REGULATORY MATTERS (Tables)

3 Months Ended

Mar. 31, 2024


REGULATORY ASSETS (LIABILITIES)
(Dollars in millions)
	Sempra				SDG&E				SoCalGas
	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023

Fixed-price contracts and other derivatives	$	50	$	215	$	26	$	14	$	24	$	201
Deferred income taxes recoverable in rates	1,327		1,142		668		626		573		430
Pension and PBOP plan obligations	(194)		(212)		58		48		(252)		(260)
Employee benefit costs	24		24		3		3		21		21
Removal obligations	(3,156)		(3,082)		(2,534)		(2,468)		(622)		(614)
Environmental costs	148		139		115		105		33		34
Sunrise Powerlink fire mitigation	125		124		125		124		—		—
Regulatory balancing accounts(1)(2):
Commodity – electric	(180)		(233)		(180)		(233)		—		—
Commodity – gas, including transportation	(280)		(259)		42		52		(322)		(311)
Safety and reliability	1,044		959		221		207		823		752
Public purpose programs	(361)		(273)		(162)		(144)		(199)		(129)
Wildfire mitigation plan	735		685		735		685		—		—
Liability insurance premium	110		113		86		90		24		23
Other balancing accounts	(112)		373		(282)		(152)		170		525
Other regulatory (liabilities) assets, net(2)	(85)		(10)		27		49		(110)		(58)
Total	$	(805)	$	(295)	$	(1,052)	$	(994)	$	163	$	614

(1) At March 31, 2024 and December 31, 2023, the noncurrent portion of regulatory balancing accounts – net undercollected for Sempra was $1,903 and $1,913, respectively, for SDG&E was $827 and $950, respectively, and for SoCalGas was $1,076 and $963, respectively.

(2) Includes regulatory assets earning a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate.

Schedule of Regulatory Liabilities


REGULATORY ASSETS (LIABILITIES)
(Dollars in millions)
	Sempra				SDG&E				SoCalGas
	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023

Fixed-price contracts and other derivatives	$	50	$	215	$	26	$	14	$	24	$	201
Deferred income taxes recoverable in rates	1,327		1,142		668		626		573		430
Pension and PBOP plan obligations	(194)		(212)		58		48		(252)		(260)
Employee benefit costs	24		24		3		3		21		21
Removal obligations	(3,156)		(3,082)		(2,534)		(2,468)		(622)		(614)
Environmental costs	148		139		115		105		33		34
Sunrise Powerlink fire mitigation	125		124		125		124		—		—
Regulatory balancing accounts(1)(2):
Commodity – electric	(180)		(233)		(180)		(233)		—		—
Commodity – gas, including transportation	(280)		(259)		42		52		(322)		(311)
Safety and reliability	1,044		959		221		207		823		752
Public purpose programs	(361)		(273)		(162)		(144)		(199)		(129)
Wildfire mitigation plan	735		685		735		685		—		—
Liability insurance premium	110		113		86		90		24		23
Other balancing accounts	(112)		373		(282)		(152)		170		525
Other regulatory (liabilities) assets, net(2)	(85)		(10)		27		49		(110)		(58)
Total	$	(805)	$	(295)	$	(1,052)	$	(994)	$	163	$	614

(2) Includes regulatory assets earning a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate.

CPUC Authorized Cost of Capital and Rate Structure


AUTHORIZED COST OF CAPITAL FOR 2023

SDG&E							SoCalGas
Authorized weighting		Return on rate base		Weighted return on rate base(1)			Authorized weighting		Return on rate base		Weighted return on rate base
45.25	%	4.05	%	1.83	%	Long-Term Debt	45.60	%	4.07	%	1.86	%
2.75		6.22		0.17		Preferred Equity	2.40		6.00		0.14
52.00		9.95		5.17		Common Equity	52.00		9.80		5.10
100.00	%			7.18	%		100.00	%			7.10	%

(1) Total weighted return on rate base does not sum due to rounding differences.

The CCM was triggered for SDG&E and SoCalGas on September 30, 2023. In December 2023, the CPUC approved increases to SDG&E’s and SoCalGas’ authorized rates of return effective January 1, 2024, which are in effect through December 31, 2025, subject to the CCM. In January 2024, several parties submitted a request for the CPUC to review such approval. In March 2024, the CPUC issued a proposed decision denying the intervenor petition seeking to suspend the CCM and its resulting changes that became effective on January 1, 2024. We expect a final decision in the second quarter of 2024.


AUTHORIZED COST OF CAPITAL FOR 2024 – 2025

SDG&E							SoCalGas
Authorized weighting		Return on rate base		Weighted return on rate base			Authorized weighting		Return on rate base		Weighted return on rate base
45.25	%	4.34	%	1.96	%	Long-Term Debt	45.60	%	4.54	%	2.07	%
2.75		6.22		0.17		Preferred Equity	2.40		6.00		0.14
52.00		10.65		5.54		Common Equity	52.00		10.50		5.46
100.00	%			7.67	%		100.00	%			7.67	%