SCHEDULE I, CONDENSED FINANCIAL INFORMATION OF PARENT (Tables)

12 Months Ended

Dec. 31, 2015

SEMPRA ENERGY
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
	Years ended December 31,
	2015		2014		2013

Interest income	$	―	$	―	$	42
Interest expense		(261)		(235)		(239)
Operation and maintenance		(66)		(78)		(63)
Other income, net		7		50		41
Income tax benefits		150		133		117
Loss before equity in earnings of subsidiaries		(170)		(130)		(102)
Equity in earnings of subsidiaries, net of income taxes		1,519		1,291		1,103
Net income/earnings	$	1,349	$	1,161	$	1,001

Basic earnings per common share	$	5.43	$	4.72	$	4.10
Weighted-average number of shares outstanding (thousands)		248,249		245,891		243,863

Diluted earnings per common share	$	5.37	$	4.63	$	4.01
Weighted-average number of shares outstanding (thousands)		250,923		250,655		249,332
See Notes to Condensed Financial Information of Parent.

SEMPRA ENERGY
CONDENSED BALANCE SHEETS
(Dollars in millions)
		December 31,		December 31,
		2015		2014(1)
Assets:
Cash and cash equivalents		$	4	$	3
Due from affiliates			62		101
Deferred income taxes			―		398
Other current assets			4		15
Total current assets			70		517

Investments in subsidiaries			15,586		14,557
Due from affiliates			457		174
Deferred income taxes			2,188		1,544
Other assets			641		609
Total assets		$	18,942	$	17,401

Liabilities and shareholders’ equity:
Current portion of long-term debt		$	752	$	―
Due to affiliates			332		338
Income taxes payable			42		93
Other current liabilities			310		271
Total current liabilities			1,436		702

Long-term debt			5,195		4,644
Due to affiliates			―		230
Other long-term liabilities			502		499
Shareholders’ equity			11,809		11,326
Total liabilities and shareholders’ equity		$	18,942	$	17,401
(1)	As adjusted for the retrospective adoption of ASU 2015-03.
See Notes to Condensed Financial Information of Parent.

SEMPRA ENERGY
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Years ended December 31,
	2015		2014		2013

Net cash used in operating activities	$	(255)	$	(260)	$	(131)

Dividends received from subsidiaries		350		300		50
Expenditures for property, plant and equipment		(43)		(15)		(1)
Purchase of trust assets		(5)		(4)		(5)
Proceeds from sales by trust		―		―		10
Capital contribution to subsidiaries		―		―		(6)
(Increase) decrease in loans to affiliates, net		(457)		627		962
Cash (used in) provided by investing activities		(155)		908		1,010

Common stock dividends paid		(628)		(598)		(606)
Issuances of common stock		52		56		62
Repurchases of common stock		(74)		(38)		(45)
Issuances of long-term debt		1,248		499		498
Payments on long-term debt		―		(800)		(650)
(Decrease) increase in loans from affiliates, net		(230)		234		(147)
Tax benefit related to share-based compensation		52		―		―
Other		(9)		(4)		(3)
Cash provided by (used in) financing activities		411		(651)		(891)

Increase (decrease) in cash and cash equivalents		1		(3)		(12)
Cash and cash equivalents, January 1		3		6		18
Cash and cash equivalents, December 31	$	4	$	3	$	6

SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES
Financing of build-to-suit property	$	61	$	61	$	14
Common dividends issued in stock		55		42		―
Dividends declared but not paid		174		163		154
See Notes to Condensed Financial Information of Parent.

LONG-TERM DEBT
(Dollars in millions)
	December 31,		December 31,
	2015		2014(1)

6.5% Notes June 1, 2016, including $300 at variable rates after
fixed-to-floating rate swaps effective January 2011 (4.77% at December 31, 2015)	$	750	$	750
2.3% Notes April 1, 2017		600		600
6.15% Notes June 15, 2018		500		500
9.8% Notes February 15, 2019		500		500
2.4% Notes March 15, 2020		500		―
2.85% Notes November 15, 2020		400		―
2.875% Notes October 1, 2022		500		500
4.05% Notes December 1, 2023		500		500
3.55% Notes June 15, 2024		500		500
3.75% Notes November 15, 2025		350		―
6% Notes October 15, 2039		750		750
Market value adjustments for interest rate swaps, net		(2)		―
Build-to-suit lease		136		75
		5,984		4,675
Current portion of long-term debt		(752)		―
Unamortized discount on long-term debt		(10)		(9)
Unamortized debt issuance costs		(27)		(22)
Total long-term debt	$	5,195	$	4,644
(1) As adjusted for the retrospective adoption of ASU 2015-03.

SEMPRA ENERGY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
	Years ended December 31,
	Pretax		Income tax		Net-of-tax
	amount		benefit (expense)		amount
2015:
Net income	$	1,199	$	150	$	1,349
Other comprehensive income (loss):
Foreign currency translation adjustments		(260)		―		(260)
Financial instruments		(80)		33		(47)
Pension and other postretirement benefits		(3)		1		(2)
Total other comprehensive loss		(343)		34		(309)
Comprehensive income	$	856	$	184	$	1,040
2014:
Net income	$	1,028	$	133	$	1,161
Other comprehensive income (loss):
Foreign currency translation adjustments		(193)		―		(193)
Financial instruments		(106)		42		(64)
Pension and other postretirement benefits		(20)		8		(12)
Total other comprehensive loss		(319)		50		(269)
Comprehensive income	$	709	$	183	$	892
2013:
Net income	$	884	$	117	$	1,001
Other comprehensive income (loss):
Foreign currency translation adjustments		111		―		111
Financial instruments		13		(4)		9
Pension and other postretirement benefits		47		(19)		28
Total other comprehensive income		171		(23)		148
Comprehensive income	$	1,055	$	94	$	1,149
See Notes to Condensed Financial Information of Parent.