FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2020



RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Fair value at March 31, 2020
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	299		$	5	$	—	$	304
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	46			24		—		70
Municipal bonds	—			330		—		330
Other securities	—			269		—		269
Total debt securities	46			623		—		669
Total nuclear decommissioning trusts⁽¹⁾	345			628		—		973
Interest rate and foreign exchange instruments	—			15		—		15
Commodity contracts not subject to rate recovery	—			10		—		10
Effect of netting and allocation of collateral⁽²⁾	37			—		—		37
Commodity contracts subject to rate recovery	—			4		92		96
Effect of netting and allocation of collateral⁽²⁾	14			—		5		19
Total	$	396		$	657	$	97	$	1,150

Liabilities:
Interest rate and foreign exchange instruments	$	—		$	298	$	—	$	298
Commodity contracts not subject to rate recovery	—			12		—		12
Commodity contracts subject to rate recovery	13			4		76		93
Effect of netting and allocation of collateral⁽²⁾	(13		)	—		—		(13		)
Total	$	—		$	314	$	76	$	390

	Fair value at December 31, 2019
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	503		$	6	$	—	$	509
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	46			11		—		57
Municipal bonds	—			282		—		282
Other securities	—			226		—		226
Total debt securities	46			519		—		565
Total nuclear decommissioning trusts⁽¹⁾	549			525		—		1,074
Interest rate and foreign exchange instruments	—			24		—		24
Commodity contracts not subject to rate recovery	—			11		—		11
Effect of netting and allocation of collateral⁽²⁾	43			—		—		43
Commodity contracts subject to rate recovery	5			8		95		108
Effect of netting and allocation of collateral⁽²⁾	11			8		6		25
Total	$	608		$	576	$	101	$	1,285

Liabilities:
Interest rate and foreign exchange instruments	$	—		$	157	$	—	$	157
Commodity contracts not subject to rate recovery	—			17		—		17
Commodity contracts subject to rate recovery	14			4		67		85
Effect of netting and allocation of collateral⁽²⁾	(14		)	—		—		(14		)
Total	$	—		$	178	$	67	$	245


⁽¹⁾	Excludes cash and cash equivalents.


⁽²⁾	Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.



RECURRING FAIR VALUE MEASURES – SDG&E
(Dollars in millions)
	Fair value at March 31, 2020
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	299		$	5	$	—	$	304
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	46			24		—		70
Municipal bonds	—			330		—		330
Other securities	—			269		—		269
Total debt securities	46			623		—		669
Total nuclear decommissioning trusts⁽¹⁾	345			628		—		973
Commodity contracts subject to rate recovery	—			1		92		93
Effect of netting and allocation of collateral⁽²⁾	10			—		5		15
Total	$	355		$	629	$	97	$	1,081

Liabilities:
Commodity contracts subject to rate recovery	$	13		$	—	$	76	$	89
Effect of netting and allocation of collateral⁽²⁾	(13		)	—		—		(13		)
Total	$	—		$	—	$	76	$	76

	Fair value at December 31, 2019
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	503		$	6	$	—	$	509
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	46			11		—		57
Municipal bonds	—			282		—		282
Other securities	—			226		—		226
Total debt securities	46			519		—		565
Total nuclear decommissioning trusts⁽¹⁾	549			525		—		1,074
Commodity contracts subject to rate recovery	1			3		95		99
Effect of netting and allocation of collateral⁽²⁾	10			—		6		16
Total	$	560		$	528	$	101	$	1,189

Liabilities:
Commodity contracts subject to rate recovery	$	14		$	—	$	67	$	81
Effect of netting and allocation of collateral⁽²⁾	(14		)	—		—		(14		)
Total	$	—		$	—	$	67	$	67


⁽¹⁾	Excludes cash and cash equivalents.


⁽²⁾	Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.



RECURRING FAIR VALUE MEASURES – SOCALGAS
(Dollars in millions)
	Fair value at March 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Commodity contracts subject to rate recovery	$	—	$	3	$	—	$	3
Effect of netting and allocation of collateral⁽¹⁾	4		—		—		4
Total	$	4	$	3	$	—	$	7

Liabilities:
Commodity contracts subject to rate recovery	$	—	$	4	$	—	$	4
Total	$	—	$	4	$	—	$	4

	Fair value at December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Commodity contracts subject to rate recovery	$	4	$	5	$	—	$	9
Effect of netting and allocation of collateral⁽¹⁾	1		8		—		9
Total	$	5	$	13	$	—	$	18

Liabilities:
Commodity contracts subject to rate recovery	$	—	$	4	$	—	$	4
Total	$	—	$	4	$	—	$	4

⁽¹⁾

Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.

Recurring Fair Value Measures Level 3 Rollforward Table

The table below sets forth reconciliations of changes in the fair value of CRRs and long-term, fixed-price electricity positions classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E.



LEVEL 3 RECONCILIATIONS⁽¹⁾
(Dollars in millions)
	Three months ended March 31,
	2020			2019
Balance at January 1	$	28		$	179
Realized and unrealized (losses) gains	(5		)	5
Settlements	(7		)	(2		)
Balance at March 31	$	16		$	182
Change in unrealized gains (losses) relating to instruments still held at March 31	$	(6	)	$	13

⁽¹⁾

Excludes the effect of the contractual ability to settle contracts under master netting agreements.

Schedule of Fair Value Inputs

The fair value of the net electricity positions classified as Level 3 is derived from a discounted cash flow model using market electricity forward price inputs. The range and weighted-average price of these inputs at March 31 were as follows:



LONG-TERM, FIXED-PRICE ELECTRICITY POSITIONS PRICE INPUTS

Settlement year	Price per MWh					Weighted-average price per MWh
2020	$	16.51	to	$	52.45	$	35.41
2019		23.25	to		81.75		42.49

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
2020	$	(3.77	)	to	$	6.03	$	(1.58	)
2019	(8.57		)	to	35.21		(2.94		)

Fair Value of Financial Instruments Table

The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets.



FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
	March 31, 2020
	Carrying amount		Fair value
	Carrying amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Long-term amounts due from unconsolidated affiliates⁽¹⁾	$	599	$	—	$	627	$	6	$	633
Long-term amounts due to unconsolidated affiliates	263		—		238		—		238
Total long-term debt⁽²⁾	21,204		—		22,049		—		22,049
SDG&E:
Total long-term debt⁽³⁾	$	5,523	$	—	$	6,281	$	—	$	6,281
SoCalGas:
Total long-term debt⁽⁴⁾	$	4,459	$	—	$	4,894	$	—	$	4,894

	December 31, 2019
	Carrying amount		Fair value
	Carrying amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Long-term amounts due from unconsolidated affiliates	$	742	$	—	$	759	$	—	$	759
Long-term amounts due to unconsolidated affiliates	195		—		184		—		184
Total long-term debt⁽²⁾	21,247		—		22,638		26		22,664
SDG&E:
Total long-term debt⁽³⁾	$	5,140	$	—	$	5,662	$	—	$	5,662
SoCalGas:
Total long-term debt⁽⁴⁾	$	3,809	$	—	$	4,189	$	—	$	4,189


⁽¹⁾	Before allowances for credit losses of $7 million at March 31, 2020.


⁽²⁾	Before reductions of unamortized discount and debt issuance costs of $228 million and $225 million at March 31, 2020 and December 31, 2019, respectively, and excluding finance lease obligations of $1,301 million and $1,289 million at March 31, 2020 and December 31, 2019, respectively.


⁽³⁾	Before reductions of unamortized discount and debt issuance costs of $47 million and $48 million at March 31, 2020 and December 31, 2019, respectively, and excluding finance lease obligations of $1,268 million and $1,270 million at March 31, 2020 and December 31, 2019, respectively.


⁽⁴⁾	Before reductions of unamortized discount and debt issuance costs of $41 million and $34 million at March 31, 2020 and December 31, 2019, respectively, and excluding finance lease obligations of $33 million and $19 million at March 31, 2020 and December 31, 2019, respectively.