2.2.0.25falsefalse011600 - Disclosure - COMMITMENTS AND CONTINGENCIEStruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010 USD ($) $FROM_Jan01_2010_TO_Dec31_2010http://www.sec.gov/CIK0001032208duration2010-01-01T00:00:002010-12-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170PureStandardhttp://www.xbrl.org/2003/instancepurexbrli0SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0sre_NotesToConsolidatedFinancialStatementsAbstractsrefalsenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalseNotes to Consolidated Financial Statements [Abstract]3false0us-gaap_CommitmentsAndContingenciesDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00NOTE 16. COMMITMENTS AND CONTINGENCIESLEGAL PROCEEDINGSWe accrue losses for legal proceedings when it is probable that a loss has been incurred and the amounts of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to estimate with reasonable certainty the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverages and could materially adversely affect our business, cash flows, results of operations, and financial condition.At December 31, 2010, Sempra Energy's accrued liabilities for material legal proceedings, on a consolidated basis, were $996 million, of which $201 million is for resolved matters. At December 31, 2010, these accrued liabilities for SDG&E and SoCalGas were $763 million and $25 million, respectively.Liabilities of $762 million at Sempra Energy and SDG&E are offset by a settlement receivable for wildfire litigation of $300 million and restricted cash of $110 million received in 2010 in connection with the settlement. SDG&E 2007 Wildfire LitigationIn October 2007, San Diego County experienced several catastrophic wildfires. Reports issued by the California Department of Forestry and Fire Protection (Cal Fire) concluded that two of these fires (the Witch and Rice fires) were SDG&E "power line caused" and that a third fire (the Guejito fire) occurred when a wire securing a Cox Communications' (Cox) fiber optic cable came into contact with an SDG&E power line "causing an arc and starting the fire." Cal Fire reported that the Rice fire burned approximately 9,500 acres and damaged 206 homes and two commercial properties, and the Witch and Guejito fires merged and eventually burned approximately 198,000 acres, resulting in two fatalities, approximately 40 firefighters injured and approximately 1,141 homes destroyed. A September 2008 staff report issued by the Consumer Protection and Safety Division of the CPUC reached substantially the same conclusions as the Cal Fire reports, but also contended that the power lines involved in the Witch and Rice fires and the lashing wire involved in the Guejito fire were not properly designed, constructed and maintained. In April 2010, proceedings initiated by the CPUC to determine if any of its rules were violated were settled with SDG&E's payment of $14.75 million.Numerous parties have sued SDG&E and Sempra Energy in San Diego County Superior Court seeking recovery of unspecified amounts of damages, including punitive damages, from the three fires. These include owners and insurers of properties that were destroyed or damaged in the fires and public entities seeking recovery of firefighting, emergency response, and environmental costs. They assert various bases for recovery, including inverse condemnation based upon a California Court of Appeal decision finding that another California investor-owned utility was subject to strict liability, without regard to foreseeability or negligence, for property damages resulting from a wildfire ignited by power lines. In October 2010, the Court of Appeal affirmed the trial court's ruling that these claims must be pursued in individual lawsuits, rather than as class actions on behalf of all persons who incurred wildfire damages. In February 2011, the California Supreme Court denied a petition for review of the affirmance. No trial date is currently scheduled. SDG&E filed cross-complaints against Cox seeking indemnification for any liability that SDG&E might incur in connection with the Guejito fire, two SDG&E contractors seeking indemnification in connection with the Witch fire, and one SDG&E contractor seeking indemnification in connection with the Rice fire. In December 2010, SDG&E and Cox reached an agreement settling SDG&E's claims against Cox and Cox's insurers in the 2007 wildfire litigation (Cox Settlement). Among other things, the settlement agreement provides that:<ul><li style="margin-left:9.35px;list-style:square;">SDG&E will receive approximately $444 million, which SDG&E will use for wildfire related expenditures.</li></ul><ul><li style="margin-left:9.35px;list-style:square;">SDG&E will defend and indemnify Cox against all compensatory damage claims and related costs arising out of the wildfires.</li></ul>At December 31, 2010, the $300 million Settlement Receivable Related to Wildfire Litigation on the Consolidated Balance Sheets of Sempra Energy and SDG&E represents cash to be received in accordance with the terms of the Cox Settlement in several payments through March 2011. The Reserve for Wildfire Litigation on their Consolidated Balance Sheets at December 31, 2010, was increased in the fourth quarter of 2010 to include estimated additional liabilities for wildfire claims that related to the Cox Settlement. SDG&E has settled substantially all of the 19,000 claims of homeowner insurers relating to the three fires. Under the settlement agreements, SDG&E has paid or will pay 57.5 percent of the approximately $1.6 billion paid or reserved for payment by the insurers to their policyholders and received an assignment of the insurers' claims against other parties potentially responsible for the fires.The wildfire litigation also includes claims of non-insurer plaintiffs for damage to uninsured and underinsured structures, business interruption, evacuation expenses, agricultural damage, emotional harm, personal injuries and other losses. SDG&E has settled the claims of approximately 750 of these plaintiffs. Of the approximately 2,380 remaining plaintiffs, approximately 1,270 have thus far submitted settlement demands or damage information. Individual and business claims total approximately $950 million and government entity claims total approximately $110 million. SDG&E expects to receive additional settlement demands and damage estimates as settlement negotiations continue.SDG&E's settlement of claims and defense costs have exceeded its $1.1 billion of liability insurance coverage. It expects that its wildfire reserves and amounts paid to resolve wildfire claims will continue to increase as it obtains additional information; it is presently unable to reasonably estimate the amount or timing of recoveries from other potentially responsible parties, other than Cox.SDG&E has concluded, however, that it is probable that it will be permitted to recover from its utility customers substantially all reasonably incurred costs of resolving wildfire claims in excess of its liability insurance coverage and any amounts recovered from other potentially responsible parties. Accordingly, although such recovery will require future regulatory actions, as of December 31, 2010, SDG&E recorded a regulatory asset in an amount substantially equal to the aggregate amount it has paid or reserved for payment for the resolution of wildfire claims and related costs in excess of its liability insurance coverage and amounts received or to be received from Cox. SDG&E will increase the regulatory asset as additional amounts are paid or reserves are recorded and reduce it by any amounts recovered from other potentially responsible parties. As a consequence of the expected recovery of wildfire costs from utility customers, Sempra Energy and SDG&E expect no significant earnings impact from the resolution of the remaining wildfire claims. However, SDG&E's cash flow may be adversely affected due to the timing differences between the resolution of claims and the recoveries from other potentially responsible parties and utility customers, which may extend over a number of years. Also, recovery from customers will require future regulatory actions, and a failure to obtain recovery, or any negative assessment of the likelihood of recovery, would likely have a material adverse effect on Sempra Energy's and SDG&E's cash flows and results of operations.SDG&E will continue to gather information to evaluate and assess the remaining wildfire claims and the likelihood, amount and timing of related recoveries from other potentially responsible parties and utility customers and will make appropriate adjustments to wildfire reserves and the related regulatory asset as additional information becomes available.Sempra Pipelines & StorageLiberty Gas Storage, LLC (Liberty) received a demand for arbitration from Williams Midstream Natural Gas Liquids, Inc. (Williams) on February 8, 2011 related to a Sublease Agreement (Sublease) between Liberty and Williams. Williams alleges that Liberty was negligent in its attempt to convert certain salt caverns to natural gas storage and thereby damaged the caverns. Williams alleges damages of $56.7 million. Liberty believes that the claims are without merit and believes that it has complied with all of its obligations to Williams and has properly terminated the Sublease. Liberty intends to vigorously defend itself and believes it has counterclaims against Williams which it will assert in the arbitration proceeding. Liberty, which is a consolidated entity of Sempra Energy, has made no accrual for this matter as of December 31, 2010. We discuss other matters related to these caverns in Note 1.Sempra LNG Sempra LNG has been engaged in a long-running land dispute relating to property adjacent to its Energía Costa Azul liquefied natural gas (LNG) receipt terminal near Ensenada, Mexico. The adjacent property is not required by environmental or other regulatory permits for the operation of the terminal. A claimant to the adjacent property has nonetheless asserted that his health and safety are endangered by the operation of the facility. In June 2010, a Mexican federal appeals court revoked a district court order, issued at the behest of the claimant, directing Mexican regulatory authorities to provisionally suspend authorizations for the operation of the LNG terminal. In February 2011, based on a complaint by the claimant, the new Ensenada Mayor attempted to temporarily close the terminal based on claims of irregularities in municipal permits issued six years earlier. This attempt was promptly countermanded by Mexican federal and Baja California state authorities. No terminal permits or operations were affected as a result of these proceedings or events and the terminal has continued to operate normally. Sempra LNG expects additional Mexican court proceedings and governmental actions regarding the claimant's assertions as to whether the terminal's permits should be modified or revoked in any manner. The property claimant has also filed a lawsuit in U.S. district court in San Diego seeking compensatory and punitive damages and earnings from the Energía Costa Azul LNG terminal based on his allegations that he was wrongfully evicted from the adjacent property and that he has been harmed by other allegedly improper actions. Other LitigationIn August 2007, the U.S. Court of Appeals for the Ninth Circuit issued a decision reversing and remanding certain FERC orders declining to provide refunds regarding short-term bilateral sales up to one month in the Pacific Northwest for the December 2000 to June 2001 time period. The FERC has not yet acted on the court's order.  In December 2010, the FERC approved a comprehensive settlement previously reached by Sempra Energy and RBS Sempra Commodities with the State of California that we discuss below under "Resolved Matters – Energy Crisis Litigation Settlement – FERC Refund Proceedings." The settlement resolves all issues with regard to sales between the DWR and Sempra Commodities in the Pacific Northwest, but potential claims may exist regarding sales between Sempra Commodities and other buyers in the Pacific Northwest.    Pursuant to the agreements related to the formation of RBS Sempra Commodities, we have indemnified RBS should the liability from the final resolution of these matters be greater than the reserves related to Sempra Commodities. Pursuant to our agreement with the Noble Group as discussed in Note 4, we have also indemnified Noble Americas Gas & Power Corp. and its affiliates for all losses incurred by such parties resulting from these proceedings as related to Sempra Commodities.Sempra Energy and several subsidiaries, along with three oil and natural gas companies, the City of Beverly Hills, and the Beverly Hills Unified School District, are defendants in a toxic tort lawsuit filed in Los Angeles County Superior Court by approximately 1,000 plaintiffs. This lawsuit claims that various emissions resulted in cancer or fear of cancer. We have submitted the case to our insurers, who have reserved their rights with respect to coverage. In November 2006, the court granted the defendants' summary judgment motions based on lack of medical causation for the 12 initial plaintiffs scheduled to go to trial first. The court also granted summary judgment excluding punitive damages. The court has stayed the case as to the remaining plaintiffs pending the appeal of the rulings. A mediation occurred in June 2010, after which the plaintiffs' counsel agreed to recommend a settlement of the lawsuits as to Sempra Energy and its subsidiaries for an amount that is not significant. Any such settlement will require approval by each of the plaintiffs. If approval is obtained, finalization of the settlement is expected to occur within six months.We are also defendants in ordinary routine litigation incidental to our businesses, including personal injury, product liability, property damage and other claims. California juries have demonstrated an increasing willingness to grant large awards, including punitive damages, in these cases.Resolved MattersThe accrued liabilities for legal proceedings described above include amounts for matters resolved in 2010 and prior years that are primarily related to certain litigation arising out of the 2000 – 2001 California energy crisis. We discuss certain commitments remaining from an energy crisis matter resolved prior to 2010 below under "Other Commitments."The following is a description of the 2010 litigation settlements relating to California energy crisis matters.Energy Crisis Litigation SettlementSempra Energy, RBS Sempra Commodities and Sempra Generation reached a comprehensive settlement with the State of California to resolve substantially all of their remaining energy crisis litigation for a total payment of $410 million. Described in more detail below, the matters resolved include the settlement of multiple actions brought by the California Department of Water Resources (DWR) and other parties with respect to the validity, pricing and operation of Sempra Generation's contract with the DWR and the settlement of the FERC refund and manipulation proceedings against RBS Sempra Commodities. The FERC approved both settlements in December 2010.The payment of $410 million was funded largely from previously recorded reserves and receivables at RBS Sempra Commodities. Sempra Energy also recorded an additional pretax charge of $159 million in the first quarter of 2010 to provide for the remainder of the settlement, including $139 million at Sempra Generation and $20 million at Sempra Commodities. The amount at Sempra Commodities was reduced by $11 million pretax in the fourth quarter of 2010 to reflect a receipt in January 2011 from an unrelated party that had a joint liability for the claim. In January 2011, Sempra Generation paid $130 million to the DWR under the terms of the settlement agreement. DWR Contract Among other relief from existing and potential disputes, all of the pending disputes related to the DWR contract have now been dismissed or withdrawn. These matters include the 2002 challenge brought by the California Energy Oversight Board (CEOB) and the CPUC at the FERC asserting that the DWR contract with Sempra Generation contained unjust and unreasonable rates; the DWR's appeal in response to the denial of its 2002 claims for misrepresentation and breach of contract in San Diego Superior Court; and the 2008 arbitration proceedings in which the DWR asserted that Sempra Generation had breached the parties' agreement in various operational respects, and violated the order issued by an earlier arbitration panel relating to the amount refunded to the DWR and the manner in which Sempra Generation operates.FERC Refund Proceedings The settlement involving RBS Sempra Commodities includes, among other things, resolution of the following matters: the FERC's investigation of prices charged by various electric suppliers to buyers in the California Power Exchange (PX) and Independent System Operator (ISO) markets; a complaint involving short-term bilateral sales up to one month in the Pacific Northwest (that portion of the proceeding involving sales between the DWR and Sempra Commodities); the California Attorney General's complaint that electricity sellers had failed to comply with the FERC's quarterly reporting requirements; and the California Attorney General's complaint seeking to collect for alleged overcharges related to all short-term bilateral transactions between sellers and the DWR from January 18, 2001 through June 20, 2001.FERC Manipulation Investigation The settlement involving RBS Sempra Commodities also includes resolution of the FERC's separate investigation into whether there was manipulation of short-term energy markets in the western United States that would constitute violations of applicable tariffs and warrant disgorgement of associated profits.Sempra Energy and RBS Sempra Commodities have recorded reserves for the full amount of the settlement and other litigation. Wildfire Reserves and Insurance and Settlement ReceivablesIn 2009 and 2010, as liabilities for wildfire litigation have become reasonably estimable, SDG&E has recorded related reserves as a liability. The impact of this liability is offset by (1) current receivables resulting from SDG&E's liability insurance (at December 31, 2009) and from amounts to be received from Cox (at December 31, 2010), and (2) the recognition of a regulatory asset, as discussed above, for reserves in excess of the insurance coverage and the Cox settlement and (3) $110 million of restricted cash received from Cox in 2010. There was no effect on SDG&E's or Sempra Energy's 2009 earnings from the recording of the reserves. The impact on their 2010 earnings was $20 million (after tax) for the year ended December 31, 2010. At December 31, 2010, wildfire litigation reserves were $762 million ($639 million in current and $123 million in long-term) and the receivable from Cox was $300 million.Natural Gas Contracts Natural GasSoCalGas 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 producing regions in the southwestern U.S., U.S. Rockies, and Canada 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, 2010, the future minimum payments under existing natural gas contracts and natural gas storage and transportation contracts were<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 17px"><td style="width: 31px; text-align:left;border-color:#000000;min-width:31px;">Sempra Energy Consolidated</td><td style="width: 242px; text-align:left;border-color:#000000;min-width:242px;"> </td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"> </td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"> </td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"> </td></tr><tr style="height: 14px"><td colspan="2" style="width: 273px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:273px;">(Dollars in millions)</td><td colspan="2" style="width: 97px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:97px;">Transportation</td><td colspan="2" style="width: 97px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:97px;">Natural Gas(1)</td><td colspan="2" style="width: 97px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:97px;">Total(1)</td></tr><tr style="height: 17px"><td colspan="2" style="width: 273px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:273px;">2011</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 138</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 567</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 705</td></tr><tr style="height: 17px"><td colspan="2" style="width: 273px; text-align:left;border-color:#000000;min-width:273px;">2012</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 119</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 130</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 249</td></tr><tr style="height: 17px"><td colspan="2" style="width: 273px; text-align:left;border-color:#000000;min-width:273px;">2013</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 94</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 136</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 230</td></tr><tr style="height: 17px"><td colspan="2" style="width: 273px; text-align:left;border-color:#000000;min-width:273px;">2014</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 70</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 140</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 210</td></tr><tr style="height: 17px"><td colspan="2" style="width: 273px; text-align:left;border-color:#000000;min-width:273px;">2015</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 57</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 3</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 60</td></tr><tr style="height: 17px"><td colspan="2" style="width: 273px; text-align:left;border-color:#000000;min-width:273px;">Thereafter</td><td style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 271</td><td style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> ―</td><td style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 271</td></tr><tr style="height: 18px"><td colspan="2" style="width: 273px; border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:273px;">Total minimum payments</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 749</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 976</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 1,725</td></tr><tr style="height: 18px"><td style="width: 31px; border-top-style:solid;border-top-width:3px;text-align:left;border-color:#000000;min-width:31px;">(1)</td><td colspan="7" style="width: 533px; border-top-style:solid;border-top-width:3px;text-align:left;border-color:#000000;min-width:533px;">Excludes amounts related to LNG purchase agreements at Sempra LNG discussed below.</td></tr></table></div><div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 17px"><td colspan="7" style="width: 534px; text-align:left;border-color:#000000;min-width:534px;">SoCalGas</td></tr><tr style="height: 14px"><td style="width: 243px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:243px;">(Dollars in millions)</td><td colspan="2" style="width: 97px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:97px;">Transportation</td><td colspan="2" style="width: 97px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:97px;">Natural Gas</td><td colspan="2" style="width: 97px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:97px;">Total</td></tr><tr style="height: 17px"><td style="width: 243px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:243px;">2011</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 119</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 437</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 556</td></tr><tr style="height: 17px"><td style="width: 243px; text-align:left;border-color:#000000;min-width:243px;">2012</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 100</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 2</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 102</td></tr><tr style="height: 17px"><td style="width: 243px; text-align:left;border-color:#000000;min-width:243px;">2013</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 75</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 2</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 77</td></tr><tr style="height: 17px"><td style="width: 243px; text-align:left;border-color:#000000;min-width:243px;">2014</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 51</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 2</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 53</td></tr><tr style="height: 17px"><td style="width: 243px; text-align:left;border-color:#000000;min-width:243px;">2015</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 38</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 3</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 41</td></tr><tr style="height: 17px"><td style="width: 243px; text-align:left;border-color:#000000;min-width:243px;">Thereafter</td><td style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 145</td><td style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> ―</td><td style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 145</td></tr><tr style="height: 18px"><td style="width: 243px; border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:243px;">Total minimum payments</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 528</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 446</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 974</td></tr></table></div>Total payments under natural gas contracts were:<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 14px"><td style="width: 301px; text-align:left;border-color:#000000;min-width:301px;"> </td><td colspan="6" style="width: 273px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:273px;">Years ended December 31,</td></tr><tr style="height: 14px"><td style="width: 301px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:301px;">(Dollars in millions)</td><td colspan="2" style="width: 91px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:91px;">2010</td><td colspan="2" style="width: 91px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:91px;">2009</td><td colspan="2" style="width: 91px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:91px;">2008</td></tr><tr style="height: 16px"><td style="width: 301px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:301px;">Sempra Energy Consolidated</td><td style="width: 16px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:16px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 2,097</td><td style="width: 16px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:16px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 1,754</td><td style="width: 16px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:16px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 3,469</td></tr><tr style="height: 16px"><td style="width: 301px; text-align:left;border-color:#000000;min-width:301px;">SDG&E</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> ―</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> ―</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 12</td></tr><tr style="height: 16px"><td style="width: 301px; border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:301px;">SoCalGas</td><td style="width: 16px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 1,936</td><td style="width: 16px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 1,452</td><td style="width: 16px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 3,145</td></tr></table></div>LNGSempra LNG has various purchase agreements with major international companies for the supply of LNG to its Energía Costa Azul and Cameron receipt terminals. The agreements range from short-term to multi-year periods and are priced using a predetermined formula based on natural gas market indices. Although these contracts specify a number of cargoes to be delivered, under their terms, customers may divert certain cargoes, which would reduce amounts paid under the contracts by Sempra LNG. As of December 31, 2010, if all cargoes under the contracts were to be delivered, future payments under these contracts would be <ul><li style="margin-left:9.35px;list-style:square;">$1 billion in 2011 </li><li style="margin-left:9.35px;list-style:square;">$1.1 billion in 2012 </li><li style="margin-left:9.35px;list-style:square;">$972 million in 2013 </li><li style="margin-left:9.35px;list-style:square;">$833 million in 2014</li><li style="margin-left:9.35px;list-style:square;">$858 million in 2015</li></ul><ul><li style="margin-left:9.35px;list-style:square;">$13.4 billion in 2016 – 2029</li></ul>The amounts above are based on forward prices of the index applicable to each contract from 2011 to 2020, plus an estimated one percent escalation per year beyond 2020. The LNG commitment amounts above are based on Sempra LNG's commitment to accept the maximum possible delivery of cargoes under the agreements. Actual LNG purchases in 2010 have been significantly lower than the maximum amount possible.Purchased-Power Contracts For 2011, SDG&E expects to receive 16 percent of its customer power requirements from DWR allocations. The remaining requirements are expected to be met as follows:<ul><li style="margin-left:9.35px;list-style:square;">SONGS: 20 percent</li><li style="margin-left:9.35px;list-style:square;">Long-term contracts: 18 percent (of which 7 percent is provided by renewable energy contracts expiring on various dates through 2025) </li><li style="margin-left:9.35px;list-style:square;">Other SDG&E-owned generation (including Palomar, Miramar and El Dorado) and tolling contracts (including OMEC): 36 percent</li></ul><ul><li style="margin-left:9.35px;list-style:square;">Spot market purchases: 10 percent</li></ul>The long-term contracts expire on various dates through 2035. At December 31, 2010, the estimated future minimum payments under SDG&E's long-term purchased-power contracts (not including the DWR allocations) were:<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 14px"><td colspan="2" style="width: 346px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:346px;">(Dollars in millions)</td><td colspan="2" style="width: 97px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:97px;"> </td></tr><tr style="height: 17px"><td style="width: 47px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:47px;">2011</td><td style="width: 299px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:299px;"> </td><td style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 312</td></tr><tr style="height: 17px"><td style="width: 47px; text-align:left;border-color:#000000;min-width:47px;">2012</td><td style="width: 299px; text-align:left;border-color:#000000;min-width:299px;"> </td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 253</td></tr><tr style="height: 17px"><td style="width: 47px; text-align:left;border-color:#000000;min-width:47px;">2013</td><td style="width: 299px; text-align:left;border-color:#000000;min-width:299px;"> </td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 251</td></tr><tr style="height: 17px"><td style="width: 47px; text-align:left;border-color:#000000;min-width:47px;">2014</td><td style="width: 299px; text-align:left;border-color:#000000;min-width:299px;"> </td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 210</td></tr><tr style="height: 17px"><td style="width: 47px; text-align:left;border-color:#000000;min-width:47px;">2015</td><td style="width: 299px; text-align:left;border-color:#000000;min-width:299px;"> </td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 188</td></tr><tr style="height: 17px"><td colspan="2" style="width: 346px; text-align:left;border-color:#000000;min-width:346px;">Thereafter</td><td style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 1,137</td></tr><tr style="height: 18px"><td colspan="2" style="width: 346px; border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:346px;">Total minimum payments(1)</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 2,351</td></tr><tr style="height: 18px"><td style="width: 47px; border-top-style:solid;border-top-width:3px;text-align:center;border-color:#000000;min-width:47px;">(1)</td><td colspan="3" style="width: 396px; border-top-style:solid;border-top-width:3px;text-align:left;border-color:#000000;min-width:396px;">Excludes amounts related to Otay Mesa VIE, as it is consolidated by Sempra Energy and SDG&E, and purchase agreements accounted for as capital leases.</td></tr></table></div>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 purchased-power contracts were<ul><li style="margin-left:9.35px;list-style:square;">$314 million in 2010 </li><li style="margin-left:9.35px;list-style:square;">$413 million in 2009 </li></ul><ul><li style="margin-left:9.35px;list-style:square;">$393 million in 2008 </li></ul>OPERATING Leases Sempra Energy, SDG&E and SoCalGas have operating leases on real and personal property expiring at various dates from 2011 to 2045. Certain leases on office facilities contain escalation clauses requiring annual increases in rent ranging from two percent to six percent at Sempra Energy and three percent to five percent at both SDG&E and SoCalGas. The rentals payable under these leases may increase by a fixed amount each year or by a percentage of a base year, and most leases contain extension options that we could exercise. The Sempra Utilities had operating lease agreements for fleet vehicles with GE Capital which they terminated in November 2008. At that time, to replace the prior agreements, the Sempra Utilities entered into a new operating lease agreement for future acquisitions of fleet vehicles with RBS Asset Finance, Inc. with an aggregate maximum lease limit of $100 million.Rent expense for all operating leases totaled<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 14px"><td style="width: 301px; text-align:left;border-color:#000000;min-width:301px;"> </td><td colspan="6" style="width: 273px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:273px;">Years ended December 31,</td></tr><tr style="height: 14px"><td style="width: 301px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:301px;">(Dollars in millions)</td><td colspan="2" style="width: 91px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:91px;">2010</td><td colspan="2" style="width: 91px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:91px;">2009</td><td colspan="2" style="width: 91px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:91px;">2008</td></tr><tr style="height: 16px"><td style="width: 301px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:301px;">Sempra Energy Consolidated</td><td style="width: 16px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:16px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 85</td><td style="width: 16px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:16px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 101</td><td style="width: 16px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:16px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 100</td></tr><tr style="height: 16px"><td style="width: 301px; text-align:left;border-color:#000000;min-width:301px;">SDG&E</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 20</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 24</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 25</td></tr><tr style="height: 16px"><td style="width: 301px; text-align:left;border-color:#000000;min-width:301px;">PE</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 47</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 65</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 65</td></tr><tr style="height: 16px"><td style="width: 301px; border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:301px;">SoCalGas</td><td style="width: 16px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 40</td><td style="width: 16px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 52</td><td style="width: 16px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 52</td></tr></table></div>At December 31, 2010, the minimum rental commitments payable in future years under all noncancelable operating leases were as follows:<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 14px"><td style="width: 243px; text-align:left;border-color:#000000;min-width:243px;"> </td><td colspan="2" style="width: 94px; text-align:center;border-color:#000000;min-width:94px;">Sempra</td><td colspan="2" style="width: 94px; text-align:center;border-color:#000000;min-width:94px;"> </td><td colspan="2" style="width: 94px; text-align:center;border-color:#000000;min-width:94px;"> </td></tr><tr style="height: 14px"><td style="width: 243px; text-align:left;border-color:#000000;min-width:243px;"> </td><td colspan="2" style="width: 94px; text-align:center;border-color:#000000;min-width:94px;">Energy</td><td colspan="2" style="width: 94px; text-align:center;border-color:#000000;min-width:94px;"> </td><td colspan="2" style="width: 94px; text-align:center;border-color:#000000;min-width:94px;"> </td></tr><tr style="height: 14px"><td style="width: 243px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:243px;">(Dollars in millions)</td><td colspan="2" style="width: 94px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:94px;">Consolidated</td><td colspan="2" style="width: 94px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:94px;">SDG&E</td><td colspan="2" style="width: 94px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:94px;">PE / SoCalGas</td></tr><tr style="height: 17px"><td style="width: 243px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:243px;">2011</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 73</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 18</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 32</td></tr><tr style="height: 17px"><td style="width: 243px; text-align:left;border-color:#000000;min-width:243px;">2012</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 67</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 17</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 23</td></tr><tr style="height: 17px"><td style="width: 243px; text-align:left;border-color:#000000;min-width:243px;">2013</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 65</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 17</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 23</td></tr><tr style="height: 17px"><td style="width: 243px; text-align:left;border-color:#000000;min-width:243px;">2014</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 64</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 16</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 23</td></tr><tr style="height: 17px"><td style="width: 243px; text-align:left;border-color:#000000;min-width:243px;">2015</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 63</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 16</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 24</td></tr><tr style="height: 17px"><td style="width: 243px; text-align:left;border-color:#000000;min-width:243px;">Thereafter</td><td style="width: 19px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 623</td><td style="width: 19px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 55</td><td style="width: 19px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 253</td></tr><tr style="height: 18px"><td style="width: 243px; border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:243px;">Total future rental commitments</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 955</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 139</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"> 378</td></tr></table></div>Capital Leases Utility Fleet VehiclesThe Sempra Utilities entered into agreements with U.S. Bancorp Equipment Finance in 2009 and with RBS Asset Finance, Inc. in 2010, to lease fleet vehicles that were under the agreements with GE Capital, which we discuss above. These are capital leases, and as of December 31, 2010, the related capital lease obligations were $39 million at Sempra Energy, $20 million at SDG&E and $19 million at SoCalGas. As of December 31, 2009, the related capital lease obligations were $47 million at Sempra Energy, $20 million at SDG&E and $27 million at SoCalGas.At December 31, 2010, the future minimum lease payments and present value of the net minimum lease payments under these capital leases were as follows:<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 16px"><td style="width: 285px; text-align:left;border-color:#000000;min-width:285px;"> </td><td colspan="2" style="width: 94px; text-align:center;border-color:#000000;min-width:94px;">Sempra</td><td colspan="2" style="width: 94px; text-align:center;border-color:#000000;min-width:94px;"> </td><td colspan="2" style="width: 94px; text-align:center;border-color:#000000;min-width:94px;"> </td></tr><tr style="height: 16px"><td style="width: 285px; text-align:left;border-color:#000000;min-width:285px;"> </td><td colspan="2" style="width: 94px; text-align:center;border-color:#000000;min-width:94px;">Energy</td><td colspan="2" style="width: 94px; text-align:center;border-color:#000000;min-width:94px;"> </td><td colspan="2" style="width: 94px; text-align:center;border-color:#000000;min-width:94px;"> </td></tr><tr style="height: 16px"><td style="width: 285px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:285px;">(Dollars in millions)</td><td colspan="2" style="width: 94px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:94px;">Consolidated</td><td colspan="2" style="width: 94px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:94px;">SDG&E</td><td colspan="2" style="width: 94px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:94px;">SoCalGas</td></tr><tr style="height: 16px"><td style="width: 285px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:285px;">2011</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 17</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 8</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 9</td></tr><tr style="height: 16px"><td style="width: 285px; text-align:left;border-color:#000000;min-width:285px;">2012</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 13</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 7</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 6</td></tr><tr style="height: 16px"><td style="width: 285px; text-align:left;border-color:#000000;min-width:285px;">2013</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 7</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 4</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> 3</td></tr><tr style="height: 16px"><td style="width: 285px; text-align:left;border-color:#000000;min-width:285px;">2014</td><td style="width: 19px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 4</td><td style="width: 19px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 2</td><td style="width: 19px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 2</td></tr><tr style="height: 16px"><td style="width: 285px; text-align:left;border-color:#000000;min-width:285px;">Total minimum lease payments</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 41</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 21</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 20</td></tr><tr style="height: 16px"><td style="width: 285px; text-align:left;border-color:#000000;min-width:285px;">Less: interest</td><td style="width: 19px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> (2)</td><td style="width: 19px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> (1)</td><td style="width: 19px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> (1)</td></tr><tr style="height: 16px"><td style="width: 285px; border-bottom-style:solid;border-bottom-width:2px;text-align:left;border-color:#000000;min-width:285px;">Present value of net minimum lease payments</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:right;border-color:#000000;min-width:75px;"> 39</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:right;border-color:#000000;min-width:75px;"> 20</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:right;border-color:#000000;min-width:75px;"> 19</td></tr><tr style="height: 16px"><td style="width: 285px; border-top-style:solid;border-top-width:2px;text-align:center;border-color:#000000;min-width:285px;"> </td><td style="width: 19px; border-top-style:solid;border-top-width:2px;text-align:center;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:2px;text-align:center;border-color:#000000;min-width:75px;"> </td><td style="width: 19px; border-top-style:solid;border-top-width:2px;text-align:center;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:2px;text-align:center;border-color:#000000;min-width:75px;"> </td><td style="width: 19px; border-top-style:solid;border-top-width:2px;text-align:center;border-color:#000000;min-width:19px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:2px;text-align:center;border-color:#000000;min-width:75px;"> </td></tr></table></div>The 2010 annual amortization charge for the utility fleet vehicles was $17 million at Sempra Energy, including $6 million at SDG&E and $11 million at SoCalGas. The 2009 annual amortization charge for the utility fleet vehicles was $3 million at Sempra Energy, including $1 million at SDG&E and $2 million at SoCalGas. There was no annual amortization charge for utility fleet vehicles in 2008.Power Purchase AgreementsSDG&E has two power purchase agreements with peaker plant facilities that went into commercial operation in June 2010 and are accounted for as capital leases. As of December 31, 2010, capital lease obligations for these leases, each with a 25-year term, were valued at $182 million.At December 31, 2010, the future minimum lease payments and present value of the net minimum lease payments under these capital leases for both Sempra Energy Consolidated and SDG&E were as follows: <div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 16px"><td colspan="2" style="width: 360px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:360px;">(Dollars in millions)</td><td colspan="2" style="width: 83px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:83px;"> </td></tr><tr style="height: 16px"><td style="width: 33px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:33px;"> </td><td style="width: 327px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:327px;">2011</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 64px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:64px;"> 24</td></tr><tr style="height: 16px"><td style="width: 33px; text-align:center;border-color:#000000;min-width:33px;"> </td><td style="width: 327px; text-align:left;border-color:#000000;min-width:327px;">2012</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;"> 24</td></tr><tr style="height: 16px"><td style="width: 33px; text-align:center;border-color:#000000;min-width:33px;"> </td><td style="width: 327px; text-align:left;border-color:#000000;min-width:327px;">2013</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;"> 24</td></tr><tr style="height: 16px"><td style="width: 33px; text-align:center;border-color:#000000;min-width:33px;"> </td><td style="width: 327px; text-align:left;border-color:#000000;min-width:327px;">2014</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;"> 24</td></tr><tr style="height: 16px"><td style="width: 33px; text-align:center;border-color:#000000;min-width:33px;"> </td><td style="width: 327px; text-align:left;border-color:#000000;min-width:327px;">2015</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;"> 24</td></tr><tr style="height: 16px"><td style="width: 33px; text-align:center;border-color:#000000;min-width:33px;"> </td><td style="width: 327px; text-align:left;border-color:#000000;min-width:327px;">Thereafter</td><td style="width: 19px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 64px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:64px;"> 465</td></tr><tr style="height: 16px"><td style="width: 33px; text-align:center;border-color:#000000;min-width:33px;"> </td><td style="width: 327px; text-align:left;border-color:#000000;min-width:327px;">Total minimum lease payments(1)</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 64px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:64px;"> 585</td></tr><tr style="height: 16px"><td style="width: 33px; text-align:center;border-color:#000000;min-width:33px;"> </td><td style="width: 327px; text-align:left;border-color:#000000;min-width:327px;">Less: estimated executory costs</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;"> (96)</td></tr><tr style="height: 16px"><td style="width: 33px; text-align:center;border-color:#000000;min-width:33px;"> </td><td style="width: 327px; text-align:left;border-color:#000000;min-width:327px;">Less: interest(2)</td><td style="width: 19px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 64px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:64px;"> (307)</td></tr><tr style="height: 16px"><td style="width: 33px; border-bottom-style:solid;border-bottom-width:2px;text-align:center;border-color:#000000;min-width:33px;"> </td><td style="width: 327px; border-bottom-style:solid;border-bottom-width:2px;text-align:left;border-color:#000000;min-width:327px;">Present value of net minimum lease payments(3) </td><td style="width: 19px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 64px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:right;border-color:#000000;min-width:64px;"> 182</td></tr><tr style="height: 22px"><td style="width: 33px; border-top-style:solid;border-top-width:2px;text-align:center;border-color:#000000;min-width:33px;">(1)</td><td colspan="3" style="width: 410px; border-top-style:solid;border-top-width:2px;text-align:left;border-color:#000000;min-width:410px;">This amount will be recorded over the lives of the leases as Cost of Electric Fuel and Purchased Power on Sempra Energy's and SDG&E's Consolidated Statements of Operations. This expense will receive ratemaking treatment consistent with purchased-power costs.</td></tr><tr style="height: 22px"><td style="width: 33px; text-align:center;border-color:#000000;min-width:33px;">(2)</td><td colspan="3" style="width: 410px; text-align:left;border-color:#000000;min-width:410px;">Amount necessary to reduce net minimum lease payments to present value at the inception of the leases.</td></tr><tr style="height: 22px"><td style="width: 33px; text-align:center;border-color:#000000;min-width:33px;">(3)</td><td colspan="3" style="width: 410px; text-align:left;border-color:#000000;min-width:410px;">Includes $2 million in Current Portion of Long-Term Debt and $180 million in Long-Term Debt on Sempra Energy's and SDG&E's Consolidated Balance Sheets at December 31, 2010.</td></tr></table></div>The annual amortization charge for the power purchase agreements was $1 million for 2010.Construction and Development ProjectsSempra 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&EAt December 31, 2010, SDG&E has commitments to make future payments of $594 million for construction projects including:<ul><li style="margin-left:9.35px;list-style:square;">$264 million for the engineering, material procurement and construction costs associated with the Sunrise Powerlink project;</li><li style="margin-left:9.35px;list-style:square;">$243 million related to the replacement of the steam generators and other construction projects at SONGS; and</li></ul><ul><li style="margin-left:9.35px;list-style:square;">$69 million for implementation of the Advanced Metering Infrastructure Program.</li></ul>SDG&E expects future payments under these contractual commitments to be $384 million in 2011, $50 million in 2012, $30 million in 2013, $12 million in 2014, $12 million in 2015 and $106 million thereafter. SoCalGasAt December 31, 2010, SoCalGas has commitments to make future payments of $49 million for construction and infrastructure improvements for natural gas transmission and distribution operations. The future payments under these contractual commitments are expected to be $41 million in 2011 and $8 million in 2012. Sempra Pipelines & StorageSempra Pipelines & Storage has commitments for the construction of natural gas storage facilities at Bay Gas and Mississippi Hub. At December 31, 2010, Sempra Pipelines & Storage expects to make payments of $9 million in 2011 and $1 million in each of 2012 and 2013 at Bay Gas, and $7 million in each of 2011, 2012 and 2013 at Mississippi Hub under these contracts. GuaranteesSempra Energy's guarantees related to RBS Sempra Commodities, Rockies Express and Fowler Ridge II are discussed in Note 5.As of December 31, 2010, SDG&E and SoCalGas did not have any outstanding guarantees.Sempra Generation's Contract with the DWRIn 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 – Resolved Matters – Energy Crisis Litigation Settlement – DWR Contract" above. This agreement terminates in September 2011.Department of Energy Nuclear Fuel Disposal The Nuclear Waste Policy Act of 1982 made the DOE responsible for the disposal of spent nuclear fuel. However, it is uncertain when the DOE will begin accepting spent nuclear fuel from SONGS. This delay will lead to increased costs for spent fuel storage. This cost will be recovered through SONGS revenue unless SDG&E is able to recover the increased cost from the federal government. OTHER COMMITMENTSAt December 31, 2010, $69 million of current accrued liabilities at Sempra Energy relate to an energy crisis litigation settlement reported previously, under which Sempra Generation voluntarily agreed to reduce the price that it charges for power under its DWR contract. At the time of settlement, we recorded a liability for the estimated price reduction at present value, and we are applying it to offset the actual discount until the contract ends in September 2011.Additional consideration for the settlement included an agreement that, for a period of 18 years beginning in 2011, Sempra LNG would sell to the Sempra Utilities, subject to annual CPUC approval, up to 500 million cubic feet (MMcf) per day of regasified LNG from Sempra LNG's Energía Costa Azul facility that is not delivered or sold in Mexico at the California border index minus $0.02 per MMBtu. We discuss reserves at Sempra Energy and SDG&E for wildfire litigation above in "Legal Proceedings – SDG&E 2007 Wildfire Litigation" and "Legal Proceedings – Wildfire Reserves and Insurance and Settlement Receivables."Environmental IssuesOur operations are subject to federal, state and local environmental laws. We also are subject to regulations related to hazardous wastes, air and water quality, land use, solid waste disposal and the protection of wildlife. These laws and regulations require that we investigate and correct the effects of the release or disposal of materials at sites associated with our past and our present operations. These sites include those at which we have been identified as a Potentially Responsible Party (PRP) under the federal Superfund laws and similar state laws. In addition, we are required to obtain numerous governmental permits, licenses and other approvals to construct facilities and operate our businesses. The related costs of environmental monitoring, pollution control equipment, cleanup costs, and emissions fees are significant. Increasing national and international concerns regarding global warming and mercury, carbon dioxide, nitrogen oxide and sulfur dioxide emissions could result in requirements for additional pollution control equipment or significant emissions fees or taxes that could adversely affect Sempra Generation. The Sempra Utilities' costs to operate their facilities in compliance with these laws and regulations generally have been recovered in customer rates. We generally capitalize the significant costs we incur to mitigate or prevent future environmental contamination or extend the life, increase the capacity, or improve the safety or efficiency of property used in current operations. The following table shows (in millions) our capital expenditures in order to comply with environmental laws and regulations:<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 14px"><td style="width: 33px; text-align:center;border-color:#000000;min-width:33px;"> </td><td style="width: 215px; text-align:center;border-color:#000000;min-width:215px;"> </td><td colspan="6" style="width: 228px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:228px;">Years ended December 31,</td></tr><tr style="height: 14px"><td style="width: 33px; text-align:center;border-color:#000000;min-width:33px;"> </td><td style="width: 215px; text-align:center;border-color:#000000;min-width:215px;"> </td><td colspan="2" style="width: 76px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:76px;">2010</td><td colspan="2" style="width: 76px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:76px;">2009</td><td colspan="2" style="width: 76px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:76px;">2008</td></tr><tr style="height: 16px"><td colspan="2" style="width: 248px; text-align:left;border-color:#000000;min-width:248px;">Sempra Energy Consolidated(1)</td><td style="width: 16px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:16px;">$</td><td style="width: 60px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:60px;"> 21</td><td style="width: 16px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:16px;">$</td><td style="width: 60px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:60px;"> 43</td><td style="width: 16px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:16px;">$</td><td style="width: 60px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:60px;"> 30</td></tr><tr style="height: 16px"><td colspan="2" style="width: 248px; text-align:left;border-color:#000000;min-width:248px;">SDG&E</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 60px; text-align:right;border-color:#000000;min-width:60px;"> 10</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 60px; text-align:right;border-color:#000000;min-width:60px;"> 24</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 60px; text-align:right;border-color:#000000;min-width:60px;"> 18</td></tr><tr style="height: 16px"><td colspan="2" style="width: 248px; border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:248px;">SoCalGas</td><td style="width: 16px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 60px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:60px;"> 10</td><td style="width: 16px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 60px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:60px;"> 17</td><td style="width: 16px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:16px;"> </td><td style="width: 60px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:60px;"> 9</td></tr><tr style="height: 20px"><td style="width: 33px; border-top-style:solid;border-top-width:3px;text-align:left;border-color:#C0C0C0;min-width:33px;">(1)</td><td colspan="7" style="width: 443px; border-top-style:solid;border-top-width:3px;text-align:left;border-color:#C0C0C0;min-width:443px;">In cases of non-wholly owned affiliates, includes only our share.</td></tr></table></div>Decreases in 2010 compared to 2009 are primarily due to a decrease in environmental-related spending on SoCalGas' natural gas transmission projects, completion of SDG&E's Miramar II facility and the change in our basis of presentation related to Orange Grove as described in Note 1. Increases in 2009 compared to 2008 are primarily due to SoCalGas' spending on gas transmission projects, SDG&E's improvements to its electric transmission system and spending on emissions-control equipment. We have not identified any significant environmental issues outside the United States. From 2009 through 2013, SDG&E expects to incur costs of approximately $190 million for environmental mitigation measures associated with the Sunrise Powerlink construction project. At the Sempra Utilities, costs that relate to current operations or an existing condition caused by past operations are generally recorded as a regulatory asset due to the probability that these costs will be recovered in rates. The environmental issues currently facing us or resolved during the last three years include (1) investigation and remediation of the Sempra Utilities' manufactured-gas sites, (2) cleanup of third-party waste-disposal sites used by the Sempra Utilities at sites for which we have been identified as a PRP and (3) mitigation of damage to the marine environment caused by the cooling-water discharge from SONGS. The requirements for enhanced fish protection and restoration of 150 acres of coastal wetlands for the SONGS mitigation are in process and a 150-acre artificial reef was completed in 2008. The table below shows the status at December 31, 2010, of the Sempra Utilities' manufactured-gas sites and the third-party waste-disposal sites for which we have been identified as a PRP:<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 14px"><td style="width: 210px; text-align:left;border-color:#000000;min-width:210px;"> </td><td colspan="2" style="width: 86px; text-align:center;border-color:#000000;min-width:86px;"># Sites</td><td colspan="2" style="width: 86px; text-align:center;border-color:#000000;min-width:86px;"># Sites</td></tr><tr style="height: 14px"><td style="width: 210px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:210px;"> </td><td colspan="2" style="width: 86px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:86px;">Completed</td><td colspan="2" style="width: 86px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:86px;">In Process</td></tr><tr style="height: 17px"><td style="width: 210px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:210px;">SDG&E</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 64px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:64px;"> </td><td style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 64px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:64px;"> </td></tr><tr style="height: 17px"><td style="width: 210px; text-align:left;border-color:#000000;min-width:210px;">Manufactured-gas sites</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;"> 3</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;"> ―</td></tr><tr style="height: 17px"><td style="width: 210px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:210px;">Third-party waste-disposal sites</td><td style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 64px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:64px;"> 1</td><td style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 64px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:64px;"> 1</td></tr><tr style="height: 17px"><td style="width: 210px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:210px;">SoCalGas</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 64px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:64px;"> </td><td style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 64px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:64px;"> </td></tr><tr style="height: 17px"><td style="width: 210px; text-align:left;border-color:#000000;min-width:210px;">Manufactured-gas sites</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;"> 36</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;"> 6</td></tr><tr style="height: 18px"><td style="width: 210px; border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:210px;">Third-party waste-disposal sites</td><td style="width: 22px; border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 64px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:64px;"> 1</td><td style="width: 22px; border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 64px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:64px;"> 1</td></tr></table></div>We record environmental liabilities at undiscounted amounts when our liability is probable and the costs can be reasonably estimated. In many cases, however, investigations are not yet at a stage where we can determine whether we are liable or, if the liability is probable, to reasonably estimate the amount or range of amounts of the costs. Estimates of our liability are further subject to uncertainties such as the nature and extent of site contamination, evolving cleanup standards and imprecise engineering evaluations. We review our accruals periodically and, as investigations and cleanup proceed, we make adjustments as necessary. The following table shows (in millions) our accrued liabilities for environmental matters at December 31, 2010:<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 14px"><td style="width: 35px; text-align:left;border-color:#000000;min-width:35px;"> </td><td style="width: 175px; text-align:left;border-color:#000000;min-width:175px;"> </td><td colspan="2" style="width: 98px; text-align:center;border-color:#000000;min-width:98px;"> </td><td colspan="2" style="width: 106px; text-align:center;border-color:#000000;min-width:106px;">Waste</td><td colspan="2" style="width: 101px; text-align:center;border-color:#000000;min-width:101px;">Former Fossil-</td><td colspan="2" style="width: 101px; text-align:center;border-color:#000000;min-width:101px;">Other</td><td colspan="2" style="width: 91px; text-align:center;border-color:#000000;min-width:91px;"> </td></tr><tr style="height: 14px"><td style="width: 35px; text-align:left;border-color:#000000;min-width:35px;"> </td><td style="width: 175px; text-align:left;border-color:#000000;min-width:175px;"> </td><td colspan="2" style="width: 98px; text-align:center;border-color:#000000;min-width:98px;">Manufactured-</td><td colspan="2" style="width: 106px; text-align:center;border-color:#000000;min-width:106px;">Disposal</td><td colspan="2" style="width: 101px; text-align:center;border-color:#000000;min-width:101px;">Fueled Power</td><td colspan="2" style="width: 101px; text-align:center;border-color:#000000;min-width:101px;">Hazardous</td><td colspan="2" style="width: 91px; text-align:center;border-color:#000000;min-width:91px;"> </td></tr><tr style="height: 14px"><td style="width: 35px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:35px;"> </td><td style="width: 175px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:175px;"> </td><td colspan="2" style="width: 98px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:98px;">Gas Sites</td><td colspan="2" style="width: 106px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:106px;">Sites (PRP)(1)</td><td colspan="2" style="width: 101px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:101px;">Plants</td><td colspan="2" style="width: 101px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:101px;">Waste Sites</td><td colspan="2" style="width: 91px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:91px;">Total</td></tr><tr style="height: 17px"><td colspan="2" style="width: 210px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:210px;">SDG&E(2)</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 76px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:76px;"> 0.1</td><td style="width: 29px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:29px;">$</td><td style="width: 77px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:77px;"> 0.2</td><td style="width: 36px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:36px;">$</td><td style="width: 65px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:65px;"> 5.4</td><td style="width: 31px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:31px;">$</td><td style="width: 70px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:70px;"> 0.3</td><td style="width: 33px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:33px;">$</td><td style="width: 58px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:58px;"> 6.0</td></tr><tr style="height: 17px"><td colspan="2" style="width: 210px; text-align:left;border-color:#000000;min-width:210px;">SoCalGas</td><td style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 76px; text-align:right;border-color:#000000;min-width:76px;"> 19.5</td><td style="width: 29px; text-align:right;border-color:#000000;min-width:29px;"> </td><td style="width: 77px; text-align:right;border-color:#000000;min-width:77px;"> 0.5</td><td style="width: 36px; text-align:right;border-color:#000000;min-width:36px;"> </td><td style="width: 65px; text-align:right;border-color:#000000;min-width:65px;"> ―</td><td style="width: 31px; text-align:right;border-color:#000000;min-width:31px;"> </td><td style="width: 70px; text-align:right;border-color:#000000;min-width:70px;"> 0.2</td><td style="width: 33px; text-align:right;border-color:#000000;min-width:33px;"> </td><td style="width: 58px; text-align:right;border-color:#000000;min-width:58px;"> 20.2</td></tr><tr style="height: 17px"><td colspan="2" style="width: 210px; text-align:left;border-color:#000000;min-width:210px;">Other</td><td style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"> </td><td style="width: 76px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:76px;"> 0.3</td><td style="width: 29px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:29px;"> </td><td style="width: 77px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:77px;"> 1.0</td><td style="width: 36px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:36px;"> </td><td style="width: 65px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:65px;"> ―</td><td style="width: 31px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:31px;"> </td><td style="width: 70px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:70px;"> ―</td><td style="width: 33px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:33px;"> </td><td style="width: 58px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:58px;"> 1.3</td></tr><tr style="height: 18px"><td colspan="2" style="width: 210px; border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:210px;"> Total Sempra Energy</td><td style="width: 22px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:22px;">$</td><td style="width: 76px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:76px;"> 19.9</td><td style="width: 29px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:29px;">$</td><td style="width: 77px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:77px;"> 1.7</td><td style="width: 36px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:36px;">$</td><td style="width: 65px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:65px;"> 5.4</td><td style="width: 31px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:31px;">$</td><td style="width: 70px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:70px;"> 0.5</td><td style="width: 33px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:33px;">$</td><td style="width: 58px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:58px;"> 27.5</td></tr><tr style="height: 14px"><td style="width: 35px; border-top-style:solid;border-top-width:3px;text-align:left;border-color:#000000;min-width:35px;">(1)</td><td colspan="11" style="width: 672px; border-top-style:solid;border-top-width:3px;text-align:left;border-color:#000000;min-width:672px;">Sites for which we have been identified as a Potentially Responsible Party.</td></tr><tr style="height: 14px"><td style="width: 35px; text-align:left;border-color:#000000;min-width:35px;">(2)</td><td colspan="11" style="width: 672px; text-align:left;border-color:#000000;min-width:672px;">Does not include SDG&E's liability for SONGS marine mitigation.</td></tr></table></div>We expect to pay the majority of these accruals over the next three years. In connection with the issuance of operating permits, SDG&E and the other owners of SONGS previously reached an agreement with the California Coastal Commission to mitigate the damage to the marine environment caused by the cooling-water discharge from SONGS. At December 31, 2010, SDG&E's share of the estimated mitigation costs remaining to be spent through 2050 is $17 million, which is recoverable in rates.We discuss renewable energy requirements in Note 14 and greenhouse gas regulation in Note 15.NUCLEAR INSURANCESDG&E and the other owners of San Onofre Nuclear Generating Station (SONGS) have insurance to cover claims from nuclear liability incidents arising at SONGS. This insurance provides $375 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides for up to $12.2 billion of secondary financial protection (SFP). If a nuclear liability loss occurring at any U.S. licensed/commercial reactor exceeds the $375 million insurance limit, all nuclear reactor owners could be required to contribute to the SFP. SDG&E's contribution would be up to $47 million. This amount is subject to an annual maximum of $7 million, unless a default occurs by any other SONGS owner. If the SFP is insufficient to cover the liability loss, SDG&E could be subject to an additional assessment.The SONGS owners, including SDG&E, also have $2.75 billion of nuclear property, decontamination, and debris removal insurance. In addition, the SONGS owners have up to $490 million insurance coverage for outage expenses and replacement power costs due to accidental property damage. This coverage is limited to $3.5 million per week for the first 52 weeks, then $2.8 million per week for up to 110 additional weeks. There is a 12-week waiting period deductible. These insurance coverages are provided through a mutual insurance company. Insured members are subject to retrospective premium assessments. SDG&E could be assessed up to $8.5 million.The nuclear property insurance program includes an industry aggregate loss limit for non-certified acts of terrorism (as defined by the Terrorism Risk Insurance Act). The industry aggregate loss limit for property claims arising from non-certified acts of terrorism is $3.24 billion. This is the maximum amount that will be paid to insured members who suffer losses or damages from these non-certified terrorist acts.Concentration of Credit Risk We maintain credit policies and systems to manage our overall credit risk. These policies include an evaluation of potential counterparties' financial condition and an assignment of credit limits. These credit limits are established based on risk and return considerations under terms customarily available in the industry. We grant credit to utility customers and counterparties, substantially all of whom are located in our service territory, which covers most of Southern California and a portion of central California for SoCalGas, and all of San Diego County and an adjacent portion of Orange County for SDG&E.As described above, Sempra Generation has a contract with the DWR to supply up to 1,900 MW of power to the state over 10 years, beginning in 2001. Sempra Generation would be at risk for the amounts of outstanding billings and the continued viability of the contract if the DWR were to default on its payments under this contract. The average monthly billing related to this contract is $29 million and is normally collected by the end of the next month. This agreement terminates in September 2011.When they become operational, projects at Sempra LNG and Sempra Pipelines & Storage place significant reliance on the ability of their suppliers and customers to perform on long-term agreements and on our ability to enforce contract terms in the event of nonperformance. We consider many factors, including the negotiation of supplier and customer agreements, when we evaluate and approve development projects.In connection with certain transactions we discuss in Note 4, RBS is obligated to provide RBS Sempra Commodities with all working-capital requirements and credit support. However, as a transitional measure, we continue to provide back-up guarantees for a portion of RBS Sempra Commodities' trading obligations. We provide additional information regarding these back-up guarantees and other guarantees in Note 5.NOTE 16. COMMITMENTS AND CONTINGENCIESLEGAL PROCEEDINGSWe accrue losses for legal proceedings when it is probable that a loss has been incurred and the amountsfalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringIncludes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 14 -Paragraph 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 9, 10, 11, 12 falsefalseCommitments and Contingencies12COMMITMENTS AND CONTINGENCIESUnKnownUnKnownUnKnownUnKnownfalsetrue