FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2023


RECURRING FAIR VALUE MEASURES – SEMPRA
(Dollars in millions)
	Level 1		Level 2		Level 3		Total
	Fair value at March 31, 2023
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	18	$	1	$	—	$	19
Equity securities	312		4		—		316
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	24		13		—		37
Municipal bonds	—		266		—		266
Other securities	—		230		—		230
Total debt securities	24		509		—		533
Total nuclear decommissioning trusts(1)	354		514		—		868
Short-term investments held in Rabbi Trust	48		—		—		48
Interest rate instruments	—		39		—		39
Commodity contracts not subject to rate recovery	—		20		—		20
Effect of netting and allocation of collateral(2)	317		—		—		317
Commodity contracts subject to rate recovery	7		3		30		40
Effect of netting and allocation of collateral(2)	79		10		6		95
Support Agreement, net of related guarantee fees	—		—		24		24
Total	$	805	$	586	$	60	$	1,451
Liabilities:
Interest rate instruments	$	—	$	73	$	—	$	73
Foreign exchange instruments	—		13		—		13
Commodity contracts not subject to rate recovery	—		16		—		16
Commodity contracts subject to rate recovery	—		40		—		40
Total	$	—	$	142	$	—	$	142

(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)
	Level 1		Level 2		Level 3		Total
	Fair value at December 31, 2022
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	10	$	1	$	—	$	11
Equity securities	293		4		—		297
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	27		13		—		40
Municipal bonds	—		270		—		270
Other securities	—		227		—		227
Total debt securities	27		510		—		537
Total nuclear decommissioning trusts(1)	330		515		—		845
Short-term investments held in Rabbi Trust	55		—		—		55
Interest rate instruments	—		76		—		76
Commodity contracts not subject to rate recovery	—		273		—		273
Effect of netting and allocation of collateral(2)	451		—		—		451
Commodity contracts subject to rate recovery	82		19		35		136
Effect of netting and allocation of collateral(2)	12		—		6		18
Support Agreement, net of related guarantee fees	—		—		17		17
Total	$	930	$	883	$	58	$	1,871
Liabilities:
Foreign exchange instruments	$	—	$	8	$	—	$	8
Interest rate and foreign exchange instruments	—		105		—		105
Commodity contracts not subject to rate recovery	—		191		—		191
Commodity contracts subject to rate recovery	—		70		—		70
Total	$	—	$	374	$	—	$	374

(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)
	Level 1		Level 2		Level 3		Total
	Fair value at March 31, 2023
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	18	$	1	$	—	$	19
Equity securities	312		4		—		316
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	24		13		—		37
Municipal bonds	—		266		—		266
Other securities	—		230		—		230
Total debt securities	24		509		—		533
Total nuclear decommissioning trusts(1)	354		514		—		868
Commodity contracts subject to rate recovery	7		2		30		39
Effect of netting and allocation of collateral(2)	78		—		6		84
Total	$	439	$	516	$	36	$	991
Liabilities:
Commodity contracts subject to rate recovery	$	—	$	2	$	—	$	2
Total	$	—	$	2	$	—	$	2

	Fair value at December 31, 2022
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	10	$	1	$	—	$	11
Equity securities	293		4		—		297
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	27		13		—		40
Municipal bonds	—		270		—		270
Other securities	—		227		—		227
Total debt securities	27		510		—		537
Total nuclear decommissioning trusts(1)	330		515		—		845
Commodity contracts subject to rate recovery	82		3		35		120
Effect of netting and allocation of collateral(2)	11		—		6		17
Total	$	423	$	518	$	41	$	982
Liabilities:
Commodity contracts subject to rate recovery	$	—	$	1	$	—	$	1
Total	$	—	$	1	$	—	$	1

(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)
	Level 1		Level 2		Level 3		Total
	Fair value at March 31, 2023
Assets:
Commodity contracts subject to rate recovery	$	—	$	1	$	—	$	1
Effect of netting and allocation of collateral(1)	1		10		—		11
Total	$	1	$	11	$	—	$	12
Liabilities:
Commodity contracts subject to rate recovery	$	—	$	38	$	—	$	38
Total	$	—	$	38	$	—	$	38

	Fair value at December 31, 2022
Assets:
Commodity contracts subject to rate recovery	$	—	$	16	$	—	$	16
Effect of netting and allocation of collateral(1)	1		—		—		1
Total	$	1	$	16	$	—	$	17
Liabilities:
Commodity contracts subject to rate recovery	$	—	$	69	$	—	$	69
Total	$	—	$	69	$	—	$	69

(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,
	2023		2022
Balance at January 1	$	35	$	54
Realized and unrealized (losses) gains	(4)		7
Settlements	(1)		(3)
Balance at March 31	$	30	$	58
Change in unrealized (losses) gains relating to instruments still held at March 31	$	(2)	$	9

(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,
	2023		2022
Balance at January 1	$	17	$	7
Realized and unrealized gains(1)	9		8
Settlements	(2)		(3)
Balance at March 31(2)	$	24	$	12
Change in unrealized gains relating to instruments still held at March 31	$	9	$	7

(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 $17 in Other Long-term Assets at March 31, 2023 on Sempra’s Condensed Consolidated Balance Sheet.

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
2023	$	(3.09)	to	$	10.71	$	(0.56)
2022	(3.67)		to	6.96		(0.70)

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
2023	$	28.55	to	$	150.00	$	82.19
2022		26.55	to		137.80		62.79