1.0.0.3 false ASSET RETIREMENT OBLIGATIONS false 1 $ false false 2 Notes to Consolidated Financial Statements 0 sre_NotesToConsolidatedFinancialStatementsAbstract sre false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 Asset Retirement Obligations Disclosure 1 us-gaap_AssetRetirementObligationDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <div style="font-size:12pt">Asset Retirement Obligations For tangible long-lived assets, we record asset retirement obligations for the present value of liabilities of future costs expected to be incurred when assets are retired from service, if the retirement process is legally required and if a reasonable estimate of fair value can be made. We record the estimated retirement cost over the life of the related asset by depreciating the present value of the obligation (measured at the time of the asset's acquisition) and accreting the discount until the liability is settled. Rate-regulated entities record regulatory assets or liabilities as a result of the timing difference between the recognition of costs in accordance with GAAP and costs recovered through the rate-making process. We have recorded a regulatory liability to show that the Sempra Utilities have collected funds from customers more quickly and for larger amounts than we would accrete the retirement liability and depreciate the asset in accordance with GAAP. We have recorded asset retirement obligations related to various assets including: SDG&E and SoCalGas <ul><li>fuel and storage tanks </li><li>natural gas distribution system </li><li>hazardous waste storage facilities </li><li>asbestos-containing construction materials </li></ul>SDG&E <ul><li>decommissioning of nuclear power facilities </li><li>electric distribution and transmission systems </li><li>site restoration of a former power plant </li></ul>SoCalGas <ul><li>natural gas transmission pipeline </li><li>underground natural gas storage facilities and wells </li></ul>Sempra Global <ul><li>certain power generation plants (natural gas and solar) </li><li>natural gas distribution and transportation systems </li><li>LNG receipt terminal </li></ul>The changes in asset retirement obligations are as follows:<table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="713" align="left" colspan="15" style="border-top: 1px solid #000000;" height="19">CHANGES IN ASSET RETIREMENT OBLIGATIONS</td></tr><tr><td width="713" align="left" height="19" colspan="15">(Dollars in millions)</td></tr><tr><td height="14" width="236" align="left"> </td><td width="152" align="center" height="14" colspan="4">Sempra Energy</td><td height="14" width="11" align="center"> </td><td width="76" align="center" height="14" colspan="2"> </td><td width="76" align="center" height="14" colspan="2"> </td><td height="14" width="10" align="center"> </td><td width="76" align="center" height="14" colspan="2"> </td><td width="76" align="center" height="14" colspan="2"> </td></tr><tr><td height="14" width="236" align="left"> </td><td width="152" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="14">Consolidated</td><td height="14" width="11" align="center"> </td><td width="152" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="14">SDG&E</td><td height="14" width="10" align="center"> </td><td width="152" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="14">SoCalGas</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="236"> </td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2008 </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="11"> </td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2008 </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="10"> </td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2008 </td></tr><tr><td height="16" style="border-top: 1px solid #000000;" align="left" width="236">Balance as of January 1(1)</td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="54"> 1,177 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="54"> 1,158 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="11"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="54"> 554 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="54"> 568 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="10"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="54"> 595 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="54"> 577 </td></tr><tr><td height="16" width="236" align="left">Accretion expense</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 75 </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 74 </td><td height="16" width="11" align="right"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 38 </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 37 </td><td height="16" width="10" align="right"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 35 </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 36 </td></tr><tr><td height="16" width="236" align="left">Liabilities incurred</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 17 </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 7 </td><td height="16" width="11" align="right"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="10" align="right"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td></tr><tr><td height="16" width="236" align="left">Payments</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> (5)</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> (11)</td><td height="16" width="11" align="right"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> (3)</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> (10)</td><td height="16" width="10" align="right"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> (2)</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> (1)</td></tr><tr><td height="16" width="236" align="left">Revisions to estimated cash flows</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 49 </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> (57)</td><td height="16" width="11" align="right"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 1 </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> (41)</td><td height="16" width="10" align="right"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 48 </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> (17)</td></tr><tr><td height="16" width="236" align="left">Acquisition of EnergySouth (see Note 3)</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> 6 </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="11"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="10"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td></tr><tr><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="236">Balance as of December 31(1)</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 1,313 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 1,177 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="11"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 590 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 554 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="10"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 676 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 595 </td></tr><tr><td width="713" align="left" colspan="15" style="border-top: 3px solid #000000;" height="18">(1) The current portions of the obligations are included in Other Current Liabilities on the Consolidated Balance Sheets.</td></tr></table>SONGS Decommissioning Objectives, work scope, and procedures for the dismantling and decontamination of the SONGS' units must meet the requirements of the Nuclear Regulatory Commission (NRC), the Environmental Protection Agency (EPA), the U.S. Department of the Navy (the land owner), the CPUC and other regulatory bodies. SDG&E's asset retirement obligation related to decommissioning costs for the SONGS units was $474 million at December 31, 2009. That amount includes the cost to decommission Units 2 and 3, and the remaining cost to complete the decommissioning of Unit 1, which is currently in progress. Southern California Edison (Edison), the operator of SONGS, updates decommissioning cost studies every three years. Rate recovery of decommissioning costs is allowed until the time that the costs are fully recovered and is subject to adjustment every three years based on the costs allowed by regulators. Collections are authorized to continue until 2022. The most recent cost study is under review by the CPUC, and we expect a decision by mid-2010. SDG&E's share of costs under the revised study is approximately $760 million. Unit 1 was permanently shut down in 1992, and physical decommissioning began in January 2000. Most structures, foundations and large components have been dismantled, removed and disposed of. Spent nuclear fuel has been removed from the Unit 1 Spent Fuel Pool and stored on-site in an independent spent fuel storage installation (ISFSI) licensed by the NRC. The decommissioning of Unit 1 remaining structures (subsurface and intake/discharge) will take place when Units 2 and 3 are decommissioned. The ISFSI will be decommissioned after a permanent storage facility becomes available and the U.S. Department of Energy (DOE) removes the spent fuel from the site. The Unit 1 reactor vessel is expected to remain on site until Units 2 and 3 are decommissioned. The amounts collected in rates for SONGS' decommissioning are invested in externally managed trust funds. Amounts held by the trusts are invested in accordance with CPUC regulations. These trusts are shown on the Sempra Energy and SDG&E Consolidated Balance Sheets at fair value with the offsetting credits recorded in Regulatory Liabilities Arising from Removal Obligations. </div> Asset Retirement ObligationsFor tangible long-lived assets, we record asset retirement obligations for the present value of liabilities of future costs false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true