FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Sep. 30, 2015

Fair Value Measurements (Tables) [Abstract]

Recurring Fair Value Measures Table

RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		Fair value at September 30, 2015
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	588	$	―	$	―	$	―	$	588
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			51		44		―		―		95
Municipal bonds			―		154		―		―		154
Other securities			―		205		―		―		205
Total debt securities			51		403		―		―		454
Total nuclear decommissioning trusts(2)			639		403		―		―		1,042
Interest rate and foreign exchange instruments			―		7		―		―		7
Commodity contracts not subject to rate recovery			31		17		―		3		51
Commodity contracts subject to rate recovery			―		1		91		15		107
Total		$	670	$	428	$	91	$	18	$	1,207
Liabilities:
Interest rate and foreign exchange instruments		$	―	$	178	$	―	$	―	$	178
Commodity contracts not subject to rate recovery			8		2		―		(3)		7
Commodity contracts subject to rate recovery			―		67		55		(53)		69
Total		$	8	$	247	$	55	$	(56)	$	254
		Fair value at December 31, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	655	$	―	$	―	$	―	$	655
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			62		47		―		―		109
Municipal bonds			―		129		―		―		129
Other securities			―		207		―		―		207
Total debt securities			62		383		―		―		445
Total nuclear decommissioning trusts(2)			717		383		―		―		1,100
Interest rate and foreign exchange instruments			―		48		―		―		48
Commodity contracts not subject to rate recovery			28		16		―		(11)		33
Commodity contracts subject to rate recovery			―		1		107		14		122
Total		$	745	$	448	$	107	$	3	$	1,303
Liabilities:
Interest rate and foreign exchange instruments		$	―	$	155	$	―	$	―	$	155
Commodity contracts not subject to rate recovery			3		9		―		(4)		8
Commodity contracts subject to rate recovery			―		52		―		(36)		16
Total		$	3	$	216	$	―	$	(40)	$	179
(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 September 30, 2015
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	588	$	―	$	―	$	―	$	588
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			51		44		―		―		95
Municipal bonds			―		154		―		―		154
Other securities			―		205		―		―		205
Total debt securities			51		403		―		―		454
Total nuclear decommissioning trusts(2)			639		403		―		―		1,042
Commodity contracts not subject to rate recovery			―		―		―		1		1
Commodity contracts subject to rate recovery			―		―		91		14		105
Total		$	639	$	403	$	91	$	15	$	1,148
Liabilities:
Interest rate instruments		$	―	$	44	$	―	$	―	$	44
Commodity contracts not subject to rate recovery			1		―		―		(1)		―
Commodity contracts subject to rate recovery			―		67		55		(53)		69
Total		$	1	$	111	$	55	$	(54)	$	113
		Fair value at December 31, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	655	$	―	$	―	$	―	$	655
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			62		47		―		―		109
Municipal bonds			―		129		―		―		129
Other securities			―		207		―		―		207
Total debt securities			62		383		―		―		445
Total nuclear decommissioning trusts(2)			717		383		―		―		1,100
Commodity contracts subject to rate recovery			―		―		107		12		119
Total		$	717	$	383	$	107	$	12	$	1,219
Liabilities:
Interest rate instruments		$	―	$	47	$	―	$	―	$	47
Commodity contracts not subject to rate recovery			1		―		―		(1)		―
Commodity contracts subject to rate recovery			―		51		―		(36)		15
Total		$	1	$	98	$	―	$	(37)	$	62
(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 September 30, 2015
			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		$	2	$	―	$	―	$	(2)	$	―
Total		$	2	$	―	$	―	$	(2)	$	―
		Fair value at December 31, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Commodity contracts subject to rate recovery		$	―	$	1	$	―	$	2	$	3
Total		$	―	$	1	$	―	$	2	$	3
Liabilities:
Commodity contracts not subject to rate recovery		$	2	$	―	$	―	$	(2)	$	―
Commodity contracts subject to rate recovery			―		1		―		―		1
Total		$	2	$	1	$	―	$	(2)	$	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 September 30,
	2015		2014
Balance as of July 1	$	42	$	85
Realized and unrealized (losses) gains		(49)		3
Allocated transmission instruments		―		9
Settlements		43		(10)
Balance as of September 30	$	36	$	87
Change in unrealized gains or losses relating to
instruments still held at September 30	$	(8)	$	―

	Nine months ended September 30,
	2015		2014
Balance as of January 1	$	107	$	99
Realized and unrealized (losses) gains		(103)		9
Allocated transmission instruments		1		10
Settlements		31		(31)
Balance as of September 30	$	36	$	87
Change in unrealized gains or losses relating to
instruments still held at September 30	$	(54)	$	―

Fair Value of Financial Instruments Table

FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
		September 30, 2015
		Carrying		Fair value
		amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Total long-term debt(1)(2)		$	13,341	$	―	$	13,693	$	703	$	14,396
Preferred stock of subsidiary			20		―		22		―		22
SDG&E:
Total long-term debt(2)(3)		$	4,557	$	―	$	4,652	$	317	$	4,969
SoCalGas:
Total long-term debt(4)		$	2,512	$	―	$	2,658	$	―	$	2,658
Preferred stock			22		―		24		―		24
		December 31, 2014
		Carrying		Fair value
		amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Total long-term debt(1)(2)		$	12,347	$	―	$	12,782	$	917	$	13,699
Preferred stock of subsidiary			20		―		23		―		23
SDG&E:
Total long-term debt(2)(3)		$	4,461	$	―	$	4,563	$	425	$	4,988
SoCalGas:
Total long-term debt(4)		$	1,913	$	―	$	2,124	$	―	$	2,124
Preferred stock			22		―		25		―		25
(1)	Before reductions for unamortized discount (net of premium) of $21 million at both September 30, 2015 and December 31, 2014, and excluding build-to-suit and capital lease obligations of $375 million and $310 million at September 30, 2015 and December 31, 2014, 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)	Level 3 instruments include $317 million and $325 million at September 30, 2015 and December 31, 2014, respectively, related to Otay Mesa VIE.
(3)	Before reductions for unamortized discount of $10 million and $11 million at September 30, 2015 and December 31, 2014, respectively, and excluding capital lease obligations of $231 million and $234 million at September 30, 2015 and December 31, 2014, respectively.
(4)	Before reductions for unamortized discount of $7 million and $8 million at September 30, 2015 and December 31, 2014, respectively, and excluding capital lease obligations of $2 million and $1 million at September 30, 2015 and December 31, 2014, respectively.