FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2024


RECURRING FAIR VALUE MEASURES
(Dollars in millions)
	Level 1		Level 2		Level 3		Total
	Fair value at March 31, 2024
Sempra:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	24	$	4	$	—	$	28
Equity securities	322		3		—		325
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	42		17		—		59
Municipal bonds	—		270		—		270
Other securities	—		222		—		222
Total debt securities	42		509		—		551
Total nuclear decommissioning trusts(1)	388		516		—		904
Short-term investments held in Rabbi Trust	47		—		—		47
Interest rate instruments	—		223		—		223
Commodity contracts not subject to rate recovery	—		5		—		5
Effect of netting and allocation of collateral(2)	87		—		—		87
Commodity contracts subject to rate recovery	—		1		9		10
Effect of netting and allocation of collateral(2)	1		—		5		6
Support Agreement, net of related guarantee fees	—		—		23		23
Total	$	523	$	745	$	37	$	1,305
Liabilities:
Foreign exchange instruments	$	—	$	9	$	—	$	9
Commodity contracts not subject to rate recovery	—		9		—		9
Commodity contracts subject to rate recovery	26		28		—		54
Effect of netting and allocation of collateral(2)	(26)		—		—		(26)
Total	$	—	$	46	$	—	$	46

(1) Excludes receivables (payables), net.

(2) 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 (CONTINUED)
(Dollars in millions)
	Level 1		Level 2		Level 3		Total
	Fair value at December 31, 2023
Sempra:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	19	$	2	$	—	$	21
Equity securities	308		4		—		312
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	34		17		—		51
Municipal bonds	—		275		—		275
Other securities	—		220		—		220
Total debt securities	34		512		—		546
Total nuclear decommissioning trusts(1)	361		518		—		879
Short-term investments held in Rabbi Trust	67		—		—		67
Interest rate instruments	—		87		—		87
Commodity contracts not subject to rate recovery	—		5		—		5
Effect of netting and allocation of collateral(2)	74		—		—		74
Commodity contracts subject to rate recovery	—		1		10		11
Effect of netting and allocation of collateral(2)	16		—		6		22
Support Agreement, net of related guarantee fees	—		—		23		23
Total	$	518	$	611	$	39	$	1,168
Liabilities:
Foreign exchange instruments	$	—	$	9	$	—	$	9
Commodity contracts not subject to rate recovery	—		6		—		6
Commodity contracts subject to rate recovery	20		210		—		230
Effect of netting and allocation of collateral(2)	(19)		—		—		(19)
Total	$	1	$	225	$	—	$	226

(1) Excludes receivables (payables), net.

(2) 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
(Dollars in millions)
	Level 1		Level 2		Level 3		Total
	Fair value at March 31, 2024
SDG&E:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	24	$	4	$	—	$	28
Equity securities	322		3		—		325
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	42		17		—		59
Municipal bonds	—		270		—		270
Other securities	—		222		—		222
Total debt securities	42		509		—		551
Total nuclear decommissioning trusts(1)	388		516		—		904
Commodity contracts subject to rate recovery	—		—		9		9
Effect of netting and allocation of collateral(2)	—		—		5		5
Total	$	388	$	516	$	14	$	918
Liabilities:
Commodity contracts subject to rate recovery	$	26	$	4	$	—	$	30
Effect of netting and allocation of collateral(2)	(26)		—		—		(26)
Total	$	—	$	4	$	—	$	4

	Fair value at December 31, 2023
SDG&E:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	19	$	2	$	—	$	21
Equity securities	308		4		—		312
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	34		17		—		51
Municipal bonds	—		275		—		275
Other securities	—		220		—		220
Total debt securities	34		512		—		546
Total nuclear decommissioning trusts(1)	361		518		—		879
Commodity contracts subject to rate recovery	—		—		10		10
Effect of netting and allocation of collateral(2)	15		—		6		21
Total	$	376	$	518	$	16	$	910
Liabilities:
Commodity contracts subject to rate recovery	$	20	$	—	$	—	$	20
Effect of netting and allocation of collateral(2)	(19)		—		—		(19)
Total	$	1	$	—	$	—	$	1

(1) Excludes receivables (payables), net.

(2) 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
(Dollars in millions)
	Level 1		Level 2		Level 3		Total
	Fair value at March 31, 2024
SoCalGas:
Assets:
Commodity contracts subject to rate recovery	$	—	$	1	$	—	$	1
Effect of netting and allocation of collateral(1)	1		—		—		1
Total	$	1	$	1	$	—	$	2
Liabilities:
Commodity contracts subject to rate recovery	$	—	$	24	$	—	$	24
Total	$	—	$	24	$	—	$	24

	Fair value at December 31, 2023
SoCalGas:
Assets:
Commodity contracts subject to rate recovery	$	—	$	1	$	—	$	1
Effect of netting and allocation of collateral(1)	1		—		—		1
Total	$	1	$	1	$	—	$	2
Liabilities:
Commodity contracts subject to rate recovery	$	—	$	210	$	—	$	210
Total	$	—	$	210	$	—	$	210

(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

The table below sets forth reconciliations of changes in the fair value of CRRs classified as Level 3 in the fair value hierarchy for Sempra and SDG&E.


LEVEL 3 RECONCILIATIONS(1)
(Dollars in millions)









	Three months ended March 31,
	2024		2023
Balance at January 1	$	10	$	35
Realized and unrealized losses	(1)		(4)
Settlements	—		(1)
Balance at March 31	$	9	$	30
Change in unrealized losses relating to instruments still held at March 31	$	—	$	(2)

(1) Excludes the effect of the contractual ability to settle contracts under master netting agreements.

The table below sets forth reconciliations of changes in the fair value of Sempra’s Support Agreement for the benefit of CFIN classified as Level 3 in the fair value hierarchy.


LEVEL 3 RECONCILIATIONS
(Dollars in millions)








	Three months ended March 31,
	2024		2023
Balance at January 1	$	23	$	17
Realized and unrealized gains(1)	2		9
Settlements	(2)		(2)
Balance at March 31(2)	$	23	$	24
Change in unrealized gains relating to instruments still held at March 31	$	1	$	9

(1) Net gains are included in Interest Income and net losses are included in Interest Expense on Sempra’s Condensed Consolidated Statements of Operations.

(2) Includes $7 in Other Current Assets and $16 in Other Long-term Assets at March 31, 2024 on Sempra’s Condensed Consolidated Balance Sheet.

Schedule of Fair Value Inputs

For the CRRs settling from January 1 to December 31, the auction price inputs, at a given location, were in the following ranges for the years indicated below:


CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS

Settlement year	Price per MWh					Median price per MWh
2024	$	(3.69)	to	$	9.55	$	(0.44)
2023	(3.09)		to	10.71		(0.56)

Fair Value of Financial Instruments

The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets.


FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
	Carrying amount		Fair value
			Level 1		Level 2		Level 3		Total
	March 31, 2024
Sempra:

Long-term note receivable(1)	$	338	$	—	$	—	$	321	$	321
Long-term amounts due to unconsolidated affiliates	298		—		270		—		270
Total long-term debt(2)	29,125		—		26,679		—		26,679
SDG&E:
Total long-term debt(3)	$	8,950	$	—	$	7,915	$	—	$	7,915
SoCalGas:
Total long-term debt(4)	$	7,259	$	—	$	6,820	$	—	$	6,820

	December 31, 2023
Sempra:
Long-term note receivable(1)	$	334	$	—	$	—	$	318	$	318
Long-term amounts due to unconsolidated affiliates	312		—		283		—		283
Total long-term debt(2)	27,716		—		25,617		—		25,617
SDG&E:
Total long-term debt(3)	$	8,750	$	—	$	7,856	$	—	$	7,856
SoCalGas:
Total long-term debt(4)	$	6,759	$	—	$	6,442	$	—	$	6,442

(1) Before allowances for credit losses of $6 at March 31, 2024 and December 31, 2023. Excludes unamortized transaction costs of $4 at March 31, 2024 and December 31, 2023.

(2) Before reductions of unamortized discount and debt issuance costs of $343 and $322 at March 31, 2024 and December 31, 2023, respectively, and excluding finance lease obligations of $1,330 and $1,340 at March 31, 2024 and December 31, 2023, respectively.

(3) Before reductions of unamortized discount and debt issuance costs of $100 and $89 at March 31, 2024 and December 31, 2023, respectively, and excluding finance lease obligations of $1,224 and $1,233 at March 31, 2024 and December 31, 2023, respectively.

(4) Before reductions of unamortized discount and debt issuance costs of $62 and $55 at March 31, 2024 and December 31, 2023, respectively, and excluding finance lease obligations of $106 and $107 at March 31, 2024 and December 31, 2023, respectively.