2.2.0.25falsefalse010300 - Disclosure - RECENT INVESTMENT ACTIVITYtruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 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]3false0sre_RecentInvestmentActivityTextBlocksrefalsenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00NOTE 3. RECENT INVESTMENT ACTIVITYSempra GenerationWe provide information about investment activity at Sempra Generation in Note 4.Sempra Pipelines & StorageWe discuss Sempra Pipelines & Storage's investment in Rockies Express Pipeline LLC (Rockies Express) in Note 4.Acquisition of Mexican Pipeline and Natural Gas InfrastructureOn April 30, 2010, Sempra Pipelines & Storage completed an acquisition resulting in the purchase of the Mexican pipeline and natural gas infrastructure assets of El Paso Corporation for $307 million ($292 million, net of cash acquired). The acquisition consists of El Paso Corporation's wholly owned natural gas pipeline and compression assets in the Mexican border state of Sonora and its 50-percent interest in Gasoductos de Chihuahua, a joint venture with PEMEX, the Mexican state-owned oil company. The joint venture operates two natural gas pipelines and a propane system in northern Mexico. The acquisition expands our scale and geographic footprint in a strong growth region in Mexico. The pipeline assets are backed substantially by long-term contracts with a history of consistent revenue streams, allowing us to expand our natural gas infrastructure business in northern Mexico.The following table summarizes the consideration paid in the acquisition and the recognized amounts of the assets acquired and liabilities assumed: <div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 33px"><td colspan="3" style="width: 461px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:461px;">(Dollars in millions)</td><td colspan="2" style="width: 118px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:118px;">At April 30, 2010</td></tr><tr style="height: 16px"><td colspan="3" style="width: 461px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:461px;">Cash consideration (fair value of total consideration)</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 99px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:99px;"> 307</td></tr><tr style="height: 16px"><td colspan="3" style="width: 461px; text-align:left;border-color:#000000;min-width:461px;">Recognized amounts of identifiable assets acquired and liabilities assumed:</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: 99px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:99px;"> </td></tr><tr style="height: 16px"><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td colspan="2" style="width: 446px; text-align:left;border-color:#000000;min-width:446px;">Cash</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 99px; text-align:right;border-color:#000000;min-width:99px;"> 15</td></tr><tr style="height: 16px"><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td colspan="2" style="width: 446px; text-align:left;border-color:#000000;min-width:446px;">Accounts receivable</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 99px; text-align:right;border-color:#000000;min-width:99px;"> 4</td></tr><tr style="height: 16px"><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td colspan="2" style="width: 446px; text-align:left;border-color:#000000;min-width:446px;">Investment in equity method investee</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 99px; text-align:right;border-color:#000000;min-width:99px;"> 256</td></tr><tr style="height: 16px"><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td colspan="2" style="width: 446px; text-align:left;border-color:#000000;min-width:446px;">Property, plant & equipment</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 99px; text-align:right;border-color:#000000;min-width:99px;"> 25</td></tr><tr style="height: 16px"><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td colspan="2" style="width: 446px; text-align:left;border-color:#000000;min-width:446px;">Other liabilities</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: 99px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:99px;"> (11)</td></tr><tr style="height: 16px"><td colspan="3" style="width: 461px; text-align:left;border-color:#000000;min-width:461px;">Total identifiable net assets</td><td style="width: 19px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 99px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:99px;"> 289</td></tr><tr style="height: 16px"><td colspan="3" style="width: 461px; text-align:left;border-color:#000000;min-width:461px;">Goodwill(1)</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;">$</td><td style="width: 99px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:right;border-color:#000000;min-width:99px;"> 18</td></tr><tr style="height: 16px"><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 427px; text-align:left;border-color:#000000;min-width:427px;"> </td><td style="width: 19px; border-top-style:solid;border-top-width:2px;text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 99px; border-top-style:solid;border-top-width:2px;text-align:left;border-color:#000000;min-width:99px;"> </td></tr><tr style="height: 16px"><td colspan="3" style="width: 461px; text-align:left;border-color:#000000;min-width:461px;">Acquisition-related costs (included in Other Operation and Maintenance expense</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 99px; text-align:left;border-color:#000000;min-width:99px;"> </td></tr><tr style="height: 16px"><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td colspan="2" style="width: 446px; text-align:left;border-color:#000000;min-width:446px;">in the Consolidated Statement of Operations for the year ended</td><td style="width: 19px; text-align:left;border-color:#000000;min-width:19px;"> </td><td style="width: 99px; text-align:left;border-color:#000000;min-width:99px;"> </td></tr><tr style="height: 16px"><td style="width: 15px; border-bottom-style:solid;border-bottom-width:2px;text-align:left;border-color:#000000;min-width:15px;"> </td><td colspan="2" style="width: 446px; border-bottom-style:solid;border-bottom-width:2px;text-align:left;border-color:#000000;min-width:446px;">December 31, 2010)</td><td style="width: 19px; border-bottom-style:solid;border-bottom-width:2px;text-align:left;border-color:#000000;min-width:19px;">$</td><td style="width: 99px; border-bottom-style:solid;border-bottom-width:2px;text-align:right;border-color:#000000;min-width:99px;"> 1</td></tr><tr style="height: 47px"><td colspan="2" style="width: 34px; border-top-style:solid;border-top-width:2px;text-align:center;border-color:#000000;min-width:34px;">(1)</td><td colspan="3" style="width: 545px; border-top-style:solid;border-top-width:2px;text-align:left;border-color:#000000;min-width:545px;">The goodwill, which represents the residual of the consideration paid over the identifiable net assets, is assigned to the Sempra Pipelines & Storage segment and is attributed to the strategic value of the transaction. None of the goodwill recorded is deductible in Mexico for income tax purposes.</td></tr></table></div> Included in our Consolidated Statement of Operations are revenues and earnings of $6 million and $21 million, respectively, for the period May 1, 2010 to December 31, 2010 related to the assets acquired from El Paso Corporation. Proforma impacts on revenues and earnings for Sempra Energy had the acquisition occurred on January 1, 2008 were: additional revenues of $3 million and earnings of $7 million in 2010; additional revenues of $10 million and earnings of $24 million for 2009; and additional revenues of $11 million and earnings of $27 million for 2008.Acquisition of EnergySouthIn October 2008, Sempra Pipelines & Storage acquired EnergySouth, an energy services holding company based in Mobile, Alabama, for $495 million in cash (net of cash acquired of $16 million) and the assumption of debt. Principal holdings of EnergySouth include EnergySouth Midstream and Mobile Gas. As a natural gas distribution utility, Mobile Gas serves approximately 91,000 customers in southwest Alabama. In December 2008, EnergySouth Midstream changed its name to Sempra Midstream.Sempra Midstream is the general partner and 91-percent owner of Bay Gas Storage Company (Bay Gas) and owned 60 percent of Mississippi Hub, LLC (Mississippi Hub) through December 31, 2008. On January 16, 2009, Sempra Midstream purchased the remaining 40-percent ownership interest of Mississippi Hub for $94 million in cash.The results of operations and changes in cash flows for EnergySouth are included in our Consolidated Statements of Operations and Statements of Consolidated Cash Flows from October 1, 2008.Proforma impacts on revenues and earnings for Sempra Energy had the acquisition occurred on January 1, 2008 were additional revenues of $113 million and earnings of $6 million in 2008.We provide further information in Note 1 regarding goodwill and other intangible assets acquired.Sempra CommoditiesOn April 1, 2008, Sempra Energy and The Royal Bank of Scotland (RBS) completed the formation of RBS Sempra Commodities, a partnership to own and operate the commodities-marketing businesses previously operated through wholly owned subsidiaries of Sempra Energy. Our initial equity contribution to the partnership was $1.6 billion. RBS made an initial equity contribution of $1.665 billion and committed to provide any additional funding required for the ongoing operations of the partnership's businesses. As a result of the transaction, we received approximately $1.2 billion in cash, net of our contribution and including cash withdrawn from the businesses in anticipation of the transaction. We recorded an after-tax gain of $67 million on the transaction. In 2010 and early 2011, Sempra Energy and RBS sold substantially all of the businesses and assets within the partnership.We provide additional information concerning RBS Sempra Commodities and these transactions in Notes 4 and 5.  NOTE 3. RECENT INVESTMENT ACTIVITYSempra GenerationWe provide information about investment activity at Sempra Generation in Note 4.Sempra Pipelines &falsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringNo definition available.No authoritative reference available.falsefalseRecent Investment Activity12RECENT INVESTMENT ACTIVITYUnKnownUnKnownUnKnownUnKnownfalsetrue