REGULATORY MATTERS (Tables)

9 Months Ended

Sep. 30, 2024

Regulated Operations [Abstract]

Schedule of Regulatory Assets

REGULATORY ASSETS (LIABILITIES)
(Dollars in millions)
	Sempra				SDG&E				SoCalGas
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Fixed-price contracts and other derivatives	$	54	$	215	$	8	$	14	$	46	$	201
Deferred income taxes recoverable in rates	1,526		1,142		780		626		660		430
Pension and PBOP plan obligations	(255)		(212)		51		48		(306)		(260)
Employee benefit costs	24		24		3		3		21		21
Removal obligations	(3,261)		(3,082)		(2,650)		(2,468)		(611)		(614)
Environmental costs	148		139		115		105		33		34
Sunrise Powerlink fire mitigation	123		124		123		124		—		—
Regulatory balancing accounts(1)(2):
Commodity – electric	(223)		(233)		(223)		(233)		—		—
Commodity – gas, including transportation	(179)		(259)		46		52		(225)		(311)
Safety and reliability	1,192		959		276		207		916		752
Public purpose programs	(442)		(273)		(200)		(144)		(242)		(129)
Wildfire mitigation plan	811		685		811		685		—		—
Liability insurance premium	107		113		79		90		28		23
Other balancing accounts	306		373		(70)		(152)		376		525
Other regulatory (liabilities) assets, net(2)	(188)		(10)		(5)		49		(181)		(58)
Total	$	(257)	$	(295)	$	(856)	$	(994)	$	515	$	614

(1)    At September 30, 2024 and December 31, 2023, the noncurrent portion of regulatory balancing accounts – net undercollected for Sempra was $2,090 and $1,913, respectively, for SDG&E was $979 and $950, respectively, and for SoCalGas was $1,111 and $963, 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)
	Sempra				SDG&E				SoCalGas
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Fixed-price contracts and other derivatives	$	54	$	215	$	8	$	14	$	46	$	201
Deferred income taxes recoverable in rates	1,526		1,142		780		626		660		430
Pension and PBOP plan obligations	(255)		(212)		51		48		(306)		(260)
Employee benefit costs	24		24		3		3		21		21
Removal obligations	(3,261)		(3,082)		(2,650)		(2,468)		(611)		(614)
Environmental costs	148		139		115		105		33		34
Sunrise Powerlink fire mitigation	123		124		123		124		—		—
Regulatory balancing accounts(1)(2):
Commodity – electric	(223)		(233)		(223)		(233)		—		—
Commodity – gas, including transportation	(179)		(259)		46		52		(225)		(311)
Safety and reliability	1,192		959		276		207		916		752
Public purpose programs	(442)		(273)		(200)		(144)		(242)		(129)
Wildfire mitigation plan	811		685		811		685		—		—
Liability insurance premium	107		113		79		90		28		23
Other balancing accounts	306		373		(70)		(152)		376		525
Other regulatory (liabilities) assets, net(2)	(188)		(10)		(5)		49		(181)		(58)
Total	$	(257)	$	(295)	$	(856)	$	(994)	$	515	$	614

(1)    At September 30, 2024 and December 31, 2023, the noncurrent portion of regulatory balancing accounts – net undercollected for Sempra was $2,090 and $1,913, respectively, for SDG&E was $979 and $950, respectively, and for SoCalGas was $1,111 and $963, 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

AUTHORIZED COST OF CAPITAL FOR 2023
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.

On September 30, 2023, the CCM was triggered for SDG&E and SoCalGas. In December 2023, the CPUC approved the following authorized rates of return effective January 1, 2024.

AUTHORIZED COST OF CAPITAL FOR 2024
SDG&E							SoCalGas
Authorized weighting		Return on rate base		Weighted return on rate base			Authorized weighting		Return on rate base		Weighted return on rate base
45.25	%	4.34	%	1.96	%	Long-Term Debt	45.60	%	4.54	%	2.07	%
2.75		6.22		0.17		Preferred Equity	2.40		6.00		0.14
52.00		10.65		5.54		Common Equity	52.00		10.50		5.46
100.00	%			7.67	%		100.00	%			7.67	%