OTHER FINANCIAL DATA (Tables)

3 Months Ended

Sep. 30, 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 September 30,
	2014		2013		2014		2013
Service cost	$	23	$	28	$	6	$	8
Interest cost		39		35		13		10
Expected return on assets		(42)		(39)		(15)		(15)
Amortization of:
Prior service cost (credit)		3		1		(2)		(1)
Actuarial loss		3		11		―		―
Settlements and special termination benefits		5		1		5		―
Regulatory adjustment		6		(14)		5		3
Total net periodic benefit cost	$	37	$	23	$	12	$	5
	Nine months ended September 30,
	2014		2013		2014		2013
Service cost	$	75	$	82	$	18	$	21
Interest cost		121		111		37		33
Expected return on assets		(128)		(121)		(47)		(44)
Amortization of:
Prior service cost (credit)		8		3		(4)		(3)
Actuarial loss		13		41		―		5
Settlements and special termination benefits		14		1		5		―
Regulatory adjustment		(18)		(65)		5		7
Total net periodic benefit cost	$	85	$	52	$	14	$	19

NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended September 30,
	2014		2013		2014		2013
Service cost	$	8	$	8	$	2	$	2
Interest cost		10		9		3		2
Expected return on assets		(13)		(13)		(2)		(3)
Amortization of:
Prior service cost		―		―		―		1
Actuarial loss		1		3		―		―
Settlements and special termination benefits		―		1		5		―
Regulatory adjustment		6		3		4		1
Total net periodic benefit cost	$	12	$	11	$	12	$	3
	Nine months ended September 30,
	2014		2013		2014		2013
Service cost	$	23	$	24	$	5	$	6
Interest cost		32		30		7		6
Expected return on assets		(41)		(39)		(8)		(7)
Amortization of:
Prior service cost		1		1		2		3
Actuarial loss		3		10		―		―
Settlements and special termination benefits		2		1		5		―
Regulatory adjustment		7		(3)		1		1
Total net periodic benefit cost	$	27	$	24	$	12	$	9

NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended September 30,
	2014		2013		2014		2013
Service cost	$	13	$	17	$	4	$	5
Interest cost		24		22		9		8
Expected return on assets		(26)		(24)		(12)		(12)
Amortization of:
Prior service cost (credit)		2		―		(2)		(2)
Actuarial loss		1		6		―		―
Settlement		4		―		―		―
Regulatory adjustment		―		(17)		1		2
Total net periodic benefit cost	$	18	$	4	$	―	$	1
	Nine months ended September 30,
	2014		2013		2014		2013
Service cost	$	45	$	50	$	12	$	13
Interest cost		75		68		28		26
Expected return on assets		(78)		(73)		(38)		(36)
Amortization of:
Prior service cost (credit)		6		1		(6)		(6)
Actuarial loss		5		23		―		4
Settlement		4		―		―		―
Regulatory adjustment		(25)		(62)		4		6
Total net periodic benefit cost	$	32	$	7	$	―	$	7

Contributions to Benefit Plans Table

	Sempra Energy
(Dollars in millions)	Consolidated		SDG&E		SoCalGas
Contributions through September 30, 2014:
Pension plans	$	95	$	28	$	39
Other postretirement benefit plans		14		12		―
Total expected contributions in 2014:
Pension plans	$	128	$	55	$	40
Other postretirement benefit plans		16		14		―

Earnings Per Share Computations Table

EARNINGS PER SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
		Three months ended September 30,				Nine months ended September 30,
		2014		2013		2014		2013
Numerator:
Earnings/Income attributable to common shares		$	348	$	296	$	864	$	719
Denominator:
Weighted-average common shares
	outstanding for basic EPS		246,137		244,140		245,703		243,682
Dilutive effect of stock options, restricted
	stock awards and restricted stock units		4,634		5,119		4,575		5,041
Weighted-average common shares
	outstanding for diluted EPS		250,771		249,259		250,278		248,723
Earnings per share:
Basic		$	1.41	$	1.21	$	3.52	$	2.95
Diluted			1.39		1.19		3.45		2.89

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 deemed 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 (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 deemed 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 September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Sempra Energy Consolidated:
AFUDC related to debt	$	5	$	6	$	15	$	17
AFUDC related to equity		28		14		77		44
Other capitalized financing costs		6		9		22		22
Total Sempra Energy Consolidated	$	39	$	29	$	114	$	83
SDG&E:
AFUDC related to debt	$	3	$	4	$	10	$	12
AFUDC related to equity		8		10		26		30
Total SDG&E	$	11	$	14	$	36	$	42
SoCalGas:
AFUDC related to debt	$	2	$	2	$	5	$	5
AFUDC related to equity		7		4		18		14
Total SoCalGas	$	9	$	6	$	23	$	19

Changes in Components of Accumulated Comprehensive Income Table

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
				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)
		Three months ended September 30, 2014 and 2013
2014:
Balance as of June 30, 2014		$	(170)	$	(65)	$	―	$	(38)	$	(273)
Other comprehensive loss before
reclassifications			(100)		―		―		(2)		(102)
Amounts reclassified from accumulated other
comprehensive income (loss)			―		5		―		(1)		4
Net other comprehensive income (loss)			(100)		5		―		(3)		(98)
Balance as of September 30, 2014		$	(270)	$	(60)	$	―	$	(41)	$	(371)
2013:
Balance as of June 30, 2013		$	(96)	$	(98)	$	1	$	(26)	$	(219)
Other comprehensive income (loss) before
reclassifications			5		―		―		(6)		(1)
Amounts reclassified from accumulated other
comprehensive income			―		3		―		2		5
Net other comprehensive income (loss)			5		3		―		(4)		4
Balance as of September 30, 2013		$	(91)	$	(95)	$	1	$	(30)	$	(215)
		Nine months ended September 30, 2014 and 2013
2014:
Balance as of December 31, 2013		$	(129)	$	(73)	$	―	$	(26)	$	(228)
Other comprehensive loss before
reclassifications			(141)		―		―		(28)		(169)
Amounts reclassified from accumulated other
comprehensive income			―		13		―		13		26
Net other comprehensive income (loss)			(141)		13		―		(15)		(143)
Balance as of September 30, 2014		$	(270)	$	(60)	$	―	$	(41)	$	(371)
2013:
Balance as of December 31, 2012		$	(240)	$	(102)	$	1	$	(35)	$	(376)
Other comprehensive income (loss) before
reclassifications			(121)		―		―		1		(120)
Amounts reclassified from accumulated other
comprehensive income			270	(2)	7		―		4		281
Net other comprehensive income			149		7		―		5		161
Balance as of September 30, 2013		$	(91)	$	(95)	$	1	$	(30)	$	(215)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.
(2)	Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4.

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SAN DIEGO GAS & ELECTRIC COMPANY
(Dollars in millions)
		Pension and Other
		Postretirement Benefits
						Total
		Unamortized		Unamortized		Accumulated Other
		Net Actuarial		Prior Service		Comprehensive
		Gain (Loss)		Credit		Income (Loss)
		Three months ended September 30, 2014 and 2013
2014:
Balance as of June 30, 2014		$	(9)	$	1	$	(8)
Amounts reclassified from accumulated other
comprehensive income			1		―		1
Net other comprehensive income			1		―		1
Balance as of September 30, 2014		$	(8)	$	1	$	(7)
2013:
Balance as of June 30, 2013		$	(11)	$	1	$	(10)
Amounts reclassified from accumulated other
comprehensive income			1		―		1
Net other comprehensive income			1		―		1
Balance as of September 30, 2013		$	(10)	$	1	$	(9)
		Nine months ended September 30, 2014 and 2013
2014:
Balance as of December 31, 2013		$	(10)	$	1	$	(9)
Amounts reclassified from accumulated other
comprehensive income			2		―		2
Net other comprehensive income			2		―		2
Balance as of September 30, 2014		$	(8)	$	1	$	(7)
2013:
Balance as of December 31, 2012		$	(12)	$	1	$	(11)
Amounts reclassified from accumulated other
comprehensive income			2		―		2
Net other comprehensive income			2		―		2
Balance as of September 30, 2013		$	(10)	$	1	$	(9)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SOUTHERN CALIFORNIA GAS COMPANY
(Dollars in millions)
		Pension and Other
		Postretirement Benefits
								Total
		Unamortized		Unamortized				Accumulated Other
		Net Actuarial		Prior Service		Financial		Comprehensive
		Gain (Loss)		Credit		Instruments		Income (Loss)
		Three months ended September 30, 2014 and 2013
2014:
Balance as of June 30, 2014		$	(5)	$	1	$	(14)	$	(18)
Amounts reclassified from accumulated other
comprehensive income			2		―		―		2
Net other comprehensive income			2		―		―		2
Balance as of September 30, 2014		$	(3)	$	1	$	(14)	$	(16)
2013:
Balance as of June 30 and September 30, 2013		$	(4)	$	1	$	(14)	$	(17)
		Nine months ended September 30, 2014 and 2013
2014:
Balance as of December 31, 2013		$	(5)	$	1	$	(14)	$	(18)
Amounts reclassified from accumulated other
comprehensive income			2		―		―		2
Net other comprehensive income			2		―		―		2
Balance as of September 30, 2014		$	(3)	$	1	$	(14)	$	(16)
2013:
Balance as of December 31, 2012		$	(4)	$	1	$	(15)	$	(18)
Amounts reclassified from accumulated other
comprehensive income			―		―		1		1
Net other comprehensive income			―		―		1		1
Balance as of September 30, 2013		$	(4)	$	1	$	(14)	$	(17)
(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 September 30,
		2014		2013
Sempra Energy Consolidated:
Financial instruments:
Interest rate and foreign exchange instruments		$	8	$	3	Interest Expense
Interest rate instruments			(5)		―	Gain on Sale of Equity Interests and Assets
Interest rate instruments			2		3	Equity Earnings, Before Income Tax
Commodity contracts not subject						Revenues: Energy-Related
	to rate recovery		(2)		―	Businesses
Total before income tax			3		6
			(1)		(2)	Income Tax Expense
Net of income tax			2		4
			(3)		(2)	Earnings Attributable to Noncontrolling Interests
		$	(1)	$	2
Pension and other postretirement benefits:
Amortization of actuarial loss		$	8	$	5	(1)
			(3)		(2)	Income Tax Expense
Net of income tax		$	5	$	3
Total reclassifications for the period, net of tax		$	4	$	5
SDG&E:
Financial instruments:
Interest rate instruments		$	3	$	2	Interest Expense
			(3)		(2)	Earnings Attributable to Noncontrolling Interest
		$	―	$	―
Pension and other postretirement benefits:
Amortization of actuarial loss		$	1	$	2	(1)
			―		(1)	Income Tax Expense
Net of income tax		$	1	$	1
Total reclassifications for the period, net of tax		$	1	$	1
SoCalGas:
Pension and other postretirement benefits:
Amortization of actuarial loss		$	4	$	―	(1)
			(2)		―	Income Tax Expense
Net of income tax		$	2	$	―
Total reclassifications for the period, net of tax		$	2	$	―
(1)	Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above).

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about accumulated		Amount reclassified
other comprehensive income (loss)		from accumulated other				Affected line item on Condensed
components		comprehensive income (loss)				Consolidated Statements of Operations
		Nine months ended September 30,
		2014		2013
Sempra Energy Consolidated:
Foreign currency translation adjustments		$	―	$	270	Equity Earnings, Net of Income Tax(1)
Financial instruments:
Interest rate and foreign exchange instruments		$	17	$	9	Interest Expense
Interest rate instruments			(3)		―	Gain on Sale of Equity Interests and Assets
Interest rate instruments			7		7	Equity Earnings, Before Income Tax
Commodity contracts not subject to						Revenues: Energy-Related
	rate recovery		8		(5)	Businesses
Total before income tax			29		11
			(8)		(1)	Income Tax Expense
Net of income tax			21		10
			(8)		(6)	Earnings Attributable to Noncontrolling Interests
		$	13	$	4
Pension and other postretirement benefits:
Amortization of actuarial loss		$	21	$	12	(2)
			(8)		(5)	Income Tax Expense
Net of income tax		$	13	$	7
Total reclassifications for the period, net of tax		$	26	$	281
SDG&E:
Financial instruments:
Interest rate instruments		$	8	$	6	Interest Expense
			(8)		(6)	Earnings Attributable to Noncontrolling Interest
		$	―	$	―
Pension and other postretirement benefits:
Amortization of actuarial loss		$	3	$	3	(2)
			(1)		(1)	Income Tax Expense
Net of income tax		$	2	$	2
Total reclassifications for the period, net of tax		$	2	$	2
SoCalGas:
Financial instruments:
Interest rate instruments		$	―	$	1	Interest Expense
			―		―	Income Tax Expense
Net of income tax		$	―	$	1
Pension and other postretirement benefits:
Amortization of actuarial loss		$	4	$	―	(2)
			(2)		―	Income Tax Expense
Net of income tax		$	2	$	―
Total reclassifications for the period, net of tax		$	2	$	1
(1)	Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4.
(2)	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		722		66		788
Preferred dividends of subsidiary		(1)		―		(1)
Share-based compensation expense		35		―		35
Common stock dividends declared		(486)		―		(486)
Issuance of common stock		71		―		71
Repurchase of common stock		(38)		―		(38)
Tax benefit related to share-based compensation		22		―		22
Equity contributed by noncontrolling interest		―		1		1
Distributions to noncontrolling interests		―		(85)		(85)
Balance at September 30, 2014	$	11,333	$	824	$	12,157
Balance at December 31, 2012	$	10,282	$	401	$	10,683
Comprehensive income		888		33		921
Preferred dividends of subsidiaries		(5)		―		(5)
Share-based compensation expense		30		―		30
Common stock dividends declared		(460)		―		(460)
Issuance of common stock		57		―		57
Repurchase of common stock		(45)		―		(45)
Tax benefit related to share-based compensation		30		―		30
Sale of noncontrolling interests, net of offering costs		135		439		574
Distributions to noncontrolling interests		―		(28)		(28)
Call premium on preferred stock of subsidiary		(3)		―		(3)
Balance at September 30, 2013	$	10,909	$	845	$	11,754

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		381		23		404
Distributions to noncontrolling interest		―		(37)		(37)
Balance at September 30, 2014	$	5,009	$	77	$	5,086
Balance at December 31, 2012	$	4,222	$	76	$	4,298
Comprehensive income		294		15		309
Preferred stock dividends declared		(4)		―		(4)
Distributions to noncontrolling interest		―		(12)		(12)
Call premium on preferred stock		(3)		―		(3)
Balance at September 30, 2013	$	4,509	$	79	$	4,588

SHAREHOLDERS' EQUITY ― SOCALGAS
(Dollars in millions)
		SoCalGas
		Shareholders'
		Equity
Balance at December 31, 2013	$	2,549
Comprehensive income		259
Preferred stock dividends declared		(1)
Balance at September 30, 2014	$	2,807
Balance at December 31, 2012	$	2,235
Comprehensive income		268
Preferred stock dividends declared		(1)
Common stock dividends declared		(50)
Balance at September 30, 2013	$	2,452

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)
		September 30,		December 31,
		2014		2013
SDG&E:
Current:
Due from various affiliates		$	1	$	1
Due to Sempra Energy		$	27	$	25
Due to SoCalGas			9		―
Due to various affiliates			―		14
		$	36	$	39
Income taxes due from Sempra Energy(1)		$	27	$	70
SoCalGas:
Current:
Due from Sempra Energy(2)		$	265	$	―
Due from SDG&E			9		―
Due from various affiliates			―		21
		$	274	$	21
Due to Sempra Energy		$	―	$	16
Income taxes due from Sempra Energy(1)		$	21	$	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.
(2)	Net receivable includes a loan to Sempra Energy of $281 million at September 30, 2014 at an interest rate of 0.08 percent.

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 September 30,				Nine months ended September 30,
	2014		2013		2014			2013
SDG&E	$	2	$	3	$	8	$	8
SoCalGas		17		17		51		48

Other Income and Expense Table

OTHER INCOME, NET
(Dollars in millions)
		Three months ended				Nine months ended
		September 30,				September 30,
			2014		2013		2014		2013
Sempra Energy Consolidated:
Allowance for equity funds used during construction		$	28	$	14	$	77	$	44
Investment (losses) gains(1)			(3)		(6)		20		16
(Losses) gains on interest rate and foreign exchange instruments, net			(6)		4		3		17
Regulatory interest, net(2)			2		1		5		3
Sundry, net			8		3		13		(1)
Total		$	29	$	16	$	118	$	79
SDG&E:
Allowance for equity funds used during construction		$	8	$	10	$	26	$	30
Regulatory interest, net(2)			2		1		5		3
Sundry, net			(1)		(1)		(2)		(3)
Total		$	9	$	10	$	29	$	30
SoCalGas:
Allowance for equity funds used during construction		$	7	$	4	$	18	$	14
Sundry, net			(1)		(2)		(5)		(5)
Total		$	6	$	2	$	13	$	9
(1)	Represents investment (losses) 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)
			Effective				Effective
		Income Tax	Income			Income Tax	Income
		Expense	Tax Rate			Expense	Tax Rate
		Three months ended September 30,
		2014				2013
Sempra Energy Consolidated	$	71	16	%	$	117	27	%
SDG&E		65	28			84	38
SoCalGas		44	31			38	27
		Nine months ended September 30,
		2014				2013
Sempra Energy Consolidated	$	291	24	%	$	327	30	%
SDG&E		217	35			147	33
SoCalGas		110	30			107	29

Variable Interest Entity Table

AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Operating revenues
Electric	$	―	$	(4)	$	―	$	―
Natural gas		―		―		―		―
Total operating revenues		―		(4)		―		―
Operating expenses
Cost of electric fuel and purchased power		(27)		(27)		(67)		(65)
Operation and maintenance		3		7		13		33
Depreciation and amortization		7		7		21		20
Total operating expenses		(17)		(13)		(33)		(12)
Operating income		17		9		33		12
Interest expense		(5)		(4)		(13)		(11)
Income before income taxes/Net income		12		5		20		1
Earnings attributable to noncontrolling interest		(12)		(5)		(20)		(1)
Earnings	$	―	$	―	$	―	$	―

Ownership Interests Held By Others Table

OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
		Percent Ownership Held by Others			September 30, 2014		December 31, 2013
SDG&E:
Otay Mesa VIE		100	%	$	77	$	91
Sempra South American Utilities:
Chilquinta Energía subsidiaries(1)		23.6 – 43.4			23		27
Luz del Sur		20.2			219		222
Tecsur		9.8			3		3
Sempra Mexico:
IEnova		18.9			444		442
Sempra Natural Gas:
Bay Gas Storage, Ltd.		9.1			23		22
Liberty Gas Storage, LLC		25.0			14		14
Southern Gas Transmission Company		49.0			1		1
Total Sempra Energy				$	804	$	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
	September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
SDG&E	$	6	$	3	$	―	$	―	$	64	$	83	$	70	$	86
SoCalGas		192		42		―		―		29		27		221		69
Sempra South American
Utilities		―		―		―		―		36		40		36		40
Sempra Mexico		―		―		6		3		9		9		15		12
Sempra Renewables		―		―		―		―		3		2		3		2
Sempra Natural Gas		121		68		5		5		1		5		127		78
Sempra Energy
Consolidated	$	319	$	113	$	11	$	8	$	142	$	166	$	472	$	287

Asset Retirement Obligations Table

CHANGES IN ASSET RETIREMENT OBLIGATIONS
(Dollars in millions)
		Sempra Energy
		Consolidated				SDG&E				SoCalGas
		2014		2013		2014		2013		2014		2013
Balance at January 1(1)		$	2,152	$	2,056	$	913	$	741	$	1,199	$	1,253
Accretion expense			73		74		33		35		38		37
Liabilities incurred			3		4		―		―		―		―
Reclassification(2)			(6)		―		―		―		―		―
Payments			(15)		(1)		(15)		―		―		―
Revisions, GRC-related(3)			―		(135)		―		(30)		―		(105)
Revisions, other(4)(5)			(34)		181		(59)		207		25		―
Balance at September 30(1)		$	2,173	$	2,179	$	872	$	953	$	1,262	$	1,185
(1)	The current portions of the obligations are included in Other Current Liabilities on the Condensed Consolidated Balance Sheets.
(2)	Reclassification to liability held for sale - asset retirement obligation which is included in Other Current Liabilities on the Condensed Consolidated Balance Sheets, as we discuss in "Sempra Natural Gas – Asset Held for Sale, Power Plant" in Note 3 above.
(3)	The decreases in asset retirement obligations in 2013 at SDG&E and SoCalGas were due to revised estimates related to the 2012 General Rate Case (GRC) that received final approval in May 2013. At SDG&E, these revisions included increases in asset service lives ranging from 2 percent to 7 percent, and lower estimated cost of removal. At SoCalGas, the decrease included increases in asset service lives ranging from 4 percent to 6 percent, partially offset by a higher estimated cost of removal.
(4)	The decrease in asset retirement obligations in 2014 at SDG&E is due to revised estimates in an updated decommissioning cost study for the San Onofre Nuclear Generating Station, which we discuss in Note 9. The increase in asset retirement obligations in 2014 at SoCalGas is related to a change in estimates.
(5)	The increase in asset retirement obligations in 2013 at SDG&E is due to revised estimates recorded in the third quarter of 2013 related to the early decommissioning of SONGS Units 2 and 3 (see Note 9).