1.0.0.3 false CONTRACTUAL COMMITMENTS 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 Contractual Commitments Disclosure 1 us-gaap_CommitmentsDisclosureTextBlock 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">Natural Gas Contracts Natural Gas SoCalGas has the responsibility for procuring natural gas for both SDG&E’s and SoCalGas’ core customers in a combined portfolio. SoCalGas buys natural gas under short-term and long-term contracts for this portfolio. Purchases are from various southwestern U.S., U.S. Rockies, Canadian and California suppliers and are primarily based on published monthly bid-week indices. SoCalGas transports natural gas primarily under long-term firm interstate pipeline capacity agreements that provide for annual reservation charges, which are recovered in rates. SoCalGas has commitments with interstate pipeline companies for firm pipeline capacity under contracts that expire at various dates through 2025. At December 31, 2009, the future minimum payments under existing natural gas contracts and natural gas storage and transportation contracts were:<table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="533" align="left" height="17" colspan="7">Sempra Energy Consolidated</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="242">(Dollars in millions)</td><td width="97" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Transportation</td><td width="97" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Natural Gas(1)</td><td width="97" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Total(1)</td></tr><tr><td height="17" style="border-top: 1px solid #000000;" align="right" width="242">2010 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="75"> 123 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="75"> 1,039 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="75"> 1,162 </td></tr><tr><td height="17" width="242" align="right">2011 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 80 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 315 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 395 </td></tr><tr><td height="17" width="242" align="right">2012 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 46 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 7 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 53 </td></tr><tr><td height="17" width="242" align="right">2013 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 45 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 7 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 52 </td></tr><tr><td height="17" width="242" align="right">2014 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 35 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 6 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 41 </td></tr><tr><td height="17" width="242" align="left">Thereafter</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="75"> 176 </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="75"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="75"> 176 </td></tr><tr><td height="18" style="border-bottom: 3px solid #000000;" align="left" width="242">Total minimum payments</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="75"> 505 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="75"> 1,374 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="75"> 1,879 </td></tr><tr><td width="533" align="left" colspan="7" style="border-top: 3px solid #000000;" height="18">(1) Excludes amounts related to Sempra LNG's contracts with Tangguh PSC and RasGas discussed below.</td></tr></table><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="534" align="left" height="17" colspan="7">SoCalGas</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="243">(Dollars in millions)</td><td width="97" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Transportation</td><td width="97" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Natural Gas</td><td width="97" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Total</td></tr><tr><td height="17" style="border-top: 1px solid #000000;" align="right" width="243">2010 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="75"> 123 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="75"> 1,003 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="75"> 1,126 </td></tr><tr><td height="17" width="243" align="right">2011 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 80 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 309 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 389 </td></tr><tr><td height="17" width="243" align="right">2012 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 46 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 3 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 49 </td></tr><tr><td height="17" width="243" align="right">2013 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 45 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 3 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 48 </td></tr><tr><td height="17" width="243" align="right">2014 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 35 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 3 </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 38 </td></tr><tr><td height="17" width="243" align="left">Thereafter</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="75"> 176 </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="75"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="75"> 176 </td></tr><tr><td height="18" style="border-bottom: 3px solid #000000;" align="left" width="243">Total minimum payments</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="75"> 505 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="75"> 1,321 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="75"> 1,826 </td></tr></table>Total payments under these natural gas contracts were:<table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="14" width="301" align="left"> </td><td width="273" 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="301">(Dollars in millions)</td><td width="91" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td><td width="91" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2008 </td><td width="91" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2007 </td></tr><tr><td height="16" style="border-top: 1px solid #000000;" align="left" width="301">Sempra Energy Consolidated</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="16">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="75"> 1,754 </td><td height="16" style="border-top: 1px solid #000000;" align="right" width="16">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="75"> 3,469 </td><td height="16" style="border-top: 1px solid #000000;" align="right" width="16">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="75"> 2,976 </td></tr><tr><td height="16" width="301" align="left">SDG&E</td><td height="16" width="16" align="right"> </td><td height="16" width="75" align="right"> - </td><td height="16" width="16" align="right"> </td><td height="16" width="75" align="right"> 12 </td><td height="16" width="16" align="right"> </td><td height="16" width="75" align="right"> 390 </td></tr><tr><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="301">SoCalGas</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="16"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="75"> 1,452 </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="16"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="75"> 3,145 </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="16"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="75"> 2,413 </td></tr></table>LNG Sempra LNG has a purchase agreement with Tangguh PSC Contractors (Tangguh PSC) for the supply of LNG equivalent to 500 million cubic feet of natural gas per day to be delivered from Tangguh PSC’s Indonesian liquefaction facility to the Energía Costa Azul receipt terminal. The contracted deliveries under this 20-year agreement began in late 2009 and will use half of the capacity of Energía Costa Azul. The price of LNG under this contract is based on the Southern California border index. Although the LNG purchase contract specifies a minimum number of cargoes to be delivered, under the terms of the contract, Tangguh PSC may divert certain cargoes to other customers, which would reduce amounts paid under the contract by Sempra LNG. As of December 31, 2009, if all cargoes under the contract were to be delivered, future payments under this contract would be <ul><li>$847 million in 2010 </li><li>$1.0 billion in 2011 </li><li>$1.0 billion in 2012 </li><li>$1.1 billion in 2013 </li><li>$1.1 billion in 2014 </li><li>$18.2 billion for the remainder of the contract term </li></ul>The amounts above are based on forward prices of the Southern California border index price from 2010 to 2014, plus an estimated one percent escalation per year beyond 2014. Sempra LNG has a natural gas sales contract to sell a portion of the LNG purchased from Tangguh PSC to Mexico’s national electric company, Comisión Federal de Electricidad (CFE) at prices that are based on the Southern California border index price. Sempra LNG also has a natural gas sales agreement with RBS Sempra Commodities for RBS Sempra Commodities to market any volumes purchased from Tangguh PSC that are not sold by Sempra LNG to the CFE. Sempra LNG has a purchase agreement with Ras Laffan Liquefied Natural Gas Company Limited (RasGas) for the supply of LNG cargoes to be delivered by RasGas to Sempra LNG’s Cameron LNG receipt terminal. Under this agreement, effective August 2009 through the end of 2010, RasGas has the option to deliver and sell up to 52 cargoes to Sempra LNG, at a price based on market prices in the U.S. Gulf of Mexico. As of December 31, 2009, RasGas may deliver up to 32 cargoes through 2010. If all cargoes were to be delivered, payments in 2010 for these cargoes would be approximately $813 million. Purchased-Power Contracts For 2010, SDG&E expects to receive 25 percent of its customer power requirements from DWR allocations. The remaining requirements are expected to be met as follows <ul><li>SONGS: 17 percent </li><li>Long-term contracts: 23 percent (of which 10 percent is provided by renewable energy contracts expiring on various dates through 2025) </li><li>Other SDG&E-owned generation (including Palomar) and tolling contracts (including OMEC and Orange Grove): 28 percent </li><li>Spot market purchases: 7 percent </li></ul>The long-term contracts expire on various dates through 2035. At December 31, 2009, the estimated future minimum payments under SDG&E’s long-term purchased-power contracts (not including the DWR allocations) were:<table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="346" align="left" colspan="2" style="border-bottom: 1px solid #000000;" height="14">(Dollars in millions)</td><td width="97" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14"> </td></tr><tr><td height="17" style="border-top: 1px solid #000000;" align="right" width="47">2010 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="299"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="75"> 335 </td></tr><tr><td height="17" width="47" align="right">2011 </td><td height="17" width="299" align="left"> </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 238 </td></tr><tr><td height="17" width="47" align="right">2012 </td><td height="17" width="299" align="left"> </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 238 </td></tr><tr><td height="17" width="47" align="right">2013 </td><td height="17" width="299" align="left"> </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 235 </td></tr><tr><td height="17" width="47" align="right">2014 </td><td height="17" width="299" align="left"> </td><td height="17" width="22" align="left"> </td><td height="17" width="75" align="right"> 194 </td></tr><tr><td width="346" align="left" height="17" colspan="2">Thereafter</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="75"> 1,425 </td></tr><tr><td width="346" align="left" colspan="2" style="border-bottom: 3px solid #000000;" height="18">Total minimum payments(1)</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="75"> 2,665 </td></tr><tr><td height="18" style="border-top: 3px solid #000000;" align="center" width="47">(1)</td><td width="396" align="left" colspan="3" style="border-top: 3px solid #000000;" height="18"> Excludes amounts related to Otay Mesa VIE and Orange Grove VIE as they are consolidated at SDG&E.</td></tr></table>The payments represent capacity charges and minimum energy purchases. SDG&E is required to pay additional amounts for actual purchases of energy that exceed the minimum energy commitments. Excluding DWR-allocated contracts, total payments under the contracts were: <ul><li>$413 million in 2009 </li><li>$393 million in 2008 </li><li>$351 million in 2007 </li></ul>Construction and Development Projects Sempra Energy has various capital projects in progress in the United States and in Mexico. The following is a summary of contractual commitments and contingencies related to the construction projects. SDG&E At December 31, 2009, SDG&E has commitments to make future payments of $453 million for construction projects including: <ul><li>$219 million for implementation of the Advanced Metering Infrastructure Program; </li><li>$166 million for the engineering, material procurement and construction costs associated with the Sunrise Powerlink project; and </li><li>$49 million related to the replacement of the steam generators and other construction projects at SONGS. </li></ul>SDG&E expects future payments under these contractual commitments to be $355 million in 2010, $81 million in 2011 and $17 million in 2012. SoCalGas At December 31, 2009, SoCalGas has commitments to make future payments of $48 million for construction and infrastructure improvements for natural gas transmission and distribution operations. The future payments under these contractual commitments are expected to be $47 million in 2010 and $1 million in 2011. Sempra Pipelines & Storage Sempra Pipelines & Storage has commitments for the construction of natural gas storage facilities at Bay Gas and Mississippi Hub. At December 31, 2009, Sempra Pipelines & Storage expects to make payments of $16 million and $30 million, respectively, in 2010 under these contracts. Sempra Pipelines & Storage owns 75 percent of the partnership that is developing the Liberty Gas Storage facility located in Cameron Parish, Louisiana. The partnership is committed to construction agreements and expects to make payments of $1 million in 2010 under these agreements. Sempra Generation's Contract with the DWR In May 2001, Sempra Generation entered into a ten-year agreement with the DWR to supply up to 1,900 MW of power to California. Sempra Generation delivers energy to the DWR, primarily from its portfolio of natural gas-fired plants in the western United States and Baja California, Mexico. Additional information concerning this contract is provided under "Legal Proceedings - DWR Contract" above.</div> Natural Gas Contracts Natural GasSoCalGas has the responsibility for procuring natural gas for both SDG&E’s and SoCalGas’ core customers in a false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true