REGULATORY MATTERS (Tables)

3 Months Ended

Mar. 31, 2023

Regulated Operations [Abstract]

Schedule of Regulatory Assets

REGULATORY ASSETS (LIABILITIES)
(Dollars in millions)
	March 31, 2023		December 31, 2022
SDG&E:
Fixed-price contracts and other derivatives	$	(28)	$	(110)
Deferred income taxes recoverable in rates	372		296
Pension and PBOP plan obligations	7		11
Removal obligations	(2,319)		(2,248)
Environmental costs	106		107
Sunrise Powerlink fire mitigation	124		123
Regulatory balancing accounts(1)(2):
Commodity – electric	184		220
Gas transportation	30		60
Safety and reliability	135		107
Public purpose programs	(100)		(69)
Wildfire mitigation plan	443		375
Liability insurance premium	100		99
Other balancing accounts	(169)		(50)
Other regulatory assets, net(2)	154		137
Total SDG&E	(961)		(942)
SoCalGas:
Deferred income taxes recoverable in rates	208		161
Pension and PBOP plan obligations	(201)		(170)
Employee benefit costs	24		24
Removal obligations	(610)		(616)
Environmental costs	38		38
Regulatory balancing accounts(1)(2):
Commodity – gas, including transportation	(376)		(257)
Safety and reliability	595		575
Public purpose programs	(132)		(158)
Liability insurance premium	24		23
Other balancing accounts	267		115
Other regulatory assets, net(2)	261		223
Total SoCalGas	98		(42)
Sempra Infrastructure:
Deferred income taxes recoverable in rates	78		78
Total Sempra	$	(785)	$	(906)

(1)    At March 31, 2023 and December 31, 2022, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $648 and $562, respectively, and for SoCalGas was $754 and $692, 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, 2023		December 31, 2022
SDG&E:
Fixed-price contracts and other derivatives	$	(28)	$	(110)
Deferred income taxes recoverable in rates	372		296
Pension and PBOP plan obligations	7		11
Removal obligations	(2,319)		(2,248)
Environmental costs	106		107
Sunrise Powerlink fire mitigation	124		123
Regulatory balancing accounts(1)(2):
Commodity – electric	184		220
Gas transportation	30		60
Safety and reliability	135		107
Public purpose programs	(100)		(69)
Wildfire mitigation plan	443		375
Liability insurance premium	100		99
Other balancing accounts	(169)		(50)
Other regulatory assets, net(2)	154		137
Total SDG&E	(961)		(942)
SoCalGas:
Deferred income taxes recoverable in rates	208		161
Pension and PBOP plan obligations	(201)		(170)
Employee benefit costs	24		24
Removal obligations	(610)		(616)
Environmental costs	38		38
Regulatory balancing accounts(1)(2):
Commodity – gas, including transportation	(376)		(257)
Safety and reliability	595		575
Public purpose programs	(132)		(158)
Liability insurance premium	24		23
Other balancing accounts	267		115
Other regulatory assets, net(2)	261		223
Total SoCalGas	98		(42)
Sempra Infrastructure:
Deferred income taxes recoverable in rates	78		78
Total Sempra	$	(785)	$	(906)

(1)    At March 31, 2023 and December 31, 2022, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $648 and $562, respectively, and for SoCalGas was $754 and $692, 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

CPUC AUTHORIZED COST OF CAPITAL FOR 2023 – 2025
SDG&E							SoCalGas
Authorized weighting		Return on rate base		Weighted return on rate base(1)			Authorized weighting		Return on rate base		Weighted return on rate base
45.25	%	4.05	%	1.83	%	Long-Term Debt	45.60	%	4.07	%	1.86	%
2.75		6.22		0.17		Preferred Equity	2.40		6.00		0.14
52.00		9.95		5.17		Common Equity	52.00		9.80		5.10
100.00	%			7.18	%		100.00	%			7.10	%

(1)    Total weighted return on rate base does not sum due to rounding differences.