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FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
RECURRING FAIR VALUE MEASURES
The tables below set forth our financial assets and liabilities, by level within the fair value hierarchy, that were accounted for at fair value on a recurring basis at December 31, 2025 and 2024. We classify financial assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair-valued assets and liabilities and their placement within the fair value hierarchy.
The determination of fair values, shown in the tables below, incorporates various factors, including but not limited to, the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests).
Our financial assets and liabilities that were accounted for at fair value on a recurring basis in the tables below include the following:
▪Nuclear decommissioning trusts reflect the assets of SDG&E’s NDT, excluding accounts receivable and accounts payable. A third-party trustee values the trust assets using prices from a pricing service based on a market approach. We validate these prices by comparison to prices from other independent data sources. Securities are valued using quoted prices listed on nationally recognized securities exchanges or based on closing prices reported in the active market in which the identical security is traded (Level 1). Other securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2).
▪For commodity contracts, interest rate instruments and foreign exchange instruments, we primarily use a market or income approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs at SDG&E, as we discuss below in “Level 3 Information – SDG&E” and natural gas derivatives at Sempra Infrastructure, as we discuss below in “Level 3 Information – Other Sempra.” We further discuss derivative assets and liabilities in Note 10.
▪Rabbi Trust investments include short-term investments that consist of money market and mutual funds that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1).
▪As we discuss in Note 16, in July 2020, Sempra entered into the Support Agreement for the benefit of CFIN. We measure the Support Agreement, which includes a guarantee obligation, a put option and a call option, net of related guarantee fees, at fair value on a recurring basis. We use a discounted cash flow model to value the Support Agreement, net of related guarantee fees. Because some of the inputs that are significant to the valuation are less observable, the Support Agreement is classified as Level 3, as we describe below in “Level 3 Information – Other Sempra.”
RECURRING FAIR VALUE MEASURES
(Dollars in millions)
Level 1Level 2Level 3
Netting(1)
Total
Fair value at December 31, 2025
Sempra:
Assets:    
Nuclear decommissioning trusts:    
Short-term investments, primarily cash equivalents
$9 $3 $— $12 
Equity securities285 3 — 288 
Debt securities:    
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies
28 19 — 47 
Municipal bonds— 300 — 300 
Other securities— 255 — 255 
Total debt securities28 574 — 602 
Total nuclear decommissioning trusts(2)
322 580 — 902 
Short-term investments held in Rabbi Trust49 — — 49 
Support Agreement, net of related guarantee fees— — 41 41 
Commodity contracts subject to rate recovery2 24 10 $17 53 
373 604 51 17 1,045 
Assets held for sale:
Interest rate instruments— 267 — — 267 
Commodity contracts not subject to rate recovery— 8 1 33 42 
Total assets held for sale
— 275 1 33 309 
Total assets
$373 $879 $52 $50 $1,354 
Liabilities:    
Commodity contracts subject to rate recovery$37 $107 $— $(78)$66 
Liabilities held for sale:
Foreign exchange instruments— 8 — — 8 
Commodity contracts not subject to rate recovery— 10 56 (5)61 
Total liabilities held for sale— 18 56 (5)69 
Total liabilities$37 $125 $56 $(83)$135 
Fair value at December 31, 2024
Sempra:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents$8 $2 $— $10 
Equity securities295 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 securities41 541 — 582 
Total nuclear decommissioning trusts(2)
344 546 — 890 
Short-term investments held in Rabbi Trust64 — — 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 recovery6 1 4 18 29 
Total assets
$414 $884 $29 $20 $1,347 
Liabilities:
Commodity contracts not subject to rate recovery$1 $63 $— $(38)$26 
Commodity contracts subject to rate recovery20 45 — (21)44 
Total liabilities$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 1Level 2Level 3
Netting(1)
Total
 
Fair value at December 31, 2025
SDG&E:
Assets: 
Nuclear decommissioning trusts: 
Short-term investments, primarily cash equivalents$9 $3 $— $12 
Equity securities285 3 — 288 
Debt securities: 
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies
28 19 — 47 
Municipal bonds— 300 — 300 
Other securities— 255 — 255 
Total debt securities28 574 — 602 
Total nuclear decommissioning trusts(2)
322 580 — 902 
Commodity contracts subject to rate recovery2 — 10 $12 24 
Total$324 $580 $10 $12 $926 
Liabilities: 
Commodity contracts subject to rate recovery$17 $— $— $(17)$— 
 
Fair value at December 31, 2024
SDG&E:
Assets: 
Nuclear decommissioning trusts: 
Short-term investments, primarily cash equivalents$8 $2 $— $10 
Equity securities295 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 securities41 541 — 582 
Total nuclear decommissioning trusts(2)
344 546 — 890 
Commodity contracts subject to rate recovery4 — 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 1Level 2Level 3
Netting(1)
Total
 
Fair value at December 31, 2025
SoCalGas:
Assets: 
Commodity contracts subject to rate recovery$— $24 $— $5 $29 
Liabilities: 
Commodity contracts subject to rate recovery$20 $107 $— $(61)$66 
 
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.
Level 3 Information
SDG&E
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)
 202520242023
Balance at January 1$4 $10 $35 
Realized and unrealized gains (losses), net2 (10)(17)
Allocated transmission instruments8 3 (1)
Settlements(4)1 (7)
Balance at December 31$10 $4 $10 
Change in unrealized gains (losses) relating to instruments still held at December 31$— $(4)$(13)
(1)     Excludes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral.
Realized gains and losses associated with CRRs, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Consolidated Statements of Operations. Because unrealized gains and losses are recorded as regulatory assets and liabilities, they do not affect earnings. Inputs used to determine the fair value of CRRs are reviewed and compared with market conditions to determine reasonableness.
CRRs are recorded at fair value based almost entirely on the most current auction prices published by the California ISO, an objective source. Annual auction prices are published once a year, typically in the middle of November, and are the basis for valuing CRRs settling in the following year. 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 yearPrice per MWhMedian price per MWh
2026$(0.31)to$13.76 $4.05 
2025(7.38)to15.54 0.01 
2024(3.69)to9.55 (0.44)
The impact associated with discounting is not significant. Because these auction prices are a less observable input, these instruments are classified as Level 3. The fair value of these instruments is derived from auction price differences between two locations. Positive values between two locations represent expected future reductions in congestion costs, whereas negative values between two locations represent expected future charges. Valuation of our CRRs is sensitive to a change in auction price. If auction prices at one location increase (decrease) relative to another location, this could result in a significantly higher (lower) fair value measurement. We summarize CRR volumes in Note 10.
Other Sempra
Support Agreement. 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)
 202520242023
Balance at January 1$25 $23 $17 
Realized and unrealized gains (losses), net(1)
24 11 15 
Settlements(8)(9)(9)
Balance at December 31(2)
$41 $25 $23 
Change in unrealized gains (losses) relating to instruments still held at December 31$24 $8 $13 
(1)    Net gains are included in Interest Income and net losses are included in Interest Expense on Sempra’s Consolidated Statements of Operations.
(2)    Balance at December 31, 2025 and 2024 includes $8 and $7, respectively, in Other Current Assets, and $33 and $18, respectively, in Other Long-Term Assets on Sempra’s Consolidated Balance Sheet.
The fair value of the Support Agreement, net of related guarantee fees, is based on a discounted cash flow model using a probability of default and survival methodology. Our estimate of fair value considers inputs such as third-party default rates, credit ratings, recovery rates, and risk-adjusted discount rates, which may be readily observable, market corroborated or generally unobservable inputs. Because CFIN’s credit rating and related default and survival rates are unobservable inputs that are significant to the valuation, the Support Agreement, net of related guarantee fees, is classified as Level 3. We assigned CFIN an internally developed credit rating of A2 and A3 at December 31, 2025 and 2024, respectively, and relied on default rate data published by Moody’s to assign a probability of default. A hypothetical change in the credit rating up or down one notch would not result in a significant change in the fair value of the Support Agreement.
Commodity contracts not subject to rate recovery. The table below sets forth a reconciliation of the change in the fair value of natural gas derivatives classified as Level 3 in the fair value hierarchy.
LEVEL 3 RECONCILIATION
(Dollars in millions)
 2025
Balance at January 1$— 
Transfer from Level 2 to Level 3(55)
Balance at December 31$(55)
Change in unrealized gains (losses) relating to instruments still held at December 31$— 
At the end of the reporting period, we refined how we determine the fair value of certain natural gas derivatives to include significant unobservable inputs. Because these inputs are not based on observable market data, the instruments no longer meet the criteria for Level 2 classification. As a result, we transferred their fair value measurement from Level 2 to Level 3 in the fair value hierarchy. Realized and unrealized gains and losses associated with commodity contracts not subject to rate recovery are recorded in Revenues: Energy-Related Businesses or Energy-Related Businesses Cost of Sales on the Sempra Consolidated Statement of Operations.
We estimate the fair value of our natural gas derivatives using an income approach. These instruments are classified as Level 3 within the fair value hierarchy because their valuation relies on significant unobservable inputs. Key unobservable inputs include implied forward price curves at illiquid delivery locations and location-specific forward price adjustments. When observable market data is limited or unavailable at these illiquid delivery points, we apply industry-standard valuation methodologies to develop unobservable inputs that maximize the use of observable information, including extrapolation and the use of historical market data and other relevant information.
The following table presents information about the significant unobservable inputs used in the valuation of our Level 3 natural gas derivatives at December 31, 2025:
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENT
Fair value
(in millions)		Valuation techniqueUnobservable inputRange Weighted average
Commodity contracts not subject to rate recovery$(55)Income approachForward natural gas price per MMBtu$0.29 
–
$2.41 $1.61 
The valuation of our natural gas derivatives is sensitive to changes in forward pricing and location-specific price adjustments. Generally, significant increases or decreases in forward pricing, in isolation, would decrease or increase, respectively, the fair value of the natural gas derivatives. We evaluate valuation inputs and assumptions at least quarterly and update inputs as necessary to reflect changes.
Fair Value of Financial Instruments
The fair values of certain of our financial instruments (cash, current and noncurrent accounts receivable, amounts due to/from unconsolidated affiliates with original maturities of less than 90 days, dividends and accounts payable due in one year or less, short-term debt and customer deposits) approximate their carrying amounts because of the short-term nature of these instruments. Investments in life insurance contracts that we hold in support of our Supplemental Executive Retirement Plan, Cash Balance Restoration Plan and Employee and Director Savings Plan are carried at cash surrender values, which represent the amount of cash that could be realized under the contracts. The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Consolidated Balance Sheets.
FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
CarryingFair value
amountLevel 1Level 2Level 3Total
December 31, 2025
Sempra:
Long-term note receivable(1)
$369 $— $— $366 $366 
Long-term amounts due to unconsolidated affiliates held for sale477 — 463 — 463 
Long-term debt held for sale(2)
7,925 — 7,611 — 7,611 
Long-term debt(3)
29,867 — 28,282 — 28,282 
SDG&E:
Long-term debt(4)
$9,800 $— $8,810 $— $8,810 
SoCalGas:
Long-term debt(5)
$8,109 $— $7,818 $— $7,818 
 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 December 31, 2025 and 2024, respectively. Excludes unamortized transaction costs of $3 at both December 31, 2025 and 2024, respectively.
(2)    After the effects of interest rate swaps. Before reductions of unamortized discount and debt issuance costs of $132 at December 31, 2025.
(3)    After the effects of interest rate swaps at December 31, 2024. Before reductions of unamortized discount and debt issuance costs of $305 and $382 at December 31, 2025 and 2024, respectively, and excluding finance lease obligations of $1,293 and $1,315 at December 31, 2025 and 2024, respectively.
(4)    Before reductions of unamortized discount and debt issuance costs of $97 and $95 at December 31, 2025 and 2024, respectively, and excluding finance lease obligations of $1,176 and $1,205 at December 31, 2025 and 2024, respectively.
(5)    Before reductions of unamortized discount and debt issuance costs of $78 and $65 at December 31, 2025 and 2024, respectively, and excluding finance lease obligations of $117 and $110 at December 31, 2025 and 2024, respectively.

We provide the fair values for the securities held in the NDT related to SONGS in Note 15.