COVER
COVER - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-14201 | |
Entity Registrant Name | SEMPRA ENERGY | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 33-0732627 | |
Entity Address, Address Line One | 488 8th Avenue | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92101 | |
City Area Code | (619) | |
Local Phone Number | 696-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Shares Outstanding | 314,304,730 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001032208 | |
San Diego Gas and Electric Company | ||
Document Information [Line Items] | ||
Entity File Number | 1-03779 | |
Entity Registrant Name | SAN DIEGO GAS & ELECTRIC COMPANY | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 95-1184800 | |
Entity Address, Address Line One | 8326 Century Park Court | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92123 | |
City Area Code | (619) | |
Local Phone Number | 696-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000086521 | |
Southern California Gas Company | ||
Document Information [Line Items] | ||
Entity File Number | 1-01402 | |
Entity Registrant Name | SOUTHERN CALIFORNIA GAS COMPANY | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 95-1240705 | |
Entity Address, Address Line One | 555 West Fifth Street | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90013 | |
City Area Code | (213) | |
Local Phone Number | 244-1200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000092108 | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, without par value | |
Trading Symbol | SRE | |
Security Exchange Name | NYSE | |
5.75% Junior Subordinated Notes Due 2079 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 5.75% Junior Subordinated Notes Due 2079, $25 par value | |
Trading Symbol | SREA | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
REVENUES | ||
Natural gas | $ 2,320 | $ 1,777 |
Electric | 1,117 | 1,068 |
Energy-related businesses | 383 | 414 |
Total revenues | 3,820 | 3,259 |
Operating expenses | ||
Operation and maintenance | (1,086) | (1,001) |
Aliso Canyon litigation and regulatory matters | (92) | 0 |
Depreciation and amortization | (493) | (442) |
Franchise fees and other taxes | (162) | (153) |
Other income, net | 38 | 35 |
Interest income | 25 | 19 |
Interest expense | (243) | (259) |
Income before income taxes and equity earnings | 665 | 768 |
Income tax expense | (334) | (158) |
Equity earnings | 326 | 318 |
Net income | 657 | 928 |
Earnings attributable to noncontrolling interests | (34) | (33) |
Preferred dividends | (11) | (21) |
Earnings attributable to common shares | $ 612 | $ 874 |
Basic EPS: | ||
Earnings (in dollars per share) | $ 1.93 | $ 2.91 |
Weighted-average common shares outstanding (in shares) | 316,353 | 300,905 |
Diluted EPS: | ||
Earnings (in dollars per share) | $ 1.93 | $ 2.87 |
Weighted-average common shares outstanding (in shares) | 317,434 | 308,458 |
Natural gas | ||
Operating expenses | ||
Operating expenses | $ (802) | $ (349) |
Electric fuel and purchased power | ||
Operating expenses | ||
Operating expenses | (205) | (232) |
Energy-related businesses | ||
Operating expenses | ||
Operating expenses | $ (135) | $ (109) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income | $ 657 | $ 928 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 4 | (6) |
Financial instruments | 98 | 107 |
Pension and other postretirement benefits | 8 | 14 |
Total other comprehensive (loss) income | 110 | 115 |
Comprehensive income | 767 | 1,043 |
Southern California Gas Company | ||
Net income | 334 | 407 |
Other comprehensive income (loss): | ||
Total other comprehensive (loss) income | 1 | |
Pretax amount | ||
Net income | 957 | 1,053 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 3 | (5) |
Financial instruments | 102 | 121 |
Pension and other postretirement benefits | 9 | 17 |
Total other comprehensive (loss) income | 114 | 133 |
Comprehensive income | 1,071 | 1,186 |
Pretax amount | Southern California Gas Company | ||
Net income | 418 | 501 |
Other comprehensive income (loss): | ||
Pension and other postretirement benefits | 1 | |
Total other comprehensive (loss) income | 1 | |
Comprehensive income | 419 | 501 |
Income tax (expense) benefit | ||
Net income | (334) | (158) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 0 | 0 |
Financial instruments | (24) | (29) |
Pension and other postretirement benefits | (1) | (3) |
Total other comprehensive (loss) income | (25) | (32) |
Comprehensive income | (359) | (190) |
Income tax (expense) benefit | Southern California Gas Company | ||
Net income | (84) | (94) |
Other comprehensive income (loss): | ||
Pension and other postretirement benefits | 0 | |
Total other comprehensive (loss) income | 0 | |
Comprehensive income | (84) | (94) |
Net-of-tax amount | ||
Net income | 623 | 895 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 3 | (5) |
Financial instruments | 78 | 92 |
Pension and other postretirement benefits | 8 | 14 |
Total other comprehensive (loss) income | 89 | 101 |
Comprehensive income | 712 | 996 |
Net-of-tax amount | Southern California Gas Company | ||
Net income | 334 | 407 |
Other comprehensive income (loss): | ||
Pension and other postretirement benefits | 1 | |
Total other comprehensive (loss) income | 1 | |
Comprehensive income | 335 | 407 |
Noncontrolling interests (after tax) | ||
Net income | 34 | 33 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 1 | (1) |
Financial instruments | 20 | 15 |
Pension and other postretirement benefits | 0 | 0 |
Total other comprehensive (loss) income | 21 | 14 |
Comprehensive income | $ 55 | $ 47 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Current assets: | |||
Cash and cash equivalents | $ 2,519 | $ 559 | [1] |
Restricted cash | 14 | 19 | [2] |
Accounts receivable – trade, net | 1,857 | 2,071 | [2] |
Accounts receivable – other, net | 338 | 398 | [2] |
Due from unconsolidated affiliates | 671 | 23 | [2] |
Income taxes receivable | 139 | 79 | [2] |
Inventories | 352 | 389 | [2] |
Prepaid expenses | 239 | 260 | |
Regulatory assets | 127 | 271 | [2] |
Greenhouse gas allowances | 98 | 97 | [2] |
Other current assets | 147 | 209 | [2] |
Total current assets | 6,501 | 4,375 | [2] |
Other assets: | |||
Restricted cash | 3 | 3 | [2] |
Due from unconsolidated affiliates | 0 | 637 | [2] |
Regulatory assets | 2,349 | 2,011 | [2] |
Insurance receivable for Aliso Canyon costs | 360 | 360 | [2] |
Greenhouse gas allowances | 539 | 422 | [2] |
Nuclear decommissioning trusts | 946 | 1,012 | [2] |
Dedicated assets in support of certain benefit plans | 532 | 567 | [2] |
Deferred income taxes | 148 | 151 | [2] |
Right-of-use assets – operating leases | 595 | 594 | [2] |
Investment in Oncor Holdings | 13,116 | 12,947 | [2] |
Other investments | 1,674 | 1,525 | [2] |
Goodwill | 1,602 | 1,602 | [2] |
Other intangible assets | 363 | 370 | [2] |
Wildfire fund | 324 | 331 | [2] |
Other long-term assets | 1,268 | 1,244 | [2] |
Total other assets | 23,819 | 23,776 | [2] |
Property, plant and equipment: | |||
Property, plant and equipment | 59,995 | 58,940 | [2] |
Less accumulated depreciation and amortization | (15,393) | (15,046) | [2] |
Property, plant and equipment, net | 44,602 | 43,894 | [2] |
ASSETS | 74,922 | 72,045 | [2] |
Current liabilities: | |||
Short-term debt | 2,181 | 3,471 | [2] |
Accounts payable – trade | 1,375 | 1,671 | [2] |
Accounts payable – other | 171 | 178 | [2] |
Dividends and interest payable | 591 | 563 | [2] |
Accrued compensation and benefits | 312 | 479 | [2] |
Regulatory liabilities | 704 | 359 | [2] |
Current portion of long-term debt and finance leases | 298 | 106 | [2] |
Reserve for Aliso Canyon costs | 2,052 | 1,980 | [2] |
Greenhouse gas obligations | 98 | 97 | [2] |
Other current liabilities | 1,218 | 1,131 | [2] |
Total current liabilities | 9,000 | 10,035 | [2] |
Long-term debt and finance leases | 24,416 | 21,068 | [2] |
Deferred credits and other liabilities: | |||
Due to unconsolidated affiliates | 309 | 287 | [2] |
Regulatory liabilities | 3,360 | 3,402 | [2] |
Greenhouse gas obligations | 290 | 225 | [2] |
Pension and other postretirement benefit plan obligations, net of plan assets | 704 | 687 | [2] |
Deferred income taxes | 3,948 | 3,477 | [2] |
Asset retirement obligations | 3,417 | 3,375 | [2] |
Deferred credits and other | 1,918 | 2,070 | [2] |
Total deferred credits and other liabilities | 13,946 | 13,523 | [2] |
Commitments and contingencies (Note 11) | [2] | ||
Equity: | |||
Common stock | 11,656 | 11,862 | [2] |
Retained earnings | 13,798 | 13,548 | [2] |
Accumulated other comprehensive income (loss) | (229) | (318) | [2] |
Total shareholders’ equity | 26,114 | 25,981 | [2] |
Preferred stock of subsidiary | 20 | 20 | [2] |
Other noncontrolling interests | 1,426 | 1,418 | [2] |
Total equity | 27,560 | 27,419 | [2] |
Total liabilities and equity | 74,922 | 72,045 | [2] |
Series C Preferred Stock | |||
Equity: | |||
Preferred stock | $ 889 | $ 889 | [2] |
[1] | Derived from audited financial statements. | ||
[2] | Derived from audited financial statements. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
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) | 316,000,000 | 317,000,000 |
Series C Preferred Stock | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares outstanding (in shares) | 900,000 | 900,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 657 | $ 928 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 493 | 442 |
Deferred income taxes and investment tax credits | 347 | 97 |
Equity earnings | (326) | (318) |
Foreign currency transaction losses, net | 19 | 19 |
Share-based compensation expense | 17 | 17 |
Fixed-price contracts and other derivatives | 105 | 130 |
Other | 50 | 59 |
Net change in working capital components | 326 | 84 |
Insurance receivable for Aliso Canyon costs | 0 | 31 |
Distributions from investments | 204 | 208 |
Changes in other noncurrent assets and liabilities, net | (285) | (195) |
Net cash provided by operating activities | 1,607 | 1,502 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (1,204) | (1,181) |
Expenditures for investments and acquisitions | (85) | (115) |
Purchases of nuclear decommissioning trust assets | (242) | (288) |
Proceeds from sales of nuclear decommissioning trust assets | 242 | 288 |
Advances to unconsolidated affiliates | 0 | (8) |
Distributions from investments | 0 | 4 |
Other | (1) | (1) |
Net cash used in investing activities | (1,290) | (1,301) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Common dividends paid | (349) | (301) |
Preferred dividends paid | 0 | (36) |
Issuances of common stock | 3 | 0 |
Repurchases of common stock | (226) | (37) |
Issuances of debt (maturities greater than 90 days) | 4,023 | 102 |
Payments on debt (maturities greater than 90 days) and finance leases | (1,048) | (1,093) |
(Decrease) increase in short-term debt, net | (720) | 932 |
Advances from unconsolidated affiliates | 18 | 20 |
Proceeds from sales of noncontrolling interests | 13 | 7 |
Distributions to noncontrolling interests | (53) | 0 |
Contributions from noncontrolling interests | 6 | 0 |
Other | (29) | (1) |
Net cash provided by (used in) financing activities | 1,638 | (407) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | (1) |
Increase (decrease) in cash, cash equivalents and restricted cash | 1,955 | (207) |
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | 2,536 | 778 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 233 | 225 |
Income tax payments, net of refunds | 80 | 30 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures | 468 | 499 |
Increase in finance lease obligations for investment in PP&E | 13 | 15 |
Increase in ARO for investment in PP&E, net | 23 | 8 |
Conversion of mandatory convertible preferred stock | 0 | 1,693 |
Preferred stock | ||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Dividends declared but not paid | 11 | 32 |
Common Stock | ||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Dividends declared but not paid | $ 362 | $ 333 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Series C Preferred Stock | Series B Preferred Stock | Preferred stock | Preferred stockPreferred Class A | Common stock | Common stockPreferred Class A | Retained earnings | Retained earningsSeries C Preferred Stock | Retained earningsSeries B Preferred Stock | Accumulated other comprehensive income (loss) | Sempra Energy shareholders' equity | Sempra Energy shareholders' equitySeries C Preferred Stock | Sempra Energy shareholders' equitySeries B Preferred Stock | Non- controlling interests | |
Beginning Balance at Dec. 31, 2020 | $ 24,934 | $ 3,147 | $ 7,053 | $ 13,673 | $ (500) | $ 23,373 | $ 1,561 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income (loss) | 928 | 895 | 895 | 33 | ||||||||||||
Other comprehensive (loss) income | 115 | 101 | 101 | 14 | ||||||||||||
Share-based compensation expense | 17 | 17 | 17 | |||||||||||||
Dividends declared: | ||||||||||||||||
Preferred dividends | $ (11) | $ (10) | $ (11) | $ (10) | $ (11) | $ (10) | ||||||||||
Common stock dividends declared | (333) | (333) | (333) | |||||||||||||
Conversion of stock | 0 | $ (1,693) | $ 1,693 | 0 | ||||||||||||
Repurchases of common stock | (37) | (37) | (37) | |||||||||||||
Noncontrolling interest activities: | ||||||||||||||||
Sale | 5 | 4 | 4 | 1 | ||||||||||||
Ending balance at Mar. 31, 2021 | 25,608 | 1,454 | 8,730 | 14,214 | (399) | 23,999 | 1,609 | |||||||||
Beginning Balance at Dec. 31, 2021 | 27,419 | [1] | 889 | 11,862 | 13,548 | (318) | 25,981 | 1,438 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income (loss) | 657 | 623 | 623 | 34 | ||||||||||||
Other comprehensive (loss) income | 110 | 89 | 89 | 21 | ||||||||||||
Share-based compensation expense | 17 | 17 | 17 | |||||||||||||
Dividends declared: | ||||||||||||||||
Preferred dividends | $ (11) | $ (11) | $ (11) | |||||||||||||
Common stock dividends declared | (362) | (362) | (362) | |||||||||||||
Issuances of common stock | 3 | 3 | 3 | |||||||||||||
Repurchases of common stock | (226) | (226) | (226) | |||||||||||||
Noncontrolling interest activities: | ||||||||||||||||
Contributions | 6 | 6 | ||||||||||||||
Distributions | (53) | (53) | ||||||||||||||
Ending balance at Mar. 31, 2022 | $ 27,560 | $ 889 | $ 11,656 | $ 13,798 | $ (229) | $ 26,114 | $ 1,446 | |||||||||
[1] | Derived from audited financial statements. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Dividends declared per share of common stock (in dollars per share) | $ 1.15 | $ 1.10 |
Series C Preferred Stock | ||
Dividends declared per share of preferred stock (in dollars per share) | $ 12.19 | 12.19 |
Series B Preferred Stock | ||
Dividends declared per share of preferred stock (in dollars per share) | $ 1.69 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - SDG&E - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
REVENUES | ||
Electric | $ 1,117 | $ 1,068 |
Natural gas | 2,320 | 1,777 |
Operating expenses | ||
Other income, net | 38 | 35 |
Interest income | 25 | 19 |
Interest expense | (243) | (259) |
Income before income taxes and equity earnings | 665 | 768 |
Income tax expense | (334) | (158) |
Earnings attributable to common shares | 612 | 874 |
San Diego Gas and Electric Company | ||
REVENUES | ||
Electric | 1,120 | 1,069 |
Natural gas | 325 | 268 |
Operating revenues | 1,445 | 1,337 |
Operating expenses | ||
Cost of electric fuel and purchased power | 221 | 241 |
Cost of natural gas | 126 | 82 |
Operation and maintenance | 397 | 390 |
Depreciation and amortization | 239 | 213 |
Franchise fees and other taxes | 92 | 88 |
Total operating expenses | 1,075 | 1,014 |
Operating income | 370 | 323 |
Other income, net | 34 | 35 |
Interest income | 0 | 1 |
Interest expense | (106) | (102) |
Income before income taxes and equity earnings | 298 | 257 |
Income tax expense | (64) | (45) |
Earnings attributable to common shares | $ 234 | $ 212 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - SDG&E - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income | $ 657 | $ 928 |
Pretax amount | ||
Net income | 957 | 1,053 |
Income tax (expense) benefit | ||
Net income | (334) | (158) |
Net-of-tax amount | ||
Net income | 623 | 895 |
San Diego Gas and Electric Company | ||
Net income | 234 | 212 |
San Diego Gas and Electric Company | Pretax amount | ||
Comprehensive income | 298 | 257 |
Net income | 298 | 257 |
San Diego Gas and Electric Company | Income tax (expense) benefit | ||
Comprehensive income | (64) | (45) |
Net income | (64) | (45) |
San Diego Gas and Electric Company | Net-of-tax amount | ||
Comprehensive income | 234 | 212 |
Net income | $ 234 | $ 212 |
CONDENSED CONSOLIDATED BALANC_3
CONDENSED CONSOLIDATED BALANCE SHEETS - SDG&E - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Current assets: | |||
Cash and cash equivalents | $ 2,519 | $ 559 | [1] |
Accounts receivable – trade, net | 1,857 | 2,071 | [2] |
Accounts receivable – other, net | 338 | 398 | [2] |
Due from unconsolidated affiliates | 671 | 23 | [2] |
Income taxes receivable | 139 | 79 | [2] |
Inventories | 352 | 389 | [2] |
Prepaid expenses | 239 | 260 | |
Regulatory assets | 127 | 271 | [2] |
Greenhouse gas allowances | 98 | 97 | [2] |
Other current assets | 147 | 209 | [2] |
Total current assets | 6,501 | 4,375 | [2] |
Other assets: | |||
Regulatory assets | 2,349 | 2,011 | [2] |
Greenhouse gas allowances | 539 | 422 | [2] |
Nuclear decommissioning trusts | 946 | 1,012 | [2] |
Right-of-use assets – operating leases | 595 | 594 | [2] |
Wildfire fund | 324 | 331 | [2] |
Other long-term assets | 1,268 | 1,244 | [2] |
Total other assets | 23,819 | 23,776 | [2] |
Property, plant and equipment: | |||
Property, plant and equipment | 59,995 | 58,940 | [2] |
Less accumulated depreciation and amortization | (15,393) | (15,046) | [2] |
Property, plant and equipment, net | 44,602 | 43,894 | [2] |
ASSETS | 74,922 | 72,045 | [2] |
Current liabilities: | |||
Short-term debt | 2,181 | 3,471 | [2] |
Accrued compensation and benefits | 312 | 479 | [2] |
Regulatory liabilities | 704 | 359 | [2] |
Current portion of long-term debt and finance leases | 298 | 106 | [2] |
Greenhouse gas obligations | 98 | 97 | [2] |
Other current liabilities | 1,218 | 1,131 | [2] |
Total current liabilities | 9,000 | 10,035 | [2] |
Long-term debt and finance leases | 24,416 | 21,068 | [2] |
Deferred credits and other liabilities: | |||
Regulatory liabilities | 3,360 | 3,402 | [2] |
Greenhouse gas obligations | 290 | 225 | [2] |
Pension and other postretirement benefit plan obligations, net of plan assets | 704 | 687 | [2] |
Deferred income taxes | 3,948 | 3,477 | [2] |
Asset retirement obligations | 3,417 | 3,375 | [2] |
Deferred credits and other | 1,918 | 2,070 | [2] |
Total deferred credits and other liabilities | 13,946 | 13,523 | [2] |
Commitments and contingencies (Note 11) | [2] | ||
Equity: | |||
Common stock | 11,656 | 11,862 | [2] |
Retained earnings | 13,798 | 13,548 | [2] |
Accumulated other comprehensive income (loss) | (229) | (318) | [2] |
Total shareholders’ equity | 26,114 | 25,981 | [2] |
Total liabilities and equity | 74,922 | 72,045 | [2] |
San Diego Gas and Electric Company | |||
Current assets: | |||
Cash and cash equivalents | 528 | 25 | [2] |
Accounts receivable – trade, net | 742 | 715 | [2] |
Accounts receivable – other, net | 63 | 78 | [2] |
Due from unconsolidated affiliates | 1 | 0 | [1] |
Income taxes receivable | 0 | 9 | [2] |
Inventories | 123 | 123 | [2] |
Prepaid expenses | 164 | 174 | [2] |
Regulatory assets | 116 | 231 | [2] |
Greenhouse gas allowances | 13 | 13 | [2] |
Other current assets | 70 | 63 | [2] |
Total current assets | 1,820 | 1,431 | [2] |
Other assets: | |||
Regulatory assets | 903 | 786 | [2] |
Greenhouse gas allowances | 121 | 111 | [2] |
Nuclear decommissioning trusts | 946 | 1,012 | [2] |
Right-of-use assets – operating leases | 206 | 185 | [2] |
Wildfire fund | 324 | 331 | [2] |
Other long-term assets | 149 | 154 | [2] |
Total other assets | 2,649 | 2,579 | [2] |
Property, plant and equipment: | |||
Property, plant and equipment | 26,921 | 26,456 | [2] |
Less accumulated depreciation and amortization | (6,555) | (6,408) | [2] |
Property, plant and equipment, net | 20,366 | 20,048 | [2] |
ASSETS | 24,835 | 24,058 | [2] |
Current liabilities: | |||
Short-term debt | 0 | 776 | [2] |
Accounts payable | 521 | 588 | [2] |
Due to unconsolidated affiliates | 105 | 97 | [2] |
Interest payable | 75 | 50 | [2] |
Accrued compensation and benefits | 78 | 148 | [2] |
Regulatory liabilities | 135 | 14 | [2] |
Current portion of long-term debt and finance leases | 33 | 49 | [2] |
Customer deposits | 28 | 30 | [2] |
Greenhouse gas obligations | 13 | 13 | [2] |
Asset retirement obligations | 88 | 86 | [2] |
Other current liabilities | 371 | 260 | [2] |
Total current liabilities | 1,447 | 2,111 | [2] |
Long-term debt and finance leases | 8,763 | 7,581 | [2] |
Deferred credits and other liabilities: | |||
Regulatory liabilities | 2,273 | 2,302 | [2] |
Greenhouse gas obligations | 43 | 31 | [2] |
Pension and other postretirement benefit plan obligations, net of plan assets | 30 | 25 | [2] |
Deferred income taxes | 2,305 | 2,275 | [2] |
Asset retirement obligations | 799 | 804 | [2] |
Deferred credits and other | 692 | 680 | [2] |
Total deferred credits and other liabilities | 6,142 | 6,117 | [2] |
Commitments and contingencies (Note 11) | [2] | ||
Equity: | |||
Preferred stock | 0 | 0 | [2] |
Common stock | 1,660 | 1,660 | [2] |
Retained earnings | 6,833 | 6,599 | [2] |
Accumulated other comprehensive income (loss) | (10) | (10) | [2] |
Total shareholders’ equity | 8,483 | 8,249 | [2] |
Total liabilities and equity | 24,835 | 24,058 | [2] |
Series C Preferred Stock | |||
Equity: | |||
Preferred stock | $ 889 | $ 889 | [2] |
[1] | Derived from audited financial statements. | ||
[2] | Derived from audited financial statements. |
CONDENSED CONSOLIDATED BALANC_4
CONDENSED CONSOLIDATED BALANCE SHEETS - SDG&E (Parentheticals) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
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) | 316,000,000 | 317,000,000 |
San Diego Gas and Electric Company | ||
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 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SDG&E - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 657 | $ 928 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 493 | 442 |
Deferred income taxes and investment tax credits | 347 | 97 |
Other | 50 | 59 |
Net change in working capital components | 326 | 84 |
Changes in other noncurrent assets and liabilities, net | (285) | (195) |
Net cash provided by operating activities | 1,607 | 1,502 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (1,204) | (1,181) |
Purchases of nuclear decommissioning trust assets | (242) | (288) |
Proceeds from sales of nuclear decommissioning trust assets | 242 | 288 |
Net cash used in investing activities | (1,290) | (1,301) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuances of debt (maturities greater than 90 days) | 4,023 | 102 |
Payments on debt (maturities greater than 90 days) and finance leases | (1,048) | (1,093) |
(Decrease) increase in short-term debt, net | (720) | 932 |
Net cash provided by (used in) financing activities | 1,638 | (407) |
Increase (decrease) in cash, cash equivalents and restricted cash | 1,955 | (207) |
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | 2,536 | 778 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 233 | 225 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures | 468 | 499 |
Increase in finance lease obligations for investment in PP&E | 13 | 15 |
San Diego Gas and Electric Company | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 234 | 212 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 239 | 213 |
Deferred income taxes and investment tax credits | 4 | 27 |
Other | 11 | 1 |
Net change in working capital components | 272 | 16 |
Changes in other noncurrent assets and liabilities, net | (90) | (73) |
Net cash provided by operating activities | 670 | 396 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (552) | (555) |
Purchases of nuclear decommissioning trust assets | (242) | (288) |
Proceeds from sales of nuclear decommissioning trust assets | 242 | 288 |
Net cash used in investing activities | (552) | (555) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuances of debt (maturities greater than 90 days) | 1,195 | 0 |
Payments on debt (maturities greater than 90 days) and finance leases | (400) | (224) |
(Decrease) increase in short-term debt, net | (401) | 130 |
Debt issuance costs | (9) | 0 |
Net cash provided by (used in) financing activities | 385 | (94) |
Increase (decrease) in cash, cash equivalents and restricted cash | 503 | (253) |
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | 528 | 9 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 81 | 75 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures | 164 | 146 |
Increase in finance lease obligations for investment in PP&E | $ 5 | $ 6 |
CONSOLIDATED STATEMENTS OF CH_3
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - SDG&E - USD ($) $ in Millions | Total | Common stock | Retained earnings | Accumulated other comprehensive income (loss) | Sempra Energy shareholders' equity | San Diego Gas and Electric Company | San Diego Gas and Electric CompanyCommon stock | San Diego Gas and Electric CompanyRetained earnings | San Diego Gas and Electric CompanyAccumulated other comprehensive income (loss) | San Diego Gas and Electric CompanySempra Energy shareholders' equity | |
Beginning Balance at Dec. 31, 2020 | $ 24,934 | $ 7,053 | $ 13,673 | $ (500) | $ 23,373 | $ 1,660 | $ 6,080 | $ (10) | $ 7,730 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 928 | 895 | 895 | $ 212 | 212 | 212 | |||||
Ending balance at Mar. 31, 2021 | 25,608 | 8,730 | 14,214 | (399) | 23,999 | 1,660 | 6,292 | (10) | 7,942 | ||
Beginning Balance at Dec. 31, 2021 | 27,419 | [1] | 11,862 | 13,548 | (318) | 25,981 | 1,660 | 6,599 | (10) | 8,249 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 657 | 623 | 623 | $ 234 | 234 | 234 | |||||
Ending balance at Mar. 31, 2022 | $ 27,560 | $ 11,656 | $ 13,798 | $ (229) | $ 26,114 | $ 1,660 | $ 6,833 | $ (10) | $ 8,483 | ||
[1] | Derived from audited financial statements. |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - SoCalGas - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating expenses | ||
Aliso Canyon litigation and regulatory matters | $ 92 | $ 0 |
Other income, net | 38 | 35 |
Interest expense | (243) | (259) |
Income before income taxes | 808 | 903 |
Income tax expense | (334) | (158) |
Earnings attributable to common shares | 612 | 874 |
Southern California Gas Company | ||
REVENUES | ||
Operating revenues | 1,993 | 1,508 |
Operating expenses | ||
Cost of natural gas | 677 | 273 |
Operation and maintenance | 551 | 503 |
Aliso Canyon litigation and regulatory matters | 92 | 0 |
Depreciation and amortization | 187 | 173 |
Franchise fees and other taxes | 62 | 58 |
Total operating expenses | 1,569 | 1,007 |
Operating income | 424 | 501 |
Other income, net | 34 | 39 |
Interest expense | (40) | (39) |
Income before income taxes | 418 | 501 |
Income tax expense | (84) | (94) |
Earnings attributable to common shares | $ 334 | $ 407 |
CONDENSED CONSOLIDATED STATEM_8
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - SoCalGas - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income | $ 657 | $ 928 |
Other comprehensive income (loss): | ||
Pension and other postretirement benefits | 8 | 14 |
Total other comprehensive (loss) income | 110 | 115 |
Pretax amount | ||
Net income | 957 | 1,053 |
Other comprehensive income (loss): | ||
Pension and other postretirement benefits | 9 | 17 |
Total other comprehensive (loss) income | 114 | 133 |
Income tax (expense) benefit | ||
Net income | (334) | (158) |
Other comprehensive income (loss): | ||
Pension and other postretirement benefits | (1) | (3) |
Total other comprehensive (loss) income | (25) | (32) |
Net-of-tax amount | ||
Net income | 623 | 895 |
Other comprehensive income (loss): | ||
Pension and other postretirement benefits | 8 | 14 |
Total other comprehensive (loss) income | 89 | 101 |
Southern California Gas Company | ||
Net income | 334 | 407 |
Other comprehensive income (loss): | ||
Total other comprehensive (loss) income | 1 | |
Southern California Gas Company | Pretax amount | ||
Net income | 418 | 501 |
Other comprehensive income (loss): | ||
Pension and other postretirement benefits | 1 | |
Total other comprehensive (loss) income | 1 | |
Comprehensive income | 419 | 501 |
Southern California Gas Company | Income tax (expense) benefit | ||
Net income | (84) | (94) |
Other comprehensive income (loss): | ||
Pension and other postretirement benefits | 0 | |
Total other comprehensive (loss) income | 0 | |
Comprehensive income | (84) | (94) |
Southern California Gas Company | Net-of-tax amount | ||
Net income | 334 | 407 |
Other comprehensive income (loss): | ||
Pension and other postretirement benefits | 1 | |
Total other comprehensive (loss) income | 1 | |
Comprehensive income | $ 335 | $ 407 |
CONDENSED CONSOLIDATED BALANC_5
CONDENSED CONSOLIDATED BALANCE SHEETS - SoCalGas - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Current assets: | |||
Cash and cash equivalents | $ 2,519 | $ 559 | [1] |
Accounts receivable – trade, net | 1,857 | 2,071 | [2] |
Accounts receivable – other, net | 338 | 398 | [2] |
Due from unconsolidated affiliates | 671 | 23 | [2] |
Income taxes receivable | 139 | 79 | [2] |
Inventories | 352 | 389 | [2] |
Regulatory assets | 127 | 271 | [2] |
Greenhouse gas allowances | 98 | 97 | [2] |
Other current assets | 147 | 209 | [2] |
Total current assets | 6,501 | 4,375 | [2] |
Other assets: | |||
Regulatory assets | 2,349 | 2,011 | [2] |
Insurance receivable for Aliso Canyon costs | 360 | 360 | [2] |
Greenhouse gas allowances | 539 | 422 | [2] |
Right-of-use assets – operating leases | 595 | 594 | [2] |
Other long-term assets | 1,268 | 1,244 | [2] |
Total other assets | 23,819 | 23,776 | [2] |
Property, plant and equipment: | |||
Property, plant and equipment | 59,995 | 58,940 | [2] |
Less accumulated depreciation and amortization | (15,393) | (15,046) | [2] |
Property, plant and equipment, net | 44,602 | 43,894 | [2] |
ASSETS | 74,922 | 72,045 | [2] |
Current liabilities: | |||
Short-term debt | 2,181 | 3,471 | [2] |
Accounts payable – trade | 1,375 | 1,671 | [2] |
Accounts payable – other | 171 | 178 | [2] |
Accrued compensation and benefits | 312 | 479 | [2] |
Regulatory liabilities | 704 | 359 | [2] |
Current portion of long-term debt and finance leases | 298 | 106 | [2] |
Reserve for Aliso Canyon costs | 2,052 | 1,980 | [2] |
Greenhouse gas obligations | 98 | 97 | [2] |
Other current liabilities | 1,218 | 1,131 | [2] |
Total current liabilities | 9,000 | 10,035 | [2] |
Long-term debt and finance leases | 24,416 | 21,068 | [2] |
Deferred credits and other liabilities: | |||
Regulatory liabilities | 3,360 | 3,402 | [2] |
Greenhouse gas obligations | 290 | 225 | [2] |
Pension and other postretirement benefit plan obligations, net of plan assets | 704 | 687 | [2] |
Deferred income taxes | 3,948 | 3,477 | [2] |
Asset retirement obligations | 3,417 | 3,375 | [2] |
Deferred credits and other | 1,918 | 2,070 | [2] |
Total deferred credits and other liabilities | 13,946 | 13,523 | [2] |
Commitments and contingencies (Note 11) | [2] | ||
Equity: | |||
Common stock | 11,656 | 11,862 | [2] |
Retained earnings | 13,798 | 13,548 | [2] |
Accumulated other comprehensive income (loss) | (229) | (318) | [2] |
Total shareholders’ equity | 26,114 | 25,981 | [2] |
Total liabilities and equity | 74,922 | 72,045 | [2] |
Southern California Gas Company | |||
Current assets: | |||
Cash and cash equivalents | 613 | 37 | [2] |
Accounts receivable – trade, net | 870 | 1,084 | [2] |
Accounts receivable – other, net | 58 | 58 | [2] |
Due from unconsolidated affiliates | 44 | 49 | [2] |
Income taxes receivable | 23 | 23 | |
Inventories | 149 | 172 | [2] |
Regulatory assets | 11 | 40 | [2] |
Greenhouse gas allowances | 76 | 75 | [2] |
Other current assets | 42 | 61 | [2] |
Total current assets | 1,886 | 1,599 | [2] |
Other assets: | |||
Regulatory assets | 1,369 | 1,148 | [2] |
Insurance receivable for Aliso Canyon costs | 360 | 360 | [2] |
Greenhouse gas allowances | 392 | 290 | [2] |
Right-of-use assets – operating leases | 52 | 57 | [2] |
Other long-term assets | 612 | 627 | [2] |
Total other assets | 2,785 | 2,482 | [2] |
Property, plant and equipment: | |||
Property, plant and equipment | 23,531 | 23,104 | [2] |
Less accumulated depreciation and amortization | (6,997) | (6,861) | [2] |
Property, plant and equipment, net | 16,534 | 16,243 | [2] |
ASSETS | 21,205 | 20,324 | [2] |
Current liabilities: | |||
Short-term debt | 0 | 385 | [3] |
Accounts payable – trade | 551 | 775 | [3] |
Accounts payable – other | 126 | 142 | [3] |
Due to unconsolidated affiliates | 45 | 36 | [3] |
Accrued compensation and benefits | 144 | 202 | [3] |
Regulatory liabilities | 569 | 345 | [3] |
Current portion of long-term debt and finance leases | 12 | 11 | [3] |
Customer deposits | 13 | 13 | |
Reserve for Aliso Canyon costs | 2,052 | 1,980 | [3] |
Greenhouse gas obligations | 76 | 75 | [3] |
Asset retirement obligations | 77 | 77 | [3] |
Other current liabilities | 266 | 271 | [3] |
Total current liabilities | 3,931 | 4,312 | [3] |
Long-term debt and finance leases | 5,468 | 4,773 | [3] |
Deferred credits and other liabilities: | |||
Regulatory liabilities | 1,087 | 1,100 | [3] |
Greenhouse gas obligations | 221 | 174 | [3] |
Pension and other postretirement benefit plan obligations, net of plan assets | 567 | 551 | [3] |
Deferred income taxes | 1,175 | 1,039 | [3] |
Asset retirement obligations | 2,552 | 2,505 | [3] |
Deferred credits and other | 427 | 428 | [2] |
Total deferred credits and other liabilities | 6,029 | 5,797 | [2] |
Commitments and contingencies (Note 11) | [3] | ||
Equity: | |||
Preferred stock | 22 | 22 | [3] |
Common stock | 1,666 | 1,666 | [3] |
Retained earnings | 4,119 | 3,785 | [3] |
Accumulated other comprehensive income (loss) | (30) | (31) | [3] |
Total shareholders’ equity | 5,777 | 5,442 | [2] |
Total liabilities and equity | $ 21,205 | $ 20,324 | [3] |
[1] | Derived from audited financial statements. | ||
[2] | Derived from audited financial statements. | ||
[3] | Derived from audited financial statements. |
CONDENSED CONSOLIDATED BALANC_6
CONDENSED CONSOLIDATED BALANCE SHEETS - SoCalGas (Parentheticals) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
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) | 316,000,000 | 317,000,000 |
Southern California Gas Company | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 11,000,000 | 11,000,000 |
Preferred stock, shares outstanding (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 |
CONDENSED CONSOLIDATED STATEM_9
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SoCalGas - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 657 | $ 928 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 493 | 442 |
Deferred income taxes and investment tax credits | 347 | 97 |
Other | 50 | 59 |
Net change in working capital components | 326 | 84 |
Insurance receivable for Aliso Canyon costs | 0 | 31 |
Changes in other noncurrent assets and liabilities, net | (285) | (195) |
Net cash provided by operating activities | 1,607 | 1,502 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (1,204) | (1,181) |
Net cash used in investing activities | (1,290) | (1,301) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Common dividends paid | (349) | (301) |
Issuances of debt (maturities greater than 90 days) | 4,023 | 102 |
Decrease in short-term debt, net | (720) | 932 |
Net cash provided by (used in) financing activities | 1,638 | (407) |
Increase (decrease) in cash, cash equivalents and restricted cash | 1,955 | (207) |
Cash, cash equivalents and restricted cash, January 1 | 581 | 985 |
Cash, cash equivalents and restricted cash, March 31 | 2,536 | 778 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 233 | 225 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures | 468 | 499 |
Increase in ARO for investment in PP&E, net | 23 | 8 |
Increase in finance lease obligations for investment in PP&E | 13 | 15 |
Southern California Gas Company | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 334 | 407 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 187 | 173 |
Deferred income taxes and investment tax credits | 84 | (14) |
Other | 24 | 27 |
Net change in working capital components | 323 | 299 |
Insurance receivable for Aliso Canyon costs | 0 | 31 |
Changes in other noncurrent assets and liabilities, net | (211) | (124) |
Net cash provided by operating activities | 741 | 799 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (468) | (459) |
Net cash used in investing activities | (468) | (459) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Common dividends paid | 0 | (25) |
Issuances of debt (maturities greater than 90 days) | 697 | 0 |
Payments on finance leases | (3) | (3) |
Decrease in short-term debt, net | (385) | (113) |
Debt issuance costs | (6) | 0 |
Net cash provided by (used in) financing activities | 303 | (141) |
Increase (decrease) in cash, cash equivalents and restricted cash | 576 | 199 |
Cash, cash equivalents and restricted cash, January 1 | 37 | 4 |
Cash, cash equivalents and restricted cash, March 31 | 613 | 203 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 43 | 44 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures | 185 | 150 |
Increase in ARO for investment in PP&E, net | 22 | (9) |
Increase in finance lease obligations for investment in PP&E | 8 | 9 |
Dividends declared but not paid | $ 0 | $ 25 |
CONSOLIDATED STATEMENTS OF CH_4
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - SoCalGas - USD ($) $ in Millions | Total | Preferred stock | Common stock | Retained earnings | Accumulated other comprehensive income (loss) | Southern California Gas Company | Southern California Gas CompanyPreferred stock | Southern California Gas CompanyCommon stock | Southern California Gas CompanyRetained earnings | Southern California Gas CompanyAccumulated other comprehensive income (loss) | |
Beginning Balance at Dec. 31, 2020 | $ 24,934 | $ 3,147 | $ 7,053 | $ 13,673 | $ (500) | $ 5,144 | $ 22 | $ 866 | $ 4,287 | $ (31) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 928 | 895 | 407 | 407 | |||||||
Other comprehensive (loss) income | 115 | 101 | |||||||||
Dividends declared: | |||||||||||
Preferred dividends | 0 | 0 | |||||||||
Common stock dividends declared | (333) | (333) | (50) | (50) | |||||||
Ending balance at Mar. 31, 2021 | 25,608 | 1,454 | 8,730 | 14,214 | (399) | 5,501 | 22 | 866 | 4,644 | (31) | |
Beginning Balance at Dec. 31, 2021 | 27,419 | [1] | 889 | 11,862 | 13,548 | (318) | 5,442 | 22 | 1,666 | 3,785 | (31) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 657 | 623 | 334 | 334 | |||||||
Other comprehensive (loss) income | 110 | 89 | 1 | 1 | |||||||
Dividends declared: | |||||||||||
Preferred dividends | 0 | 0 | |||||||||
Common stock dividends declared | (362) | (362) | |||||||||
Ending balance at Mar. 31, 2022 | $ 27,560 | $ 889 | $ 11,656 | $ 13,798 | $ (229) | $ 5,777 | $ 22 | $ 1,666 | $ 4,119 | $ (30) | |
[1] | Derived from audited financial statements. |
CONSOLIDATED STATEMENTS OF CH_5
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - SoCalGas (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Dividends declared per share of common stock (in dollars per share) | $ 1.15 | $ 1.10 |
Southern California Gas Company | ||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.38 | 0.38 |
Dividends declared per share of common stock (in dollars per share) | $ 0.55 |
GENERAL INFORMATION AND OTHER F
GENERAL INFORMATION AND OTHER FINANCIAL DATA | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL INFORMATION AND OTHER FINANCIAL DATA | GENERAL INFORMATION AND OTHER FINANCIAL DATA PRINCIPLES OF CONSOLIDATION Sempra Sempra’s Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based holding company doing business as Sempra, and its consolidated entities. In the fourth quarter of 2021, we formed Sempra Infrastructure, which resulted in a change to our reportable segments. Historical segment disclosures have been restated to conform with the current presentation of our four separate reportable segments, which we discuss in Note 12. 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 common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra. SoCalGas SoCalGas’ common stock is wholly owned by Pacific Enterprises, which is a wholly owned subsidiary of Sempra. BASIS OF PRESENTATION This is a combined report of Sempra, SDG&E and SoCalGas. We provide separate information for SDG&E and SoCalGas as required. We have eliminated intercompany accounts and transactions within the consolidated financial statements of each reporting entity. We have prepared our Condensed Consolidated Financial Statements in conformity with U.S. GAAP and in accordance with the interim period reporting requirements of Form 10-Q and applicable rules of the SEC. The financial statements reflect all adjustments that are necessary for a fair presentation of the results for the interim periods. These adjustments are only of a normal, recurring nature. Results of operations for interim periods are not necessarily indicative of results for the entire year or for any other period. We evaluated events and transactions that occurred after March 31, 2022 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. All December 31, 2021 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2021 Consolidated Financial Statements in the Annual Report. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the interim period reporting provisions of U.S. GAAP and the SEC. We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report 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 period reporting purposes. The information contained in this report should be read in conjunction with the Annual Report. Regulated Operations SDG&E, SoCalGas and Sempra Infrastructure’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 revenue recognition and the effects of regulation at our utilities in Notes 3 and 4 below and in Notes 1, 3 and 4 of the Notes to Consolidated Financial Statements in the Annual Report. Our Sempra Texas Utilities segment is comprised of our equity method investments in holding companies that own interests in regulated electric transmission and distribution utilities in Texas. CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on Sempra’s Condensed Consolidated Balance Sheets to the sum of such amounts reported on Sempra’s 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, 2022 2021 Cash and cash equivalents $ 2,519 $ 559 Restricted cash, current 14 19 Restricted cash, noncurrent 3 3 Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows $ 2,536 $ 581 CREDIT LOSSES We are exposed to credit losses from financial assets measured at amortized cost, including trade and other accounts receivable, amounts due from unconsolidated affiliates, our net investment in sales-type leases and a note receivable. We are also exposed to credit losses from off-balance sheet arrangements through Sempra’s guarantee related to Cameron LNG JV’s SDSRA, which we discuss in Note 6. We regularly monitor and evaluate credit losses and record allowances for expected credit losses, if necessary, for trade and other accounts receivable using a combination of factors, including past-due status based on contractual terms, trends in write-offs, the age of the receivables and customer payment patterns, historical and industry trends, counterparty creditworthiness, economic conditions and specific events, such as bankruptcies, pandemics and other factors. We write off financial assets measured at amortized cost in the period in which we determine they are not recoverable. We record recoveries of amounts previously written off when it is known that they will be recovered. In 2021, SDG&E and SoCalGas applied, on behalf of their customers, for financial assistance from the California Department of Community Services and Development under the California Arrearage Payment Program, which provided funds of $63 million and $79 million for SDG&E and SoCalGas, respectively. In the first quarter of 2022, SDG&E and SoCalGas received and applied the amounts directly to eligible customer accounts to reduce past due balances. We provide below allowances and changes in allowances for credit losses for trade receivables and other receivables. SDG&E and SoCalGas record changes in the allowances for credit losses related to Accounts Receivable – Trade in regulatory accounts. RECEIVABLES – ALLOWANCES FOR CREDIT LOSSES (Dollars in millions) 2022 2021 Sempra: Allowances for credit losses at January 1 $ 136 $ 138 Provisions for expected credit losses 48 43 Write-offs (19) (5) Allowances for credit losses at March 31 $ 165 $ 176 SDG&E: Allowances for credit losses at January 1 $ 66 $ 69 Provisions for expected credit losses 21 15 Write-offs (9) (3) Allowances for credit losses at March 31 $ 78 $ 81 SoCalGas: Allowances for credit losses at January 1 $ 69 $ 68 Provisions for expected credit losses 26 28 Write-offs (10) (2) Allowances for credit losses at March 31 $ 85 $ 94 Allowances for credit losses related to accounts receivable are included in the Condensed Consolidated Balance Sheets as follows: ALLOWANCES FOR CREDIT LOSSES (Dollars in millions) March 31, December 31, 2022 2021 Sempra: Accounts receivable – trade, net $ 125 $ 94 Accounts receivable – other, net 38 39 Other long-term assets 2 3 Total allowances for credit losses $ 165 $ 136 SDG&E: Accounts receivable – trade, net $ 55 $ 42 Accounts receivable – other, net 22 22 Other long-term assets 1 2 Total allowances for credit losses $ 78 $ 66 SoCalGas: Accounts receivable – trade, net $ 68 $ 51 Accounts receivable – other, net 16 17 Other long-term assets 1 1 Total allowances for credit losses $ 85 $ 69 As we discuss below in “Transactions with Affiliates,” we have loans due from unconsolidated affiliates with varying tenors, interest rates and currencies. On a quarterly basis, we evaluate credit losses and record allowances for expected credit losses on amounts due from unconsolidated affiliates, if necessary, based on credit quality indicators such as external credit ratings, published default rate studies, the maturity date of the instrument and past delinquencies. However, we do not record allowances for expected credit losses related to accrued interest receivable on loans due from unconsolidated affiliates because we write off such amounts, if any, through a reversal of interest income in the period we determine such amounts are uncollectible. In the absence of external credit ratings, we may utilize an internally developed credit rating based on our analysis of a counterparty’s financial statements to determine our expected credit losses. At December 31, 2021, $1 million of expected credit losses is included in noncurrent Due From Unconsolidated Affiliates on Sempra’s Condensed Consolidated Balance Sheet. As we discuss below in “Note Receivable,” we have an interest-bearing promissory note due from KKR. On a quarterly basis, we evaluate credit losses and record allowances for expected credit losses on this note receivable, including compounded interest and unamortized transaction costs, based on published default rate studies, the maturity date of the instrument and an internally developed credit rating. At March 31, 2022 and December 31, 2021, $7 million and $8 million, respectively, of expected credit losses are included in Other Long-Term Assets on Sempra’s Condensed Consolidated Balance Sheets. As we discuss below in Note 6, Sempra provided a guarantee for the benefit of Cameron LNG JV related to amounts withdrawn INVENTORIES The components of inventories are as follows: INVENTORY BALANCES (Dollars in millions) Sempra SDG&E SoCalGas March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Natural gas $ 129 $ 164 $ — $ — $ 87 $ 114 LNG 22 27 — — — — Materials and supplies 201 198 123 123 62 58 Total $ 352 $ 389 $ 123 $ 123 $ 149 $ 172 NOTE RECEIVABLE In October 2021, Sempra loaned $300 million to KKR in exchange for an interest-bearing promissory note that is due in full no later than October 2029 and bears compound interest at 5% per annum, which may be paid quarterly or added to the outstanding principal at the election of KKR. At March 31, 2022 and December 31, 2021, Other Long-Term Assets includes $304 million and $297 million, respectively, of outstanding principal, compounded interest and unamortized transaction costs, net of allowance for credit losses, and at December 31, 2021, Other Current Assets includes $3 million of interest receivable on Sempra’s Condensed Consolidated Balance Sheets. CAPITALIZED FINANCING COSTS 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 at equity method investments that have not commenced planned principal operations. The table below summarizes capitalized financing costs, comprised of AFUDC and capitalized interest. CAPITALIZED FINANCING COSTS (Dollars in millions) Three months ended March 31, 2022 2021 Sempra $ 57 $ 59 SDG&E 28 30 SoCalGas 18 16 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. We will continue to evaluate our VIEs for any changes that may impact our determination of whether an entity is a VIE and if we are 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 indirectly Sempra, is the primary beneficiary. 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 it considers 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 SDG&E determines that it is the primary beneficiary, SDG&E and Sempra consolidate the entity that owns the facility as a VIE. In addition to tolling agreements, 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, including the operation and maintenance activities of the generating facility, that most significantly impact the economic performance of the other VIEs. If our ongoing evaluation of these VIEs were to conclude that SDG&E becomes the primary beneficiary and consolidation by SDG&E becomes necessary, the effects could be significant to the financial position and liquidity of SDG&E and Sempra. SDG&E determined that none of its PPAs and tolling agreements resulted in SDG&E being the primary beneficiary of a VIE at March 31, 2022 and December 31, 2021. PPAs and tolling agreements that relate to SDG&E’s involvement with VIEs are primarily accounted for as finance leases. The carrying amounts of the assets and liabilities under these contracts are included in PP&E, net, and finance lease liabilities with balances of $1,212 million and $1,217 million at March 31, 2022 and December 31, 2021, respectively. SDG&E recovers costs incurred on PPAs, tolling agreements and other variable interests through CPUC-approved long-term power procurement plans. SDG&E has no residual interest in the respective entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees or other commitments associated with these contracts other than the purchase commitments described in Note 16 of the Notes to Consolidated Financial Statements in the Annual Report. As a result, SDG&E’s potential exposure to loss from its variable interest in these VIEs is not significant. Sempra Texas Utilities Our 100% interest in Oncor Holdings is a VIE that owns an 80.25% interest in Oncor. Sempra is not the primary beneficiary of this 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 of the Notes to Consolidated Financial Statements in the Annual Report for additional information about our equity method investment in Oncor Holdings and restrictions on our ability to influence its activities. Our maximum exposure to loss, which fluctuates over time, from our interest in Oncor Holdings does not exceed the carrying value of our investment, which was $13,116 million at March 31, 2022 and $12,947 million at December 31, 2021. Sempra Infrastructure Cameron LNG JV Cameron LNG JV is a VIE principally due to contractual provisions that transfer certain risks to customers. Sempra is not the primary beneficiary of this VIE because we do not have the power to direct the most significant activities of Cameron LNG JV, including LNG production and operation and maintenance activities at the liquefaction facility. 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 $623 million at March 31, 2022 and $514 million at December 31, 2021. Our maximum exposure to loss, which fluctuates over time, includes the carrying value of our investment and our obligation under the SDSRA, which we discuss in Note 6. CFIN As we discuss in Note 6, in July 2020, Sempra entered into a Support Agreement for the benefit of CFIN, which is a VIE. Sempra is not the primary beneficiary of this VIE because we do not have the power to direct the most significant activities of CFIN, including modification, prepayment, and refinance decisions related to the financing arrangement with external lenders and Cameron LNG JV’s four project owners as well as the ability to determine and enforce remedies in the event of default. The conditional obligations of the Support Agreement represent a variable interest that we measure at fair value on a recurring basis (see Note 9). Sempra’s maximum exposure to loss under the terms of the Support Agreement is $979 million. ECA LNG Phase 1 ECA LNG Phase 1 is a VIE because its total equity at risk is not sufficient to finance its activities without additional subordinated financial support. We expect that ECA LNG Phase 1 will require future capital contributions or other financial support to finance the construction of the facility. Sempra is the primary beneficiary of this VIE because we have the power to direct the development activities related to the construction of the liquefaction facility, which we consider to be the most significant activities of ECA LNG Phase 1 during the construction phase of its natural gas liquefaction export project. As a result, we consolidate ECA LNG Phase 1. Sempra consolidated $728 million and $632 million of assets at March 31, 2022 and December 31, 2021, respectively, consisting primarily of PP&E, net, and Accounts Receivable – Other attributable to ECA LNG Phase 1 that could be used only to settle obligations of this VIE and that are not available to settle obligations of Sempra, and $528 million and $455 million of liabilities at March 31, 2022 and December 31, 2021, respectively, consisting primarily of long-term debt, short-term debt and accounts payable attributable to ECA LNG Phase 1 for which creditors do not have recourse to the general credit of Sempra. Additionally, as we discuss in Note 7, Sempra and TotalEnergies SE have provided guarantees for the loan facility supporting construction of the liquefaction facility based on their respective proportionate ownership interest in ECA LNG Phase 1. PENSION AND OTHER POSTRETIREMENT BENEFITS Net Periodic Benefit Cost The following three tables provide the components of net periodic benefit cost. NET PERIODIC BENEFIT COST – SEMPRA (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2022 2021 2022 2021 Service cost $ 41 $ 37 $ 7 $ 6 Interest cost 30 28 7 7 Expected return on assets (46) (43) (16) (15) Amortization of: Prior service cost (credit) 3 3 (1) (1) Actuarial loss (gain) 6 11 (4) (2) Settlement charges — 7 — — Net periodic benefit cost (credit) 34 43 (7) (5) Regulatory adjustments (27) (29) 7 5 Total expense recognized $ 7 $ 14 $ — $ — NET PERIODIC BENEFIT COST – SDG&E (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2022 2021 2022 2021 Service cost $ 10 $ 8 $ 2 $ 1 Interest cost 7 6 1 1 Expected return on assets (11) (12) (2) (2) Amortization of: Actuarial gain — — (1) — Net periodic benefit cost 6 2 — — Regulatory adjustments (5) (2) — — Total expense recognized $ 1 $ — $ — $ — NET PERIODIC BENEFIT COST – SOCALGAS (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2022 2021 2022 2021 Service cost $ 28 $ 25 $ 5 $ 4 Interest cost 20 20 5 5 Expected return on assets (31) (28) (13) (12) Amortization of: Prior service cost (credit) 2 2 (1) (1) Actuarial loss (gain) 4 9 (3) (1) Net periodic benefit cost (credit) 23 28 (7) (5) Regulatory adjustments (22) (27) 7 5 Total expense recognized $ 1 $ 1 $ — $ — RABBI TRUST In support of its Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans, Sempra maintains dedicated assets, including a Rabbi Trust and investments in life insurance contracts, which totaled $532 million and $567 million at March 31, 2022 and December 31, 2021, respectively. SEMPRA EARNINGS PER COMMON SHARE Basic EPS is calculated by dividing earnings attributable to common shares by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. EARNINGS PER COMMON SHARE COMPUTATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended March 31, 2022 2021 Numerator: Earnings attributable to common shares for basic EPS $ 612 $ 874 Add back dividends for dilutive mandatory convertible preferred stock (1) — 10 Earnings attributable to common shares for diluted EPS $ 612 $ 884 Denominator: Weighted-average common shares outstanding for basic EPS (2) 316,353 300,905 Dilutive effect of stock options and RSUs (3) 1,081 887 Dilutive effect of mandatory convertible preferred stock — 6,666 Weighted-average common shares outstanding for diluted EPS 317,434 308,458 EPS: Basic $ 1.93 $ 2.91 Diluted $ 1.93 $ 2.87 (1) In the three months ended March 31, 2021, due to the dilutive effect of mandatory convertible preferred stock, the numerator used to calculate diluted EPS includes an add-back of dividends declared on our mandatory convertible preferred stock. (2) Includes 407 and 460 fully vested RSUs held in our Deferred Compensation Plan for the three months ended March 31, 2022 and 2021, respectively. These fully vested RSUs are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued. (3) Due to market fluctuations of both Sempra 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, 2022 and 2021 excludes 337,239 and 428,875 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. In 2021, the potentially dilutive impact from mandatory convertible preferred stock was calculated under the if-converted method until the mandatory conversion date. After the mandatory conversion date, the converted shares are included in weighted-average common shares outstanding for basic EPS. We converted our series A preferred stock into common stock on January 15, 2021 and our series B preferred stock into common stock on July 15, 2021. We do not have mandatory convertible preferred stock outstanding as of March 31, 2022, and there were no antidilutive shares to exclude from the computation of diluted EPS in the three months ended March 31, 2021. In January 2022, pursuant to Sempra’s share-based compensation plans, the Compensation and Talent Committee of Sempra’s board of directors granted 219,898 nonqualified stock options, 338,080 performance-based RSUs and 150,286 service-based RSUs. We discuss share-based compensation plans and related awards and the terms and conditions of Sempra’s equity securities further in Notes 10, 13 and 14 of the Notes to Consolidated Financial Statements in the Annual Report. COMPREHENSIVE INCOME 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 Financial Pension Total Three months ended March 31, 2022 and 2021 Sempra: Balance at December 31, 2021 $ (79) $ (156) $ (83) $ (318) OCI before reclassifications 3 74 6 83 Amounts reclassified from AOCI — 4 2 6 Net OCI 3 78 8 89 Balance at March 31, 2022 $ (76) $ (78) $ (75) $ (229) Balance at December 31, 2020 $ (64) $ (331) $ (105) $ (500) OCI before reclassifications (5) 73 7 75 Amounts reclassified from AOCI — 19 7 26 Net OCI (5) 92 14 101 Balance at March 31, 2021 $ (69) $ (239) $ (91) $ (399) SDG&E: Balance at December 31, 2021 and March 31, 2022 $ (10) $ (10) Balance at December 31, 2020 and March 31, 2021 $ (10) $ (10) SoCalGas: Balance at December 31, 2021 $ (13) $ (18) $ (31) Amounts reclassified from AOCI — 1 1 Net OCI — 1 1 Balance at March 31, 2022 $ (13) $ (17) $ (30) Balance at December 31, 2020 and March 31, 2021 $ (13) $ (18) $ (31) (1) All amounts are net of income tax, if subject to tax, and exclude NCI. 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, 2022 2021 Sempra: Financial instruments: Interest rate instruments $ (1) $ 2 Interest Expense Interest rate instruments 14 19 Equity Earnings (1) Foreign exchange instruments (1) 1 Revenues: Energy-Related Businesses Foreign exchange instruments (1) 1 Equity Earnings (1) Interest rate and foreign exchange instruments (6) 6 Other Income, Net Total before income tax 5 29 (1) (8) Income Tax Expense Net of income tax 4 21 — (2) Earnings Attributable to Noncontrolling Interests $ 4 $ 19 Pension and other postretirement benefits (2) : Amortization of actuarial loss $ 2 $ 2 Other Income, Net Amortization of prior service cost 1 1 Other Income, Net Settlement charges — 7 Other Income, Net Total before income tax 3 10 (1) (3) Income Tax Expense Net of income tax $ 2 $ 7 Total reclassifications for the period, net of tax $ 6 $ 26 SoCalGas: Pension and other postretirement benefits (2) : Amortization of actuarial loss $ 1 $ — Other Income, Net Total reclassifications for the period, net of tax $ 1 $ — (1) Equity earnings at our foreign equity method investees are recognized after tax. (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, 2022 and 2021, reclassifications out of AOCI to net income were negligible for SDG&E. SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS Sempra Series A Preferred Stock On January 15, 2021, we converted all 17,250,000 shares of series A preferred stock into 13,781,025 shares of our common stock based on a conversion rate of 0.7989 shares of our common stock for each issued and outstanding share of series A preferred stock. As a consequence, no shares of series A preferred stock were outstanding after January 15, 2021 and the 17,250,000 shares that were formerly series A preferred stock returned to the status of authorized and unissued shares of preferred stock. Sempra Common Stock Repurchases On January 11, 2022, we entered into an ASR program under which we prepaid $200 million to repurchase shares of our common stock in a share forward transaction. A total of 1,472,756 shares were purchased under this program at an average price of $135.80 per share. The total number of shares purchased was determined by dividing the $200 million purchase price by the arithmetic average of the volume-weighted average trading prices of shares of our common stock during the valuation period of January 12, 2022 through February 11, 2022, minus a fixed discount. The ASR program was completed on February 11, 2022. On April 6, 2022, we entered into an ASR program under which we prepaid $250 million to repurchase shares of our common stock in a share forward transaction. A total of 1,471,957 shares were purchased under this program at an average price of $169.84 per share. The total number of shares purchased was determined by dividing the $250 million purchase price by the arithmetic average of the volume-weighted average trading prices of shares of our common stock during the valuation period of April 7, 2022 through April 25, 2022, minus a fixed discount. The ASR program was completed on April 25, 2022. Other Noncontrolling Interests The following table provides information about NCI held by others in subsidiaries or entities consolidated by us and recorded in Other Noncontrolling Interests in Total Equity on Sempra’s Condensed Consolidated Balance Sheets. OTHER NONCONTROLLING INTERESTS (Dollars in millions) Percent ownership held by noncontrolling interests Equity held by March 31, December 31, March 31, December 31, Sempra Infrastructure: SI Partners 20.0 % 20.0 % $ 1,387 $ 1,384 SI Partners subsidiaries (1) 0.1 - 16.6 0.1 - 16.6 39 34 Total Sempra $ 1,426 $ 1,418 (1) SI Partners has subsidiaries with NCI held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries. Sempra Infrastructure Pending Sale of NCI in SI Partners to ADIA. On December 21, 2021, Sempra entered into a purchase and sale agreement (the ADIA Purchase Agreement) with ADIA, and, solely for purposes of guaranteeing the obligations of ADIA, Infinity Investments S.A. and Azure Vista C 2020 S.à.r.l., each a wholly owned affiliate of Abu Dhabi Investment Authority, pursuant to which ADIA will acquire from Sempra, for an aggregate purchase price of $1.8 billion, subject to certain adjustments described below, a 10% NCI in SI Partners. Following the closing of the transaction pursuant to the ADIA Purchase Agreement, Sempra, KKR and ADIA will directly or indirectly own 70%, 20%, and 10%, respectively, of the outstanding Class A Units of SI Partners, which excludes the non-voting Sole Risk Interests held only by Sempra. As further described below, after the closing of the transaction under the ADIA Purchase Agreement, ADIA will have certain rights similar to those of KKR but subject to additional limitations and adjustments to take into account ADIA’s relative ownership percentage. At March 31, 2022, SI Partners indirectly owned 99.9% of the outstanding shares of IEnova. Under the terms of the ADIA Purchase Agreement, there will be a proportional purchase price adjustment at the closing (i) for any remaining shares of IEnova that are not owned by SI Partners at the closing and (ii) that generally takes into account cash distributions made to, or capital contributions made by, the partners of SI Partners, from and after the date of the ADIA Purchase Agreement to the closing. In the first quarter of 2022, we made significant progress toward obtaining the regulatory approvals necessary to close the transaction pursuant to the ADIA Purchase Agreement. As a result of the anticipated closing, we recognized income tax expense of $120 million for a deferred income tax liability related to outside basis differences in our foreign subsidiaries that we had previously considered to be indefinitely reinvested. The closing of the transaction pursuant to the ADIA Purchase Agreement is subject to receipt of certain regulatory approvals, including from the FERC and DOE; certain other third-party approvals; the absence of a material adverse effect on the assets, businesses, properties, liabilities, financial condition or results of operations of SI Partners taken as a whole, subject to certain exceptions; and other customary closing conditions. Any party may generally terminate the ADIA Purchase Agreement if the closing has not occurred on or before September 30, 2022, subject to an aut |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDSWe describe below recent accounting pronouncements that have had or may have a significant effect on our results of operations, financial condition, cash flows or disclosures. ASU 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”: ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. In addition to other changes, this standard amends ASC 470-20, “Debt with Conversion and Other Options,” by removing the accounting models for instruments with beneficial and cash conversion features. The standard also amends certain guidance in ASC 260, “Earnings Per Share,” for the computation of EPS for convertible instruments and contracts on an entity’s own equity. For public entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. An entity can use either a full or modified retrospective approach to adopt ASU 2020-06 and must disclose, in the period of adoption, EPS transition information about the effect of the change on affected per-share amounts. We adopted the standard on January 1, 2022 using a modified retrospective approach and the adoption did not materially impact our financial statements or per-share amounts. |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2022 | |
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) SDG&E SoCalGas Sempra Infrastructure Consolidating adjustments and Parent Sempra Three months ended March 31, 2022 By major service line: Utilities $ 1,501 $ 1,912 $ 28 $ (29) $ 3,412 Energy-related businesses — — 292 (15) 277 Revenues from contracts with customers $ 1,501 $ 1,912 $ 320 $ (44) $ 3,689 By market: Gas $ 330 $ 1,912 $ 229 $ (26) $ 2,445 Electric 1,171 — 91 (18) 1,244 Revenues from contracts with customers $ 1,501 $ 1,912 $ 320 $ (44) $ 3,689 Revenues from contracts with customers $ 1,501 $ 1,912 $ 320 $ (44) $ 3,689 Utilities regulatory revenues (56) 81 — — 25 Other revenues — — 104 2 106 Total revenues $ 1,445 $ 1,993 $ 424 $ (42) $ 3,820 Three months ended March 31, 2021 By major service line: Utilities $ 1,216 $ 1,657 $ 27 $ (27) $ 2,873 Energy-related businesses — — 269 (1) 268 Revenues from contracts with customers $ 1,216 $ 1,657 $ 296 $ (28) $ 3,141 By market: Gas $ 273 $ 1,657 $ 212 $ (24) $ 2,118 Electric 943 — 84 (4) 1,023 Revenues from contracts with customers $ 1,216 $ 1,657 $ 296 $ (28) $ 3,141 Revenues from contracts with customers $ 1,216 $ 1,657 $ 296 $ (28) $ 3,141 Utilities regulatory revenues 121 (149) — — (28) Other revenues — — 153 (7) 146 Total revenues $ 1,337 $ 1,508 $ 449 $ (35) $ 3,259 REVENUES FROM CONTRACTS WITH CUSTOMERS Remaining Performance Obligations For contracts greater than one year, at March 31, 2022, we expect to recognize revenue related to the fixed fee component of the consideration as shown below. Sempra’s remaining performance obligations primarily relate to capacity agreements for natural gas storage and transportation at Sempra Infrastructure and transmission line projects at SDG&E. SoCalGas did not have any remaining performance obligations at March 31, 2022. REMAINING PERFORMANCE OBLIGATIONS (1) (Dollars in millions) Sempra SDG&E 2022 (excluding first three months of 2022) $ 277 $ 3 2023 367 4 2024 365 4 2025 362 4 2026 361 4 Thereafter 4,289 63 Total revenues to be recognized $ 6,021 $ 82 (1) Excludes intercompany transactions. Contract Liabilities from Revenues from Contracts with Customers Activities within Sempra’s and SDG&E’s contract liabilities are presented below. There were no contract liabilities at SoCalGas in the three months ended March 31, 2022 or 2021. CONTRACT LIABILITIES (Dollars in millions) 2022 2021 Sempra: Contract liabilities at January 1 $ (278) $ (207) Revenue from performance obligations satisfied during reporting period 39 25 Contract liabilities at March 31 (1) $ (239) $ (182) SDG&E: Contract liabilities at January 1 $ (83) $ (87) Revenue from performance obligations satisfied during reporting period 1 1 Contract liabilities at March 31 (1) $ (82) $ (86) (1) Balances at March 31, 2022, include $78 and $4 in Other Current Liabilities and $161 and $78 in Deferred Credits and Other on Sempra’s and SDG&E’s Condensed Consolidated Balance Sheets, respectively. Receivables from Revenues from Contracts with Customers The table below shows receivable balances associated with revenues from contracts with customers on the Condensed Consolidated Balance Sheets. RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS (Dollars in millions) March 31, 2022 December 31, 2021 Sempra: Accounts receivable – trade, net $ 1,697 $ 1,886 Accounts receivable – other, net 12 19 Due from unconsolidated affiliates – current (1) 3 2 Other long-term assets (2) 42 70 Total $ 1,754 $ 1,977 SDG&E: Accounts receivable – trade, net $ 742 $ 715 Accounts receivable – other, net 11 9 Due from unconsolidated affiliates – current (1) 3 2 Other long-term assets (2) 22 25 Total $ 778 $ 751 SoCalGas: Accounts receivable – trade, net $ 870 $ 1,084 Accounts receivable – other, net 1 10 Other long-term assets (2) 20 45 Total $ 891 $ 1,139 (1) Amount is presented net of amounts due to unconsolidated affiliates on the Condensed Consolidated Balance Sheets, when right of offset exists. (2) In connection with the COVID-19 pandemic and at the direction of the CPUC, SDG&E and SoCalGas enrolled residential and small business customers with past-due balances in long-term repayment plans. |
REGULATORY MATTERS
REGULATORY MATTERS | 3 Months Ended |
Mar. 31, 2022 | |
Regulated Operations [Abstract] | |
REGULATORY MATTERS | REGULATORY MATTERSWe 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. With the exception of regulatory balancing accounts, we generally do not earn a return on our regulatory assets until such time as a related cash expenditure has been made. Upon the occurrence of a cash expenditure associated with a regulatory asset, the related amounts are recoverable through a regulatory account mechanism for which we earn a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate. The periods during which we recognize a regulatory asset while we do not earn a return vary by regulatory asset. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) March 31, December 31, SDG&E: Fixed-price contracts and other derivatives $ (57) $ (50) Deferred income taxes recoverable in rates 151 125 Pension and other postretirement benefit plan obligations (1) (7) Removal obligations (2,229) (2,251) Environmental costs 61 62 Sunrise Powerlink fire mitigation 123 122 Regulatory balancing accounts (1)(2) Commodity – electric 122 77 Gas transportation 29 49 Safety and reliability 73 67 Public purpose programs (126) (107) Wildfire mitigation plan 215 178 Liability insurance premium 108 110 Other balancing accounts 36 207 Other regulatory assets, net (2) 106 119 Total SDG&E (1,389) (1,299) SoCalGas: Deferred income taxes recoverable in rates 95 44 Pension and other postretirement benefit plan obligations 64 51 Employee benefit costs 31 31 Removal obligations (612) (627) Environmental costs 34 34 Regulatory balancing accounts (1)(2) Commodity – gas, including transportation (87) (146) Safety and reliability 378 339 Public purpose programs (234) (183) Liability insurance premium 17 16 Other balancing accounts (109) 42 Other regulatory assets, net (2) 147 142 Total SoCalGas (276) (257) Sempra Infrastructure: Deferred income taxes recoverable in rates 77 77 Total Sempra $ (1,588) $ (1,479) (1) At March 31, 2022 and December 31, 2021, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $426 and $358, respectively, and for SoCalGas was $532 and $410, respectively. (2) Includes regulatory assets earning a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate. SEMPRA CALIFORNIA CPUC Cost of Capital A CPUC cost of capital proceeding determines a utility’s authorized capital structure and authorized return on rate base. The CCM applies in the interim years between required cost of capital applications and considers changes in the cost of capital based on changes in interest rates based on the applicable utility bond index published by Moody’s (the CCM benchmark rate) for each 12-month period ending September 30 (the measurement period). The CCM benchmark rate is the basis of comparison to determine if the CCM is triggered, which occurs if the change in the applicable Moody’s utility bond index relative to the CCM benchmark rate is larger than plus or minus 1.000% at the end of the measurement period. The index applicable to SDG&E and SoCalGas is based on each utility’s credit rating. Alternatively, each of SDG&E and SoCalGas is permitted to file a cost of capital application in an interim year in which an extraordinary or catastrophic event materially impacts its cost of capital and affects utilities differently than the market as a whole to have its cost of capital determined in lieu of the CCM. Authorized Cost of Capital, Subject to the CCM In December 2019, the CPUC approved the cost of capital (shown in the table below) for SDG&E and SoCalGas that became effective on January 1, 2020 and will remain in effect through December 31, 2022, subject to the CCM. SDG&E’s CCM benchmark rate is 4.498% based on Moody’s Baa- utility bond index, and SoCalGas’ CCM benchmark rate is 4.029% based on Moody’s A- utility bond index. AUTHORIZED CPUC COST OF CAPITAL, SUBJECT TO THE CCM SDG&E SoCalGas Authorized weighting Return on Weighted Authorized weighting Return on Weighted 45.25 % 4.59 % 2.08 % Long-Term Debt 45.60 % 4.23 % 1.93 % 2.75 6.22 0.17 Preferred Equity 2.40 6.00 0.14 52.00 10.20 5.30 Common Equity 52.00 10.05 5.23 100.00 % 7.55 % 100.00 % 7.30 % For the measurement period that ended September 30, 2021, the CCM would trigger for SDG&E, if the CPUC determines that the CCM should be implemented, because the average Moody’s Baa- utility bond index between October 1, 2020 and September 30, 2021 was 1.17% below SDG&E’s CCM benchmark rate of 4.498%. In August 2021, SDG&E filed an application with the CPUC to update its cost of capital effective January 1, 2022 through December 31, 2022 due to the ongoing effects of the COVID-19 pandemic rather than have the CCM apply. In December 2021, the CPUC established a proceeding to determine if SDG&E’s cost of capital was impacted by an extraordinary event such that the CCM should not apply. If the CPUC finds that there was not an extraordinary event, the CCM would be effective retroactive to January 1, 2022 and would automatically adjust SDG&E’s authorized ROE from 10.20% to 9.62% and adjust its authorized cost of debt to reflect the then current embedded cost and projected interest rate. If the CPUC finds that there was an extraordinary event, it will then determine whether to suspend the CCM for 2022 and preserve SDG&E’s current authorized cost of capital or hold a second phase of the proceeding to set a new cost of capital for 2022. SDG&E expects to receive a final decision in the second half of 2022. In December 2021, the CPUC granted SDG&E the establishment of memorandum accounts effective January 1, 2022 to track any differences in revenue requirement resulting from the interim cost of capital decision expected in 2022. Proposed Cost of Capital In April 2022, SDG&E and SoCalGas each filed applications with the CPUC to update their cost of capital (shown in the table below), which would become effective on January 1, 2023 and would remain in effect through December 31, 2025, subject to the CCM if it remains in place as proposed. SDG&E and SoCalGas expect to receive a final decision from the CPUC by the end of 2022. PROPOSED CPUC COST OF CAPITAL SDG&E SoCalGas Authorized weighting Return on Weighted Authorized weighting Return on Weighted 46.00 % 3.87 % 1.78 % Long-Term Debt 45.60 % 3.89 % 1.77 % — — — Preferred Equity 0.40 6.00 0.02 54.00 10.55 5.70 Common Equity 54.00 10.75 5.81 100.00 % 7.48 % 100.00 % 7.60 % SOCALGAS OSCs – Energy Efficiency and Advocacy In October 2019, the CPUC issued an OSC to determine whether SoCalGas should be sanctioned for violation of certain CPUC code sections and orders relating to energy efficiency (EE) codes and standards advocacy activities, undertaken by SoCalGas following a CPUC decision disallowing SoCalGas’ future engagement in advocacy around such EE codes and standards. In February 2022, the assigned Administrative Law Judge issued a Presiding Officer’s Decision (POD 1) that found that SoCalGas did undertake prohibited EE codes and standards advocacy activities using ratepayer funds. POD 1 imposes on SoCalGas a We provide below updates to ongoing matters related to SONGS, a nuclear generating facility near San Clemente, California that permanently ceased operations in June 2013, and in which SDG&E has a 20% 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. Major decommissioning work began in 2020. We expect the majority of the decommissioning work to take approximately 10 years. 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 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% of the total decommissioning cost. The Samuel Lawrence Foundation filed a writ petition under the California Coastal Act in LA Superior Court in December 2019 seeking to invalidate the coastal development permit and to obtain injunctive relief to stop decommissioning work. The petition was denied in September 2021. In December 2021, the foundation filed a notice of appeal. To date, decommissioning work has not been interrupted as a result of this writ petition. 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. Amounts that were 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. SDG&E classifies debt and equity securities held in the NDT as available-for-sale. The NDT assets are presented on the Sempra 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. In December 2021, SDG&E received authorization from the CPUC to access NDT funds of up to $78 million for forecasted 2022 costs. The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT on the Sempra and SDG&E Condensed Consolidated Balance Sheets. We provide additional fair value disclosures for the NDT in Note 9. NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross Gross Estimated March 31, 2022 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 51 $ 1 $ (1) $ 51 Municipal bonds (2) 309 3 (8) 304 Other securities (3) 264 2 (12) 254 Total debt securities 624 6 (21) 609 Equity securities 99 234 (4) 329 Short-term investments, primarily cash equivalents 3 — — 3 Receivables (payables), net 5 — — 5 Total $ 731 $ 240 $ (25) $ 946 December 31, 2021 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 56 $ — $ — $ 56 Municipal bonds 309 13 (1) 321 Other securities 255 7 (2) 260 Total debt securities 620 20 (3) 637 Equity securities 104 262 (2) 364 Short-term investments, primarily cash equivalents 3 — — 3 Receivables (payables), net 8 — — 8 Total $ 735 $ 282 $ (5) $ 1,012 (1) Maturity dates are 2023-2052. (2) Maturity dates are 2022-2056. (3) Maturity dates are 2022-2072. 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 NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Three months ended March 31, 2022 2021 Proceeds from sales $ 242 $ 288 Gross realized gains 11 21 Gross realized losses (4) (2) 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’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 SDG&E’s ARO related to decommissioning costs for SONGS Units 1, 2 and 3 was $561 million at March 31, 2022 and is based on a cost study prepared in 2020 that is pending CPUC approval. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES ACQUISITION Sempra Infrastructure ESJ In March 2021, Sempra Infrastructure completed the acquisition of Saavi Energía’s 50% equity interest in ESJ for a purchase price of $65 million (net of $14 million of acquired cash and cash equivalents) plus the assumption of $277 million in debt (including $94 million owed from ESJ to Sempra Infrastructure that eliminates upon consolidation). Sempra Infrastructure previously accounted for its 50% interest in ESJ as an equity method investment. This acquisition increased Sempra Infrastructure’s ownership interest in ESJ from 50% to 100%. We accounted for this asset acquisition using a cost accumulation model whereby the cost of the acquisition and carrying value of our previously held interest in ESJ ($34 million) were allocated to assets acquired ($458 million) and liabilities assumed ($345 million) based on their relative fair values. ESJ owns a fully operating wind power generation facility with a nameplate capacity of 155 MW that is fully contracted by SDG&E under a long-term PPA. Sempra Infrastructure recorded a $190 million intangible asset for the relative fair value of the PPA that will be amortized over a period of 14 years against revenues. On January 15, 2022, ESJ completed construction and began commercial operation of a second wind power generation facility with a nameplate capacity of 108 MW that is also fully contracted by SDG&E under a long-term PPA. |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 3 Months Ended |
Mar. 31, 2022 | |
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 on the Condensed Consolidated Statements of Operations. See Note 12 for information on equity earnings and losses, both before and net of income tax, by segment. 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. We provide additional information concerning our equity method investments in Notes 5 and 6 of the Notes to Consolidated Financial Statements in the Annual Report. SEMPRA TEXAS UTILITIES Oncor Holdings We account for our 100% ownership interest in Oncor Holdings, which owns an 80.25% interest in Oncor, as an equity method investment. Due to the ring-fencing measures, governance mechanisms and commitments in effect, 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 the three months ended March 31, 2022 and 2021, Sempra contributed $85 million and $50 million, respectively, to Oncor Holdings, and Oncor Holdings distributed $85 million and $77 million, respectively, to Sempra. 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, 2022 2021 Operating revenues $ 1,249 $ 1,139 Operating expenses (897) (829) Income from operations 352 310 Interest expense (108) (102) Income tax expense (42) (36) Net income 191 165 Noncontrolling interest held by Texas Transmission Investment LLC (38) (33) Earnings attributable to Sempra (1) 153 132 (1) Excludes adjustments to equity earnings related to amortization of a tax sharing liability associated with a tax sharing arrangement and changes in basis differences in AOCI within the carrying value of our equity method investment. SEMPRA INFRASTRUCTURE Cameron LNG JV In the three months ended March 31, 2022 and 2021, Cameron LNG JV distributed to Sempra Infrastructure $119 million and $131 million, respectively. Sempra Promissory Note for SDSRA Distribution Cameron LNG JV’s debt agreements require Cameron LNG JV to maintain the SDSRA, which is an additional reserve account beyond the Senior Debt Service Accrual Account, where funds accumulate from operations to satisfy senior debt obligations due and payable on the next payment date. Both accounts can be funded with cash or authorized investments. In June 2021, Sempra Infrastructure received a distribution of $165 million based on its proportionate share of the SDSRA, for which Sempra provided a promissory note and letters of credit to secure a proportionate share of Cameron LNG JV’s obligation to fund the SDSRA. Sempra’s maximum exposure to loss is replenishment of the amount withdrawn by Sempra Infrastructure from the SDSRA, or $165 million. We recorded a guarantee liability of $22 million in June 2021, with an associated carrying value of $21 million at March 31, 2022, for the fair value of the promissory note, which is being reduced over the duration of the guarantee through Sempra Infrastructure’s investment in Cameron LNG JV. The guarantee will terminate upon full repayment of Cameron LNG JV’s debt, scheduled to occur in 2039, or replenishment of the amount withdrawn by Sempra Infrastructure from the SDSRA. Sempra Support Agreement for CFIN In July 2020, CFIN entered into a financing arrangement with Cameron LNG JV’s four project owners and received aggregate proceeds of $1.5 billion from two project owners and from external lenders on behalf of the other two project owners (collectively, the affiliate loans), based on their proportionate ownership interest in Cameron LNG JV. CFIN used the proceeds from the affiliate loans to provide a loan to Cameron LNG JV. The affiliate loans mature in 2039. Principal and interest will be paid from Cameron LNG JV’s project cash flows from its three-train natural gas liquefaction facility. Cameron LNG JV used the proceeds from its loan to return equity to its project owners. Sempra used its $753 million share of the proceeds for working capital and other general corporate purposes, including the repayment of indebtedness. Sempra Infrastructure’s $753 million proportionate share of the affiliate loans, based on its 50.2% ownership interest in Cameron LNG JV, was funded by external lenders comprised of a syndicate of eight banks (the bank debt) to whom Sempra has provided a guarantee pursuant to a Support Agreement, as amended on June 29, 2021, under which: ▪ Sempra has severally guaranteed repayment of the bank debt plus accrued and unpaid interest if CFIN fails to pay the external lenders; ▪ the external lenders may exercise an option to put the bank debt to Sempra Infrastructure upon the occurrence of certain events, including a failure by CFIN to meet its payment obligations under the bank debt; ▪ the external lenders will put some or all of the bank debt to Sempra Infrastructure on the fifth, tenth, or fifteenth anniversary date of the affiliate loans, except the portion of the debt owed to any external lender that has elected not to participate in the put option six months prior to the respective anniversary date; ▪ Sempra Infrastructure also has a right to call the bank debt back from, or to refinance the bank debt with, the external lenders at any time; and ▪ the Support Agreement will terminate upon full repayment of the bank debt, including repayment following an event in which the bank debt is put to Sempra Infrastructure. In exchange for this guarantee, the external lenders will pay a guarantee fee that is based on the credit rating of Sempra’s long-term senior unsecured non-credit enhanced debt rating, which guarantee fee Sempra Infrastructure will recognize as interest income as earned. Sempra’s maximum exposure to loss is the bank debt plus any accrued and unpaid interest and related fees, subject to a liability cap of 130% of the bank debt, or $979 million. We measure the Support Agreement at fair value, net of related guarantee fees, on a recurring basis (see Note 9). At March 31, 2022, the fair value of the Support Agreement was $12 million, of which $7 million is included in Other Current Assets and $5 million is included in Other Long-Term Assets on Sempra’s Condensed Consolidated Balance Sheet. |
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT AND CREDIT FACILITIES | NOTE 7. DEBT AND CREDIT FACILITIES The principal terms of our debt arrangements are described below and in Note 7 of the Notes to Consolidated Financial Statements in the Annual Report. SHORT-TERM DEBT Committed Lines of Credit At March 31, 2022, Sempra had an aggregate capacity of $9.5 billion under seven primary committed lines of credit, which provide liquidity and support commercial paper programs. Because our commercial paper programs are supported by some of these lines of credit, we reflect the amount of commercial paper outstanding, before reductions of any unamortized discounts, and any letters of credit outstanding as a reduction to the available unused credit capacity. COMMITTED LINES OF CREDIT (Dollars in millions) March 31, 2022 Borrower Expiration date of facility Total facility Commercial paper outstanding Amounts outstanding Available unused credit Sempra May 2024 $ 3,185 $ (1,504) $ — $ 1,681 Sempra May 2024 1,250 — — 1,250 SDG&E May 2024 1,500 — — 1,500 SoCalGas May 2024 750 — — 750 SI Partners November 2024 1,000 — — 1,000 IEnova September 2023 350 — (265) 85 IEnova February 2024 1,500 — — 1,500 Total $ 9,535 $ (1,504) $ (265) $ 7,766 Sempra, SDG&E and SoCalGas each must maintain a ratio of indebtedness to total capitalization (as defined in each of the applicable credit facilities) of no more than 65% at the end of each quarter. At March 31, 2022, each entity was in compliance with this ratio under its respective credit facility. SI Partners must maintain a ratio of consolidated adjusted net indebtedness to consolidated earnings before interest, taxes, depreciation and amortization (as defined in its credit facility) of no more than 5.25 to 1.00 as of the end of each quarter. At March 31, 2022, SI Partners was in compliance with this ratio. Uncommitted Lines of Credit In addition to our committed lines of credit, Sempra Infrastructure’s foreign operations in Mexico have uncommitted lines of credit with an aggregate capacity of $570 million at March 31, 2022, which are generally used for working capital requirements. We reflect amounts outstanding under these uncommitted lines of credit before reductions of any unamortized discounts. FOREIGN UNCOMMITTED LINES OF CREDIT (Dollars and U.S. dollar equivalent in millions) March 31, 2022 Borrower Expiration date of facility Borrowing denomination Total facility Amounts outstanding Available unused credit IEnova September 2022 U.S. dollars $ 250 $ (250) $ — ECA LNG Phase 1 (1) August 2023 U.S. dollars or Mexican pesos 200 (64) 136 IEnova (2) October 2023 U.S. dollars 100 (100) — IEnova October 2023 U.S. dollars or Mexican pesos 20 — 20 Total $ 570 $ (414) $ 156 (1) In March 2022, the facility was amended to increase the borrowing capacity from $100 to $200. (2) Advances are due in full within 180 days of the disbursement date, which may be extended in increments of 180 days provided that no advance may have a maturity date that falls more than three years after the date of disbursement. Uncommitted Letters of Credit Outside of our domestic and foreign 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, 2022, we had approximately $682 million in standby letters of credit outstanding under these agreements. UNCOMMITTED LETTERS OF CREDIT (Dollars in millions) March 31, 2022 Expiration date range Uncommitted letters of credit outstanding SDG&E May 2022 to January 2023 $ 15 SoCalGas June 2022 to March 2023 15 Sempra Infrastructure April 2022 to October 2043 473 Parent and other April 2022 to March 2023 179 Total $ 682 Weighted-Average Interest Rates The weighted-average interest rates on all short-term debt were as follows: WEIGHTED-AVERAGE INTEREST RATES March 31, 2022 December 31, 2021 Sempra 1.14 % 0.60 % SDG&E — 0.65 SoCalGas — 0.21 LONG-TERM DEBT Sempra In March 2022, we issued $750 million aggregate principal amount of 3.30% senior unsecured notes due in full upon maturity on April 1, 2025 and received proceeds of $745 million (net of debt discount, underwriting discounts and debt issuance costs of $5 million), and $500 million of 3.70% senior unsecured notes due in full upon maturity on April 1, 2029 and received proceeds of $494 million (net of debt discount, underwriting discounts and debt issuance costs of $6 million). Each series of the notes is redeemable prior to maturity, subject to their terms, and in certain circumstances subject to make-whole provisions. We used a portion of the net proceeds for general corporate purposes and intend to use the remaining net proceeds for repayment of commercial paper and other indebtedness. SDG&E In February 2022, SDG&E entered into a $400 million, two-year term loan with a maturity date of February 18, 2024. SDG&E may request up to three borrowings for an aggregate amount of $400 million through May 18, 2022. SDG&E borrowed $200 million in the three months ended March 31, 2022. The borrowings bear interest at benchmark rates plus 62.5 bps and are due in full upon maturity. The margin is based on SDG&E’s long-term senior unsecured credit rating. SDG&E used the net proceeds for repayment of commercial paper. In March 2022, SDG&E issued $500 million aggregate principal amount of 3.00% first mortgage bonds due in full upon maturity on March 15, 2032 and received proceeds of $494 million (net of debt discount, underwriting discounts and debt issuance costs of $6 million), and $500 million aggregate principal amount of 3.70% first mortgage bonds due in full upon maturity on March 15, 2052 and received proceeds of $492 million (net of debt discount, underwriting discounts and debt issuance costs of $8 million). Each of the first mortgage bonds are redeemable prior to maturity, subject to their terms, and in certain circumstances subject to make-whole provisions. SDG&E used a portion of the net proceeds for repayment of commercial paper and its 364-day term loan and intends to use the remaining proceeds for capital expenditures and other general corporate purposes. SoCalGas In March 2022, SoCalGas issued $700 million aggregate principal amount of 2.95% senior unsecured notes due in full upon maturity on April 15, 2027 and received proceeds of $691 million (net of debt discount, underwriting discounts and debt issuance costs of $9 million). The notes are redeemable prior to maturity, subject to their terms, and in certain circumstances subject to make-whole provisions. SoCalGas used a portion of the net proceeds for repayment of commercial paper and intends to use the remaining proceeds for general corporate purposes, which may include payment of a portion of the costs relating to civil litigation pertaining to the Leak. Sempra Infrastructure SI Partners. In January 2022, SI Partners completed a private offering of $400 million in aggregate principal of 3.25% senior notes due in full upon maturity on January 15, 2032 to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933, as amended (the Securities Act), and non-U.S. persons outside the U.S. under Regulation S under the Securities Act. The notes were issued at 98.903% of the principal amount and require semi-annual interest payments in January and July, commencing July 15, 2022. The notes are senior unsecured obligations that rank equally with all of SI Partners’ existing and future outstanding unsecured senior indebtedness and are redeemable prior to maturity, subject to their terms, and in certain circumstances subject to make-whole provisions. Sempra Infrastructure received proceeds of $390 million (net of debt discount, underwriting discounts and debt issuance costs of $10 million). Sempra Infrastructure used the net proceeds for general corporate purposes, including the repayment of certain indebtedness of its subsidiaries. ECA LNG Phase 1. In December 2020, ECA LNG Phase 1 entered into a five-year loan agreement with a syndicate of nine banks for an aggregate principal amount of up to $1.6 billion. Sempra and TotalEnergies SE have provided guarantees for repayment of the loans plus accrued and unpaid interest based on their proportionate ownership interest in ECA LNG Phase 1 of 83.4% and 16.6%, respectively. At March 31, 2022 and December 31, 2021, $392 million and $341 million, respectively, was outstanding under the loan agreement, with a weighted-average interest rate of 3.71% and 2.93%, respectively. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
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 could cause our asset values to fall or our liabilities to 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 may have derivatives that are (1) cash flow hedges, (2) fair value hedges, or (3) undesignated. Depending on the applicability of hedge accounting and, for SDG&E and SoCalGas 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 hedges), on the balance sheet (regulatory offsets), or recognized in earnings (fair value hedges and undesignated derivatives not subject to rate recovery). We classify cash flows from the principal settlements of cross-currency swaps that hedge exposure related to Mexican peso-denominated debt and hedge termination costs on interest rate swaps 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: ▪ SDG&E and SoCalGas 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 Infrastructure may use natural gas and electricity derivatives, as appropriate, in an effort 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 on the Condensed Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. ▪ From time to time, our various businesses, including SDG&E and SoCalGas, may use other energy derivatives to hedge exposures such as greenhouse gas allowances. The following table summarizes net energy derivative volumes. NET ENERGY DERIVATIVE VOLUMES (Quantities in millions) Commodity Unit of measure March 31, 2022 December 31, 2021 Sempra: Natural gas MMBtu 162 184 Electricity MWh 1 1 Congestion revenue rights MWh 43 45 SDG&E: Natural gas MMBtu 5 7 Electricity MWh 1 1 Congestion revenue rights MWh 43 45 SoCalGas: Natural gas MMBtu 143 201 INTEREST RATE DERIVATIVES We are exposed to interest rates primarily as a result of our current and expected use of financing. SDG&E and SoCalGas, as well as Sempra 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. The following table presents the net notional amounts of our interest rate derivatives, excluding those in our equity method investments. INTEREST RATE DERIVATIVES (Dollars in millions) March 31, 2022 December 31, 2021 Notional debt Maturities Notional debt Maturities Sempra: Cash flow hedges $ 451 2022-2034 $ 462 2022-2034 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 fixed interest rates for U.S. fixed interest rates. From time to time, Sempra Infrastructure 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 may 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 those in our equity method investments. FOREIGN CURRENCY DERIVATIVES (Dollars in millions) March 31, 2022 December 31, 2021 Notional amount Maturities Notional amount Maturities Sempra: Cross-currency swaps $ 306 2022-2023 $ 306 2022-2023 Other foreign currency derivatives 87 2022-2023 106 2022-2023 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 because the cash collateral was in excess of liability positions. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) March 31, 2022 Other current assets Other long-term assets Other current liabilities Deferred credits and other Sempra: Derivatives designated as hedging instruments: Interest rate instruments $ — $ 21 $ (1) $ — Foreign exchange instruments — — (2) — Interest rate and foreign exchange instruments — — (121) — Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery 174 38 (186) (42) Associated offsetting commodity contracts (169) (36) 169 36 Commodity contracts subject to rate recovery 39 45 (19) — Associated offsetting commodity contracts (8) — 8 — Net amounts presented on the balance sheet 36 68 (152) (6) Additional cash collateral for commodity contracts not subject to rate recovery 41 — — — Additional cash collateral for commodity contracts subject to rate recovery 37 — — — Total (1) $ 114 $ 68 $ (152) $ (6) SDG&E: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 39 $ 45 $ (11) $ — Associated offsetting commodity contracts (8) — 8 — Net amounts presented on the balance sheet 31 45 (3) — Additional cash collateral for commodity contracts subject to rate recovery 35 — — — Total (1) $ 66 $ 45 $ (3) $ — SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ — $ — $ (8) $ — Net amounts presented on the balance sheet — — (8) — Additional cash collateral for commodity contracts subject to rate recovery 2 — — — Total $ 2 $ — $ (8) $ — (1) Normal purchase contracts previously measured at fair value are excluded. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (Dollars in millions) December 31, 2021 Other current assets Other long-term assets Other current liabilities Deferred credits and other Sempra: Derivatives designated as hedging instruments: Interest rate instruments $ — $ 6 $ (6) $ (2) Foreign exchange instruments 1 1 (1) — Interest rate and foreign exchange instruments — — (1) (130) Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery 136 11 (122) (10) Associated offsetting commodity contracts (93) (8) 93 8 Commodity contracts subject to rate recovery 38 52 (58) — Associated offsetting commodity contracts (8) — 8 — Net amounts presented on the balance sheet 74 62 (87) (134) Additional cash collateral for commodity contracts not subject to rate recovery 58 — — — Additional cash collateral for commodity contracts subject to rate recovery 46 — — — Total (1) $ 178 $ 62 $ (87) $ (134) SDG&E: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 34 $ 52 $ (20) $ — Associated offsetting commodity contracts (5) — 5 — Net amounts presented on the balance sheet 29 52 (15) — Additional cash collateral for commodity contracts subject to rate recovery 28 — — — Total (1) $ 57 $ 52 $ (15) $ — SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 4 $ — $ (38) $ — Associated offsetting commodity contracts (3) — 3 — Net amounts presented on the balance sheet 1 — (35) — Additional cash collateral for commodity contracts subject to rate recovery 18 — — — Total $ 19 $ — $ (35) $ — (1) Normal purchase contracts previously measured at fair value are excluded. The following table 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) Pretax gain (loss) reclassified Three months ended March 31, Three months ended March 31, 2022 2021 Location 2022 2021 Sempra: Interest rate instruments $ 22 $ 26 Interest Expense $ 1 $ (2) Interest rate instruments 94 83 Equity Earnings (1) (14) (19) Foreign exchange instruments (3) 3 Revenues: Energy- Related Businesses 1 (1) Foreign exchange instruments (2) 3 Equity Earnings (1) 1 (1) Interest rate and foreign exchange instruments 9 (6) Other Income, Net 6 (6) Total $ 120 $ 109 $ (5) $ (29) (1) Equity earnings at our foreign equity method investees are recognized after tax. For Sempra, we expect that net losses of $22 million, which are net of income tax benefit, that are currently recorded in AOCI (including net gains of $6 million in NCI) 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, 2022 is approximately 13 years for Sempra. The maximum remaining term for which we are hedging exposure to the variability of cash flows at our equity method investees is 18 years. The 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 (loss) gain on derivatives recognized in earnings Three months ended March 31, Location 2022 2021 Sempra: Commodity contracts not subject to rate recovery Revenues: Energy-Related Businesses $ (77) $ (48) Commodity contracts subject to rate recovery Cost of Natural Gas — 2 Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power 18 2 Foreign exchange instruments Other Income, Net — (24) Total $ (59) $ (68) SDG&E: Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power $ 18 $ 2 SoCalGas: Commodity contracts subject to rate recovery Cost of Natural Gas $ — $ 2 CONTINGENT FEATURES For Sempra, 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, the total fair value of this group of derivative instruments in a liability position at March 31, 2022 and December 31, 2021 was $11 million and $88 million, respectively. For SoCalGas, the total fair value of this group of derivative instruments in a liability position at March 31, 2022 and December 31, 2021 was $8 million and $36 million, respectively. SDG&E did not have this group of derivative instruments in a liability position at March 31, 2022 or December 31, 2021. At March 31, 2022, if the credit ratings of Sempra or SoCalGas were reduced below investment grade, $11 million and $8 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, 2022 | |
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, 2022 and December 31, 2021. 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-valued 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, 2021. 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: ▪ Nuclear decommissioning trusts reflect the assets of SDG&E’s NDT, excluding accounts receivable and accounts payable. 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 – SDG&E.” ▪ Rabbi Trust investments include short-term investments that consist of money market and mutual funds 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). ▪ As we discuss in Note 6, in July 2020, Sempra entered into a Support Agreement for the benefit of CFIN. We measure the Support Agreement, which includes a guarantee obligation, a put option and a call option, net of related guarantee fees, at fair value on a recurring basis. We use a discounted cash flow model to value the Support Agreement, net of related guarantee fees. Because some of the inputs that are significant to the valuation are less observable, the Support Agreement is classified as Level 3, as we describe below in “Level 3 Information – Sempra Infrastructure.” RECURRING FAIR VALUE MEASURES – SEMPRA (Dollars in millions) Fair value at March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Short-term investments, primarily cash equivalents $ 12 $ (9) $ — $ 3 Equity securities 324 5 — 329 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 39 12 — 51 Municipal bonds — 304 — 304 Other securities — 254 — 254 Total debt securities 39 570 — 609 Total nuclear decommissioning trusts (1) 375 566 — 941 Short-term investments held in Rabbi Trust 47 — — 47 Interest rate instruments — 21 — 21 Commodity contracts not subject to rate recovery — 7 — 7 Effect of netting and allocation of collateral (2) 41 — — 41 Commodity contracts subject to rate recovery 15 — 61 76 Effect of netting and allocation of collateral (2) 31 — 6 37 Support Agreement, net of related guarantee fees — — 12 12 Total $ 509 $ 594 $ 79 $ 1,182 Liabilities: Interest rate instruments $ — $ 1 $ — $ 1 Foreign exchange instruments — 2 — 2 Interest rate and foreign exchange instruments — 121 — 121 Commodity contracts not subject to rate recovery — 23 — 23 Commodity contracts subject to rate recovery — 8 3 11 Total $ — $ 155 $ 3 $ 158 (1) Excludes receivables (payables), net. (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 – SEMPRA (CONTINUED) (Dollars in millions) Fair value at December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Short-term investments, primarily cash equivalents $ 13 $ (10) $ — $ 3 Equity securities 358 6 — 364 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 48 8 — 56 Municipal bonds — 321 — 321 Other securities — 260 — 260 Total debt securities 48 589 — 637 Total nuclear decommissioning trusts (1) 419 585 — 1,004 Short-term investments held in Rabbi Trust 81 — — 81 Interest rate instruments — 6 — 6 Foreign exchange instruments — 2 — 2 Commodity contracts not subject to rate recovery — 46 — 46 Effect of netting and allocation of collateral (2) 58 — — 58 Commodity contracts subject to rate recovery 12 1 69 82 Effect of netting and allocation of collateral (2) 31 9 6 46 Support Agreement, net of related guarantee fees — — 7 7 Total $ 601 $ 649 $ 82 $ 1,332 Liabilities: Interest rate instruments $ — $ 8 $ — $ 8 Foreign exchange instruments — 1 — 1 Interest rate and foreign exchange instruments — 131 — 131 Commodity contracts not subject to rate recovery — 31 — 31 Commodity contracts subject to rate recovery — 35 15 50 Total $ — $ 206 $ 15 $ 221 (1) Excludes receivables (payables), net. (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, 2022 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Short-term investments, primarily cash equivalents $ 12 $ (9) $ — $ 3 Equity securities 324 5 — 329 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 39 12 — 51 Municipal bonds — 304 — 304 Other securities — 254 — 254 Total debt securities 39 570 — 609 Total nuclear decommissioning trusts (1) 375 566 — 941 Commodity contracts subject to rate recovery 15 — 61 76 Effect of netting and allocation of collateral (2) 29 — 6 35 Total $ 419 $ 566 $ 67 $ 1,052 Liabilities: Commodity contracts subject to rate recovery $ — $ — $ 3 $ 3 Total $ — $ — $ 3 $ 3 Fair value at December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Short-term investments, primarily cash equivalents $ 13 $ (10) $ — $ 3 Equity securities 358 6 — 364 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 48 8 — 56 Municipal bonds — 321 — 321 Other securities — 260 — 260 Total debt securities 48 589 — 637 Total nuclear decommissioning trusts (1) 419 585 — 1,004 Commodity contracts subject to rate recovery 12 — 69 81 Effect of netting and allocation of collateral (2) 22 — 6 28 Total $ 453 $ 585 $ 75 $ 1,113 Liabilities: Commodity contracts subject to rate recovery $ — $ — $ 15 $ 15 Total $ — $ — $ 15 $ 15 (1) Excludes receivables (payables), net. (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, 2022 Level 1 Level 2 Level 3 Total Assets: Effect of netting and allocation of collateral (1) $ 2 $ — $ — $ 2 Total $ 2 $ — $ — $ 2 Liabilities: Commodity contracts subject to rate recovery $ — $ 8 $ — $ 8 Total $ — $ 8 $ — $ 8 Fair value at December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ — $ 1 $ — $ 1 Effect of netting and allocation of collateral (1) 9 9 — 18 Total $ 9 $ 10 $ — $ 19 Liabilities: Commodity contracts subject to rate recovery $ — $ 35 $ — $ 35 Total $ — $ 35 $ — $ 35 (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 SDG&E 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 and SDG&E. LEVEL 3 RECONCILIATIONS (1) (Dollars in millions) Three months ended March 31, 2022 2021 Balance at January 1 $ 54 $ 69 Realized and unrealized gains (losses) 7 (2) Settlements (3) (5) Balance at March 31 $ 58 $ 62 Change in unrealized gains (losses) relating to instruments still held at March 31 $ 9 $ (1) (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 2022 $ (3.67) to $ 6.96 $ (0.70) 2021 (1.81) to 14.11 (0.12) 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 at March 31 were as follows: LONG-TERM, FIXED-PRICE ELECTRICITY POSITIONS PRICE INPUTS Settlement year Price per MWh Weighted-average 2022 $ 26.55 to $ 137.80 $ 62.79 2021 20.60 to 117.00 46.46 A significant increase (decrease) in market electricity forward prices would result in a significantly higher (lower) fair value. We summarize long-term, fixed-price electricity position volumes in Note 8. Realized gains and losses associated with CRRs and long-term, fixed-price 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. Sempra Infrastructure The table below sets forth reconciliations of changes in the fair value of Sempra’s Support Agreement for the benefit of CFIN classified as Level 3 in the fair value hierarchy for Sempra. LEVEL 3 RECONCILIATIONS (Dollars in millions) Three months ended March 31, 2022 2021 Balance at January 1 $ 7 $ 3 Realized and unrealized gains (1) 8 2 Settlements (3) (2) Balance at March 31 (2) $ 12 $ 3 Change in unrealized gains relating to instruments still held at March 31 $ 7 $ 2 (1) Net gains are included in Interest Income and net losses are included in Interest Expense on Sempra’s Condensed Consolidated Statements of Operations. (2) Includes $7 in Other Current Assets and $5 in Other Long-term Assets at March 31, 2022 on Sempra’s Condensed Consolidated Balance Sheets. The fair value of the Support Agreement, net of related guarantee fees, is based on a discounted cash flow model using a probability of default and survival methodology. Our estimate of fair value considers inputs such as third-party default rates, credit ratings, recovery rates, and risk-adjusted discount rates, which may be readily observable, market corroborated or generally unobservable inputs. Because CFIN’s credit rating and related default and survival rates are unobservable inputs that are significant to the valuation, the Support Agreement, net of related guarantee fees, is classified as Level 3. We assigned CFIN an internally developed credit rating of A3 and relied on default rate data published by Moody’s to assign a probability of default. A hypothetical change in the credit rating up or down one notch could result in a significant change in the fair value of the Support Agreement. Fair Value of Financial Instruments The fair values of certain of our financial instruments (cash, accounts receivable, amounts due to/from unconsolidated affiliates with original maturities of less than 90 days, 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) Carrying Fair value Level 1 Level 2 Level 3 Total March 31, 2022 Sempra: Short-term amounts due from unconsolidated affiliates (1) $ 626 $ — $ 633 $ — $ 633 Long-term note receivable (2) 306 — — 307 307 Long-term amounts due to unconsolidated affiliates 309 — 304 — 304 Total long-term debt (3) 23,678 — 23,608 — 23,608 SDG&E: Total long-term debt (4) $ 7,600 $ — $ 7,687 $ — $ 7,687 SoCalGas: Total long-term debt (5) $ 5,459 $ — $ 5,561 $ — $ 5,561 December 31, 2021 Sempra: Long-term note receivable (2) $ 300 $ — $ — $ 327 $ 327 Long-term amounts due from unconsolidated affiliates (1) 640 — 642 — 642 Long-term amounts due to unconsolidated affiliates 287 — 295 — 295 Total long-term debt (3) 20,099 — 22,126 — 22,126 SDG&E: Total long-term debt (4) $ 6,417 $ — $ 7,236 $ — $ 7,236 SoCalGas: Total long-term debt (5) $ 4,759 $ — $ 5,367 $ — $ 5,367 (1) Before allowances for credit losses of $1 at December 31, 2021. Includes $1 and $2 of accrued interest receivable at March 31, 2022 and December 31, 2021, respectively, in Due From Unconsolidated Affiliates – Current. (2) Before allowances for credit losses of $7 and $8 at March 31, 2022 and December 31, 2021, respectively. Excludes unamortized transaction costs of $5 at both March 31, 2022 and December 31, 2021. (3) Before reductions of unamortized discount and debt issuance costs of $299 and $260 at March 31, 2022 and December 31, 2021, respectively, and excluding finance lease obligations of $1,335 at both March 31, 2022 and December 31, 2021. (4) Before reductions of unamortized discount and debt issuance costs of $74 and $61 at March 31, 2022 and December 31, 2021, respectively, and excluding finance lease obligations of $1,270 and $1,274 at March 31, 2022 and December 31, 2021, respectively. (5) Before reductions of unamortized discount and debt issuance costs of $44 and $36 at March 31, 2022 and December 31, 2021, respectively, and excluding finance lease obligations of $65 and $61 at March 31, 2022 and December 31, 2021, respectively. 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, 2022 | |
Regulated Operations [Abstract] | |
SAN ONOFRE NUCLEAR GENERATING STATION | REGULATORY MATTERSWe 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. With the exception of regulatory balancing accounts, we generally do not earn a return on our regulatory assets until such time as a related cash expenditure has been made. Upon the occurrence of a cash expenditure associated with a regulatory asset, the related amounts are recoverable through a regulatory account mechanism for which we earn a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate. The periods during which we recognize a regulatory asset while we do not earn a return vary by regulatory asset. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) March 31, December 31, SDG&E: Fixed-price contracts and other derivatives $ (57) $ (50) Deferred income taxes recoverable in rates 151 125 Pension and other postretirement benefit plan obligations (1) (7) Removal obligations (2,229) (2,251) Environmental costs 61 62 Sunrise Powerlink fire mitigation 123 122 Regulatory balancing accounts (1)(2) Commodity – electric 122 77 Gas transportation 29 49 Safety and reliability 73 67 Public purpose programs (126) (107) Wildfire mitigation plan 215 178 Liability insurance premium 108 110 Other balancing accounts 36 207 Other regulatory assets, net (2) 106 119 Total SDG&E (1,389) (1,299) SoCalGas: Deferred income taxes recoverable in rates 95 44 Pension and other postretirement benefit plan obligations 64 51 Employee benefit costs 31 31 Removal obligations (612) (627) Environmental costs 34 34 Regulatory balancing accounts (1)(2) Commodity – gas, including transportation (87) (146) Safety and reliability 378 339 Public purpose programs (234) (183) Liability insurance premium 17 16 Other balancing accounts (109) 42 Other regulatory assets, net (2) 147 142 Total SoCalGas (276) (257) Sempra Infrastructure: Deferred income taxes recoverable in rates 77 77 Total Sempra $ (1,588) $ (1,479) (1) At March 31, 2022 and December 31, 2021, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $426 and $358, respectively, and for SoCalGas was $532 and $410, respectively. (2) Includes regulatory assets earning a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate. SEMPRA CALIFORNIA CPUC Cost of Capital A CPUC cost of capital proceeding determines a utility’s authorized capital structure and authorized return on rate base. The CCM applies in the interim years between required cost of capital applications and considers changes in the cost of capital based on changes in interest rates based on the applicable utility bond index published by Moody’s (the CCM benchmark rate) for each 12-month period ending September 30 (the measurement period). The CCM benchmark rate is the basis of comparison to determine if the CCM is triggered, which occurs if the change in the applicable Moody’s utility bond index relative to the CCM benchmark rate is larger than plus or minus 1.000% at the end of the measurement period. The index applicable to SDG&E and SoCalGas is based on each utility’s credit rating. Alternatively, each of SDG&E and SoCalGas is permitted to file a cost of capital application in an interim year in which an extraordinary or catastrophic event materially impacts its cost of capital and affects utilities differently than the market as a whole to have its cost of capital determined in lieu of the CCM. Authorized Cost of Capital, Subject to the CCM In December 2019, the CPUC approved the cost of capital (shown in the table below) for SDG&E and SoCalGas that became effective on January 1, 2020 and will remain in effect through December 31, 2022, subject to the CCM. SDG&E’s CCM benchmark rate is 4.498% based on Moody’s Baa- utility bond index, and SoCalGas’ CCM benchmark rate is 4.029% based on Moody’s A- utility bond index. AUTHORIZED CPUC COST OF CAPITAL, SUBJECT TO THE CCM SDG&E SoCalGas Authorized weighting Return on Weighted Authorized weighting Return on Weighted 45.25 % 4.59 % 2.08 % Long-Term Debt 45.60 % 4.23 % 1.93 % 2.75 6.22 0.17 Preferred Equity 2.40 6.00 0.14 52.00 10.20 5.30 Common Equity 52.00 10.05 5.23 100.00 % 7.55 % 100.00 % 7.30 % For the measurement period that ended September 30, 2021, the CCM would trigger for SDG&E, if the CPUC determines that the CCM should be implemented, because the average Moody’s Baa- utility bond index between October 1, 2020 and September 30, 2021 was 1.17% below SDG&E’s CCM benchmark rate of 4.498%. In August 2021, SDG&E filed an application with the CPUC to update its cost of capital effective January 1, 2022 through December 31, 2022 due to the ongoing effects of the COVID-19 pandemic rather than have the CCM apply. In December 2021, the CPUC established a proceeding to determine if SDG&E’s cost of capital was impacted by an extraordinary event such that the CCM should not apply. If the CPUC finds that there was not an extraordinary event, the CCM would be effective retroactive to January 1, 2022 and would automatically adjust SDG&E’s authorized ROE from 10.20% to 9.62% and adjust its authorized cost of debt to reflect the then current embedded cost and projected interest rate. If the CPUC finds that there was an extraordinary event, it will then determine whether to suspend the CCM for 2022 and preserve SDG&E’s current authorized cost of capital or hold a second phase of the proceeding to set a new cost of capital for 2022. SDG&E expects to receive a final decision in the second half of 2022. In December 2021, the CPUC granted SDG&E the establishment of memorandum accounts effective January 1, 2022 to track any differences in revenue requirement resulting from the interim cost of capital decision expected in 2022. Proposed Cost of Capital In April 2022, SDG&E and SoCalGas each filed applications with the CPUC to update their cost of capital (shown in the table below), which would become effective on January 1, 2023 and would remain in effect through December 31, 2025, subject to the CCM if it remains in place as proposed. SDG&E and SoCalGas expect to receive a final decision from the CPUC by the end of 2022. PROPOSED CPUC COST OF CAPITAL SDG&E SoCalGas Authorized weighting Return on Weighted Authorized weighting Return on Weighted 46.00 % 3.87 % 1.78 % Long-Term Debt 45.60 % 3.89 % 1.77 % — — — Preferred Equity 0.40 6.00 0.02 54.00 10.55 5.70 Common Equity 54.00 10.75 5.81 100.00 % 7.48 % 100.00 % 7.60 % SOCALGAS OSCs – Energy Efficiency and Advocacy In October 2019, the CPUC issued an OSC to determine whether SoCalGas should be sanctioned for violation of certain CPUC code sections and orders relating to energy efficiency (EE) codes and standards advocacy activities, undertaken by SoCalGas following a CPUC decision disallowing SoCalGas’ future engagement in advocacy around such EE codes and standards. In February 2022, the assigned Administrative Law Judge issued a Presiding Officer’s Decision (POD 1) that found that SoCalGas did undertake prohibited EE codes and standards advocacy activities using ratepayer funds. POD 1 imposes on SoCalGas a We provide below updates to ongoing matters related to SONGS, a nuclear generating facility near San Clemente, California that permanently ceased operations in June 2013, and in which SDG&E has a 20% 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. Major decommissioning work began in 2020. We expect the majority of the decommissioning work to take approximately 10 years. 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 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% of the total decommissioning cost. The Samuel Lawrence Foundation filed a writ petition under the California Coastal Act in LA Superior Court in December 2019 seeking to invalidate the coastal development permit and to obtain injunctive relief to stop decommissioning work. The petition was denied in September 2021. In December 2021, the foundation filed a notice of appeal. To date, decommissioning work has not been interrupted as a result of this writ petition. 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. Amounts that were 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. SDG&E classifies debt and equity securities held in the NDT as available-for-sale. The NDT assets are presented on the Sempra 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. In December 2021, SDG&E received authorization from the CPUC to access NDT funds of up to $78 million for forecasted 2022 costs. The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT on the Sempra and SDG&E Condensed Consolidated Balance Sheets. We provide additional fair value disclosures for the NDT in Note 9. NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross Gross Estimated March 31, 2022 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 51 $ 1 $ (1) $ 51 Municipal bonds (2) 309 3 (8) 304 Other securities (3) 264 2 (12) 254 Total debt securities 624 6 (21) 609 Equity securities 99 234 (4) 329 Short-term investments, primarily cash equivalents 3 — — 3 Receivables (payables), net 5 — — 5 Total $ 731 $ 240 $ (25) $ 946 December 31, 2021 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 56 $ — $ — $ 56 Municipal bonds 309 13 (1) 321 Other securities 255 7 (2) 260 Total debt securities 620 20 (3) 637 Equity securities 104 262 (2) 364 Short-term investments, primarily cash equivalents 3 — — 3 Receivables (payables), net 8 — — 8 Total $ 735 $ 282 $ (5) $ 1,012 (1) Maturity dates are 2023-2052. (2) Maturity dates are 2022-2056. (3) Maturity dates are 2022-2072. 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 NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Three months ended March 31, 2022 2021 Proceeds from sales $ 242 $ 288 Gross realized gains 11 21 Gross realized losses (4) (2) 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’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 SDG&E’s ARO related to decommissioning costs for SONGS Units 1, 2 and 3 was $561 million at March 31, 2022 and is based on a cost study prepared in 2020 that is pending CPUC approval. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
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, and in some cases have exceeded, applicable insurance coverage and could materially adversely affect our business, results of operations, financial condition, cash flows and/or prospects. Unless otherwise indicated, we are unable to reasonably estimate possible losses or a range of losses in excess of any amounts accrued. At March 31, 2022, loss contingency accruals for legal matters, including associated legal fees and regulatory matters related to the Leak, that are probable and estimable were $2,167 million for Sempra, including $13 million for SDG&E and $2,078 million for SoCalGas. Amounts for Sempra and SoCalGas include $2,053 million for matters related to the Leak, which we discuss below. SoCalGas Aliso Canyon Natural Gas Storage Facility Gas Leak From October 23, 2015 through February 11, 2016, SoCalGas experienced a natural gas leak from one of the injection-and-withdrawal wells, SS25, at its Aliso Canyon natural gas storage facility in Los Angeles County. As described below, numerous lawsuits, investigations and regulatory proceedings have been initiated in response to the Leak, resulting in significant costs, which together with other Leak-related costs are discussed below in “Cost Estimate, Accounting Impact and Insurance.” Civil Litigation – Litigation Subject to Agreements to Resolve. As of April 29, 2022, approximately 390 lawsuits including approximately 36,000 plaintiffs (the Individual Plaintiffs) were pending against SoCalGas and Sempra related to the Leak. All these cases are coordinated before a single court in the LA Superior Court for pretrial management. In November 2017, in the coordinated proceeding, a Third Amended Consolidated Master Case Complaint for Individual Actions was filed on behalf of the Individual Plaintiffs, through which their separate lawsuits are managed for pretrial purposes. The consolidated complaint asserts causes of action for negligence, negligence per se, private and public nuisance (continuing and permanent), trespass, inverse condemnation, strict liability, negligent and intentional infliction of emotional distress, fraudulent concealment, loss of consortium and wrongful death against SoCalGas and Sempra (the Individual Plaintiff Litigation). The complaint also asserted violations of Proposition 65, which were resolved in January 2022. 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, and attorneys’ fees. In October 2018 and January 2019, complaints were filed on behalf of 51 firefighters stationed near the Aliso Canyon natural gas storage facility who allege they were injured by exposure to chemicals released during the Leak. The complaints against SoCalGas and Sempra 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 attorneys’ fees. These complaints are included in the coordinated proceeding and the Individual Plaintiff Litigation. On September 26, 2021, SoCalGas and Sempra entered into an agreement with counsel representing over 80% of the plaintiffs in the Individual Plaintiff Litigation to resolve the claims of all Individual Plaintiffs for a payment of up to $1.8 billion. The agreement is subject to acceptance by no fewer than roughly 97% of all plaintiffs in the Individual Plaintiff Litigation by June 1, 2022, although SoCalGas and Sempra have the right to waive such condition. The agreement, which requires each plaintiff who accepts a settlement to release all such plaintiff’s claims against SoCalGas, Sempra and their respective affiliates related to the Individual Plaintiff Litigation and the Leak, provides that the settlement amount will be reduced based on the number of plaintiffs who do not accept. The LA Superior Court has approved the process to allocate payments among the plaintiffs. The plaintiffs who do not agree to participate in the settlement will be able to continue to pursue their claims. Pursuant to the agreement, the Individual Plaintiff Litigation has been stayed. In January 2017, a putative class of persons and businesses who own or lease real property within a five-mile radius of the well filed a consolidated class action complaint against SoCalGas and Sempra (the Property Class Action). The Property Class Action asserts claims for strict liability for ultra-hazardous activities, negligence, negligence per se, violation of the California Unfair Competition Law, trespass, permanent and continuing public and private nuisance, and inverse condemnation. On September 26, 2021, SoCalGas and Sempra entered into an agreement to settle the Property Class Action for a total amount of $40 million. In April 2022, the LA Superior Court gave final approval of the settlement, which provides for a release of SoCalGas, Sempra and their respective affiliates from all claims related to the Leak by all property class members who do not opt out of the class. Members of the property class who opt out of the settlement will have the right to pursue their claims on an individual basis. Complaints on behalf of five property developers (the Developer Plaintiffs) were filed in October 2018 and October 2020 against SoCalGas and Sempra alleging causes of action for strict liability, negligence per se, negligence, negligent interference, continuing nuisance, permanent nuisance, inverse condemnation and violation of the California Unfair Competition Law and California Public Utilities Code section 2106. The complaints seek compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees. In January 2022 and March 2022, SoCalGas and Sempra entered into agreements to settle the claims of four of the Developer Plaintiffs. Civil Litigation – Unresolved Litigation. The complaint of one of the Developer Plaintiffs remains pending, and the LA Superior Court has scheduled a trial in October 2022. SoCalGas has engaged in settlement discussions with the remaining Developer Plaintiff. Four shareholder derivative actions were filed alleging breach of fiduciary duties against certain officers and certain directors of Sempra and/or SoCalGas. Three of the actions were joined in an Amended Consolidated Shareholder Derivative Complaint, which was dismissed with prejudice in January 2021. The plaintiffs have appealed the dismissal. The remaining action was also dismissed but plaintiffs were given leave to amend their complaint. An adverse ruling in any of the lawsuits in the Individual Plaintiff Litigation filed by plaintiffs who do not agree to settle or any lawsuits filed by property class members who opt out of the Property Class Action settlement or by the remaining Developer Plaintiff could have a material adverse effect on SoCalGas’ and Sempra’s results of operations, financial condition, cash flows and/or prospects. In addition, there can be no assurance that the conditions to resolve the Individual Plaintiff Litigation will be satisfied or that the LA Superior Court will approve the settlement for the Property Class Action. Regulatory Proceedings. In January 2016, CalGEM and the CPUC directed an independent analysis of the technical root cause of the Leak to be conducted by Blade. In May 2019, Blade released its report, which concluded that the Leak was caused by a failure of the production casing of the well due to corrosion and that attempts to stop the Leak were not effectively conducted, but did not identify any instances of non-compliance by SoCalGas. Blade concluded that SoCalGas’ compliance activities conducted prior to the Leak did not find indications of a casing integrity issue. Blade opined, however, that there were measures, none of which were required by gas storage regulations at the time, that could have been taken to aid in the early identification of corrosion and that, in Blade’s opinion, would have prevented or mitigated the Leak. The report also identified well safety practices and regulations that have since been adopted by CalGEM and implemented by SoCalGas. In June 2019, the CPUC opened an OII to consider penalties against SoCalGas for the Leak, which it later bifurcated into two phases. The first phase will consider whether SoCalGas violated California Public Utilities Code Section 451 or other laws, CPUC orders or decisions, rules or requirements, whether SoCalGas engaged in unreasonable and/or imprudent practices with respect to its operation and maintenance of the Aliso Canyon natural gas storage facility or its related record-keeping practices, whether SoCalGas cooperated sufficiently with the SED of the CPUC and Blade during the pre-formal investigation, and whether any of the mitigation measures proposed by Blade should be implemented to the extent not already done. The SED, based largely on the Blade report, has alleged a total of 324 violations in the first phase, asserting that SoCalGas violated California Public Utilities Code Section 451 and failed to cooperate in the investigation and to keep proper records. Hearings on a subset of issues began in March 2021, and legal briefs will be filed in May 2022. The second phase will consider whether SoCalGas should be sanctioned for the Leak and what damages, fines or other penalties, if any, should be imposed for any violations, unreasonable or imprudent practices, or failure to cooperate sufficiently with the SED as determined by the CPUC in the first phase. In addition, the second phase will determine the amounts of various costs incurred by SoCalGas and other parties in connection with the Leak and the ratemaking treatment or other disposition of such costs, which could result in little or no recovery of such costs by SoCalGas. SoCalGas has engaged in settlement discussions with the SED in connection with this proceeding. In February 2017, the CPUC opened a proceeding pursuant to the SB 380 OII 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, but excluding issues with respect to air quality, public health, causation, culpability or cost responsibility regarding the Leak. The first phase of the proceeding established 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 is evaluating 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. In December 2019, the CPUC added a third phase of the proceeding and engaged a consultant who is analyzing alternative means for meeting or avoiding the demand for the facility’s services if it were eliminated in either the 2027 or 2035 timeframe. In July 2021, the CPUC combined Phase 2 and Phase 3 and modified the scope of Phase 3 to also address potential implementation of alternatives to the Aliso Canyon natural gas storage facility if the CPUC determines that the Aliso Canyon natural gas storage facility should be permanently closed. The CPUC also added all California IOUs as parties to the proceeding and encouraged all load serving entities in the Los Angeles Basin to join the proceeding. In November 2021, the CPUC issued a decision on the interim range of gas inventory levels at the Aliso Canyon natural gas storage facility, setting an interim range of gas inventory levels of up to 41.16 Bcf. The CPUC may issue future changes to this interim range of authorized gas inventory levels before issuing a final inventory determination within the SB 380 OII proceeding. At March 31, 2022, the Aliso Canyon natural gas storage facility had a net book value of $894 million. If the Aliso Canyon natural gas storage facility were to be permanently closed or if future cash flows from its operation were otherwise insufficient to recover its carrying value, we may record an impairment of the facility, incur higher than expected operating costs and/or be required to make additional capital expenditures (any or all of which may not be recoverable in rates), and natural gas reliability and electric generation could be jeopardized. Any such outcome could have a material adverse effect on SoCalGas’ and Sempra’s results of operations, financial condition, cash flows and/or prospects. Cost Estimate, Accounting Impact and Insurance. SoCalGas has incurred significant costs related to the Leak, primarily for temporary relocation of community residents; to control the well and stop the Leak; to mitigate the natural gas released; to purchase natural gas to replace what was lost through the Leak; 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 Blade to conduct the root cause analysis described above; to respond to various government and agency investigations regarding the Leak; and to comply with increased regulation imposed as a result of the Leak. At March 31, 2022, SoCalGas estimates these costs related to the Leak are $3,314 million (the cost estimate), which includes $1,279 million of costs recovered or probable of recovery from insurance. This cost estimate may increase significantly as more information becomes available. At March 31, 2022, $2,052 million of the cost estimate is accrued in Reserve for Aliso Canyon Costs and $4 million of the cost estimate is accrued in Deferred Credits and Other on SoCalGas’ and Sempra’s Condensed Consolidated Balance Sheets. In the first quarter of 2022, SoCalGas recorded total charges of $92 million ($66 million after tax), inclusive of estimated legal costs, in Aliso Canyon Litigation and Regulatory Matters on the SoCalGas and Sempra Condensed Consolidated Statements of Operations related to settlement activity in connection with civil litigation that we describe above. This charge is included in the cost estimate that we describe above. Except for the amounts paid or estimated to settle certain legal and regulatory matters as described above, the cost estimate does not include (i) any amounts necessary to resolve claims of Individual Plaintiffs who do not agree to participate in the settlement of the Individual Actions or members of the Property Class Action who opt out of that settlement or (ii) the matters that we describe above in “Civil Litigation – Unresolved Litigation” and “Regulatory Proceedings” to the extent it is not possible to predict at this time the outcome of these actions or reasonably estimate the possible costs or a range of possible costs for damages, restitution, civil or administrative fines or penalties, defense, settlement or other costs or remedies that may be imposed or incurred. The cost estimate also does not include certain other costs incurred by Sempra associated with defending against shareholder derivative lawsuits and other potential costs that we currently do not anticipate incurring or that we cannot reasonably estimate. Further, we are not able to reasonably estimate the possible loss or a range of possible losses in excess of the amounts accrued. The costs or losses not included in the cost estimate could be significant and could have a material adverse effect on SoCalGas’ and Sempra’s results of operations, financial condition, cash flows and/or prospects. We have received insurance payments for many of the categories of costs included in the cost estimate, including temporary relocation and associated processing costs, control-of-well expenses, costs of the government-ordered response to the Leak, certain legal costs and lost gas. At March 31, 2022, we recorded the expected recovery of the cost estimate related to the Leak of $360 million as Insurance Receivable for Aliso Canyon Costs on SoCalGas’ and Sempra’s Condensed Consolidated Balance Sheets. This amount is exclusive of insurance retentions and $919 million of insurance proceeds we received through March 31, 2022. We intend to pursue the full extent of our insurance coverage for the costs we have incurred. Other than insurance for certain future defense costs we may incur as well as directors’ and officers’ liability, we have exhausted all of our insurance in this matter. We continue to pursue other sources of insurance coverage for costs related to this matter, but we may not be successful in obtaining additional insurance recovery for any of these costs. If we are not able to secure additional insurance recovery, if any costs we have recorded as an insurance receivable are not collected, if there are 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’s results of operations, financial condition, cash flows and/or prospects. Sempra Infrastructure Energía Costa Azul We describe below certain land and customer disputes and permit challenges affecting our ECA Regas Facility and our proposed ECA LNG liquefaction projects. One or more unfavorable final decisions on these disputes or challenges could materially adversely affect our existing natural gas regasification operations and proposed natural gas liquefaction projects at the site of the ECA Regas Facility and have a material adverse effect on Sempra’s business, results of operations, financial condition, cash flows and/or prospects. Land Disputes. Sempra Infrastructure has been engaged in a long-running land dispute relating to property adjacent to its ECA Regas Facility that allegedly overlaps with land owned by the ECA Regas Facility (the facility, however, is not situated on the land that is the subject of this dispute), as follows: ▪ A claimant to the adjacent property filed complaints in the federal Agrarian Court challenging the refusal of SEDATU in 2006 to issue title to him for the disputed property. In November 2013, the federal Agrarian Court ordered that SEDATU issue the requested title to the claimant and cause it to be registered. Both SEDATU and Sempra Infrastructure challenged the ruling due to lack of notification of the underlying process. In May 2019, a federal court in Mexico reversed the ruling and ordered a retrial, which is pending resolution. ▪ In a separate proceeding, the claimant filed suit to reinitiate an administrative procedure at SEDATU to obtain the property title that was previously dismissed. In April 2021, the Agrarian Court ordered that the administrative procedure be restarted. The proceeding in the Agrarian Court has concluded; however, the administrative procedure at SEDATU may continue if SEDATU decides to reopen the matter. In addition, four cases involving two adjacent areas of real property on which part of the ECA Regas Facility is situated, each brought by a single plaintiff or her descendants, remain pending against the facility, as follows: ▪ The first disputed area is subject to a claim in the federal Agrarian Court that has been ongoing since 2006, in which the plaintiff seeks to annul the property title for a portion of the land on which the ECA Regas Facility is situated and to obtain possession of a different parcel that allegedly overlaps with the site of the ECA Regas Facility. The proceeding, which seeks an order that SEDATU annul the ECA Regas Facility’s competing property title, was initiated in 2006 and, in July 2021, a decision was issued in favor of the ECA Regas Facility. The plaintiff appealed, and in February 2022, the appellate court confirmed the ruling in favor the ECA Regas Facility and dismissed the appeal. The plaintiff filed a final federal appeal against the appellate court ruling. A final ruling from the Federal Collegiate Circuit Court is pending. ▪ The second disputed area is a parcel adjacent to the ECA Regas Facility that allegedly overlaps with land on which the ECA Regas Facility is situated, which is subject to a claim in the federal Agrarian Court and two claims in Mexican civil courts. The ECA Regas Facility first bought the property from the federal government in 2003; however, to resolve an ownership controversy, in 2008, the ECA Regas Facility reached a financial settlement with the plaintiff to eliminate an adverse claim to its title. Nevertheless, the plaintiff sued in 2013 for the nullity of both titles. The Agrarian Court ruled in favor of the plaintiff in May 2021, nullifying the first property title. Sempra Infrastructure appealed the ruling in July 2021, which is pending resolution. The ECA Regas Facility continues to hold the second property title to the land. The two civil court proceedings, which seek to invalidate the contract by which the ECA Regas Facility purchased for the second time the applicable parcel of land on which the ECA Regas Facility is situated on the grounds that the purchase price was allegedly unfair, are progressing at different stages. In the first civil case, initiated in 2013, the court ruled in favor of the ECA Regas Facility, and the final decision was affirmed on a federal appeal. The descendants of the same plaintiff filed the second civil case in 2019, which was dismissed by the court. However, the dismissal has been appealed, which is pending the appellate court’s ruling. In April 2022, the ECA Regas Facility entered into a settlement agreement with the plaintiff, whereby the plaintiff has agreed to recognize the ECA Regas Facility as the sole owner of the property and waive any current or future rights over the property, or any other properties related to the ECA Regas Facility. The settlement agreement is subject to court approval and would definitively resolve all three pending cases. Certain of these land disputes involve land on which portions of the ECA LNG liquefaction facilities are proposed to be situated or on which portions of the ECA Regas Facility that would be necessary for the operation of the proposed ECA LNG liquefaction facilities are situated. Environmental and Social Impact Permits. Several administrative challenges are pending before Mexico’s Secretariat of Environment and Natural Resources (the Mexican environmental protection agency) and Federal Tax and Administrative Courts, seeking revocation of the environmental impact authorization issued to the ECA Regas Facility 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. In 2018 and 2021, three related claimants filed separate challenges in the federal district court in Ensenada, Baja California in relation to the environmental and social impact permits issued by each of ASEA and SENER to ECA LNG authorizing natural gas liquefaction activities at the ECA Regas Facility, as follows: ▪ In the first case, the court issued a provisional injunction in September 2018. In December 2018, ASEA approved modifications to the environmental permit that facilitate the development of the proposed natural gas liquefaction facility in two phases. In May 2019, the court canceled the provisional injunction. The claimant appealed the court’s decision canceling the injunction, but was not successful. The claimant’s underlying challenge to the permits remains pending. ▪ In the second case, the initial request for a provisional injunction was denied. That decision was reversed on appeal in January 2020, resulting in the issuance of a new injunction against the permits that were issued by ASEA and SENER. This injunction has uncertain application absent clarification by the court. The claimants petitioned the court to rule that construction of natural gas liquefaction facilities violated the injunction, and in February 2022, the court ruled in favor of the ECA Regas Facility, meaning that the natural gas liquefaction activities have not been affected. The claimants have appealed this ruling. ▪ In the third case, a group of residents filed a complaint in June 2021 against various federal and state authorities alleging deficiencies in the public consultation process for the issuance of the permits. The request for an initial injunction was denied and the claimants have appealed, which is pending the appellate court’s ruling. Customer Dispute. In May 2020, the two third-party capacity customers at the ECA Regas Facility, Shell Mexico and Gazprom, asserted that a 2019 update of the general terms and conditions for service at the facility, as approved by the CRE, resulted in a breach of contract by Sempra Infrastructure and a force majeure event. In July 2020, Shell Mexico submitted a request for arbitration of the dispute and Gazprom joined the proceeding, and a hearing was held in October 2021. The International Court of Arbitration issued a final, non-appealable decision dated April 27, 2022 in favor of Sempra Infrastructure dismissing all claims and confirming the contracts remain in force. In addition to the arbitration proceeding, Shell Mexico also filed constitutional claims against the CRE’s approval of the general terms and conditions and against the issuance of the liquefaction permit. Shell Mexico’s request for an injunction against the general terms and conditions was denied, and the ruling was upheld on appeal. The request for an injunction against the liquefaction permit was denied, and the decision was vacated and remanded on appeal to the First District Court in Administrative Sonora Pipeline Guaymas-El Oro Segment. Sempra Infrastructure’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, Sempra Infrastructure 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, Sempra Infrastructure reported damage to the Guaymas-El Oro segment of the Sonora pipeline in the Yaqui territory that has made that section inoperable since August 2017 and, as a result, Sempra Infrastructure declared a force majeure event. In 2017, an appellate court ruled that the scope of the 2016 suspension order encompassed the wider Yaqui territory, which has prevented Sempra Infrastructure from making repairs to put the pipeline back in service. In July 2019, a federal district court ruled in favor of Sempra Infrastructure and held that the Yaqui tribe was properly consulted and that consent from the Yaqui tribe was properly received. Representatives of the Bácum community appealed this decision, causing the suspension order preventing Sempra Infrastructure from repairing the damage to the Guaymas-El Oro segment of the Sonora pipeline in the Yaqui territory to remain in place until the appeals process is exhausted. In December 2021, the court of appeals referred the matter to Mexico’s Supreme Court. Sempra Infrastructure exercised its rights under the contract, which included seeking force majeure payments for the two-year period such force majeure payments were required to be made, which ended in August 2019. In July 2019, the CFE filed a request for arbitration generally to nullify certain contract terms that provide for fixed capacity payments in instances of force majeure and made a demand for substantial damages in connection with the force majeure event. In September 2019, the arbitration process ended when Sempra Infrastructure and the CFE reached an agreement to restart natural gas transportation service on the earlier of completion of repair of the damaged pipeline or January 15, 2020, and to modify the tariff structure and extend the term of the contract by 10 years. Subsequently, Sempra Infrastructure and the CFE agreed to extend the service start date multiple times, most recently to June 14, 2022. Under the revised agreement, the CFE will resume making payments only when the damaged section of the Guaymas-El Oro segment of the Sonora pipeline is repaired. If the pipeline is not repaired by June 14, 2022, and the parties do not agree on a new service start date, Sempra Infrastructure retains the right to terminate the contract and seek to recover its reasonable and documented costs and lost profits. Discussions with the CFE regarding the future of the pipeline, including the potential re-routing of a portion of the pipeline, are underway in accordance with a non-binding MOU announced in January 2022 that, among other matters, addresses efforts to restart service on the pipeline. Sempra Infrastructure intends to enter into a definitive agreement with respect to the pipeline in the second quarter of 2022. At March 31, 2022, Sempra Infrastructure had $429 million in PP&E, net, related to the Guaymas-El Oro segment of the Sonora pipeline, which could be subject to impairment if Sempra Infrastructure is unable to make such repairs (which have not commenced) or re-route a portion of the pipeline (which has not been agreed to by the parties, but is subject to negotiation pursuant to a non-binding MOU, as described above) and resume operations in the Guaymas-El Oro segment of the Sonora pipeline or if Sempra Infrastructure terminates the contract and is unable to obtain recovery, which in each case could have a material adverse effect on Sempra’s business, results of operations, financial condition, cash flows and/or prospects. Sasabe-Puerto Libertad-Guaymas Segment. In June 2014, Sempra Infrastructure and a landowner agreed to enter into a voluntary right-of-way easement agreement for the construction and operation of a seven-mile section of the 314-mile Sasabe-Puerto Libertad-Guaymas segment of the Sonora natural gas pipeline on the landowner’s property. However, in 2015, the landowner filed a complaint demanding the easement agreement be nullified. In September 2021, a definitive and non-appealable judgment was issued declaring the easement agreement nullified and ordering the removal of the pipeline from the landowner’s property. The execution of the judgment is suspended as a result of an amparo lawsuit filed by the CFE as an interested third party that did not participate in the litigation. Sempra Infrastructure filed a special judicial action asking the civil court to acknowledge the existence of the easement and to determine the consideration the landowner should receive in exchange for the easement. The failure to stay this judgment pending the resolution of Sempra Infrastructure’s planned special judicial action or prevail in Regulatory and Other Actions by the Mexican Government We describe below certain actions by the Mexican government that could have a material impact on the energy sector in Mexico. Sempra Infrastructure and other parties affected by these resolutions, orders, decrees, regulations and proposed amendments to Mexican law have challenged them by filing amparo and other claims, some of which have been grant |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We have four 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 Utilitie s holds our investment in Oncor Holdings, which owns an 80.25% interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern, western and panhandle regions of Texas; and our indirect, 50% interest in Sharyland Holdings L.P., which owns Sharyland Utilities, L.L.C., a regulated electric transmission utility serving customers near the Texas-Mexico border. ▪ Sempra Infrastructure includes the operating companies of our subsidiary, SI Partners, as well as a holding company and certain services companies. Sempra Infrastructure develops, builds, operates and invests in energy infrastructure to help enable the energy transition in North American markets and globally. Sempra Infrastructure owns an 80% interest in SI Partners, which held a 100% ownership interest in Sempra LNG Holding, LP and a 99.9% ownership interest in IEnova at March 31, 2022. We evaluate each segment’s performance based on its contribution to Sempra’s reported earnings and cash flows. SDG&E and SoCalGas operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC and, in the case of SDG&E, the FERC. 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. SEGMENT INFORMATION (Dollars in millions) Three months ended March 31, 2022 2021 REVENUES SDG&E $ 1,445 $ 1,337 SoCalGas 1,993 1,508 Sempra Infrastructure 424 449 All other — 1 Adjustments and eliminations 2 — Intersegment revenues (1) (44) (36) Total $ 3,820 $ 3,259 DEPRECIATION AND AMORTIZATION SDG&E $ 239 $ 213 SoCalGas 187 173 Sempra Infrastructure 65 54 All other 2 2 Total $ 493 $ 442 INTEREST INCOME SDG&E $ — $ 1 Sempra Infrastructure 21 21 All other 4 — Intercompany eliminations — (3) Total $ 25 $ 19 INTEREST EXPENSE SDG&E $ 106 $ 102 SoCalGas 40 39 Sempra Infrastructure 27 41 All other 70 83 Intercompany eliminations — (6) Total $ 243 $ 259 INCOME TAX EXPENSE (BENEFIT) SDG&E $ 64 $ 45 SoCalGas 84 94 Sempra Infrastructure 91 57 All other 95 (38) Total $ 334 $ 158 EQUITY EARNINGS Equity earnings, before income tax: Sempra Texas Utilities $ 2 $ 1 Sempra Infrastructure 141 134 143 135 Equity earnings, net of income tax: Sempra Texas Utilities 162 136 Sempra Infrastructure 21 47 183 183 Total $ 326 $ 318 (1) Revenues for reportable segments include intersegment revenues of $4, $26, and $14 for the three months ended March 31, 2022 and $2, $25, and $9 for the three months ended March 31, 2021 for SDG&E, SoCalGas, and Sempra Infrastructure, respectively. SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Three months ended March 31, 2022 2021 EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES SDG&E $ 234 $ 212 SoCalGas 334 407 Sempra Texas Utilities 162 135 Sempra Infrastructure 95 202 All other (213) (82) Total $ 612 $ 874 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 552 $ 555 SoCalGas 468 459 Sempra Infrastructure 182 166 All other 2 1 Total $ 1,204 $ 1,181 March 31, December 31, ASSETS SDG&E $ 24,835 $ 24,058 SoCalGas 21,205 20,324 Sempra Texas Utilities 13,218 13,047 Sempra Infrastructure 14,435 14,408 All other 2,430 1,399 Intersegment receivables (1,201) (1,191) Total $ 74,922 $ 72,045 EQUITY METHOD AND OTHER INVESTMENTS Sempra Texas Utilities $ 13,218 $ 13,047 Sempra Infrastructure 1,572 1,425 Total $ 14,790 $ 14,472 |
GENERAL INFORMATION AND OTHER_2
GENERAL INFORMATION AND OTHER FINANCIAL DATA (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION Sempra Sempra’s Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based holding company doing business as Sempra, and its consolidated entities. In the fourth quarter of 2021, we formed Sempra Infrastructure, which resulted in a change to our reportable segments. Historical segment disclosures have been restated to conform with the current presentation of our four separate reportable segments, which we discuss in Note 12. 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 common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra. SoCalGas |
Basis of Presentation | BASIS OF PRESENTATION This is a combined report of Sempra, SDG&E and SoCalGas. We provide separate information for SDG&E and SoCalGas as required. We have eliminated intercompany accounts and transactions within the consolidated financial statements of each reporting entity. We have prepared our Condensed Consolidated Financial Statements in conformity with U.S. GAAP and in accordance with the interim period reporting requirements of Form 10-Q and applicable rules of the SEC. The financial statements reflect all adjustments that are necessary for a fair presentation of the results for the interim periods. These adjustments are only of a normal, recurring nature. Results of operations for interim periods are not necessarily indicative of results for the entire year or for any other period. We evaluated events and transactions that occurred after March 31, 2022 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. All December 31, 2021 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2021 Consolidated Financial Statements in the Annual Report. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the interim period reporting provisions of U.S. GAAP and the SEC. We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report 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 period reporting purposes. The information contained in this report should be read in conjunction with the Annual Report. |
Credit Losses | We are exposed to credit losses from financial assets measured at amortized cost, including trade and other accounts receivable, amounts due from unconsolidated affiliates, our net investment in sales-type leases and a note receivable. We are also exposed to credit losses from off-balance sheet arrangements through Sempra’s guarantee related to Cameron LNG JV’s SDSRA, which we discuss in Note 6. We regularly monitor and evaluate credit losses and record allowances for expected credit losses, if necessary, for trade and other accounts receivable using a combination of factors, including past-due status based on contractual terms, trends in write-offs, the age of the receivables and customer payment patterns, historical and industry trends, counterparty creditworthiness, economic conditions and specific events, such as bankruptcies, pandemics and other factors. We write off financial assets measured at amortized cost in the period in which we determine they are not recoverable. We record recoveries of amounts previously written off when it is known that they will be recovered. |
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 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 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.In 2021, the potentially dilutive impact from mandatory convertible preferred stock was calculated under the if-converted method until the mandatory conversion date. After the mandatory conversion date, the converted shares are included in weighted-average common shares outstanding for basic EPS. |
Interim period effective tax rate policy | Sempra, 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 ▪ state income taxes The AFUDC related to equity recorded for regulated construction projects at Sempra Infrastructure has similar flow-through treatment. |
New Accounting Standards | ASU 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”: ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. In addition to other changes, this standard amends ASC 470-20, “Debt with Conversion and Other Options,” by removing the accounting models for instruments with beneficial and cash conversion features. The standard also amends certain guidance in ASC 260, “Earnings Per Share,” for the computation of EPS for convertible instruments and contracts on an entity’s own equity. For public entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. An entity can use either a full or modified retrospective approach to adopt ASU 2020-06 and must disclose, in the period of adoption, EPS transition information about the effect of the change on affected per-share amounts. We adopted the standard on January 1, 2022 using a modified retrospective approach and the adoption did not materially impact our financial statements or per-share amounts. |
Derivative Financial Instruments | 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: ▪ SDG&E and SoCalGas 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 Infrastructure may use natural gas and electricity derivatives, as appropriate, in an effort 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 on the Condensed Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. ▪ From time to time, our various businesses, including SDG&E and SoCalGas, may use other energy derivatives to hedge exposures such as greenhouse gas allowances. INTEREST RATE DERIVATIVES We are exposed to interest rates primarily as a result of our current and expected use of financing. SDG&E and SoCalGas, as well as Sempra 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. 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 fixed interest rates for U.S. fixed interest rates. From time to time, Sempra Infrastructure 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 may 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 | We have not changed the valuation techniques or types of inputs we use to measure recurring fair value since December 31, 2021. 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: ▪ Nuclear decommissioning trusts reflect the assets of SDG&E’s NDT, excluding accounts receivable and accounts payable. 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 – SDG&E.” ▪ Rabbi Trust investments include short-term investments that consist of money market and mutual funds 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). ▪ As we discuss in Note 6, in July 2020, Sempra entered into a Support Agreement for the benefit of CFIN. We measure the Support Agreement, which includes a guarantee obligation, a put option and a call option, net of related guarantee fees, at fair value on a recurring basis. We use a discounted cash flow model to value the Support Agreement, net of related guarantee fees. Because some of the inputs that are significant to the valuation are less observable, the Support Agreement is classified as Level 3, as we describe below in “Level 3 Information – Sempra Infrastructure.” A significant increase (decrease) in market electricity forward prices would result in a significantly higher (lower) fair value. We summarize long-term, fixed-price electricity position volumes in Note 8. Realized gains and losses associated with CRRs and long-term, fixed-price 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 receivable, amounts due to/from unconsolidated affiliates with original maturities of less than 90 days, 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 |
Legal Costs Policy | LEGAL PROCEEDINGS We accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. 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, and in some cases have exceeded, applicable insurance coverage and could materially adversely affect our business, results of operations, financial condition, cash flows and/or prospects. Unless otherwise indicated, we are unable to reasonably estimate possible losses or a range of 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’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 | A lease exists when a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. We determine if an arrangement is or contains a lease at inception of the contract. Some of our lease agreements contain nonlease components, which represent activities that transfer a separate good or service to the lessee. As the lessee for both operating and finance leases, we have elected to combine lease and nonlease components as a single lease component for real estate, fleet vehicles, power generating facilities, and pipelines, whereby fixed or in-substance fixed payments allocable to the nonlease component are accounted for as part of the related lease liability and ROU asset. As the lessor, we have elected to combine lease and nonlease components as a single lease component for real estate and liquid fuels terminals. |
Lessor, Leases Policy | Generally, we recognize operating lease income on a straight-line basis over the lease term, and sales-type lease income based on the effective interest method over the lease term. Certain of our leases contain rate adjustments or are based on foreign currency exchange rates that may result in lease payments received that vary in amount from one period to the next. |
Segment Information | We have four 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 Utilitie s holds our investment in Oncor Holdings, which owns an 80.25% interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern, western and panhandle regions of Texas; and our indirect, 50% interest in Sharyland Holdings L.P., which owns Sharyland Utilities, L.L.C., a regulated electric transmission utility serving customers near the Texas-Mexico border. ▪ Sempra Infrastructure includes the operating companies of our subsidiary, SI Partners, as well as a holding company and certain services companies. Sempra Infrastructure develops, builds, operates and invests in energy infrastructure to help enable the energy transition in North American markets and globally. Sempra Infrastructure owns an 80% interest in SI Partners, which held a 100% ownership interest in Sempra LNG Holding, LP and a 99.9% ownership interest in IEnova at March 31, 2022. We evaluate each segment’s performance based on its contribution to Sempra’s reported earnings and cash flows. SDG&E and SoCalGas operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC and, in the case of SDG&E, the FERC. 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. |
GENERAL INFORMATION AND OTHER_3
GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 Sempra’s Condensed Consolidated Balance Sheets to the sum of such amounts reported on Sempra’s 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, 2022 2021 Cash and cash equivalents $ 2,519 $ 559 Restricted cash, current 14 19 Restricted cash, noncurrent 3 3 Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows $ 2,536 $ 581 |
Accounts Receivable, Allowance for Credit Loss Table | We provide below allowances and changes in allowances for credit losses for trade receivables and other receivables. SDG&E and SoCalGas record changes in the allowances for credit losses related to Accounts Receivable – Trade in regulatory accounts. RECEIVABLES – ALLOWANCES FOR CREDIT LOSSES (Dollars in millions) 2022 2021 Sempra: Allowances for credit losses at January 1 $ 136 $ 138 Provisions for expected credit losses 48 43 Write-offs (19) (5) Allowances for credit losses at March 31 $ 165 $ 176 SDG&E: Allowances for credit losses at January 1 $ 66 $ 69 Provisions for expected credit losses 21 15 Write-offs (9) (3) Allowances for credit losses at March 31 $ 78 $ 81 SoCalGas: Allowances for credit losses at January 1 $ 69 $ 68 Provisions for expected credit losses 26 28 Write-offs (10) (2) Allowances for credit losses at March 31 $ 85 $ 94 Allowances for credit losses related to accounts receivable are included in the Condensed Consolidated Balance Sheets as follows: ALLOWANCES FOR CREDIT LOSSES (Dollars in millions) March 31, December 31, 2022 2021 Sempra: Accounts receivable – trade, net $ 125 $ 94 Accounts receivable – other, net 38 39 Other long-term assets 2 3 Total allowances for credit losses $ 165 $ 136 SDG&E: Accounts receivable – trade, net $ 55 $ 42 Accounts receivable – other, net 22 22 Other long-term assets 1 2 Total allowances for credit losses $ 78 $ 66 SoCalGas: Accounts receivable – trade, net $ 68 $ 51 Accounts receivable – other, net 16 17 Other long-term assets 1 1 Total allowances for credit losses $ 85 $ 69 |
Inventory Table | The components of inventories are as follows: INVENTORY BALANCES (Dollars in millions) Sempra SDG&E SoCalGas March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Natural gas $ 129 $ 164 $ — $ — $ 87 $ 114 LNG 22 27 — — — — Materials and supplies 201 198 123 123 62 58 Total $ 352 $ 389 $ 123 $ 123 $ 149 $ 172 |
Capitalized Financing Costs Table | The table below summarizes capitalized financing costs, comprised of AFUDC and capitalized interest. CAPITALIZED FINANCING COSTS (Dollars in millions) Three months ended March 31, 2022 2021 Sempra $ 57 $ 59 SDG&E 28 30 SoCalGas 18 16 |
Net Periodic Benefit Cost Table | The following three tables provide the components of net periodic benefit cost. NET PERIODIC BENEFIT COST – SEMPRA (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2022 2021 2022 2021 Service cost $ 41 $ 37 $ 7 $ 6 Interest cost 30 28 7 7 Expected return on assets (46) (43) (16) (15) Amortization of: Prior service cost (credit) 3 3 (1) (1) Actuarial loss (gain) 6 11 (4) (2) Settlement charges — 7 — — Net periodic benefit cost (credit) 34 43 (7) (5) Regulatory adjustments (27) (29) 7 5 Total expense recognized $ 7 $ 14 $ — $ — NET PERIODIC BENEFIT COST – SDG&E (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2022 2021 2022 2021 Service cost $ 10 $ 8 $ 2 $ 1 Interest cost 7 6 1 1 Expected return on assets (11) (12) (2) (2) Amortization of: Actuarial gain — — (1) — Net periodic benefit cost 6 2 — — Regulatory adjustments (5) (2) — — Total expense recognized $ 1 $ — $ — $ — NET PERIODIC BENEFIT COST – SOCALGAS (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2022 2021 2022 2021 Service cost $ 28 $ 25 $ 5 $ 4 Interest cost 20 20 5 5 Expected return on assets (31) (28) (13) (12) Amortization of: Prior service cost (credit) 2 2 (1) (1) Actuarial loss (gain) 4 9 (3) (1) Net periodic benefit cost (credit) 23 28 (7) (5) Regulatory adjustments (22) (27) 7 5 Total expense recognized $ 1 $ 1 $ — $ — |
Earnings Per Share Computations Table | Basic EPS is calculated by dividing earnings attributable to common shares by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. EARNINGS PER COMMON SHARE COMPUTATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended March 31, 2022 2021 Numerator: Earnings attributable to common shares for basic EPS $ 612 $ 874 Add back dividends for dilutive mandatory convertible preferred stock (1) — 10 Earnings attributable to common shares for diluted EPS $ 612 $ 884 Denominator: Weighted-average common shares outstanding for basic EPS (2) 316,353 300,905 Dilutive effect of stock options and RSUs (3) 1,081 887 Dilutive effect of mandatory convertible preferred stock — 6,666 Weighted-average common shares outstanding for diluted EPS 317,434 308,458 EPS: Basic $ 1.93 $ 2.91 Diluted $ 1.93 $ 2.87 (1) In the three months ended March 31, 2021, due to the dilutive effect of mandatory convertible preferred stock, the numerator used to calculate diluted EPS includes an add-back of dividends declared on our mandatory convertible preferred stock. (2) Includes 407 and 460 fully vested RSUs held in our Deferred Compensation Plan for the three months ended March 31, 2022 and 2021, 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. |
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 Financial Pension Total Three months ended March 31, 2022 and 2021 Sempra: Balance at December 31, 2021 $ (79) $ (156) $ (83) $ (318) OCI before reclassifications 3 74 6 83 Amounts reclassified from AOCI — 4 2 6 Net OCI 3 78 8 89 Balance at March 31, 2022 $ (76) $ (78) $ (75) $ (229) Balance at December 31, 2020 $ (64) $ (331) $ (105) $ (500) OCI before reclassifications (5) 73 7 75 Amounts reclassified from AOCI — 19 7 26 Net OCI (5) 92 14 101 Balance at March 31, 2021 $ (69) $ (239) $ (91) $ (399) SDG&E: Balance at December 31, 2021 and March 31, 2022 $ (10) $ (10) Balance at December 31, 2020 and March 31, 2021 $ (10) $ (10) SoCalGas: Balance at December 31, 2021 $ (13) $ (18) $ (31) Amounts reclassified from AOCI — 1 1 Net OCI — 1 1 Balance at March 31, 2022 $ (13) $ (17) $ (30) Balance at December 31, 2020 and March 31, 2021 $ (13) $ (18) $ (31) (1) All amounts are net of income tax, if subject to tax, and exclude NCI. |
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, 2022 2021 Sempra: Financial instruments: Interest rate instruments $ (1) $ 2 Interest Expense Interest rate instruments 14 19 Equity Earnings (1) Foreign exchange instruments (1) 1 Revenues: Energy-Related Businesses Foreign exchange instruments (1) 1 Equity Earnings (1) Interest rate and foreign exchange instruments (6) 6 Other Income, Net Total before income tax 5 29 (1) (8) Income Tax Expense Net of income tax 4 21 — (2) Earnings Attributable to Noncontrolling Interests $ 4 $ 19 Pension and other postretirement benefits (2) : Amortization of actuarial loss $ 2 $ 2 Other Income, Net Amortization of prior service cost 1 1 Other Income, Net Settlement charges — 7 Other Income, Net Total before income tax 3 10 (1) (3) Income Tax Expense Net of income tax $ 2 $ 7 Total reclassifications for the period, net of tax $ 6 $ 26 SoCalGas: Pension and other postretirement benefits (2) : Amortization of actuarial loss $ 1 $ — Other Income, Net Total reclassifications for the period, net of tax $ 1 $ — (1) Equity earnings at our foreign equity method investees are recognized after tax. (2) Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above). |
Ownership Interests Held By Others Table | The following table provides information about NCI held by others in subsidiaries or entities consolidated by us and recorded in Other Noncontrolling Interests in Total Equity on Sempra’s Condensed Consolidated Balance Sheets. OTHER NONCONTROLLING INTERESTS (Dollars in millions) Percent ownership held by noncontrolling interests Equity held by March 31, December 31, March 31, December 31, Sempra Infrastructure: SI Partners 20.0 % 20.0 % $ 1,387 $ 1,384 SI Partners subsidiaries (1) 0.1 - 16.6 0.1 - 16.6 39 34 Total Sempra $ 1,426 $ 1,418 (1) SI Partners has subsidiaries with NCI held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries. |
Transactions with Affiliates Table | We summarize amounts due from and to unconsolidated affiliates at Sempra, SDG&E and SoCalGas in the following table. AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES (Dollars in millions) March 31, December 31, Sempra: Sempra Infrastructure – IMG – Note due March 15, 2023 (1) $ 626 $ 2 Various affiliates 45 21 Total due from unconsolidated affiliates – current $ 671 $ 23 Sempra Infrastructure – IMG – Note due March 15, 2022, net of allowance for credit losses of $1 at December 31, 2021 (1) $ — $ 637 Total due from unconsolidated affiliates – noncurrent $ — $ 637 Sempra Infrastructure (2) : TAG Pipelines Norte, S. de R.L. de C.V.: 5.5% Note due January 9, 2024 $ (70) $ (69) 5.5% Note due January 14, 2025 (22) (21) 5.5% Note due July 16, 2025 (20) (20) 5.5% Note due January 14, 2026 (18) — TAG – 5.74% Note due December 17, 2029 (179) (177) Total due to unconsolidated affiliates – noncurrent $ (309) $ (287) SDG&E: Various affiliates $ 1 $ — Total due from unconsolidated affiliates – current $ 1 $ — Sempra $ (51) $ (40) SoCalGas (43) (48) Various affiliates (11) (9) Total due to unconsolidated affiliates – current $ (105) $ (97) Income taxes due (to) from Sempra (3) $ (41) $ 19 SoCalGas: SDG&E $ 43 $ 48 Various affiliates 1 1 Total due from unconsolidated affiliates – current $ 44 $ 49 Sempra $ (45) $ (36) Total due to unconsolidated affiliates – current $ (45) $ (36) Income taxes due from Sempra (3) $ 6 $ 6 (1) At December 31, 2021, represents a Mexican peso-denominated revolving line of credit for up to 14.2 billion Mexican pesos or approximately $691 U.S. dollar-equivalent at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps. On March 15, 2022, Sempra Infrastructure amended and restated the revolving line of credit to a U.S. dollar-denominated note in the amount of $625 at a variable interest rate based on the 1-month Secured Overnight Financing Rate plus 180 bps (2.22% at March 31, 2022) and extended the maturity date to March 15, 2023. At March 31, 2022 and December 31, 2021, $1 and $2 of accrued interest receivable, respectively, is included in Due from Unconsolidated Affiliates – Current. (2) U.S. dollar-denominated loans at fixed interest rates. Amounts include principal balances plus accumulated interest outstanding. (3) SDG&E and SoCalGas are included in the consolidated income tax return of Sempra, and their respective income tax expense is computed as an amount equal to that which would result from each company having always filed a separate return. The following table summarizes income statement information from unconsolidated affiliates. INCOME STATEMENT IMPACT FROM UNCONSOLIDATED AFFILIATES (Dollars in millions) Three months ended 2022 2021 Sempra: Revenues $ 7 $ 8 Cost of sales — 11 Interest income 10 15 Interest expense 4 4 SDG&E: Revenues $ 4 $ 2 Cost of sales 24 28 SoCalGas: Revenues $ 26 $ 25 Cost of sales (1) — 3 (1) Includes net commodity costs from natural gas transactions with unconsolidated affiliates. |
Other Income and Expense Table | Other income, net, consists of the following: OTHER INCOME, NET (Dollars in millions) Three months ended March 31, 2022 2021 Sempra: Allowance for equity funds used during construction $ 35 $ 38 Investment (losses) gains, net (1) (13) 9 Gains (losses) on interest rate and foreign exchange instruments, net 6 (30) Foreign currency transaction losses, net (2) (19) (19) Non-service component of net periodic benefit credit 41 29 Interest on regulatory balancing accounts, net 1 1 Sundry, net (13) 7 Total $ 38 $ 35 SDG&E: Allowance for equity funds used during construction $ 21 $ 23 Non-service component of net periodic benefit credit 11 9 Interest on regulatory balancing accounts, net 1 1 Sundry, net 1 2 Total $ 34 $ 35 SoCalGas: Allowance for equity funds used during construction $ 13 $ 12 Non-service component of net periodic benefit credit 32 28 Sundry, net (11) (1) Total $ 34 $ 39 (1) Represents net investment (losses) gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are offset by corresponding changes in compensation expense related to the plans, recorded in O&M on the Condensed Consolidated Statements of Operations. (2) Includes losses of $11 and $23 in the three months ended March 31, 2022 and 2021, respectively, from translation to U.S. dollars of a Mexican peso-denominated loan to IMG, which are offset by corresponding amounts included in Equity Earnings on the Condensed Consolidated Statements of Operations. |
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, 2022 2021 Sempra: Income tax expense $ 334 $ 158 Income before income taxes and equity earnings $ 665 $ 768 Equity earnings, before income tax (1) 143 135 Pretax income $ 808 $ 903 Effective income tax rate 41 % 18 % SDG&E: Income tax expense $ 64 $ 45 Income before income taxes $ 298 $ 257 Effective income tax rate 21 % 18 % SoCalGas: Income tax expense $ 84 $ 94 Income before income taxes $ 418 $ 501 Effective income tax rate 20 % 19 % (1) We discuss how we recognize equity earnings in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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) SDG&E SoCalGas Sempra Infrastructure Consolidating adjustments and Parent Sempra Three months ended March 31, 2022 By major service line: Utilities $ 1,501 $ 1,912 $ 28 $ (29) $ 3,412 Energy-related businesses — — 292 (15) 277 Revenues from contracts with customers $ 1,501 $ 1,912 $ 320 $ (44) $ 3,689 By market: Gas $ 330 $ 1,912 $ 229 $ (26) $ 2,445 Electric 1,171 — 91 (18) 1,244 Revenues from contracts with customers $ 1,501 $ 1,912 $ 320 $ (44) $ 3,689 Revenues from contracts with customers $ 1,501 $ 1,912 $ 320 $ (44) $ 3,689 Utilities regulatory revenues (56) 81 — — 25 Other revenues — — 104 2 106 Total revenues $ 1,445 $ 1,993 $ 424 $ (42) $ 3,820 Three months ended March 31, 2021 By major service line: Utilities $ 1,216 $ 1,657 $ 27 $ (27) $ 2,873 Energy-related businesses — — 269 (1) 268 Revenues from contracts with customers $ 1,216 $ 1,657 $ 296 $ (28) $ 3,141 By market: Gas $ 273 $ 1,657 $ 212 $ (24) $ 2,118 Electric 943 — 84 (4) 1,023 Revenues from contracts with customers $ 1,216 $ 1,657 $ 296 $ (28) $ 3,141 Revenues from contracts with customers $ 1,216 $ 1,657 $ 296 $ (28) $ 3,141 Utilities regulatory revenues 121 (149) — — (28) Other revenues — — 153 (7) 146 Total revenues $ 1,337 $ 1,508 $ 449 $ (35) $ 3,259 |
Schedule of Timing of Remaining Performance Obligations | For contracts greater than one year, at March 31, 2022, we expect to recognize revenue related to the fixed fee component of the consideration as shown below. Sempra’s remaining performance obligations primarily relate to capacity agreements for natural gas storage and transportation at Sempra Infrastructure and transmission line projects at SDG&E. SoCalGas did not have any remaining performance obligations at March 31, 2022. REMAINING PERFORMANCE OBLIGATIONS (1) (Dollars in millions) Sempra SDG&E 2022 (excluding first three months of 2022) $ 277 $ 3 2023 367 4 2024 365 4 2025 362 4 2026 361 4 Thereafter 4,289 63 Total revenues to be recognized $ 6,021 $ 82 (1) |
Schedule of Contract Liabilities | Activities within Sempra’s and SDG&E’s contract liabilities are presented below. There were no contract liabilities at SoCalGas in the three months ended March 31, 2022 or 2021. CONTRACT LIABILITIES (Dollars in millions) 2022 2021 Sempra: Contract liabilities at January 1 $ (278) $ (207) Revenue from performance obligations satisfied during reporting period 39 25 Contract liabilities at March 31 (1) $ (239) $ (182) SDG&E: Contract liabilities at January 1 $ (83) $ (87) Revenue from performance obligations satisfied during reporting period 1 1 Contract liabilities at March 31 (1) $ (82) $ (86) (1) Balances at March 31, 2022, include $78 and $4 in Other Current Liabilities and $161 and $78 in Deferred Credits and Other on Sempra’s and SDG&E’s Condensed Consolidated Balance Sheets, respectively. |
Schedule of Contract Accounts Receivable | The table below shows receivable balances associated with revenues from contracts with customers on the Condensed Consolidated Balance Sheets. RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS (Dollars in millions) March 31, 2022 December 31, 2021 Sempra: Accounts receivable – trade, net $ 1,697 $ 1,886 Accounts receivable – other, net 12 19 Due from unconsolidated affiliates – current (1) 3 2 Other long-term assets (2) 42 70 Total $ 1,754 $ 1,977 SDG&E: Accounts receivable – trade, net $ 742 $ 715 Accounts receivable – other, net 11 9 Due from unconsolidated affiliates – current (1) 3 2 Other long-term assets (2) 22 25 Total $ 778 $ 751 SoCalGas: Accounts receivable – trade, net $ 870 $ 1,084 Accounts receivable – other, net 1 10 Other long-term assets (2) 20 45 Total $ 891 $ 1,139 (1) Amount is presented net of amounts due to unconsolidated affiliates on the Condensed Consolidated Balance Sheets, when right of offset exists. (2) In connection with the COVID-19 pandemic and at the direction of the CPUC, SDG&E and SoCalGas enrolled residential and small business customers with past-due balances in long-term repayment plans. |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | REGULATORY ASSETS (LIABILITIES) (Dollars in millions) March 31, December 31, SDG&E: Fixed-price contracts and other derivatives $ (57) $ (50) Deferred income taxes recoverable in rates 151 125 Pension and other postretirement benefit plan obligations (1) (7) Removal obligations (2,229) (2,251) Environmental costs 61 62 Sunrise Powerlink fire mitigation 123 122 Regulatory balancing accounts (1)(2) Commodity – electric 122 77 Gas transportation 29 49 Safety and reliability 73 67 Public purpose programs (126) (107) Wildfire mitigation plan 215 178 Liability insurance premium 108 110 Other balancing accounts 36 207 Other regulatory assets, net (2) 106 119 Total SDG&E (1,389) (1,299) SoCalGas: Deferred income taxes recoverable in rates 95 44 Pension and other postretirement benefit plan obligations 64 51 Employee benefit costs 31 31 Removal obligations (612) (627) Environmental costs 34 34 Regulatory balancing accounts (1)(2) Commodity – gas, including transportation (87) (146) Safety and reliability 378 339 Public purpose programs (234) (183) Liability insurance premium 17 16 Other balancing accounts (109) 42 Other regulatory assets, net (2) 147 142 Total SoCalGas (276) (257) Sempra Infrastructure: Deferred income taxes recoverable in rates 77 77 Total Sempra $ (1,588) $ (1,479) (1) At March 31, 2022 and December 31, 2021, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $426 and $358, respectively, and for SoCalGas was $532 and $410, respectively. (2) Includes regulatory assets earning a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate. |
Schedule of Regulatory Liabilities | REGULATORY ASSETS (LIABILITIES) (Dollars in millions) March 31, December 31, SDG&E: Fixed-price contracts and other derivatives $ (57) $ (50) Deferred income taxes recoverable in rates 151 125 Pension and other postretirement benefit plan obligations (1) (7) Removal obligations (2,229) (2,251) Environmental costs 61 62 Sunrise Powerlink fire mitigation 123 122 Regulatory balancing accounts (1)(2) Commodity – electric 122 77 Gas transportation 29 49 Safety and reliability 73 67 Public purpose programs (126) (107) Wildfire mitigation plan 215 178 Liability insurance premium 108 110 Other balancing accounts 36 207 Other regulatory assets, net (2) 106 119 Total SDG&E (1,389) (1,299) SoCalGas: Deferred income taxes recoverable in rates 95 44 Pension and other postretirement benefit plan obligations 64 51 Employee benefit costs 31 31 Removal obligations (612) (627) Environmental costs 34 34 Regulatory balancing accounts (1)(2) Commodity – gas, including transportation (87) (146) Safety and reliability 378 339 Public purpose programs (234) (183) Liability insurance premium 17 16 Other balancing accounts (109) 42 Other regulatory assets, net (2) 147 142 Total SoCalGas (276) (257) Sempra Infrastructure: Deferred income taxes recoverable in rates 77 77 Total Sempra $ (1,588) $ (1,479) (1) At March 31, 2022 and December 31, 2021, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $426 and $358, respectively, and for SoCalGas was $532 and $410, respectively. (2) Includes regulatory assets earning a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate. |
CPUC Authorized Cost of Capital and Rate Structure | In December 2019, the CPUC approved the cost of capital (shown in the table below) for SDG&E and SoCalGas that became effective on January 1, 2020 and will remain in effect through December 31, 2022, subject to the CCM. SDG&E’s CCM benchmark rate is 4.498% based on Moody’s Baa- utility bond index, and SoCalGas’ CCM benchmark rate is 4.029% based on Moody’s A- utility bond index. AUTHORIZED CPUC COST OF CAPITAL, SUBJECT TO THE CCM SDG&E SoCalGas Authorized weighting Return on Weighted Authorized weighting Return on Weighted 45.25 % 4.59 % 2.08 % Long-Term Debt 45.60 % 4.23 % 1.93 % 2.75 6.22 0.17 Preferred Equity 2.40 6.00 0.14 52.00 10.20 5.30 Common Equity 52.00 10.05 5.23 100.00 % 7.55 % 100.00 % 7.30 % In April 2022, SDG&E and SoCalGas each filed applications with the CPUC to update their cost of capital (shown in the table below), which would become effective on January 1, 2023 and would remain in effect through December 31, 2025, subject to the CCM if it remains in place as proposed. SDG&E and SoCalGas expect to receive a final decision from the CPUC by the end of 2022. PROPOSED CPUC COST OF CAPITAL SDG&E SoCalGas Authorized weighting Return on Weighted Authorized weighting Return on Weighted 46.00 % 3.87 % 1.78 % Long-Term Debt 45.60 % 3.89 % 1.77 % — — — Preferred Equity 0.40 6.00 0.02 54.00 10.55 5.70 Common Equity 54.00 10.75 5.81 100.00 % 7.48 % 100.00 % 7.60 % |
INVESTMENT IN UNCONSOLIDATED EN
INVESTMENT IN UNCONSOLIDATED ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments [Abstract] | |
Condensed Financial Statements | 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, 2022 2021 Operating revenues $ 1,249 $ 1,139 Operating expenses (897) (829) Income from operations 352 310 Interest expense (108) (102) Income tax expense (42) (36) Net income 191 165 Noncontrolling interest held by Texas Transmission Investment LLC (38) (33) Earnings attributable to Sempra (1) 153 132 |
DEBT AND CREDIT FACILITIES (Tab
DEBT AND CREDIT FACILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | COMMITTED LINES OF CREDIT (Dollars in millions) March 31, 2022 Borrower Expiration date of facility Total facility Commercial paper outstanding Amounts outstanding Available unused credit Sempra May 2024 $ 3,185 $ (1,504) $ — $ 1,681 Sempra May 2024 1,250 — — 1,250 SDG&E May 2024 1,500 — — 1,500 SoCalGas May 2024 750 — — 750 SI Partners November 2024 1,000 — — 1,000 IEnova September 2023 350 — (265) 85 IEnova February 2024 1,500 — — 1,500 Total $ 9,535 $ (1,504) $ (265) $ 7,766 FOREIGN UNCOMMITTED LINES OF CREDIT (Dollars and U.S. dollar equivalent in millions) March 31, 2022 Borrower Expiration date of facility Borrowing denomination Total facility Amounts outstanding Available unused credit IEnova September 2022 U.S. dollars $ 250 $ (250) $ — ECA LNG Phase 1 (1) August 2023 U.S. dollars or Mexican pesos 200 (64) 136 IEnova (2) October 2023 U.S. dollars 100 (100) — IEnova October 2023 U.S. dollars or Mexican pesos 20 — 20 Total $ 570 $ (414) $ 156 (1) In March 2022, the facility was amended to increase the borrowing capacity from $100 to $200. (2) Advances are due in full within 180 days of the disbursement date, which may be extended in increments of 180 days provided that no advance may have a maturity date that falls more than three years after the date of disbursement. UNCOMMITTED LETTERS OF CREDIT (Dollars in millions) March 31, 2022 Expiration date range Uncommitted letters of credit outstanding SDG&E May 2022 to January 2023 $ 15 SoCalGas June 2022 to March 2023 15 Sempra Infrastructure April 2022 to October 2043 473 Parent and other April 2022 to March 2023 179 Total $ 682 The weighted-average interest rates on all short-term debt were as follows: WEIGHTED-AVERAGE INTEREST RATES March 31, 2022 December 31, 2021 Sempra 1.14 % 0.60 % SDG&E — 0.65 SoCalGas — 0.21 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 December 31, 2021 Sempra: Natural gas MMBtu 162 184 Electricity MWh 1 1 Congestion revenue rights MWh 43 45 SDG&E: Natural gas MMBtu 5 7 Electricity MWh 1 1 Congestion revenue rights MWh 43 45 SoCalGas: Natural gas MMBtu 143 201 |
Notional Amounts of Derivatives Table | . INTEREST RATE DERIVATIVES (Dollars in millions) March 31, 2022 December 31, 2021 Notional debt Maturities Notional debt Maturities Sempra: Cash flow hedges $ 451 2022-2034 $ 462 2022-2034 The following table presents the net notional amounts of our foreign currency derivatives, excluding those in our equity method investments. FOREIGN CURRENCY DERIVATIVES (Dollars in millions) March 31, 2022 December 31, 2021 Notional amount Maturities Notional amount Maturities Sempra: Cross-currency swaps $ 306 2022-2023 $ 306 2022-2023 Other foreign currency derivatives 87 2022-2023 106 2022-2023 |
Derivative Instruments on the Condensed Consolidated Balance Sheets Table | DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) March 31, 2022 Other current assets Other long-term assets Other current liabilities Deferred credits and other Sempra: Derivatives designated as hedging instruments: Interest rate instruments $ — $ 21 $ (1) $ — Foreign exchange instruments — — (2) — Interest rate and foreign exchange instruments — — (121) — Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery 174 38 (186) (42) Associated offsetting commodity contracts (169) (36) 169 36 Commodity contracts subject to rate recovery 39 45 (19) — Associated offsetting commodity contracts (8) — 8 — Net amounts presented on the balance sheet 36 68 (152) (6) Additional cash collateral for commodity contracts not subject to rate recovery 41 — — — Additional cash collateral for commodity contracts subject to rate recovery 37 — — — Total (1) $ 114 $ 68 $ (152) $ (6) SDG&E: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 39 $ 45 $ (11) $ — Associated offsetting commodity contracts (8) — 8 — Net amounts presented on the balance sheet 31 45 (3) — Additional cash collateral for commodity contracts subject to rate recovery 35 — — — Total (1) $ 66 $ 45 $ (3) $ — SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ — $ — $ (8) $ — Net amounts presented on the balance sheet — — (8) — Additional cash collateral for commodity contracts subject to rate recovery 2 — — — Total $ 2 $ — $ (8) $ — (1) Normal purchase contracts previously measured at fair value are excluded. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (Dollars in millions) December 31, 2021 Other current assets Other long-term assets Other current liabilities Deferred credits and other Sempra: Derivatives designated as hedging instruments: Interest rate instruments $ — $ 6 $ (6) $ (2) Foreign exchange instruments 1 1 (1) — Interest rate and foreign exchange instruments — — (1) (130) Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery 136 11 (122) (10) Associated offsetting commodity contracts (93) (8) 93 8 Commodity contracts subject to rate recovery 38 52 (58) — Associated offsetting commodity contracts (8) — 8 — Net amounts presented on the balance sheet 74 62 (87) (134) Additional cash collateral for commodity contracts not subject to rate recovery 58 — — — Additional cash collateral for commodity contracts subject to rate recovery 46 — — — Total (1) $ 178 $ 62 $ (87) $ (134) SDG&E: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 34 $ 52 $ (20) $ — Associated offsetting commodity contracts (5) — 5 — Net amounts presented on the balance sheet 29 52 (15) — Additional cash collateral for commodity contracts subject to rate recovery 28 — — — Total (1) $ 57 $ 52 $ (15) $ — SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 4 $ — $ (38) $ — Associated offsetting commodity contracts (3) — 3 — Net amounts presented on the balance sheet 1 — (35) — Additional cash collateral for commodity contracts subject to rate recovery 18 — — — Total $ 19 $ — $ (35) $ — (1) Normal purchase contracts previously measured at fair value are excluded. |
Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table | The following table 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) Pretax gain (loss) reclassified Three months ended March 31, Three months ended March 31, 2022 2021 Location 2022 2021 Sempra: Interest rate instruments $ 22 $ 26 Interest Expense $ 1 $ (2) Interest rate instruments 94 83 Equity Earnings (1) (14) (19) Foreign exchange instruments (3) 3 Revenues: Energy- Related Businesses 1 (1) Foreign exchange instruments (2) 3 Equity Earnings (1) 1 (1) Interest rate and foreign exchange instruments 9 (6) Other Income, Net 6 (6) Total $ 120 $ 109 $ (5) $ (29) (1) Equity earnings at our foreign equity method investees are recognized after tax. |
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 (loss) gain on derivatives recognized in earnings Three months ended March 31, Location 2022 2021 Sempra: Commodity contracts not subject to rate recovery Revenues: Energy-Related Businesses $ (77) $ (48) Commodity contracts subject to rate recovery Cost of Natural Gas — 2 Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power 18 2 Foreign exchange instruments Other Income, Net — (24) Total $ (59) $ (68) SDG&E: Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power $ 18 $ 2 SoCalGas: Commodity contracts subject to rate recovery Cost of Natural Gas $ — $ 2 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measures | RECURRING FAIR VALUE MEASURES – SEMPRA (Dollars in millions) Fair value at March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Short-term investments, primarily cash equivalents $ 12 $ (9) $ — $ 3 Equity securities 324 5 — 329 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 39 12 — 51 Municipal bonds — 304 — 304 Other securities — 254 — 254 Total debt securities 39 570 — 609 Total nuclear decommissioning trusts (1) 375 566 — 941 Short-term investments held in Rabbi Trust 47 — — 47 Interest rate instruments — 21 — 21 Commodity contracts not subject to rate recovery — 7 — 7 Effect of netting and allocation of collateral (2) 41 — — 41 Commodity contracts subject to rate recovery 15 — 61 76 Effect of netting and allocation of collateral (2) 31 — 6 37 Support Agreement, net of related guarantee fees — — 12 12 Total $ 509 $ 594 $ 79 $ 1,182 Liabilities: Interest rate instruments $ — $ 1 $ — $ 1 Foreign exchange instruments — 2 — 2 Interest rate and foreign exchange instruments — 121 — 121 Commodity contracts not subject to rate recovery — 23 — 23 Commodity contracts subject to rate recovery — 8 3 11 Total $ — $ 155 $ 3 $ 158 (1) Excludes receivables (payables), net. (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 – SEMPRA (CONTINUED) (Dollars in millions) Fair value at December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Short-term investments, primarily cash equivalents $ 13 $ (10) $ — $ 3 Equity securities 358 6 — 364 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 48 8 — 56 Municipal bonds — 321 — 321 Other securities — 260 — 260 Total debt securities 48 589 — 637 Total nuclear decommissioning trusts (1) 419 585 — 1,004 Short-term investments held in Rabbi Trust 81 — — 81 Interest rate instruments — 6 — 6 Foreign exchange instruments — 2 — 2 Commodity contracts not subject to rate recovery — 46 — 46 Effect of netting and allocation of collateral (2) 58 — — 58 Commodity contracts subject to rate recovery 12 1 69 82 Effect of netting and allocation of collateral (2) 31 9 6 46 Support Agreement, net of related guarantee fees — — 7 7 Total $ 601 $ 649 $ 82 $ 1,332 Liabilities: Interest rate instruments $ — $ 8 $ — $ 8 Foreign exchange instruments — 1 — 1 Interest rate and foreign exchange instruments — 131 — 131 Commodity contracts not subject to rate recovery — 31 — 31 Commodity contracts subject to rate recovery — 35 15 50 Total $ — $ 206 $ 15 $ 221 (1) Excludes receivables (payables), net. (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, 2022 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Short-term investments, primarily cash equivalents $ 12 $ (9) $ — $ 3 Equity securities 324 5 — 329 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 39 12 — 51 Municipal bonds — 304 — 304 Other securities — 254 — 254 Total debt securities 39 570 — 609 Total nuclear decommissioning trusts (1) 375 566 — 941 Commodity contracts subject to rate recovery 15 — 61 76 Effect of netting and allocation of collateral (2) 29 — 6 35 Total $ 419 $ 566 $ 67 $ 1,052 Liabilities: Commodity contracts subject to rate recovery $ — $ — $ 3 $ 3 Total $ — $ — $ 3 $ 3 Fair value at December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Short-term investments, primarily cash equivalents $ 13 $ (10) $ — $ 3 Equity securities 358 6 — 364 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 48 8 — 56 Municipal bonds — 321 — 321 Other securities — 260 — 260 Total debt securities 48 589 — 637 Total nuclear decommissioning trusts (1) 419 585 — 1,004 Commodity contracts subject to rate recovery 12 — 69 81 Effect of netting and allocation of collateral (2) 22 — 6 28 Total $ 453 $ 585 $ 75 $ 1,113 Liabilities: Commodity contracts subject to rate recovery $ — $ — $ 15 $ 15 Total $ — $ — $ 15 $ 15 (1) Excludes receivables (payables), net. (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, 2022 Level 1 Level 2 Level 3 Total Assets: Effect of netting and allocation of collateral (1) $ 2 $ — $ — $ 2 Total $ 2 $ — $ — $ 2 Liabilities: Commodity contracts subject to rate recovery $ — $ 8 $ — $ 8 Total $ — $ 8 $ — $ 8 Fair value at December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ — $ 1 $ — $ 1 Effect of netting and allocation of collateral (1) 9 9 — 18 Total $ 9 $ 10 $ — $ 19 Liabilities: Commodity contracts subject to rate recovery $ — $ 35 $ — $ 35 Total $ — $ 35 $ — $ 35 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. |
Recurring Fair Value Measures Level 3 Rollforward | 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 and SDG&E. LEVEL 3 RECONCILIATIONS (1) (Dollars in millions) Three months ended March 31, 2022 2021 Balance at January 1 $ 54 $ 69 Realized and unrealized gains (losses) 7 (2) Settlements (3) (5) Balance at March 31 $ 58 $ 62 Change in unrealized gains (losses) relating to instruments still held at March 31 $ 9 $ (1) (1) Excludes the effect of the contractual ability to settle contracts under master netting agreements. The table below sets forth reconciliations of changes in the fair value of Sempra’s Support Agreement for the benefit of CFIN classified as Level 3 in the fair value hierarchy for Sempra. LEVEL 3 RECONCILIATIONS (Dollars in millions) Three months ended March 31, 2022 2021 Balance at January 1 $ 7 $ 3 Realized and unrealized gains (1) 8 2 Settlements (3) (2) Balance at March 31 (2) $ 12 $ 3 Change in unrealized gains relating to instruments still held at March 31 $ 7 $ 2 (1) Net gains are included in Interest Income and net losses are included in Interest Expense on Sempra’s Condensed Consolidated Statements of Operations. (2) Includes $7 in Other Current Assets and $5 in Other Long-term Assets at March 31, 2022 on Sempra’s Condensed Consolidated Balance Sheets. |
Schedule of Fair Value Inputs | 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 2022 $ (3.67) to $ 6.96 $ (0.70) 2021 (1.81) to 14.11 (0.12) LONG-TERM, FIXED-PRICE ELECTRICITY POSITIONS PRICE INPUTS Settlement year Price per MWh Weighted-average 2022 $ 26.55 to $ 137.80 $ 62.79 2021 20.60 to 117.00 46.46 |
Fair Value of Financial Instruments | 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) Carrying Fair value Level 1 Level 2 Level 3 Total March 31, 2022 Sempra: Short-term amounts due from unconsolidated affiliates (1) $ 626 $ — $ 633 $ — $ 633 Long-term note receivable (2) 306 — — 307 307 Long-term amounts due to unconsolidated affiliates 309 — 304 — 304 Total long-term debt (3) 23,678 — 23,608 — 23,608 SDG&E: Total long-term debt (4) $ 7,600 $ — $ 7,687 $ — $ 7,687 SoCalGas: Total long-term debt (5) $ 5,459 $ — $ 5,561 $ — $ 5,561 December 31, 2021 Sempra: Long-term note receivable (2) $ 300 $ — $ — $ 327 $ 327 Long-term amounts due from unconsolidated affiliates (1) 640 — 642 — 642 Long-term amounts due to unconsolidated affiliates 287 — 295 — 295 Total long-term debt (3) 20,099 — 22,126 — 22,126 SDG&E: Total long-term debt (4) $ 6,417 $ — $ 7,236 $ — $ 7,236 SoCalGas: Total long-term debt (5) $ 4,759 $ — $ 5,367 $ — $ 5,367 (1) Before allowances for credit losses of $1 at December 31, 2021. Includes $1 and $2 of accrued interest receivable at March 31, 2022 and December 31, 2021, respectively, in Due From Unconsolidated Affiliates – Current. (2) Before allowances for credit losses of $7 and $8 at March 31, 2022 and December 31, 2021, respectively. Excludes unamortized transaction costs of $5 at both March 31, 2022 and December 31, 2021. (3) Before reductions of unamortized discount and debt issuance costs of $299 and $260 at March 31, 2022 and December 31, 2021, respectively, and excluding finance lease obligations of $1,335 at both March 31, 2022 and December 31, 2021. (4) Before reductions of unamortized discount and debt issuance costs of $74 and $61 at March 31, 2022 and December 31, 2021, respectively, and excluding finance lease obligations of $1,270 and $1,274 at March 31, 2022 and December 31, 2021, respectively. (5) Before reductions of unamortized discount and debt issuance costs of $44 and $36 at March 31, 2022 and December 31, 2021, respectively, and excluding finance lease obligations of $65 and $61 at March 31, 2022 and December 31, 2021, respectively. |
SAN ONOFRE NUCLEAR GENERATING_2
SAN ONOFRE NUCLEAR GENERATING STATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 on the Sempra and SDG&E Condensed Consolidated Balance Sheets. We provide additional fair value disclosures for the NDT in Note 9. NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross Gross Estimated March 31, 2022 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 51 $ 1 $ (1) $ 51 Municipal bonds (2) 309 3 (8) 304 Other securities (3) 264 2 (12) 254 Total debt securities 624 6 (21) 609 Equity securities 99 234 (4) 329 Short-term investments, primarily cash equivalents 3 — — 3 Receivables (payables), net 5 — — 5 Total $ 731 $ 240 $ (25) $ 946 December 31, 2021 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 56 $ — $ — $ 56 Municipal bonds 309 13 (1) 321 Other securities 255 7 (2) 260 Total debt securities 620 20 (3) 637 Equity securities 104 262 (2) 364 Short-term investments, primarily cash equivalents 3 — — 3 Receivables (payables), net 8 — — 8 Total $ 735 $ 282 $ (5) $ 1,012 (1) Maturity dates are 2023-2052. (2) Maturity dates are 2022-2056. (3) Maturity dates are 2022-2072. |
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 NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Three months ended March 31, 2022 2021 Proceeds from sales $ 242 $ 288 Gross realized gains 11 21 Gross realized losses (4) (2) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease Payments Received, Lease Income Table | LESSOR INFORMATION ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – SEMPRA (Dollars in millions) Three months ended March 31, 2022 2021 Sales-type leases: Interest income $ 2 $ — Total revenues from sales-type leases (1) $ 2 $ — Operating leases: Fixed lease payments $ 70 $ 53 Variable lease payments 1 — Total revenues from operating leases (1) $ 71 $ 53 Depreciation expense $ 13 $ 10 (1) Included in Revenues: Energy-Related Businesses on the Condensed Consolidated Statements of Operations. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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. SEGMENT INFORMATION (Dollars in millions) Three months ended March 31, 2022 2021 REVENUES SDG&E $ 1,445 $ 1,337 SoCalGas 1,993 1,508 Sempra Infrastructure 424 449 All other — 1 Adjustments and eliminations 2 — Intersegment revenues (1) (44) (36) Total $ 3,820 $ 3,259 DEPRECIATION AND AMORTIZATION SDG&E $ 239 $ 213 SoCalGas 187 173 Sempra Infrastructure 65 54 All other 2 2 Total $ 493 $ 442 INTEREST INCOME SDG&E $ — $ 1 Sempra Infrastructure 21 21 All other 4 — Intercompany eliminations — (3) Total $ 25 $ 19 INTEREST EXPENSE SDG&E $ 106 $ 102 SoCalGas 40 39 Sempra Infrastructure 27 41 All other 70 83 Intercompany eliminations — (6) Total $ 243 $ 259 INCOME TAX EXPENSE (BENEFIT) SDG&E $ 64 $ 45 SoCalGas 84 94 Sempra Infrastructure 91 57 All other 95 (38) Total $ 334 $ 158 EQUITY EARNINGS Equity earnings, before income tax: Sempra Texas Utilities $ 2 $ 1 Sempra Infrastructure 141 134 143 135 Equity earnings, net of income tax: Sempra Texas Utilities 162 136 Sempra Infrastructure 21 47 183 183 Total $ 326 $ 318 (1) Revenues for reportable segments include intersegment revenues of $4, $26, and $14 for the three months ended March 31, 2022 and $2, $25, and $9 for the three months ended March 31, 2021 for SDG&E, SoCalGas, and Sempra Infrastructure, respectively. SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Three months ended March 31, 2022 2021 EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES SDG&E $ 234 $ 212 SoCalGas 334 407 Sempra Texas Utilities 162 135 Sempra Infrastructure 95 202 All other (213) (82) Total $ 612 $ 874 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 552 $ 555 SoCalGas 468 459 Sempra Infrastructure 182 166 All other 2 1 Total $ 1,204 $ 1,181 March 31, December 31, ASSETS SDG&E $ 24,835 $ 24,058 SoCalGas 21,205 20,324 Sempra Texas Utilities 13,218 13,047 Sempra Infrastructure 14,435 14,408 All other 2,430 1,399 Intersegment receivables (1,201) (1,191) Total $ 74,922 $ 72,045 EQUITY METHOD AND OTHER INVESTMENTS Sempra Texas Utilities $ 13,218 $ 13,047 Sempra Infrastructure 1,572 1,425 Total $ 14,790 $ 14,472 |
GENERAL INFORMATION AND OTHER_4
GENERAL INFORMATION AND OTHER FINANCIAL DATA - PRINCIPLES OF CONSOLIDATION (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 4 |
GENERAL INFORMATION AND OTHER_5
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Cash and cash equivalents | $ 2,519 | $ 559 | [1] | ||
Restricted cash, current | 14 | 19 | [2] | ||
Restricted cash, noncurrent | 3 | 3 | [2] | ||
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | $ 2,536 | $ 581 | $ 778 | $ 985 | |
[1] | Derived from audited financial statements. | ||||
[2] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHER_6
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CREDIT LOSSES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Receivables from revenues from contracts with customers | $ 1,754 | $ 1,977 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 136 | $ 138 | |
Provisions for expected credit losses | 48 | 43 | |
Write-offs | (19) | (5) | |
Ending balance | 165 | 176 | |
Allowance for credit losses | 7 | 8 | |
San Diego Gas and Electric Company | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Receivables from revenues from contracts with customers | 778 | 751 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 66 | 69 | |
Provisions for expected credit losses | 21 | 15 | |
Write-offs | (9) | (3) | |
Ending balance | 78 | 81 | |
San Diego Gas and Electric Company | Customers Under California Arrearage Payment Program | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Receivables from revenues from contracts with customers | 63 | ||
Southern California Gas Company | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Receivables from revenues from contracts with customers | 891 | 1,139 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 69 | 68 | |
Provisions for expected credit losses | 26 | 28 | |
Write-offs | (10) | (2) | |
Ending balance | 85 | $ 94 | |
Southern California Gas Company | Customers Under California Arrearage Payment Program | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Receivables from revenues from contracts with customers | 79 | ||
Accounts receivable – trade, net | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Accounts Receivable, Allowance for Credit Loss, Current | 125 | 94 | |
Accounts receivable – trade, net | San Diego Gas and Electric Company | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Accounts Receivable, Allowance for Credit Loss, Current | 55 | 42 | |
Accounts receivable – trade, net | Southern California Gas Company | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Accounts Receivable, Allowance for Credit Loss, Current | 68 | 51 | |
Accounts receivable – other, net | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Receivables from revenues from contracts with customers | 12 | 19 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Accounts Receivable, Allowance for Credit Loss, Current | 38 | 39 | |
Accounts receivable – other, net | San Diego Gas and Electric Company | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Receivables from revenues from contracts with customers | 11 | 9 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Accounts Receivable, Allowance for Credit Loss, Current | 22 | 22 | |
Accounts receivable – other, net | Southern California Gas Company | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Receivables from revenues from contracts with customers | 1 | 10 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Accounts Receivable, Allowance for Credit Loss, Current | 16 | 17 | |
Other long-term assets | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Receivables from revenues from contracts with customers | 42 | 70 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Expected credit losses, noncurrent | 2 | 3 | |
Other long-term assets | KKR | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Expected credit losses, noncurrent | 7 | 8 | |
Other long-term assets | San Diego Gas and Electric Company | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Receivables from revenues from contracts with customers | 22 | 25 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Expected credit losses, noncurrent | 1 | 2 | |
Other long-term assets | Southern California Gas Company | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Receivables from revenues from contracts with customers | 20 | 45 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Expected credit losses, noncurrent | 1 | 1 | |
Due from Unconsolidated Affiliates - Noncurrent | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit losses | 1 | ||
Sempra LNG | Deferred Credits and Other | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit losses | $ 6 | $ 7 |
GENERAL INFORMATION AND OTHER_7
GENERAL INFORMATION AND OTHER FINANCIAL DATA - INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Inventory [Line Items] | |||
Natural gas | $ 129 | $ 164 | |
LNG | 22 | 27 | |
Materials and supplies | 201 | 198 | |
Total | 352 | 389 | [1] |
San Diego Gas and Electric Company | |||
Inventory [Line Items] | |||
Natural gas | 0 | 0 | |
LNG | 0 | 0 | |
Materials and supplies | 123 | 123 | |
Total | 123 | 123 | [1] |
Southern California Gas Company | |||
Inventory [Line Items] | |||
Natural gas | 87 | 114 | |
LNG | 0 | 0 | |
Materials and supplies | 62 | 58 | |
Total | $ 149 | $ 172 | [1] |
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHER_8
GENERAL INFORMATION AND OTHER FINANCIAL DATA - NOTE RECEIVABLE (Details) - KKR - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loan to KKR in exchange for interest-bearing promissory note | $ 300 | ||
Compound interest rate (as a percent) | 5.00% | ||
Other long-term assets | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Receivable with Imputed Interest, Net Amount | $ 304 | $ 297 | |
Other current assets | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Receivable with Imputed Interest, Net Amount | $ 3 |
GENERAL INFORMATION AND OTHER_9
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CAPITALIZED FINANCING COSTS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Capitalized Financing Costs Disclosure [Line Items] | ||
Capitalized interest costs | $ 57 | $ 59 |
San Diego Gas and Electric Company | ||
Capitalized Financing Costs Disclosure [Line Items] | ||
Capitalized interest costs | 28 | 30 |
Southern California Gas Company | ||
Capitalized Financing Costs Disclosure [Line Items] | ||
Capitalized interest costs | $ 18 | $ 16 |
GENERAL INFORMATION AND OTHE_10
GENERAL INFORMATION AND OTHER FINANCIAL DATA - VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | ||
Variable Interest Entities [Line Items] | |||
Property plant and equipment, net | $ 44,602 | $ 43,894 | [1] |
Finance lease obligations | 1,335 | 1,335 | |
Equity method investment | 13,116 | 12,947 | [1] |
Investment in Oncor Holdings | 13,116 | 12,947 | [1] |
Assets | 74,922 | 72,045 | [1] |
Sempra Texas Utilities | Oncor Holdings | |||
Variable Interest Entities [Line Items] | |||
Equity method investment | 13,116 | 12,947 | |
Investment in Oncor Holdings | 13,116 | 12,947 | |
Sempra Infrastructure | Cameron LNG Holdings | |||
Variable Interest Entities [Line Items] | |||
Equity method investment | 623 | 514 | |
Investment in Oncor Holdings | 623 | 514 | |
Sempra Infrastructure | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entities [Line Items] | |||
Maximum exposure under guarantor obligations | 979 | ||
Sempra Infrastructure | Variable Interest Entity, Primary Beneficiary | ECA LNG JV | |||
Variable Interest Entities [Line Items] | |||
Assets | 728 | 632 | |
Liabilities | 528 | 455 | |
San Diego Gas and Electric Company | |||
Variable Interest Entities [Line Items] | |||
Property plant and equipment, net | 20,366 | 20,048 | [1] |
Finance lease obligations | 1,270 | 1,274 | |
Assets | 24,835 | 24,058 | [1] |
San Diego Gas and Electric Company | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entities [Line Items] | |||
Property plant and equipment, net | 1,212 | 1,217 | |
Finance lease obligations | $ 1,212 | $ 1,217 | |
Oncor Electric Delivery Company LLC. | Oncor Holdings | Sempra Texas Utilities | |||
Variable Interest Entities [Line Items] | |||
Ownership interest (as a percent) | 80.25% | ||
Sempra Texas Holdings Corp | Oncor Holdings | Sempra Texas Intermediate Holding Company LLC | |||
Variable Interest Entities [Line Items] | |||
Ownership percentage in consolidated entity | 100.00% | ||
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_11
GENERAL INFORMATION AND OTHER FINANCIAL DATA - PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 41 | $ 37 |
Interest cost | 30 | 28 |
Expected return on assets | (46) | (43) |
Amortization of: | ||
Prior service cost (credit) | 3 | 3 |
Actuarial loss (gain) | 6 | 11 |
Settlement charges | 0 | 7 |
Net periodic benefit cost (credit) | 34 | 43 |
Regulatory adjustments | (27) | (29) |
Total expense recognized | 7 | 14 |
Pension benefits | San Diego Gas and Electric Company | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 10 | 8 |
Interest cost | 7 | 6 |
Expected return on assets | (11) | (12) |
Amortization of: | ||
Actuarial loss (gain) | 0 | 0 |
Net periodic benefit cost (credit) | 6 | 2 |
Regulatory adjustments | (5) | (2) |
Total expense recognized | 1 | 0 |
Pension benefits | Southern California Gas Company | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 28 | 25 |
Interest cost | 20 | 20 |
Expected return on assets | (31) | (28) |
Amortization of: | ||
Prior service cost (credit) | 2 | 2 |
Actuarial loss (gain) | 4 | 9 |
Net periodic benefit cost (credit) | 23 | 28 |
Regulatory adjustments | (22) | (27) |
Total expense recognized | 1 | 1 |
Other postretirement benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 7 | 6 |
Interest cost | 7 | 7 |
Expected return on assets | (16) | (15) |
Amortization of: | ||
Prior service cost (credit) | (1) | (1) |
Actuarial loss (gain) | (4) | (2) |
Settlement charges | 0 | 0 |
Net periodic benefit cost (credit) | (7) | (5) |
Regulatory adjustments | 7 | 5 |
Total expense recognized | 0 | 0 |
Other postretirement benefits | San Diego Gas and Electric Company | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 1 |
Interest cost | 1 | 1 |
Expected return on assets | (2) | (2) |
Amortization of: | ||
Actuarial loss (gain) | (1) | 0 |
Net periodic benefit cost (credit) | 0 | 0 |
Regulatory adjustments | 0 | 0 |
Total expense recognized | 0 | 0 |
Other postretirement benefits | Southern California Gas Company | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 5 | 4 |
Interest cost | 5 | 5 |
Expected return on assets | (13) | (12) |
Amortization of: | ||
Prior service cost (credit) | (1) | (1) |
Actuarial loss (gain) | (3) | (1) |
Net periodic benefit cost (credit) | (7) | (5) |
Regulatory adjustments | 7 | 5 |
Total expense recognized | $ 0 | $ 0 |
GENERAL INFORMATION AND OTHE_12
GENERAL INFORMATION AND OTHER FINANCIAL DATA - RABBI TRUST (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Dedicated assets in support of certain benefit plans | $ 532 | $ 567 | [1] |
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_13
GENERAL INFORMATION AND OTHER FINANCIAL DATA - EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Earnings attributable to common shares for basic EPS | $ 612 | $ 874 | |
Add back dividends for dilutive mandatory convertible preferred stock | 0 | 10 | |
Earnings from continuing operations attributable to common shares for diluted EPS | $ 612 | $ 884 | |
Weighted-average common shares outstanding for basic EPS | 316,353,000 | 300,905,000 | |
Dilutive effect of stock options and RSUs (in shares) | 1,081,000 | 887,000 | |
Dilutive effect of mandatory convertible preferred stock (in shares) | 0 | 6,666,000 | |
Weighted-average common shares outstanding for diluted EPS (in shares) | 317,434,000 | 308,458,000 | |
Earnings per share, basic (dollars per share) | $ 1.93 | $ 2.91 | |
Earnings per share, diluted (in dollars per share) | $ 1.93 | $ 2.87 | |
Vested RSUs included in basic WASO (in shares) | 407,000 | 460,000 | |
Stock options, RSAs and RSUs | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Non-qualified stock options granted (in shares) | 219,898 | ||
Performance-based RSUs | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Equity awards, granted (in shares) | 338,080 | ||
Service-based RSUs | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Equity awards, granted (in shares) | 150,286 | ||
Stock options, RSAs and RSUs | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Antidilutive securities excluded from earnings per share (in shares) | 337,239 | 428,875 |
GENERAL INFORMATION AND OTHE_14
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | [1] | $ 25,981 | |
OCI before reclassifications | 83 | $ 75 | |
Amounts reclassified from AOCI | 6 | 26 | |
Net OCI | 89 | 101 | |
Ending balance | 26,114 | ||
Total accumulated other comprehensive income (loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (318) | (500) | |
Ending balance | (229) | (399) | |
Foreign currency translation adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (79) | (64) | |
OCI before reclassifications | 3 | (5) | |
Amounts reclassified from AOCI | 0 | 0 | |
Net OCI | 3 | (5) | |
Ending balance | (76) | (69) | |
Financial instruments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (156) | (331) | |
OCI before reclassifications | 74 | 73 | |
Amounts reclassified from AOCI | 4 | 19 | |
Net OCI | 78 | 92 | |
Ending balance | (78) | (239) | |
Pension and other postretirement benefits | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (83) | (105) | |
OCI before reclassifications | 6 | 7 | |
Amounts reclassified from AOCI | 2 | 7 | |
Net OCI | 8 | 14 | |
Ending balance | (75) | (91) | |
San Diego Gas and Electric Company | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | [1] | 8,249 | |
Ending balance | 8,483 | ||
San Diego Gas and Electric Company | Total accumulated other comprehensive income (loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (10) | (10) | |
Ending balance | (10) | (10) | |
San Diego Gas and Electric Company | Pension and other postretirement benefits | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (10) | (10) | |
Ending balance | (10) | (10) | |
Southern California Gas Company | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | [1] | 5,442 | |
Amounts reclassified from AOCI | 1 | ||
Net OCI | 1 | ||
Ending balance | 5,777 | ||
Southern California Gas Company | Total accumulated other comprehensive income (loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (31) | (31) | |
Ending balance | (30) | (31) | |
Southern California Gas Company | Financial instruments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (13) | (13) | |
Amounts reclassified from AOCI | 0 | ||
Net OCI | 0 | ||
Ending balance | (13) | (13) | |
Southern California Gas Company | Pension and other postretirement benefits | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (18) | (18) | |
Amounts reclassified from AOCI | 1 | ||
Net OCI | 1 | ||
Ending balance | $ (17) | $ (18) | |
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_15
GENERAL INFORMATION AND OTHER FINANCIAL DATA - RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (243) | $ (259) |
Equity earnings | 326 | 318 |
Energy-related businesses | 383 | 414 |
Other Income, Net | 38 | 35 |
Income before income taxes and equity earnings | 665 | 768 |
Income tax expense | (334) | (158) |
Net income | 657 | 928 |
Earnings Attributable to Noncontrolling Interests | (34) | (33) |
Southern California Gas Company | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | (40) | (39) |
Other Income, Net | 34 | 39 |
Income before income taxes and equity earnings | 418 | 501 |
Income tax expense | (84) | (94) |
Net income | 334 | 407 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Earnings attributable to common shares | 6 | 26 |
Reclassification out of Accumulated Other Comprehensive Income | Southern California Gas Company | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Earnings attributable to common shares | 1 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes and equity earnings | 5 | 29 |
Income tax expense | (1) | (8) |
Net income | 4 | 21 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | Interest rate instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | (1) | 2 |
Equity earnings | 14 | 19 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | Foreign exchange instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Equity earnings | (1) | 1 |
Energy-related businesses | (1) | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | Interest rate and foreign exchange instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Income, Net | (6) | 6 |
Reclassification out of Accumulated Other Comprehensive Income | Gains (Losses) on Cash Flow hedges Attributable to Noncontrolling Interests | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Earnings Attributable to Noncontrolling Interests | 0 | (2) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of actuarial loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Income, Net | 2 | 2 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of actuarial loss | Southern California Gas Company | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Income, Net | 1 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service cost | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Income, Net | 1 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Settlement charges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Income, Net | 0 | 7 |
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement benefits | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes and equity earnings | 3 | 10 |
Income tax expense | (1) | (3) |
Net income | 2 | 7 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Earnings attributable to common shares | $ 4 | $ 19 |
GENERAL INFORMATION AND OTHE_16
GENERAL INFORMATION AND OTHER FINANCIAL DATA - SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST (Details) $ / shares in Units, $ in Millions | Apr. 06, 2022USD ($)$ / sharesshares | Jan. 11, 2022USD ($)$ / sharesshares | Apr. 29, 2022shares | Mar. 31, 2022USD ($)shares | Dec. 21, 2021USD ($) | Oct. 15, 2021$ / shares | Jan. 15, 2021shares |
Subsidiary, Sale of Stock [Line Items] | |||||||
Deferred income tax liability for foreign earnings | $ | $ 120 | ||||||
Series A Preferred Stock | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Shares converted | 17,250,000 | ||||||
Preferred stock, conversion ratio | 0.7989 | ||||||
Common Stock | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Shares converted | 13,781,025 | ||||||
Accelerated share repurchase program, prepaid amount | $ | $ 200 | ||||||
Share repurchase program, number of shares repurchased (in shares) | 1,472,756 | ||||||
Common stock repurchased, average price (in dollars per share) | $ / shares | $ 135.80 | ||||||
Common Stock | Subsequent Event | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Accelerated share repurchase program, prepaid amount | $ | $ 250 | ||||||
Share repurchase program, number of shares repurchased (in shares) | 1,471,957 | ||||||
Common stock repurchased, average price (in dollars per share) | $ / shares | $ 169.84 | ||||||
Abu Dhabi Investment Authority | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Deferred income tax liability for foreign earnings | $ | $ 120 | ||||||
SI Partners | Abu Dhabi Investment Authority | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Sale of noncontrolling interest, aggregate purchase price | $ | $ 1,800 | ||||||
Sale of noncontrolling interest (as a percent) | 10.00% | ||||||
SI Partners | Sempra Energy | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Ownership percentage | 70.00% | ||||||
SI Partners | KKR | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Ownership percentage | 20.00% | ||||||
SI Partners | Abu Dhabi Investment Authority | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Ownership percentage | 10.00% | ||||||
IEnova | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Amount held in trust for purchasing shares (in shares) | 1,212,981 | ||||||
Share price (in pesos per share) | $ / shares | $ 78.97 | ||||||
IEnova | Subsequent Event | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Amount held in trust for purchasing shares (in shares) | 828,988 | ||||||
IEnova | SI Partners | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Ownership percentage | 99.90% |
GENERAL INFORMATION AND OTHE_17
GENERAL INFORMATION AND OTHER FINANCIAL DATA - OTHER NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Noncontrolling Interest [Line Items] | |||
Other noncontrolling interests | $ 1,426 | $ 1,418 | [1] |
IEnova [Member] | Sempra Infrastructure | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage | 20.00% | 20.00% | |
Other noncontrolling interests | $ 1,387 | $ 1,384 | |
IEnova subsidiaries [Member] | Sempra Infrastructure | |||
Noncontrolling Interest [Line Items] | |||
Other noncontrolling interests | $ 39 | $ 34 | |
IEnova subsidiaries [Member] | Sempra Infrastructure | Minimum | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage | 0.10% | 0.10% | |
IEnova subsidiaries [Member] | Sempra Infrastructure | Maximum | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage | 16.60% | 16.60% | |
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_18
GENERAL INFORMATION AND OTHER FINANCIAL DATA - DUE TO DUE FROM AFFILIATES (Details) | Mar. 15, 2022USD ($) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021MXN ($) | |
Related Party Transaction [Line Items] | |||||
Due from unconsolidated affiliates - current | $ 671,000,000 | $ 23,000,000 | [1] | ||
Due from unconsolidated affiliates - noncurrent | 0 | 637,000,000 | [1] | ||
Due to unconsolidated affiliates - noncurrent | (309,000,000) | (287,000,000) | [1] | ||
Maximum borrowing capacity | 9,535,000,000 | ||||
Various affiliates | |||||
Related Party Transaction [Line Items] | |||||
Due from unconsolidated affiliates - current | 45,000,000 | 21,000,000 | |||
San Diego Gas and Electric Company | |||||
Related Party Transaction [Line Items] | |||||
Due from unconsolidated affiliates - current | 1,000,000 | 0 | [2] | ||
Due to unconsolidated affiliates, current | (105,000,000) | (97,000,000) | [1] | ||
Maximum borrowing capacity | 1,500,000,000 | ||||
San Diego Gas and Electric Company | Various affiliates | |||||
Related Party Transaction [Line Items] | |||||
Due from unconsolidated affiliates - current | 1,000,000 | 0 | |||
Due to unconsolidated affiliates, current | (11,000,000) | (9,000,000) | |||
San Diego Gas and Electric Company | Due to/from Sempra Energy | |||||
Related Party Transaction [Line Items] | |||||
Due to unconsolidated affiliates, current | (51,000,000) | (40,000,000) | |||
Income taxes due (to) from Sempra Energy | (41,000,000) | 19,000,000 | |||
San Diego Gas and Electric Company | Due to/from SoCalGas | |||||
Related Party Transaction [Line Items] | |||||
Due to unconsolidated affiliates, current | (43,000,000) | (48,000,000) | |||
Southern California Gas Company | |||||
Related Party Transaction [Line Items] | |||||
Due from unconsolidated affiliates - current | 44,000,000 | 49,000,000 | [1] | ||
Due to unconsolidated affiliates, current | (45,000,000) | (36,000,000) | [3] | ||
Maximum borrowing capacity | 750,000,000 | ||||
Southern California Gas Company | Various affiliates | |||||
Related Party Transaction [Line Items] | |||||
Due from unconsolidated affiliates - current | 1,000,000 | 1,000,000 | |||
Southern California Gas Company | Due to/from Sempra Energy | |||||
Related Party Transaction [Line Items] | |||||
Due to unconsolidated affiliates, current | (45,000,000) | (36,000,000) | |||
Income taxes due (to) from Sempra Energy | 6,000,000 | 6,000,000 | |||
Southern California Gas Company | Due to/from SDG&E | |||||
Related Party Transaction [Line Items] | |||||
Due from unconsolidated affiliates - current | 43,000,000 | 48,000,000 | |||
Sempra Infrastructure | |||||
Related Party Transaction [Line Items] | |||||
Due to unconsolidated affiliates - noncurrent | (309,000,000) | (287,000,000) | |||
Debt amount | $ 625,000,000 | ||||
Sempra Infrastructure | IMG | |||||
Related Party Transaction [Line Items] | |||||
Due from unconsolidated affiliates - current | 626,000,000 | 2,000,000 | |||
Due from unconsolidated affiliates - noncurrent | 0 | 637,000,000 | |||
Due from affiliates, allowance for credit loss | 1,000,000 | ||||
Maximum borrowing capacity | 691,000,000 | $ 14,200,000,000 | |||
Accrued interest receivable | $ 1,000,000 | $ 2,000,000 | |||
Sempra Infrastructure | IMG | Interbank Equilibrium Rate | |||||
Related Party Transaction [Line Items] | |||||
Spread on variable rate (as a percent) | 2.20% | ||||
Sempra Infrastructure | IMG | Secured Overnight Financing Rate | |||||
Related Party Transaction [Line Items] | |||||
Spread on variable rate (as a percent) | 1.80% | ||||
Interest rate on due from affiliate, noncurrent | 2.22% | ||||
Five Point Five Percent Note Due January 2024 | Sempra Infrastructure | TAG Pipeline Norte | |||||
Related Party Transaction [Line Items] | |||||
Stated rate of debt (as a percent) | 5.50% | ||||
Due to unconsolidated affiliates - noncurrent | $ (70,000,000) | $ (69,000,000) | |||
Five Point Five Percent Note Due January 2025 | Sempra Infrastructure | TAG Pipeline Norte | |||||
Related Party Transaction [Line Items] | |||||
Stated rate of debt (as a percent) | 5.50% | ||||
Due to unconsolidated affiliates - noncurrent | $ (22,000,000) | (21,000,000) | |||
Five Point Five Percent Notes Due July 2025 | Sempra Infrastructure | TAG Pipeline Norte | |||||
Related Party Transaction [Line Items] | |||||
Stated rate of debt (as a percent) | 5.50% | ||||
Due to unconsolidated affiliates - noncurrent | $ (20,000,000) | (20,000,000) | |||
Five Point Five Percent Note due January 2026 | Sempra Infrastructure | TAG Pipeline Norte | |||||
Related Party Transaction [Line Items] | |||||
Stated rate of debt (as a percent) | 5.50% | ||||
Due to unconsolidated affiliates - noncurrent | $ (18,000,000) | 0 | |||
Five Point Seven Four Percent Note December 2029 | Sempra Infrastructure | TAG | |||||
Related Party Transaction [Line Items] | |||||
Stated rate of debt (as a percent) | 5.74% | ||||
Due to unconsolidated affiliates - noncurrent | $ (179,000,000) | $ (177,000,000) | |||
[1] | Derived from audited financial statements. | ||||
[2] | Derived from audited financial statements. | ||||
[3] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_19
GENERAL INFORMATION AND OTHER FINANCIAL DATA - AFFILIATES REVENUE AND COST OF SALES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 7 | $ 8 |
Costs of sales to related parties | 0 | 11 |
Interest income | 10 | 15 |
Interest expense | 4 | 4 |
San Diego Gas and Electric Company | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | 4 | 2 |
Costs of sales to related parties | 24 | 28 |
Southern California Gas Company | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | 26 | 25 |
Costs of sales to related parties | $ 0 | $ 3 |
GENERAL INFORMATION AND OTHE_20
GENERAL INFORMATION AND OTHER FINANCIAL DATA - OTHER (EXPENSE) INCOME, NET (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income [Line Items] | ||
Allowance for equity funds used during construction | $ 35 | $ 38 |
Investment (losses) gains, net | (13) | 9 |
Gains (losses) on interest rate and foreign exchange instruments, net | 6 | (30) |
Foreign currency transaction losses, net(2) | (19) | (19) |
Non-service component of net periodic benefit credit | 41 | 29 |
Interest on regulatory balancing accounts, net | 1 | 1 |
Sundry, net | (13) | 7 |
Total | 38 | 35 |
San Diego Gas and Electric Company | ||
Other Income [Line Items] | ||
Allowance for equity funds used during construction | 21 | 23 |
Non-service component of net periodic benefit credit | 11 | 9 |
Interest on regulatory balancing accounts, net | 1 | 1 |
Sundry, net | 1 | 2 |
Total | 34 | 35 |
Southern California Gas Company | ||
Other Income [Line Items] | ||
Allowance for equity funds used during construction | 13 | 12 |
Non-service component of net periodic benefit credit | 32 | 28 |
Sundry, net | (11) | (1) |
Total | 34 | 39 |
IMG | ||
Other Income [Line Items] | ||
Foreign currency transaction losses, net(2) | $ (11) | $ (23) |
GENERAL INFORMATION AND OTHE_21
GENERAL INFORMATION AND OTHER FINANCIAL DATA - INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||
Income tax expense | $ 334 | $ 158 |
Income before income taxes and equity earnings | 665 | 768 |
Equity earnings, before income tax: | 143 | 135 |
Pretax income | $ 808 | $ 903 |
Effective income tax rate (as a percent) | 41.00% | 18.00% |
Deferred income tax liability for foreign earnings | $ 120 | |
San Diego Gas and Electric Company | ||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||
Income tax expense | 64 | $ 45 |
Income before income taxes and equity earnings | $ 298 | $ 257 |
Effective income tax rate (as a percent) | 21.00% | 18.00% |
Southern California Gas Company | ||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||
Income tax expense | $ 84 | $ 94 |
Income before income taxes and equity earnings | 418 | 501 |
Pretax income | $ 418 | $ 501 |
Effective income tax rate (as a percent) | 20.00% | 19.00% |
REVENUES - DISAGGREGATION OF RE
REVENUES - DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 3,689 | $ 3,141 |
Utilities regulatory revenues | 25 | (28) |
Other revenues | 106 | 146 |
Total revenues | 3,820 | 3,259 |
Utilities | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 3,412 | 2,873 |
Energy-related businesses | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 277 | 268 |
Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 2,445 | 2,118 |
Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,244 | 1,023 |
Operating Segments | San Diego Gas and Electric Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,501 | 1,216 |
Utilities regulatory revenues | (56) | 121 |
Other revenues | 0 | 0 |
Total revenues | 1,445 | 1,337 |
Operating Segments | San Diego Gas and Electric Company | Utilities | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,501 | 1,216 |
Operating Segments | San Diego Gas and Electric Company | Energy-related businesses | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments | San Diego Gas and Electric Company | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 330 | 273 |
Operating Segments | San Diego Gas and Electric Company | Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,171 | 943 |
Operating Segments | Southern California Gas Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,912 | 1,657 |
Utilities regulatory revenues | 81 | (149) |
Other revenues | 0 | 0 |
Total revenues | 1,993 | 1,508 |
Operating Segments | Southern California Gas Company | Utilities | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,912 | 1,657 |
Operating Segments | Southern California Gas Company | Energy-related businesses | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments | Southern California Gas Company | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,912 | 1,657 |
Operating Segments | Southern California Gas Company | Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments | Sempra Infrastructure | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 320 | 296 |
Utilities regulatory revenues | 0 | 0 |
Other revenues | 104 | 153 |
Total revenues | 424 | 449 |
Operating Segments | Sempra Infrastructure | Utilities | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 28 | 27 |
Operating Segments | Sempra Infrastructure | Energy-related businesses | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 292 | 269 |
Operating Segments | Sempra Infrastructure | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 229 | 212 |
Operating Segments | Sempra Infrastructure | Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 91 | 84 |
Consolidation, Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (44) | (28) |
Utilities regulatory revenues | 0 | 0 |
Other revenues | 2 | (7) |
Total revenues | (42) | (35) |
Consolidation, Eliminations | Utilities | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (29) | (27) |
Consolidation, Eliminations | Energy-related businesses | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (15) | (1) |
Consolidation, Eliminations | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (26) | (24) |
Consolidation, Eliminations | Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ (18) | $ (4) |
REVENUES - PERFORMANCE OBLIGATI
REVENUES - PERFORMANCE OBLIGATIONS (Details) $ in Millions | Mar. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 6,021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 277 |
Revenues to be recognized, period of recognition | 9 months |
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 | $ 367 |
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 | $ 365 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 362 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 361 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 4,289 |
Revenues to be recognized, period of recognition | |
San Diego Gas and Electric Company | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 82 |
San Diego Gas and Electric Company | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3 |
Revenues to be recognized, period of recognition | 9 months |
San Diego Gas and Electric Company | 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 | $ 4 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company | 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 | $ 4 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 4 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 4 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 63 |
Revenues to be recognized, period of recognition |
REVENUES - CONTRACT LIABILITIES
REVENUES - CONTRACT LIABILITIES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, opening balance | $ (278) | $ (207) |
Revenue from performance obligations satisfied during reporting period | 39 | 25 |
Contract liabilities, closing balance | (239) | (182) |
Other Current Liabilities | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | (78) | |
Deferred Credits and Other | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | (161) | |
San Diego Gas and Electric Company | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, opening balance | (83) | (87) |
Revenue from performance obligations satisfied during reporting period | 1 | 1 |
Contract liabilities, closing balance | (82) | $ (86) |
San Diego Gas and Electric Company | Other Current Liabilities | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | (4) | |
San Diego Gas and Electric Company | Deferred Credits and Other | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | $ (78) |
REVENUES - RECEIVABLES FROM REV
REVENUES - RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | $ 1,754 | $ 1,977 |
Accounts receivable – trade, net | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 1,697 | 1,886 |
Accounts receivable – other, net | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 12 | 19 |
Due from unconsolidated affiliates – current | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 3 | 2 |
Other long-term assets | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 42 | 70 |
San Diego Gas and Electric Company | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 778 | 751 |
San Diego Gas and Electric Company | Accounts receivable – trade, net | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 742 | 715 |
San Diego Gas and Electric Company | Accounts receivable – other, net | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 11 | 9 |
San Diego Gas and Electric Company | Due from unconsolidated affiliates – current | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 3 | 2 |
San Diego Gas and Electric Company | Other long-term assets | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 22 | 25 |
Southern California Gas Company | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 891 | 1,139 |
Southern California Gas Company | Accounts receivable – trade, net | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 870 | 1,084 |
Southern California Gas Company | Accounts receivable – other, net | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 1 | 10 |
Southern California Gas Company | Other long-term assets | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | $ 20 | $ 45 |
REGULATORY MATTERS - REGULATORY
REGULATORY MATTERS - REGULATORY ACCOUNTS (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Total Sempra | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | $ (1,588) | $ (1,479) |
San Diego Gas and Electric Company | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Regulatory balancing accounts - net undercollected, Noncurrent | 426 | 358 |
San Diego Gas and Electric Company | Fixed-price contracts and other derivatives | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (57) | (50) |
San Diego Gas and Electric Company | Deferred income taxes recoverable in rates | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 151 | 125 |
San Diego Gas and Electric Company | Pension and other postretirement benefit plan obligations | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (1) | (7) |
San Diego Gas and Electric Company | Removal obligations | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (2,229) | (2,251) |
San Diego Gas and Electric Company | Environmental costs | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 61 | 62 |
San Diego Gas and Electric Company | Sunrise Powerlink fire mitigation | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 123 | 122 |
San Diego Gas and Electric Company | Commodity – electric | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 122 | 77 |
San Diego Gas and Electric Company | Gas transportation | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 29 | 49 |
San Diego Gas and Electric Company | Safety and reliability | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 73 | 67 |
San Diego Gas and Electric Company | Public purpose programs | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (126) | (107) |
San Diego Gas and Electric Company | Wildfire mitigation plan | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 215 | 178 |
San Diego Gas and Electric Company | Liability insurance premium | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 108 | 110 |
San Diego Gas and Electric Company | Other balancing accounts | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 36 | 207 |
San Diego Gas and Electric Company | Other regulatory assets | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 106 | 119 |
San Diego Gas and Electric Company | Total SDG&E | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (1,389) | (1,299) |
Southern California Gas Company | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Regulatory balancing accounts - net undercollected, Noncurrent | 532 | 410 |
Southern California Gas Company | Deferred income taxes recoverable in rates | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 95 | 44 |
Southern California Gas Company | Pension and other postretirement benefit plan obligations | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 64 | 51 |
Southern California Gas Company | Removal obligations | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (612) | (627) |
Southern California Gas Company | Employee benefit costs | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 31 | 31 |
Southern California Gas Company | Environmental costs | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 34 | 34 |
Southern California Gas Company | Commodity – gas, including transportation | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (87) | (146) |
Southern California Gas Company | Safety and reliability | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 378 | 339 |
Southern California Gas Company | Public purpose programs | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (234) | (183) |
Southern California Gas Company | Liability insurance premium | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 17 | 16 |
Southern California Gas Company | Other balancing accounts | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (109) | 42 |
Southern California Gas Company | Other regulatory assets | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 147 | 142 |
Southern California Gas Company | Total SoCalGas | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (276) | (257) |
Sempra Infrastructure | Deferred income taxes recoverable in rates | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | $ 77 | $ 77 |
REGULATORY MATTERS - COST OF CA
REGULATORY MATTERS - COST OF CAPITAL & FERC (Details) - California Public Utilities Commission - USD ($) | 1 Months Ended | 12 Months Ended | 36 Months Ended | |||
Apr. 30, 2022 | Feb. 28, 2022 | Sep. 30, 2021 | Dec. 31, 2019 | Dec. 31, 2022 | Jan. 01, 2022 | |
Public Utilities, General Disclosures [Line Items] | ||||||
Variable rate (as a percent) | 1.00% | |||||
San Diego Gas and Electric Company | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
CCM benchmark rate (as a percent) | 4.498% | |||||
Percentage below CCM benchmark rate | 1.17% | |||||
Authorized ROE (as a percent) | 10.20% | 9.62% | ||||
San Diego Gas and Electric Company | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Authorized weighting (as a percent) | 100.00% | |||||
Weighted return on rate base (as a percent) | 7.48% | |||||
San Diego Gas and Electric Company | Forecast | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Authorized weighting (as a percent) | 100.00% | |||||
Weighted return on rate base (as a percent) | 7.55% | |||||
San Diego Gas and Electric Company | Authorized Weighting | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved debt capital structure (as a percent) | 46.00% | |||||
San Diego Gas and Electric Company | Authorized Weighting | Common Equity | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 54.00% | |||||
San Diego Gas and Electric Company | Authorized Weighting | Preferred Equity | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 0.00% | |||||
San Diego Gas and Electric Company | Authorized Weighting | Forecast | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved debt capital structure (as a percent) | 45.25% | |||||
San Diego Gas and Electric Company | Authorized Weighting | Forecast | Common Equity | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 52.00% | |||||
San Diego Gas and Electric Company | Authorized Weighting | Forecast | Preferred Equity | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 2.75% | |||||
San Diego Gas and Electric Company | Return on Rate Base | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved debt capital structure (as a percent) | 3.87% | |||||
San Diego Gas and Electric Company | Return on Rate Base | Common Equity | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 10.55% | |||||
San Diego Gas and Electric Company | Return on Rate Base | Preferred Equity | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 0.00% | |||||
San Diego Gas and Electric Company | Return on Rate Base | Forecast | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved debt capital structure (as a percent) | 4.59% | |||||
San Diego Gas and Electric Company | Return on Rate Base | Forecast | Common Equity | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 10.20% | |||||
San Diego Gas and Electric Company | Return on Rate Base | Forecast | Preferred Equity | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 6.22% | |||||
San Diego Gas and Electric Company | Weighted Return on Rate Base | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved debt capital structure (as a percent) | 1.78% | |||||
San Diego Gas and Electric Company | Weighted Return on Rate Base | Common Equity | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 5.70% | |||||
San Diego Gas and Electric Company | Weighted Return on Rate Base | Preferred Equity | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 0.00% | |||||
San Diego Gas and Electric Company | Weighted Return on Rate Base | Forecast | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved debt capital structure (as a percent) | 2.08% | |||||
San Diego Gas and Electric Company | Weighted Return on Rate Base | Forecast | Common Equity | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 5.30% | |||||
San Diego Gas and Electric Company | Weighted Return on Rate Base | Forecast | Preferred Equity | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 0.17% | |||||
Southern California Gas Company | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
CCM benchmark rate (as a percent) | 4.029% | |||||
Southern California Gas Company | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Authorized weighting (as a percent) | 100.00% | |||||
Weighted return on rate base (as a percent) | 7.60% | |||||
Southern California Gas Company | Forecast | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Authorized weighting (as a percent) | 100.00% | |||||
Weighted return on rate base (as a percent) | 7.30% | |||||
Southern California Gas Company | Energy Efficiency Program Inquiry | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Equity losses on investment | $ 10,000,000 | |||||
Southern California Gas Company | Energy Efficiency and Advocacy | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Equity losses on investment | $ 150,000 | |||||
Southern California Gas Company | Authorized Weighting | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved debt capital structure (as a percent) | 45.60% | |||||
Southern California Gas Company | Authorized Weighting | Common Equity | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 54.00% | |||||
Southern California Gas Company | Authorized Weighting | Preferred Equity | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 0.40% | |||||
Southern California Gas Company | Authorized Weighting | Forecast | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved debt capital structure (as a percent) | 45.60% | |||||
Southern California Gas Company | Authorized Weighting | Forecast | Common Equity | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 52.00% | |||||
Southern California Gas Company | Authorized Weighting | Forecast | Preferred Equity | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 2.40% | |||||
Southern California Gas Company | Return on Rate Base | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved debt capital structure (as a percent) | 3.89% | |||||
Southern California Gas Company | Return on Rate Base | Common Equity | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 10.75% | |||||
Southern California Gas Company | Return on Rate Base | Preferred Equity | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 6.00% | |||||
Southern California Gas Company | Return on Rate Base | Forecast | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved debt capital structure (as a percent) | 4.23% | |||||
Southern California Gas Company | Return on Rate Base | Forecast | Common Equity | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 10.05% | |||||
Southern California Gas Company | Return on Rate Base | Forecast | Preferred Equity | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 6.00% | |||||
Southern California Gas Company | Weighted Return on Rate Base | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved debt capital structure (as a percent) | 1.77% | |||||
Southern California Gas Company | Weighted Return on Rate Base | Common Equity | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 5.81% | |||||
Southern California Gas Company | Weighted Return on Rate Base | Preferred Equity | Subsequent Event | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 0.02% | |||||
Southern California Gas Company | Weighted Return on Rate Base | Forecast | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved debt capital structure (as a percent) | 1.93% | |||||
Southern California Gas Company | Weighted Return on Rate Base | Forecast | Common Equity | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 5.23% | |||||
Southern California Gas Company | Weighted Return on Rate Base | Forecast | Preferred Equity | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity (as a percent) | 0.14% |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - ACQUISITION ACTIVITY (Details) - Saavi Energia $ in Millions | Mar. 19, 2021USD ($)MW | Mar. 18, 2021 |
Saavi Energia Asset Acquisition | Sempra Infrastructure | ||
Business Acquisition [Line Items] | ||
Purchase price | $ 65 | |
Cash acquired | 14 | |
Debt assumed | 277 | |
Related party note payable assumed | $ 94 | |
Subsequent acquisition, percentage | 100.00% | |
Equity interest in acquiree, fair value | $ 34 | |
Assets acquired | 458 | |
Liabilities assumed | $ 345 | |
Power generation facility, nameplate capacity (in MW) | MW | 155 | |
Intangible assets acquired | $ 190 | |
Intangible assets acquired, useful life | 14 years | |
Second power generation facility, nameplate capacity (in MW) | MW | 108 | |
ESJ | ||
Business Acquisition [Line Items] | ||
Ownership percentage | 50.00% | |
ESJ | Sempra Infrastructure | ||
Business Acquisition [Line Items] | ||
Ownership percentage | 50.00% |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES - NARRATIVE (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |||||
Jun. 30, 2021USD ($) | Jul. 31, 2020USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Jun. 29, 2021bank | Mar. 19, 2021 | Mar. 18, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Distributions from investments | $ 0 | $ 4 | |||||
Charge to equity earnings | (326) | (318) | |||||
Distributions from investments | 204 | 208 | |||||
Sempra Texas Utilities | Oncor Holdings | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Contribution | 85 | 50 | |||||
Sempra Infrastructure | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Guarantees, carrying value | 12 | ||||||
Sempra Infrastructure | Cameron LNG JV | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Distributions from investments | $ 119 | 131 | |||||
Corporate Joint Venture | Sempra Infrastructure | Cameron LNG JV | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Proceeds from related party debt | $ 1,500 | ||||||
Liability cap (as a percent) | 130.00% | ||||||
Liability cap, amount | $ 979 | ||||||
Corporate Joint Venture | Sempra Infrastructure | Cameron LNG JV | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Distributions from investments | 753 | ||||||
Proceeds from related party debt | $ 753 | ||||||
Number of banks | bank | 8 | ||||||
Oncor Holdings | Sempra Texas Utilities | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Distributions from investments | $ 85 | 77 | |||||
ESJ | IEnova | Sempra Infrastructure | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Acquired percentage interest | 50.00% | ||||||
Oncor Holdings | Sempra Texas Holdings Corp | Sempra Texas Intermediate Holding Company LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage in consolidated entity | 100.00% | ||||||
Oncor Electric Delivery Company LLC. | Oncor Holdings | Sempra Texas Utilities | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Acquired percentage interest | 80.25% | ||||||
Cameron LNG JV | Sempra Infrastructure | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage in consolidated entity | 50.20% | ||||||
ESJ | Sempra Infrastructure | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Distributions from investments | $ 4 | ||||||
ESJ | ESJ | IEnova | Sempra Infrastructure | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 50.00% | ||||||
Other current assets | Sempra Infrastructure | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Guarantees, carrying value | $ 7 | ||||||
Other long-term assets | Sempra Infrastructure | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Guarantees, carrying value | 5 | ||||||
Promissory Note for SDSRA Distribution | Corporate Joint Venture | Sempra Infrastructure | Cameron LNG JV | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Distributions from investments | $ 165 | ||||||
Promissory Note for SDSRA Distribution | Other Current Liabilities | Corporate Joint Venture | Sempra Infrastructure | Cameron LNG JV | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Guarantees, carrying value | $ 21 | ||||||
Promissory Note for SDSRA Distribution | Deferred Credits and Other | Corporate Joint Venture | Sempra Infrastructure | Cameron LNG JV | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Senior note, liability | $ 22 |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED ENTITIES - SUMMARIZED FINANCIAL INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Net income (loss) | $ 657 | $ 928 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Oncor Holdings | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating revenues | 1,249 | 1,139 |
Operating expenses | (897) | (829) |
Operating income | 352 | 310 |
Interest expense | (108) | (102) |
Income tax expense | (42) | (36) |
Net income (loss) | 191 | 165 |
Noncontrolling interest held by Texas Transmission Investment LLC | (38) | (33) |
Earnings attributable to Sempra Energy | $ 153 | $ 132 |
DEBT AND CREDIT FACILITIES - LI
DEBT AND CREDIT FACILITIES - LINES OF CREDIT (Details) | Mar. 31, 2022USD ($) | Feb. 28, 2022USD ($) | Nov. 30, 2021 |
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 9,535,000,000 | ||
Amount outstanding | (265,000,000) | ||
Available unused credit | $ 7,766,000,000 | ||
Maximum ratio of indebtedness to total capitalization (as a percent) | 65.00% | ||
Letters of Credit Outstanding, Amount | $ 682,000,000 | ||
Sempra U.S. Businesses | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 9,500,000,000 | ||
Sempra Energy | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 3,185,000,000 | ||
Amount outstanding | 0 | ||
Available unused credit | 1,681,000,000 | ||
Sempra Global | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 1,250,000,000 | ||
Amount outstanding | 0 | ||
Available unused credit | 1,250,000,000 | ||
San Diego Gas and Electric Company | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 1,500,000,000 | ||
Amount outstanding | 0 | ||
Available unused credit | $ 1,500,000,000 | ||
Maximum ratio of indebtedness to total capitalization (as a percent) | 65.00% | ||
Southern California Gas Company | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 750,000,000 | ||
Amount outstanding | 0 | ||
Available unused credit | $ 750,000,000 | ||
Maximum ratio of indebtedness to total capitalization (as a percent) | 65.00% | ||
SI Partners | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Amount outstanding | 0 | ||
Available unused credit | 1,000,000,000 | ||
Debt covenant, ratio of adjusted net indebtedness to earnings | 5.25 | ||
IEnova | IEnova Committed Line Of Credit Due 2023 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 350,000,000 | ||
Amount outstanding | (265,000,000) | ||
Available unused credit | 85,000,000 | ||
IEnova | IEnova Committed Line Of Credit Due 2024 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 1,500,000,000 | ||
Amount outstanding | 0 | ||
Available unused credit | 1,500,000,000 | ||
Commercial Paper | |||
Line of Credit Facility [Line Items] | |||
Commercial paper outstanding | (1,504,000,000) | ||
Commercial Paper | Sempra Energy | |||
Line of Credit Facility [Line Items] | |||
Commercial paper outstanding | (1,504,000,000) | ||
Commercial Paper | Sempra Global | |||
Line of Credit Facility [Line Items] | |||
Commercial paper outstanding | 0 | ||
Commercial Paper | San Diego Gas and Electric Company | |||
Line of Credit Facility [Line Items] | |||
Commercial paper outstanding | 0 | ||
Commercial Paper | Southern California Gas Company | |||
Line of Credit Facility [Line Items] | |||
Commercial paper outstanding | 0 | ||
Commercial Paper | SI Partners | |||
Line of Credit Facility [Line Items] | |||
Commercial paper outstanding | 0 | ||
Commercial Paper | IEnova | IEnova Committed Line Of Credit Due 2023 | |||
Line of Credit Facility [Line Items] | |||
Commercial paper outstanding | 0 | ||
Commercial Paper | IEnova | IEnova Committed Line Of Credit Due 2024 | |||
Line of Credit Facility [Line Items] | |||
Commercial paper outstanding | 0 | ||
Foreign Unsecured Line of Credit | Sempra Infrastructure | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 570,000,000 | ||
Amount outstanding | (414,000,000) | ||
Available unused credit | 156,000,000 | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Outstanding, Amount | 682,000,000 | ||
Letter of Credit | San Diego Gas and Electric Company | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Outstanding, Amount | 15,000,000 | ||
Letter of Credit | Southern California Gas Company | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Outstanding, Amount | 15,000,000 | ||
Letter of Credit | Sempra Infrastructure | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Outstanding, Amount | 473,000,000 | ||
Letter of Credit | Parent and Other | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Outstanding, Amount | 179,000,000 | ||
Foreign Uncommitted Revolving Credit Facility September 2022 | Foreign Line of Credit | Sempra Infrastructure | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 250,000,000 | ||
Amount outstanding | (250,000,000) | ||
Available unused credit | 0 | ||
Foreign Uncommitted Revolving Credit Facility Due August 2023 | Foreign Line of Credit | Sempra LNG | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 200,000,000 | $ 100,000,000 | |
Amount outstanding | (64,000,000) | ||
Available unused credit | 136,000,000 | ||
Foreign Uncommitted Revolving Credit Facility Due October 2023 | Foreign Line of Credit | Sempra Infrastructure | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 100,000,000 | ||
Amount outstanding | (100,000,000) | ||
Available unused credit | 0 | ||
Foreign Uncommitted Revolving Credit Facility Due October 2023-2 | Foreign Line of Credit | Sempra Infrastructure | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 20,000,000 | ||
Amount outstanding | 0 | ||
Available unused credit | $ 20,000,000 |
DEBT AND CREDIT FACILITIES - WE
DEBT AND CREDIT FACILITIES - WEIGHTED-AVERAGE INTEREST RATES AND INTEREST RATE SWAPS (Details) | Mar. 31, 2022 | Dec. 31, 2021 |
Sempra | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on total short-term debt outstanding | 1.14% | 0.60% |
San Diego Gas and Electric Company | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on total short-term debt outstanding | 0.00% | 0.65% |
Southern California Gas Company | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on total short-term debt outstanding | 0.00% | 0.21% |
DEBT AND CREDIT FACILITIES - LO
DEBT AND CREDIT FACILITIES - LONG-TERM DEBT (Details) - USD ($) | Jan. 11, 2022 | Mar. 31, 2022 | Feb. 28, 2022 | Dec. 31, 2020 | May 18, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 9,535,000,000 | $ 9,535,000,000 | |||||
Sempra Energy | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 3,185,000,000 | 3,185,000,000 | |||||
Sempra Energy | Three Point Three Percent Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt amount | $ 750,000,000 | $ 750,000,000 | |||||
Stated rate of debt (as a percent) | 3.30% | 3.30% | |||||
Proceeds from debt issuance | $ 745,000,000 | ||||||
Unamortized debt issuance costs | 5,000,000 | $ 5,000,000 | |||||
Sempra Energy | Three Point Seven Zero Percent Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt amount | $ 500,000,000 | $ 500,000,000 | |||||
Stated rate of debt (as a percent) | 3.70% | 3.70% | |||||
Proceeds from debt issuance | $ 494,000,000 | ||||||
Unamortized debt issuance costs | 6,000,000 | $ 6,000,000 | |||||
San Diego Gas and Electric Company | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 1,500,000,000 | 1,500,000,000 | |||||
San Diego Gas and Electric Company | Term Loan Due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Debt amount | $ 400,000,000 | ||||||
Proceeds from debt issuance | 200,000,000 | ||||||
Term of debt instrument | 2 years | ||||||
Spread on variable rate (as a percent) | 0.625% | ||||||
San Diego Gas and Electric Company | Term Loan Due 2024 | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Maximum Borrowing Amount | $ 400,000,000 | ||||||
San Diego Gas and Electric Company | Three Point Zero Percent First Mortgage Bonds | |||||||
Debt Instrument [Line Items] | |||||||
Debt amount | $ 500,000,000 | $ 500,000,000 | |||||
Stated rate of debt (as a percent) | 3.00% | 3.00% | |||||
Proceeds from debt issuance | $ 494,000,000 | ||||||
Unamortized debt issuance costs | 6,000,000 | $ 6,000,000 | |||||
San Diego Gas and Electric Company | Three Point Seven Zero Percent First Mortgage Bonds | |||||||
Debt Instrument [Line Items] | |||||||
Debt amount | $ 500,000,000 | $ 500,000,000 | |||||
Stated rate of debt (as a percent) | 3.70% | 3.70% | |||||
Proceeds from debt issuance | $ 492,000,000 | ||||||
Unamortized debt issuance costs | 8,000,000 | $ 8,000,000 | |||||
Southern California Gas Company | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 750,000,000 | 750,000,000 | |||||
Southern California Gas Company | Two Point Nine Five Percent Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt amount | $ 700,000,000 | $ 700,000,000 | |||||
Stated rate of debt (as a percent) | 2.95% | 2.95% | |||||
Proceeds from debt issuance | $ 691,000,000 | ||||||
Unamortized debt issuance costs | 9,000,000 | $ 9,000,000 | |||||
SI Partners | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | |||||
SI Partners | Senior Notes 3.25% Due 2032 | |||||||
Debt Instrument [Line Items] | |||||||
Debt amount | $ 400,000,000 | ||||||
Stated rate of debt (as a percent) | 3.25% | ||||||
Proceeds from debt issuance | $ 390,000,000 | ||||||
Unamortized debt issuance costs | $ 10,000,000 | ||||||
Debt issued as a percentage of principal | 98.903% | ||||||
Sempra LNG | ECA LNG JV | |||||||
Debt Instrument [Line Items] | |||||||
Ownership percentage in consolidated entity | 83.40% | ||||||
Sempra LNG | Loan Agreement To Finance Natural Gas Liquefaction Export Facility | |||||||
Debt Instrument [Line Items] | |||||||
Term of debt instrument | 5 years | ||||||
Maximum borrowing capacity | $ 1,600,000,000 | ||||||
Weighted average interest rate (as a percent) | 3.71% | 3.71% | 2.93% | ||||
Subsidiary of TOTAL SE | ECA LNG JV | |||||||
Debt Instrument [Line Items] | |||||||
Ownership percentage in consolidated entity | 16.60% | ||||||
Sempra Infrastructure | Other Long-Term Debt, Variable Rate Loan Due December 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Debt outstanding | $ 392,000,000 | $ 392,000,000 | $ 341,000,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE COMMODITY VOLUMES (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022MMBTUMWh | Dec. 31, 2021MMBTUMWh | |
Natural gas | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 162 | |
Natural gas | Long | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 184 | |
Electricity | Long | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MWh | 1 | 1 |
Congestion revenue rights | Long | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MWh | 43 | 45 |
SDG&E | Natural gas | Long | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 5 | 7 |
SDG&E | Electricity | Long | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MWh | 1 | 1 |
SDG&E | Congestion revenue rights | Long | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MWh | 43 | 45 |
SoCalGas | Natural gas | Long | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 143 | 201 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE NOTIONALS (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Interest rate and foreign exchange instruments | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 306 | $ 306 |
Foreign Exchange Instruments | ||
Derivative [Line Items] | ||
Notional amount of derivative | 87 | 106 |
Cash Flow Hedging | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 451 | $ 462 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE INSTRUMENTS ON THE CONDENSED BALANCE SHEET (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Other current assets | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | $ 36 | $ 74 |
Additional cash collateral for commodity contracts not subject to rate recovery | 41 | 58 |
Additional cash collateral for commodity contracts subject to rate recovery | 37 | 46 |
Total | 114 | 178 |
Other long-term assets | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 68 | 62 |
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 | 68 | 62 |
Other Current Liabilities | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (152) | (87) |
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 | (152) | (87) |
Deferred credits and other | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (6) | (134) |
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 | (6) | (134) |
Derivatives designated as hedging instruments: | Other current assets | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | 0 | 0 |
Foreign exchange instruments | 0 | 1 |
Interest rate and foreign exchange instruments | 0 | 0 |
Derivatives designated as hedging instruments: | Other long-term assets | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | 21 | 6 |
Foreign exchange instruments | 0 | 1 |
Interest rate and foreign exchange instruments | 0 | 0 |
Derivatives designated as hedging instruments: | Other Current Liabilities | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | (1) | (6) |
Foreign exchange instruments | (2) | (1) |
Interest rate and foreign exchange instruments | (121) | (1) |
Derivatives designated as hedging instruments: | Deferred credits and other | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | 0 | (2) |
Foreign exchange instruments | 0 | 0 |
Interest rate and foreign exchange instruments | 0 | (130) |
Derivatives not designated as hedging instruments: | Other current assets | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts not subject to rate recovery | 174 | 136 |
Associated offsetting commodity contracts | (169) | (93) |
Commodity contracts subject to rate recovery | 39 | 38 |
Associated offsetting commodity contracts | (8) | (8) |
Derivatives not designated as hedging instruments: | Other long-term assets | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts not subject to rate recovery | 38 | 11 |
Associated offsetting commodity contracts | (36) | (8) |
Commodity contracts subject to rate recovery | 45 | 52 |
Associated offsetting commodity contracts | 0 | 0 |
Derivatives not designated as hedging instruments: | Other Current Liabilities | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts not subject to rate recovery | (186) | (122) |
Associated offsetting commodity contracts | 169 | 93 |
Commodity contracts subject to rate recovery | (19) | (58) |
Associated offsetting commodity contracts | 8 | 8 |
Derivatives not designated as hedging instruments: | Deferred credits and other | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts not subject to rate recovery | (42) | (10) |
Associated offsetting commodity contracts | 36 | 8 |
Commodity contracts subject to rate recovery | 0 | 0 |
Associated offsetting commodity contracts | 0 | 0 |
San Diego Gas and Electric Company | Other current assets | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 31 | 29 |
Additional cash collateral for commodity contracts subject to rate recovery | 35 | 28 |
Total | 66 | 57 |
San Diego Gas and Electric Company | Other long-term assets | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 45 | 52 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 45 | 52 |
San Diego Gas and Electric Company | Other Current Liabilities | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (3) | (15) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (3) | (15) |
San Diego Gas and Electric Company | Deferred credits and other | ||
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 |
San Diego Gas and Electric Company | Derivatives not designated as hedging instruments: | Other current assets | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 39 | 34 |
Associated offsetting commodity contracts | (8) | (5) |
San Diego Gas and Electric Company | Derivatives not designated as hedging instruments: | Other long-term assets | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 45 | 52 |
Associated offsetting commodity contracts | 0 | 0 |
San Diego Gas and Electric Company | Derivatives not designated as hedging instruments: | Other Current Liabilities | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (11) | (20) |
Associated offsetting commodity contracts | 8 | 5 |
San Diego Gas and Electric Company | Derivatives not designated as hedging instruments: | Deferred credits and other | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 0 | 0 |
Associated offsetting commodity contracts | 0 | 0 |
Southern California Gas Company | Other current assets | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 0 | 1 |
Additional cash collateral for commodity contracts subject to rate recovery | 2 | 18 |
Total | 2 | 19 |
Southern California Gas Company | Other long-term assets | ||
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 | Other Current Liabilities | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (8) | (35) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (8) | (35) |
Southern California Gas Company | Deferred credits and other | ||
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 | Derivatives not designated as hedging instruments: | Other current assets | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 0 | 4 |
Associated offsetting commodity contracts | (3) | |
Southern California Gas Company | Derivatives not designated as hedging instruments: | Other long-term assets | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 0 | 0 |
Associated offsetting commodity contracts | 0 | |
Southern California Gas Company | Derivatives not designated as hedging instruments: | Other Current Liabilities | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (8) | (38) |
Associated offsetting commodity contracts | 3 | |
Southern California Gas Company | Derivatives not designated as hedging instruments: | Deferred credits and other | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | $ 0 | 0 |
Associated offsetting commodity contracts | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE IMPACT ON INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Pretax gain (loss) reclassified from AOCI into earnings | $ 98 | $ 107 |
Pretax (loss) gain on derivatives recognized in earnings | 6 | (30) |
Derivatives designated as hedging instruments: | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Pretax gain (loss) recognized in OCI | 120 | 109 |
Pretax gain (loss) reclassified from AOCI into earnings | (5) | (29) |
Derivatives designated as hedging instruments: | Interest Expense | Cash Flow Hedging | Interest Rate Contract | ||
Derivative [Line Items] | ||
Pretax gain (loss) recognized in OCI | 22 | 26 |
Pretax gain (loss) reclassified from AOCI into earnings | 1 | (2) |
Derivatives designated as hedging instruments: | Equity Earnings | Cash Flow Hedging | Interest Rate Contract | ||
Derivative [Line Items] | ||
Pretax gain (loss) recognized in OCI | 94 | 83 |
Pretax gain (loss) reclassified from AOCI into earnings | (14) | (19) |
Derivatives designated as hedging instruments: | Equity Earnings | Cash Flow Hedging | Foreign Exchange Instruments | ||
Derivative [Line Items] | ||
Pretax gain (loss) recognized in OCI | (2) | 3 |
Pretax gain (loss) reclassified from AOCI into earnings | 1 | (1) |
Derivatives designated as hedging instruments: | Revenues: Energy- Related Businesses | Cash Flow Hedging | Foreign Exchange Instruments | ||
Derivative [Line Items] | ||
Pretax gain (loss) recognized in OCI | (3) | 3 |
Pretax gain (loss) reclassified from AOCI into earnings | 1 | (1) |
Derivatives designated as hedging instruments: | Other Income, Net | Cash Flow Hedging | Interest rate and foreign exchange instruments | ||
Derivative [Line Items] | ||
Pretax gain (loss) recognized in OCI | 9 | (6) |
Pretax gain (loss) reclassified from AOCI into earnings | 6 | (6) |
Derivatives not designated as hedging instruments: | ||
Derivative [Line Items] | ||
Pretax (loss) gain on derivatives recognized in earnings | (59) | (68) |
Derivatives not designated as hedging instruments: | Revenues: Energy- Related Businesses | Commodity contracts not subject to rate recovery | ||
Derivative [Line Items] | ||
Pretax (loss) gain on derivatives recognized in earnings | (77) | (48) |
Derivatives not designated as hedging instruments: | Other Income, Net | Foreign Exchange Instruments | ||
Derivative [Line Items] | ||
Pretax (loss) gain on derivatives recognized in earnings | 0 | (24) |
Derivatives not designated as hedging instruments: | Cost of Electric Fuel and Purchased Power | Commodity contracts subject to rate recovery | ||
Derivative [Line Items] | ||
Pretax (loss) gain on derivatives recognized in earnings | 18 | 2 |
Derivatives not designated as hedging instruments: | Cost of Natural Gas | Commodity contracts subject to rate recovery | ||
Derivative [Line Items] | ||
Pretax (loss) gain on derivatives recognized in earnings | 0 | 2 |
San Diego Gas and Electric Company | Derivatives not designated as hedging instruments: | Cost of Electric Fuel and Purchased Power | Commodity contracts subject to rate recovery | ||
Derivative [Line Items] | ||
Pretax (loss) gain on derivatives recognized in earnings | 18 | 2 |
Southern California Gas Company | Derivatives not designated as hedging instruments: | Cost of Natural Gas | Commodity contracts subject to rate recovery | ||
Derivative [Line Items] | ||
Pretax (loss) gain on derivatives recognized in earnings | $ 0 | $ 2 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES NARRATIVE (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Derivative [Line Items] | |
Cash flow hedge gain (loss) to be reclassified | $ (22) |
Cash flow hedge gain (loss) to be reclassified, NCI | $ 6 |
Term of interest rate cash flow hedge | 13 years |
Southern California Gas Company | |
Derivative [Line Items] | |
Cash flow hedge gain (loss) to be reclassified | $ (1) |
Equity Method Investee | |
Derivative [Line Items] | |
Term of interest rate cash flow hedge | 18 years |
DERIVATIVE FINANCIAL INSTRUME_8
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE INSTRUMENTS WITH CONTINGENT FEATURES (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative fair value | $ 11 | $ 88 |
Collateral | 11 | |
Southern California Gas Company | ||
Derivative [Line Items] | ||
Derivative fair value | 8 | $ 36 |
Collateral | $ 8 |
FAIR VALUE MEASUREMENTS - RECUR
FAIR VALUE MEASUREMENTS - RECURRING FAIR VALUE MEASURES (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | $ 941 | $ 1,004 |
Short-term investments held in Rabbi Trust | 47 | 81 |
Support Agreement, net of related guarantee fees | 12 | 7 |
Total | 1,182 | 1,332 |
Total | 158 | 221 |
Short-term investments, primarily cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 3 | 3 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 329 | 364 |
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 51 | 56 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 304 | 321 |
Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 254 | 260 |
Total debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 609 | 637 |
Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 21 | 6 |
Derivative liabilities | 1 | 8 |
Commodity contracts not subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7 | 46 |
Effect of netting and allocation of collateral | 41 | 58 |
Derivative liabilities | 23 | 31 |
Commodity contracts subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 76 | 82 |
Effect of netting and allocation of collateral | 37 | 46 |
Derivative liabilities | 11 | 50 |
Foreign exchange instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | |
Derivative liabilities | 2 | 1 |
Interest rate and foreign exchange instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 121 | 131 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 375 | 419 |
Short-term investments held in Rabbi Trust | 47 | 81 |
Support Agreement, net of related guarantee fees | 0 | 0 |
Total | 509 | 601 |
Total | 0 | 0 |
Level 1 | Short-term investments, primarily cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 12 | 13 |
Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 324 | 358 |
Level 1 | Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 39 | 48 |
Level 1 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
Level 1 | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
Level 1 | Total debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 39 | 48 |
Level 1 | Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 1 | Commodity contracts not subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 41 | 58 |
Derivative liabilities | 0 | 0 |
Level 1 | Commodity contracts subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 15 | 12 |
Effect of netting and allocation of collateral | 31 | 31 |
Derivative liabilities | 0 | 0 |
Level 1 | Foreign exchange instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | 0 |
Level 1 | Interest rate and foreign exchange instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 566 | 585 |
Short-term investments held in Rabbi Trust | 0 | 0 |
Support Agreement, net of related guarantee fees | 0 | 0 |
Total | 594 | 649 |
Total | 155 | 206 |
Level 2 | Short-term investments, primarily cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | (9) | (10) |
Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 5 | 6 |
Level 2 | Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 12 | 8 |
Level 2 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 304 | 321 |
Level 2 | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 254 | 260 |
Level 2 | Total debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 570 | 589 |
Level 2 | Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 21 | 6 |
Derivative liabilities | 1 | 8 |
Level 2 | Commodity contracts not subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7 | 46 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 23 | 31 |
Level 2 | Commodity contracts subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 1 |
Effect of netting and allocation of collateral | 0 | 9 |
Derivative liabilities | 8 | 35 |
Level 2 | Foreign exchange instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | |
Derivative liabilities | 2 | 1 |
Level 2 | Interest rate and foreign exchange instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 121 | 131 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
Short-term investments held in Rabbi Trust | 0 | 0 |
Support Agreement, net of related guarantee fees | 12 | 7 |
Total | 79 | 82 |
Total | 3 | 15 |
Level 3 | Short-term investments, primarily cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
Level 3 | Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
Level 3 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
Level 3 | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
Level 3 | Total debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
Level 3 | Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 3 | Commodity contracts not subject to rate recovery | ||
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 |
Level 3 | Commodity contracts subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 61 | 69 |
Effect of netting and allocation of collateral | 6 | 6 |
Derivative liabilities | 3 | 15 |
Level 3 | Foreign exchange instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | 0 |
Level 3 | Interest rate and foreign exchange instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
San Diego Gas and Electric Company | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 941 | 1,004 |
Total | 1,052 | 1,113 |
Total | 3 | 15 |
San Diego Gas and Electric Company | Short-term investments, primarily cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 3 | 3 |
San Diego Gas and Electric Company | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 329 | 364 |
San Diego Gas and Electric Company | Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 51 | 56 |
San Diego Gas and Electric Company | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 304 | 321 |
San Diego Gas and Electric Company | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 254 | 260 |
San Diego Gas and Electric Company | Total debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 609 | 637 |
San Diego Gas and Electric Company | Commodity contracts subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 76 | 81 |
Effect of netting and allocation of collateral | 35 | 28 |
Derivative liabilities | 3 | 15 |
San Diego Gas and Electric Company | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 375 | 419 |
Total | 419 | 453 |
Total | 0 | 0 |
San Diego Gas and Electric Company | Level 1 | Short-term investments, primarily cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 12 | 13 |
San Diego Gas and Electric Company | Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 324 | 358 |
San Diego Gas and Electric Company | Level 1 | Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 39 | 48 |
San Diego Gas and Electric Company | Level 1 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
San Diego Gas and Electric Company | Level 1 | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
San Diego Gas and Electric Company | Level 1 | Total debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 39 | 48 |
San Diego Gas and Electric Company | Level 1 | Commodity contracts subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 15 | 12 |
Effect of netting and allocation of collateral | 29 | 22 |
Derivative liabilities | 0 | 0 |
San Diego Gas and Electric Company | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 566 | 585 |
Total | 566 | 585 |
Total | 0 | 0 |
San Diego Gas and Electric Company | Level 2 | Short-term investments, primarily cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | (9) | (10) |
San Diego Gas and Electric Company | Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 5 | 6 |
San Diego Gas and Electric Company | Level 2 | Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 12 | 8 |
San Diego Gas and Electric Company | Level 2 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 304 | 321 |
San Diego Gas and Electric Company | Level 2 | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 254 | 260 |
San Diego Gas and Electric Company | Level 2 | Total debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 570 | 589 |
San Diego Gas and Electric Company | Level 2 | Commodity contracts subject to rate recovery | ||
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 |
San Diego Gas and Electric Company | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
Total | 67 | 75 |
Total | 3 | 15 |
San Diego Gas and Electric Company | Level 3 | Short-term investments, primarily cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
San Diego Gas and Electric Company | Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
San Diego Gas and Electric Company | Level 3 | Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
San Diego Gas and Electric Company | Level 3 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
San Diego Gas and Electric Company | Level 3 | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
San Diego Gas and Electric Company | Level 3 | Total debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nuclear decommissioning trusts | 0 | 0 |
San Diego Gas and Electric Company | Level 3 | Commodity contracts subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 61 | 69 |
Effect of netting and allocation of collateral | 6 | 6 |
Derivative liabilities | 3 | 15 |
Southern California Gas Company | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2 | 19 |
Total | 8 | 35 |
Southern California Gas Company | Commodity contracts subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | |
Effect of netting and allocation of collateral | 2 | 18 |
Derivative liabilities | 8 | 35 |
Southern California Gas Company | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2 | 9 |
Total | 0 | 0 |
Southern California Gas Company | Level 1 | Commodity contracts subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Effect of netting and allocation of collateral | 2 | 9 |
Derivative liabilities | 0 | 0 |
Southern California Gas Company | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 10 |
Total | 8 | 35 |
Southern California Gas Company | Level 2 | Commodity contracts subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | |
Effect of netting and allocation of collateral | 0 | 9 |
Derivative liabilities | 8 | 35 |
Southern California Gas Company | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Total | 0 | 0 |
Southern California Gas Company | Level 3 | Commodity contracts subject to rate recovery | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 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) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)$ / MWh | Mar. 31, 2021USD ($)$ / MWh | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ 54 | $ 69 |
Realized and unrealized gains (losses) | 7 | (2) |
Settlements | (3) | (5) |
Ending balance | 58 | 62 |
Change in unrealized gains (losses) relating to instruments still held at March 31 | 9 | (1) |
Sempra Infrastructure | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 7 | 3 |
Realized and unrealized gains | 8 | 2 |
Settlements | (3) | (2) |
Ending balance | 12 | 3 |
Change in unrealized gains (losses) relating to instruments still held at the end of the period | 7 | 2 |
Sempra Infrastructure | Other current assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Ending balance | 7 | |
Sempra Infrastructure | Other long-term assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Ending balance | 5 | |
San Diego Gas and Electric Company | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 54 | 69 |
Realized and unrealized gains (losses) | 7 | (2) |
Settlements | (3) | (5) |
Ending balance | 58 | 62 |
Change in unrealized gains (losses) relating to instruments still held at March 31 | $ 9 | $ (1) |
Level 3 | San Diego Gas and Electric Company | Minimum | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Congestion revenue rights (in dollars per MWH) | $ / MWh | (3.67) | (1.81) |
Market electricity forward price inputs ( in dollars per MWH) | $ / MWh | 26.55 | 20.60 |
Level 3 | San Diego Gas and Electric Company | Maximum | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Congestion revenue rights (in dollars per MWH) | $ / MWh | 6.96 | 14.11 |
Market electricity forward price inputs ( in dollars per MWH) | $ / MWh | 137.80 | 117 |
Level 3 | San Diego Gas and Electric Company | Weighted Average | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Congestion revenue rights (in dollars per MWH) | $ / MWh | (0.70) | (0.12) |
Market electricity forward price inputs ( in dollars per MWH) | $ / MWh | 62.79 | 46.46 |
FAIR VALUE MEASUREMENTS - FINAN
FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates, allowance for credit losses | $ 1 | |
Unamortized transaction costs | $ 5 | 5 |
Unamortized discount and debt issuance costs | 299 | 260 |
Finance lease obligations | 1,335 | 1,335 |
Allowance for credit losses | 7 | 8 |
Due from Unconsolidated Affiliates - Current | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Receivable | 1 | 2 |
Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 626 | 640 |
Long-term notes receivable | 306 | 300 |
Long-term amounts due to unconsolidated affiliate | 309 | 287 |
Total long-term debt | 23,678 | 20,099 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 633 | 642 |
Long-term notes receivable | 307 | 327 |
Long-term amounts due to unconsolidated affiliate | 304 | 295 |
Total long-term debt | 23,608 | 22,126 |
Fair value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 0 | 0 |
Long-term notes receivable | 0 | 0 |
Long-term amounts due to unconsolidated affiliate | 0 | 0 |
Total long-term debt | 0 | 0 |
Fair value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 633 | 642 |
Long-term notes receivable | 0 | 0 |
Long-term amounts due to unconsolidated affiliate | 304 | 295 |
Total long-term debt | 23,608 | 22,126 |
Fair value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 0 | 0 |
Long-term notes receivable | 307 | 327 |
Long-term amounts due to unconsolidated affiliate | 0 | 0 |
Total long-term debt | 0 | 0 |
San Diego Gas and Electric Company | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized discount and debt issuance costs | 74 | 61 |
Finance lease obligations | 1,270 | 1,274 |
San Diego Gas and Electric Company | Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 7,600 | 6,417 |
San Diego Gas and Electric Company | Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 7,687 | 7,236 |
San Diego Gas and Electric Company | Fair value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 0 | 0 |
San Diego Gas and Electric Company | Fair value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 7,687 | 7,236 |
San Diego Gas and Electric Company | Fair value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 0 | 0 |
Southern California Gas Company | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized discount and debt issuance costs | 44 | 36 |
Finance lease obligations | 65 | 61 |
Southern California Gas Company | Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 5,459 | 4,759 |
Southern California Gas Company | Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 5,561 | 5,367 |
Southern California Gas Company | Fair value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 0 | 0 |
Southern California Gas Company | Fair value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 5,561 | 5,367 |
Southern California Gas Company | Fair value | Level 3 | ||
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) - San Diego Gas and Electric Company - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Jointly Owned Utility Plant Interests [Line Items] | ||
Anticipated term of dismantlement work | 10 years | |
Percent of dismantlement work expense (as a percent) | 20.00% | |
ARO related to decommissioning costs | $ 561 | |
Jointly Owned Nuclear Power Plant | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Jointly owned utility plant, proportionate ownership share (as a percent) | 20.00% | |
SONGS 2 and 3 Decommissioning | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Nuclear decommissioning trust authorized withdrawal amount | $ 78 |
SAN ONOFRE NUCLEAR GENERATING_4
SAN ONOFRE NUCLEAR GENERATING STATION - NUCLEAR DECOMMISSIONING TRUSTS (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |||
Cost | $ 731 | $ 735 | |
Gross unrealized gains | 240 | 282 | |
Gross unrealized losses | (25) | (5) | |
Estimated fair value | 946 | 1,012 | |
Proceeds from sales | 242 | $ 288 | |
Gross realized gains | 11 | 21 | |
Gross realized losses | (4) | $ (2) | |
Total debt securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 624 | 620 | |
Gross unrealized gains | 6 | 20 | |
Gross unrealized losses | (21) | (3) | |
Estimated fair value | 609 | 637 | |
U.S. government corporations and agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 51 | 56 | |
Gross unrealized gains | 1 | 0 | |
Gross unrealized losses | (1) | 0 | |
Estimated fair value | 51 | 56 | |
Municipal bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 309 | 309 | |
Gross unrealized gains | 3 | 13 | |
Gross unrealized losses | (8) | (1) | |
Estimated fair value | 304 | 321 | |
Other securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 264 | 255 | |
Gross unrealized gains | 2 | 7 | |
Gross unrealized losses | (12) | (2) | |
Estimated fair value | 254 | 260 | |
Equity securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 99 | 104 | |
Gross unrealized gains | 234 | 262 | |
Gross unrealized losses | (4) | (2) | |
Estimated fair value | 329 | 364 | |
Short-term investments, primarily cash equivalents | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 3 | 3 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Estimated fair value | 3 | 3 | |
Receivables (payables), net | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 5 | 8 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Estimated fair value | $ 5 | $ 8 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS (Details) $ in Millions | Apr. 29, 2022lawsuitplaintiff | Nov. 30, 2019violation | Mar. 31, 2022USD ($)lawsuit | Jan. 31, 2019plaintiff | Sep. 26, 2021USD ($) | Jan. 31, 2021lawsuit |
Loss Contingencies [Line Items] | ||||||
Liability for legal proceedings | $ 2,167 | |||||
Number of alleged violations | violation | 324 | |||||
San Diego Gas and Electric Company | ||||||
Loss Contingencies [Line Items] | ||||||
Liability for legal proceedings | 13 | |||||
Southern California Gas Company | ||||||
Loss Contingencies [Line Items] | ||||||
Liability for legal proceedings | 2,078 | |||||
Insurance settlements receivable | 1,279 | |||||
Southern California Gas Company | Aliso Canyon Natural Gas Storage Facility Gas Leak | ||||||
Loss Contingencies [Line Items] | ||||||
Liability for legal proceedings | 2,053 | |||||
Estimate of costs | 3,314 | |||||
Net book value of Aliso Canyon facility | 894 | |||||
Reserve for Aliso Canyon costs | 2,052 | |||||
Loss contingency accrual | 92 | |||||
Loss contingency accrual, after tax | 66 | |||||
Receivable related to natural gas leak | 360 | |||||
Insurance proceeds | $ 919 | |||||
Southern California Gas Company | Shareholder Derivative Complaint | ||||||
Loss Contingencies [Line Items] | ||||||
Number of lawsuits | lawsuit | 4 | 3 | ||||
Southern California Gas Company | Complaints Filed by Firefighters | Aliso Canyon Natural Gas Storage Facility Gas Leak | ||||||
Loss Contingencies [Line Items] | ||||||
Number of plaintiffs | plaintiff | 51 | |||||
Southern California Gas Company | Individual Plaintiff Litigation | Aliso Canyon Natural Gas Storage Facility Gas Leak | ||||||
Loss Contingencies [Line Items] | ||||||
Percentage of plaintiffs represented | 80.00% | |||||
Estimate of costs | $ 1,800 | |||||
Acceptance rate of plaintiffs (as a percent) | 97.00% | |||||
Southern California Gas Company | Property Class Action | Aliso Canyon Natural Gas Storage Facility Gas Leak | ||||||
Loss Contingencies [Line Items] | ||||||
Estimate of costs | $ 40 | |||||
Sempra Infrastructure | Guaymas-El Oro Segment, Sonora Pipeline | ||||||
Loss Contingencies [Line Items] | ||||||
Net book value of pipeline | $ 429 | |||||
Sempra Infrastructure | Regulatory Actions by the Mexican Government | ||||||
Loss Contingencies [Line Items] | ||||||
Other intangible assets, net | 14 | |||||
Subsequent Event | Southern California Gas Company | Aliso Canyon Natural Gas Storage Facility Gas Leak | ||||||
Loss Contingencies [Line Items] | ||||||
Number of lawsuits | lawsuit | 390 | |||||
Number of plaintiffs | plaintiff | 36,000 | |||||
Deferred Credits and Other | Southern California Gas Company | Aliso Canyon Natural Gas Storage Facility Gas Leak | ||||||
Loss Contingencies [Line Items] | ||||||
Reserve for Aliso Canyon costs | $ 4 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - OTHER LITIGATION (Details) claim in Thousands, £ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Oct. 31, 2020GBP (£) | Mar. 31, 2020GBP (£) | Mar. 31, 2022USD ($) | Apr. 29, 2022claim | |
Plaintiffs | HMRC VAT Claim | ||||
Loss Contingencies [Line Items] | ||||
Damages awarded | £ 45 | $ 59 | ||
Cost and interest assessed | £ 21 | $ 28 | ||
Energy Future Holdings Corp. | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Number of proof of claims | 28 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - LEASE INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Interest income | $ 2 | $ 0 |
Total revenues from sales-type leases(1) | 2 | 0 |
Fixed lease payments | 70 | 53 |
Variable lease payments | 1 | 0 |
Total revenues from operating leases(1) | 71 | 53 |
Depreciation expense | 13 | $ 10 |
San Diego Gas and Electric Company | ||
Lessee, Lease, Description [Line Items] | ||
Lease not yet commenced, remainder of year | 8 | |
Lease not yet commenced, year one | 17 | |
Lease not yet commenced, year two | 18 | |
Lease not yet commenced, year three | 18 | |
Lease not yet commenced, year four | 18 | |
Lease not yet commenced, thereafter | 101 | |
Southern California Gas Company | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease not yet commenced, year one | 2 | |
Finance lease not yet commenced, year two | 2 | |
Finance lease not yet commenced, year three | 2 | |
Finance lease not yet commenced, year four | 2 | |
Finance lease not yet commenced, year thereafter | $ 10 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Loss Contingencies [Line Items] | |
Potential monetary sanctions threshold | $ 1 |
Potential monetary sanctions threshold (as a percent) | 1.00% |
Environmental cost, potential monetary sanctions threshold, actual amount | $ 65 |
San Diego Gas and Electric Company | |
Loss Contingencies [Line Items] | |
Environmental cost, potential monetary sanctions threshold, actual amount | 18 |
Southern California Gas Company | |
Loss Contingencies [Line Items] | |
Environmental cost, potential monetary sanctions threshold, actual amount | 19 |
Sempra Infrastructure | Liquefied Natural Gas Contracts | |
Loss Contingencies [Line Items] | |
Change in 2022 | 4 |
Change in 2023 | 155 |
Change in 2024 | 85 |
Change in 2025 | 95 |
Change in 2026 | 112 |
Change thereafter | $ 355 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | ||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 4 | |||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | $ 3,820 | $ 3,259 | ||
DEPRECIATION AND AMORTIZATION | 493 | 442 | ||
INTEREST INCOME | 25 | 19 | ||
INTEREST EXPENSE | 243 | 259 | ||
Income Tax Expense (Benefit) | 334 | 158 | ||
Equity earnings, before income tax: | 143 | 135 | ||
Equity earnings, net of income tax: | 183 | 183 | ||
Equity earnings | 326 | 318 | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 612 | 874 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 1,204 | 1,181 | ||
ASSETS | 74,922 | $ 72,045 | [1] | |
EQUITY METHOD AND OTHER INVESTMENTS | 14,790 | 14,472 | ||
Operating Segments | SDG&E | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 1,445 | 1,337 | ||
DEPRECIATION AND AMORTIZATION | 239 | 213 | ||
INTEREST INCOME | 0 | 1 | ||
INTEREST EXPENSE | 106 | 102 | ||
Income Tax Expense (Benefit) | 64 | 45 | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 234 | 212 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 552 | 555 | ||
ASSETS | 24,835 | 24,058 | ||
Operating Segments | SoCalGas | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 1,993 | 1,508 | ||
DEPRECIATION AND AMORTIZATION | 187 | 173 | ||
INTEREST EXPENSE | 40 | 39 | ||
Income Tax Expense (Benefit) | 84 | 94 | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 334 | 407 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 468 | 459 | ||
ASSETS | 21,205 | 20,324 | ||
Operating Segments | Sempra Infrastructure | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 424 | 449 | ||
DEPRECIATION AND AMORTIZATION | 65 | 54 | ||
INTEREST INCOME | 21 | 21 | ||
INTEREST EXPENSE | 27 | 41 | ||
Income Tax Expense (Benefit) | 91 | 57 | ||
Equity earnings, before income tax: | 141 | 134 | ||
Equity earnings, net of income tax: | 21 | 47 | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 95 | 202 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 182 | 166 | ||
ASSETS | 14,435 | 14,408 | ||
EQUITY METHOD AND OTHER INVESTMENTS | 1,572 | 1,425 | ||
Operating Segments | Sempra Texas Utilities | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Equity earnings, before income tax: | 2 | 1 | ||
Equity earnings, net of income tax: | 162 | 136 | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 162 | 135 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
ASSETS | 13,218 | 13,047 | ||
EQUITY METHOD AND OTHER INVESTMENTS | 13,218 | 13,047 | ||
All other | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 0 | 1 | ||
DEPRECIATION AND AMORTIZATION | 2 | 2 | ||
INTEREST INCOME | 4 | 0 | ||
INTEREST EXPENSE | 70 | 83 | ||
Income Tax Expense (Benefit) | 95 | (38) | ||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | (213) | (82) | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 2 | 1 | ||
ASSETS | 2,430 | 1,399 | ||
Adjustments and eliminations | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 2 | 0 | ||
Intercompany eliminations | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | (44) | (36) | ||
INTEREST INCOME | 0 | (3) | ||
INTEREST EXPENSE | 0 | (6) | ||
Segment Reporting Information, Additional Information [Abstract] | ||||
ASSETS | (1,201) | $ (1,191) | ||
Intercompany eliminations | SDG&E | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 4 | 2 | ||
Intercompany eliminations | SoCalGas | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | 26 | 25 | ||
Intercompany eliminations | Sempra Infrastructure | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
REVENUES | $ 14 | $ 9 | ||
Oncor Electric Delivery Company LLC Additional Acquisition | Sempra Texas Utilities | ||||
Segment Reporting Information [Line Items] | ||||
Acquired percentage interest | 80.25% | |||
Sharyland Holdings, LP | Sempra Texas Utilities | ||||
Segment Reporting Information [Line Items] | ||||
Acquired percentage interest | 50.00% | |||
SI Partners | Sempra Infrastructure | ||||
Segment Reporting Information [Line Items] | ||||
Ownership interest (as a percent) | 80.00% | |||
Sempra LNG Holding, LP | Sempra Infrastructure | ||||
Segment Reporting Information [Line Items] | ||||
Ownership interest (as a percent) | 100.00% | |||
IEnova | Sempra Infrastructure | ||||
Segment Reporting Information [Line Items] | ||||
Ownership interest (as a percent) | 99.90% | |||
[1] | Derived from audited financial statements. |
Uncategorized Items - sre-20220
Label | Element | Value |
San Diego Gas and Electric Company [Member] | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 25,000,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 262,000,000 |