FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2023


RECURRING FAIR VALUE MEASURES – SEMPRA
(Dollars in millions)
	Level 1		Level 2		Level 3		Total
	Fair value at June 30, 2023
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	22	$	2	$	—	$	24
Equity securities	318		4		—		322
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	25		14		—		39
Municipal bonds	—		266		—		266
Other securities	—		218		—		218
Total debt securities	25		498		—		523
Total nuclear decommissioning trusts(1)	365		504		—		869
Short-term investments held in Rabbi Trust	51		—		—		51
Interest rate instruments	—		62		—		62
Commodity contracts not subject to rate recovery	—		19		—		19
Effect of netting and allocation of collateral(2)	143		—		—		143
Commodity contracts subject to rate recovery	—		1		20		21
Effect of netting and allocation of collateral(2)	65		—		5		70
Support Agreement, net of related guarantee fees	—		—		23		23
Total	$	624	$	586	$	48	$	1,258
Liabilities:
Interest rate instruments	$	—	$	2	$	—	$	2
Foreign exchange instruments	—		15		—		15
Commodity contracts not subject to rate recovery	—		11		—		11
Commodity contracts subject to rate recovery	14		51		—		65
Effect of netting and allocation of collateral(2)	(14)		—		—		(14)
Total	$	—	$	79	$	—	$	79

(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 June 30, 2023
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	22	$	2	$	—	$	24
Equity securities	318		4		—		322
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	25		14		—		39
Municipal bonds	—		266		—		266
Other securities	—		218		—		218
Total debt securities	25		498		—		523
Total nuclear decommissioning trusts(1)	365		504		—		869
Commodity contracts subject to rate recovery	—		—		20		20
Effect of netting and allocation of collateral(2)	64		—		5		69
Total	$	429	$	504	$	25	$	958
Liabilities:
Commodity contracts subject to rate recovery	$	14	$	5	$	—	$	19
Effect of netting and allocation of collateral(2)	(14)		—		—		(14)
Total	$	—	$	5	$	—	$	5

	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 June 30, 2023
Assets:
Commodity contracts subject to rate recovery	$	—	$	1	$	—	$	1
Effect of netting and allocation of collateral(1)	1		—		—		1
Total	$	1	$	1	$	—	$	2
Liabilities:
Commodity contracts subject to rate recovery	$	—	$	46	$	—	$	46
Total	$	—	$	46	$	—	$	46

	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 June 30,
	2023		2022
Balance at April 1	$	30	$	58
Realized and unrealized losses	(4)		(30)
Allocated transmission instruments	(2)		(6)
Settlements	(4)		11
Balance at June 30	$	20	$	33
Change in unrealized losses relating to instruments still held at June 30	$	(7)	$	(23)

	Six months ended June 30,
	2023		2022
Balance at January 1	$	35	$	54
Realized and unrealized losses	(8)		(23)
Allocated transmission instruments	(2)		(6)
Settlements	(5)		8
Balance at June 30	$	20	$	33
Change in unrealized losses relating to instruments still held at June 30	$	(9)	$	(18)

(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 June 30,
	2023		2022
Balance at April 1	$	24	$	12
Realized and unrealized gains(1)	1		6
Settlements	(2)		(2)
Balance at June 30(2)	$	23	$	16
Change in unrealized gains relating to instruments still held at June 30	$	1	$	5

	Six months ended June 30,
	2023		2022
Balance at January 1	$	17	$	7
Realized and unrealized gains(1)	10		14
Settlements	(4)		(5)
Balance at June 30(2)	$	23	$	16
Change in unrealized gains relating to instruments still held at June 30	$	9	$	13

(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 $16 in Other Long-term Assets at June 30, 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 June 30 were as follows:


LONG-TERM, FIXED-PRICE ELECTRICITY POSITIONS PRICE INPUTS

Settlement year						Weighted-average price per MWh
2023	$	22.75	to	$	117.50	$	74.02
2022	25.25		to	125.00		66.36

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 amount		Fair value
			Level 1		Level 2		Level 3		Total
	June 30, 2023
Sempra:

Long-term note receivable(1)	$	326	$	—	$	—	$	296	$	296
Long-term amounts due to unconsolidated affiliates	287		—		251		—		251
Total long-term debt(2)	27,419		—		24,630		—		24,630
SDG&E:
Total long-term debt(3)	$	8,600	$	—	$	7,535	$	—	$	7,535
SoCalGas:
Total long-term debt(4)	$	6,759	$	—	$	6,270	$	—	$	6,270

	December 31, 2022
Sempra:
Long-term note receivable(1)	$	318	$	—	$	—	$	286	$	286
Long-term amounts due to unconsolidated affiliates	301		—		263		—		263
Total long-term debt(2)	24,513		—		21,549		—		21,549
SDG&E:
Total long-term debt(3)	$	7,800	$	—	$	6,726	$	—	$	6,726
SoCalGas:
Total long-term debt(4)	$	6,059	$	—	$	5,538	$	—	$	5,538

(1) Before allowances for credit losses of $6 and $7 at June 30, 2023 and December 31, 2022, respectively. Excludes unamortized transaction costs of $4 and $5 at June 30, 2023 and December 31, 2022, respectively.

(2) Before reductions of unamortized discount and debt issuance costs of $325 and $289 at June 30, 2023 and December 31, 2022, respectively, and excluding finance lease obligations of $1,351 and $1,343 at June 30, 2023 and December 31, 2022, respectively.

(3) Before reductions of unamortized discount and debt issuance costs of $85 and $70 at June 30, 2023 and December 31, 2022, respectively, and excluding finance lease obligations of $1,241 and $1,256 at June 30, 2023 and December 31, 2022, respectively.

(4) Before reductions of unamortized discount and debt issuance costs of $57 and $48 at June 30, 2023 and December 31, 2022, respectively, and excluding finance lease obligations of $110 and $87 at June 30, 2023 and December 31, 2022, respectively.