1.0.0.3 false REVENUES 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 Revenues Disclosure 1 us-gaap_RevenueRecognitionPolicyTextBlock 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">REVENUES Sempra Utilities The Sempra Utilities generate revenues primarily from deliveries to their customers of electricity by SDG&E and natural gas by both SoCalGas and SDG&E, and from related services. They record these revenues under the accrual method and recognize them upon delivery and performance. They also record revenue from CPUC-approved incentive awards, some of which require approval by the CPUC prior to being recognized. We provide additional discussion on utility incentive mechanisms in Note 16. Under an operating agreement with the California Department of Water Resources (DWR), SDG&E acts as a limited agent on behalf of the DWR in the administration of energy contracts, including natural gas procurement functions under the DWR contracts allocated to SDG&E's customers. The legal and financial responsibilities associated with these activities continue to reside with the DWR. Accordingly, the commodity costs associated with long-term contracts allocated to SDG&E from the DWR (and the revenues to recover those costs) are not included in our Consolidated Statements of Operations. We provide discussion on electric industry restructuring related to the DWR in Note 15. On a monthly basis, SoCalGas accrues natural gas storage contract revenues, which consist of storage, reservation, and variable charges based on negotiated agreements with terms of up to 15 years. The table below shows the total revenues from the Sempra Utilities in Sempra Energy's Consolidated Statements of Operations, net of sales taxes, for each of the last three years. The revenues include amounts for services rendered but unbilled (approximately one-half month's deliveries) at the end of each year.<table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="594" align="left" colspan="8" style="border-top: 1px solid #000000;" height="19">TOTAL SEMPRA UTILITIES REVENUES AT SEMPRA ENERGY CONSOLIDATED(1)</td></tr><tr><td width="594" align="left" height="19" colspan="8">(Dollars in millions)</td></tr><tr><td height="14" width="30" align="left"> </td><td height="14" width="273" align="left"> </td><td width="291" align="center" colspan="6" style="border-bottom: 1px solid #000000;" height="14">Years ended December 31,</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="30"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="273"> </td><td width="97" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td><td width="97" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2008 </td><td width="97" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2007 </td></tr><tr><td width="303" align="left" colspan="2" style="border-top: 1px solid #000000;" height="16">Natural gas revenues</td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="75"> 3,801 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="75"> 5,419 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="75"> 4,869 </td></tr><tr><td width="303" align="left" height="16" colspan="2">Electric revenues</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="75"> 2,419 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="75"> 2,553 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="75"> 2,184 </td></tr><tr><td width="303" align="left" colspan="2" style="border-bottom: 3px solid #000000;" height="16">Total</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="75"> 6,220 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="75"> 7,972 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="75"> 7,053 </td></tr><tr><td height="16" style="border-top: 3px solid #000000;" align="center" width="30">(1)</td><td width="564" align="left" colspan="7" style="border-top: 3px solid #000000;" height="16">Excludes intercompany revenues.</td></tr></table>As we discuss in Note 16, beginning April 1, 2008, the SDG&E and SoCalGas core natural gas supply portfolios were combined and are managed by SoCalGas. Effective as of that date, SoCalGas procures natural gas for SDG&E’s core customers. Core customers are primarily residential and small commercial and industrial customers. This core gas procurement function is considered a shared service, therefore amounts related to SDG&E are not included in SoCalGas' income statement. We provide additional information concerning utility revenue recognition in "Regulatory Matters" above. Sempra Global Sempra Commodities As we discuss in Notes 3 and 4, on April 1, 2008, our commodities-marketing businesses, previously wholly owned subsidiaries of Sempra Energy, were sold into RBS Sempra Commodities, a partnership jointly owned by Sempra Energy and The Royal Bank of Scotland. Therefore, beginning April 1, 2008, we account for our earnings in the partnership under the equity method. RBS Sempra Commodities generates most of its revenues from trading and marketing activities in natural gas, electricity, petroleum, petroleum products, base metals and other commodities. RBS Sempra Commodities quotes bid and ask prices to end users and other market makers. It also earns trading profits as a dealer by structuring and executing transactions. Principal transaction revenues are recognized on a trade-date basis and include realized gains and losses and the net change in unrealized gains and losses. RBS Sempra Commodities uses derivative instruments (which we discuss further in Note 11) to reduce its exposure to unfavorable changes in market prices. Non-derivative contracts are accounted for on an accrual basis and the related profit or loss is recognized as the contracts are settled. Sempra Generation Sempra Generation generates revenues primarily from selling electricity to governmental and wholesale power marketing entities. These revenues are recognized as the electricity is delivered. In each of 2009, 2008 and 2007, Sempra Generation's electricity sales to the DWR accounted for a significant portion of its revenues. Sempra Generation’s revenues also include net realized gains and losses and the net change in the fair value of unrealized gains and losses on derivative contracts for power and natural gas. Sempra Pipelines & Storage Sempra Pipelines & Storage has consolidated foreign subsidiaries in Mexico. The pipeline operations in Mexico recognize revenues on the sale and transportation of natural gas as deliveries are made. The natural gas distribution utility in Mexico applies GAAP for regulated utilities, as we discuss above. Sempra Pipelines & Storage's natural gas storage and transportation operations recognize revenues when they provide services in accordance with contractual agreements for the storage and transportation services. Sempra Pipelines & Storage’s revenues also include net realized gains and losses and the net change in the fair value of unrealized gains and losses on derivative contracts for natural gas. Sempra LNG Sempra LNG recognizes revenues on the sale of natural gas as deliveries are made and as injection services are performed, and from reservation fees under terminal capacity agreements. Sempra LNG’s revenues also include net realized gains and losses and the net change in the fair value of unrealized gains and losses on derivative contracts for natural gas.</div> REVENUESSempra UtilitiesThe Sempra Utilities generate revenues primarily from deliveries to their customers of electricity by SDG&E and natural gas by both false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true