Schedule Of Recurring Fair Value Measures

RECURRING FAIR VALUE MEASURES ― SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		At fair value as of December 31, 2013
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	614	$	―	$	―	$	―	$	614
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			59		58		―		―		117
Municipal bonds			―		111		―		―		111
Other securities			―		153		―		―		153
Total debt securities			59		322		―		―		381
Total nuclear decommissioning trusts(2)			673		322		―		―		995
Interest rate instruments			―		56		―		―		56
Commodity contracts subject to rate recovery			2		1		99		31		133
Commodity contracts not subject to rate recovery			1		5		―		17		23
Total		$	676	$	384	$	99	$	48	$	1,207
Liabilities:
Interest rate and foreign exchange instruments		$	―	$	117	$	―	$	―	$	117
Commodity contracts subject to rate recovery			―		13		―		―		13
Commodity contracts not subject to rate recovery			4		8		―		(5)		7
Total		$	4	$	138	$	―	$	(5)	$	137

		At fair value as of December 31, 2012
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	539	$	―	$	―	$	―	$	539
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			87		69		―		―		156
Municipal bonds			―		63		―		―		63
Other securities			―		130		―		―		130
Total debt securities			87		262		―		―		349
Total nuclear decommissioning trusts(2)			626		262		―		―		888
Interest rate instruments			―		68		―		―		68
Commodity contracts subject to rate recovery			―		―		61		13		74
Commodity contracts not subject to rate recovery			13		8		―		22		43
Investments			1		―		―		―		1
Total		$	640	$	338	$	61	$	35	$	1,074
Liabilities:
Interest rate instruments		$	―	$	126	$	―	$	―	$	126
Commodity contracts subject to rate recovery			23		9		―		(23)		9
Commodity contracts not subject to rate recovery			6		23		―		(11)		18
Total		$	29	$	158	$	―	$	(34)	$	153
(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.
(2)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES ― SDG&E
(Dollars in millions)
		At fair value as of December 31, 2013
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	614	$	―	$	―	$	―	$	614
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			59		58		―		―		117
Municipal bonds			―		111		―		―		111
Other securities			―		153		―		―		153
Total debt securities			59		322		―		―		381
Total nuclear decommissioning trusts(2)			673		322		―		―		995
Commodity contracts subject to rate recovery			1		1		99		29		130
Commodity contracts not subject to rate recovery			―		―		―		1		1
Total		$	674	$	323	$	99	$	30	$	1,126

Liabilities:
Interest rate instruments		$	―	$	55	$	―	$	―	$	55
Commodity contracts subject to rate recovery			―		12		―		―		12
Total		$	―	$	67	$	―	$	―	$	67

		At fair value as of December 31, 2012
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	539	$	―	$	―	$	―	$	539
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			87		69		―		―		156
Municipal bonds			―		63		―		―		63
Other securities			―		130		―		―		130
Total debt securities			87		262		―		―		349
Total nuclear decommissioning trusts(2)			626		262		―		―		888
Commodity contracts subject to rate recovery			―		―		61		12		73
Commodity contracts not subject to rate recovery			―		―		―		1		1
Total		$	626	$	262	$	61	$	13	$	962

Liabilities:
Interest rate instruments		$	―	$	81	$	―	$	―	$	81
Commodity contracts subject to rate recovery			23		8		―		(23)		8
Total		$	23	$	89	$	―	$	(23)	$	89
(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.
(2)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES ― SOCALGAS
(Dollars in millions)
		At fair value as of December 31, 2013
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Commodity contracts subject to rate recovery		$	1	$	―	$	―	$	2	$	3
Commodity contracts not subject to rate recovery			―		―		―		2		2
Total		$	1	$	―	$	―	$	4	$	5

Liabilities:
Commodity contracts subject to rate recovery		$	―	$	1	$	―	$	―	$	1
Total		$	―	$	1	$	―	$	―	$	1

		At fair value as of December 31, 2012
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Commodity contracts subject to rate recovery		$	―	$	―	$	―	$	1	$	1
Commodity contracts not subject to rate recovery			1		―		―		2		3
Total		$	1	$	―	$	―	$	3	$	4

Liabilities:
Commodity contracts subject to rate recovery		$	―	$	1	$	―	$	―	$	1
Total		$	―	$	1	$	―	$	―	$	1
(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.

Schedule Of Recurring Fair Value Measures Level 3 Rollforward

LEVEL 3 RECONCILIATIONS
(Dollars in millions)
	Years ended December 31,
	2013		2012		2011
Balance as of January 1	$	61	$	23	$	2
Realized and unrealized gains		11		31		32
Allocated transmission instruments		51		58		7
Settlements		(24)		(51)		(18)
Balance as of December 31	$	99	$	61	$	23
Change in unrealized gains or losses relating to
instruments still held at December 31	$	11	$	17	$	17

Schedule Of Fair Value of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
		December 31, 2013
		Carrying		Fair Value
		Amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Total long-term debt(1)		$	12,022	$	―	$	11,925	$	751	$	12,676
Preferred stock of subsidiary			20		―		20		―		20
SDG&E:
Total long-term debt(2)		$	4,386	$	―	$	4,226	$	335	$	4,561
SoCalGas:
Total long-term debt(3)		$	1,413	$	―	$	1,469	$	―	$	1,469
Preferred stock			22		―		22		―		22

		December 31, 2012
		Carrying		Fair Value
		Amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Investments in affordable housing partnerships(4)		$	12	$	―	$	―	$	36	$	36
Total long-term debt(1)			11,873		―		12,287		956		13,243
Preferred stock of subsidiaries			99		―		107		―		107
SDG&E:
Total long-term debt(2)		$	4,135	$	―	$	4,243	$	345	$	4,588
Contingently redeemable preferred stock(5)			79		―		85		―		85
SoCalGas:
Total long-term debt(3)		$	1,413	$	―	$	1,599	$	―	$	1,599
Preferred stock			22		―		24		―		24
(1)	Before reductions for unamortized discount (net of premium) of $17 million and $16 million at December 31, 2013 and 2012, respectively, and excluding build-to-suit and capital leases of $195 million and capital leases of $189 million at December 31, 2013 and 2012, respectively, and commercial paper classified as long-term debt of $200 million and $300 million at December 31, 2013 and 2012, respectively. We discuss our long-term debt in Note 5.
(2)	Before reductions for unamortized discount of $11 million and $12 million at December 31, 2013 and 2012, respectively, and excluding capital leases of $179 million and $185 million at December 31, 2013, respectively.
(3)	Before reductions for unamortized discount of $4 million at both December 31, 2013 and 2012 and excluding capital leases of $2 million and $4 million at December 31, 2013 and 2012, respectively.
(4)	Investments in affordable housing partnerships at Parent and Other. At December 31, 2013, the carrying amount and fair value of these investments were negligible.
(5)	On October 15, 2013, SDG&E redeemed all outstanding shares of its contingently redeemable preferred stock for $82 million. We discuss the redemption in Note 11.

Schedule Of Fair Value of Cash Collateral Receivables Not Offset on the Consolidated Balance Sheets

	December 31,
(Dollars in millions)	2013		2012
Sempra Energy Consolidated	$	48	$	35
SDG&E		30		13
SoCalGas		4		3

Schedule Of Non Recurring Fair Value Measures

NON-RECURRING FAIR VALUE MEASURES ― SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
					% of
		Estimated		Fair	Fair Value
		Fair		Value	Measure-		Range of
		Value	Valuation Technique	Hierarchy	ment	Inputs Used to Develop Measurement	Inputs
Investment in
Rockies Express		$369(1)	Market approach	Level 2	67%	Equity sale offer price	100%


			Probability weighted	Level 3	33%	Combined transportation rate assumption(2)	6% - 78%
			discounted cash flow			Counterparty credit risk on existing contracts	Low
						Operation and maintenance escalation rate	0% - 1%
						Forecasted interest rate on debt to be refinanced	5% - 10%
						Discount rate	8% - 10%
Investment in
RBS Sempra
Commodities		$126(3)	Discounted cash flow	Level 3	100%	Future cash distributions	90% - 110%
(1)	At measurement date of September 30, 2012. At December 31, 2013, our investment in Rockies Express had a carrying value of $329 million, reflecting subsequent equity method activity to record distributions and earnings.
(2)	Transportation rate beyond existing contract terms as a percentage of current mean REX rates.
(3)	At measurement date of September 30, 2011. At December 31, 2013, our investment in RBS Sempra Commodities had a carrying value of $73 million, reflecting subsequent equity method activity to record distributions and losses.