OTHER FINANCIAL DATA (Tables)

3 Months Ended

Mar. 31, 2014

Other Financial Data (Tables) [Abstract]

Net Periodic Benefit Cost Table

NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended March 31,				Three months ended March 31,
	2014		2013		2014		2013
Service cost	$	26	$	27	$	6	$	7
Interest cost		41		37		12		11
Expected return on assets		(43)		(40)		(16)		(15)
Amortization of:
Prior service cost (credit)		2		1		(1)		(1)
Actuarial loss		5		15		―		2
Settlement		3		―		―		―
Regulatory adjustment		(24)		(32)		―		2
Total net periodic benefit cost	$	10	$	8	$	1	$	6

NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended March 31,				Three months ended March 31,
	2014		2013		2014		2013
Service cost	$	8	$	8	$	2	$	2
Interest cost		11		10		2		2
Expected return on assets		(14)		(13)		(3)		(2)
Amortization of:
Prior service cost		―		―		1		1
Actuarial loss		1		4		―		―
Regulatory adjustment		(5)		(8)		(2)		―
Total net periodic benefit cost	$	1	$	1	$	―	$	3

NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended March 31,				Three months ended March 31,
	2014		2013		2014		2013
Service cost	$	16	$	16	$	4	$	4
Interest cost		25		23		9		9
Expected return on assets		(26)		(25)		(13)		(12)
Amortization of:
Prior service cost (credit)		2		1		(2)		(2)
Actuarial loss		2		9		―		2
Regulatory adjustment		(19)		(24)		2		2
Total net periodic benefit cost	$	―	$	―	$	―	$	3

Contributions to Benefit Plans Table

	Sempra Energy
(Dollars in millions)	Consolidated		SDG&E		SoCalGas
Contributions through March 31, 2014:
Pension plans	$	15	$	1	$	2
Other postretirement benefit plans		1		―		―
Total expected contributions in 2014:
Pension plans	$	187	$	65	$	86
Other postretirement benefit plans		12		9		―

Earnings Per Share Computations Table

EARNINGS PER SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
		Three months ended March 31,
		2014		2013
Numerator:
Earnings/Income attributable to common shares		$	247	$	178
Denominator:
Weighted-average common shares
	outstanding for basic EPS		245,277		243,294
Dilutive effect of stock options, restricted
	stock awards and restricted stock units		4,392		4,240
Weighted-average common shares
	outstanding for diluted EPS		249,669		247,534
Earnings per share:
Basic		$	1.01	$	0.73
Diluted		$	0.99	$	0.72

Earnings Per Share Ranking Table

Four-Year Earnings Per Share Compound Annual Growth Rate		Number of Sempra Energy Common Shares Received for Each Performance-Based Restricted Stock Unit(1)(2)
8.0% or above		2.0
6.7%		1.5
4.4%		1.0
3.3% or below		―
(1)	Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate.
(2)	If performance falls between the tiers shown above, we calculate the payout using linear interpolation.

Total Shareholder Return Ranking Table

Four-Year Cumulative Total Shareholder Return Ranking versus S&P 500 Utilities Index(1)		Number of Sempra Energy Common Shares Received for Each Performance-Based Restricted Stock Unit(2)(3)
90th percentile or above (2014 awards only)		2.0
75th percentile or above (maximum for awards prior to 2014)		1.5
50th percentile		1.0
35th percentile or below		―
(1)	If Sempra Energy ranks at or above the 50th percentile compared to the S&P 500 Index, participants will receive a minimum of 1.0 share for each RSU.
(2)	Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate.
(3)	If performance falls between the tiers shown above, we calculate the payout using linear interpolation.

Capitalized Financing Costs Table

CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Three months ended March 31,
	2014		2013
Sempra Energy Consolidated:
AFUDC related to debt	$	6	$	6
AFUDC related to equity		25		15
Other capitalized financing costs		8		5
Total Sempra Energy Consolidated	$	39	$	26
SDG&E:
AFUDC related to debt	$	4	$	4
AFUDC related to equity		11		10
Total SDG&E	$	15	$	14
SoCalGas:
AFUDC related to debt	$	2	$	2
AFUDC related to equity		5		5
Total SoCalGas	$	7	$	7

Changes in Components of Accumulated Comprehensive Income Table

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		Three months ended March 31, 2014 and 2013
				Pension and Other
				Postretirement Benefits
		Foreign								Total
		Currency		Unamortized		Unamortized				Accumulated Other
		Translation		Net Actuarial		Prior Service		Financial		Comprehensive
		Adjustments		Gain (Loss)		Credit		Instruments		Income (Loss)
2014:
Balance as of December 31, 2013		$	(129)	$	(73)	$	―	$	(26)	$	(228)
Other comprehensive loss before
reclassifications			(43)		―		―		(14)		(57)
Amounts reclassified from accumulated other
comprehensive income			―		3		―		9		12
Net other comprehensive income (loss)			(43)		3		―		(5)		(45)
Balance as of March 31, 2014		$	(172)	$	(70)	$	―	$	(31)	$	(273)
2013:
Balance as of December 31, 2012		$	(240)	$	(102)	$	1	$	(35)	$	(376)
Other comprehensive income (loss) before
reclassifications			10		―		―		(16)		(6)
Amounts reclassified from accumulated other
comprehensive income			―		3		―		2		5
Net other comprehensive income (loss)			10		3		―		(14)		(1)
Balance as of March 31, 2013		$	(230)	$	(99)	$	1	$	(49)	$	(377)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.

Reclassifications out of AOCI Table

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about accumulated		Amounts reclassified
other comprehensive income (loss)		from accumulated other				Affected line item on Condensed
components		comprehensive income (loss)				Consolidated Statements of Operations
		Three months ended March 31,
		2014		2013
Sempra Energy Consolidated:
Financial instruments:
Interest rate and foreign exchange instruments		$	3	$	3	Interest Expense
Interest rate instruments			2		―	Gain on Sale of Equity Interest and Assets
Interest rate instruments			3		2	Equity Earnings, Before Income Tax
Commodity contracts not subject						Cost of Natural Gas, Electric Fuel
	to rate recovery		10		―	and Purchased Power
Total before income tax			18		5
			(6)		(1)	Income Tax Expense
Net of income tax			12		4
			(3)		(2)	Earnings Attributable to Noncontrolling Interests
		$	9	$	2
Pension and other postretirement benefits:
Net actuarial gain		$	5	$	5	(1)
			(2)		(2)	Income Tax Expense
Net of income tax		$	3	$	3
Total reclassifications for the period, net of tax		$	12	$	5
SDG&E:
Financial instruments:
Interest rate instruments		$	3	$	2	Interest Expense
			(3)		(2)	Earnings Attributable to Noncontrolling Interest
		$	―	$	―
(1)	Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above).

Shareholders' Equity and Noncontrolling Interests Table

SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS ― SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		Sempra
		Energy		Non-
		Shareholders’		controlling		Total
		Equity		Interests		Equity
Balance at December 31, 2013	$	11,008	$	842	$	11,850
Comprehensive income		202		17		219
Share-based compensation expense		10		―		10
Common stock dividends declared		(162)		―		(162)
Issuance of common stock		11		―		11
Repurchase of common stock		(37)		―		(37)
Tax benefit related to share-based compensation		8		―		8
Equity contributed by noncontrolling interest		―		1		1
Distributions to noncontrolling interests		―		(11)		(11)
Balance at March 31, 2014	$	11,040	$	849	$	11,889
Balance at December 31, 2012	$	10,282	$	401	$	10,683
Comprehensive income (loss)		179		(3)		176
Preferred dividends of subsidiaries		(2)		―		(2)
Share-based compensation expense		10		―		10
Common stock dividends declared		(153)		―		(153)
Issuance of common stock		15		―		15
Repurchase of common stock		(45)		―		(45)
Tax benefit related to share-based compensation		2		―		2
Sale of noncontrolling interests, net of offering costs		135		439		574
Equity contributed by noncontrolling interest		―		4		4
Distributions to noncontrolling interests		―		(3)		(3)
Balance at March 31, 2013	$	10,423	$	838	$	11,261

SHAREHOLDER’S EQUITY AND NONCONTROLLING INTEREST ― SDG&E
(Dollars in millions)
		SDG&E		Non-
		Shareholder’s		controlling		Total
		Equity		Interest		Equity
Balance at December 31, 2013	$	4,628	$	91	$	4,719
Comprehensive income		99		2		101
Distributions to noncontrolling interest		―		(6)		(6)
Balance at March 31, 2014	$	4,727	$	87	$	4,814
Balance at December 31, 2012	$	4,222	$	76	$	4,298
Comprehensive income (loss)		92		(8)		84
Preferred stock dividends declared		(1)		―		(1)
Equity contributed by noncontrolling interest		―		4		4
Balance at March 31, 2013	$	4,313	$	72	$	4,385

Amounts Due To and From Affiliates at SDG&E and SoCalGas Table

AMOUNTS DUE TO AND FROM AFFILIATES AT SDG&E AND SOCALGAS
(Dollars in millions)
		March 31,		December 31,
		2014		2013
SDG&E
Current:
Due from SoCalGas		$	11	$	―
Due from various affiliates			1		1
		$	12	$	1
Due to Sempra Energy		$	21	$	25
Due to various affiliates			14		14
		$	35	$	39
Income taxes due from Sempra Energy(1)		$	44	$	70
SoCalGas
Current:
Due from Sempra Energy		$	103	$	―
Due from various affiliates			1		21
		$	104	$	21
Due to SDG&E		$	11	$	―
Due to Sempra Energy			―		16
		$	11	$	16
Income taxes due from Sempra Energy(1)		$	35	$	18
(1)	SDG&E and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from the companies’ having always filed separate returns.

Revenues From Unconsolidated Affiliates at SDG&E and SoCalGas Table

REVENUES FROM UNCONSOLIDATED AFFILIATES AT SDG&E AND SOCALGAS
(Dollars in millions)
	Three months ended March 31,
	2014		2013
SDG&E	$	3	$	2
SoCalGas		18		15

Other Income and Expense Table

OTHER INCOME, NET
(Dollars in millions)
		Three months ended March 31,
		2014			2013
Sempra Energy Consolidated:
Allowance for equity funds used during construction		$	25	$	15
Investment gains(1)			8		10
Gains on interest rate and foreign exchange instruments, net			2		7
Regulatory interest, net(2)			1		1
Sundry, net			4		4
Total		$	40	$	37
SDG&E:
Allowance for equity funds used during construction		$	11	$	10
Regulatory interest, net(2)			1		1
Sundry, net			1		―
Total		$	13	$	11
SoCalGas:
Allowance for equity funds used during construction		$	5	$	5
Sundry, net			(1)		(1)
Total		$	4	$	4
(1)	Represents investment gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans.
(2)	Interest on regulatory balancing accounts.

Income Tax Expense and Effective Income Tax Rates Table

INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
		Three months ended March 31,
	2014					2013
			Effective				Effective
		Income Tax	Income			Income Tax	Income
		Expense	Tax Rate			Expense	Tax Rate
Sempra Energy Consolidated	$	127	33	%	$	178	51	%
SDG&E		83	45			51	39
SoCalGas		38	33			24	34

Variable Interest Entity Table

AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
	Three months ended March 31,
	2014		2013
Operating revenues
Electric	$	―	$	(1)
Natural gas		―		―
Total operating revenues		―		(1)
Operating expenses
Cost of electric fuel and purchased power		(18)		(17)
Operation and maintenance		5		17
Depreciation and amortization		7		7
Total operating expenses		(6)		7
Operating income (loss)		6		(8)
Interest expense		(4)		(3)
Income (loss) before income taxes/Net income (loss)		2		(11)
(Earnings) losses attributable to noncontrolling interest		(2)		11
Earnings	$	―	$	―

Ownership Interests Held By Others Table

OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
		Percent Ownership Held by Others			March 31, 2014		December 31, 2013
SDG&E:
Otay Mesa VIE		100	%	$	87	$	91
Sempra South American Utilities:
Chilquinta Energía subsidiaries(1)		24.4 – 43.4			26		27
Luz del Sur		20.2			222		222
Tecsur		9.8			4		3
Sempra Mexico:
IEnova		18.9			452		442
Sempra Natural Gas:
Bay Gas Storage, Ltd.		9.1			22		22
Liberty Gas Storage, LLC		25.0			15		14
Southern Gas Transmission Company		49.0			1		1
Total Sempra Energy				$	829	$	822
(1)	Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages amongst these subsidiaries.

Inventory Table

INVENTORY BALANCES
(Dollars in millions)
	Natural Gas				Liquefied Natural Gas				Materials and Supplies				Total
	March 31, 2014		December 31, 2013		March 31, 2014		December 31, 2013		March 31, 2014		December 31, 2013		March 31, 2014		December 31, 2013
SDG&E	$	4	$	3	$	―	$	―	$	72	$	83	$	76	$	86
SoCalGas		17		42		―		―		28		27		45		69
Sempra South American
Utilities		―		―		―		―		39		40		39		40
Sempra Mexico		―		―		4		3		9		9		13		12
Sempra Renewables		―		―		―		―		2		2		2		2
Sempra Natural Gas		16		68		5		5		1		5		22		78
Sempra Energy
Consolidated	$	37	$	113	$	9	$	8	$	151	$	166	$	197	$	287