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Regulatory Matters (Tables)
 9 Months Ended
Sep. 30, 2017
Regulated Operations [Abstract]  
Proposed Revenue Requirements the embedded cost of debt presented in the filed advice letters, resulting in a revised return on rate base for SDG&E and SoCalGas of 7.55 percent and 7.34 percent, respectively, effective January 1, 2018, as depicted in the table below:
AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE – CPUC
 
 
 
 
 
 
 
 
 
 
 
 
 
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
%
4.59
%
2.08
%
Long-Term Debt
45.60
%
4.33
%
1.97
%
2.75
%
6.22
%
0.17
%
Preferred Stock
2.40
%
6.00
%
0.14
%
52.00
%
10.20
%
5.30
%
Common Equity
52.00
%
10.05
%
5.23
%
100.00
%
 
 
7.55
%
 
100.00
%
 
 
7.34
%

As a result of the updates included in the filed advice letters, the impact of the changes to the embedded cost of debt and return on rate base is summarized below:
IMPACT OF THE EMBEDDED COST OF DEBT
 
 
 
 
SDG&E
 
SoCalGas
 
Cost of
debt
Return on
rate base
 
Cost of
debt
Return on
rate base
Current
5.00

%
7.79

%
 
5.77

%
8.02

%
Authorized, effective January 1, 2018
4.59

%
7.55

%
 
4.33

%
7.34

%
Differences
(41
)
bps
(24
)
bps
 
(144
)
bps
(68
)
bps