DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Sep. 30, 2011

Derivative Financial Instruments (Tables) [Abstract]


Business Unit and Commodity		September 30, 2011	December 31, 2010
Sempra Utilities:
SDG&E:
Natural gas		42 million MMBtu	51 million MMBtu	(1)
Congestion revenue rights		16 million MWh	21 million MWh	(2)

Energy-Related Businesses:
Sempra Generation - electric power		7 million MWh	1 million MWh
Sempra Pipelines & Storage - natural gas		8 million MMBtu	8 million MMBtu
Sempra LNG - natural gas		5 million MMBtu	7 million MMBtu
(1)	Million British thermal units
(2)	Megawatt hours

Notional Amounts of Interest Rate Derivatives Table

		September 30, 2011			December 31, 2010
(Dollars in millions)		Notional Debt		Maturities	Notional Debt		Maturities
Sempra Energy Consolidated(1)		$	15-305	2013-2019	$	215-355	2011-2019
SDG&E(1)			285-358	2019		285-365	2019
SoCalGas			―	―		150	2011
(1)	Includes Otay Mesa VIE. All of SDG&E's interest rate derivatives relate to Otay Mesa VIE.

Derivative Instruments on the Condensed Consolidated Balance Sheets Table

DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
		September 30, 2011
									Deferred
									credits
			Current				Current		and other
			assets:				liabilities:		liabilities:
			Fixed-price		Investments		Fixed-price		Fixed-price
			contracts		and other		contracts		contracts
			and other		assets:		and other		and other
Derivatives designated as hedging instruments			derivatives(1)		Sundry		derivatives(2)		derivatives
Sempra Energy Consolidated:
Interest rate instruments(3)		$	7	$	13	$	(16)	$	(63)
SDG&E:
Interest rate instruments(3)		$	―	$	―	$	(16)	$	(63)

Derivatives not designated as hedging instruments
Sempra Energy Consolidated:
Interest rate instruments		$	9	$	41	$	(8)	$	(35)
Commodity contracts not subject to rate recovery			104		36		(89)		(57)
Associated offsetting commodity contracts			(60)		(27)		60		27
Commodity contracts subject to rate recovery			10		2		(43)		(24)
Associated offsetting commodity contracts			(8)		(1)		8		1
Total		$	55	$	51	$	(72)	$	(88)
SDG&E:
Commodity contracts subject to rate recovery		$	6	$	2	$	(37)	$	(24)
Associated offsetting commodity contracts			(4)		(1)		4		1
Total		$	2	$	1	$	(33)	$	(23)
SoCalGas:
Commodity contracts subject to rate recovery		$	5	$	―	$	(7)	$	―
Associated offsetting commodity contracts			(4)		―		4		―
Total		$	1	$	―	$	(3)	$	―
(1)	Included in Current Assets: Other for SoCalGas.
(2)	Included in Current Liabilities: Other for SoCalGas.
(3)	Includes Otay Mesa VIE. All of SDG&E's amounts relate to Otay Mesa VIE.

DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
		December 31, 2010
									Deferred
									credits
			Current				Current		and other
			assets:				liabilities:		liabilities:
			Fixed-price		Investments		Fixed-price		Fixed-price
			contracts		and other		contracts		contracts
			and other		assets:		and other		and other
Derivatives designated as hedging instruments			derivatives(1)		Sundry		derivatives(2)		derivatives
Sempra Energy Consolidated:
Interest rate instrument		$	3	$	―	$	―	$	―
SoCalGas:
Interest rate instrument		$	3	$	―	$	―	$	―

Derivatives not designated as hedging instruments
Sempra Energy Consolidated:
Interest rate instruments(3)		$	9	$	22	$	(25)	$	(57)
Commodity contracts not subject to rate recovery			59		20		(44)		(34)
Associated offsetting commodity contracts			(2)		(8)		2		8
Commodity contracts subject to rate recovery			5		―		(43)		(27)
Associated offsetting commodity contracts			(37)		(26)		37		26
Total		$	34	$	8	$	(73)	$	(84)
SDG&E:
Interest rate instruments(3)		$	―	$	―	$	(17)	$	(41)
Commodity contracts not subject to rate recovery			1		―		―		―
Commodity contracts subject to rate recovery			2		―		(35)		(27)
Associated offsetting commodity contracts			(34)		(26)		34		26
Total		$	(31)	$	(26)	$	(18)	$	(42)
SoCalGas:
Commodity contracts not subject to rate recovery		$	1	$	―	$	―	$	―
Commodity contracts subject to rate recovery			3		―		(3)		―
Associated offsetting commodity contracts			(3)		―		3		―
Total		$	1	$	―	$	―	$	―
(1)	Included in Current Assets: Other for SoCalGas.
(2)	Included in Current Liabilities: Other for SoCalGas.
(3)	Includes Otay Mesa VIE. All of SDG&E's amounts relate to Otay Mesa VIE.

Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table

FAIR VALUE HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
			Gain (loss) on derivatives recognized in earnings
			Three months ended September 30,				Nine months ended September 30,
		Location	2011		2010		2011		2010
Sempra Energy Consolidated:
Interest rate instruments		Interest Expense	$	2	$	2	$	7	$	9
Interest rate instruments		Other Income, Net		13		(2)		16		(11)
Total(1)			$	15	$	―	$	23	$	(2)
SoCalGas:
Interest rate instrument		Interest Expense	$	―	$	2	$	1	$	5
Interest rate instrument		Other Income, Net		―		(2)		(3)		(4)
Total(1)			$	―	$	―	$	(2)	$	1
(1)	There has been no hedge ineffectiveness on these swaps. Changes in the fair values of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt.

Cash Flow Hedge Impact on the Condensed Consolidated Statements of Operations Table

CASH FLOW HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
		Pretax gain (loss) recognized					Gain (loss) reclassified from AOCI
		in OCI (effective portion)					into earnings (effective portion)
		Three months ended September 30,					Three months ended September 30,
		Three months ended September 30,					Three months ended September 30,
		2011		2010		Location	2011		2010
Sempra Energy Consolidated:
Interest rate instruments(1)		$	(21)	$	―	Interest Expense	$	4	$	(2)
Interest rate instruments			(27)		―	Equity Losses, Before Income Tax		(2)		―
Commodity contracts not subject
to rate recovery			―		1	Equity Losses, Before Income Tax		―		7
Total		$	(48)	$	1		$	2	$	5
SDG&E:
Interest rate instruments(1)		$	(21)	$	―	Interest Expense	$	4	$	(1)
SoCalGas:
Interest rate instruments		$	―	$	―	Interest Expense	$	(1)	$	(1)
		Nine months ended September 30,					Nine months ended September 30,
		Nine months ended September 30,					Nine months ended September 30,
		2011		2010		Location	2011		2010
Sempra Energy Consolidated:
Interest rate instruments(1)		$	(32)	$	―	Interest Expense	$	―	$	(9)
Interest rate instruments			―		―	Other Income, Net(2)		―		10
Interest rate instruments			(34)		―	Equity Losses, Before Income Tax		(3)		―
Commodity contracts not subject
to rate recovery			―		1	Equity Losses, Before Income Tax		―		14
Total		$	(66)	$	1		$	(3)	$	15
SDG&E:
Interest rate instruments(1)		$	(32)	$	―	Interest Expense	$	2	$	(5)
SoCalGas:
Interest rate instruments		$	―	$	―	Interest Expense	$	(3)	$	(4)
(1)	Amounts include Otay Mesa VIE. All of SDG&E's interest rate derivative activity relates to Otay Mesa VIE. There has been a negligible amount of ineffectiveness related to these swaps.
(2)	Gains reclassified into earnings due to changes in cash requirements and associated impacts on forecasted interest payments, primarily related to proceeds received from RBS Sempra Commodities. See Note 4.

Undesignated Derivative Impact on the Condensed Consolidated Statements of Operations Table

UNDESIGNATED DERIVATIVE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
			Gain (loss) on derivatives recognized in earnings
			Three months ended September 30,				Nine months ended September 30,
		Location	2011		2010		2011		2010
Sempra Energy Consolidated:
Interest rate and foreign exchange
instruments(1)		Other Income, Net	$	(26)	$	(17)	$	(14)	$	(50)
Commodity contracts not subject		Revenues: Energy-Related
to rate recovery		Businesses		3		15		17		45
Commodity contracts not subject		Cost of Natural Gas, Electric
to rate recovery		Fuel and Purchased Power		―		(7)		1		(22)
Commodity contracts not subject
to rate recovery		Other Operation and Maintenance		―		―		1		―
Commodity contracts subject		Cost of Electric Fuel
to rate recovery		and Purchased Power		(15)		(39)		(6)		(100)
Commodity contracts subject
to rate recovery		Cost of Natural Gas		(2)		(5)		(1)		(9)
Total			$	(40)	$	(53)	$	(2)	$	(136)
SDG&E:
Interest rate instruments(1)		Other Income (Expense), Net	$	―	$	(17)	$	―	$	(51)
Commodity contracts not subject
to rate recovery		Operation and Maintenance		(1)		―		―		―
Commodity contracts subject		Cost of Electric Fuel
to rate recovery		and Purchased Power		(15)		(39)		(6)		(100)
Total			$	(16)	$	(56)	$	(6)	$	(151)
SoCalGas:
Commodity contracts not subject
to rate recovery		Operation and Maintenance	$	(1)	$	―	$	―	$	―
Commodity contracts subject
to rate recovery		Cost of Natural Gas		(2)		(4)		(1)		(5)
Total			$	(3)	$	(4)	$	(1)	$	(5)
(1)	Amount for 2010 is related to Otay Mesa VIE. Sempra Energy Consolidated also includes additional instruments.