FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Recurring Fair Value Measures Table

RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		Fair value at June 30, 2016
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	632	$	―	$	―	$	―	$	632
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			52		52		―		―		104
Municipal bonds			―		163		―		―		163
Other securities			―		192		―		―		192
Total debt securities			52		407		―		―		459
Total nuclear decommissioning trusts(2)			684		407		―		―		1,091
Interest rate and foreign exchange instruments			―		1		―		―		1
Commodity contracts not subject to rate recovery			1		17		―		14		32
Commodity contracts subject to rate recovery			―		1		63		27		91
Total		$	685	$	426	$	63	$	41	$	1,215
Liabilities:
Interest rate and foreign exchange instruments		$	―	$	211	$	―	$	―	$	211
Commodity contracts not subject to rate recovery			32		5		―		(31)		6
Commodity contracts subject to rate recovery			1		37		39		(28)		49
Total		$	33	$	253	$	39	$	(59)	$	266
		Fair value at December 31, 2015
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	619	$	―	$	―	$	―	$	619
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			47		44		―		―		91
Municipal bonds			―		156		―		―		156
Other securities			―		182		―		―		182
Total debt securities			47		382		―		―		429
Total nuclear decommissioning trusts(2)			666		382		―		―		1,048
Interest rate and foreign exchange instruments			―		5		―		―		5
Commodity contracts not subject to rate recovery			22		16		―		(4)		34
Commodity contracts subject to rate recovery			―		1		72		28		101
Total		$	688	$	404	$	72	$	24	$	1,188
Liabilities:
Interest rate and foreign exchange instruments		$	―	$	171	$	―	$	―	$	171
Commodity contracts not subject to rate recovery			5		3		―		(4)		4
Commodity contracts subject to rate recovery			―		68		53		(54)		67
Total		$	5	$	242	$	53	$	(58)	$	242
(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)
		Fair value at June 30, 2016
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	632	$	―	$	―	$	―	$	632
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			52		52		―		―		104
Municipal bonds			―		163		―		―		163
Other securities			―		192		―		―		192
Total debt securities			52		407		―		―		459
Total nuclear decommissioning trusts(2)			684		407		―		―		1,091
Commodity contracts subject to rate recovery			―		―		63		26		89
Total		$	684	$	407	$	63	$	26	$	1,180
Liabilities:
Interest rate instruments		$	―	$	37	$	―	$	―	$	37
Commodity contracts subject to rate recovery			―		36		39		(27)		48
Total		$	―	$	73	$	39	$	(27)	$	85
		Fair value at December 31, 2015
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	619	$	―	$	―	$	―	$	619
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			47		44		―		―		91
Municipal bonds			―		156		―		―		156
Other securities			―		182		―		―		182
Total debt securities			47		382		―		―		429
Total nuclear decommissioning trusts(2)			666		382		―		―		1,048
Commodity contracts not subject to rate recovery			―		―		―		1		1
Commodity contracts subject to rate recovery			―		―		72		27		99
Total		$	666	$	382	$	72	$	28	$	1,148
Liabilities:
Interest rate instruments		$	―	$	37	$	―	$	―	$	37
Commodity contracts not subject to rate recovery			1		―		―		(1)		―
Commodity contracts subject to rate recovery			―		67		53		(54)		66
Total		$	1	$	104	$	53	$	(55)	$	103
(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)
		Fair value at June 30, 2016
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Commodity contracts not subject to rate recovery		$	―	$	―	$	―	$	1	$	1
Commodity contracts subject to rate recovery			―		1		―		1		2
Total		$	―	$	1	$	―	$	2	$	3
Liabilities:
Commodity contracts not subject to rate recovery		$	1	$	―	$	―	$	(1)	$	―
Commodity contracts subject to rate recovery			1		1		―		(1)		1
Total		$	2	$	1	$	―	$	(2)	$	1
		Fair value at December 31, 2015
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Commodity contracts subject to rate recovery		$	―	$	1	$	―	$	1	$	2
Total		$	―	$	1	$	―	$	1	$	2
Liabilities:
Commodity contracts not subject to rate recovery		$	1	$	―	$	―	$	(1)	$	―
Commodity contracts subject to rate recovery			―		1		―		―		1
Total		$	1	$	1	$	―	$	(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,
	2016		2015
Balance as of April 1	$	11	$	102
Realized and unrealized gains (losses)		8		(60)
Allocated transmission instruments		―		1
Settlements		5		(1)
Balance as of June 30	$	24	$	42
Change in unrealized gains relating to
instruments still held at June 30	$	9	$	45

	Six months ended June 30,
	2016		2015
Balance as of January 1	$	19	$	107
Realized and unrealized gains (losses)		7		(54)
Allocated transmission instruments		―		1
Settlements		(2)		(12)
Balance as of June 30	$	24	$	42
Change in unrealized gains relating to
instruments still held at June 30	$	9	$	46

Fair Value of Financial Instruments Table

FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
		June 30, 2016
		Carrying		Fair value
		amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Noncurrent due from unconsolidated affiliates(1)		$	179	$	―	$	94	$	77	$	171
Total long-term debt(2)(3)			13,811		―		14,933		572		15,505
Preferred stock of subsidiary			20		―		25		―		25
SDG&E:
Total long-term debt(3)(4)		$	4,677	$	―	$	5,055	$	310	$	5,365
SoCalGas:
Total long-term debt(5)		$	3,009	$	―	$	3,335	$	―	$	3,335
Preferred stock			22		―		27		―		27
		December 31, 2015
		Carrying		Fair value
		amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Noncurrent due from unconsolidated affiliates(1)		$	175	$	―	$	97	$	69	$	166
Total long-term debt(2)(3)			13,761		―		13,985		648		14,633
Preferred stock of subsidiary			20		―		23		―		23
SDG&E:
Total long-term debt(3)(4)		$	4,304	$	―	$	4,355	$	315	$	4,670
SoCalGas:
Total long-term debt(5)		$	2,513	$	―	$	2,621	$	―	$	2,621
Preferred stock			22		―		25		―		25
(1)	Excluding accumulated interest outstanding of $13 million and $11 million at June 30, 2016 and December 31, 2015, respectively.
(2)	Before reductions for unamortized discount (net of premium) and debt issuance costs of $111 million and $107 million at June 30, 2016 and December 31, 2015, respectively, and excluding build-to-suit and capital lease obligations of $385 million and $387 million at June 30, 2016 and December 31, 2015, 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.
(3)	Level 3 instruments include $310 million and $315 million at June 30, 2016 and December 31, 2015, respectively, related to Otay Mesa VIE.
(4)	Before reductions for unamortized discount and debt issuance costs of $47 million and $43 million at June 30, 2016 and December 31, 2015, respectively, and excluding capital lease obligations of $242 million and $244 million at June 30, 2016 and December 31, 2015, respectively.
(5)	Before reductions for unamortized discount and debt issuance costs of $28 million and $24 million at June 30, 2016 and December 31, 2015, respectively, and excluding capital lease obligations of $1 million both at June 30, 2016 and December 31, 2015.

Fair Value Measurements, Nonrecurring Table

NON-RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		Estimated				Fair	% of	Inputs used to
		fair				value	fair value	develop	Range of
		value			Valuation technique	hierarchy	measurement	measurement	inputs
Investment in
Rockies Express		$	440	(1)	Market approach	Level 2	100%	Equity sale price	100%
(1)	At measurement date of March 29, 2016.