_5
SAN ONOFRE NUCLEAR GENERATING STATION - NUCLEAR INSURANCE (Details) - San Diego Gas and Electric Company [Member] $ in Millions | Mar. 31, 2019USD ($) |
Schedule Of Nuclear Insurance [Line Items] | |
Maximum nuclear liability insurance coverage | $ 450 |
Maximum secondary financial protection | 110 |
Maximum nuclear liability loss coverage per incident | 560 |
Nuclear property damage insurance | 1,500 |
Spent nuclear fuel storage insurance | 500 |
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 CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS (Details) | May 02, 2019plaintifflawsuit | Feb. 18, 2016Bcf | Oct. 31, 2018plaintiff | Aug. 31, 2018USD ($) | Jan. 31, 2017lawsuit | Feb. 29, 2016USD ($) | Mar. 31, 2019USD ($)Bcflawsuit | Sep. 30, 2018lawsuit | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($) | [1] | Oct. 21, 2016t |
Loss Contingencies [Line Items] | ||||||||||||
Liability for legal proceedings | $ 104,000,000 | |||||||||||
Reserve for Aliso Canyon costs | $ 60,000,000 | $ 160,000,000 | ||||||||||
Consolidated Class Action Complaints [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits filed | lawsuit | 2 | |||||||||||
Property Class Action [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits filed | lawsuit | 1 | |||||||||||
Complaints Filed by Public Entities [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits filed | lawsuit | 3 | 3 | ||||||||||
Southern California Gas Company [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Liability for legal proceedings | $ 54,000,000 | |||||||||||
Insurance Settlements Receivable | 1,043,000,000 | |||||||||||
Reserve for Aliso Canyon costs | 60,000,000 | $ 160,000,000 | ||||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Liability for legal proceedings | 53,000,000 | |||||||||||
Amount of natural gas released | Bcf | 4.62 | |||||||||||
Mitigation requirements (in metric tons) | t | 109,000 | |||||||||||
Loss contingency accrual | $ 1,071,000,000 | |||||||||||
Percent of Loss Accrual Allocated to Temporary Relocation Program | 53.00% | |||||||||||
Reserve for Aliso Canyon costs | $ 60,000,000 | |||||||||||
Receivable related to natural gas leak | 477,000,000 | |||||||||||
Insurance proceeds | $ 566,000,000 | |||||||||||
Storage facility capacity | Bcf | 86 | |||||||||||
Proportion of total gas storage capacity (percentage) | 63.00% | |||||||||||
Storage Facility, Working Gas Target | Bcf | 34 | |||||||||||
Net book value of Aliso Canyon facility | $ 741,000,000 | |||||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Subsequent Event [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits | lawsuit | 394 | |||||||||||
Number of plaintiffs | plaintiff | 48,500 | |||||||||||
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 | |||||||||||
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 | |||||||||||
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 | $ 6,000,000 | |||||||||||
Southern California Gas Company [Member] | Complaints Filed by Firefighters [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of plaintiffs | plaintiff | 51 | |||||||||||
Southern California Gas Company [Member] | Complaints Filed by Public Entities [Member] | Funding for Environmental Projects [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Settlement amount payable | $ 120,000,000 | |||||||||||
Southern California Gas Company [Member] | Complaints Filed by Public Entities [Member] | Civil Penalties [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Settlement amount payable | $ 21,000,000 | |||||||||||
San Diego Gas and Electric Company [Member] | Wildfire [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Write-off of wildfire regulatory asset | $ 351,000,000 | |||||||||||
After-tax charge for nonrecovery of CPUC regulatory assets | $ 208,000,000 | |||||||||||
Energy Future Holdings Corp. [Member] | Subsequent Event [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits | lawsuit | 114 | |||||||||||
Number of lawsuits filed | lawsuit | 1,685 | |||||||||||
[1] | Derived from audited financial statements. |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - OTHER LITIGATION (Details) £ in Millions, $ in Millions | May 02, 2019lawsuit | Mar. 31, 2019USD ($)proof_of_claim | Mar. 31, 2019GBP (£)proof_of_claim | Sep. 30, 2018USD ($) | Oct. 01, 2014USD ($) | Oct. 01, 2014GBP (£) |
Southern California Gas Company [Member] | Subsequent Event [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of lawsuits | 394 | |||||
R B S Sempra Commodities [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Investment in RBS Sempra Commodities LLP | $ | $ 65 | |||||
R B S Sempra Commodities [Member] | HMRC VAT Claim [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
VAT tax claim paid upon appeal | $ 138 | £ 86 | ||||
Plaintiffs [Member] | HMRC VAT Claim [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Filed claims amount | $ 93 | £ 71.5 | ||||
Energy Future Holdings Corp. [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of proof of claims | proof_of_claim | 28,000 | 28,000 | ||||
Energy Future Holdings Corp. [Member] | Subsequent Event [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of lawsuits | 114 | |||||
Number of lawsuits filed | 1,685 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - LEASES (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)facility | |
Lessee, Lease, Description [Line Items] | |
Lease term | 12 months |
Number of battery storage facilities | facility | 3 |
Leases not yet commenced, future minimum lease payments, 2020 - 2024 | $ 1 |
Leases not yet commenced, future minimum lease payments, thereafter | 18 |
Aggregate maximum lease limit | 194 |
San Diego Gas and Electric Company [Member] | |
Lessee, Lease, Description [Line Items] | |
Aggregate maximum lease limit, utilized | 52 |
Southern California Gas Company [Member] | |
Lessee, Lease, Description [Line Items] | |
Aggregate maximum lease limit, utilized | $ 75 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Termination period | 1 year |
Annual increase in rent | 1.00% |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Option to extend terms | 25 years |
Annual increase in rent | 5.00% |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - LESSEE BALANCE SHEET INFORMATION (Details) | Mar. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Right-of-use assets | $ 612,000,000 |
Property, plant and equipment | 1,322,000,000 |
Accumulated depreciation | (45,000,000) |
Property, plant and equipment, net | 1,277,000,000 |
Total right-of-use assets | 1,889,000,000 |
Other current liabilities | 52,000,000 |
Deferred credits and other | 455,000,000 |
Total lease liabilities | 507,000,000 |
Current portion of long-term debt and finance leases | 21,000,000 |
Long-term debt and finance leases | 1,256,000,000 |
Total lease liabilities | 1,277,000,000 |
Total lease liabilities | $ 1,784,000,000 |
Operating leases, Weighted-average remaining lease term (in years) | 14 years |
Finance leases, Weighted-average remaining lease term (in years) | 20 years |
Operating leases, Weighted-average discount rate | 5.87% |
Finance leases, Weighted-average discount rate | 14.91% |
San Diego Gas and Electric Company [Member] | |
Lessee, Lease, Description [Line Items] | |
Right-of-use assets | $ 135,000,000 |
Property, plant and equipment | 1,315,000,000 |
Accumulated depreciation | (43,000,000) |
Property, plant and equipment, net | 1,272,000,000 |
Total right-of-use assets | 1,407,000,000 |
Other current liabilities | 24,000,000 |
Deferred credits and other | 110,000,000 |
Total lease liabilities | 134,000,000 |
Current portion of long-term debt and finance leases | 18,000,000 |
Long-term debt and finance leases | 1,254,000,000 |
Total lease liabilities | 1,272,000,000 |
Total lease liabilities | $ 1,406,000,000 |
Operating leases, Weighted-average remaining lease term (in years) | 7 years |
Finance leases, Weighted-average remaining lease term (in years) | 20 years |
Operating leases, Weighted-average discount rate | 3.69% |
Finance leases, Weighted-average discount rate | 14.92% |
Southern California Gas Company [Member] | |
Lessee, Lease, Description [Line Items] | |
Right-of-use assets | $ 110,000,000 |
Property, plant and equipment | 7,000,000 |
Accumulated depreciation | (2,000,000) |
Property, plant and equipment, net | 5,000,000 |
Total right-of-use assets | 115,000,000 |
Other current liabilities | 22,000,000 |
Deferred credits and other | 88,000,000 |
Total lease liabilities | 110,000,000 |
Current portion of long-term debt and finance leases | 3,000,000 |
Long-term debt and finance leases | 2,000,000 |
Total lease liabilities | 5,000,000 |
Total lease liabilities | $ 115,000,000 |
Operating leases, Weighted-average remaining lease term (in years) | 6 years |
Finance leases, Weighted-average remaining lease term (in years) | 3 years |
Operating leases, Weighted-average discount rate | 3.76% |
Finance leases, Weighted-average discount rate | 3.94% |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - LESSEE STATEMENT OF OPERATIONS INFORMATION (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease costs | $ 24,000,000 |
Amortization of ROU assets | 5,000,000 |
Interest on lease liabilities | 47,000,000 |
Total finance lease costs | 52,000,000 |
Short-term lease costs | 1,000,000 |
Variable lease costs | 92,000,000 |
Total lease costs | 169,000,000 |
Southern California Gas Company [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease costs | 7,000,000 |
Amortization of ROU assets | 1,000,000 |
Interest on lease liabilities | 0 |
Total finance lease costs | 1,000,000 |
Short-term lease costs | 0 |
Variable lease costs | 2,000,000 |
Total lease costs | 10,000,000 |
San Diego Gas and Electric Company [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease costs | 8,000,000 |
Amortization of ROU assets | 4,000,000 |
Interest on lease liabilities | 47,000,000 |
Total finance lease costs | 51,000,000 |
Short-term lease costs | 0 |
Variable lease costs | 90,000,000 |
Total lease costs | $ 149,000,000 |
COMMITMENTS AND CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES - LESSEE CASH FLOW INFORMATION (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Cash paid for operating leases | $ 39,000,000 | |
Cash paid for finance leases | 43,000,000 | |
Cash paid for finance leases | 5,000,000 | |
Increase in operating lease obligations for right-of-use assets | 552,000,000 | |
Increase in finance lease obligations for investment in PP&E | 7,000,000 | $ 5,000,000 |
Southern California Gas Company [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Cash paid for operating leases | 7,000,000 | |
Cash paid for finance leases | 0 | |
Cash paid for finance leases | 1,000,000 | 0 |
Increase in operating lease obligations for right-of-use assets | 117,000,000 | |
Increase in finance lease obligations for investment in PP&E | 3,000,000 | 5,000,000 |
San Diego Gas and Electric Company [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Cash paid for operating leases | 8,000,000 | |
Cash paid for finance leases | 43,000,000 | |
Cash paid for finance leases | 4,000,000 | |
Increase in operating lease obligations for right-of-use assets | 142,000,000 | |
Increase in finance lease obligations for investment in PP&E | $ 4,000,000 | $ 0 |
COMMITMENTS AND CONTINGENCIES_7
COMMITMENTS AND CONTINGENCIES - LESSEE MATURITY OF LEASE LIABILITIES (Details) | Mar. 31, 2019USD ($) |
Operating leases | |
2019 (excluding first three months of 2019) | $ 60,000,000 |
2020 | 69,000,000 |
2021 | 65,000,000 |
2022 | 59,000,000 |
2023 | 50,000,000 |
Thereafter | 479,000,000 |
Total undiscounted lease payments | 782,000,000 |
Less: imputed interest | (275,000,000) |
Total lease liabilities | 507,000,000 |
Less: current lease liabilities | (52,000,000) |
Long-term lease liabilities | 455,000,000 |
Finance leases | |
2019 (excluding first three months of 2019) | 146,000,000 |
2020 | 190,000,000 |
2021 | 188,000,000 |
2022 | 188,000,000 |
2023 | 188,000,000 |
Thereafter | 2,806,000,000 |
Total undiscounted lease payments | 3,706,000,000 |
Less: imputed interest | (2,429,000,000) |
Total lease liabilities | 1,277,000,000 |
Less: current lease liabilities | (21,000,000) |
Long-term lease liabilities | 1,256,000,000 |
Southern California Gas Company [Member] | |
Operating leases | |
2019 (excluding first three months of 2019) | 20,000,000 |
2020 | 22,000,000 |
2021 | 20,000,000 |
2022 | 17,000,000 |
2023 | 13,000,000 |
Thereafter | 31,000,000 |
Total undiscounted lease payments | 123,000,000 |
Less: imputed interest | (13,000,000) |
Total lease liabilities | 110,000,000 |
Less: current lease liabilities | (22,000,000) |
Long-term lease liabilities | 88,000,000 |
Finance leases | |
2019 (excluding first three months of 2019) | 3,000,000 |
2020 | 1,000,000 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 1,000,000 |
Total undiscounted lease payments | 5,000,000 |
Less: imputed interest | 0 |
Total lease liabilities | 5,000,000 |
Less: current lease liabilities | (3,000,000) |
Long-term lease liabilities | 2,000,000 |
San Diego Gas and Electric Company [Member] | |
Operating leases | |
2019 (excluding first three months of 2019) | 24,000,000 |
2020 | 25,000,000 |
2021 | 24,000,000 |
2022 | 21,000,000 |
2023 | 17,000,000 |
Thereafter | 42,000,000 |
Total undiscounted lease payments | 153,000,000 |
Less: imputed interest | (19,000,000) |
Total lease liabilities | 134,000,000 |
Less: current lease liabilities | (24,000,000) |
Long-term lease liabilities | 110,000,000 |
Finance leases | |
2019 (excluding first three months of 2019) | 143,000,000 |
2020 | 189,000,000 |
2021 | 188,000,000 |
2022 | 188,000,000 |
2023 | 188,000,000 |
Thereafter | 2,805,000,000 |
Total undiscounted lease payments | 3,701,000,000 |
Less: imputed interest | (2,429,000,000) |
Total lease liabilities | 1,272,000,000 |
Less: current lease liabilities | (18,000,000) |
Long-term lease liabilities | $ 1,254,000,000 |
COMMITMENTS AND CONTINGENCIES_8
COMMITMENTS AND CONTINGENCIES - FUTURE MINIMUM LEASE PAYMENTS UNDER TOPIC 840 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Capital Leases [Abstract] | |
2019 | $ 215 |
2020 | 210 |
2021 | 211 |
2022 | 211 |
2023 | 211 |
Thereafter | 3,196 |
Total undiscounted lease payments | 4,254 |
Less: estimated executory costs | (480) |
Less: imputed interest | (2,483) |
Total future minimum lease payments | 1,291 |
Leases, Operating [Abstract] | |
2019 | 77 |
2020 | 55 |
2021 | 53 |
2022 | 50 |
2023 | 42 |
Thereafter | 253 |
Total undiscounted lease payments | 530 |
HQ Build To Suit Lease [Member] | |
Capital Leases [Abstract] | |
2019 | 10 |
2020 | 11 |
2021 | 11 |
2022 | 11 |
2023 | 11 |
Thereafter | 217 |
Total undiscounted lease payments | 271 |
San Diego Gas and Electric Company [Member] | |
Capital Leases [Abstract] | |
2019 | 212 |
2020 | 210 |
2021 | 211 |
2022 | 211 |
2023 | 211 |
Thereafter | 3,196 |
Total undiscounted lease payments | 4,251 |
Less: estimated executory costs | (480) |
Less: imputed interest | (2,483) |
Total future minimum lease payments | 1,288 |
Leases, Operating [Abstract] | |
2019 | 23 |
2020 | 22 |
2021 | 22 |
2022 | 21 |
2023 | 17 |
Thereafter | 48 |
Total undiscounted lease payments | 153 |
Southern California Gas Company [Member] | |
Capital Leases [Abstract] | |
2019 | 3 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total undiscounted lease payments | 3 |
Less: estimated executory costs | 0 |
Less: imputed interest | 0 |
Total future minimum lease payments | 3 |
Leases, Operating [Abstract] | |
2019 | 26 |
2020 | 22 |
2021 | 21 |
2022 | 20 |
2023 | 16 |
Thereafter | 28 |
Total undiscounted lease payments | $ 133 |
COMMITMENTS AND CONTINGENCIES_9
COMMITMENTS AND CONTINGENCIES - LESSOR INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | [1] | |
Lessee, Lease, Description [Line Items] | ||||
Property, plant and equipment | $ 47,105 | $ 46,615 | ||
Accumulated depreciation | (12,407) | (12,176) | ||
Property, plant and equipment, net | 34,698 | $ 34,439 | ||
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | ||||
2019 (excluding first three months of 2019) | 151 | |||
2020 | 200 | |||
2021 | 200 | |||
2022 | 200 | |||
2023 | 200 | |||
Thereafter | 2,619 | |||
Total undiscounted cash flows | 3,570 | |||
Minimum lease payments | 50 | $ 49 | ||
Variable lease payments | 4 | 13 | ||
Total revenues from operating leases | 54 | 62 | ||
Assets Leased to Others [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Assets held for sale | 148 | |||
Property, plant and equipment | 1,026 | |||
Accumulated depreciation | (151) | |||
Property, plant and equipment, net | 875 | |||
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | ||||
Depreciation | $ 9 | $ 17 | ||
[1] | Derived from audited financial statements. |
COMMITMENTS AND CONTINGENCIE_10
COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS (Details) - Sempra LNG [Member] - Liquefied Natural Gas Contracts [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Increase (decrease) in commitment amount, 2019 | $ (96) |
Increase (decrease) in commitment amount, 2020 | 19 |
Increase (decrease) in commitment amount, 2021 | 8 |
Increase (decrease) in commitment amount, 2022 | 3 |
Increase (decrease) in commitment amount, 2023 | 2 |
Increase (decrease) in commitment amount, thereafter | $ 52 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019USD ($)segmentfacility | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | ||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 6 | |||
Wind generation facility | facility | 1 | |||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | $ 2,898 | $ 2,536 | ||
INTEREST EXPENSE | 260 | 206 | ||
INTEREST INCOME | 21 | 29 | ||
DEPRECIATION AND AMORTIZATION | 383 | 372 | ||
Income Tax Expense (Benefit) | 42 | 242 | ||
Equity earnings before income tax: | 5 | 5 | ||
Equity earnings (losses) net of income tax: | 96 | (26) | ||
Equity earnings (losses) | 101 | (21) | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 441 | 347 | ||
Discontinued operations | (51) | 21 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 783 | 979 | ||
ASSETS | 61,618 | $ 60,638 | [1] | |
EQUITY METHOD AND OTHER INVESTMENTS | 12,038 | 11,972 | ||
Operating Segments [Member] | SDG&E [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 1,145 | 1,055 | ||
INTEREST EXPENSE | 103 | 52 | ||
INTEREST INCOME | 1 | 1 | ||
DEPRECIATION AND AMORTIZATION | 186 | 166 | ||
Income Tax Expense (Benefit) | 5 | 56 | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 176 | 170 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 356 | 475 | ||
ASSETS | 19,558 | 19,225 | ||
Operating Segments [Member] | SoCalGas [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 1,361 | 1,126 | ||
INTEREST EXPENSE | 34 | 27 | ||
DEPRECIATION AND AMORTIZATION | 147 | 135 | ||
Income Tax Expense (Benefit) | 19 | 59 | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 264 | 225 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 324 | 403 | ||
ASSETS | 15,904 | 15,389 | ||
Operating Segments [Member] | Sempra Texas Utility [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Equity earnings (losses) net of income tax: | 94 | 15 | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 94 | 15 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
ASSETS | 9,748 | 9,652 | ||
EQUITY METHOD AND OTHER INVESTMENTS | 9,748 | 9,652 | ||
Operating Segments [Member] | Sempra Mexico [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 383 | 308 | ||
INTEREST EXPENSE | 30 | 30 | ||
INTEREST INCOME | 19 | 15 | ||
DEPRECIATION AND AMORTIZATION | 44 | 43 | ||
Income Tax Expense (Benefit) | 72 | 155 | ||
Equity earnings (losses) net of income tax: | 2 | (41) | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 57 | 20 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 85 | 59 | ||
ASSETS | 9,382 | 9,165 | ||
EQUITY METHOD AND OTHER INVESTMENTS | 737 | 747 | ||
Operating Segments [Member] | Sempra Renewables [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 7 | 25 | ||
INTEREST EXPENSE | 3 | 5 | ||
INTEREST INCOME | 10 | 2 | ||
DEPRECIATION AND AMORTIZATION | 0 | 13 | ||
Income Tax Expense (Benefit) | (10) | (7) | ||
Equity earnings before income tax: | 3 | 5 | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 13 | 21 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 0 | 31 | ||
ASSETS | 1,310 | 2,549 | ||
EQUITY METHOD AND OTHER INVESTMENTS | 290 | 291 | ||
Operating Segments [Member] | Sempra LNG [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 141 | 104 | ||
INTEREST EXPENSE | 4 | 8 | ||
INTEREST INCOME | 14 | 13 | ||
DEPRECIATION AND AMORTIZATION | 2 | 11 | ||
Income Tax Expense (Benefit) | 4 | 12 | ||
Equity earnings before income tax: | 2 | 0 | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 5 | (16) | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 18 | 6 | ||
ASSETS | 3,731 | 4,060 | ||
EQUITY METHOD AND OTHER INVESTMENTS | 1,255 | 1,271 | ||
Segment Reconciling Items [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 0 | (1) | ||
INTEREST EXPENSE | 109 | 112 | ||
INTEREST INCOME | 1 | 16 | ||
DEPRECIATION AND AMORTIZATION | 4 | 4 | ||
Income Tax Expense (Benefit) | (48) | (33) | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | (117) | (109) | ||
Discontinued operations | (51) | 21 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 0 | 5 | ||
ASSETS | 1,135 | 1,070 | ||
Discontinued operations | 3,845 | 3,718 | ||
EQUITY METHOD AND OTHER INVESTMENTS | 8 | 11 | ||
Intersegment eliminations [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | (139) | (81) | ||
INTEREST EXPENSE | (23) | (28) | ||
INTEREST INCOME | (24) | (18) | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
ASSETS | (2,995) | $ (4,190) | ||
Intersegment eliminations [Member] | SDG&E [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 1 | 1 | ||
Intersegment eliminations [Member] | SoCalGas [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 17 | 17 | ||
Intersegment eliminations [Member] | Sempra Mexico [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 28 | 29 | ||
Intersegment eliminations [Member] | Sempra LNG [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | $ 93 | $ 34 | ||
Oncor Electric Delivery Company LLC. [Member] | Oncor Holdings [Member] | Sempra Texas Utility [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Ownership interest | 80.25% | |||
[1] | Derived from audited financial statements. |