FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Jun. 30, 2014

Fair Value Measurements (Tables) [Abstract]

Recurring Fair Value Measures Table

RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		At fair value as of June 30, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	652	$	―	$	―	$	―	$	652
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			51		55		―		―		106
Municipal bonds			―		114		―		―		114
Other securities			―		196		―		―		196
Total debt securities			51		365		―		―		416
Total nuclear decommissioning trusts(2)			703		365		―		―		1,068
Interest rate and foreign exchange instruments			―		62		―		―		62
Commodity contracts not subject to rate recovery			3		4		―		12		19
Commodity contracts subject to rate recovery			8		3		85		32		128
Total		$	714	$	434	$	85	$	44	$	1,277
Liabilities:
Interest rate and foreign exchange instruments		$	―	$	119	$	―	$	―	$	119
Commodity contracts not subject to rate recovery			―		3		―		―		3
Commodity contracts subject to rate recovery			―		12		―		―		12
Total		$	―	$	134	$	―	$	―	$	134
		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 and foreign exchange instruments			―		56		―		―		56
Commodity contracts not subject to rate recovery			1		5		―		17		23
Commodity contracts subject to rate recovery			2		1		99		31		133
Total		$	676	$	384	$	99	$	48	$	1,207
Liabilities:
Interest rate and foreign exchange instruments		$	―	$	117	$	―	$	―	$	117
Commodity contracts not subject to rate recovery			4		8		―		(5)		7
Commodity contracts subject to rate recovery			―		13		―		―		13
Total		$	4	$	138	$	―	$	(5)	$	137
(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 June 30, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	652	$	―	$	―	$	―	$	652
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			51		55		―		―		106
Municipal bonds			―		114		―		―		114
Other securities			―		196		―		―		196
Total debt securities			51		365		―		―		416
Total nuclear decommissioning trusts(2)			703		365		―		―		1,068
Commodity contracts not subject to rate recovery			―		―		―		1		1
Commodity contracts subject to rate recovery			8		2		85		30		125
Total		$	711	$	367	$	85	$	31	$	1,194
Liabilities:
Interest rate instruments		$	―	$	53	$	―	$	―	$	53
Commodity contracts subject to rate recovery			―		11		―		―		11
Total		$	―	$	64	$	―	$	―	$	64
		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 not subject to rate recovery			―		―		―		1		1
Commodity contracts subject to rate recovery			1		1		99		29		130
Total		$	674	$	323	$	99	$	30	$	1,126
Liabilities:
Interest rate instruments		$	―	$	55	$	―	$	―	$	55
Commodity contracts subject to rate recovery			―		12		―		―		12
Total		$	―	$	67	$	―	$	―	$	67
(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 June 30, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Commodity contracts not subject to rate recovery		$	―	$	―	$	―	$	2	$	2
Commodity contracts subject to rate recovery			―		1		―		2		3
Total		$	―	$	1	$	―	$	4	$	5
Liabilities:
Commodity contracts subject to rate recovery		$	―	$	1	$	―	$	―	$	1
Total		$	―	$	1	$	―	$	―	$	1
		At fair value as of December 31, 2013
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Commodity contracts not subject to rate recovery		$	―	$	―	$	―	$	2	$	2
Commodity contracts subject to rate recovery			1		―		―		2		3
Total		$	1	$	―	$	―	$	4	$	5
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.

Recurring Fair Value Measures Level 3 Rollforward Table

LEVEL 3 RECONCILIATIONS
(Dollars in millions)
	Three months ended June 30,
	2014		2013
Balance at April 1	$	95	$	58
Realized and unrealized gains (losses)		5		(2)
Settlements		(15)		(9)
Balance at June 30	$	85	$	47
Change in unrealized gains or losses relating to
instruments still held at June 30	$	―	$	(1)

	Six months ended June 30,
	2014		2013
Balance as of January 1	$	99	$	61
Realized and unrealized gains (losses)		6		(3)
Allocated transmission instruments		1		―
Settlements		(21)		(11)
Balance as of June 30	$	85	$	47
Change in unrealized gains or losses relating to
instruments still held at June 30	$	―	$	(1)

Fair Value of Financial Instruments Table

FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
		June 30, 2014
		Carrying		Fair Value
		Amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Investment in limited partnership		$	5	$	―	$	―	$	5	$	5
Total long-term debt(1)			11,952		―		12,250		884		13,134
Preferred stock of subsidiary			20		―		23		―		23
SDG&E:
Total long-term debt(2)		$	4,466	$	―	$	4,462	$	430	$	4,892
SoCalGas:
Total long-term debt(3)		$	1,413	$	―	$	1,550	$	―	$	1,550
Preferred stock			22		―		24		―		24
		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
(1)	Before reductions for unamortized discount (net of premium) of $19 million and $17 million at June 30, 2014 and December 31, 2013, respectively, and excluding build-to-suit and capital leases of $285 million and $195 million at June 30, 2014 and December 31, 2013, respectively, and commercial paper classified as long-term debt of $300 million and $200 million at June 30, 2014 and December 31, 2013, respectively. We discuss our long-term debt in Note 6 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report.
(2)	Before reductions for unamortized discount of $10 million and $11 million at June 30, 2014 and December 31, 2013, respectively, and excluding capital leases of $236 million and $179 million at June 30, 2014 and December 31, 2013, respectively.
(3)	Before reductions for unamortized discount of $5 million and $4 million at June 30, 2014 and December 31, 2013, respectively, and excluding capital leases of $1 million and $2 million at June 30, 2014 and December 31, 2013, respectively.