REGULATORY MATTERS (Tables)

3 Months Ended

Mar. 31, 2025

Regulated Operations [Abstract]

Schedule of Regulatory Assets

REGULATORY ASSETS (LIABILITIES)
(Dollars in millions)
	Sempra				SDG&E				SoCalGas
	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Fixed-price contracts and other derivatives	$	39	$	53	$	6	$	11	$	33	$	42
Deferred income taxes recoverable in rates	1,894		1,689		878		802		947		817
Pension and PBOP plan obligations	(436)		(458)		7		(2)		(443)		(456)
Employee benefit costs	19		19		3		3		16		16
Removal obligations	(3,321)		(3,295)		(2,726)		(2,676)		(595)		(619)
Environmental costs	147		149		114		115		33		34
Sunrise Powerlink fire mitigation	121		124		121		124		—		—
Regulatory balancing accounts(1)(2):
Commodity – electric	(220)		(313)		(220)		(313)		—		—
Commodity – gas, including transportation	(49)		(47)		51		86		(100)		(133)
Safety and reliability	804		820		244		227		560		593
Public purpose programs	(460)		(439)		(215)		(219)		(245)		(220)
2024 GRC retroactive impacts	656		631		280		277		376		354
Wildfire mitigation plan	873		808		873		808		—		—
Liability insurance premium	(33)		(24)		(22)		(15)		(11)		(9)
Other balancing accounts	(178)		158		(202)		(51)		24		209
Other regulatory (liabilities) assets, net(2)	165		164		87		87		79		79
Total	$	21	$	39	$	(721)	$	(736)	$	674	$	707

(1)    At March 31, 2025 and December 31, 2024, the noncurrent portion of regulatory balancing accounts – net undercollected for Sempra was $1,824 and $1,731, respectively, for SDG&E was $937 and $873, respectively, and for SoCalGas was $887 and $858, 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
	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Fixed-price contracts and other derivatives	$	39	$	53	$	6	$	11	$	33	$	42
Deferred income taxes recoverable in rates	1,894		1,689		878		802		947		817
Pension and PBOP plan obligations	(436)		(458)		7		(2)		(443)		(456)
Employee benefit costs	19		19		3		3		16		16
Removal obligations	(3,321)		(3,295)		(2,726)		(2,676)		(595)		(619)
Environmental costs	147		149		114		115		33		34
Sunrise Powerlink fire mitigation	121		124		121		124		—		—
Regulatory balancing accounts(1)(2):
Commodity – electric	(220)		(313)		(220)		(313)		—		—
Commodity – gas, including transportation	(49)		(47)		51		86		(100)		(133)
Safety and reliability	804		820		244		227		560		593
Public purpose programs	(460)		(439)		(215)		(219)		(245)		(220)
2024 GRC retroactive impacts	656		631		280		277		376		354
Wildfire mitigation plan	873		808		873		808		—		—
Liability insurance premium	(33)		(24)		(22)		(15)		(11)		(9)
Other balancing accounts	(178)		158		(202)		(51)		24		209
Other regulatory (liabilities) assets, net(2)	165		164		87		87		79		79
Total	$	21	$	39	$	(721)	$	(736)	$	674	$	707

(1)    At March 31, 2025 and December 31, 2024, the noncurrent portion of regulatory balancing accounts – net undercollected for Sempra was $1,824 and $1,731, respectively, for SDG&E was $937 and $873, respectively, and for SoCalGas was $887 and $858, 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

The following table summarizes the CPUC-approved cost of capital for SDG&E and SoCalGas. The authorized weighting remained unchanged for each of the years presented.

AUTHORIZED COST OF CAPITAL
	Authorized weighting		2024		2025		2024		2025
			Return on rate base				Weighted return on rate base
SDG&E:
Long-Term Debt	45.25	%	4.34	%	4.34	%	1.96	%	1.96	%
Preferred Equity	2.75		6.22		6.22		0.17		0.17
Common Equity	52.00		10.65		10.23		5.54		5.32
	100.00	%					7.67	%	7.45	%
SoCalGas:
Long-Term Debt	45.60	%	4.54	%	4.63	%	2.07	%	2.11	%
Preferred Equity	2.40		6.00		6.00		0.14		0.14
Common Equity	52.00		10.50		10.08		5.46		5.24
	100.00	%					7.67	%	7.49	%

In March 2025, SDG&E and SoCalGas each filed applications with the CPUC seeking to update their cost of capital for 2026 through 2028, subject to the CCM. SDG&E and SoCalGas expect to receive a final decision by the end of 2025.

PROPOSED COST OF CAPITAL FOR 2026 - 2028
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
46.00	%	4.62	%	2.13	%	Long-Term Debt	45.60	%	5.02	%	2.29	%
—		6.22		—		Preferred Equity	2.40		6.00		0.14
54.00		11.25		6.08		Common Equity	52.00		11.00		5.72
100.00	%			8.21	%		100.00	%			8.15	%