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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2025


RECURRING FAIR VALUE MEASURES
(Dollars in millions)
	Level 1		Level 2		Level 3		Netting(1)		Total
	Fair value at September 30, 2025
Sempra:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	19	$	2	$	—			$	21
Equity securities	289		3		—				292
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	28		26		—				54
Municipal bonds	—		296		—				296
Other securities	—		254		—				254
Total debt securities	28		576		—				604
Total nuclear decommissioning trusts(2)	336		581		—				917
Short-term investments held in Rabbi Trust	22		—		—				22
Support Agreement, net of related guarantee fees	—		—		39				39



Commodity contracts subject to rate recovery	3		8		6		$	25	42
Total	361		589		45		25		1,020
Assets held for sale:
Interest rate instruments	—		214		—		—		214

Commodity contracts not subject to rate recovery	—		24		—		55		79
Total assets held for sale	—		238		—		55		293
Total assets	$	361	$	827	$	45	$	80	$	1,313
Liabilities:



Commodity contracts subject to rate recovery	$	34	$	106	$	—	$	(62)	$	78

Liabilities held for sale:

Foreign exchange instruments	—		5		—		—		5
Commodity contracts not subject to rate recovery	—		63		—		(5)		58
Total liabilities held for sale	—		68		—		(5)		63
Total liabilities	$	34	$	174	$	—	$	(67)	$	141

(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 receivables (payables), net.


RECURRING FAIR VALUE MEASURES
(Dollars in millions)
	Level 1		Level 2		Level 3		Netting(1)		Total
	Fair value at December 31, 2024
Sempra:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	8	$	2	$	—			$	10
Equity securities	295		3		—				298
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	41		26		—				67
Municipal bonds	—		287		—				287
Other securities	—		228		—				228
Total debt securities	41		541		—				582
Total nuclear decommissioning trusts(2)	344		546		—				890
Short-term investments held in Rabbi Trust	64		—		—				64
Support Agreement, net of related guarantee fees	—		—		25				25
Interest rate instruments	—		293		—		$	—	293
Foreign exchange instruments	—		5		—		—		5
Commodity contracts not subject to rate recovery	—		39		—		2		41
Commodity contracts subject to rate recovery	6		1		4		18		29
Total	$	414	$	884	$	29	$	20	$	1,347
Liabilities:

Commodity contracts not subject to rate recovery	$	1	$	63	$	—	$	(38)	$	26
Commodity contracts subject to rate recovery	20		45		—		(21)		44
Total	$	21	$	108	$	—	$	(59)	$	70

(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 receivables (payables), net.


RECURRING FAIR VALUE MEASURES
(Dollars in millions)
	Level 1		Level 2		Level 3		Netting(1)		Total
	Fair value at September 30, 2025
SDG&E:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	19	$	2	$	—			$	21
Equity securities	289		3		—				292
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	28		26		—				54
Municipal bonds	—		296		—				296
Other securities	—		254		—				254
Total debt securities	28		576		—				604
Total nuclear decommissioning trusts(2)	336		581		—				917
Commodity contracts subject to rate recovery	3		—		6		$	22	31
Total	$	339	$	581	$	6	$	22	$	948
Liabilities:
Commodity contracts subject to rate recovery	$	14	$	—	$	—	$	(14)	$	—


	Fair value at December 31, 2024
SDG&E:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	8	$	2	$	—			$	10
Equity securities	295		3		—				298
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	41		26		—				67
Municipal bonds	—		287		—				287
Other securities	—		228		—				228
Total debt securities	41		541		—				582
Total nuclear decommissioning trusts(2)	344		546		—				890
Commodity contracts subject to rate recovery	4		—		4		$	17	25
Total	$	348	$	546	$	4	$	17	$	915
Liabilities:
Commodity contracts subject to rate recovery	$	18	$	1	$	—	$	(18)	$	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.

(2) Excludes receivables (payables), net.


RECURRING FAIR VALUE MEASURES
(Dollars in millions)
	Level 1		Level 2		Level 3		Netting(1)		Total
	Fair value at September 30, 2025
SoCalGas:
Assets:
Commodity contracts subject to rate recovery	$	—	$	8	$	—	$	3	$	11
Liabilities:
Commodity contracts subject to rate recovery	$	20	$	106	$	—	$	(48)	$	78

	Fair value at December 31, 2024
SoCalGas:
Assets:
Commodity contracts subject to rate recovery	$	2	$	1	$	—	$	1	$	4
Liabilities:
Commodity contracts subject to rate recovery	$	2	$	44	$	—	$	(3)	$	43

(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 September 30,
	2025		2024
Balance at July 1	$	3	$	6
Realized and unrealized gains (losses), net	3		(3)
Allocated transmission instruments	2		1
Settlements	(2)		2
Balance at September 30	$	6	$	6
Change in unrealized gains (losses) relating to instruments still held at September 30	$	2	$	—

	Nine months ended September 30,
	2025		2024
Balance at January 1	$	4	$	10
Realized and unrealized gains (losses), net	1		(6)
Allocated transmission instruments	5		1
Settlements	(4)		1
Balance at September 30	$	6	$	6
Change in unrealized gains (losses) relating to instruments still held at September 30	$	(1)	$	(1)

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

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 September 30,
	2025		2024
Balance at July 1	$	39	$	23
Realized and unrealized gains (losses), net(1)	2		3
Settlements	(2)		(2)
Balance at September 30(2)	$	39	$	24
Change in unrealized gains (losses) relating to instruments still held at September 30	$	2	$	3

	Nine months ended September 30,
	2025		2024
Balance at January 1	$	25	$	23
Realized and unrealized gains (losses), net(1)	20		7
Settlements	(6)		(6)
Balance at September 30(2)	$	39	$	24
Change in unrealized gains (losses) relating to instruments still held at September 30	$	20	$	6

(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 $8 in Other Current Assets and $31 in Other Long-Term Assets at September 30, 2025 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
2025	$	(7.38)	to	$	15.54	$	0.01
2024	(3.69)		to	9.55		(0.44)

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
	September 30, 2025
Sempra:

Long-term note receivable(1)	$	364	$	—	$	—	$	359	$	359
Long-term amounts due to unconsolidated affiliates held for sale	417		—		400		—		400
Long-term debt held for sale(2)	6,961		—		6,661		—		6,661
Long-term debt(3)	29,866		—		28,376		—		28,376
SDG&E:
Long-term debt(4)	$	9,800	$	—	$	8,849	$	—	$	8,849
SoCalGas:
Long-term debt(5)	$	8,109	$	—	$	7,847	$	—	$	7,847

	December 31, 2024
Sempra:
Long-term note receivable(1)	$	351	$	—	$	—	$	334	$	334
Long-term amounts due to unconsolidated affiliates	352		—		324		—		324
Long-term debt(3)	32,899		—		30,193		—		30,193
SDG&E:
Long-term debt(4)	$	8,950	$	—	$	7,760	$	—	$	7,760
SoCalGas:
Long-term debt(5)	$	7,359	$	—	$	6,880	$	—	$	6,880

(1) Before allowances for credit losses of $4 and $5 at September 30, 2025 and December 31, 2024, respectively. Excludes unamortized transaction costs of $3 at both September 30, 2025 and December 31, 2024, respectively.

(2) After the effects of interest rate swaps. Before reductions of unamortized discount and debt issuance costs of $121 at September 30, 2025.

(3) After the effects of interest rate swaps at December 31, 2024. Before reductions of unamortized discount and debt issuance costs of $311 and $382 at September 30, 2025 and December 31, 2024, respectively, and excluding finance lease obligations of $1,305 and $1,315 at September 30, 2025 and December 31, 2024, respectively.

(4) Before reductions of unamortized discount and debt issuance costs of $99 and $95 at September 30, 2025 and December 31, 2024, respectively, and excluding finance lease obligations of $1,181 and $1,205 at September 30, 2025 and December 31, 2024, respectively.

(5) Before reductions of unamortized discount and debt issuance costs of $81 and $65 at September 30, 2025 and December 31, 2024, respectively, and excluding finance lease obligations of $124 and $110 at September 30, 2025 and December 31, 2024, respectively.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details