UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 |
(Mark One) | ||||||||||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||||
For the quarterly period ended | ||||||||||||
or | ||||||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||||
For the transition period from | to |
Commission File No. | Exact Name of Registrants as Specified in their Charters, Address and Telephone Number | State of Incorporation | I.R.S. Employer Identification Nos. | Former name, former address and former fiscal year, if changed since last report | ||||||||
No change | ||||||||||||
No change | ||||||||||||
No change | ||||||||||||
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: | ||||||||||||||
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
SEMPRA ENERGY: | ||||||||||||||
SAN DIEGO GAS & ELECTRIC COMPANY: | ||||||||||||||
None | ||||||||||||||
SOUTHERN CALIFORNIA GAS COMPANY: | ||||||||||||||
None |
Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. | ||||||||||
☒ | No | ☐ |
Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). | ||||||||||
☒ | No | ☐ | ||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. |
Sempra Energy: | |||||||||
☒ | ☐ | Accelerated Filer | ☐ | Non-accelerated Filer | Smaller Reporting Company | Emerging Growth Company | |||
San Diego Gas & Electric Company: | |||||||||
☐ | Large Accelerated Filer | ☐ | Accelerated Filer | ☒ | Smaller Reporting Company | Emerging Growth Company | |||
Southern California Gas Company: | |||||||||
☐ | Large Accelerated Filer | ☐ | Accelerated Filer | ☒ | Smaller Reporting Company | Emerging Growth Company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||||||||
Sempra Energy | Yes | ☐ | No | ☐ | ||||||
San Diego Gas & Electric Company | Yes | ☐ | No | ☐ | ||||||
Southern California Gas Company | Yes | ☐ | No | ☐ | ||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | ||||||||||
Sempra Energy | Yes | No | ☒ | |||||||
San Diego Gas & Electric Company | Yes | No | ☒ | |||||||
Southern California Gas Company | Yes | No | ☒ | |||||||
Indicate the number of shares outstanding of each of the issuers’ classes of common stock, as of the latest practicable date. | ||||||||||
Common stock outstanding on July 29, 2019: |
Sempra Energy | shares | |
San Diego Gas & Electric Company | Wholly owned by Enova Corporation, which is wholly owned by Sempra Energy | |
Southern California Gas Company | Wholly owned by Pacific Enterprises, which is wholly owned by Sempra Energy |
SEMPRA ENERGY FORM 10-Q SAN DIEGO GAS & ELECTRIC COMPANY FORM 10-Q SOUTHERN CALIFORNIA GAS COMPANY FORM 10-Q TABLE OF CONTENTS | ||
Page | ||
PART I – FINANCIAL INFORMATION | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 6. | ||
GLOSSARY | |
2016 GRC FD | final decision in the California Utilities’ 2016 General Rate Case |
AB | Assembly Bill |
AEP | American Electric Power Company, Inc. |
AFUDC | allowance for funds used during construction |
Annual Report | Annual Report on Form 10-K for the year ended December 31, 2018 |
AOCI | accumulated other comprehensive income (loss) |
ARO | asset retirement obligation |
ASC | Accounting Standards Codification |
Asset Exchange Agreement | agreement and plan of merger among Oncor, SDTS and SU |
ASU | Accounting Standards Update |
Bay Gas | Bay Gas Storage Company, Ltd. |
Bcf | billion cubic feet |
Blade | Blade Energy Partners |
bps | basis points |
Cal PA | California Public Advocates Office |
California Utilities | San Diego Gas & Electric Company and Southern California Gas Company, collectively |
Cameron LNG JV | Cameron LNG Holdings, LLC |
CARB | California Air Resources Board |
CEC | California Energy Commission |
CFE | Comisión Federal de Electricidad (Federal Electricity Commission in Mexico) |
Chilquinta Energía | Chilquinta Energía S.A. and its subsidiaries |
CPUC | California Public Utilities Commission |
CRR | congestion revenue right |
DOE | U.S. Department of Energy |
DOGGR | California Department of Conservation’s Division of Oil, Gas, and Geothermal Resources |
DPH | Los Angeles County Department of Public Health |
DWR | California Department of Water Resources |
ECA | Energía Costa Azul |
Ecogas | Ecogas México, S. de R.L. de C.V. |
Edison | Southern California Edison Company, a subsidiary of Edison International |
EFH | Energy Future Holdings Corp. (renamed Sempra Texas Holdings Corp.) |
EFIH | Energy Future Intermediate Holding Company LLC (renamed Sempra Texas Intermediate Holding Company LLC) |
EPA | U.S. Environmental Protection Agency |
EPC | engineering, procurement and construction |
EPS | earnings per common share |
ETR | effective income tax rate |
FASB | Financial Accounting Standards Board |
FERC | Federal Energy Regulatory Commission |
Fitch | Fitch Ratings |
FTA | Free Trade Agreement |
GCIM | Gas Cost Incentive Mechanism |
GHG | greenhouse gas |
GRC | General Rate Case |
HLBV | hypothetical liquidation at book value |
HMRC | United Kingdom’s Revenue and Customs Department |
IEnova | Infraestructura Energética Nova, S.A.B. de C.V. |
IMG | Infraestructura Marina del Golfo |
InfraREIT | InfraREIT, Inc. (merged into a wholly owned subsidiary of Oncor) |
InfraREIT Merger Agreement | agreement and plan of merger among Oncor, 1912 Merger Sub LLC (a wholly owned subsidiary of Oncor), Oncor T&D Partners, LP (a wholly owned indirect subsidiary of Oncor), InfraREIT and InfraREIT Partners |
InfraREIT Partners | InfraREIT Partners, LP (renamed Oncor NTU Partnership LP) |
IOU | investor-owned utility |
IRS | Internal Revenue Service |
ISFSI | independent spent fuel storage installation |
ISO | Independent System Operator |
JP Morgan | J.P. Morgan Chase & Co. |
JV | joint venture |
LA Superior Court | Los Angeles County Superior Court |
GLOSSARY (CONTINUED) | |
Leak | the leak at the SoCalGas Aliso Canyon natural gas storage facility injection-and-withdrawal well, SS25, discovered by SoCalGas on October 23, 2015 |
LNG | liquefied natural gas |
LPG | liquid petroleum gas |
Luz del Sur | Luz del Sur S.A.A. and its subsidiaries |
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Merger | the merger of EFH with an indirect subsidiary of Sempra Energy, with EFH continuing as the surviving company and as an indirect, wholly owned subsidiary of Sempra Energy |
Merger Agreement | Agreement and Plan of Merger dated August 21, 2017, as supplemented by a Waiver Agreement dated October 3, 2017 and an amendment dated February 15, 2018, between Sempra Energy, EFH, EFIH and an indirect subsidiary of Sempra Energy |
Merger Consideration | Pursuant to the Merger Agreement, Sempra Energy paid consideration of $9.45 billion in cash |
Mississippi Hub | Mississippi Hub, LLC |
MMBtu | million British thermal units (of natural gas) |
Moody’s | Moody’s Investors Service |
MOU | Memorandum of Understanding |
Mtpa | million tonnes per annum |
MW | megawatt |
MWh | megawatt hour |
NCI | noncontrolling interest(s) |
NDT | nuclear decommissioning trusts |
NEIL | Nuclear Electric Insurance Limited |
NOL | net operating loss |
NRC | Nuclear Regulatory Commission |
OCI | other comprehensive income (loss) |
OII | Order Instituting Investigation |
OIR | Order Instituting a Rulemaking |
O&M | operation and maintenance expense |
OMEC | Otay Mesa Energy Center |
OMEC LLC | Otay Mesa Energy Center LLC |
OMI | Oncor Management Investment LLC |
Oncor | Oncor Electric Delivery Company LLC |
Oncor Holdings | Oncor Electric Delivery Holdings Company LLC |
Otay Mesa VIE | OMEC LLC VIE |
PG&E | Pacific Gas & Electric Company |
PHMSA | Pipeline and Hazardous Materials Safety Administration |
PPA | power purchase agreement |
PP&E | property, plant and equipment |
PSEP | Pipeline Safety Enhancement Plan |
PUCT | Public Utility Commission of Texas |
RBS | The Royal Bank of Scotland plc |
RBS SEE | RBS Sempra Energy Europe |
RBS Sempra Commodities | RBS Sempra Commodities LLP |
ROE | return on equity |
ROU | right-of-use |
RSU | restricted stock unit |
SB | California Senate Bill |
SDG&E | San Diego Gas & Electric Company |
SDTS | Sharyland Distribution & Transmission Services, L.L.C. (a subsidiary of InfraREIT Partners, renamed Oncor Electric Delivery Company NTU LLC) |
SEC | U.S. Securities and Exchange Commission |
Securities Purchase Agreement | Securities Purchase Agreement among SU, SU Investment Partners, L.P., Sempra Texas Utilities Holdings I, LLC (a wholly owned subsidiary of Sempra Energy) and Sempra Energy |
SEDATU | Secretaría de Desarrollo Agrario, Territorial y Urbano (Mexican agency in charge of agriculture, land and urban development) |
Sempra Global | holding company for most of Sempra Energy’s subsidiaries not subject to California or Texas utility regulation |
series A preferred stock | 6% mandatory convertible preferred stock, series A |
series B preferred stock | 6.75% mandatory convertible preferred stock, series B |
Sharyland Holdings | Sharyland Holdings, L.P. |
SMIF | California’s Surplus Money Investment Fund |
SoCalGas | Southern California Gas Company |
GLOSSARY (CONTINUED) | |
SONGS | San Onofre Nuclear Generating Station |
S&P | Standard & Poor’s |
SU | Sharyland Utilities, L.L.C. (formerly known as Sharyland Utilities, L.P.) |
TAG | TAG Pipelines Norte, S. de R.L. de C.V. |
TC Energy | TC Energy Corporation (formerly known as TransCanada Corporation) |
TCJA | Tax Cuts and Jobs Act of 2017 |
TdM | Termoeléctrica de Mexicali |
Tecnored | Tecnored S.A. |
Tecsur | Tecsur S.A. |
TO5 | Electric Transmission Owner Formula Rate, new application |
TTI | Texas Transmission Investment LLC |
U.S. GAAP | accounting principles generally accepted in the United States of America |
VAT | value-added tax |
VIE | variable interest entity |
▪ | the greater degree and prevalence of wildfires in California in recent years and the risk that we may be found liable for damages regardless of fault, such as where inverse condemnation applies, and risk that we may not be able to recover any such costs in rates from customers in California or otherwise, including due to insufficient amounts in the wildfire fund; |
▪ | actions and the timing of actions, including decisions, investigations, new regulations and issuances of permits and other authorizations and renewal of franchises by the CFE, CPUC, DOE, DOGGR, DPH, EPA, FERC, PHMSA, PUCT, states, cities and counties, and other regulatory and governmental bodies in the U.S. and other countries in which we operate; |
▪ | the success of business development efforts, construction projects, and major acquisitions, divestitures and internal structural changes, including risks in (i) obtaining or maintaining authorizations; (ii) completing construction projects on schedule and budget; (iii) obtaining the consent of partners; (iv) counterparties’ ability to fulfill contractual commitments; (v) winning competitively bid infrastructure projects; (vi) the ability to complete contemplated acquisitions and/or divestitures and the disruptions caused by such efforts; and (vii) the ability to realize anticipated benefits from any of these efforts once completed; |
▪ | the resolution of civil and criminal litigation, regulatory investigations and proceedings, and arbitrations; |
▪ | actions by credit rating agencies to downgrade our credit ratings or those of our subsidiaries or to place those ratings on negative outlook and our ability to borrow at favorable interest rates; |
▪ | deviations from regulatory precedent or practice that result in a reallocation of benefits or burdens among shareholders and ratepayers; denial of approvals of proposed settlements; delays in, or denial of, regulatory agency authorizations to recover costs in rates from customers or regulatory agency approval for projects required to enhance safety and reliability; and moves to reduce or eliminate reliance on natural gas; |
▪ | the availability of electric power and natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, limitations on the withdrawal or injection of natural gas from or into storage facilities, and equipment failures; |
▪ | expropriation of assets, the failure to honor the terms of contracts by foreign governments and state-owned entities such as the CFE, and other property disputes; |
▪ | risks posed by actions of third parties who control the operations of our investments; |
▪ | weather conditions, natural disasters, accidents, equipment failures, computer system outages, explosions, terrorist attacks and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to third-party liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; |
▪ | cybersecurity threats to the energy grid, storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; |
▪ | actions of activist shareholders, which could impact the market price of our securities and disrupt our operations as a result of, among other things, requiring significant time by management and our board of directors; |
▪ | changes in capital markets, energy markets and economic conditions, including the availability of credit; and volatility in currency exchange, interest and inflation rates and commodity prices and our ability to effectively hedge the risk of such volatility; |
▪ | the impact of federal or state tax reform and our ability to mitigate adverse impacts; |
▪ | changes in foreign and domestic trade policies and laws, including border tariffs and revisions to or replacement of international trade agreements, such as the North American Free Trade Agreement, that may increase our costs or impair our ability to resolve trade disputes; |
▪ | the impact at SDG&E on competitive customer rates and reliability of electric transmission and distribution systems due to the growth in distributed and local power generation and from possible departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation or other forms of distributed and local power generation and the potential risk of nonrecovery for stranded assets and contractual obligations; |
▪ | Oncor’s ability to eliminate or reduce its quarterly dividends due to regulatory capital requirements and other regulatory and governance commitments, including the determination by a majority of Oncor’s independent directors or a minority member director to retain such amounts to meet future requirements; and |
▪ | other uncertainties, some of which may be difficult to predict and are beyond our control. |
SEMPRA ENERGY | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Dollars in millions, except per share amounts; shares in thousands) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(unaudited) | |||||||||||||||
REVENUES | |||||||||||||||
Utilities | $ | $ | $ | $ | |||||||||||
Energy-related businesses | |||||||||||||||
Total revenues | |||||||||||||||
EXPENSES AND OTHER INCOME | |||||||||||||||
Utilities: | |||||||||||||||
Cost of natural gas | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Cost of electric fuel and purchased power | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Energy-related businesses cost of sales | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Operation and maintenance | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Franchise fees and other taxes | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Impairment losses | ( | ) | ( | ) | |||||||||||
Gain on sale of assets | |||||||||||||||
Other income (expense), net | ( | ) | |||||||||||||
Interest income | |||||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income (loss) from continuing operations before income taxes and equity earnings (losses) | ( | ) | ( | ) | |||||||||||
Income tax (expense) benefit | ( | ) | ( | ) | |||||||||||
Equity earnings (losses) | ( | ) | ( | ) | |||||||||||
Income (loss) from continuing operations, net of income tax | ( | ) | ( | ) | |||||||||||
Income from discontinued operations, net of income tax | |||||||||||||||
Net income (loss) | ( | ) | ( | ) | |||||||||||
(Earnings) losses attributable to noncontrolling interests | ( | ) | ( | ) | ( | ) | |||||||||
Mandatory convertible preferred stock dividends | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Preferred dividends of subsidiary | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Earnings (losses) attributable to common shares | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Basic earnings (losses) per common share: | |||||||||||||||
Earnings (losses) from continuing operations attributable to common shares | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Earnings from discontinued operations attributable to common shares | $ | $ | $ | $ | |||||||||||
Earnings (losses) attributable to common shares | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Weighted-average common shares outstanding | |||||||||||||||
Diluted earnings (losses) per common share: | |||||||||||||||
Earnings (losses) from continuing operations attributable to common shares | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Earnings from discontinued operations attributable to common shares | $ | $ | $ | $ | |||||||||||
Earnings (losses) attributable to common shares | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Weighted-average common shares outstanding |
SEMPRA ENERGY | |||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Sempra Energy shareholders’ equity | |||||||||||||||||||
Pretax amount | Income tax (expense) benefit | Net-of-tax amount | Noncontrolling interests (after-tax) | Total | |||||||||||||||
(unaudited) | |||||||||||||||||||
Three months ended June 30, 2019 and 2018 | |||||||||||||||||||
2019: | |||||||||||||||||||
Net income | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Foreign currency translation adjustments | |||||||||||||||||||
Financial instruments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Pension and other postretirement benefits | ( | ) | |||||||||||||||||
Total other comprehensive loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Comprehensive income | ( | ) | |||||||||||||||||
Preferred dividends of subsidiary | ( | ) | ( | ) | ( | ) | |||||||||||||
Comprehensive income, after preferred | |||||||||||||||||||
dividends of subsidiary | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
2018: | |||||||||||||||||||
Net (loss) income | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Foreign currency translation adjustments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Financial instruments | ( | ) | |||||||||||||||||
Pension and other postretirement benefits | |||||||||||||||||||
Total other comprehensive loss | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||
Comprehensive (loss) income | ( | ) | ( | ) | ( | ) | |||||||||||||
Preferred dividends of subsidiary | ( | ) | ( | ) | ( | ) | |||||||||||||
Comprehensive (loss) income, after preferred | |||||||||||||||||||
dividends of subsidiary | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
Six months ended June 30, 2019 and 2018 | |||||||||||||||||||
2019: | |||||||||||||||||||
Net income | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Foreign currency translation adjustments | |||||||||||||||||||
Financial instruments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Pension and other postretirement benefits | ( | ) | |||||||||||||||||
Total other comprehensive loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Comprehensive income | ( | ) | |||||||||||||||||
Preferred dividends of subsidiary | ( | ) | ( | ) | ( | ) | |||||||||||||
Comprehensive income, after preferred | |||||||||||||||||||
dividends of subsidiary | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
2018: | |||||||||||||||||||
Net loss | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Other comprehensive income (loss): | |||||||||||||||||||
Foreign currency translation adjustments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Financial instruments | ( | ) | |||||||||||||||||
Pension and other postretirement benefits | ( | ) | |||||||||||||||||
Total other comprehensive income | ( | ) | |||||||||||||||||
Comprehensive (loss) income | ( | ) | ( | ) | ( | ) | |||||||||||||
Preferred dividends of subsidiary | ( | ) | ( | ) | ( | ) | |||||||||||||
Comprehensive (loss) income, after preferred | |||||||||||||||||||
dividends of subsidiary | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
SEMPRA ENERGY | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars in millions) | |||||||
June 30, 2019 | December 31, 2018(1) | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Restricted cash | |||||||
Accounts receivable – trade, net | |||||||
Accounts receivable – other, net | |||||||
Due from unconsolidated affiliates | |||||||
Income taxes receivable | |||||||
Inventories | |||||||
Regulatory assets | |||||||
Greenhouse gas allowances | |||||||
Assets held for sale | |||||||
Assets held for sale in discontinued operations | |||||||
Other | |||||||
Total current assets | |||||||
Other assets: | |||||||
Restricted cash | |||||||
Due from unconsolidated affiliates | |||||||
Regulatory assets | |||||||
Nuclear decommissioning trusts | |||||||
Investment in Oncor Holdings | |||||||
Other investments | |||||||
Goodwill | |||||||
Other intangible assets | |||||||
Dedicated assets in support of certain benefit plans | |||||||
Insurance receivable for Aliso Canyon costs | |||||||
Deferred income taxes | |||||||
Greenhouse gas allowances | |||||||
Right-of-use assets – operating leases | — | ||||||
Assets held for sale in discontinued operations | |||||||
Sundry | |||||||
Total other assets | |||||||
Property, plant and equipment: | |||||||
Property, plant and equipment | |||||||
Less accumulated depreciation and amortization | ( | ) | ( | ) | |||
Property, plant and equipment, net ($280 and $295 at June 30, 2019 and December 31, 2018, respectively, related to Otay Mesa VIE) | |||||||
Total assets | $ | $ |
(1) | Derived from audited financial statements. |
SEMPRA ENERGY | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | |||||||
(Dollars in millions) | |||||||
June 30, 2019 | December 31, 2018(1) | ||||||
(unaudited) | |||||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Short-term debt | $ | $ | |||||
Accounts payable – trade | |||||||
Accounts payable – other | |||||||
Due to unconsolidated affiliates | |||||||
Dividends and interest payable | |||||||
Accrued compensation and benefits | |||||||
Regulatory liabilities | |||||||
Current portion of long-term debt and finance leases ($37 and $28 at June 30, 2019 and December 31, 2018, respectively, related to Otay Mesa VIE) | |||||||
Reserve for Aliso Canyon costs | |||||||
Greenhouse gas obligations | |||||||
Liabilities held for sale in discontinued operations | |||||||
Other | |||||||
Total current liabilities | |||||||
Long-term debt and finance leases ($172 and $190 at June 30, 2019 and December 31, 2018, respectively, related to Otay Mesa VIE) | |||||||
Deferred credits and other liabilities: | |||||||
Due to unconsolidated affiliates | |||||||
Pension and other postretirement benefit plan obligations, net of plan assets | |||||||
Deferred income taxes | |||||||
Deferred investment tax credits | |||||||
Regulatory liabilities | |||||||
Asset retirement obligations | |||||||
Greenhouse gas obligations | |||||||
Liabilities held for sale in discontinued operations | |||||||
Deferred credits and other | |||||||
Total deferred credits and other liabilities | |||||||
Commitments and contingencies (Note 11) | |||||||
Equity: | |||||||
Preferred stock (50 million shares authorized): | |||||||
6% mandatory convertible preferred stock, series A (17.25 million shares issued and outstanding) | |||||||
6.75% mandatory convertible preferred stock, series B (5.75 million shares issued and outstanding) | |||||||
Common stock (750 million shares authorized; 274 million shares outstanding; no par value) | |||||||
Retained earnings | |||||||
Accumulated other comprehensive income (loss) | ( | ) | ( | ) | |||
Total Sempra Energy shareholders’ equity | |||||||
Preferred stock of subsidiary | |||||||
Other noncontrolling interests | |||||||
Total equity | |||||||
Total liabilities and equity | $ | $ |
(1) | Derived from audited financial statements. |
SEMPRA ENERGY | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Dollars in millions) | |||||||
Six months ended June 30, | |||||||
2019 | 2018 | ||||||
(unaudited) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income (loss) | $ | $ | ( | ) | |||
Less: Income from discontinued operations, net of income tax | ( | ) | ( | ) | |||
Income (loss) from continuing operations, net of income tax | ( | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Deferred income taxes and investment tax credits | ( | ) | ( | ) | |||
Impairment losses | |||||||
Gain on sale of assets | ( | ) | |||||
Equity (earnings) losses | ( | ) | |||||
Share-based compensation expense | |||||||
Fixed-price contracts and other derivatives | ( | ) | ( | ) | |||
Other | ( | ) | |||||
Intercompany activities with discontinued operations, net | |||||||
Net change in other working capital components | |||||||
Insurance receivable for Aliso Canyon costs | ( | ) | |||||
Changes in other noncurrent assets and liabilities, net | ( | ) | ( | ) | |||
Net cash provided by continuing operations | |||||||
Net cash provided by discontinued operations | |||||||
Net cash provided by operating activities | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Expenditures for property, plant and equipment | ( | ) | ( | ) | |||
Expenditures for investments and acquisition | ( | ) | ( | ) | |||
Proceeds from sale of assets | |||||||
Purchases of nuclear decommissioning trust assets | ( | ) | ( | ) | |||
Proceeds from sales of nuclear decommissioning trust assets | |||||||
Advances to unconsolidated affiliates | ( | ) | ( | ) | |||
Repayments of advances to unconsolidated affiliates | |||||||
Intercompany activities with discontinued operations, net | ( | ) | ( | ) | |||
Other | |||||||
Net cash used in continuing operations | ( | ) | ( | ) | |||
Net cash used in discontinued operations | ( | ) | ( | ) | |||
Net cash used in investing activities | ( | ) | ( | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Common dividends paid | ( | ) | ( | ) | |||
Preferred dividends paid | ( | ) | ( | ) | |||
Preferred dividends paid by subsidiary | ( | ) | ( | ) | |||
Issuances of mandatory convertible preferred stock, net of $32 in offering costs | |||||||
Issuances of common stock, net of $38 in offering costs in 2018 | |||||||
Repurchases of common stock | ( | ) | ( | ) | |||
Issuances of debt (maturities greater than 90 days) | |||||||
Payments on debt (maturities greater than 90 days) and finance leases | ( | ) | ( | ) | |||
(Decrease) increase in short-term debt, net | ( | ) | |||||
Proceeds from sale of noncontrolling interest, net of $1 in offering costs | |||||||
Purchases of and distributions to noncontrolling interests | ( | ) | ( | ) | |||
Intercompany activities with discontinued operations, net | |||||||
Other | ( | ) | ( | ) | |||
Net cash provided by continuing operations | |||||||
Net cash used in discontinued operations | ( | ) | ( | ) | |||
Net cash provided by financing activities |
SEMPRA ENERGY | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) | ||||||||
(Dollars in millions) | ||||||||
Six months ended June 30, | ||||||||
2019 | 2018 | |||||||
(unaudited) | ||||||||
Effect of exchange rate changes in continuing operations | ||||||||
Effect of exchange rate changes in discontinued operations | ( | ) | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ) | ||||||
Increase (decrease) in cash, cash equivalents and restricted cash, including discontinued operations | ( | ) | ||||||
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 | ||||||||
Cash, cash equivalents and restricted cash, including discontinued operations, June 30 | $ | $ | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
Interest payments, net of amounts capitalized | $ | $ | ||||||
Income tax payments, net of refunds | ||||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||||||||
Acquisition: | ||||||||
Assets acquired | $ | $ | ||||||
Liabilities assumed | ( | ) | ||||||
Cash paid | $ | $ | ||||||
Accrued capital expenditures | $ | $ | ||||||
Increase in finance lease obligations for investment in property, plant and equipment | ||||||||
Preferred dividends declared but not paid | ||||||||
Common dividends issued in stock | ||||||||
Common dividends declared but not paid |
SEMPRA ENERGY | |||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Preferred stock | Common stock | Retained earnings | Accumulated other comprehensive income (loss) | Sempra Energy shareholders' equity | Non- controlling interests | Total equity | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||
Three months ended June 30, 2019 | |||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||
Net income | |||||||||||||||||||||||||||
Other comprehensive loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Share-based compensation expense | |||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||
Series A preferred stock ($1.50/share) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Series B preferred stock ($1.69/share) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Common stock ($0.97/share) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Preferred dividends of subsidiary | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Issuances of common stock | |||||||||||||||||||||||||||
Repurchases of common stock | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||
Distributions | ( | ) | ( | ) | |||||||||||||||||||||||
Purchases | ( | ) | ( | ) | |||||||||||||||||||||||
Decrease from divestiture | ( | ) | ( | ) | |||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||
Three months ended June 30, 2018 | |||||||||||||||||||||||||||
Balance at March 31, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||
Net (loss) income | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Other comprehensive loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Share-based compensation expense | |||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||
Series A preferred stock ($1.50/share) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Common stock ($0.89/share) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Preferred dividends of subsidiary | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Issuances of common stock | |||||||||||||||||||||||||||
Repurchases of common stock | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||
Equity contributions | |||||||||||||||||||||||||||
Distributions | ( | ) | ( | ) | |||||||||||||||||||||||
Purchases | ( | ) | ( | ) | |||||||||||||||||||||||
Sale, net of offering costs | |||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements. |
SEMPRA ENERGY | |||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED) | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Preferred stock | Common stock | Retained earnings | Accumulated other comprehensive income (loss) | Sempra Energy shareholders' equity | Non- controlling interests | Total equity | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||
Cumulative-effect adjustments from | |||||||||||||||||||||||||||
change in accounting principles | ( | ) | |||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||
Other comprehensive loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Share-based compensation expense | |||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||
Series A preferred stock ($3.00/share) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Series B preferred stock ($3.38/share) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Common stock ($1.94/share) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Preferred dividends of subsidiary | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Issuances of common stock | |||||||||||||||||||||||||||
Repurchases of common stock | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||
Distributions | ( | ) | ( | ) | |||||||||||||||||||||||
Purchases | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Decrease from divestiture | ( | ) | ( | ) | |||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||
Six months ended June 30, 2018 | |||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||
Cumulative-effect adjustments from | |||||||||||||||||||||||||||
change in accounting principles | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Net loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||
Share-based compensation expense | |||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||
Series A preferred stock ($3.10/share) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Common stock ($1.79/share) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Preferred dividends of subsidiary | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Issuance of series A preferred stock | |||||||||||||||||||||||||||
Issuances of common stock | |||||||||||||||||||||||||||
Repurchases of common stock | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||
Equity contributions | |||||||||||||||||||||||||||
Distributions | ( | ) | ( | ) | |||||||||||||||||||||||
Purchases | ( | ) | ( | ) | |||||||||||||||||||||||
Sale, net of offering costs | |||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements. |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(unaudited) | |||||||||||||||
Operating revenues | |||||||||||||||
Electric | $ | $ | $ | $ | |||||||||||
Natural gas | |||||||||||||||
Total operating revenues | |||||||||||||||
Operating expenses | |||||||||||||||
Cost of electric fuel and purchased power | |||||||||||||||
Cost of natural gas | |||||||||||||||
Operation and maintenance | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Franchise fees and other taxes | |||||||||||||||
Total operating expenses | |||||||||||||||
Operating income | |||||||||||||||
Other income, net | |||||||||||||||
Interest income | |||||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income before income taxes | |||||||||||||||
Income tax expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net income | |||||||||||||||
(Earnings) losses attributable to noncontrolling interest | ( | ) | ( | ) | |||||||||||
Earnings attributable to common shares | $ | $ | $ | $ |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
SDG&E shareholder’s equity | |||||||||||||||||||
Pretax amount | Income tax expense | Net-of-tax amount | Noncontrolling interest (after-tax) | Total | |||||||||||||||
(unaudited) | |||||||||||||||||||
Three months ended June 30, 2019 and 2018 | |||||||||||||||||||
2019: | |||||||||||||||||||
Net income | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Pension and other postretirement benefits | |||||||||||||||||||
Total other comprehensive income | |||||||||||||||||||
Comprehensive income | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
2018: | |||||||||||||||||||
Net income | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Financial instruments | |||||||||||||||||||
Total other comprehensive income | |||||||||||||||||||
Comprehensive income | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
Six months ended June 30, 2019 and 2018 | |||||||||||||||||||
2019: | |||||||||||||||||||
Net income | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Financial instruments | |||||||||||||||||||
Pension and other postretirement benefits | |||||||||||||||||||
Total other comprehensive income | |||||||||||||||||||
Comprehensive income | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
2018: | |||||||||||||||||||
Net income (loss) | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Financial instruments | |||||||||||||||||||
Total other comprehensive income | |||||||||||||||||||
Comprehensive income | $ | $ | ( | ) | $ | $ | $ |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars in millions) | |||||||
June 30, 2019 | December 31, 2018(1) | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Restricted cash | |||||||
Accounts receivable – trade, net | |||||||
Accounts receivable – other, net | |||||||
Inventories | |||||||
Prepaid expenses | |||||||
Regulatory assets | |||||||
Fixed-price contracts and other derivatives | |||||||
Greenhouse gas allowances | |||||||
Other | |||||||
Total current assets | |||||||
Other assets: | |||||||
Restricted cash | |||||||
Regulatory assets | |||||||
Nuclear decommissioning trusts | |||||||
Greenhouse gas allowances | |||||||
Right-of-use assets – operating leases | — | ||||||
Sundry | |||||||
Total other assets | |||||||
Property, plant and equipment: | |||||||
Property, plant and equipment | |||||||
Less accumulated depreciation and amortization | ( | ) | ( | ) | |||
Property, plant and equipment, net ($280 and $295 at June 30, 2019 and December 31, 2018, respectively, related to VIE) | |||||||
Total assets | $ | $ |
(1) | Derived from audited financial statements. |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | |||||||
(Dollars in millions) | |||||||
June 30, 2019 | December 31, 2018(1) | ||||||
(unaudited) | |||||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Short-term debt | $ | $ | |||||
Accounts payable | |||||||
Due to unconsolidated affiliates | |||||||
Accrued compensation and benefits | |||||||
Accrued franchise fees | |||||||
Regulatory liabilities | |||||||
Current portion of long-term debt and finance leases ($37 and $28 at June 30, 2019 and December 31, 2018, respectively, related to VIE) | |||||||
Customer deposits | |||||||
Greenhouse gas obligations | |||||||
Asset retirement obligations | |||||||
Other | |||||||
Total current liabilities | |||||||
Long-term debt and finance leases ($172 and $190 at June 30, 2019 and December 31, 2018, respectively, related to VIE) | |||||||
Deferred credits and other liabilities: | |||||||
Pension and other postretirement benefit plan obligations, net of plan assets | |||||||
Deferred income taxes | |||||||
Deferred investment tax credits | |||||||
Regulatory liabilities | |||||||
Asset retirement obligations | |||||||
Greenhouse gas obligations | |||||||
Deferred credits and other | |||||||
Total deferred credits and other liabilities | |||||||
Commitments and contingencies (Note 11) | |||||||
Equity: | |||||||
Preferred stock (45 million shares authorized; none issued) | |||||||
Common stock (255 million shares authorized; 117 million shares outstanding; no par value) | |||||||
Retained earnings | |||||||
Accumulated other comprehensive income (loss) | ( | ) | ( | ) | |||
Total SDG&E shareholder’s equity | |||||||
Noncontrolling interest | |||||||
Total equity | |||||||
Total liabilities and equity | $ | $ |
(1) | Derived from audited financial statements. |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Dollars in millions) | |||||||
Six months ended June 30, | |||||||
2019 | 2018 | ||||||
(unaudited) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Deferred income taxes and investment tax credits | ( | ) | |||||
Other | ( | ) | ( | ) | |||
Net change in other working capital components | ( | ) | ( | ) | |||
Changes in other noncurrent assets and liabilities, net | ( | ) | |||||
Net cash provided by operating activities | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Expenditures for property, plant and equipment | ( | ) | ( | ) | |||
Purchases of nuclear decommissioning trust assets | ( | ) | ( | ) | |||
Proceeds from sales of nuclear decommissioning trust assets | |||||||
Other | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Issuances of debt (maturities greater than 90 days) | |||||||
Payments on debt (maturities greater than 90 days) and finance leases | ( | ) | ( | ) | |||
Decrease in short-term debt, net | ( | ) | ( | ) | |||
Capital distributions made by VIE, net | ( | ) | ( | ) | |||
Debt issuance costs | ( | ) | ( | ) | |||
Net cash provided by financing activities | |||||||
Decrease in cash, cash equivalents and restricted cash | ( | ) | ( | ) | |||
Cash, cash equivalents and restricted cash, January 1 | |||||||
Cash, cash equivalents and restricted cash, June 30 | $ | $ | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
Interest payments, net of amounts capitalized | $ | $ | |||||
Income tax payments, net of refunds | |||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||||
Accrued capital expenditures | $ | $ | |||||
Increase in finance lease obligations for investment in property, plant and equipment |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Common stock | Retained earnings | Accumulated other comprehensive income (loss) | SDG&E shareholder's equity | Noncontrolling interest | Total equity | ||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Three months ended June 30, 2019 | |||||||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||
Net income | |||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||
Distributions | ( | ) | ( | ) | |||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||
Three months ended June 30, 2018 | |||||||||||||||||||||||
Balance at March 31, 2018 | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||
Net income | |||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||
Equity contributions | |||||||||||||||||||||||
Distributions | ( | ) | ( | ) | |||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||
Cumulative-effect adjustment from | |||||||||||||||||||||||
change in accounting principle | ( | ) | |||||||||||||||||||||
Net income | |||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||
Distributions | ( | ) | ( | ) | |||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||
Six months ended June 30, 2018 | |||||||||||||||||||||||
Balance at December 31, 2017 | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||
Net income (loss) | ( | ) | |||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||
Equity contributions | |||||||||||||||||||||||
Distributions | ( | ) | ( | ) | |||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | ( | ) | $ | $ | $ |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||||||
CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(unaudited) | |||||||||||||||
Operating revenues | $ | $ | $ | $ | |||||||||||
Operating expenses | |||||||||||||||
Cost of natural gas | |||||||||||||||
Operation and maintenance | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Franchise fees and other taxes | |||||||||||||||
Total operating expenses | |||||||||||||||
Operating income | |||||||||||||||
Other income, net | |||||||||||||||
Interest income | |||||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income before income taxes | |||||||||||||||
Income tax benefit (expense) | ( | ) | ( | ) | ( | ) | |||||||||
Net income | |||||||||||||||
Preferred dividend requirements | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Earnings attributable to common shares | $ | $ | $ | $ |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||
(Dollars in millions) | |||||||||||
Pretax amount | Income tax benefit (expense) | Net-of-tax amount | |||||||||
(unaudited) | |||||||||||
Three months ended June 30, 2019 and 2018 | |||||||||||
2019: | |||||||||||
Net income | $ | $ | $ | ||||||||
Other comprehensive income (loss): | |||||||||||
Pension and other postretirement benefits | ( | ) | |||||||||
Total other comprehensive income | ( | ) | |||||||||
Comprehensive income | $ | $ | $ | ||||||||
2018: | |||||||||||
Net income | $ | $ | ( | ) | $ | ||||||
Other comprehensive income (loss): | |||||||||||
Pension and other postretirement benefits | |||||||||||
Total other comprehensive income | |||||||||||
Comprehensive income | $ | $ | ( | ) | $ | ||||||
Six months ended June 30, 2019 and 2018 | |||||||||||
2019: | |||||||||||
Net income | $ | $ | ( | ) | $ | ||||||
Other comprehensive income (loss): | |||||||||||
Pension and other postretirement benefits | ( | ) | |||||||||
Total other comprehensive income | ( | ) | |||||||||
Comprehensive income | $ | $ | ( | ) | $ | ||||||
2018: | |||||||||||
Net income | $ | $ | ( | ) | $ | ||||||
Other comprehensive income (loss): | |||||||||||
Pension and other postretirement benefits | |||||||||||
Total other comprehensive income | |||||||||||
Comprehensive income | $ | $ | ( | ) | $ |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||
CONDENSED BALANCE SHEETS | |||||||
(Dollars in millions) | |||||||
June 30, 2019 | December 31, 2018(1) | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Accounts receivable – trade, net | |||||||
Accounts receivable – other, net | |||||||
Due from unconsolidated affiliates | |||||||
Inventories | |||||||
Regulatory assets | |||||||
Greenhouse gas allowances | |||||||
Other | |||||||
Total current assets | |||||||
Other assets: | |||||||
Regulatory assets | |||||||
Insurance receivable for Aliso Canyon costs | |||||||
Greenhouse gas allowances | |||||||
Right-of-use assets – operating leases | — | ||||||
Sundry | |||||||
Total other assets | |||||||
Property, plant and equipment: | |||||||
Property, plant and equipment | |||||||
Less accumulated depreciation and amortization | ( | ) | ( | ) | |||
Property, plant and equipment, net | |||||||
Total assets | $ | $ |
(1) | Derived from audited financial statements. |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||
CONDENSED BALANCE SHEETS (CONTINUED) | |||||||
(Dollars in millions) | |||||||
June 30, 2019 | December 31, 2018(1) | ||||||
(unaudited) | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Short-term debt | $ | $ | |||||
Accounts payable – trade | |||||||
Accounts payable – other | |||||||
Due to unconsolidated affiliates | |||||||
Accrued compensation and benefits | |||||||
Regulatory liabilities | |||||||
Current portion of long-term debt and finance leases | |||||||
Customer deposits | |||||||
Reserve for Aliso Canyon costs | |||||||
Greenhouse gas obligations | |||||||
Asset retirement obligations | |||||||
Other | |||||||
Total current liabilities | |||||||
Long-term debt and finance leases | |||||||
Deferred credits and other liabilities: | |||||||
Pension obligation, net of plan assets | |||||||
Deferred income taxes | |||||||
Deferred investment tax credits | |||||||
Regulatory liabilities | |||||||
Asset retirement obligations | |||||||
Greenhouse gas obligations | |||||||
Deferred credits and other | |||||||
Total deferred credits and other liabilities | |||||||
Commitments and contingencies (Note 11) | |||||||
Shareholders’ equity: | |||||||
Preferred stock (11 million shares authorized; 1 million shares outstanding) | |||||||
Common stock (100 million shares authorized; 91 million shares outstanding; | |||||||
no par value) | |||||||
Retained earnings | |||||||
Accumulated other comprehensive income (loss) | ( | ) | ( | ) | |||
Total shareholders’ equity | |||||||
Total liabilities and shareholders’ equity | $ | $ |
(1) | Derived from audited financial statements. |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||
(Dollars in millions) | |||||||
Six months ended June 30, | |||||||
2019 | 2018 | ||||||
(unaudited) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Deferred income taxes and investment tax credits | ( | ) | |||||
Other | |||||||
Net change in other working capital components | |||||||
Insurance receivable for Aliso Canyon costs | ( | ) | |||||
Changes in other noncurrent assets and liabilities, net | ( | ) | ( | ) | |||
Net cash provided by operating activities | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Expenditures for property, plant and equipment | ( | ) | ( | ) | |||
Increase in loans to affiliate, net | ( | ) | |||||
Other | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Preferred dividends paid | ( | ) | ( | ) | |||
Issuances of debt (maturities greater than 90 days) | |||||||
Payments on debt (maturities greater than 90 days) and finance leases | ( | ) | ( | ) | |||
(Decrease) increase in short-term debt, net | ( | ) | |||||
Debt issuance costs | ( | ) | ( | ) | |||
Net cash provided by financing activities | |||||||
Increase in cash and cash equivalents | |||||||
Cash and cash equivalents, January 1 | |||||||
Cash and cash equivalents, June 30 | $ | $ | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
Interest payments, net of amounts capitalized | $ | $ | |||||
Income tax payments (refunds), net | ( | ) | |||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||||
Accrued capital expenditures | $ | $ | |||||
Increase in finance lease obligations for investment in property, plant and equipment |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||||||||||
CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Preferred stock | Common stock | Retained earnings | Accumulated other comprehensive income (loss) | Total shareholders’ equity | |||||||||||||||
(unaudited) | |||||||||||||||||||
Three months ended June 30, 2019 | |||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Net income | |||||||||||||||||||
Other comprehensive income | |||||||||||||||||||
Preferred stock dividends declared ($0.37/share) | ( | ) | ( | ) | |||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Three months ended June 30, 2018 | |||||||||||||||||||
Balance at March 31, 2018 | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Net income | |||||||||||||||||||
Other comprehensive income | |||||||||||||||||||
Preferred stock dividends declared ($0.37/share) | ( | ) | ( | ) | |||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Cumulative-effect adjustment from | |||||||||||||||||||
change in accounting principle | ( | ) | ( | ) | |||||||||||||||
Net income | |||||||||||||||||||
Other comprehensive income | |||||||||||||||||||
Preferred stock dividends declared ($0.75/share) | ( | ) | ( | ) | |||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Six months ended June 30, 2018 | |||||||||||||||||||
Balance at December 31, 2017 | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Net income | |||||||||||||||||||
Other comprehensive income | |||||||||||||||||||
Preferred stock dividends declared ($0.75/share) | ( | ) | ( | ) | |||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | $ | ( | ) | $ |
▪ | the Condensed Consolidated Financial Statements and related Notes of Sempra Energy and its subsidiaries and VIEs; |
▪ | the Condensed Consolidated Financial Statements and related Notes of SDG&E and its VIE; and |
▪ | the Condensed Financial Statements and related Notes of SoCalGas. |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||||||
(Dollars in millions) | ||||||
June 30, | December 31, | |||||
2019 | 2018 | |||||
Sempra Energy Consolidated: | ||||||
Cash and cash equivalents | $ | $ | ||||
Restricted cash, current | ||||||
Restricted cash, noncurrent | ||||||
Cash, cash equivalents and restricted cash in discontinued operations | ||||||
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | $ | $ | ||||
SDG&E: | ||||||
Cash and cash equivalents | $ | $ | ||||
Restricted cash, current | ||||||
Restricted cash, noncurrent | ||||||
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | $ | $ |
INVENTORY BALANCES | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||
Natural gas | LNG | Materials and supplies | Total | |||||||||||||||||||||||||||||||
June 30, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||
SDG&E | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
SoCalGas | ||||||||||||||||||||||||||||||||||
Sempra Mexico | ||||||||||||||||||||||||||||||||||
Sempra LNG | ||||||||||||||||||||||||||||||||||
Sempra Energy Consolidated | $ | $ | $ | $ | $ | $ | $ | $ |
CAPITALIZED FINANCING COSTS | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Sempra Energy Consolidated | $ | $ | $ | $ | |||||||||||
SDG&E | |||||||||||||||
SoCalGas |
▪ | the purpose and design of the VIE; |
▪ | the nature of the VIE’s risks and the risks we absorb; |
▪ | the power to direct activities that most significantly impact the economic performance of the VIE; and |
▪ | the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. |
AMOUNTS ASSOCIATED WITH OTAY MESA VIE | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating expenses | |||||||||||||||
Cost of electric fuel and purchased power | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Operation and maintenance | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Total operating expenses | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Operating income | |||||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income (loss) before income taxes/Net income (loss) | ( | ) | |||||||||||||
(Earnings) losses attributable to noncontrolling interest | ( | ) | ( | ) | |||||||||||
Earnings attributable to common shares | $ | $ | $ | $ |
AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
REVENUES | |||||||||||||||
Energy-related businesses | $ | $ | $ | $ | |||||||||||
EXPENSES | |||||||||||||||
Operation and maintenance | ( | ) | ( | ) | ( | ) | |||||||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income before income taxes | |||||||||||||||
Income tax expense | ( | ) | ( | ) | ( | ) | |||||||||
Net income | |||||||||||||||
Losses (earnings) attributable to noncontrolling interests(1) | ( | ) | |||||||||||||
Earnings attributable to common shares | $ | $ | $ | $ |
(1) |
NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Pension benefits | Other postretirement benefits | ||||||||||||||
Three months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Expected return on assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization of: | |||||||||||||||
Prior service cost | |||||||||||||||
Actuarial loss (gain) | ( | ) | ( | ) | |||||||||||
Settlement charges | |||||||||||||||
Net periodic benefit cost (credit) | ( | ) | ( | ) | |||||||||||
Regulatory adjustments | ( | ) | |||||||||||||
Total expense recognized | $ | $ | $ | $ | |||||||||||
Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Expected return on assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization of: | |||||||||||||||
Prior service cost | |||||||||||||||
Actuarial loss (gain) | ( | ) | ( | ) | |||||||||||
Settlement charges | |||||||||||||||
Net periodic benefit cost (credit) | ( | ) | ( | ) | |||||||||||
Regulatory adjustments | ( | ) | ( | ) | |||||||||||
Total expense recognized | $ | $ | $ | $ |
NET PERIODIC BENEFIT COST – SDG&E | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Pension benefits | Other postretirement benefits | ||||||||||||||
Three months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Expected return on assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization of: | |||||||||||||||
Prior service cost | |||||||||||||||
Actuarial loss | |||||||||||||||
Settlement charges | |||||||||||||||
Net periodic benefit cost (credit) | ( | ) | |||||||||||||
Regulatory adjustments | ( | ) | ( | ) | |||||||||||
Total expense recognized | $ | $ | $ | $ | |||||||||||
Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Expected return on assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization of: | |||||||||||||||
Prior service cost | |||||||||||||||
Actuarial loss (gain) | ( | ) | ( | ) | |||||||||||
Settlement charges | |||||||||||||||
Net periodic benefit cost (credit) | ( | ) | |||||||||||||
Regulatory adjustments | ( | ) | ( | ) | |||||||||||
Total expense recognized | $ | $ | $ | $ |
NET PERIODIC BENEFIT COST – SOCALGAS | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Pension benefits | Other postretirement benefits | ||||||||||||||
Three months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Expected return on assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization of: | |||||||||||||||
Prior service cost | |||||||||||||||
Actuarial loss (gain) | ( | ) | ( | ) | |||||||||||
Settlement charges | |||||||||||||||
Net periodic benefit cost (credit) | ( | ) | ( | ) | |||||||||||
Regulatory adjustments | ( | ) | |||||||||||||
Total expense recognized | $ | $ | $ | $ | |||||||||||
Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Expected return on assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization of: | |||||||||||||||
Prior service cost (credit) | ( | ) | ( | ) | |||||||||||
Actuarial loss (gain) | ( | ) | ( | ) | |||||||||||
Settlement charges | |||||||||||||||
Net periodic benefit cost (credit) | ( | ) | ( | ) | |||||||||||
Regulatory adjustments | ( | ) | ( | ) | |||||||||||
Total expense recognized | $ | $ | $ | $ |
BENEFIT PLAN CONTRIBUTIONS | ||||||||||||
(Dollars in millions) | ||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | ||||||||||
Contributions through June 30, 2019: | ||||||||||||
Pension plans | $ | $ | $ | |||||||||
Other postretirement benefit plans | ||||||||||||
Total expected contributions in 2019: | ||||||||||||
Pension plans | $ | $ | $ | |||||||||
Other postretirement benefit plans |
EARNINGS (LOSSES) PER COMMON SHARE COMPUTATIONS | |||||||||||||||
(Dollars in millions, except per share amounts; shares in thousands) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Numerator for continuing operations: | |||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
(Earnings) losses attributable to noncontrolling interests | ( | ) | ( | ) | |||||||||||
Mandatory convertible preferred stock dividends | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Preferred dividends of subsidiary | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Earnings (losses) from continuing operations attributable to common shares | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Numerator for discontinued operations: | |||||||||||||||
Income from discontinued operations, net of income tax | $ | $ | $ | $ | |||||||||||
Earnings attributable to noncontrolling interests | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Earnings from discontinued operations attributable to common shares | $ | $ | $ | $ | |||||||||||
Numerator for earnings: | |||||||||||||||
Earnings (losses) attributable to common shares | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Denominator: | |||||||||||||||
Weighted-average common shares outstanding for basic EPS(1) | |||||||||||||||
Dilutive effect of stock options and RSUs(2)(3) | |||||||||||||||
Dilutive effect of common shares sold forward(2) | |||||||||||||||
Weighted-average common shares outstanding for diluted EPS | |||||||||||||||
Basic EPS: | |||||||||||||||
Earnings (losses) from continuing operations attributable to common shares | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Earnings from discontinued operations attributable to common shares | $ | $ | $ | $ | |||||||||||
Earnings (losses) attributable to common shares | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Diluted EPS: | |||||||||||||||
Earnings (losses) from continuing operations attributable to common shares | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Earnings from discontinued operations attributable to common shares | $ | $ | $ | $ | |||||||||||
Earnings (losses) attributable to common shares | $ | $ | ( | ) | $ | $ | ( | ) |
(1) | Includes |
(2) | In the three months and six months ended June 30, 2018, the total weighted-average potentially dilutive stock options and RSUs was |
(3) |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Foreign currency translation adjustments | Financial instruments | Pension and other postretirement benefits | Total accumulated other comprehensive income (loss) | ||||||||||||
Three months ended June 30, 2019 and 2018 | |||||||||||||||
Sempra Energy Consolidated(2): | |||||||||||||||
Balance as of March 31, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
OCI before reclassifications(3) | ( | ) | ( | ) | ( | ) | |||||||||
Amounts reclassified from AOCI(3) | |||||||||||||||
Net OCI | ( | ) | ( | ) | |||||||||||
Balance as of June 30, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Balance as of March 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
OCI before reclassifications | ( | ) | ( | ) | |||||||||||
Amounts reclassified from AOCI | |||||||||||||||
Net OCI | ( | ) | ( | ) | |||||||||||
Balance as of June 30, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
SDG&E: | |||||||||||||||
Balance as of March 31, 2019 | $ | ( | ) | $ | ( | ) | |||||||||
Amounts reclassified from AOCI | |||||||||||||||
Net OCI | |||||||||||||||
Balance as of June 30, 2019 | $ | ( | ) | $ | ( | ) | |||||||||
Balance as of March 31, 2018 and June 30, 2018 | $ | ( | ) | $ | ( | ) | |||||||||
SoCalGas: | |||||||||||||||
Balance as of March 31, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Amounts reclassified from AOCI(3) | |||||||||||||||
Net OCI | |||||||||||||||
Balance as of June 30, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Balance as of March 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Amounts reclassified from AOCI | |||||||||||||||
Net OCI | |||||||||||||||
Balance as of June 30, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(1) | All amounts are net of income tax, if subject to tax, and exclude NCI. |
(2) | Includes discontinued operations. |
(3) | Pension and Other Postretirement Benefits and Total AOCI include a $ |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) (CONTINUED) | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Foreign currency translation adjustments | Financial instruments | Pension and other postretirement benefits | Total accumulated other comprehensive income (loss) | ||||||||||||
Six months ended June 30, 2019 and 2018 | |||||||||||||||
Sempra Energy Consolidated(2): | |||||||||||||||
Balance as of December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Cumulative-effect adjustment from change in accounting principle | ( | ) | ( | ) | ( | ) | |||||||||
OCI before reclassifications(3) | ( | ) | ( | ) | ( | ) | |||||||||
Amounts reclassified from AOCI(3) | |||||||||||||||
Net OCI | ( | ) | ( | ) | |||||||||||
Balance as of June 30, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Balance as of December 31, 2017 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Cumulative-effect adjustment from change in accounting principle | ( | ) | ( | ) | |||||||||||
OCI before reclassifications | ( | ) | |||||||||||||
Amounts reclassified from AOCI | |||||||||||||||
Net OCI | ( | ) | |||||||||||||
Balance as of June 30, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
SDG&E: | |||||||||||||||
Balance as of December 31, 2018 | $ | ( | ) | $ | ( | ) | |||||||||
Cumulative-effect adjustment from change in accounting principle | ( | ) | ( | ) | |||||||||||
Amounts reclassified from AOCI | |||||||||||||||
Net OCI | |||||||||||||||
Balance as of June 30, 2019 | $ | ( | ) | $ | ( | ) | |||||||||
Balance as of December 31, 2017 and June 30, 2018 | $ | ( | ) | $ | ( | ) | |||||||||
SoCalGas: | |||||||||||||||
Balance as of December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Cumulative-effect adjustment from change in accounting principle | ( | ) | ( | ) | ( | ) | |||||||||
Amounts reclassified from AOCI(3) | |||||||||||||||
Net OCI | |||||||||||||||
Balance as of June 30, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Balance as of December 31, 2017 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Amounts reclassified from AOCI | |||||||||||||||
Net OCI | |||||||||||||||
Balance as of June 30, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(1) | All amounts are net of income tax, if subject to tax, and exclude NCI. |
(2) | Includes discontinued operations. |
(3) | Pension and Other Postretirement Benefits and Total AOCI include a $ |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||
(Dollars in millions) | |||||||||
Details about accumulated other comprehensive income (loss) components | Amounts reclassified from accumulated other comprehensive income (loss) | Affected line item on Condensed Consolidated Statements of Operations | |||||||
Three months ended June 30, | |||||||||
2019 | 2018 | ||||||||
Sempra Energy Consolidated: | |||||||||
Financial instruments: | |||||||||
Interest rate and foreign exchange instruments(1) | $ | $ | Interest Expense | ||||||
( | ) | Other Income (Expense), Net | |||||||
Interest rate instruments | Gain on Sale of Assets | ||||||||
Interest rate and foreign exchange instruments | Equity Earnings (Losses) | ||||||||
Foreign exchange instruments | ( | ) | Revenues: Energy-Related Businesses | ||||||
Total before income tax | |||||||||
( | ) | ( | ) | Income Tax (Expense) Benefit | |||||
Net of income tax | |||||||||
( | ) | (Earnings) Losses Attributable to Noncontrolling Interests | |||||||
$ | $ | ||||||||
Pension and other postretirement benefits: | |||||||||
Amortization of actuarial loss(2) | $ | $ | Other Income (Expense), Net | ||||||
Settlements(2) | Other Income (Expense), Net | ||||||||
Total before income tax | |||||||||
( | ) | ( | ) | Income Tax (Expense) Benefit | |||||
Net of income tax | $ | $ | |||||||
Total reclassifications for the period, net of tax | $ | $ | |||||||
SDG&E: | |||||||||
Financial instruments: | |||||||||
Interest rate instruments(1) | $ | $ | Interest Expense | ||||||
( | ) | ( | ) | (Earnings) Losses Attributable to Noncontrolling Interest | |||||
$ | $ | ||||||||
Pension and other postretirement benefits: | |||||||||
Amortization of prior service cost(2) | $ | $ | Other Income, Net | ||||||
Total reclassifications for the period, net of tax | $ | $ | |||||||
SoCalGas: | |||||||||
Pension and other postretirement benefits: | |||||||||
Amortization of actuarial loss(2) | $ | $ | Other Income, Net | ||||||
Total reclassifications for the period, net of tax | $ | $ |
(1) | Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. |
(2) | 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) (CONTINUED) | |||||||||
(Dollars in millions) | |||||||||
Details about accumulated other comprehensive income (loss) components | Amounts reclassified from accumulated other comprehensive income (loss) | Affected line item on Condensed Consolidated Statements of Operations | |||||||
Six months ended June 30, | |||||||||
2019 | 2018 | ||||||||
Sempra Energy Consolidated: | |||||||||
Financial instruments: | |||||||||
Interest rate and foreign exchange instruments(1) | $ | $ | ( | ) | Interest Expense | ||||
( | ) | Other Income (Expense), Net | |||||||
Interest rate instruments | Gain on Sale of Assets | ||||||||
Interest rate and foreign exchange instruments | Equity Earnings (Losses) | ||||||||
Foreign exchange instruments | ( | ) | Revenues: Energy-Related Businesses | ||||||
Total before income tax | |||||||||
( | ) | ( | ) | Income Tax (Expense) Benefit | |||||
Net of income tax | |||||||||
( | ) | ( | ) | (Earnings) Losses Attributable to Noncontrolling Interests | |||||
$ | $ | ||||||||
Pension and other postretirement benefits: | |||||||||
Amortization of actuarial loss(2) | $ | $ | Other Income (Expense), Net | ||||||
Amortization of prior service cost(2) | Other Income (Expense), Net | ||||||||
Settlements(2) | Other Income (Expense), Net | ||||||||
Total before income tax | |||||||||
( | ) | ( | ) | Income Tax (Expense) Benefit | |||||
Net of income tax | $ | $ | |||||||
Total reclassifications for the period, net of tax | $ | $ | |||||||
SDG&E: | |||||||||
Financial instruments: | |||||||||
Interest rate instruments(1) | $ | $ | Interest Expense | ||||||
( | ) | ( | ) | (Earnings) Losses Attributable to Noncontrolling Interest | |||||
$ | $ | ||||||||
Pension and other postretirement benefits: | |||||||||
Amortization of prior service cost(2) | $ | $ | Other Income, Net | ||||||
Total reclassifications for the period, net of tax | $ | $ | |||||||
SoCalGas: | |||||||||
Pension and other postretirement benefits: | |||||||||
Amortization of actuarial loss(2) | $ | $ | Other Income, Net | ||||||
Total reclassifications for the period, net of tax | $ | $ |
(1) | Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. |
(2) | Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above). |
OTHER NONCONTROLLING INTERESTS | |||||||||||
(Dollars in millions) | |||||||||||
Percent ownership held by noncontrolling interests | Equity (deficit) held by noncontrolling interests | ||||||||||
June 30, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | ||||||||
SDG&E: | |||||||||||
Otay Mesa VIE | % | % | $ | $ | |||||||
Sempra Mexico: | |||||||||||
IEnova | |||||||||||
IEnova subsidiaries(1) | 10.0 – 47.6 | 10.0 – 49.0 | |||||||||
Sempra Renewables: | |||||||||||
Tax equity arrangements – wind(2) | NA | ||||||||||
PXiSE Energy Solutions, LLC(3) | |||||||||||
Sempra LNG: | |||||||||||
Bay Gas | |||||||||||
Liberty Gas Storage, LLC | ( | ) | ( | ) | |||||||
Discontinued Operations: | |||||||||||
Chilquinta Energía subsidiaries(1) | 19.7 – 43.4 | 19.7 – 43.4 | |||||||||
Luz del Sur | |||||||||||
Tecsur | |||||||||||
Total Sempra Energy | $ | $ |
(1) | IEnova and Chilquinta Energía have subsidiaries with NCI held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries. |
(2) | Net income or loss attributable to NCI is computed using the HLBV method and is not based on ownership percentages. |
(3) | In April 2019, PXiSE Energy Solutions, LLC was subsumed into Parent and other. At June 30, 2019, equity held by NCI was negligible. |
AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES | |||||||
(Dollars in millions) | |||||||
June 30, 2019 | December 31, 2018 | ||||||
Sempra Energy Consolidated: | |||||||
Total due from various unconsolidated affiliates – current | $ | $ | |||||
Sempra Mexico(1): | |||||||
IMG – Note due March 15, 2022(2) | $ | $ | |||||
Energía Sierra Juárez – Note(3) | |||||||
Total due from unconsolidated affiliates – noncurrent | $ | $ | |||||
Total due to various unconsolidated affiliates – current | $ | ( | ) | $ | ( | ) | |
Sempra Mexico(1): | |||||||
Total due to unconsolidated affiliates – noncurrent – TAG – Note due December 20, 2021(4) | $ | ( | ) | $ | ( | ) | |
SDG&E: | |||||||
Sempra Energy | $ | ( | ) | $ | ( | ) | |
SoCalGas | ( | ) | ( | ) | |||
Various affiliates | ( | ) | ( | ) | |||
Total due to unconsolidated affiliates – current | $ | ( | ) | $ | ( | ) | |
Income taxes due from Sempra Energy(5) | $ | $ | |||||
SoCalGas: | |||||||
Sempra Energy(6) | $ | $ | |||||
SDG&E | |||||||
Various affiliates | |||||||
Total due from unconsolidated affiliates – current | $ | $ | |||||
Total due to unconsolidated affiliates – current – Sempra Energy | $ | $ | ( | ) | |||
Income taxes due to Sempra Energy(5) | $ | ( | ) | $ | ( | ) |
(1) | Amounts include principal balances plus accumulated interest outstanding. |
(2) | Mexican peso-denominated revolving line of credit for up to |
(3) | U.S. dollar-denominated loan, at a variable interest rate based on the 30-day LIBOR plus 637.5 bps ( |
(4) | U.S. dollar-denominated loan, at a variable interest rate based on the 6-month LIBOR plus 290 bps ( |
(5) | SDG&E and SoCalGas are included in the consolidated income tax return of Sempra Energy and their respective income tax expense is computed as an amount equal to that which would result from each company having always filed a separate return. |
(6) | At June 30, 2019, net receivable includes outstanding advances to Sempra Energy of $ |
REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | |||||||||||||||
Sempra Energy Consolidated | $ | $ | $ | $ | |||||||||||
SDG&E | |||||||||||||||
SoCalGas | |||||||||||||||
Cost of Sales: | |||||||||||||||
Sempra Energy Consolidated | $ | $ | $ | $ | |||||||||||
SDG&E | |||||||||||||||
SoCalGas |
OTHER INCOME (EXPENSE), NET | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Sempra Energy Consolidated: | |||||||||||||||
Allowance for equity funds used during construction | $ | $ | $ | $ | |||||||||||
Investment gains(1) | |||||||||||||||
Gains (losses) on interest rate and foreign exchange instruments, net | ( | ) | |||||||||||||
Foreign currency transaction gains (losses), net(2) | ( | ) | ( | ) | |||||||||||
Non-service component of net periodic benefit (cost) credit | ( | ) | ( | ) | |||||||||||
Penalties related to billing practices OII | ( | ) | |||||||||||||
Interest on regulatory balancing accounts, net | |||||||||||||||
Sundry, net | ( | ) | ( | ) | |||||||||||
Total | $ | $ | ( | ) | $ | $ | |||||||||
SDG&E: | |||||||||||||||
Allowance for equity funds used during construction | $ | $ | $ | $ | |||||||||||
Non-service component of net periodic benefit (cost) credit | ( | ) | |||||||||||||
Interest on regulatory balancing accounts, net | |||||||||||||||
Sundry, net | ( | ) | ( | ) | |||||||||||
Total | $ | $ | $ | $ | |||||||||||
SoCalGas: | |||||||||||||||
Allowance for equity funds used during construction | $ | $ | $ | $ | |||||||||||
Non-service component of net periodic benefit (cost) credit | ( | ) | |||||||||||||
Penalties related to billing practices OII | ( | ) | |||||||||||||
Interest on regulatory balancing accounts, net | ( | ) | ( | ) | ( | ) | |||||||||
Sundry, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total | $ | $ | $ | $ |
(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, recorded in O&M on the Condensed Consolidated Statements of Operations. |
(2) | Includes gains of $ |
INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Sempra Energy Consolidated: | |||||||||||||||
Income tax expense (benefit) from continuing operations | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Income (loss) from continuing operations before income taxes | |||||||||||||||
and equity earnings (losses) | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Equity earnings (losses), before income tax(1) | ( | ) | ( | ) | |||||||||||
Pretax income (loss) | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Effective income tax rate | % | % | % | % | |||||||||||
SDG&E: | |||||||||||||||
Income tax expense | $ | $ | $ | $ | |||||||||||
Income before income taxes | $ | $ | $ | $ | |||||||||||
Effective income tax rate | % | % | % | % | |||||||||||
SoCalGas: | |||||||||||||||
Income tax (benefit) expense | $ | ( | ) | $ | $ | $ | |||||||||
Income before income taxes | $ | $ | $ | $ | |||||||||||
Effective income tax rate | ( | )% | % | % | % |
(1) | We discuss how we recognize equity earnings in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. |
▪ | repairs expenditures related to a certain portion of utility plant fixed assets; |
▪ | the equity portion of AFUDC, which is non-taxable; |
▪ | a portion of the cost of removal of utility plant assets; |
▪ | utility self-developed software expenditures; |
▪ | depreciation on a certain portion of utility plant assets; and |
▪ | state income taxes. |
▪ | $ |
▪ | $ |
IMPACT FROM ADOPTION OF THE LEASE STANDARD | |||||||||||
(Dollars in millions) | |||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||
Assets held for sale | $ | $ | $ | ||||||||
Sundry | ( | ) | |||||||||
Property, plant and equipment, net | ( | ) | |||||||||
Right-of-use assets – operating leases | |||||||||||
Deferred income tax assets | ( | ) | |||||||||
Other current liabilities | |||||||||||
Long-term debt | ( | ) | |||||||||
Deferred credits and other | |||||||||||
Retained earnings |
▪ | Sempra Energy: increase of $ |
▪ | SDG&E: increase of $ |
▪ | SoCalGas: increase of $ |
DISAGGREGATED REVENUES | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Three months ended June 30, 2019 | |||||||||||||||||||||||||||
SDG&E | SoCalGas | Sempra Mexico | Sempra Renewables | Sempra LNG | Consolidating adjustments | Sempra Energy Consolidated | |||||||||||||||||||||
By major service line: | |||||||||||||||||||||||||||
Utilities | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Midstream | ( | ) | |||||||||||||||||||||||||
Renewables | ( | ) | |||||||||||||||||||||||||
Other | ( | ) | |||||||||||||||||||||||||
Revenues from contracts with customers | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
By market: | |||||||||||||||||||||||||||
Gas | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Electric | ( | ) | |||||||||||||||||||||||||
Revenues from contracts with customers | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Revenues from contracts with customers | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Utilities regulatory revenues | ( | ) | |||||||||||||||||||||||||
Other revenues | ( | ) | |||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||||||||||
By major service line: | |||||||||||||||||||||||||||
Utilities | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Midstream | ( | ) | |||||||||||||||||||||||||
Renewables | ( | ) | |||||||||||||||||||||||||
Other | ( | ) | |||||||||||||||||||||||||
Revenues from contracts with customers | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
By market: | |||||||||||||||||||||||||||
Gas | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Electric | ( | ) | |||||||||||||||||||||||||
Revenues from contracts with customers | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Revenues from contracts with customers | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Utilities regulatory revenues | ( | ) | ( | ) | |||||||||||||||||||||||
Other revenues | ( | ) | |||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | ( | ) | $ |
DISAGGREGATED REVENUES (CONTINUED) | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Three months ended June 30, 2018 | |||||||||||||||||||||||||||
SDG&E | SoCalGas | Sempra Mexico | Sempra Renewables | Sempra LNG | Consolidating adjustments | Sempra Energy Consolidated | |||||||||||||||||||||
By major service line: | |||||||||||||||||||||||||||
Utilities | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Midstream | ( | ) | |||||||||||||||||||||||||
Renewables | |||||||||||||||||||||||||||
Other | ( | ) | |||||||||||||||||||||||||
Revenues from contracts with customers | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
By market: | |||||||||||||||||||||||||||
Gas | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Electric | ( | ) | |||||||||||||||||||||||||
Revenues from contracts with customers | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Revenues from contracts with customers | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Utilities regulatory revenues | |||||||||||||||||||||||||||
Other revenues | ( | ) | |||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Six months ended June 30, 2018 | |||||||||||||||||||||||||||
By major service line: | |||||||||||||||||||||||||||
Utilities | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Midstream | ( | ) | |||||||||||||||||||||||||
Renewables | |||||||||||||||||||||||||||
Other | ( | ) | |||||||||||||||||||||||||
Revenues from contracts with customers | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
By market: | |||||||||||||||||||||||||||
Gas | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Electric | ( | ) | |||||||||||||||||||||||||
Revenues from contracts with customers | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Revenues from contracts with customers | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Utilities regulatory revenues | ( | ) | |||||||||||||||||||||||||
Other revenues | ( | ) | |||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | ( | ) | $ |
REMAINING PERFORMANCE OBLIGATIONS(1) | ||||||
(Dollars in millions) | ||||||
Sempra Energy Consolidated | SDG&E | |||||
2019 (excluding first six months of 2019) | $ | $ | ||||
2020 | ||||||
2021 | ||||||
2022 | ||||||
2023 | ||||||
Thereafter | ||||||
Total revenues to be recognized | $ | $ |
(1) | Excludes intercompany transactions. |
CONTRACT LIABILITIES | |||
(Dollars in millions) | |||
Balance at January 1, 2019 | $ | ( | ) |
Revenue from performance obligations satisfied during reporting period | |||
Payments received in advance | ( | ) | |
Balance at June 30, 2019(1) | $ | ( | ) |
Balance at January 1, 2018 | $ | ||
Adoption of ASC 606 adjustment | ( | ) | |
Revenue from performance obligations satisfied during reporting period | |||
Payments received in advance | ( | ) | |
Balance at June 30, 2018 | $ | ( | ) |
(1) | Includes a negligible amount in Other Current Liabilities and $ |
RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS | |||||||
(Dollars in millions) | |||||||
June 30, 2019 | December 31, 2018 | ||||||
Sempra Energy Consolidated: | |||||||
Accounts receivable – trade, net | $ | $ | |||||
Accounts receivable – other, net | |||||||
Due from unconsolidated affiliates – current(1) | |||||||
Assets held for sale | |||||||
Total | $ | $ | |||||
SDG&E: | |||||||
Accounts receivable – trade, net | $ | $ | |||||
Accounts receivable – other, net | |||||||
Due from unconsolidated affiliates – current(1) | |||||||
Total | $ | $ | |||||
SoCalGas: | |||||||
Accounts receivable – trade, net | $ | $ | |||||
Accounts receivable – other, net | |||||||
Total | $ | $ |
(1) | Amount is presented net of amounts due to unconsolidated affiliates on the Condensed Consolidated Balance Sheets, when right of offset exists. |
REGULATORY ASSETS (LIABILITIES) | |||||||
(Dollars in millions) | |||||||
June 30, 2019 | December 31, 2018 | ||||||
SDG&E: | |||||||
Fixed-price contracts and other derivatives | $ | ( | ) | $ | ( | ) | |
Deferred income taxes refundable in rates | ( | ) | ( | ) | |||
Pension and other postretirement benefit plan obligations | |||||||
Removal obligations | ( | ) | ( | ) | |||
Unamortized loss on reacquired debt | |||||||
Environmental costs | |||||||
Sunrise Powerlink fire mitigation | |||||||
Regulatory balancing accounts(1) | |||||||
Commodity – electric | ( | ) | |||||
Gas transportation | |||||||
Safety and reliability | |||||||
Public purpose programs | ( | ) | ( | ) | |||
Other balancing accounts | |||||||
Other regulatory liabilities, net(2) | ( | ) | ( | ) | |||
Total SDG&E | ( | ) | ( | ) | |||
SoCalGas: | |||||||
Pension and other postretirement benefit plan obligations | |||||||
Employee benefit costs | |||||||
Removal obligations | ( | ) | ( | ) | |||
Deferred income taxes refundable in rates | ( | ) | ( | ) | |||
Unamortized loss on reacquired debt | |||||||
Environmental costs | |||||||
Workers’ compensation | |||||||
Regulatory balancing accounts(1) | |||||||
Commodity – gas, including transportation | ( | ) | |||||
Safety and reliability | |||||||
Public purpose programs | ( | ) | ( | ) | |||
Other balancing accounts | ( | ) | |||||
Other regulatory liabilities, net(2) | ( | ) | ( | ) | |||
Total SoCalGas | ( | ) | ( | ) | |||
Sempra Mexico: | |||||||
Deferred income taxes recoverable in rates | |||||||
Other regulatory assets | |||||||
Total Sempra Energy Consolidated | $ | ( | ) | $ | ( | ) |
(1) | At June 30, 2019 and December 31, 2018, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $ |
(2) | Includes regulatory assets earning a rate of return. |
DISCONTINUED OPERATIONS | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | $ | $ | $ | $ | |||||||||||
Cost of sales | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Operating expenses | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Interest and other | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income before income taxes and equity earnings | |||||||||||||||
Income tax expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Equity earnings | |||||||||||||||
Income from discontinued operations, net of income tax | |||||||||||||||
Earnings attributable to noncontrolling interests | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Earnings from discontinued operations attributable to common shares | $ | $ | $ | $ |
ASSETS HELD FOR SALE IN DISCONTINUED OPERATIONS | |||||||
(Dollars in millions) | |||||||
June 30, 2019 | December 31, 2018 | ||||||
Cash and cash equivalents | $ | $ | |||||
Restricted cash(1) | |||||||
Accounts receivable, net | |||||||
Due from unconsolidated affiliates | |||||||
Inventories | |||||||
Other current assets | |||||||
Current assets | $ | $ | |||||
Due from unconsolidated affiliates | $ | $ | |||||
Goodwill and other intangible assets | |||||||
Property, plant and equipment, net | |||||||
Other noncurrent assets | |||||||
Noncurrent assets | $ | $ | |||||
Short-term debt | $ | $ | |||||
Accounts payable | |||||||
Current portion of long-term debt and finance leases | |||||||
Other current liabilities | |||||||
Current liabilities | $ | $ | |||||
Long-term debt and finance leases | $ | $ | |||||
Deferred income taxes | |||||||
Other noncurrent liabilities | |||||||
Noncurrent liabilities | $ | $ |
(1) | Primarily represents funds held in accordance with Peruvian tax law. |
SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS | |||||||||||||
(Dollars in millions) | |||||||||||||
Three months ended June 30, | Six months ended June 30, 2019 | March 9 - June 30, 2018 | |||||||||||
2019 | 2018 | ||||||||||||
Operating revenues | $ | $ | $ | $ | |||||||||
Operating expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Income from operations | |||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Income tax expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Net income | |||||||||||||
Noncontrolling interest held by TTI | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Earnings attributable to Sempra Energy |
PRIMARY U.S. COMMITTED LINES OF CREDIT | |||||||||||||
(Dollars in millions) | |||||||||||||
June 30, 2019 | |||||||||||||
Total facility | Commercial paper outstanding(1) | Available unused credit | |||||||||||
Sempra Energy(2) | $ | $ | $ | ||||||||||
Sempra Global(3) | ( | ) | |||||||||||
SDG&E(4) | ( | ) | |||||||||||
SoCalGas(4) | |||||||||||||
Total | $ | $ | ( | ) | $ |
(1) | Because the commercial paper programs are supported by these lines, we reflect the amount of commercial paper outstanding as a reduction to the available unused credit. |
(2) | The facility also provides for issuance of $ |
(3) | Commercial paper outstanding is before reductions of unamortized discount of $ |
(4) | The facility also provides for issuance of $ |
▪ | on or after October 1, 2024, at a redemption price equal to |
▪ | before October 1, 2024, if the U.S. federal tax law or regulations are amended or certain other events occur such that there is more than insubstantial risk that interest payable on the notes would no longer be deductible for federal income tax purposes, at a redemption price equal to |
▪ | before October 1, 2024, if a credit rating agency publicly changes certain equity credit methodology for securities such as these notes that results in a shortening of the length of time for equity credit initially assigned or lowers the equity credit initially assigned, at a redemption price equal to |
▪ | The California Utilities use natural gas and electricity derivatives, for the benefit of customers, with the objective of managing price risk and basis risks, and stabilizing and lowering natural gas and electricity costs. These derivatives include fixed price natural gas and electricity positions, options, and basis risk instruments, which are either exchange-traded or over-the-counter financial instruments, or bilateral physical transactions. This activity is governed by risk management and transacting activity plans that have been filed with and approved by the CPUC. Natural gas and electricity derivative activities are recorded as commodity costs that are offset by regulatory account balances and are recovered in rates. Net commodity cost impacts on the Condensed Consolidated Statements of Operations are reflected in Cost of Electric Fuel and Purchased Power or in Cost of Natural Gas. |
▪ | SDG&E is allocated and may purchase CRRs, which serve to reduce the regional electricity price volatility risk that may result from local transmission capacity constraints. Unrealized gains and losses do not impact earnings, as they are offset by regulatory account balances. Realized gains and losses associated with CRRs, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. |
▪ | Sempra Mexico and Sempra LNG may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: LNG, natural gas transportation and storage, and power generation. Gains and losses associated with undesignated derivatives are recognized in Energy-Related Businesses Revenues or in Energy-Related Businesses Cost of Sales on the Condensed Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. Sempra Mexico may also use natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its distribution operations. These derivatives, which are recorded as commodity costs that are offset by regulatory account balances and recovered in rates, are recognized in Cost of Natural Gas on the Condensed Consolidated Statements of Operations. |
▪ | From time to time, our various businesses, including the California Utilities, may use other energy derivatives to hedge exposures such as the price of vehicle fuel and GHG allowances. |
NET ENERGY DERIVATIVE VOLUMES | |||||||
(Quantities in millions) | |||||||
Commodity | Unit of measure | June 30, 2019 | December 31, 2018 | ||||
Sempra Energy Consolidated: | |||||||
Natural gas | MMBtu | ||||||
Electricity | MWh | ||||||
Congestion revenue rights | MWh | ||||||
SDG&E: | |||||||
Natural gas | MMBtu | ||||||
Electricity | MWh | ||||||
Congestion revenue rights | MWh |
INTEREST RATE DERIVATIVES | |||||||||||
(Dollars in millions) | |||||||||||
June 30, 2019 | December 31, 2018 | ||||||||||
Notional debt | Maturities | Notional debt | Maturities | ||||||||
Sempra Energy Consolidated: | |||||||||||
Cash flow hedges(1) | $ | 2019-2032 | $ | 2019-2032 | |||||||
SDG&E: | |||||||||||
Cash flow hedge(1) | 2019 | 2019 |
(1) | Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. In December 2018, OMEC LLC entered into a swaption with a notional amount of $ |
FOREIGN CURRENCY DERIVATIVES | |||||||||||
(Dollars in millions) | |||||||||||
June 30, 2019 | December 31, 2018 | ||||||||||
Notional amount | Maturities | Notional amount | Maturities | ||||||||
Sempra Energy Consolidated: | |||||||||||
Cross-currency swaps | $ | 2019-2023 | $ | 2019-2023 | |||||||
Other foreign currency derivatives | 2019-2020 | 2019-2020 |
DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||
(Dollars in millions) | |||||||||||||||
June 30, 2019 | |||||||||||||||
Current assets: Other(1) | Other assets: Sundry | Current liabilities: Other | Deferred credits and other liabilities: Deferred credits and other | ||||||||||||
Sempra Energy Consolidated: | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate and foreign exchange instruments(2) | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange instruments | |||||||||||||||
Commodity contracts not subject to rate recovery | ( | ) | ( | ) | |||||||||||
Associated offsetting commodity contracts | ( | ) | ( | ) | |||||||||||
Commodity contracts subject to rate recovery | ( | ) | ( | ) | |||||||||||
Associated offsetting commodity contracts | ( | ) | ( | ) | |||||||||||
Associated offsetting cash collateral | |||||||||||||||
Net amounts presented on the balance sheet | ( | ) | ( | ) | |||||||||||
Additional cash collateral for commodity contracts not subject to rate recovery | |||||||||||||||
Additional cash collateral for commodity contracts subject to rate recovery | |||||||||||||||
Total(3) | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
SDG&E: | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity contracts subject to rate recovery | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
Associated offsetting commodity contracts | ( | ) | ( | ) | |||||||||||
Associated offsetting cash collateral | |||||||||||||||
Net amounts presented on the balance sheet | ( | ) | ( | ) | |||||||||||
Additional cash collateral for commodity contracts subject to rate recovery | |||||||||||||||
Total(3) | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
SoCalGas: | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity contracts subject to rate recovery | $ | $ | $ | ( | ) | $ | |||||||||
Net amounts presented on the balance sheet | ( | ) | |||||||||||||
Additional cash collateral for commodity contracts subject to rate recovery | |||||||||||||||
Total | $ | $ | $ | ( | ) | $ |
DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||
(Dollars in millions) | |||||||||||||||
December 31, 2018 | |||||||||||||||
Current assets: Other(1) | Other assets: Sundry | Current liabilities: Other | Deferred credits and other liabilities: Deferred credits and other | ||||||||||||
Sempra Energy Consolidated: | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate and foreign exchange instruments(2) | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity contracts not subject to rate recovery | ( | ) | ( | ) | |||||||||||
Associated offsetting commodity contracts | ( | ) | ( | ) | |||||||||||
Commodity contracts subject to rate recovery | ( | ) | ( | ) | |||||||||||
Associated offsetting commodity contracts | ( | ) | ( | ) | |||||||||||
Associated offsetting cash collateral | |||||||||||||||
Net amounts presented on the balance sheet | ( | ) | ( | ) | |||||||||||
Additional cash collateral for commodity contracts not subject to rate recovery | |||||||||||||||
Additional cash collateral for commodity contracts subject to rate recovery | |||||||||||||||
Total(3) | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
SDG&E: | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate instruments(2) | $ | $ | $ | ( | ) | $ | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity contracts subject to rate recovery | ( | ) | ( | ) | |||||||||||
Associated offsetting commodity contracts | ( | ) | ( | ) | |||||||||||
Associated offsetting cash collateral | |||||||||||||||
Net amounts presented on the balance sheet | ( | ) | ( | ) | |||||||||||
Additional cash collateral for commodity contracts subject to rate recovery | |||||||||||||||
Total(3) | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
SoCalGas: | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity contracts subject to rate recovery | $ | $ | $ | ( | ) | $ | |||||||||
Net amounts presented on the balance sheet | ( | ) | |||||||||||||
Additional cash collateral for commodity contracts subject to rate recovery | |||||||||||||||
Total | $ | $ | $ | ( | ) | $ |
CASH FLOW HEDGE IMPACTS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Pretax (loss) gain recognized in OCI | Pretax (loss) gain reclassified from AOCI into earnings | ||||||||||||||||
Three months ended June 30, | Three months ended June 30, | ||||||||||||||||
2019 | 2018 | Location | 2019 | 2018 | |||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||
Interest rate and foreign exchange instruments(1) | $ | ( | ) | $ | ( | ) | Interest Expense | $ | $ | ( | ) | ||||||
Other Income (Expense), Net | ( | ) | |||||||||||||||
Interest rate instruments | — | — | Gain on Sale of Assets | ( | ) | ||||||||||||
Interest rate and foreign exchange instruments | ( | ) | Equity Earnings (Losses) | ( | ) | ||||||||||||
Foreign exchange instruments | ( | ) | Revenues: Energy- Related Businesses | ||||||||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||||
SDG&E: | |||||||||||||||||
Interest rate instruments(1) | $ | ( | ) | $ | Interest Expense | $ | ( | ) | $ | ( | ) | ||||||
Six months ended June 30, | Six months ended June 30, | ||||||||||||||||
2019 | 2018 | Location | 2019 | 2018 | |||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||
Interest rate and foreign exchange instruments(1) | $ | ( | ) | $ | Interest Expense | $ | ( | ) | $ | ||||||||
Other Income (Expense), Net | |||||||||||||||||
Interest rate instruments | — | — | Gain on Sale of Assets | ( | ) | ||||||||||||
Interest rate and foreign exchange instruments | ( | ) | Equity Earnings (Losses) | ( | ) | ( | ) | ||||||||||
Foreign exchange instruments | ( | ) | ( | ) | Revenues: Energy- Related Businesses | ( | ) | ||||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||||
SDG&E: | |||||||||||||||||
Interest rate instruments(1) | $ | ( | ) | $ | Interest Expense | $ | ( | ) | $ | ( | ) |
(1) | Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. |
UNDESIGNATED DERIVATIVE IMPACTS | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Pretax gain (loss) on derivatives recognized in earnings | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
Location | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||
Foreign exchange instruments | Other Income (Expense), Net | $ | $ | ( | ) | $ | $ | |||||||||
Commodity contracts not subject to rate recovery | Revenues: Energy-Related Businesses | ( | ) | |||||||||||||
Commodity contracts subject to rate recovery | Cost of Electric Fuel and Purchased Power | ( | ) | ( | ) | |||||||||||
Commodity contracts subject to rate recovery | Cost of Natural Gas | |||||||||||||||
Total | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||
SDG&E: | ||||||||||||||||
Commodity contracts subject to rate recovery | Cost of Electric Fuel and Purchased Power | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
SoCalGas: | ||||||||||||||||
Commodity contracts subject to rate recovery | Cost of Natural Gas | $ | $ | $ | $ |
▪ | Nuclear decommissioning trusts reflect the assets of SDG&E’s NDT, excluding cash balances. 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 derivatives 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 and long-term, fixed-price electricity positions at SDG&E, as we discuss below in “Level 3 Information.” |
▪ | Rabbi Trust investments include marketable securities 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). These investments in marketable securities were negligible at both June 30, 2019 and December 31, 2018. |
RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Fair value at June 30, 2019 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Nuclear decommissioning trusts: | |||||||||||||||
Equity securities | $ | $ | $ | $ | |||||||||||
Debt securities: | |||||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||||
U.S. government corporations and agencies | |||||||||||||||
Municipal bonds | |||||||||||||||
Other securities | |||||||||||||||
Total debt securities | |||||||||||||||
Total nuclear decommissioning trusts(1) | |||||||||||||||
Interest rate and foreign exchange instruments | |||||||||||||||
Commodity contracts not subject to rate recovery | |||||||||||||||
Effect of netting and allocation of collateral(2) | |||||||||||||||
Commodity contracts subject to rate recovery | |||||||||||||||
Effect of netting and allocation of collateral(2) | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
Liabilities: | |||||||||||||||
Interest rate and foreign exchange instruments | $ | $ | $ | $ | |||||||||||
Commodity contracts not subject to rate recovery | |||||||||||||||
Commodity contracts subject to rate recovery | |||||||||||||||
Effect of netting and allocation of collateral(2) | ( | ) | ( | ) | |||||||||||
Total | $ | $ | $ | $ | |||||||||||
Fair value at December 31, 2018 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Nuclear decommissioning trusts: | |||||||||||||||
Equity securities | $ | $ | $ | $ | |||||||||||
Debt securities: | |||||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||||
U.S. government corporations and agencies | |||||||||||||||
Municipal bonds | |||||||||||||||
Other securities | |||||||||||||||
Total debt securities | |||||||||||||||
Total nuclear decommissioning trusts(1) | |||||||||||||||
Interest rate and foreign exchange instruments | |||||||||||||||
Commodity contracts not subject to rate recovery | |||||||||||||||
Effect of netting and allocation of collateral(2) | |||||||||||||||
Commodity contracts subject to rate recovery | |||||||||||||||
Effect of netting and allocation of collateral(2) | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
Liabilities: | |||||||||||||||
Interest rate and foreign exchange instruments | $ | $ | $ | $ | |||||||||||
Commodity contracts not subject to rate recovery | |||||||||||||||
Commodity contracts subject to rate recovery | |||||||||||||||
Effect of netting and allocation of collateral(2) | ( | ) | ( | ) | |||||||||||
Total | $ | $ | $ | $ |
(1) | Excludes cash balances and cash equivalents. |
(2) | 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 – SDG&E | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Fair value at June 30, 2019 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Nuclear decommissioning trusts: | |||||||||||||||
Equity securities | $ | $ | $ | $ | |||||||||||
Debt securities: | |||||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||||
U.S. government corporations and agencies | |||||||||||||||
Municipal bonds | |||||||||||||||
Other securities | |||||||||||||||
Total debt securities | |||||||||||||||
Total nuclear decommissioning trusts(1) | |||||||||||||||
Commodity contracts subject to rate recovery | |||||||||||||||
Effect of netting and allocation of collateral(2) | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
Liabilities: | |||||||||||||||
Commodity contracts subject to rate recovery | $ | $ | $ | $ | |||||||||||
Effect of netting and allocation of collateral(2) | ( | ) | ( | ) | |||||||||||
Total | $ | $ | $ | $ | |||||||||||
Fair value at December 31, 2018 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Nuclear decommissioning trusts: | |||||||||||||||
Equity securities | $ | $ | $ | $ | |||||||||||
Debt securities: | |||||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||||
U.S. government corporations and agencies | |||||||||||||||
Municipal bonds | |||||||||||||||
Other securities | |||||||||||||||
Total debt securities | |||||||||||||||
Total nuclear decommissioning trusts(1) | |||||||||||||||
Commodity contracts subject to rate recovery | |||||||||||||||
Effect of netting and allocation of collateral(2) | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
Liabilities: | |||||||||||||||
Interest rate instruments | $ | $ | $ | $ | |||||||||||
Commodity contracts subject to rate recovery | |||||||||||||||
Effect of netting and allocation of collateral(2) | ( | ) | ( | ) | |||||||||||
Total | $ | $ | $ | $ |
(1) | Excludes cash balances and cash equivalents. |
(2) | 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 – SOCALGAS | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Fair value at June 30, 2019 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Commodity contracts subject to rate recovery | $ | $ | $ | $ | |||||||||||
Effect of netting and allocation of collateral(1) | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
Liabilities: | |||||||||||||||
Commodity contracts subject to rate recovery | $ | $ | $ | $ | |||||||||||
Total | $ | $ | $ | $ | |||||||||||
Fair value at December 31, 2018 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Commodity contracts subject to rate recovery | $ | $ | $ | $ | |||||||||||
Effect of netting and allocation of collateral(1) | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
Liabilities: | |||||||||||||||
Commodity contracts subject to rate recovery | $ | $ | $ | $ | |||||||||||
Total | $ | $ | $ | $ |
(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 RECONCILIATIONS(1) | |||||||
(Dollars in millions) | |||||||
Three months ended June 30, | |||||||
2019 | 2018 | ||||||
Balance at April 1 | $ | $ | ( | ) | |||
Realized and unrealized (losses) gains | ( | ) | |||||
Settlements | ( | ) | |||||
Balance at June 30 | $ | $ | ( | ) | |||
Change in unrealized (losses) gains relating to instruments still held at June 30 | $ | ( | ) | $ | |||
Six months ended June 30, | |||||||
2019 | 2018 | ||||||
Balance at January 1 | $ | $ | ( | ) | |||
Realized and unrealized (losses) gains | ( | ) | |||||
Allocated transmission instruments | |||||||
Settlements | ( | ) | |||||
Balance at June 30 | $ | $ | ( | ) | |||
Change in unrealized gains (losses) relating to instruments still held at June 30 | $ | $ | ( | ) |
(1) | Excludes the effect of the contractual ability to settle contracts under master netting agreements. |
CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS | ||||||||||
Settlement year | Price per MWh | Median price per MWh | ||||||||
2019 | $ | ( | ) | to | $ | $ | ( | ) | ||
2018 | ( | ) | to |
LONG-TERM, FIXED-PRICE ELECTRICITY POSITIONS PRICE INPUTS | ||||||||||
Settlement year | Price per MWh | Weighted-average price per MWh | ||||||||
2019 | $ | to | $ | $ | ||||||
2018 | to |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
June 30, 2019 | |||||||||||||||||||
Carrying amount | Fair value | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||||
Long-term amounts due from unconsolidated affiliates | $ | $ | $ | $ | $ | ||||||||||||||
Long-term amounts due to unconsolidated affiliates | |||||||||||||||||||
Total long-term debt(1)(2) | |||||||||||||||||||
SDG&E: | |||||||||||||||||||
Total long-term debt(2)(3) | $ | $ | $ | $ | $ | ||||||||||||||
SoCalGas: | |||||||||||||||||||
Total long-term debt(4) | $ | $ | $ | $ | $ | ||||||||||||||
December 31, 2018 | |||||||||||||||||||
Carrying amount | Fair value | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||||
Long-term amounts due from unconsolidated affiliates | $ | $ | $ | $ | $ | ||||||||||||||
Long-term amounts due to unconsolidated affiliates | |||||||||||||||||||
Total long-term debt(2)(5) | |||||||||||||||||||
SDG&E: | |||||||||||||||||||
Total long-term debt(2)(6) | $ | $ | $ | $ | $ | ||||||||||||||
SoCalGas: | |||||||||||||||||||
Total long-term debt(7) | $ | $ | $ | $ | $ |
(1) | Before reductions of unamortized discount and debt issuance costs of $ |
(2) | Level 3 instruments includes $ |
(3) | Before reductions of unamortized discount and debt issuance costs of $ |
(4) | Before reductions of unamortized discount and debt issuance costs of $ |
(5) | Before reductions of unamortized discount and debt issuance costs of $ |
(6) | Before reductions of unamortized discount and debt issuance costs of $ |
(7) | Before reductions of unamortized discount and debt issuance costs of $ |
NUCLEAR DECOMMISSIONING TRUSTS | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||
At June 30, 2019: | |||||||||||||||
Debt securities: | |||||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||||
U.S. government corporations and agencies(1) | $ | $ | $ | $ | |||||||||||
Municipal bonds(2) | |||||||||||||||
Other securities(3) | ( | ) | |||||||||||||
Total debt securities | ( | ) | |||||||||||||
Equity securities | ( | ) | |||||||||||||
Cash and cash equivalents | |||||||||||||||
Total | $ | $ | $ | ( | ) | $ | |||||||||
At December 31, 2018: | |||||||||||||||
Debt securities: | |||||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||||
U.S. government corporations and agencies | $ | $ | $ | $ | |||||||||||
Municipal bonds | ( | ) | |||||||||||||
Other securities | ( | ) | |||||||||||||
Total debt securities | ( | ) | |||||||||||||
Equity securities | ( | ) | |||||||||||||
Cash and cash equivalents | |||||||||||||||
Total | $ | $ | $ | ( | ) | $ |
(1) | Maturity dates are 2020-2049. |
(2) | Maturity dates are 2020-2056. |
(3) | Maturity dates are 2019-2064. |
SALES OF SECURITIES IN THE NDT | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Proceeds from sales | $ | $ | $ | $ | |||||||||||
Gross realized gains | |||||||||||||||
Gross realized losses | ( | ) | ( | ) | ( | ) | ( | ) |
LESSEE INFORMATION ON THE CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(Dollars in millions) | |||||||||||
June 30, 2019 | |||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||
Right-of-use assets: | |||||||||||
Operating leases: | |||||||||||
Right-of-use assets | $ | $ | $ | ||||||||
Finance leases: | |||||||||||
Property, plant and equipment | |||||||||||
Accumulated depreciation | ( | ) | ( | ) | ( | ) | |||||
Property, plant and equipment, net | |||||||||||
Total right-of-use assets | $ | $ | $ | ||||||||
Lease liabilities: | |||||||||||
Operating leases: | |||||||||||
Other current liabilities | $ | $ | $ | ||||||||
Deferred credits and other | |||||||||||
Finance leases: | |||||||||||
Current portion of long-term debt and finance leases | |||||||||||
Long-term debt and finance leases | |||||||||||
Total lease liabilities | $ | $ | $ | ||||||||
Weighted-average remaining lease term (in years): | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted-average discount rate: | |||||||||||
Operating leases | % | % | % | ||||||||
Finance leases | % | % | % |
LESSEE INFORMATION ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(1) | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Three months ended June 30, 2019 | Six months ended June 30, 2019 | ||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | Sempra Energy Consolidated | SDG&E | SoCalGas | ||||||||||||||||||
Operating lease costs | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Finance lease costs: | |||||||||||||||||||||||
Amortization of ROU assets | |||||||||||||||||||||||
Interest on lease liabilities | |||||||||||||||||||||||
Total finance lease costs | |||||||||||||||||||||||
Short-term lease costs(2) | |||||||||||||||||||||||
Variable lease costs(2) | |||||||||||||||||||||||
Total lease costs | $ | $ | $ | $ | $ | $ |
(1) | Includes costs capitalized in PP&E. |
(2) | Short-term leases with variable lease costs are recorded and presented as variable lease costs. |
LESSEE INFORMATION ON THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(Dollars in millions) | |||||||||||
Six months ended June 30, 2019 | |||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||
Operating activities: | |||||||||||
Cash paid for operating leases | $ | $ | $ | ||||||||
Cash paid for finance leases | |||||||||||
Financing activities: | |||||||||||
Cash paid for finance leases | |||||||||||
Increase in operating lease obligations for right-of-use assets | |||||||||||
Increase in finance lease obligations for investment in PP&E |
LESSEE MATURITY ANALYSIS OF LIABILITIES | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||||||||
Operating leases | Finance leases | Operating leases | Finance leases | Operating leases | Finance leases | ||||||||||||||||||
2019 (excluding first six months of 2019) | $ | $ | $ | $ | $ | $ | |||||||||||||||||
2020 | |||||||||||||||||||||||
2021 | |||||||||||||||||||||||
2022 | |||||||||||||||||||||||
2023 | |||||||||||||||||||||||
Thereafter | |||||||||||||||||||||||
Total undiscounted lease payments | |||||||||||||||||||||||
Less: imputed interest | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Total lease liabilities | |||||||||||||||||||||||
Less: current lease liabilities | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Long-term lease liabilities | $ | $ | $ | $ | $ | $ |
FUTURE MINIMUM LEASE PAYMENTS | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||||||||||||
Build-to-suit lease | Operating leases | Capital leases | Operating leases | Capital leases | Operating leases | Capital leases | |||||||||||||||||||||
2019 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
2020 | |||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||
2023 | |||||||||||||||||||||||||||
Thereafter | |||||||||||||||||||||||||||
Total undiscounted lease payments | $ | $ | $ | $ | |||||||||||||||||||||||
Less: estimated executory costs | ( | ) | ( | ) | |||||||||||||||||||||||
Less: imputed interest | ( | ) | ( | ) | |||||||||||||||||||||||
Total future minimum lease payments | $ | $ | $ |
LESSOR INFORMATION – SEMPRA ENERGY | |||
(Dollars in millions) | |||
June 30, 2019 | |||
Assets subject to operating leases: | |||
Property, plant and equipment(1) | $ | ||
Accumulated depreciation | ( | ) | |
Property, plant and equipment, net | $ | ||
Maturity analysis of operating lease payments: | |||
2019 (excluding first six months of 2019) | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total undiscounted cash flows | $ |
(1) | Included in Machinery and Equipment — Pipelines and Storage within the major functional categories of PP&E. |
LESSOR INFORMATION ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – SEMPRA ENERGY | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Minimum lease payments | $ | $ | $ | $ | |||||||||||
Variable lease payments | |||||||||||||||
Total revenues from operating leases | $ | $ | $ | $ | |||||||||||
Depreciation expense | $ | $ | $ | $ |
▪ | SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County. |
▪ | SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California. |
▪ | Sempra Texas Utilities holds our investment in Oncor Holdings, which owns an |
▪ | Sempra Mexico develops, owns and operates, or holds interests in, natural gas, electric, LNG, LPG, ethane and liquid fuels infrastructure, and has marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico. |
▪ | Sempra LNG (previously known as Sempra LNG & Midstream) develops, owns and operates, or holds interests in, terminals for the import and export of LNG and sale of natural gas, natural gas pipelines and marketing operations, all within the U.S. and Mexico. In February 2019, we completed the sale of our natural gas storage assets at Mississippi Hub and Bay Gas. |
SEGMENT INFORMATION | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
REVENUES | |||||||||||||||
SDG&E | $ | $ | $ | $ | |||||||||||
SoCalGas | |||||||||||||||
Sempra Mexico | |||||||||||||||
Sempra Renewables | |||||||||||||||
Sempra LNG | |||||||||||||||
Adjustments and eliminations | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Intersegment revenues(1) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total | $ | $ | $ | $ | |||||||||||
INTEREST EXPENSE | |||||||||||||||
SDG&E(2) | $ | $ | $ | $ | |||||||||||
SoCalGas | |||||||||||||||
Sempra Mexico | |||||||||||||||
Sempra Renewables | |||||||||||||||
Sempra LNG | |||||||||||||||
All other | |||||||||||||||
Intercompany eliminations | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total | $ | $ | $ | $ | |||||||||||
INTEREST INCOME | |||||||||||||||
SDG&E | $ | $ | $ | $ | |||||||||||
SoCalGas | |||||||||||||||
Sempra Mexico | |||||||||||||||
Sempra Renewables | |||||||||||||||
Sempra LNG | |||||||||||||||
All other | ( | ) | |||||||||||||
Intercompany eliminations | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total | $ | $ | $ | $ | |||||||||||
DEPRECIATION AND AMORTIZATION | |||||||||||||||
SDG&E | $ | $ | $ | $ | |||||||||||
SoCalGas | |||||||||||||||
Sempra Mexico | |||||||||||||||
Sempra Renewables | |||||||||||||||
Sempra LNG | |||||||||||||||
All other | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
INCOME TAX EXPENSE (BENEFIT) | |||||||||||||||
SDG&E | $ | $ | $ | $ | |||||||||||
SoCalGas | ( | ) | |||||||||||||
Sempra Mexico | ( | ) | |||||||||||||
Sempra Renewables | ( | ) | ( | ) | |||||||||||
Sempra LNG | ( | ) | ( | ) | |||||||||||
All other | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
EQUITY EARNINGS (LOSSES) | |||||||||||||||
Equity earnings (losses), before income tax: | |||||||||||||||
Sempra Texas Utilities | $ | $ | $ | $ | |||||||||||
Sempra Renewables | ( | ) | ( | ) | |||||||||||
Sempra LNG | |||||||||||||||
All other | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
( | ) | ( | ) | ||||||||||||
Equity earnings, net of income tax: | |||||||||||||||
Sempra Texas Utilities | |||||||||||||||
Sempra Mexico | |||||||||||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) |
SEGMENT INFORMATION (CONTINUED) | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | |||||||||||||||
SDG&E | $ | $ | $ | $ | |||||||||||
SoCalGas | |||||||||||||||
Sempra Texas Utilities | |||||||||||||||
Sempra Mexico | |||||||||||||||
Sempra Renewables | ( | ) | ( | ) | |||||||||||
Sempra LNG | ( | ) | ( | ) | |||||||||||
Discontinued operations | |||||||||||||||
All other | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | |||||||||||||||
SDG&E | $ | $ | |||||||||||||
SoCalGas | |||||||||||||||
Sempra Mexico | |||||||||||||||
Sempra Renewables | |||||||||||||||
Sempra LNG | |||||||||||||||
All other | |||||||||||||||
Total | $ | $ | |||||||||||||
June 30, 2019 | December 31, 2018 | ||||||||||||||
ASSETS | |||||||||||||||
SDG&E | $ | $ | |||||||||||||
SoCalGas | |||||||||||||||
Sempra Texas Utilities | |||||||||||||||
Sempra Mexico | |||||||||||||||
Sempra Renewables | |||||||||||||||
Sempra LNG | |||||||||||||||
Discontinued operations | |||||||||||||||
All other | |||||||||||||||
Intersegment receivables | ( | ) | ( | ) | |||||||||||
Total | $ | $ | |||||||||||||
EQUITY METHOD AND OTHER INVESTMENTS | |||||||||||||||
Sempra Texas Utilities | $ | $ | |||||||||||||
Sempra Mexico | |||||||||||||||
Sempra Renewables | |||||||||||||||
Sempra LNG | |||||||||||||||
All other | |||||||||||||||
Total | $ | $ |
(1) | Revenues for reportable segments include intersegment revenues of $ |
(2) | As we discuss in Note 2, in accordance with adoption of the lease standard on January 1, 2019, on a prospective basis, a significant portion of finance lease costs for PPAs that have historically been presented in Cost of Electric Fuel and Purchased Power are now presented in Interest Expense. |
▪ | Sempra Energy and its consolidated entities |
▪ | SDG&E and its consolidated VIE |
▪ | SoCalGas |
▪ | the Condensed Consolidated Financial Statements and related Notes of Sempra Energy and its subsidiaries and VIEs; |
▪ | the Condensed Consolidated Financial Statements and related Notes of SDG&E and its VIE; and |
▪ | the Condensed Financial Statements and related Notes of SoCalGas. |
▪ | Overall results of our operations |
▪ | Segment results |
▪ | Adjusted earnings and adjusted EPS |
▪ | Significant changes in revenues, costs and earnings between periods |
▪ | Impact of foreign currency and inflation rates on our results of operations |
SEMPRA ENERGY EARNINGS (LOSSES) BY SEGMENT | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
SDG&E | $ | 143 | $ | 146 | $ | 319 | $ | 316 | |||||||
SoCalGas | 30 | 33 | 294 | 258 | |||||||||||
Sempra Texas Utilities | 113 | 114 | 207 | 129 | |||||||||||
Sempra Mexico | 73 | 97 | 130 | 117 | |||||||||||
Sempra Renewables | 46 | (109 | ) | 59 | (88 | ) | |||||||||
Sempra LNG | 6 | (764 | ) | 11 | (780 | ) | |||||||||
Parent and other(1) | (127 | ) | (126 | ) | (244 | ) | (235 | ) | |||||||
Discontinued operations | 70 | 48 | 19 | 69 | |||||||||||
Earnings (losses) attributable to common shares | $ | 354 | $ | (561 | ) | $ | 795 | $ | (214 | ) |
(1) | Includes after-tax interest expense ($80 million and $100 million for the three months ended June 30, 2019 and 2018, respectively, and $159 million and $181 million for the six months ended June 30, 2019 and 2018, respectively), intercompany eliminations recorded in consolidation and certain corporate costs. |
▪ | $15 million lower CPUC base operating margin in 2019 due to the delay in the 2019 GRC decision while absorbing higher operating costs, including higher wildfire insurance premiums; offset by |
▪ | $12 million higher earnings from electric transmission operations. |
▪ | $31 million income tax benefit from the release of a regulatory liability established in connection with 2017 tax reform for excess deferred income tax balances that the CPUC directed be allocated to shareholders in a January 2019 decision; and |
▪ | $21 million higher earnings from electric transmission operations; offset by |
▪ | $42 million lower CPUC base operating margin in 2019 due to the delay in the 2019 GRC decision while absorbing higher operating costs, including higher wildfire insurance premiums; and |
▪ | $7 million higher net interest expense. |
▪ | $11 million lower CPUC base operating margin in 2019 due to the delay in the 2019 GRC decision while absorbing higher operating costs; |
▪ | $6 million higher net interest expense; and |
▪ | $5 million lower AFUDC related to equity; offset by |
▪ | $22 million from impacts associated with Aliso Canyon natural gas storage facility litigation in 2018. |
▪ | $38 million income tax benefit from the impact of the January 2019 CPUC decision allocating certain excess deferred income tax balances to shareholders; |
▪ | $22 million from impacts associated with Aliso Canyon natural gas storage facility litigation in 2018; and |
▪ | $5 million higher regulatory awards; offset by |
▪ | $11 million higher net interest expense; |
▪ | $11 million lower CPUC base operating margin in 2019 due to the delay in the 2019 GRC decision while absorbing higher operating costs; and |
▪ | $8 million in penalties related to the SoCalGas billing practices OII that we discuss in Note 4 of the Notes to Condensed Consolidated Financial Statements. |
▪ | $78 million unfavorable impact from foreign currency and inflation effects net of foreign currency derivatives effects, comprised of: |
◦ | in 2019, $20 million unfavorable foreign currency and inflation effects, offset by a $7 million gain from foreign currency derivatives, and |
◦ | in 2018, $91 million favorable foreign currency and inflation effects, offset by a $26 million loss from foreign currency derivatives. We discuss these effects below in “Impact of Foreign Currency and Inflation Rates on Results of Operations;” offset by |
▪ | $30 million lower income tax expense in 2019 primarily from the outside basis differences in JV investments and a two-year tax abatement that expires in 2020; and |
▪ | $36 million earnings attributable to NCI at IEnova in 2019 compared to $64 million earnings in 2018. |
▪ | $38 million lower income tax expense in 2019 primarily from the outside basis differences in JV investments and a two-year tax abatement that expires in 2020; and |
▪ | $12 million improved operating results at TdM mainly due to higher power prices and volumes; offset by |
▪ | $33 million unfavorable impact from foreign currency and inflation effects net of foreign currency derivatives effects, comprised of: |
◦ | in 2019, $45 million unfavorable foreign currency and inflation effects, offset by a $14 million gain from foreign currency derivatives, and |
◦ | in 2018, $4 million unfavorable foreign currency and inflation effects, offset by a $6 million gain from foreign currency derivatives. |
▪ | $145 million other-than-temporary impairment of certain U.S. wind equity method investments in 2018; and |
▪ | $45 million gain on sale of wind assets in 2019; offset by |
▪ | lower earnings from assets sold in December 2018 and April 2019, net of lower general and administrative and other costs due to the wind-down of this business. |
▪ | $801 million impairment of certain non-utility natural gas storage assets in the southeast U.S. in 2018; and |
▪ | $19 million higher earnings from our marketing operations primarily driven by optimization of natural gas transport contracts; offset by |
▪ | $46 million losses attributable to NCI in 2018 related to the impairment. |
▪ | $801 million impairment of certain non-utility natural gas storage assets in 2018; |
▪ | $34 million higher earnings from our marketing operations primarily driven by optimization of natural gas transport contracts; and |
▪ | $9 million unfavorable adjustment in 2018 to TCJA provisional amounts recorded in 2017 related to the remeasurement of deferred income taxes; offset by |
▪ | $46 million losses attributable to NCI in 2018 related to the impairment. |
▪ | $16 million primarily related to settlement charges from our non-qualified pension plan; and |
▪ | $10 million increase in mandatory convertible preferred stock dividends primarily from the issuance of series B preferred stock in July 2018; offset by |
▪ | $11 million lower net interest expense; and |
▪ | $8 million higher investment gains in 2019 on dedicated assets in support of our employee non-qualified benefit plan obligations, net of deferred compensation expenses. |
▪ | $18 million increase in mandatory convertible preferred stock dividends primarily from the issuance of series B preferred stock in July 2018; |
▪ | $16 million primarily related to settlement charges from our non-qualified pension plan; and |
▪ | $6 million higher net interest expense; offset by |
▪ | $27 million higher investment gains in 2019 on dedicated assets in support of our employee non-qualified benefit plan obligations, net of deferred compensation expenses; and |
▪ | $10 million income tax benefit in 2019 to reduce a valuation allowance against certain NOL carryforwards as a result of our decision to sell our South American businesses. |
▪ | $96 million higher income tax expense primarily due to: |
◦ | $103 million income tax expense in 2019 from outside basis differences in our South American businesses primarily related to the change in our indefinite reinvestment assertion from our decision on January 25, 2019 to hold those businesses for sale, and |
◦ | $20 million income tax expense related to the increase in outside basis differences from 2019 earnings since January 25, 2019, offset by |
◦ | $16 million income tax expense in 2018 to adjust TCJA provisional amounts recorded in 2017 primarily related to withholding tax on our expected future repatriation of foreign undistributed earnings; offset by |
▪ | $51 million higher earnings from South American operations primarily from higher rates, lower cost of purchased power at Peru, and including $16 million lower depreciation expense due to assets classified as held for sale. |
SEMPRA ENERGY ADJUSTED EARNINGS AND ADJUSTED EPS | |||||||||||||||||||
(Dollars in millions, except per share amounts; shares in thousands) | |||||||||||||||||||
Pretax amount | Income tax expense (benefit)(1) | Non-controlling interests | Earnings (losses) | Diluted EPS | |||||||||||||||
Three months ended June 30, 2019 | |||||||||||||||||||
Sempra Energy GAAP Earnings | $ | 354 | $ | 1.26 | |||||||||||||||
Excluded item: | |||||||||||||||||||
Gain on sale of certain Sempra Renewables assets | $ | (61 | ) | $ | 16 | $ | — | (45 | ) | (0.16 | ) | ||||||||
Sempra Energy Adjusted Earnings | $ | 309 | $ | 1.10 | |||||||||||||||
Weighted-average common shares outstanding, diluted – GAAP | 279,619 | ||||||||||||||||||
Three months ended June 30, 2018 | |||||||||||||||||||
Sempra Energy GAAP Losses | $ | (561 | ) | $ | (2.11 | ) | |||||||||||||
Impact of dilutive shares excluded from GAAP EPS(2) | 0.02 | ||||||||||||||||||
Excluded items: | |||||||||||||||||||
Impairment of non-utility natural gas storage assets | $ | 1,300 | $ | (499 | ) | $ | (46 | ) | 755 | 2.82 | |||||||||
Impairment of U.S. wind equity method investments | 200 | (55 | ) | — | 145 | 0.54 | |||||||||||||
Impacts associated with Aliso Canyon litigation | 1 | 21 | — | 22 | 0.08 | ||||||||||||||
Sempra Energy Adjusted Earnings | $ | 361 | $ | 1.35 | |||||||||||||||
Weighted-average common shares outstanding, diluted – GAAP(2) | 267,536 | ||||||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||
Sempra Energy GAAP Earnings | $ | 795 | $ | 2.85 | |||||||||||||||
Excluded items: | |||||||||||||||||||
Gain on sale of certain Sempra Renewables assets | $ | (61 | ) | $ | 16 | $ | — | (45 | ) | (0.16 | ) | ||||||||
Associated with holding the South American businesses for sale: | |||||||||||||||||||
Change in indefinite reinvestment assertion of basis differences in discontinued operations | — | 103 | — | 103 | 0.37 | ||||||||||||||
Reduction in tax valuation allowance against certain NOL carryforwards | — | (10 | ) | — | (10 | ) | (0.03 | ) | |||||||||||
Sempra Energy Adjusted Earnings | $ | 843 | $ | 3.03 | |||||||||||||||
Weighted-average common shares outstanding, diluted – GAAP | 278,424 | ||||||||||||||||||
Six months ended June 30, 2018 | |||||||||||||||||||
Sempra Energy GAAP Losses | $ | (214 | ) | $ | (0.82 | ) | |||||||||||||
Impact of dilutive shares excluded from GAAP EPS(2) | 0.01 | ||||||||||||||||||
Excluded items: | |||||||||||||||||||
Impairment of non-utility natural gas storage assets | $ | 1,300 | $ | (499 | ) | $ | (46 | ) | 755 | 2.86 | |||||||||
Impairment of U.S. wind equity method investments | 200 | (55 | ) | — | 145 | 0.55 | |||||||||||||
Impacts associated with Aliso Canyon litigation | 1 | 21 | — | 22 | 0.08 | ||||||||||||||
Impact from the TCJA | — | 25 | — | 25 | 0.10 | ||||||||||||||
Sempra Energy Adjusted Earnings | $ | 733 | $ | 2.78 | |||||||||||||||
Weighted-average common shares outstanding, diluted – GAAP(2) | 263,584 |
(1) | Except for adjustments that are solely income tax and tax related to outside basis differences, income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. |
(2) | In both the three months and six months ended June 30, 2018, total weighted-average potentially dilutive securities of 1.7 million were not included in the computation of GAAP losses per common share since to do so would have decreased the loss per share. |
SOCALGAS ADJUSTED EARNINGS | |||||||||||
(Dollars in millions) | |||||||||||
Pretax amount | Income tax expense(1) | Earnings | |||||||||
Three months ended June 30, 2018 | |||||||||||
SoCalGas GAAP Earnings | $ | 33 | |||||||||
Excluded item: | |||||||||||
Impacts associated with Aliso Canyon litigation | $ | 1 | $ | 21 | 22 | ||||||
SoCalGas Adjusted Earnings | $ | 55 | |||||||||
Six months ended June 30, 2018 | |||||||||||
SoCalGas GAAP Earnings | $ | 258 | |||||||||
Excluded item: | |||||||||||
Impacts associated with Aliso Canyon litigation | $ | 1 | $ | 21 | 22 | ||||||
SoCalGas Adjusted Earnings | $ | 280 |
(1) | Except for adjustments that are solely income tax, income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. |
▪ | permits the cost of natural gas purchased for core customers (primarily residential and small commercial and industrial customers) to be passed through to customers in rates substantially as incurred. However, SoCalGas’ GCIM provides SoCalGas the opportunity to share in the savings and/or costs from buying natural gas for its core customers at prices below or above monthly market-based benchmarks. This mechanism permits full recovery of costs incurred when average purchase costs are within a price range around the benchmark price. Any higher costs incurred or savings realized outside this range are shared between the core customers and SoCalGas. We provide further discussion in Note 3 of the Notes to Condensed Consolidated Financial Statements herein and in “Item 1. Business – Ratemaking Mechanisms” in the Annual Report. |
▪ | permits SDG&E to recover the actual cost incurred to generate or procure electricity based on annual estimates of the cost of electricity supplied to customers. The differences in cost between estimates and actual are recovered or refunded in subsequent periods through rates. |
▪ | permits the California Utilities to recover certain expenses for programs authorized by the CPUC, or “refundable programs.” |
UTILITIES REVENUES AND COST OF SALES | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Natural gas revenues: | ||||||||||||||||
SoCalGas | $ | 806 | $ | 772 | $ | 2,167 | $ | 1,898 | ||||||||
SDG&E | 121 | 113 | 326 | 284 | ||||||||||||
Sempra Mexico | 15 | 13 | 42 | 41 | ||||||||||||
Eliminations and adjustments | (19 | ) | (16 | ) | (36 | ) | (33 | ) | ||||||||
Total | 923 | 882 | 2,499 | 2,190 | ||||||||||||
Electric revenues: | ||||||||||||||||
SDG&E | 973 | 938 | 1,913 | 1,822 | ||||||||||||
Eliminations and adjustments | (1 | ) | — | (2 | ) | (2 | ) | |||||||||
Total | 972 | 938 | 1,911 | 1,820 | ||||||||||||
Total utilities revenues | $ | 1,895 | $ | 1,820 | $ | 4,410 | $ | 4,010 | ||||||||
Cost of natural gas: | ||||||||||||||||
SoCalGas | $ | 104 | $ | 150 | $ | 559 | $ | 439 | ||||||||
SDG&E | 34 | 30 | 113 | 80 | ||||||||||||
Sempra Mexico | 3 | 2 | 8 | 15 | ||||||||||||
Eliminations and adjustments | (5 | ) | (3 | ) | (13 | ) | (7 | ) | ||||||||
Total | $ | 136 | $ | 179 | $ | 667 | $ | 527 | ||||||||
Cost of electric fuel and purchased power: | ||||||||||||||||
SDG&E | $ | 265 | $ | 323 | $ | 523 | $ | 597 | ||||||||
Eliminations and adjustments | (2 | ) | (3 | ) | (4 | ) | (6 | ) | ||||||||
Total | $ | 263 | $ | 320 | $ | 519 | $ | 591 |
CALIFORNIA UTILITIES AVERAGE COST OF NATURAL GAS | |||||||||||||||
(Dollars per thousand cubic feet) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
SoCalGas | $ | 1.65 | $ | 2.34 | $ | 3.09 | $ | 2.70 | |||||||
SDG&E | 3.36 | 2.99 | 4.12 | 3.31 |
▪ | $34 million increase at SoCalGas, which included: |
◦ | $54 million higher recovery of costs associated with CPUC-authorized refundable programs, which revenues are offset in O&M, and |
◦ | $15 million higher net revenues from capital projects, offset by |
◦ | $46 million decrease in cost of natural gas sold, which we discuss below; and |
▪ | $8 million increase at SDG&E, including a $4 million increase in cost of natural gas sold, which we discuss below. |
▪ | $46 million decrease at SoCalGas primarily due to lower average natural gas prices; offset by |
▪ | $4 million increase at SDG&E due to higher average natural gas prices. |
▪ | $269 million increase at SoCalGas, which included: |
◦ | $120 million increase in cost of natural gas sold, which we discuss below, |
◦ | $63 million higher recovery of costs associated with CPUC-authorized refundable programs, which revenues are offset in O&M, |
◦ | $32 million higher net revenues from capital projects, |
◦ | $14 million lower non-service component of net periodic benefit credit in 2019, which fully offsets in Other Income (Expense), Net, |
◦ | $9 million decrease in charges in 2019 associated with tracking the income tax benefit from flow-through items in relation to forecasted amounts in the 2016 GRC FD, and |
◦ | $7 million GCIM award approved by the CPUC in February 2019; and |
▪ | $42 million increase at SDG&E primarily due to an increase in cost of natural gas sold, which we discuss below. |
▪ | $120 million increase at SoCalGas, comprising of $72 million due to higher average natural gas prices and $48 million from higher volumes driven by weather; and |
▪ | $33 million increase at SDG&E, including $22 million from higher average natural gas prices and $11 million from higher volumes driven by weather. |
▪ | $23 million higher revenues from transmission operations; and |
▪ | $17 million higher recovery of costs associated with CPUC-authorized refundable programs, which revenues are offset in O&M. |
▪ | $50 million of finance lease costs for PPAs in 2018. Similar amounts are now included in Interest Expense and Depreciation and Amortization Expense as a result of the 2019 adoption of the lease standard, which we discuss in Note 2 of the Notes to Condensed Consolidated Financial Statements; and |
▪ | $8 million lower cost of electric fuel and purchased power primarily due to lower electricity market costs, offset by an additional capacity contract. |
▪ | $44 million higher revenues from transmission operations; |
▪ | $30 million higher recovery of costs associated with CPUC-authorized refundable programs, which revenues are offset in O&M; and |
▪ | $27 million higher cost of electric fuel and purchased power, which we discuss below. |
▪ | $101 million of finance lease costs for PPAs in 2018. Similar amounts are now included in Interest Expense and Depreciation and Amortization Expense as a result of the 2019 adoption of the lease standard; offset by |
▪ | $27 million higher cost of electric fuel and purchased power primarily due to higher electricity market costs and an additional capacity contract. |
ENERGY-RELATED BUSINESSES: REVENUES AND COST OF SALES | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
REVENUES | ||||||||||||||||
Sempra Mexico | $ | 303 | $ | 297 | $ | 659 | $ | 577 | ||||||||
Sempra Renewables | 3 | 40 | 10 | 65 | ||||||||||||
Sempra LNG | 86 | 79 | 227 | 183 | ||||||||||||
Eliminations and adjustments | (57 | ) | (61 | ) | (178 | ) | (124 | ) | ||||||||
Total revenues | $ | 335 | $ | 355 | $ | 718 | $ | 701 | ||||||||
COST OF SALES(1) | ||||||||||||||||
Sempra Mexico | $ | 64 | $ | 66 | $ | 185 | $ | 127 | ||||||||
Sempra LNG | 54 | 59 | 157 | 129 | ||||||||||||
Eliminations and adjustments | (55 | ) | (55 | ) | (171 | ) | (117 | ) | ||||||||
Total cost of sales | $ | 63 | $ | 70 | $ | 171 | $ | 139 |
(1) | Excludes depreciation and amortization, which are presented separately on the Sempra Energy Condensed Consolidated Statements of Operations. |
▪ | $37 million decrease at Sempra Renewables primarily due to the sale of assets in December 2018 and April 2019; offset by |
▪ | $7 million increase at Sempra LNG primarily from natural gas marketing activities due to optimization of natural gas transport contracts, net of a decrease due to the sale of storage assets in February 2019. |
▪ | $82 million increase at Sempra Mexico primarily due to: |
◦ | $50 million from the marketing business, primarily from higher natural gas prices and volumes, including higher volumes due to new regulations that went into effect on March 1, 2018 that require high consumption end users (previously serviced by Ecogas and other natural gas utilities) to procure their natural gas needs from natural gas marketers, including Sempra Mexico’s marketing business, and |
◦ | $20 million at TdM due to higher prices and volumes; and |
▪ | $44 million increase at Sempra LNG primarily due to: |
◦ | $48 million from natural gas marketing activities due to optimization of natural gas transport contracts, and |
◦ | $30 million higher natural gas sales to Sempra Mexico due to higher natural gas prices and volumes, offset by |
◦ | $24 million lower natural gas storage revenues primarily due to the sale of storage assets in February 2019, and |
◦ | $12 million from LNG sales to Cameron LNG JV in January 2018; offset by |
▪ | $55 million decrease at Sempra Renewables primarily due to the sale of assets in December 2018 and April 2019; and |
▪ | $54 million primarily from higher intercompany eliminations associated with sales between Sempra LNG and Sempra Mexico. |
▪ | $58 million increase at Sempra Mexico mainly associated with higher revenues from the marketing business as a result of higher natural gas prices and volumes, including higher volumes due to new regulations that went into effect in 2018. The increase at Sempra Mexico was also due to higher prices and volumes at TdM; and |
▪ | $28 million increase at Sempra LNG mainly from natural gas marketing activities primarily from higher natural gas purchases; offset by |
▪ | $54 million from higher intercompany eliminations associated with sales between Sempra LNG and Sempra Mexico. |
▪ | $72 million increase at SoCalGas, which included: |
◦ | $54 million higher expenses associated with CPUC-authorized refundable programs for which costs incurred are recovered in revenue (refundable program expenses), and |
◦ | $13 million higher non-refundable operating costs, including higher insurance and administrative and support costs; and |
▪ | $25 million increase at SDG&E, which included: |
◦ | $20 million higher expenses associated with CPUC-authorized refundable programs, and |
◦ | $8 million higher non-refundable operating costs, including wildfire insurance premiums and administrative and support costs; offset by |
▪ | $14 million decrease at Sempra Renewables primarily due to lower general and administrative and other costs due to the wind-down of the business. |
▪ | $98 million increase at SoCalGas, which included: |
◦ | $63 million higher expenses associated with CPUC-authorized refundable programs, and |
◦ | $30 million higher non-refundable operating costs, including weather related impacts, higher insurance and administrative and support costs; |
▪ | $63 million increase at SDG&E, which included: |
◦ | $36 million higher expenses associated with CPUC-authorized refundable programs, and |
◦ | $24 million higher non-refundable operating costs, including wildfire insurance premiums and administrative and support costs; |
▪ | $20 million increase at Sempra Mexico primarily due to operating lease costs and expenses associated with growth in the business; and |
▪ | $16 million increase at Parent and other primarily from higher deferred compensation expenses; offset by |
▪ | $23 million decrease at Sempra Renewables primarily due to lower general and administrative and other costs due to the wind-down of the business. |
▪ | $15 million net gains in 2019 from interest rate and foreign exchange instruments and foreign currency transactions compared to $97 million net losses for the same period in 2018 primarily due to: |
◦ | $7 million foreign currency gains in 2019 compared to $47 million foreign currency losses in 2018 on a Mexican peso-denominated loan to the IMG JV, which is offset in Equity Earnings (Losses), and |
◦ | $9 million gains in 2019 compared to $37 million losses in 2018 on foreign currency derivatives as a result of fluctuation of the Mexican peso in 2019; offset by |
▪ | $30 million non-service component of net periodic benefit cost in 2019 compared to an $8 million credit in 2018, including $22 million settlement charges in 2019 for lump sum payments from our non-qualified pension plan. |
▪ | $35 million net gains in 2019 from interest rate and foreign exchange instruments and foreign currency transactions compared to $5 million net losses for the same period in 2018 primarily due to: |
◦ | $17 million foreign currency gains in 2019 compared to $8 million foreign currency losses in 2018 on a Mexican peso-denominated loan to the IMG JV, which is offset in Equity Earnings (Losses), and |
◦ | $12 million higher gains on foreign currency derivatives as a result of fluctuation of the Mexican peso; and |
▪ | $32 million higher investment gains in 2019 on dedicated assets in support of our executive retirement and deferred compensation plans; offset by |
▪ | $6 million non-service component of net periodic benefit cost in 2019 compared to a $40 million credit in 2018, including $22 million settlement charges in 2019 for lump sum payments from our non-qualified pension plan; |
▪ | $12 million decrease in equity-related AFUDC, including $7 million at SDG&E and $6 million at SoCalGas; and |
▪ | $8 million in penalties related to the SoCalGas billing practices OII. |
INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Sempra Energy Consolidated: | |||||||||||||||
Income tax expense (benefit) from continuing operations | $ | 47 | $ | (602 | ) | $ | 89 | $ | (360 | ) | |||||
Income (loss) from continuing operations before income taxes | |||||||||||||||
and equity earnings (losses) | $ | 286 | $ | (1,183 | ) | $ | 787 | $ | (590 | ) | |||||
Equity earnings (losses), before income tax(1) | 2 | (189 | ) | 7 | (184 | ) | |||||||||
Pretax income (loss) | $ | 288 | $ | (1,372 | ) | $ | 794 | $ | (774 | ) | |||||
Effective income tax rate | 16 | % | 44 | % | 11 | % | 47 | % | |||||||
SDG&E: | |||||||||||||||
Income tax expense | $ | 35 | $ | 42 | $ | 40 | $ | 98 | |||||||
Income before income taxes | $ | 181 | $ | 188 | $ | 363 | $ | 413 | |||||||
Effective income tax rate | 19 | % | 22 | % | 11 | % | 24 | % | |||||||
SoCalGas: | |||||||||||||||
Income tax (benefit) expense | $ | (4 | ) | $ | 23 | $ | 15 | $ | 82 | ||||||
Income before income taxes | $ | 27 | $ | 57 | $ | 310 | $ | 341 | |||||||
Effective income tax rate | (15 | )% | 40 | % | 5 | % | 24 | % |
(1) | We discuss how we recognize equity earnings in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. |
▪ | $131 million income tax benefit in 2018 resulting from the reduced outside basis difference in Sempra LNG as a result of the impairment of certain non-utility natural gas storage assets; and |
▪ | $16 million income tax expense in 2019 compared to a $99 million income tax benefit in 2018 from foreign currency and inflation effects primarily as a result of fluctuation of the Mexican peso; offset by |
▪ | $21 million income tax expense in 2018 associated with Aliso Canyon natural gas storage facility litigation. |
▪ | $131 million income tax benefit in 2018 resulting from the reduced outside basis difference in Sempra LNG as a result of the impairment of certain non-utility natural gas storage assets; and |
▪ | $39 million income tax expense in 2019 compared to a $5 million income tax benefit in 2018 from foreign currency and inflation effects primarily as a result of fluctuation of the Mexican peso; offset by |
▪ | $69 million total income tax benefits from the release of regulatory liabilities at SDG&E and SoCalGas established in connection with 2017 tax reform for excess deferred income tax balances that the CPUC directed be allocated to shareholders in a January 2019 decision; |
▪ | $21 million income tax expense in 2018 associated with Aliso Canyon natural gas storage facility litigation; |
▪ | $11 million lower income tax expense related to share based compensation; |
▪ | $10 million income tax benefit from a reduction in a valuation allowance against certain NOL carryforwards as a result of our decision to sell our South American businesses; and |
▪ | $9 million income tax expense in 2018 to adjust provisional estimates recorded in 2017 for the effects of tax reform. |
▪ | $31 million income tax benefit from the release of a regulatory liability established in connection with 2017 tax reform for excess deferred income tax balances that the CPUC directed be allocated to shareholders in a January 2019 decision; and |
▪ | higher income tax benefits from forecasted flow-through deductions. |
▪ | $38 million income tax benefit from the release of a regulatory liability established in connection with 2017 tax reform for excess deferred income tax balances that the CPUC directed be allocated to shareholders in a January 2019 decision; and |
▪ | $21 million income tax expense in 2018 associated with Aliso Canyon natural gas storage facility litigation. |
▪ | $200 million other-than-temporary impairment of certain wind equity method investments at Sempra Renewables in 2018; offset by |
▪ | $67 million lower equity earnings at Sempra Mexico, which included: |
◦ | $7 million foreign currency losses in 2019 compared to $47 million foreign currency gains in 2018 at the IMG JV on its Mexican peso-denominated loans from its JV owners, which is fully offset in Other Income (Expense), Net, and |
◦ | $13 million lower equity earnings at the TAG JV primarily due to higher income tax expense. |
▪ | $200 million other-than-temporary impairment of certain wind equity method investments at Sempra Renewables in 2018; and |
▪ | $77 million higher equity earnings, net of income tax, from our investment in Oncor Holdings, which we acquired in March 2018; offset by |
▪ | $17 million foreign currency losses in 2019 compared to $8 million foreign currency gains in 2018 at the IMG JV on its Mexican peso-denominated loans from its JV owners, which is fully offset in Other Income (Expense), Net. |
▪ | $46 million losses attributable to NCI at Sempra LNG in 2018 related to the impairment of certain non-utility natural gas storage assets; and |
▪ | $18 million lower losses attributable to NCI at Sempra Renewables primarily due to the sales of our tax equity investments in December 2018 and April 2019; offset by |
▪ | $28 million lower earnings attributable to NCI at Sempra Mexico. |
▪ | $46 million losses attributable to NCI at Sempra LNG in 2018 related to the impairment of certain non-utility natural gas storage assets; and |
▪ | $1 million earnings attributable to NCI at Sempra Renewables in 2019 compared to $41 million losses in 2018 primarily due to the sales of our tax equity investments in December 2018 and April 2019. |
TRANSACTIONAL GAINS (LOSSES) FROM FOREIGN CURRENCY AND INFLATION | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Total reported amounts | Transactional gains (losses) included in reported amounts | |||||||||||||||
Three months ended June 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Other income (expense), net | $ | 28 | $ | (56 | ) | $ | 15 | $ | (97 | ) | ||||||
Income tax (expense) benefit | (47 | ) | 602 | (16 | ) | 99 | ||||||||||
Equity earnings (losses) | 118 | (4 | ) | (10 | ) | 54 | ||||||||||
Income (loss) from continuing operations, net of income tax | 357 | (585 | ) | (13 | ) | 67 | ||||||||||
Income from discontinued operations, net of income tax | 78 | 55 | 1 | — | ||||||||||||
Earnings (losses) attributable to common shares | 354 | (561 | ) | (5 | ) | 35 | ||||||||||
Six months ended June 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Other income, net | $ | 110 | $ | 96 | $ | 35 | $ | (5 | ) | |||||||
Income tax (expense) benefit | (89 | ) | 360 | (39 | ) | 5 | ||||||||||
Equity earnings (losses) | 219 | (25 | ) | (22 | ) | 3 | ||||||||||
Income (loss) from continuing operations, net of income tax | 917 | (255 | ) | (31 | ) | 2 | ||||||||||
Income from discontinued operations, net of income tax | 36 | 83 | 1 | 1 | ||||||||||||
Earnings (losses) attributable to common shares | 795 | (214 | ) | (15 | ) | 4 |
AVAILABLE FUNDS AT JUNE 30, 2019 | |||||||||||
(Dollars in millions) | |||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||
Unrestricted cash and cash equivalents(1) | $ | 168 | $ | 3 | $ | 28 | |||||
Available unused credit(2)(3) | 5,220 | 1,482 | 750 |
(1) | Amounts at Sempra Energy Consolidated included $102 million held in non-U.S. jurisdictions. We discuss repatriation in Note 1 of the Notes to Condensed Consolidated Financial Statements. |
(2) | Available unused credit is the total available on Sempra Energy’s, Sempra Global’s, SDG&E’s and SoCalGas’ credit facilities that we discuss in Note 7 of the Notes to Condensed Consolidated Financial Statements. |
(3) | Because the commercial paper programs are supported by these lines, we reflect the amount of commercial paper outstanding as a reduction to the available unused credit. |
▪ | finance capital expenditures; |
▪ | meet liquidity requirements; |
▪ | fund dividends; |
▪ | fund new business or asset acquisitions or start-ups; |
▪ | fund capital contribution requirements; |
▪ | repay maturing long-term debt; and |
▪ | fund expenditures related to the natural gas leak at SoCalGas’ Aliso Canyon natural gas storage facility. |
CASH PROVIDED BY OPERATING ACTIVITIES | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Six months ended June 30, 2019 | 2019 change | Six months ended June 30, 2018 | ||||||||||||||
Sempra Energy Consolidated | $ | 1,704 | $ | 31 | 2 | % | $ | 1,673 | ||||||||
SDG&E | 620 | (24 | ) | (4 | ) | 644 | ||||||||||
SoCalGas | 674 | (75 | ) | (10 | ) | 749 |
▪ | $361 million decrease in accounts receivable in 2019 compared to a $186 million decrease in 2018; |
▪ | $80 million net decrease in Insurance Receivable for Aliso Canyon Costs in 2019 compared to an $84 million net increase in 2018. The $80 million net decrease in 2019 includes $106 million in insurance proceeds received, offset by $27 million of additional accruals; and |
▪ | $108 million distribution of earnings received from Oncor in 2019; offset by |
▪ | $105 million net decrease in Reserve for Aliso Canyon Costs in 2019 compared to a $56 million net increase in 2018. The $105 million net decrease in 2019 includes $132 million of cash paid, offset by $27 million of additional accruals; |
▪ | $10 million decrease in interest payable in 2019 compared to an $88 million increase in 2018; |
▪ | $60 million increase in net overcollected regulatory balancing accounts (including long-term amounts included in regulatory assets) at SoCalGas in 2019 compared to a $138 million increase in 2018; and |
▪ | $76 million increase in net undercollected regulatory balancing accounts (including long-term amounts included in regulatory assets) at SDG&E in 2019 compared to a $16 million increase in 2018. |
▪ | $76 million increase in net undercollected regulatory balancing accounts (including long-term amounts included in regulatory assets) in 2019 compared to a $16 million increase in 2018; and |
▪ | $12 million increase in accounts payable in 2019 compared to a $52 million increase in 2018; offset by |
▪ | $24 million in purchases of GHG allowances in 2019 compared to $62 million in 2018; and |
▪ | $26 million decrease in accounts receivable in 2019 compared to a $1 million increase in 2018. |
▪ | $105 million net decrease in Reserve for Aliso Canyon Costs in 2019 compared to a $56 million net increase in 2018. The $105 million net decrease in 2019 includes $132 million of cash paid, offset by $27 million of additional accruals; |
▪ | $85 million lower net income, adjusted for noncash items included in earnings, in 2019 compared to 2018; and |
▪ | $60 million increase in net overcollected regulatory balancing accounts (including long-term amounts included in regulatory assets) in 2019 compared to a $138 million increase in 2018; offset by |
▪ | $80 million net decrease in Insurance Receivable for Aliso Canyon Costs in 2019 compared to an $84 million net increase in 2018. The $80 million net decrease in 2019 includes $106 million in insurance proceeds received, offset by $27 million of additional accruals; and |
▪ | $265 million decrease in accounts receivable in 2019 compared to a $187 million decrease in 2018. |
CASH USED IN INVESTING ACTIVITIES | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Six months ended June 30, 2019 | 2019 change | Six months ended June 30, 2018 | ||||||||||||||
Sempra Energy Consolidated | $ | (2,267 | ) | $ | (9,550 | ) | (81 | )% | $ | (11,817 | ) | |||||
SDG&E | (708 | ) | (137 | ) | (16 | ) | (845 | ) | ||||||||
SoCalGas | (751 | ) | (28 | ) | (4 | ) | (779 | ) |
▪ | $9.57 billion paid, including $9.45 billion of Merger Consideration, for the acquisition of our investment in Oncor Holdings in March 2018, as we discuss in Note 5 of the Notes to Condensed Consolidated Financial Statements; |
▪ | $569 million net proceeds from the April 2019 sale of Sempra Renewables’ remaining wind assets and investments; |
▪ | $327 million net proceeds from the February 2019 sale of Sempra LNG’s non-utility natural gas storage assets; and |
▪ | $183 million decrease in capital expenditures; offset by |
▪ | $1.1 billion higher cash contributions to Oncor Holdings primarily to fund Oncor’s purchase of InfraREIT in May 2019; and |
▪ | $102 million paid for the acquisition of our investment in Sharyland Holdings in May 2019. |
▪ | $124 million decrease in capital expenditures; offset by |
▪ | $94 million increase in net advances to Sempra Energy in 2019. |
EXPENDITURES FOR PROPERTY, PLANT AND EQUIPMENT | |||||||
(Dollars in millions) | |||||||
Six months ended June 30, | |||||||
2019 | 2018 | ||||||
SDG&E: | |||||||
Improvements to electric and natural gas distribution systems, including certain pipeline safety | |||||||
and generation systems, plant and equipment | $ | 517 | $ | 588 | |||
PSEP | 12 | 12 | |||||
Improvements to electric transmission systems | 179 | 251 | |||||
SoCalGas: | |||||||
Improvements to natural gas distribution, transmission and storage systems, and for certain | |||||||
pipeline safety | 582 | 702 | |||||
PSEP | 77 | 81 | |||||
Sempra Mexico: | |||||||
Construction of liquid fuels terminal | 71 | 43 | |||||
Construction of natural gas pipeline projects and other capital expenditures | 51 | 48 | |||||
Construction of renewables projects | 118 | 49 | |||||
Sempra Renewables: | |||||||
Construction costs for wind and solar projects | 2 | 37 | |||||
Sempra LNG: | |||||||
LNG liquefaction development costs | 39 | 11 | |||||
Other | 1 | 2 | |||||
Parent and other | 2 | 10 | |||||
Total | $ | 1,651 | $ | 1,834 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||
(Dollars in millions) | |||||||||||||
Six months ended June 30, 2019 | 2019 change | Six months ended June 30, 2018 | |||||||||||
Sempra Energy Consolidated | $ | 611 | $ | (9,499 | ) | $ | 10,110 | ||||||
SDG&E | 85 | (112 | ) | 197 | |||||||||
SoCalGas | 87 | (18 | ) | 105 |
▪ | $4.7 billion lower issuances of debt with maturities greater than 90 days, including: |
◦ | $4.3 billion for long-term debt ($1.5 billion in 2019 compared to $5.8 billion in 2018 primarily to fund the acquisition of our investment in Oncor Holdings), and |
◦ | $444 million for commercial paper and other short-term debt ($1.1 billion in 2019 compared to $1.6 billion in 2018); |
▪ | $2.1 billion proceeds, net of $38 million in offering costs, from the issuances of common stock in 2018; |
▪ | $1.7 billion proceeds, net of $32 million in offering costs, from the issuance of series A preferred stock in 2018; and |
▪ | $444 million decrease in short-term debt in 2019 compared to a $1.3 billion increase in 2018; offset by |
▪ | $928 million lower payments of debt with maturities greater than 90 days and finance leases, including: |
◦ | $557 million for long-term debt and finance leases ($569 million in 2019 compared to $1.1 billion in 2018), and |
◦ | $371 million for commercial paper and other short-term debt ($302 million in 2019 compared to $673 million in 2018). |
▪ | $256 million decrease in short-term debt in 2019 compared to a $210 million increase in 2018; and |
▪ | $51 million lower issuances of long-term debt in 2019; offset by |
▪ | $498 million lower payments of long-term debt and finance leases in 2019. |
CAPITAL PROJECTS PENDING REGULATORY RESOLUTION – SDG&E | ||||
Project description | Estimated capital cost (in millions) | Status | ||
Electric Vehicle Charging | ||||
§ | January 2018 application, pursuant to SB 350, to make investments to support medium-duty and heavy-duty electric vehicles with an estimated implementation cost of $34 million of O&M. | $121 | § | In July 2019, the CPUC issued a proposed decision approving the settlement agreement filed in November 2018. |
Energy Storage Projects | ||||
§ | February 2018 application, pursuant to AB 2868, to make investments to accelerate the widespread deployment of distributed energy storage systems. SDG&E’s application requests approval of 100 MW of utility-owned energy storage. | $161 | § | In June 2019, the CPUC declined to approve SDG&E’s application and provided guidance on future solicitations and filings for energy storage resources. |
▪ | Creation of a Wildfire Safety Division and its advisory board, initially within the CPUC, to review and approve or deny the Wildfire Mitigation Plans (WMPs) of the IOUs. |
▪ | Creation of a Liquidity Fund administered by the state – The fund will provide liquidity to pay IOU wildfire-related claims, subject to review by the fund administrator, within 45 days of the fund administrator’s approval. |
▪ | $5 billion of capital investment by IOUs to support wildfire mitigation – The IOUs will (i) make these capital investments, which will be included in their WMPs, and (ii) recover their securitized financing costs without a ROE, with SDG&E’s share to be $215 million, or 4.3 percent of the $5 billion capital investment. |
▪ | Annual Safety Certification – The IOUs, subject to meeting various requirements, will receive an Annual Safety Certification from the CPUC. |
▪ | Retained insured exposures – The IOUs will continue to procure reasonable amounts of insurance or amounts determined by the fund administrator. Only claims in excess of the greater of $1 billion or the amount of insurance coverage required by the fund administrator are eligible for coverage by the Wildfire Fund. |
▪ | Creation of a Wildfire Fund – The fund will be initially established using the SMIF loan described above, with a similar repayment arrangement using proceeds anticipated from the issuance of new DWR bonds, and IOU shareholder contributions, as we describe below. The Wildfire Fund will provide liquidity to the participating IOUs to pay wildfire-related claims, subject to review by the fund administrator. |
▪ | IOU shareholder liability cap and obligation to reimburse – The Wildfire Fund provides clarified standards for the CPUC to apply in its prudency review, described below, in the event of wildfire losses. To the extent the IOU losses are found to be prudently incurred, the Wildfire Fund would absorb those losses. To the extent the IOU losses are found to be imprudently incurred, IOU shareholders would reimburse such losses to the Wildfire Fund, subject to a Liability Cap described below. |
▪ | Liability Cap – Subject to the IOU holding a valid Annual Safety Certification, a shareholder liability cap would limit, on a rolling three-year basis, the amount shareholders must pay for losses found to be imprudently incurred to 20 percent of the IOU’s Electric Transmission and Distribution Equity Rate Base, as published by the wildfire fund administrator annually. These payments, if any, would be used to reimburse the Wildfire Fund. |
▪ | Prudency standard of review – The prudency standard of review will be modified to require that, when reviewing wildfire liability losses paid, the CPUC apply clearer standards, similar to the FERC standard, when determining the reasonableness of a utility’s conduct related to an ignition. Under this standard, the conduct under review related to the ignition may consider factors within and beyond the utility’s control, including humidity, temperature and winds. Costs and expenses may be allocated for cost recovery in full or in part. Also, under this standard, an IOU’s conduct will be deemed reasonable if a valid Annual Safety Certification is in place, unless a serious doubt is raised, in which case the utility must dispel it. |
▪ | Insurance subrogation claim limit – The fund administrator will generally limit payments of subrogation claims to 40 percent of the claim value. |
▪ | Electric Rate Reform – California Assembly Bill 327 |
▪ | Potential Impacts of Community Choice Aggregation and Direct Access |
▪ | Renewable Energy Procurement |
▪ | Local Community Mitigation Efforts |
▪ | Civil and Criminal Litigation |
▪ | Regulatory Proceedings |
▪ | Governmental Investigations and Orders and Additional Regulation |
▪ | Insurance |
JOINT CAPITAL PROJECTS PENDING REGULATORY RESOLUTION – CALIFORNIA UTILITIES | ||||
Project description | Estimated capital cost (in millions) | Status | ||
Line 1600 Test or Replacement Project | ||||
§ | Pursuant to a CPUC order, in September 2018, SDG&E and SoCalGas submitted a plan to the CPUC to address Line 1600 PSEP requirements by replacing 37 miles of Line 1600 predominately in populated areas and testing 13 miles of Line 1600 in rural areas. | $671 | § | In January 2019, the CPUC approved the proposed plan to address Line 1600 PSEP requirements. Cost recovery will be addressed in future GRCs. |
§ | Estimated O&M implementation cost of $45 million and cost to retire portions of Line 1600 of $14 million at SDG&E. | § | In May 2019, certain intervenors filed a petition to re-open the proceeding and review the proposed plan. | |
Mobile Home Park Utility Upgrade Program | ||||
§ | In April 2018, the CPUC opened an OIR to evaluate the Mobile Home Park Program to convert eligible units to direct utility service and determine if it should be extended beyond the initial three-year pilot to a permanent program, and if extended, to adopt programmatic modifications. | $471 to $508 | § | A final decision in the OIR is expected by the end of 2019. |
§ | In March 2019, the CPUC issued a resolution approving the extension of the pilot program through the earlier of 2021 or the issuance of a CPUC decision on pending proceedings. |
PIPELINE SAFETY ENHANCEMENT PLAN – COST SUMMARY | |||||||||||||||
(Dollars in millions) | |||||||||||||||
2011 through June 30, 2019 | |||||||||||||||
Total invested(1) | CPUC review completed(2) | CPUC review pending(3) | 2019 and future applications(4)(5) | ||||||||||||
Sempra Energy Consolidated: | |||||||||||||||
Capital | $ | 1,767 | $ | 213 | $ | 853 | $ | 701 | |||||||
Operation and maintenance | 212 | 82 | 85 | 45 | |||||||||||
Total | $ | 1,979 | $ | 295 | $ | 938 | $ | 746 | |||||||
SoCalGas: | |||||||||||||||
Capital | $ | 1,397 | $ | 199 | $ | 731 | $ | 467 | |||||||
Operation and maintenance | 203 | 81 | 78 | 44 | |||||||||||
Total | $ | 1,600 | $ | 280 | $ | 809 | $ | 511 | |||||||
SDG&E: | |||||||||||||||
Capital | $ | 370 | $ | 14 | $ | 122 | $ | 234 | |||||||
Operation and maintenance | 9 | 1 | 7 | 1 | |||||||||||
Total | $ | 379 | $ | 15 | $ | 129 | $ | 235 |
(1) | Excludes certain pressure testing and pipeline replacement costs incurred through June 30, 2019 that were not eligible for recovery based on prior CPUC decisions. Also excludes $45 million incurred for the Line 1600 Test or Replacement Project. |
(2) | Includes costs approved in the 2017 Forecast Application. Excludes $2 million of PSEP-specific insurance costs for which SoCalGas and SDG&E are authorized to request recovery in a future filing. |
(3) | Costs for completed projects pursuant to the 2018 Reasonableness Review Application filed in November 2018, with a decision expected in 2020. |
(4) | Remaining costs not the subject of prior applications are to be included in subsequent GRCs. |
(5) | Authorized to recover 50 percent of the Phase 1 revenue requirement annually, subject to refund. |
CAPITAL PROJECTS – SEMPRA MEXICO – GAS BUSINESS | ||||
Project description | Our share of estimated capital cost (in millions) | Status | ||
Sur de Texas-Tuxpan Marine Pipeline | ||||
§ | IMG was awarded the right to build, own and operate the natural gas marine pipeline in June 2016 by the CFE. | $992 | § | Completed in June 2019; pending acceptance of the in-service date by the CFE. |
§ | Sempra Mexico has a 40-percent interest in IMG, a JV with TC Energy, which owns the remaining 60-percent interest. | § | In June 2019, the CFE sent IMG a request for arbitration over certain contract terms relating to force majeure clauses and fixed capacity payments applicable to such events. | |
§ | Natural gas transportation services agreement for a 25-year term, denominated in U.S. dollars. | |||
Manzanillo Terminal | ||||
§ | Plan to develop, construct and operate a marine terminal for the receipt, storage and delivery of refined products in Manzanillo, Colima. | $149 to $235 | § | Estimated completion: first quarter of 2021. |
§ | Increased storage capacity to 2.2 million barrels is fully contracted under long-term, U.S. dollar-denominated agreements with British Petroleum, Trafigura Mexico, S.A. de C.V. and Marathon Petroleum Corporation. | |||
§ | Sempra Mexico has a 52.4-percent interest in TP Terminals, S. de. R.L. de C.V., a JV with Trafigura Mexico, S.A. de C.V., which owns the remaining 47.6-percent interest. Sempra Mexico has the option to increase its ownership interest up to 82.5 percent. | |||
Ecogas | ||||
§ | Expansion plan to connect approximately 40 thousand new customers in the next two years. | $78 | § | Estimated completion: 2019 through 2021 as portions are completed. |
CAPITAL PROJECTS – SEMPRA MEXICO – POWER BUSINESS | ||||
Project description | Our share of estimated capital cost (in millions) | Status | ||
La Rumorosa Solar Complex | ||||
§ | Awarded 41-MW photovoltaic solar energy project located in Baja California, Mexico, in an auction conducted by Mexico’s National Center of Electricity Control (Centro Nacional de Control de Energía) in September 2016. | $50 | § | Completed in June 2019. |
§ | Contracted by the CFE under a 15-year renewable energy agreement and a 20-year clean energy certificate agreement, denominated in U.S. dollars. | |||
Tepezalá II Solar Complex | ||||
§ | Awarded 100-MW photovoltaic solar energy project located in Aguascalientes, Mexico, in an auction conducted by Mexico’s National Center of Electricity Control in September 2016. | $90 | § | Estimated completion: third quarter of 2019. |
§ | Contracted by the CFE under 15-year renewable energy and capacity agreements and a 20-year clean energy certificate agreement, denominated in U.S. dollars. | |||
§ | Trina Solar owns a 10-percent interest in the project. Sempra Mexico has the option to purchase, and Trina Solar has the option to sell, Trina Solar’s ownership interest at the end of the construction period, before operations commence. |
NOMINAL AMOUNT OF DEBT(1) | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | Sempra Energy Consolidated | SDG&E | SoCalGas | ||||||||||||||||||
Short-term: | |||||||||||||||||||||||
California Utilities | $ | 18 | $ | 18 | $ | — | $ | 547 | $ | 291 | $ | 256 | |||||||||||
Other | 2,380 | — | — | 1,477 | — | — | |||||||||||||||||
Long-term: | |||||||||||||||||||||||
California Utilities fixed-rate | $ | 9,127 | $ | 5,318 | $ | 3,809 | $ | 8,377 | $ | 4,918 | $ | 3,459 | |||||||||||
California Utilities variable-rate | 52 | 52 | — | 78 | 78 | — | |||||||||||||||||
Other fixed-rate | 11,888 | — | — | 10,804 | — | — | |||||||||||||||||
Other variable-rate | 1,246 | — | — | 2,091 | — | — |
(1) | After the effects of interest rate swaps. Before the effects of acquisition-related fair value adjustments and reductions for unamortized discount and debt issuance costs, and excluding finance lease obligations and build-to-suit lease. |
▪ | Moody’s issuer rating was Baa1 with a negative outlook for Sempra Energy, Baa1 with a negative outlook for SDG&E and A1 with a negative outlook for SoCalGas; |
▪ | S&P’s issuer credit rating was BBB+ with a negative outlook for Sempra Energy, BBB+ with a negative outlook for SDG&E and A with a negative outlook for SoCalGas; and |
▪ | Fitch long-term issuer default rating was BBB+ with a stable outlook for Sempra Energy, BBB+ with a negative outlook for SDG&E and A with a stable outlook for SoCalGas. |
Incorporated by Reference | |||||||||
Exhibit Number | Exhibit Description | Filed Herewith | Form | Period Ending | Exhibit or Appendix | Filing Date | |||
EXHIBIT 4 -- INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING INDENTURES | |||||||||
Sempra Energy | |||||||||
4.1 | 8-K | Exhibit 4.2 | 6/26/2019 | ||||||
4.2 | 8-K | Exhibit 4.1 | 6/26/2019 | ||||||
EXHIBIT 10 -- MATERIAL CONTRACTS | |||||||||
Sempra Energy/San Diego Gas & Electric Company/Southern California Gas Company | |||||||||
Compensation | |||||||||
10.1 | DEF 14A | Appendix E | 3/22/2019 | ||||||
10.2 | X | ||||||||
10.3 | X | ||||||||
10.4 | X | ||||||||
10.5 | X | ||||||||
Sempra Energy/Southern California Gas Company | |||||||||
10.6 | X | ||||||||
10.7 | X | ||||||||
Exhibit Number | Exhibit Description | Filed Herewith | ||
EXHIBIT 31 -- SECTION 302 CERTIFICATIONS | ||||
Sempra Energy | ||||
31.1 | X | |||
31.2 | X | |||
San Diego Gas & Electric Company | ||||
31.3 | X | |||
31.4 | X | |||
Southern California Gas Company | ||||
31.5 | X | |||
31.6 | X | |||
EXHIBIT 32 -- SECTION 906 CERTIFICATIONS | ||||
Sempra Energy | ||||
32.1 | X | |||
32.2 | X | |||
San Diego Gas & Electric Company | ||||
32.3 | X | |||
32.4 | X | |||
Southern California Gas Company | ||||
32.5 | X | |||
32.6 | X | |||
EXHIBIT 101 -- INTERACTIVE DATA FILE | ||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document. | X | ||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X |
Sempra Energy: | ||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | ||
SEMPRA ENERGY, (Registrant) | ||
Date: August 2, 2019 | By: /s/ Peter R. Wall | |
Peter R. Wall Vice President, Controller and Chief Accounting Officer |
San Diego Gas & Electric Company: | ||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | ||
SAN DIEGO GAS & ELECTRIC COMPANY, (Registrant) | ||
Date: August 2, 2019 | By: /s/ Bruce A. Folkmann | |
Bruce A. Folkmann Vice President, Controller, Chief Financial Officer and Chief Accounting Officer |
Southern California Gas Company: | ||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | ||
SOUTHERN CALIFORNIA GAS COMPANY, (Registrant) | ||
Date: August 2, 2019 | By: /s/ Mia L. DeMontigny | |
Mia L. DeMontigny Vice President, Controller, Chief Financial Officer and Chief Accounting Officer |
You have been granted a restricted stock unit award representing the right to receive the number of shares of Sempra Energy Common Stock set forth below, subject to the vesting conditions set forth below. The restricted stock units, and dividend equivalents with respect to the restricted stock units, under your award may not be sold or assigned. They will be subject to forfeiture unless and until they vest in accordance with the terms and conditions of the award. Shares of Common Stock will be distributed to you after the completion of the service periods ending in <MONTH> <YEAR> through <MONTH> <YEAR>, if the restricted stock units vest under the terms and conditions of your award. The terms and conditions of your award are set forth in the attached Year <YEAR> Restricted Stock Unit Award Agreement (the “Award Agreement”) and in the Sempra Energy <YEAR> Long Term Incentive Plan (the “Plan”), which has been provided to you. The summary below highlights selected terms and conditions but it is not complete and you should carefully read the attachments to fully understand the terms and conditions of your award. | |||||
SUMMARY | |||||
Date of Award: | <DATE>, <YEAR> | ||||
Name of Recipient: | <NAME> | ||||
Recipient’s Employee Number: | <EMPLOYEE ID> | ||||
Number of Restricted Stock Units (prior to any dividend equivalents): | <# RSUs> | ||||
Restricted Stock Units: | |||||
Your restricted stock units represent the right to receive shares of Common Stock in the future, subject to the terms and conditions of your award. Your restricted stock units are not shares of Common Stock. | |||||
Vesting/Forfeiture of Restricted Stock Units: | |||||
If not previously forfeited, your restricted stock units will vest in equal annual installments of one-fifth of the original number of units covered by this award (together with related dividend equivalents) on the first five anniversaries of the award date, subject to your continued employment by Sempra Energy or its Subsidiaries through the applicable Vesting Date. Subject to certain exceptions set forth in the Award Agreement, if your employment terminates prior to the applicable Vesting Date, your restricted stock units will be forfeited effective immediately following such termination. | |||||
Transfer Restrictions: | |||||
Your restricted stock units may not be sold or otherwise transferred and will remain subject to forfeiture conditions until they vest. | |||||
Termination of Employment: | |||||
Subject to certain exceptions set forth in the Award Agreement, your restricted stock units will be forfeited if your employment terminates before such units vest effective immediately following such termination. | |||||
Dividend Equivalents: | |||||
You also have been awarded dividend equivalents with respect to your restricted stock units. Your dividend equivalents represent the right to receive additional shares of Common Stock in the future, subject to the terms and conditions of your award. Your dividend equivalents will be determined based on the dividends that you would have received had you held shares of Common Stock equal to the vested number of your restricted stock units from the date of your award to the date of the distribution of shares of Common Stock following the vesting of your restricted stock units, and assuming that the dividends were reinvested in Common Stock (and any dividends on such shares were reinvested in Common Stock). The dividends will be deemed reinvested in Common Stock in the same manner as dividends reinvested pursuant to the terms of the Sempra Dividend Reinvestment Plan. Your dividend equivalents will be subject to the same transfer restrictions and forfeiture and vesting conditions as the shares represented by your restricted stock units. | |||||
Distribution of Shares: | |||||
Shares of Common Stock will be distributed to you to the extent your restricted stock units (and accompanying dividend equivalents) vest. Except as provided otherwise in the Award Agreement, the shares will be distributed to you after the completion of the applicable service period. The shares of Common Stock will include the additional shares to be distributed pursuant to your vested dividend equivalents. | |||||
Taxes: | |||||
Upon distribution of shares of Common Stock to you, you will be subject to income taxes on the value of the distributed shares at the time of distribution and must pay applicable withholding taxes. | |||||
By your acceptance of this award, you agree to all of the terms and conditions set forth in this Cover Page/Summary, the Award Agreement and the Plan. You will be deemed to have accepted this award unless you affirmatively reject the award in accordance with the procedures described herein or unless you fail to execute the Arbitration Agreement, if any, provided to you in connection with this award. | |||||
Sempra Energy: | <SIGNATURE> | ||||
Title: | <CEO NAME> <TITLE> |
Award: | You have been granted a restricted stock unit award under Sempra Energy’s <YEAR> Long Term Incentive Plan (the “Plan”). The award consists of the number of restricted stock units set forth on the Cover Page/Summary to this Award Agreement, and dividend equivalents with respect to the restricted stock units (described below). Capitalized terms used in this Award Agreement and not defined shall have the meaning set forth in the Plan. Your restricted stock units represent the right to receive shares of Common Stock in the future, subject to the terms and conditions of your award. Your restricted stock units are not shares of Common Stock. Each restricted stock unit represents the right to receive one share of Common Stock upon the vesting of the unit. Unless and until they vest, your restricted stock units and any dividend equivalents will be subject to transfer restrictions and forfeiture and vesting conditions. Subject to certain exceptions set forth herein, your restricted stock units (and dividend equivalents) will be forfeited effective immediately following such termination if your employment terminates before they vest; provided, however, that the Compensation Committee, in its sole discretion, may determine to vest you in all or a portion of such restricted stock units (subject to Code Section 409A requirements and the terms of the Plan). See “Vesting/Forfeiture,” “Transfer Restrictions,” and “Termination of Employment” below. |
Vesting/Forfeiture: | Subject to the provisions below relating to the treatment of your restricted stock units in connection with a Change in Control, your restricted stock units (and dividend equivalents) will vest in equal annual installments of one-fifth of the original number of units covered by this award (together with related dividend equivalents) on the first five anniversaries of the award date, subject to your continued employment by Sempra Energy or its Subsidiaries through the applicable vesting date and the terms of this Award Agreement. Certificates for the shares will be transferred to your brokerage account unless you specifically instruct otherwise. When the shares of Common Stock are issued to you, your restricted stock units (vested and unvested) and your dividend equivalents will terminate. |
Transfer Restrictions: | You may not sell or otherwise transfer or assign your restricted stock units (or your dividend equivalents). |
Dividend Equivalents: | You also have been awarded dividend equivalents with respect to your restricted stock units. Your dividend equivalents represent the right to receive additional shares of Common Stock in the future, subject to the terms and conditions of your award. Your dividend equivalents will be determined based on the dividends that you would have received had you held shares of Common Stock equal to the vested number of your restricted stock units from the date of your award to the date of the distribution of shares of Common Stock following the vesting of your restricted stock units, and assuming that the dividends were reinvested in Common Stock (and any dividends on such shares were reinvested in Common Stock). The dividends will be deemed reinvested in Common Stock in the same manner as dividends reinvested pursuant to the terms of the Sempra Dividend Reinvestment Plan. Your dividend equivalents will be subject to the same transfer restrictions and forfeiture and vesting conditions as your restricted stock units. They will vest when and to the extent that your restricted stock units vest. Also, your restricted stock units (and dividend equivalents), including the terms and conditions thereof, will be adjusted to prevent dilution or enlargement of your rights in the event of a stock dividend on shares of Common Stock or as the result of a stock-split, recapitalization, reorganization or other similar transaction in accordance with the terms and conditions of the Plan. Any additional restricted stock units (and dividend equivalents) awarded to you as a result of such an adjustment also will be subject to the same transfer restrictions, forfeiture and vesting conditions and other terms and conditions that are applicable to your restricted stock units (and dividend equivalents). |
No Shareholder Rights: | Your restricted stock units (and dividend equivalents) are not shares of Common Stock. You will have no rights as a shareholder unless and until shares of Common Stock are issued to you following the vesting of your restricted stock units (and dividend equivalents) as provided in this Award Agreement and the Plan. |
Distribution of Shares: | Following the vesting of your restricted stock units, you will receive the number of shares of Common Stock equal to the number of your restricted stock units that have vested. However, in no event will you receive under this award, and other awards granted to you under the Plan in the same fiscal year of Sempra Energy, more than the maximum number of shares of Common Stock permitted under the Plan. Also, you will receive the number of shares of Common Stock equal to your vested dividend equivalents. You will receive the shares as soon as reasonably practicable following each vesting date (and in no event later than March 15 of the year following the applicable vesting date). Once you receive the shares of Common Stock, your restricted stock units (and dividend equivalents) will terminate. |
Termination of Employment: | |
Termination: | If your employment with Sempra Energy and its Subsidiaries terminates for any reason other than by reason of your death prior to the vesting of your restricted stock units (and dividend equivalents), all of your restricted stock units (and dividend equivalents) will be forfeited effective immediately following such termination; provided, however, that the Compensation Committee in its sole discretion may determine to vest you in all or a portion of such restricted stock units (subject to Code Section 409A requirements and the terms of the Plan). If your employment terminates by reason of your death prior to the vesting of your restricted stock units (and dividend equivalents), all of your restricted stock units (and dividend equivalents) will vest upon your death. |
Termination for Cause: | If your employment with Sempra Energy and its Subsidiaries terminates for cause, or your employment would have been subject to termination for cause, prior to the vesting of your restricted stock units (and dividend equivalents), all of your restricted stock units (and dividend equivalents) will be forfeited effective immediately following such termination. Prior to the consummation of a Change in Control, a termination for cause is (i) the willful failure by you to substantially perform your duties with the Company (other than any such failure resulting from your incapacity due to physical or mental illness), (ii) the grossly negligent performance of such obligations referenced in clause (i) of this definition, (iii) your gross insubordination; and/or (iv) your commission of one or more acts of moral turpitude that constitute a violation of applicable law (including but not limited to a felony) which have or result in an adverse effect on the Company, monetarily or otherwise, or one or more significant acts of dishonesty. For purposes of clause (i), no act, or failure to act, on your part shall be deemed “willful” unless done, or omitted to be done, by you not in good faith and without reasonable belief that your act, or failure to act, was in the best interests of the Company. If your restricted stock units remain outstanding following a Change in Control pursuant to a Replacement Award, a termination for cause following such Change in Control shall be determined in accordance with the provisions of the Plan that define “Cause”, including reasonable notice and, if possible, a reasonable opportunity to cure as provided therein. |
Taxes: | |
Withholding Taxes: | When you become subject to withholding taxes upon distribution of the shares of Common Stock or otherwise, Sempra Energy or its Subsidiary is required to withhold taxes. Unless you instruct otherwise and pay or make arrangements satisfactory to Sempra Energy to pay these taxes, upon the distribution of your shares, Sempra Energy will withhold a sufficient number of shares of common stock that you would otherwise be entitled to receive to cover the minimum required withholding taxes and transfer to you only the remaining balance of your shares. In the event that, following a Change in Control, your restricted stock units become eligible for a distribution upon your Retirement by reason of your combined age and service, your restricted stock units may become subject to employment tax withholding prior to the distribution of shares with respect to such units. |
Code Section 409A: Recoupment (“Clawback”) Policy: | Your restricted stock units are subject to provisions of the Plan which set forth terms to comply with Code Section 409A. The Company shall require the forfeiture, recovery or reimbursement of awards or compensation under the Plan and this award as (i) required by applicable law, or (ii) required under any policy implemented or maintained by the Company pursuant to any applicable rules or requirements of a national securities exchange or national securities association on which any securities of the Company are listed. The Company reserves the right to recoup compensation paid if it determines that the results on which the compensation was paid were not actually achieved. The Compensation Committee may, in its sole discretion, require the recovery or reimbursement of long-term incentive compensation awards from any employee whose fraudulent or intentional misconduct materially affects the operations or financial results of the Company or its Subsidiaries. |
Retention Rights: | Neither your restricted stock unit award nor this Award Agreement gives you any right to be retained by Sempra Energy or any of its Subsidiaries in any capacity and your employer reserves the right to terminate your employment at any time, with or without cause. The value of your award will not be included as compensation or earnings for purposes of any other benefit plan offered by Sempra Energy or any of its Subsidiaries. |
Change in Control: | In the event of a Change in Control, the following terms shall apply: § If (i) you have achieved age 55 and have completed at least five years of continuous service with Sempra Energy and its Subsidiaries as of the date of a Change in Control and your restricted stock units have not been forfeited prior to the Change in Control, (ii) your outstanding restricted stock units as of the date of a Change in Control are not subject to a “substantial risk of forfeiture” within the meaning of Code Section 409A and/or (iii) your outstanding restricted stock units are not assumed or substituted with one or more Replacement Awards (as defined in the Plan), then in each case your outstanding restricted stock units and any associated dividend equivalents will vest immediately prior to the Change in Control. If the foregoing terms apply, immediately prior to the date of the Change in Control you will receive a number of shares of Common Stock equal to the number of your restricted stock units and dividend equivalents that have vested. § If your outstanding restricted stock awards are assumed or substituted with one or more Replacement Awards, then, except as provided otherwise in an individual severance agreement or employment agreement to which you are a party, the terms set forth in the Plan shall apply with respect to such Replacement Award following the Change in Control. If the foregoing terms apply and the Replacement Award vests upon your separation from service or death, on such date, you will receive a number of shares or other property in settlement of the Replacement Awards. |
Further Actions: | You agree to take all actions and execute all documents appropriate to carry out the provisions of this Award Agreement. You shall be deemed to have accepted this award unless you affirmatively reject it in writing addressed to the Corporate Secretary of the Company no later than March 31, <YEAR>; provided, however, that you shall not be deemed to have accepted this award if you fail to execute the Arbitration Agreement, if any, provided to you in connection with this award. You also appoint as your attorney-in-fact each individual who at the time of so acting is the Secretary or an Assistant Secretary of Sempra Energy with full authority to effect any transfer of any shares of Common Stock distributable to you, including any transfer to pay withholding taxes, that is authorized by this Award Agreement. |
Applicable Law: | This Award Agreement will be interpreted and enforced under the laws of the State of California. |
Disputes: Other Agreements: | Any and all disputes between you and the Company relating to or arising out of the Plan or your restricted stock unit award shall be subject to the Arbitration Agreement, if any, provided with this Award Agreement, including, but not limited to, any disputes referenced in the applicable provisions of the Plan. In the event of any conflict between the terms of this Award Agreement and any written employment, severance or other employment-related agreement between you and Sempra Energy, the terms of this Award Agreement, or the terms of such other agreement, whichever are more favorable to you, shall prevail, provided that in each case a conflict shall be resolved in a manner consistent with the intent that your restricted stock units comply with Code Section 409A. In the event of a conflict between the terms of this Award Agreement and the Plan, the Plan document shall prevail. |
You have been granted a restricted stock unit award representing the right to receive the number of shares of Sempra Energy Common Stock set forth below, subject to the vesting conditions set forth below. The restricted stock units, and dividend equivalents with respect to the restricted stock units, under your award may not be sold or assigned. They will be subject to forfeiture unless and until they vest on the date of the <YEAR> Annual Meeting of Shareholders. Shares of Common Stock will be distributed to you when the restricted stock units vest under the terms and conditions of your award. The terms and conditions of your award are set forth herein and in the Sempra Energy <YEAR> Long Term Incentive Plan (the “Plan”), which has been provided to you. | ||||||
Date of Award: | <DATE> | |||||
Name of Recipient: | <NAME> | |||||
Number of Restricted Stock Units (prior to any reinvested dividend equivalents): | <NUMBER> units | |||||
You have been granted a restricted stock unit award under the Plan. Your restricted stock units represent the right to receive one share of Sempra Energy Common Stock (together with reinvested dividend equivalents) for each restricted stock unit upon the vesting of your award, subject to the terms and conditions of your award. Your restricted stock units are not shares of Common Stock. You will have no rights as a shareholder unless and until shares of Common Stock are issued to you upon the vesting of your restricted stock units. Your restricted stock units (and reinvested dividend equivalents) are subject to transfer restrictions and will be forfeited if your Sempra Energy board service terminates before your units vest, subject to certain exceptions. See “Vesting/Forfeiture of Restricted Stock Units”, “Transfer Restrictions”, and “Termination of Board Service” below. | ||||||
Vesting/Forfeiture of Restricted Stock Units: | ||||||
Subject to the provisions below relating to the treatment of your restricted stock units in connection with a Change in Control, if not previously forfeited, your restricted stock units (together with related dividend equivalents) will vest on the date of the <YEAR> Annual Meeting of Shareholders or upon your earlier termination of board service by reason of your death, disability, or removal from the board without cause. Your restricted stock units will be forfeited upon your termination of board service before the date of the <YEAR> Annual Meeting of Shareholders for any reason other than your death, disability, or removal from the board without cause. | ||||||
Transfer Restrictions: | ||||||
Your restricted stock units may not be sold or otherwise transferred and will remain subject to forfeiture conditions until they vest. | ||||||
Termination of Board Service: | ||||||
If your Sempra Energy board service terminates for any reason prior to the date of the <YEAR> Annual Meeting of Shareholders (other than by reason of your death, disability, or removal from the board without cause), all of your restricted stock units will be forfeited. If your board service terminates by reason of your death, disability, or removal from the board without cause, your restricted stock units (and reinvested dividend equivalents) will immediately vest. | ||||||
Dividend Equivalents: |
You also have been awarded dividend equivalents with respect to your restricted stock units. Your dividend equivalents represent the right to receive additional shares of Common Stock in the future, subject to the terms and conditions of your award. Your dividend equivalents will be determined based on the dividends that you would have received, had you held shares of Common Stock equal to the vested number of your restricted stock units from the date of your award to the date of the distribution of shares following the vesting of your restricted stock units, and assuming that the dividends were reinvested in Common Stock (and any dividends on such shares were reinvested in Common Stock). The dividends will be deemed reinvested in the same manner as dividends reinvested pursuant to the terms of the Sempra Energy Dividend Reinvestment Plan. Your dividend equivalents will be subject to the same transfer restrictions and forfeiture and vesting conditions as the shares represented by your restricted stock units. | ||||||
Also, your restricted stock units (and dividend equivalents), including the terms and conditions thereof, will be adjusted to prevent dilution or enlargement of your rights in the event of a stock dividend on shares of Common Stock or as the result of a stock-split, recapitalization, reorganization or other similar transaction in accordance with the terms and conditions of the Plan. Any additional restricted stock units (and dividend equivalents) awarded to you as a result of such an adjustment also will be subject to the same transfer restrictions, forfeiture and vesting conditions and other terms and conditions that are applicable to your restricted stock units (and dividend equivalents). | ||||||
Distribution of Shares: | ||||||
Following the vesting of your restricted stock units, you will receive the number of shares of Common Stock equal to the number of your restricted stock units that have vested. Also, you will receive the number of shares of Common Stock equal to your vested dividend equivalents. You will receive the shares as soon as reasonably practicable following the vesting date but in no event more than 2-1/2 months following the calendar year in which the vesting date occurs (or such other date as determined under the Sempra Energy Employee and Director Savings Plan or any other deferred compensation plan maintained by Sempra Energy). Once you receive the shares of Common Stock, your restricted stock units (and dividend equivalents) will terminate. | ||||||
Taxes: | ||||||
Upon the distribution of your units (and related dividend equivalents) in shares of Common Stock, you will realize taxable income based on the fair market value of the shares on the distribution date and, if applicable, you must pay any applicable withholding (or other) taxes. If you are subject to withholding (or other) taxes, prior to the taxable or tax withholding event, as applicable, you must pay, or make adequate arrangements satisfactory to Sempra Energy to pay these taxes. In this regard, unless you instruct otherwise and pay or make arrangements satisfactory to Sempra Energy to pay these taxes, upon the distribution of your shares, Sempra Energy will withhold a sufficient number of shares of common stock that you would otherwise be entitled to receive to cover the minimum required withholding taxes and transfer to you only the remaining balance of your shares. | ||||||
Change in Control: | ||||||
A change in control shall be governed in accordance with the terms of the Plan. | ||||||
Further Actions: | ||||||
You agree to take all actions and execute all documents appropriate to carry out the provisions of this Agreement. You shall be deemed to have accepted this award unless you affirmatively reject it in writing addressed to the Corporate Secretary of the Company no later than 90 days following the Date of Award. You also appoint as your attorney-in-fact each individual who at the time of so acting is the Secretary or an Assistant Secretary of Sempra Energy with full authority to effect any transfer of any shares of Common Stock distributable to you, including any transfer to pay withholding taxes (if applicable), that is authorized by this Agreement. | ||||||
Applicable Law: |
This Agreement will be interpreted and enforced under the laws of the State of California. | ||||||
Other Agreements: | ||||||
In the event of a conflict between the terms of this Agreement and the Plan, the plan document shall prevail. | ||||||
By your acceptance of this award, you agree to all of the terms and conditions set forth herein and in the Plan. You will be deemed to have accepted this award unless you affirmatively reject the award in accordance with the procedures described herein. |
You have been granted a restricted stock unit award representing the right to receive the number of shares of Sempra Energy Common Stock set forth below, subject to the vesting conditions set forth below. The restricted stock units, and dividend equivalents with respect to the restricted stock units, under your award may not be sold or assigned. They will be subject to forfeiture unless and until they vest as provided herein. Shares of Common Stock will be distributed to you when the restricted stock units vest under the terms and conditions of your award. The terms and conditions of your award are set forth herein and in the Sempra Energy <YEAR> Long Term Incentive Plan (the “Plan”), which has been provided to you. | |||
Date of Award: | <DATE> | ||
Name of Recipient: | <NAME> | ||
Number of Restricted Stock Units (prior to any reinvested dividend equivalents): | <NUMBER> units | ||
You have been granted a restricted stock unit award under the Plan. Your restricted stock units represent the right to receive one share of Sempra Energy Common Stock (together with reinvested dividend equivalents) for each restricted stock unit upon the vesting of your award, subject to the terms and conditions of your award. Your restricted stock units are not shares of Common Stock. You will have no rights as a shareholder unless and until shares of Common Stock are issued to you upon the vesting of your restricted stock units. Your restricted stock units (and reinvested dividend equivalents) are subject to transfer restrictions and will be forfeited if your Sempra Energy board service terminates before your units vest, subject to certain exceptions. See “Vesting/Forfeiture of Restricted Stock Units”, “Transfer Restrictions”, and “Termination of Board Service” below. | |||
Vesting/Forfeiture of Restricted Stock Units: | |||
Subject to the provisions below relating to the treatment of your restricted stock units in connection with a Change in Control, if not previously forfeited, your restricted stock units will vest (together with related dividend equivalents) on the first anniversary of the award date or upon your earlier termination of board service by reason of your death, disability, or removal from the board without cause. Your unvested restricted stock units will be forfeited upon your termination of board service for any reason other than your death, disability, or removal from the board without cause. | |||
Transfer Restrictions: | |||
Your restricted stock units may not be sold or otherwise transferred and will remain subject to forfeiture conditions until they vest. | |||
Termination of Board Service: | |||
If your Sempra Energy board service terminates for any reason prior to the vesting of your award (other than by reason of your death, disability, or removal from the board without cause), all of your unvested restricted stock units will be forfeited. If your board service terminates by reason of your death, disability, or removal from the board without cause, all unvested restricted stock units (and reinvested dividend equivalents) will immediately vest. | |||
Dividend Equivalents: | |||
You also have been awarded dividend equivalents with respect to your restricted stock units. Your dividend equivalents represent the right to receive additional shares of Common Stock in the future, subject to the terms and conditions of your award. Your dividend equivalents will be determined based on the dividends that you would have received, had you held shares of Common Stock equal to the vested number of your restricted stock units from the date of your award to the date of the distribution of shares following the vesting of your restricted stock units, and assuming that the dividends were reinvested in Common Stock (and any dividends on such shares were reinvested in Common Stock). The dividends will be deemed reinvested in the same manner as dividends reinvested pursuant to the terms of the Sempra Energy Dividend Reinvestment Plan. Your dividend equivalents will be subject to the same transfer restrictions and forfeiture and vesting conditions as the shares represented by your restricted stock units. |
Also, your restricted stock units (and dividend equivalents), including the terms and conditions thereof, will be adjusted to prevent dilution or enlargement of your rights in the event of a stock dividend on shares of Common Stock or as the result of a stock-split, recapitalization, reorganization or other similar transaction in accordance with the terms and conditions of the Plan. Any additional restricted stock units (and dividend equivalents) awarded to you as a result of such an adjustment also will be subject to the same transfer restrictions, forfeiture and vesting conditions and other terms and conditions that are applicable to your restricted stock units (and dividend equivalents). | |||
Distribution of Shares: | |||
Following the vesting of your restricted stock units, you will receive the number of shares of Common Stock equal to the number of your restricted stock units that have vested. Also, you will receive the number of shares of Common Stock equal to your vested dividend equivalents. You will receive the shares as soon as reasonably practicable following the vesting date but in no event more than 2-1/2 months following the calendar year in which the vesting date occurs (or such other date as determined under the Sempra Energy Employee and Director Savings Plan or any other deferred compensation plan maintained by Sempra Energy). Once you receive all of the shares of Common Stock, your restricted stock units (and dividend equivalents) will terminate. | |||
Taxes: | |||
Upon the distribution of your units (and related dividend equivalents) in shares of Common Stock, you will realize taxable income based on the fair market value of the shares on the distribution date and, if applicable, you must pay any applicable withholding (or other) taxes. If you are subject to withholding (or other) taxes, prior to the taxable or tax withholding event, as applicable, you must pay, or make adequate arrangements satisfactory to Sempra Energy to pay these taxes. In this regard, unless you instruct otherwise and pay or make arrangements satisfactory to Sempra Energy to pay these taxes, upon the distribution of your shares, Sempra Energy will withhold a sufficient number of shares of common stock that you would otherwise be entitled to receive to cover the minimum required withholding taxes and transfer to you only the remaining balance of your shares. | |||
Change in Control: | |||
A change in control shall be governed in accordance with the terms of the Plan. | |||
Further Actions: | |||
You agree to take all actions and execute all documents appropriate to carry out the provisions of this Agreement. You shall be deemed to have accepted this award unless you affirmatively reject it in writing addressed to the Corporate Secretary of the Company no later than 90 days following the Date of Award. You also appoint as your attorney-in-fact each individual who at the time of so acting is the Secretary or an Assistant Secretary of Sempra Energy with full authority to effect any transfer of any shares of Common Stock distributable to you, including any transfers to pay withholding taxes (if applicable), that is authorized by this Agreement. | |||
Applicable Law: | |||
This Agreement will be interpreted and enforced under the laws of the State of California. | |||
Other Agreements: | |||
In the event of a conflict between the terms of this Agreement and the Plan, the plan document shall prevail. | |||
By your acceptance of this award, you agree to all of the terms and conditions set forth herein and in the Plan. You will be deemed to have accepted this award unless you affirmatively reject the award in accordance with the procedures described herein. |
Sempra Energy: | <SIGNATURE> | |
Title: | <CEO> <TITLE> |
You have been granted a restricted stock unit award representing the right to receive the number of shares of Sempra Energy Common Stock set forth below, subject to the vesting conditions set forth below. The restricted stock units, and dividend equivalents with respect to the restricted stock units, under your award may not be sold or assigned. They will be subject to forfeiture unless and until they vest in accordance with the terms and conditions of the award. Shares of Common Stock will be distributed to you after the completion of the service period ending in <MONTH> <YEAR>, if the restricted stock units vest under the terms and conditions of your award. The terms and conditions of your award are set forth in the attached Year <YEAR> Restricted Stock Unit Award Agreement (the “Award Agreement”) and in the Sempra Energy <YEAR> Long Term Incentive Plan (the “Plan”), which has been provided to you. The summary below highlights selected terms and conditions but it is not complete and you should carefully read the attachments to fully understand the terms and conditions of your award. | |||||
SUMMARY | |||||
Date of Award: | <DATE>, <YEAR> | ||||
Name of Recipient: | NAME | ||||
Recipient’s Employee Number: | EE ID | ||||
Number of Restricted Stock Units (prior to any dividend equivalents): | # RSU | ||||
Restricted Stock Units: | |||||
Your restricted stock units represent the right to receive shares of Common Stock in the future, subject to the terms and conditions of your award. Your restricted stock units are not shares of Common Stock. | |||||
Vesting/Forfeiture of Restricted Stock Units: | |||||
If not previously forfeited, your restricted stock units will vest (together with related dividend equivalents) on the first New York Stock Exchange trading day of <YEAR>, subject to your continued employment by Sempra Energy or its Subsidiaries through the Vesting Date. Subject to certain exceptions set forth in the Award Agreement, if your employment terminates prior to the Vesting Date, your restricted stock units will be forfeited effective immediately following such termination. | |||||
Transfer Restrictions: | |||||
Your restricted stock units may not be sold or otherwise transferred and will remain subject to forfeiture conditions until they vest. | |||||
Termination of Employment: | |||||
Subject to certain exceptions set forth in the Award Agreement, your restricted stock units will be forfeited if your employment terminates before such units vest effective immediately following such termination. | |||||
Dividend Equivalents: | |||||
You also have been awarded dividend equivalents with respect to your restricted stock units. Your dividend equivalents represent the right to receive additional shares of Common Stock in the future, subject to the terms and conditions of your award. Your dividend equivalents will be determined based on the dividends that you would have received had you held shares of Common Stock equal to the vested number of your restricted stock units from the date of your award to the date of the distribution of shares of Common Stock following the vesting of your restricted stock units, and assuming that the dividends were reinvested in Common Stock (and any dividends on such shares were reinvested in Common Stock). The dividends will be deemed reinvested in Common Stock in the same manner as dividends reinvested pursuant to the terms of the Sempra Dividend Reinvestment Plan. Your dividend equivalents will be subject to the same transfer restrictions and forfeiture and vesting conditions as the shares represented by your restricted stock units. | |||||
Distribution of Shares: | |||||
Shares of Common Stock will be distributed to you to the extent your restricted stock units (and accompanying dividend equivalents) vest. Except as provided otherwise in the Award Agreement, the shares will be distributed to you after the completion of the service period. The shares of Common Stock will include the additional shares to be distributed pursuant to your vested dividend equivalents. | |||||
Taxes: | |||||
Upon distribution of shares of Common Stock to you, you will be subject to income taxes on the value of the distributed shares at the time of distribution and must pay applicable withholding taxes. |
By your acceptance of this award, you agree to all of the terms and conditions set forth in this Cover Page/Summary, the Award Agreement and the Plan. You will be deemed to have accepted this award unless you affirmatively reject the award in accordance with the procedures described herein or unless you fail to execute the Arbitration Agreement, if any, provided to you in connection with this award. | |||||
Sempra Energy: | |||||
Title: | J. Walker Martin Chairman and Chief Executive Officer |
Award: | You have been granted a restricted stock unit award under Sempra Energy’s <YEAR> Long Term Incentive Plan (the “Plan”). The award consists of the number of restricted stock units set forth on the Cover Page/Summary to this Award Agreement, and dividend equivalents with respect to the restricted stock units (described below). Capitalized terms used in this Award Agreement and not defined shall have the meaning set forth in the Plan. Your restricted stock units represent the right to receive shares of Common Stock in the future, subject to the terms and conditions of your award. Your restricted stock units are not shares of Common Stock. Each restricted stock unit represents the right to receive one share of Common Stock upon the vesting of the unit. Unless and until they vest, your restricted stock units and any dividend equivalents will be subject to transfer restrictions and forfeiture and vesting conditions. Subject to certain exceptions set forth herein, your restricted stock units (and dividend equivalents) will be forfeited effective immediately following such termination if your employment terminates before they vest; provided, however, that the Compensation Committee, in its sole discretion, may determine to vest you in all or a portion of such restricted stock units (subject to Code Section 409A requirements and the terms of the Plan). See “Vesting/Forfeiture,” “Transfer Restrictions,” and “Termination of Employment” below. |
Vesting/Forfeiture: | Subject to the provisions below relating to the treatment of your restricted stock units in connection with a Change in Control, your restricted stock units (and dividend equivalents) will vest (together with related dividend equivalents) on the first New York Stock Exchange trading day of <YEAR>, subject to your continued employment by Sempra Energy or its Subsidiaries through the vesting date and the terms of this Award Agreement. Certificates for the shares will transferred to your brokerage account unless you specifically instruct otherwise. When the shares of Common Stock are issued to you, your restricted stock units (vested and unvested) and your dividend equivalents will terminate. |
Transfer Restrictions: | You may not sell or otherwise transfer or assign your restricted stock units (or your dividend equivalents). |
Dividend Equivalents: | You also have been awarded dividend equivalents with respect to your restricted stock units. Your dividend equivalents represent the right to receive additional shares of Common Stock in the future, subject to the terms and conditions of your award. Your dividend equivalents will be determined based on the dividends that you would have received had you held shares of Common Stock equal to the vested number of your restricted stock units from the date of your award to the date of the distribution of shares of Common Stock following the vesting of your restricted stock units, and assuming that the dividends were reinvested in Common Stock (and any dividends on such shares were reinvested in Common Stock). The dividends will be deemed reinvested in Common Stock in the same manner as dividends reinvested pursuant to the terms of the Sempra Dividend Reinvestment Plan. Your dividend equivalents will be subject to the same transfer restrictions and forfeiture and vesting conditions as your restricted stock units. They will vest when and to the extent that your restricted stock units vest. Also, your restricted stock units (and dividend equivalents), including the terms and conditions thereof, will be adjusted to prevent dilution or enlargement of your rights in the event of a stock dividend on shares of Common Stock or as the result of a stock-split, recapitalization, reorganization or other similar transaction in accordance with the terms and conditions of the Plan. Any additional restricted stock units (and dividend equivalents) awarded to you as a result of such an adjustment also will be subject to the same transfer restrictions, forfeiture and vesting conditions and other terms and conditions that are applicable to your restricted stock units (and dividend equivalents). |
No Shareholder Rights: | Your restricted stock units (and dividend equivalents) are not shares of Common Stock. You will have no rights as a shareholder unless and until shares of Common Stock are issued to you following the vesting of your restricted stock units (and dividend equivalents) as provided in this Award Agreement and the Plan. |
Distribution of Shares: | Following the vesting of your restricted stock units, you will receive the number of shares of Common Stock equal to the number of your restricted stock units that have vested. However, in no event will you receive under this award, and other awards granted to you under the Plan in the same fiscal year of Sempra Energy, more than the maximum number of shares of Common Stock permitted under the Plan. Also, you will receive the number of shares of Common Stock equal to your vested dividend equivalents. You will receive the shares as soon as reasonably practicable following each vesting date (and in no event later than March 15 of the year following the vesting date). Once you receive the shares of Common Stock, your restricted stock units (and dividend equivalents) will terminate. |
Termination of Employment: | |
Termination: | If your employment with Sempra Energy and its Subsidiaries terminates for any reason other than by reason of your death prior to the vesting of your restricted stock units (and dividend equivalents), all of your restricted stock units (and dividend equivalents) will be forfeited effective immediately following such termination; provided, however, that the Compensation Committee in its sole discretion may determine to vest you in all or a portion of such restricted stock units (subject to Code Section 409A requirements and the terms of the Plan). If your employment terminates by reason of your death prior to the vesting of your restricted stock units (and dividend equivalents), all of your restricted stock units (and dividend equivalents) will vest upon your death. |
Termination for Cause: | If your employment with Sempra Energy and its Subsidiaries terminates for cause, or your employment would have been subject to termination for cause, prior to the vesting of your restricted stock units (and dividend equivalents), all of your restricted stock units (and dividend equivalents) will be forfeited effective immediately following such termination. Prior to the consummation of a Change in Control, a termination for cause is (i) the willful failure by you to substantially perform your duties with the Company (other than any such failure resulting from your incapacity due to physical or mental illness), (ii) the grossly negligent performance of such obligations referenced in clause (i) of this definition, (iii) your gross insubordination; and/or (iv) your commission of one or more acts of moral turpitude that constitute a violation of applicable law (including but not limited to a felony) which have or result in an adverse effect on the Company, monetarily or otherwise, or one or more significant acts of dishonesty. For purposes of clause (i), no act, or failure to act, on your part shall be deemed “willful” unless done, or omitted to be done, by you not in good faith and without reasonable belief that your act, or failure to act, was in the best interests of the Company. If your restricted stock units remain outstanding following a Change in Control pursuant to a Replacement Award, a termination for cause following such Change in Control shall be determined in accordance with the provisions of the Plan that define “Cause”, including reasonable notice and, if possible, a reasonable opportunity to cure as provided therein. |
Taxes: | |
Withholding Taxes: | When you become subject to withholding taxes upon distribution of the shares of Common Stock or otherwise, Sempra Energy or its Subsidiary is required to withhold taxes. Unless you instruct otherwise and pay or make arrangements satisfactory to Sempra Energy to pay these taxes, upon the distribution of your shares, Sempra Energy will withhold a sufficient number of shares of common stock that you would otherwise be entitled to receive to cover the minimum required withholding taxes and transfer to you only the remaining balance of your shares. In the event that, following a Change in Control, your restricted stock units become eligible for a distribution upon your Retirement by reason of your combined age and service, your restricted stock units may become subject to employment tax withholding prior to the distribution of shares with respect to such units. |
Code Section 409A: Recoupment (“Clawback”) Policy: | Your restricted stock units are subject to provisions of the Plan which set forth terms to comply with Code Section 409A. The Company shall require the forfeiture, recovery or reimbursement of awards or compensation under the Plan and this award as (i) required by applicable law, or (ii) required under any policy implemented or maintained by the Company pursuant to any applicable rules or requirements of a national securities exchange or national securities association on which any securities of the Company are listed. The Company reserves the right to recoup compensation paid if it determines that the results on which the compensation was paid were not actually achieved. The Compensation Committee may, in its sole discretion, require the recovery or reimbursement of long-term incentive compensation awards from any employee whose fraudulent or intentional misconduct materially affects the operations or financial results of the Company or its Subsidiaries. |
Retention Rights: | Neither your restricted stock unit award nor this Award Agreement gives you any right to be retained by Sempra Energy or any of its Subsidiaries in any capacity and your employer reserves the right to terminate your employment at any time, with or without cause. The value of your award will not be included as compensation or earnings for purposes of any other benefit plan offered by Sempra Energy or any of its Subsidiaries. |
Change in Control: | In the event of a Change in Control, the following terms shall apply: § If (i) you have achieved age 55 and have completed at least five years of continuous service with Sempra Energy and its Subsidiaries as of the date of a Change in Control and your restricted stock units have not been forfeited prior to the Change in Control, (ii) your outstanding restricted stock units as of the date of a Change in Control are not subject to a “substantial risk of forfeiture” within the meaning of Code Section 409A and/or (iii) your outstanding restricted stock units are not assumed or substituted with one or more Replacement Awards (as defined in the Plan), then in each case your outstanding restricted stock units and any associated dividend equivalents will vest immediately prior to the Change in Control. If the foregoing terms apply, immediately prior to the date of the Change in Control you will receive a number of shares of Common Stock equal to the number of your restricted stock units and dividend equivalents that have vested. § If your outstanding restricted stock awards are assumed or substituted with one or more Replacement Awards, then, except as provided otherwise in an individual severance agreement or employment agreement to which you are a party, the terms set forth in the Plan shall apply with respect to such Replacement Award following the Change in Control. If the foregoing terms apply and the Replacement Award vests upon your separation from service or death, on such date, you will receive a number of shares or other property in settlement of the Replacement Awards. |
Further Actions: | You agree to take all actions and execute all documents appropriate to carry out the provisions of this Award Agreement. You shall be deemed to have accepted this award unless you affirmatively reject it in writing addressed to the Corporate Secretary of the Company no later than March 31, <YEAR>; provided, however, that you shall not be deemed to have accepted this award if you fail to execute the Arbitration Agreement, if any, provided to you in connection with this award. You also appoint as your attorney-in-fact each individual who at the time of so acting is the Secretary or an Assistant Secretary of Sempra Energy with full authority to effect any transfer of any shares of Common Stock distributable to you, including any transfer to pay withholding taxes, that is authorized by this Award Agreement. |
Applicable Law: | This Award Agreement will be interpreted and enforced under the laws of the State of California. |
Disputes: Other Agreements: | Any and all disputes between you and the Company relating to or arising out of the Plan or your restricted stock unit award shall be subject to the Arbitration Agreement, if any, provided with this Award Agreement, including, but not limited to, any disputes referenced in the applicable provisions of the Plan. In the event of any conflict between the terms of this Award Agreement and any written employment, severance or other employment-related agreement between you and Sempra Energy, the terms of this Award Agreement, or the terms of such other agreement, whichever are more favorable to you, shall prevail, provided that in each case a conflict shall be resolved in a manner consistent with the intent that your restricted stock units comply with Code Section 409A. In the event of a conflict between the terms of this Award Agreement and the Plan, the Plan document shall prevail. |
SEMPRA ENERGY | |||
/s/ Randall L. Clark | |||
Randall L. Clark | |||
Deputy General Counsel and Chief Human | |||
Resources Officer | |||
July 3, 2019 | |||
Date | |||
EXECUTIVE | |||
/s/ Mia DeMontigny | |||
Mia DeMontigny | |||
Vice President, Controller and Chief Financial | |||
Officer - Southern California Gas Company | |||
June 18, 2019 | |||
Date |
SEMPRA ENERGY | ||
/s/ G. Joyce Rowland | ||
G. Joyce Rowland | ||
Senior Vice President, Chief Human Resources and Administrative Officer | ||
May 8, 2017 | ||
Date | ||
EXECUTIVE | ||
/s/ Maryam S. Brown | ||
Maryam S. Brown | ||
Vice President - Federal Gvtl Affairs | ||
April 8, 2017 | ||
Date |
1. | I have reviewed this report on Form 10-Q of Sempra Energy; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
August 2, 2019 | /s/ J. Walker Martin |
J. Walker Martin | |
Chief Executive Officer |
1. | I have reviewed this report on Form 10-Q of Sempra Energy; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
August 2, 2019 | /s/ Trevor I. Mihalik |
Trevor I. Mihalik | |
Chief Financial Officer |
1. | I have reviewed this report on Form 10-Q of San Diego Gas & Electric Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
August 2, 2019 | /s/ Kevin C. Sagara |
Kevin C. Sagara | |
Chief Executive Officer |
1. | I have reviewed this report on Form 10-Q of San Diego Gas & Electric Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
August 2, 2019 | /s/ Bruce A. Folkmann |
Bruce A. Folkmann | |
Chief Financial Officer |
1. | I have reviewed this report on Form 10-Q of Southern California Gas Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
August 2, 2019 | /s/ J. Bret Lane |
J. Bret Lane | |
Chief Executive Officer |
1. | I have reviewed this report on Form 10-Q of Southern California Gas Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
August 2, 2019 | /s/ Mia L. DeMontigny |
Mia L. DeMontigny | |
Chief Financial Officer |
(i) | the Quarterly Report on Form 10-Q of the Company filed with the Securities and Exchange Commission for the quarter ended June 30, 2019 (the "Quarterly Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
(ii) | the information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
August 2, 2019 | /s/ J. Walker Martin |
J. Walker Martin | |
Chief Executive Officer |
(i) | the Quarterly Report on Form 10-Q of the Company filed with the Securities and Exchange Commission for the quarter ended June 30, 2019 (the "Quarterly Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
(ii) | the information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
August 2, 2019 | /s/ Trevor I. Mihalik |
Trevor I. Mihalik | |
Chief Financial Officer |
(i) | the Quarterly Report on Form 10-Q of the Company filed with the Securities and Exchange Commission for the quarter ended June 30, 2019 (the "Quarterly Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
(ii) | the information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
August 2, 2019 | /s/ Kevin C. Sagara |
Kevin C. Sagara | |
Chief Executive Officer |
(i) | the Quarterly Report on Form 10-Q of the Company filed with the Securities and Exchange Commission for the quarter ended June 30, 2019 (the "Quarterly Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
(ii) | the information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
August 2, 2019 | /s/ Bruce A. Folkmann |
Bruce A. Folkmann | |
Chief Financial Officer |
(i) | the Quarterly Report on Form 10-Q of the Company filed with the Securities and Exchange Commission for the quarter ended June 30, 2019 (the "Quarterly Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
(ii) | the information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
August 2, 2019 | /s/ J. Bret Lane |
J. Bret Lane | |
Chief Executive Officer |
(i) | the Quarterly Report on Form 10-Q of the Company filed with the Securities and Exchange Commission for the quarter ended June 30, 2019 (the "Quarterly Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
(ii) | the information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
August 2, 2019 | /s/ Mia L. DeMontigny |
Mia L. DeMontigny | |
Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
||||
Current portion of long-term debt and finance leases | $ 2,156 | $ 1,644 | [1] | ||
Property, plant and equipment, net | 35,282 | 34,439 | [1] | ||
Long-term debt and finance leases | $ 21,199 | $ 20,903 | [1] | ||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |||
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 | |||
Common stock, shares outstanding (in shares) | 274,000,000 | 274,000,000 | |||
Otay Mesa VIE [Member] | |||||
Current portion of long-term debt and finance leases | $ 37 | $ 28 | |||
Property, plant and equipment, net | 280 | 295 | |||
Long-term debt and finance leases | 172 | 190 | |||
San Diego Gas and Electric Company [Member] | |||||
Current portion of long-term debt and finance leases | 91 | 81 | [1] | ||
Property, plant and equipment, net | 16,679 | 16,310 | [1] | ||
Long-term debt and finance leases | $ 6,497 | $ 6,138 | [1] | ||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Preferred stock, shares authorized (in shares) | 45,000,000 | 45,000,000 | |||
Preferred stock, shares issued (in shares) | 0 | 0 | |||
Common stock, shares authorized (in shares) | 255,000,000 | 255,000,000 | |||
Common stock, shares outstanding (in shares) | 117,000,000 | 117,000,000 | |||
San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member] | |||||
Current portion of long-term debt and finance leases | $ 37 | $ 28 | |||
Property, plant and equipment, net | 280 | 295 | |||
Long-term debt and finance leases | 172 | 190 | |||
Southern California Gas Company [Member] | |||||
Current portion of long-term debt and finance leases | 4 | 3 | [1] | ||
Property, plant and equipment, net | 12,805 | 12,439 | [1] | ||
Long-term debt and finance leases | $ 3,780 | $ 3,427 | [1] | ||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Preferred stock, shares authorized (in shares) | 11,000,000 | 11,000,000 | |||
Preferred stock, shares issued (in shares) | 1,000,000 | 1,000,000 | |||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |||
Common stock, shares outstanding (in shares) | 91,000,000 | 91,000,000 | |||
Convertible Preferred Stock Series A [Member] | |||||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Preferred Stock, Dividend Rate, Percentage | 6.00% | 6.00% | |||
Preferred stock, shares issued (in shares) | 17,250,000 | 17,250,000 | |||
Preferred stock, shares outstanding (in shares) | 17,250,000 | 17,250,000 | |||
Convertible Preferred Stock Series B [Member] | |||||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Preferred Stock, Dividend Rate, Percentage | 6.75% | 6.75% | |||
Preferred stock, shares issued (in shares) | 5,750,000 | 5,750,000 | |||
Preferred stock, shares outstanding (in shares) | 5,750,000 | 5,750,000 | |||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 953,000,000 | $ (172,000,000) |
Less: Income from discontinued operations, net of income tax | (36,000,000) | (83,000,000) |
Income (loss) from continuing operations, net of income tax | 917,000,000 | (255,000,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 772,000,000 | 749,000,000 |
Deferred income taxes and investment tax credits | (12,000,000) | (432,000,000) |
Impairment losses | 0 | 1,300,000,000 |
Gain on sale of assets | (66,000,000) | 0 |
Equity (earnings) losses | (219,000,000) | 25,000,000 |
Share-based compensation expense | 39,000,000 | 33,000,000 |
Fixed-price contracts and other derivatives | (28,000,000) | (9,000,000) |
Other | (4,000,000) | 45,000,000 |
Intercompany activities with discontinued operations, net | 64,000,000 | 42,000,000 |
Net change in other working capital components | 84,000,000 | 268,000,000 |
Insurance receivable for Aliso Canyon costs | 80,000,000 | (84,000,000) |
Changes in other noncurrent assets and liabilities, net | (104,000,000) | (157,000,000) |
Net cash provided by continuing operations | 1,523,000,000 | 1,525,000,000 |
Net cash provided by discontinued operations | 181,000,000 | 148,000,000 |
Net cash provided by operating activities | 1,704,000,000 | 1,673,000,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (1,651,000,000) | (1,834,000,000) |
Expenditures for investments and acquisition | (1,391,000,000) | (9,823,000,000) |
Proceeds from sale of assets | 902,000,000 | 1,000,000 |
Purchases of nuclear decommissioning trust assets | (497,000,000) | (487,000,000) |
Proceeds from sales of nuclear decommissioning trust assets | 497,000,000 | 487,000,000 |
Advances to unconsolidated affiliates | (16,000,000) | (81,000,000) |
Repayments of advances to unconsolidated affiliates | 9,000,000 | 1,000,000 |
Intercompany activities with discontinued operations, net | (2,000,000) | (8,000,000) |
Other | 13,000,000 | 39,000,000 |
Net cash used in continuing operations | (2,136,000,000) | (11,705,000,000) |
Net cash used in discontinued operations | (131,000,000) | (112,000,000) |
Net cash used in investing activities | (2,267,000,000) | (11,817,000,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Common dividends paid | (483,000,000) | (416,000,000) |
Preferred dividends paid | (71,000,000) | (28,000,000) |
Preferred dividends paid by subsidiary | (1,000,000) | (1,000,000) |
Issuances of mandatory convertible preferred stock, net of $32 in offering costs | 0 | 1,693,000,000 |
Issuances of common stock, net of $38 in offering costs in 2018 | 20,000,000 | 2,090,000,000 |
Repurchases of common stock | (18,000,000) | (20,000,000) |
Issuances of debt (maturities greater than 90 days) | 2,630,000,000 | 7,328,000,000 |
Payments on debt (maturities greater than 90 days) and finance leases | (871,000,000) | (1,799,000,000) |
(Decrease) increase in short-term debt, net | (444,000,000) | 1,265,000,000 |
Proceeds from sale of noncontrolling interest, net of offering costs. | 0 | 85,000,000 |
Purchases of and distributions to noncontrolling interests | (31,000,000) | (9,000,000) |
Intercompany activities with discontinued operations, net | 0 | 70,000,000 |
Other | (37,000,000) | (104,000,000) |
Net cash provided by continuing operations | 694,000,000 | 10,154,000,000 |
Net cash used in discontinued operations | (83,000,000) | (44,000,000) |
Net cash provided by financing activities | 611,000,000 | 10,110,000,000 |
Effect of exchange rate changes in continuing operations | 0 | 0 |
Effect of exchange rate changes in discontinued operations | 0 | (3,000,000) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | (3,000,000) |
Increase (decrease) in cash, cash equivalents and restricted cash, including discontinued operations | 48,000,000 | (37,000,000) |
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 | 246,000,000 | 364,000,000 |
Cash, cash equivalents and restricted cash, including discontinued operations, June 30 | 294,000,000 | 327,000,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 514,000,000 | 332,000,000 |
Income tax payments, net of refunds | 64,000,000 | 51,000,000 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Assets acquired | 0 | 9,670,000,000 |
Liabilities assumed | 0 | (104,000,000) |
Cash paid | 0 | 9,566,000,000 |
Accrued capital expenditures | 417,000,000 | 373,000,000 |
Increase in finance lease obligations for investment in property, plant and equipment | 16,000,000 | 7,000,000 |
Common dividends issued in stock | 27,000,000 | 27,000,000 |
Preferred stock [Member] | ||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Dividends declared but not paid | 36,000,000 | 25,000,000 |
Common Stock [Member] | ||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Dividends declared but not paid | 266,000,000 | 243,000,000 |
San Diego Gas and Electric Company [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | 323,000,000 | 315,000,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 375,000,000 | 335,000,000 |
Deferred income taxes and investment tax credits | (27,000,000) | 47,000,000 |
Other | (2,000,000) | (27,000,000) |
Net change in other working capital components | (68,000,000) | (17,000,000) |
Changes in other noncurrent assets and liabilities, net | 19,000,000 | (9,000,000) |
Net cash provided by operating activities | 620,000,000 | 644,000,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (708,000,000) | (851,000,000) |
Purchases of nuclear decommissioning trust assets | (497,000,000) | (487,000,000) |
Proceeds from sales of nuclear decommissioning trust assets | 497,000,000 | 487,000,000 |
Other | 0 | 6,000,000 |
Net cash used in investing activities | (708,000,000) | (845,000,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuances of debt (maturities greater than 90 days) | 400,000,000 | 398,000,000 |
Payments on debt (maturities greater than 90 days) and finance leases | (36,000,000) | (23,000,000) |
(Decrease) increase in short-term debt, net | (273,000,000) | (172,000,000) |
Capital distributions made by VIE, net | (2,000,000) | (3,000,000) |
Debt issuance costs | (4,000,000) | (3,000,000) |
Net cash provided by financing activities | 85,000,000 | 197,000,000 |
Increase (decrease) in cash, cash equivalents and restricted cash, including discontinued operations | (3,000,000) | (4,000,000) |
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 | 37,000,000 | 29,000,000 |
Cash, cash equivalents and restricted cash, including discontinued operations, June 30 | 34,000,000 | 25,000,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 201,000,000 | 100,000,000 |
Income tax payments, net of refunds | 106,000,000 | 70,000,000 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures | 110,000,000 | 105,000,000 |
Increase in finance lease obligations for investment in property, plant and equipment | 7,000,000 | 0 |
Southern California Gas Company [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | 295,000,000 | 259,000,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 295,000,000 | 273,000,000 |
Deferred income taxes and investment tax credits | (75,000,000) | 81,000,000 |
Other | 13,000,000 | 0 |
Net change in other working capital components | 217,000,000 | 326,000,000 |
Insurance receivable for Aliso Canyon costs | 80,000,000 | (84,000,000) |
Changes in other noncurrent assets and liabilities, net | (151,000,000) | (106,000,000) |
Net cash provided by operating activities | 674,000,000 | 749,000,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (659,000,000) | (783,000,000) |
Increase in loans to affiliate, net | (94,000,000) | 0 |
Other | 2,000,000 | 4,000,000 |
Net cash used in investing activities | (751,000,000) | (779,000,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Preferred dividends paid by subsidiary | (1,000,000) | (1,000,000) |
Issuances of debt (maturities greater than 90 days) | 349,000,000 | 400,000,000 |
Payments on debt (maturities greater than 90 days) and finance leases | (2,000,000) | (500,000,000) |
(Decrease) increase in short-term debt, net | (256,000,000) | 210,000,000 |
Debt issuance costs | (3,000,000) | (4,000,000) |
Net cash provided by financing activities | 87,000,000 | 105,000,000 |
Increase (decrease) in cash, cash equivalents and restricted cash, including discontinued operations | 10,000,000 | 75,000,000 |
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 | 18,000,000 | 8,000,000 |
Cash, cash equivalents and restricted cash, including discontinued operations, June 30 | 28,000,000 | 83,000,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 60,000,000 | 51,000,000 |
Income tax payments, net of refunds | 87,000,000 | (4,000,000) |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures | 178,000,000 | 151,000,000 |
Increase in finance lease obligations for investment in property, plant and equipment | $ 9,000,000 | $ 7,000,000 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
Offering costs from sale of noncontrolling interests | $ 1 |
Convertible Preferred Stock [Member] | |
Offering costs from issuance of stock | 32 |
Common Stock [Member] | |
Offering costs from issuance of stock | $ 38 |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions |
Total |
Series A Preferred Stock [Member] |
Series B Preferred Stock [Member] |
Preferred stock [Member] |
Preferred stock [Member]
Series A Preferred Stock [Member]
|
Common Stock [Member] |
Retained earnings [Member] |
Retained earnings [Member]
Series A Preferred Stock [Member]
|
Retained earnings [Member]
Series B Preferred Stock [Member]
|
Accumulated other comprehensive income (loss) [Member] |
Shareholders' equity [Member] |
Shareholders' equity [Member]
Series A Preferred Stock [Member]
|
Shareholders' equity [Member]
Series B Preferred Stock [Member]
|
Noncontrolling Interest [Member] |
San Diego Gas and Electric Company [Member] |
San Diego Gas and Electric Company [Member]
Common Stock [Member]
|
San Diego Gas and Electric Company [Member]
Retained earnings [Member]
|
San Diego Gas and Electric Company [Member]
Accumulated other comprehensive income (loss) [Member]
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San Diego Gas and Electric Company [Member]
Shareholders' equity [Member]
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San Diego Gas and Electric Company [Member]
Noncontrolling Interest [Member]
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Southern California Gas Company [Member] |
Southern California Gas Company [Member]
Preferred stock [Member]
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Southern California Gas Company [Member]
Common Stock [Member]
|
Southern California Gas Company [Member]
Retained earnings [Member]
|
Southern California Gas Company [Member]
Accumulated other comprehensive income (loss) [Member]
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---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Cumulative-effect adjustment from change in accounting principle | $ (1) | $ 2 | $ (3) | $ (1) | |||||||||||||||||||||||||
Beginning Balance at Dec. 31, 2017 | 15,140 | $ 0 | $ 3,149 | 10,147 | (626) | 12,670 | $ 2,470 | $ 5,626 | $ 1,338 | $ 4,268 | $ (8) | $ 5,598 | $ 28 | $ 3,907 | $ 22 | $ 866 | $ 3,040 | $ (21) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Net income (loss) | (172) | (160) | (160) | (12) | 315 | 316 | 316 | (1) | 259 | 259 | |||||||||||||||||||
Other comprehensive (loss) income | 41 | 28 | 28 | 13 | 5 | 5 | 1 | 1 | |||||||||||||||||||||
Share-based compensation expense | 33 | 33 | 33 | ||||||||||||||||||||||||||
Preferred stock dividends declared | $ (53) | $ (53) | $ (53) | (1) | (1) | ||||||||||||||||||||||||
Common stock dividends declared | (480) | (480) | (480) | ||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||
Issuances of stock | 2,117 | 1,693 | $ 1,693 | 2,117 | 2,117 | 1,693 | |||||||||||||||||||||||
Repurchases of common stock | (20) | (20) | (20) | ||||||||||||||||||||||||||
Noncontrolling interests activities: Equity contributions | 1 | 1 | 1 | 1 | |||||||||||||||||||||||||
Noncontrolling interests activities: Distributions | (18) | (18) | (4) | (4) | |||||||||||||||||||||||||
Noncontrolling interests activities: Purchase | (1) | (1) | |||||||||||||||||||||||||||
Noncontrolling interests activities: Sale, net of offering costs | 85 | 85 | |||||||||||||||||||||||||||
Ending balance at Jun. 30, 2018 | 18,364 | 1,693 | 5,279 | 9,455 | (601) | 15,826 | 2,538 | 5,943 | 1,338 | 4,584 | (8) | 5,914 | 29 | 4,166 | 22 | 866 | 3,298 | (20) | |||||||||||
Beginning Balance at Mar. 31, 2018 | 18,305 | 1,693 | 4,436 | 10,260 | (545) | 15,844 | 2,461 | 5,798 | 1,338 | 4,438 | (8) | 5,768 | 30 | 4,132 | 22 | 866 | 3,265 | (21) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Net income (loss) | (530) | (535) | (535) | 5 | 146 | 146 | 146 | 34 | 34 | ||||||||||||||||||||
Other comprehensive (loss) income | (58) | (56) | (56) | (2) | 1 | 1 | 1 | 1 | |||||||||||||||||||||
Share-based compensation expense | 18 | 18 | 18 | ||||||||||||||||||||||||||
Preferred stock dividends declared | (25) | (25) | (25) | (1) | (1) | ||||||||||||||||||||||||
Common stock dividends declared | (244) | (244) | (244) | ||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||
Issuances of stock | 826 | 826 | 826 | ||||||||||||||||||||||||||
Repurchases of common stock | (1) | (1) | (1) | ||||||||||||||||||||||||||
Noncontrolling interests activities: Equity contributions | 1 | 1 | 1 | 1 | |||||||||||||||||||||||||
Noncontrolling interests activities: Distributions | (11) | (11) | (3) | (3) | |||||||||||||||||||||||||
Noncontrolling interests activities: Purchase | (1) | (1) | |||||||||||||||||||||||||||
Noncontrolling interests activities: Sale, net of offering costs | 85 | 85 | |||||||||||||||||||||||||||
Ending balance at Jun. 30, 2018 | 18,364 | 1,693 | 5,279 | 9,455 | (601) | 15,826 | 2,538 | 5,943 | 1,338 | 4,584 | (8) | 5,914 | 29 | 4,166 | 22 | 866 | 3,298 | (20) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Cumulative-effect adjustment from change in accounting principle | 15 | 57 | (42) | 15 | 0 | 2 | (2) | 0 | (2) | 2 | (4) | ||||||||||||||||||
Beginning Balance at Dec. 31, 2018 | 19,248 | [1] | 2,258 | 5,540 | 10,104 | (764) | 17,138 | 2,110 | 6,115 | [1] | 1,338 | 4,687 | (10) | 6,015 | 100 | 4,258 | 22 | 866 | 3,390 | (20) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Net income (loss) | 953 | 867 | 867 | 86 | 323 | 319 | 319 | 4 | 295 | 295 | |||||||||||||||||||
Other comprehensive (loss) income | (48) | (42) | (42) | (6) | 2 | 1 | 1 | 1 | 4 | 4 | |||||||||||||||||||
Share-based compensation expense | 39 | 39 | 39 | ||||||||||||||||||||||||||
Preferred stock dividends declared | (52) | $ (19) | (52) | $ (19) | (52) | $ (19) | (1) | (1) | |||||||||||||||||||||
Common stock dividends declared | (531) | (531) | (531) | ||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||
Issuances of stock | 47 | 47 | 47 | ||||||||||||||||||||||||||
Repurchases of common stock | (18) | (18) | (18) | ||||||||||||||||||||||||||
Noncontrolling interests activities: Distributions | (12) | (12) | (2) | (2) | |||||||||||||||||||||||||
Noncontrolling interests activities: Purchase | (28) | (3) | (3) | (25) | |||||||||||||||||||||||||
Noncontrolling interests activities: Decrease from divestiture | (159) | (159) | |||||||||||||||||||||||||||
Ending balance at Jun. 30, 2019 | 19,434 | 2,258 | 5,605 | 10,425 | (848) | 17,440 | 1,994 | 6,438 | 1,338 | 5,008 | (11) | 6,335 | 103 | 4,554 | 22 | 866 | 3,686 | (20) | |||||||||||
Beginning Balance at Mar. 31, 2019 | 19,470 | 2,258 | 5,568 | 10,337 | (817) | 17,346 | 2,124 | 6,293 | 1,338 | 4,865 | (12) | 6,191 | 102 | 4,520 | 22 | 866 | 3,656 | (24) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Net income (loss) | 435 | 390 | 390 | 45 | 146 | 143 | 143 | 3 | 31 | 31 | |||||||||||||||||||
Other comprehensive (loss) income | (37) | (31) | (31) | (6) | 1 | 1 | 1 | 4 | 4 | ||||||||||||||||||||
Share-based compensation expense | 18 | 18 | 18 | ||||||||||||||||||||||||||
Preferred stock dividends declared | $ (26) | $ (9) | $ (26) | $ (9) | $ (26) | $ (9) | (1) | (1) | |||||||||||||||||||||
Common stock dividends declared | (266) | (266) | (266) | ||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||
Issuances of stock | 23 | 23 | 23 | ||||||||||||||||||||||||||
Repurchases of common stock | (4) | (4) | (4) | ||||||||||||||||||||||||||
Noncontrolling interests activities: Distributions | (8) | (8) | (2) | (2) | |||||||||||||||||||||||||
Noncontrolling interests activities: Purchase | (2) | (2) | |||||||||||||||||||||||||||
Noncontrolling interests activities: Decrease from divestiture | (159) | (159) | |||||||||||||||||||||||||||
Ending balance at Jun. 30, 2019 | $ 19,434 | $ 2,258 | $ 5,605 | $ 10,425 | $ (848) | $ 17,440 | $ 1,994 | $ 6,438 | $ 1,338 | $ 5,008 | $ (11) | $ 6,335 | $ 103 | $ 4,554 | $ 22 | $ 866 | $ 3,686 | $ (20) | |||||||||||
|
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Dividends declared per share of common stock (in dollars per share) | $ 0.97 | $ 0.89 | $ 1.94 | $ 1.79 |
Southern California Gas Company [Member] | ||||
Dividends declared per share of preferred stock (in dollars per share) | 0.37 | 0.37 | 0.75 | 0.75 |
Series A Preferred Stock [Member] | ||||
Dividends declared per share of preferred stock (in dollars per share) | 1.50 | $ 1.50 | 3.00 | $ 3.10 |
Series B Preferred Stock [Member] | ||||
Dividends declared per share of preferred stock (in dollars per share) | $ 1.69 | $ 3.38 |
GENERAL INFORMATION AND OTHER FINANCIAL DATA |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GENERAL INFORMATION AND OTHER FINANCIAL DATA | GENERAL INFORMATION AND OTHER FINANCIAL DATA PRINCIPLES OF CONSOLIDATION Sempra Energy Sempra Energy’s Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based Fortune 500 energy-services holding company, and its consolidated subsidiaries and VIEs. Sempra Global is the holding company for most of our subsidiaries that are not subject to California or Texas utility regulation. Sempra Energy’s businesses were managed within six separate reportable segments until April 2019 and five separate reportable segments thereafter, which we discuss in Note 12. In the first quarter of 2019, our Sempra LNG & Midstream segment was renamed “Sempra LNG.” This segment name change had no impact on our historical position, results of operations, cash flow or segment level results previously reported. All references in these Notes to our reportable segments are not intended to refer to any legal entity with the same or similar name. SDG&E SDG&E’s Condensed Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E is the primary beneficiary, as we discuss below in “Variable Interest Entities.” SDG&E’s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. SoCalGas SoCalGas’ common stock is wholly owned by Pacific Enterprises, which is a wholly owned subsidiary of Sempra Energy. In this report, we refer to SDG&E and SoCalGas collectively as the California Utilities. BASIS OF PRESENTATION This is a combined report of Sempra Energy, SDG&E and SoCalGas. We provide separate information for SDG&E and SoCalGas as required. References in this report to “we,” “our” and “Sempra Energy Consolidated” are to Sempra Energy and its consolidated entities, unless otherwise indicated by the context. We have eliminated intercompany accounts and transactions within the consolidated financial statements of each reporting entity. Throughout this report, we refer to the following as Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements when discussed together or collectively:
We have prepared the Condensed Consolidated Financial Statements in conformity with U.S. GAAP and in accordance with the interim-period-reporting requirements of Form 10-Q. Results of operations for interim periods are not necessarily indicative of results for the entire year. We evaluated events and transactions that occurred after June 30, 2019 through the date the financial statements were issued and, in the opinion of management, the accompanying statements reflect all adjustments necessary for a fair presentation. These adjustments are only of a normal, recurring nature. All December 31, 2018 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2018 Consolidated Financial Statements in the Annual Report, which for Sempra Energy has been retrospectively adjusted for discontinued operations, as we discuss below. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the interim-period-reporting provisions of U.S. GAAP and the SEC. We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report and the impact of the adoption of new accounting standards on those policies in Note 2 below. We follow the same accounting policies for interim reporting purposes. You should read the information in this Quarterly Report in conjunction with the Annual Report. Discontinued Operations On January 25, 2019, our board of directors approved a plan to sell our South American businesses based on our strategic focus on North America. We determined that these businesses, which previously constituted the Sempra South American Utilities segment, and certain activities associated with these businesses, met the held-for-sale criteria. These businesses are presented as discontinued operations, as the planned sale represents a strategic shift that will have a major effect on our operations and financial results. Throughout this report, the financial information for all periods presented has been adjusted to reflect the presentation of these businesses as discontinued operations, which we discuss further in Note 5. Our discussions in the Notes below relate only to our continuing operations unless otherwise noted. Regulated Operations The California Utilities and Sempra Mexico’s natural gas distribution utility, Ecogas, prepare their financial statements in accordance with the provisions of U.S. GAAP governing rate-regulated operations. We discuss the effects of regulation and revenue recognition at our utilities in Notes 1 and 3 of the Notes to Consolidated Financial Statements in the Annual Report. Our Sempra Texas Utilities segment is comprised of our equity method investments in holding companies that own interests in regulated electric transmission and distribution utilities in Texas and prepare their financial statements in accordance with the provisions of U.S. GAAP governing rate-regulated operations. Our Sempra Mexico segment includes the operating companies of our subsidiary, IEnova. Certain business activities at IEnova are regulated by the Comisión Reguladora de Energía (Energy Regulatory Commission in Mexico) and meet the regulatory accounting requirements of U.S. GAAP. Pipeline projects under construction at IEnova that meet the regulatory accounting requirements of U.S. GAAP record the impact of AFUDC related to equity. We discuss AFUDC below and in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Condensed Consolidated Balance Sheets to the sum of such amounts reported on the Condensed Consolidated Statements of Cash Flows. We provide information about the nature of restricted cash in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.
INVENTORIES The following table presents the components of inventories by segment.
CAPITALIZED FINANCING COSTS Capitalized financing costs include capitalized interest costs and AFUDC related to both debt and equity financing of construction projects. We capitalize interest costs incurred to finance capital projects and interest on equity method investments that have not commenced planned principal operations. The table below summarizes capitalized interest and AFUDC.
VARIABLE INTEREST ENTITIES We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based on qualitative and quantitative analyses, which assess:
We will continue to evaluate our VIEs for any changes that may impact our determination of the primary beneficiary. SDG&E SDG&E’s power procurement is subject to reliability requirements that may require SDG&E to enter into various PPAs that include variable interests. SDG&E evaluates the respective entities to determine if variable interests exist and, based on the qualitative and quantitative analyses described above, if SDG&E, and thereby Sempra Energy, is the primary beneficiary. Tolling Agreements SDG&E has agreements under which it purchases power generated by facilities for which it supplies all of the natural gas to fuel the power plant (i.e., tolling agreements). SDG&E’s obligation to absorb natural gas costs may be a significant variable interest. In addition, SDG&E has the power to direct the dispatch of electricity generated by these facilities. Based on our analysis, the ability to direct the dispatch of electricity may have the most significant impact on the economic performance of the entity owning the generating facility because of the associated exposure to the cost of natural gas, which fuels the plants, and the value of electricity produced. To the extent that SDG&E (1) is obligated to purchase and provide fuel to operate the facility, (2) has the power to direct the dispatch, and (3) purchases all of the output from the facility for a substantial portion of the facility’s useful life, SDG&E may be the primary beneficiary of the entity owning the generating facility. SDG&E determines if it is the primary beneficiary in these cases based on a qualitative approach in which we consider the operational characteristics of the facility, including its expected power generation output relative to its capacity to generate and the financial structure of the entity, among other factors. If we determine that SDG&E is the primary beneficiary, SDG&E and Sempra Energy consolidate the entity that owns the facility as a VIE. Otay Mesa VIE SDG&E has a tolling agreement to purchase power generated at OMEC, a 605-MW generating facility. Under the terms of a related agreement, OMEC LLC can require SDG&E to purchase the power plant (referred to as the put option) on or before October 3, 2019 for $280 million, subject to adjustments, or upon earlier termination of the PPA. The facility owner, OMEC LLC, is a VIE, which we refer to as Otay Mesa VIE, of which SDG&E is the primary beneficiary. SDG&E has no OMEC LLC voting rights, holds no equity in OMEC LLC and does not operate OMEC. In addition to the risks absorbed under the tolling agreement, SDG&E absorbs separately through the put option a significant portion of the risk that the value of Otay Mesa VIE could decline. Accordingly, SDG&E and Sempra Energy consolidate Otay Mesa VIE. Otay Mesa VIE’s equity of $103 million at June 30, 2019 and $100 million at December 31, 2018 is included on the Condensed Consolidated Balance Sheets in Other Noncontrolling Interests for Sempra Energy and in Noncontrolling Interest for SDG&E. In October 2018, SDG&E and OMEC LLC signed a resource adequacy capacity agreement for a term that would commence at the expiration of the current tolling agreement in October 2019 and end in August 2024. The capacity agreement was approved by OMEC LLC’s lenders and the CPUC in December 2018 and February 2019, respectively. However, given certain pending requests for rehearing of the CPUC’s decision approving the capacity agreement, OMEC exercised the put option requiring SDG&E to purchase the power plant by October 3, 2019. The outcome of any rehearing requests could impact the effectiveness of the resource adequacy capacity agreement and whether the OMEC facility is purchased by SDG&E. OMEC LLC has a loan outstanding of $211 million at June 30, 2019, which we describe in Note 7 of the Notes to Consolidated Financial Statements in the Annual Report. SDG&E is not a party to the loan agreement and does not have any additional implicit or explicit financial responsibility to OMEC LLC, nor is SDG&E required to assume OMEC LLC’s loan under the put option. The Condensed Consolidated Statements of Operations of Sempra Energy and SDG&E include the following amounts associated with Otay Mesa VIE. The amounts are net of eliminations of transactions between SDG&E and Otay Mesa VIE. The captions in the table below correspond to SDG&E’s Condensed Consolidated Statements of Operations.
SDG&E has determined that no contracts, other than the one relating to Otay Mesa VIE described above, resulted in SDG&E being the primary beneficiary of a VIE at June 30, 2019. In addition to the tolling agreements described above, other variable interests involve various elements of fuel and power costs, and other components of cash flows expected to be paid to or received by our counterparties. In most of these cases, the expectation of variability is not substantial, and SDG&E generally does not have the power to direct activities that most significantly impact the economic performance of the other VIEs. In addition, SDG&E is not exposed to losses or gains as a result of these other VIEs, because all such variability would be recovered in rates. If our ongoing evaluation of these VIEs were to conclude that SDG&E becomes the primary beneficiary and consolidation by SDG&E becomes necessary, the effects could be significant to the financial position and liquidity of SDG&E and Sempra Energy. We provide additional information about PPAs with power plant facilities that are VIEs of which SDG&E is not the primary beneficiary in Note 16 of the Notes to Consolidated Financial Statements in the Annual Report. We provide additional information regarding Otay Mesa VIE in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra Texas Utilities On March 9, 2018, we completed the acquisition of an indirect, 100-percent interest in Oncor Holdings, a VIE that owns an 80.25-percent interest in Oncor. Sempra Energy is not the primary beneficiary of the VIE because of the structural and operational ring-fencing and governance measures in place that prevent us from having the power to direct the significant activities of Oncor Holdings. As a result, we do not consolidate Oncor Holdings and instead account for our ownership interest as an equity method investment. See Note 6 for additional information about our equity method investment in Oncor Holdings and restrictions on our ability to influence its activities. Our maximum exposure to loss, which fluctuates over time, from our interest in Oncor Holdings does not exceed the carrying value of our investment, which was $10,930 million at June 30, 2019 and $9,652 million at December 31, 2018. Sempra Renewables Certain of Sempra Renewables’ wind and solar power generation projects were held by limited liability companies whose members were Sempra Renewables and financial institutions. The financial institutions are noncontrolling tax equity investors to which earnings, tax attributes and cash flows were allocated in accordance with the respective limited liability company agreements. These entities were VIEs and Sempra Energy was the primary beneficiary, generally due to Sempra Energy’s power as the operator of the renewable energy projects to direct the activities that most significantly impacted the economic performance of these VIEs. As the primary beneficiary of these tax equity limited liability companies, we consolidated them. We sold the solar entities in December 2018 and the wind entities in April 2019. Sempra Energy’s Condensed Consolidated Balance Sheet includes equity of $158 million at December 31, 2018 of Other Noncontrolling Interests associated with these entities. Sempra Energy’s Condensed Consolidated Statements of Operations include the following amounts associated with the tax equity limited liability companies, net of eliminations of transactions between Sempra Energy and these entities.
We provide additional information regarding the tax equity limited liability companies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra LNG Cameron LNG JV is a VIE principally due to contractual provisions that transfer certain risks to customers. Sempra Energy is not the primary beneficiary of the VIE because we do not have the power to direct the most significant activities of Cameron LNG JV, and therefore we account for our investment in Cameron LNG JV under the equity method. The carrying value of our investment, including amounts recognized in AOCI related to interest-rate cash flow hedges at Cameron LNG JV, was $1,242 million at June 30, 2019 and $1,271 million at December 31, 2018. Our maximum exposure to loss, which fluctuates over time, includes the carrying value of our investment and the guarantees that we discuss in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. Other Variable Interest Entities Sempra Energy’s other businesses also enter into arrangements that could include variable interests. We evaluate these arrangements and applicable entities based on the qualitative and quantitative analyses described above. Certain of these entities are service or project companies that are VIEs because the total equity at risk is not sufficient for the entities to finance their activities without additional subordinated financial support. As the primary beneficiary of these companies, we consolidate them. The assets of these VIEs totaled approximately $651 million at June 30, 2019 and $286 million at December 31, 2018 and consisted primarily of PP&E and other long-term assets. Sempra Energy’s exposure to loss is equal to the carrying value of these assets. In all other cases, we have determined that these arrangements are not variable interests in a VIE and therefore are not subject to the U.S. GAAP requirements concerning the consolidation or disclosures of VIEs. PENSION AND OTHER POSTRETIREMENT BENEFITS Settlement Accounting for Lump Sum Payments In June 2019, Sempra Energy recorded settlement charges of $22 million in net periodic benefit cost for lump sum payments from its non-qualified pension plan that were in excess of the plan’s service cost plus interest cost. Sale of Qualified Pension Plan Annuity Contracts In March 2018, an insurance company purchased certain annuities for current annuitants in the SDG&E and SoCalGas qualified pension plans and assumed the obligation for payment of these annuities. At SDG&E in the first quarter of 2018 and at SoCalGas in the second quarter of 2018, the liability transferred for these annuities, plus the total year-to-date lump-sum payments, exceeded the settlement threshold, which triggered settlement accounting. This resulted in a reduction of the recorded pension liability and pension plan assets of $274 million at Sempra Energy Consolidated, including $97 million at SDG&E and $177 million at SoCalGas. This also resulted in settlement charges in net periodic benefit cost of $25 million and $39 million at Sempra Energy Consolidated, including $2 million and $16 million at SDG&E in the three months and six months ended June 30, 2018, respectively, and $23 million at SoCalGas in both the three months and six months ended June 30, 2018. The settlement charges were recorded as regulatory assets on the Condensed Consolidated Balance Sheets. Net Periodic Benefit Cost The following three tables provide the components of net periodic benefit cost.
Benefit Plan Contributions The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2019.
RABBI TRUST In support of its Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans, Sempra Energy maintains dedicated assets, including a Rabbi Trust and investments in life insurance contracts, which totaled $409 million and $416 million at June 30, 2019 and December 31, 2018, respectively. EARNINGS PER COMMON SHARE Basic EPS is calculated by dividing earnings attributable to common shares (from both continuing and discontinued operations) by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.
The potentially dilutive impact from stock options and RSUs is calculated under the treasury stock method. Under this method, proceeds based on the exercise price and unearned compensation are assumed to be used to repurchase shares on the open market at the average market price for the period, reducing the number of potential new shares to be issued and sometimes causing an antidilutive effect. The computation of diluted EPS for the three months and six months ended June 30, 2019 excludes 4,740 and 160,563 potentially dilutive shares, respectively, because to include them would be antidilutive for the period. The computation of diluted EPS for both the three months and the six months ended June 30, 2018 excludes 1,816 of such potentially dilutive shares. However, these shares could potentially dilute basic EPS in the future. The potentially dilutive impact from the forward sale of our common stock pursuant to the forward sale agreements that we entered into in 2018 is reflected in our diluted EPS calculation using the treasury stock method. We anticipate there will be a dilutive effect on our EPS when the average market price of shares of our common stock is above the applicable adjusted forward sale price, subject to increase or decrease based on the overnight bank funding rate, less a spread, and subject to decrease by amounts related to expected dividends on shares of our common stock during the term of the forward sale agreements. Additionally, if we decide to physically settle or net share settle the forward sale agreements, delivery of our shares to the forward purchasers on any such physical settlement or net share settlement of the forward sale agreements would result in dilution to our EPS. The potentially dilutive impact from mandatory convertible preferred stock that we issued in 2018 is calculated under the if-converted method. The computation of diluted EPS for both the three months and six months ended June 30, 2019 excludes 17,442,705 potentially dilutive shares and both the three months and six months ended June 30, 2018 excludes 15,296,567 potentially dilutive shares because to include them would be antidilutive for those periods. Pursuant to our Sempra Energy share-based compensation plans, Sempra Energy’s Board of Directors granted 261,075 non-qualified stock options that are exercisable over a three-year period, 389,825 performance-based RSUs and 259,940 service-based RSUs in the six months ended June 30, 2019, primarily in January. We discuss share-based compensation plans and related awards further in Note 10 of the Notes to Consolidated Financial Statements in the Annual Report. COMPREHENSIVE INCOME The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to NCI.
(2) Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above). SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS Sempra Energy Mandatory Convertible Preferred Stock Offerings In January 2018, we issued 17,250,000 shares of our series A preferred stock in a registered public offering resulting in net proceeds of approximately $1.69 billion. In July 2018, we issued 5,750,000 shares of our series B preferred stock in a registered public offering resulting in net proceeds of approximately $565 million. Each share of series A preferred stock and series B preferred stock has a liquidation value of $100.00. We discuss the preferred stock offerings in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra Energy Common Stock Offerings In January 2018, we completed the offering of 26,869,158 shares of our common stock, no par value, in a registered public offering at $107.00 per share (approximately $105.07 per share after deducting underwriting discounts), pursuant to forward sale agreements. We received net proceeds totaling approximately $1.27 billion from the sale of shares in the January 2018 offering (including $367 million to cover overallotments) and from the settlement of forward sales in the first quarter of 2018 under the forward sale agreements. We received net proceeds of approximately $800 million from the settlement of forward sales in the second quarter of 2018 under the forward sale agreements. In July 2018, we completed the offering of 11,212,500 shares of our common stock, no par value, in a registered public offering at $113.75 per share (approximately $111.87 per share after deducting underwriting discounts), pursuant to forward sale agreements. We received net proceeds of approximately $164 million from the sale of shares in the July 2018 offering to cover overallotments. We discuss the common stock offerings in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report. As of August 2, 2019, a total of 16,906,185 shares of Sempra Energy common stock remain subject to future settlement under these forward sale agreements, which may be settled on one or more dates specified by us occurring no later than December 15, 2019, which is the final settlement date under the agreements. Although we expect to settle the forward sale agreements entirely by the physical delivery of shares of our common stock in exchange for cash proceeds, we may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of our obligations under the forward sale agreements. The forward sale agreements are also subject to acceleration by the forward purchasers upon the occurrence of certain events. SoCalGas Preferred Stock The preferred stock at SoCalGas is presented at Sempra Energy as a noncontrolling interest. Sempra Energy records charges against income related to NCI for preferred stock dividends declared by SoCalGas. We provide additional information regarding preferred stock in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. Other Noncontrolling Interests Ownership interests that are held by owners other than Sempra Energy and SDG&E in subsidiaries or entities consolidated by them are accounted for and reported as NCI. Sempra Mexico In the first half of 2019, IEnova repurchased 2,200,000 shares of its outstanding common stock held by NCI for approximately $8 million, resulting in an increase in Sempra Energy’s ownership interest in IEnova from 66.5 percent at December 31, 2018 to 66.6 percent at June 30, 2019. Sempra Renewables As we discuss in Note 5, in April 2019, Sempra Renewables sold its remaining wind assets and investments, which included its wind tax equity arrangements. The remaining ownership interest in PXiSE Energy Solutions, LLC was subsumed into Parent and other. Sempra LNG On February 7, 2019, Sempra LNG purchased for $20 million the 9.1-percent minority interest in Bay Gas immediately prior to the sale of 100 percent of Bay Gas, which we discuss in Note 5. The following table provides information on noncontrolling ownership interests held by others (not including preferred shareholders) in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Condensed Consolidated Balance Sheets.
(3) In April 2019, PXiSE Energy Solutions, LLC was subsumed into Parent and other. At June 30, 2019, equity held by NCI was negligible. TRANSACTIONS WITH AFFILIATES We summarize amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas in the following table.
The following table summarizes revenues and cost of sales from unconsolidated affiliates.
Guarantees Sempra Energy has provided guarantees to certain of its JVs, including guarantees related to the financing of the Cameron LNG JV project, as we discuss in Note 6 below and in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. OTHER INCOME (EXPENSE), NET Other Income (Expense), Net on the Condensed Consolidated Statements of Operations consisted of the following:
(2) Includes gains of $7 million and $17 million in the three months and six months ended June 30, 2019, respectively, and losses of $47 million and $8 million in the three months and six months ended June 30, 2018, respectively, from translation to U.S. dollars of a Mexican peso-denominated loan to the IMG JV, which are offset by corresponding amounts included in Equity Earnings (Losses) on the Condensed Consolidated Statements of Operations. INCOME TAXES We provide our calculations of ETRs in the following table.
Sempra Energy, SDG&E and SoCalGas record income taxes for interim periods utilizing a forecasted ETR anticipated for the full year. Unusual and infrequent items and items that cannot be reliably estimated are recorded in the interim period in which they occur, which can result in variability in the ETR. For SDG&E and SoCalGas, the CPUC requires flow-through rate-making treatment for the current income tax benefit or expense arising from certain property-related and other temporary differences between the treatment for financial reporting and income tax, which will reverse over time. Under the regulatory accounting treatment required for these flow-through temporary differences, deferred income tax assets and liabilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which impacts the ETR. As a result, changes in the relative size of these items compared to pretax income, from period to period, can cause variations in the ETR. The following items are subject to flow-through treatment:
The AFUDC related to equity recorded for regulated construction projects at Sempra Mexico has similar flow-through treatment. We record income tax (expense) benefit from the transactional effects of foreign currency and inflation. Such effects are partially mitigated by net gains (losses) from foreign currency derivatives that are hedging Sempra Mexico parent’s exposure to movements in the Mexico peso from its controlling interest in IEnova. In the six months ended June 30, 2019, SDG&E and SoCalGas recorded income tax benefits of $31 million and $38 million, respectively, from the release of a regulatory liability established in connection with 2017 tax reform for excess deferred income tax balances that the CPUC directed be allocated to shareholders in a January 2019 decision. Discontinued Operations On January 25, 2019, our board of directors approved a plan to sell our South American businesses, as we discuss in Note 5. Prior to this decision, our repatriation estimate excluded post-2017 earnings and other basis differences related to our South American businesses. Because of our decision to sell our South American businesses, we no longer assert indefinite reinvestment of these basis differences and have recorded the following in discontinued operations in the six months ended June 30, 2019:
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NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS We describe below recent accounting pronouncements that have had or may have a significant effect on our financial condition, results of operations, cash flows or disclosures. ASU 2016-02, “Leases,” ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842,” ASU 2018-10, “Codification Improvements to Topic 842, Leases,” ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” ASU 2018-20, “Narrow-Scope Improvements for Lessors” and ASU 2019-01, “Leases (Topic 842): Codification Improvements” (collectively referred to as the “lease standard”): In 2016, the FASB began issuing the first in a series of ASUs intended to increase transparency and comparability among organizations with leasing activities. The most significant provision of the lease standard is the requirement that lessees recognize operating lease ROU assets and lease liabilities on the balance sheet. We adopted the lease standard on January 1, 2019, using the optional transition method to apply the new guidance prospectively as of January 1, 2019, rather than as of the earliest period presented. We elected the package of practical expedients that permits us to not reassess (a) whether a contract is or contains a lease, (b) lease classification or (c) determination of initial direct costs, which allows us to carry forward accounting conclusions under previous U.S. GAAP on contracts that commenced prior to adoption of the lease standard. We also elected the land easement practical expedient, which allows us to continue to account for pre-existing land easements under our accounting policy that existed before adoption of the lease standard. We did not elect the practical expedient to use hindsight in making judgments when determining the lease term. The adoption of the lease standard did not change our previously reported financial statements. However, in accordance with the lease standard, on a prospective basis, a significant portion of finance lease costs for PPAs that have historically been presented in Cost of Electric Fuel and Purchased Power are now presented in Depreciation and Amortization Expense and Interest Expense on Sempra Energy’s and SDG&E’s statements of operations. Additionally, the adoption of the lease standard had a material impact on our balance sheets at January 1, 2019 due to the initial recognition of ROU assets and lease liabilities for operating leases. Our finance leases were already included on our balance sheets prior to adoption of the lease standard, consistent with previous U.S. GAAP for capital leases. The following table shows the initial (decreases) increases on our balance sheets at January 1, 2019 from adoption of the lease standard.
As a result of the adoption of the lease standard, we derecognized our corporate headquarters building lease in accordance with the transition provisions for build-to-suit arrangements. On a prospective basis, we will account for the corporate headquarters building lease as an operating lease. The initial impact is included in the above table. We include additional disclosures about our leases in Note 11. ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”: ASU 2016-13, as amended by subsequently issued ASUs, changes how entities will measure credit losses for most financial assets and certain other instruments. The standard introduces an “expected credit loss” impairment model that requires immediate recognition of estimated credit losses expected to occur over the remaining life of most financial assets measured at amortized cost, including trade and other receivables, loan commitments and financial guarantees. ASU 2016-13 also requires use of an allowance to record estimated credit losses on available-for-sale debt securities and expands disclosure requirements regarding an entity’s assumptions, models and methods for estimating the credit losses. For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods therein, with early adoption permitted for fiscal years beginning after December 15, 2018. The amendments are to be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings at the beginning of the first reporting period in the year of adoption. We are currently evaluating the impact of the standard on our ongoing financial reporting and plan to adopt the standard on January 1, 2020. ASU 2017-04, “Simplifying the Test for Goodwill Impairment”: ASU 2017-04 removes the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation. An entity will be required to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the carrying amount of goodwill. For public entities, ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The amendments are to be applied on a prospective basis. We plan to adopt the standard on January 1, 2020. ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”: ASU 2018-02 contains amendments that allow a reclassification from AOCI to retained earnings for stranded tax effects resulting from the TCJA. Under ASU 2018-02, an entity is required to provide certain disclosures regarding stranded tax effects, including its accounting policy related to releasing the income tax effects from AOCI. The amendments in this update can be applied either as of the beginning of the period of adoption or retrospectively as of the date of enactment of the TCJA and to each period in which the effect of the TCJA is recognized. We adopted ASU 2018-02 on January 1, 2019 and reclassified the income tax effects of the TCJA from AOCI to retained earnings. The impact from adoption of ASU 2018-02 on January 1, 2019 was as follows:
▪ SoCalGas: increase of $2 million to beginning Retained Earnings, $2 million to noncurrent Regulatory Liabilities and $4 million to Accumulated Other Comprehensive Loss.
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUES | REVENUES We discuss revenue recognition for revenues from contracts with customers and from sources other than contracts with customers in Note 3 of the Notes to Consolidated Financial Statements in the Annual Report. The following table disaggregates our revenues from contracts with customers by major service line and market and provides a reconciliation to total revenues by segment. The majority of our revenue is recognized over time.
Remaining Performance Obligations For contracts greater than one year, at June 30, 2019, we expect to recognize revenue related to the fixed fee component of the consideration as shown below. SoCalGas did not have any such remaining performance obligations at June 30, 2019.
Contract Balances from Revenues from Contracts with Customers Activities within Sempra Energy’s contract liabilities are presented below. There were no contract liabilities at SDG&E or SoCalGas for the six months ended June 30, 2019 and 2018.
Receivables from Revenues from Contracts with Customers The table below shows receivable balances associated with revenues from contracts with customers on our Condensed Consolidated Balance Sheets.
(1) Amount is presented net of amounts due to unconsolidated affiliates on the Condensed Consolidated Balance Sheets, when right of offset exists.
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Regulatory Matters | REGULATORY MATTERS We discuss regulatory matters in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and information about new regulatory matters below. REGULATORY ASSETS AND LIABILITIES We show the details of regulatory assets and liabilities in the following table.
CALIFORNIA UTILITIES CPUC General Rate Case The CPUC uses a GRC proceeding to set sufficient rates to allow the California Utilities to recover their reasonable cost of O&M and to provide the opportunity to realize their authorized rates of return on their investment. 2019 General Rate Case On October 6, 2017, SDG&E and SoCalGas filed their 2019 GRC applications requesting CPUC approval of test year revenue requirements for 2019 and attrition year adjustments for 2020 through 2022. SDG&E and SoCalGas are seeking revenue requirements for 2019 of $2.203 billion and $2.937 billion, respectively, which is an increase of $221 million and $481 million over their respective 2018 revenue requirements (the 2019 proposed and 2018 actual revenue requirements reflect the impact of various updates made during the course of the proceeding). The California Utilities are proposing post-test year revenue requirement annual attrition percentages that are estimated to result in annual increases of approximately 5 percent to 7 percent at SDG&E and approximately 6 percent to 8 percent at SoCalGas. The original GRC applications filed in October 2017 did not reflect the impact of the TCJA, which we discuss in “2016 General Rate Case” below and in Note 8 of the Notes to Consolidated Financial Statements in the Annual Report. In April 2018, SDG&E and SoCalGas updated their applications to reflect the impact of the TCJA and filed a joint proposal to address the impacts. The TCJA impact to SDG&E is a reduction of approximately $58 million to its 2019 test year revenue requirement; however, SDG&E’s 2019 requested revenue requirement is unchanged as we evaluate potentially higher costs associated with mitigating wildfire risks. The TCJA impact to SoCalGas’ 2019 requested revenue requirement is a reduction of approximately $58 million, which is reflected in its updated request. During the course of the proceeding, Cal PA recommended 2019 revenue requirements of $1.918 billion and $2.695 billion for SDG&E and SoCalGas, respectively, which is a net decrease of $64 million for SDG&E and a net increase of $239 million for SoCalGas compared to the 2018 revenue requirements. Cal PA proposes a three-year annual attrition percentage of 4 percent for SDG&E and a range of 4 percent to 5 percent for SoCalGas. Cal PA recommends addressing SDG&E’s potential ownership of OMEC in a separate proceeding. As a result, Cal PA’s proposed 2019 revenue requirement does not include the estimated $68 million included in SDG&E’s GRC application associated with owning and operating the generating facility. As we discuss in Note 1, on March 28, 2019, OMEC LLC exercised the put option requiring SDG&E to purchase the power plant by October 3, 2019, which is subject to the results of certain pending rehearing requests. The Utility Reform Network and other intervenors oppose various components of our revenue requests in the 2019 GRC applications. We expect a preliminary decision from the CPUC in the coming weeks. The results of the rate case may materially and adversely differ from what is contained in the GRC applications. 2016 General Rate Case As we discuss in Notes 4 and 8 of the Notes to Consolidated Financial Statements in the Annual Report, the 2016 GRC FD required SDG&E and SoCalGas to each establish a two-way income tax expense memorandum account to track certain revenue variances resulting from certain differences between the income tax expense forecasted in the GRC and the income tax expense incurred from 2016 through 2018. At June 30, 2019, the recorded regulatory liability associated with these tracked amounts totaled $93 million and $100 million for SDG&E and SoCalGas, respectively. The recorded liability is primarily related to lower income tax expense incurred than was forecasted in the GRC relating to tax repairs deductions, self-developed software deductions and certain book-over-tax depreciation. The tracking accounts will remain open until the CPUC decides to close the accounts, which may be reviewed in the 2019 GRC proceedings. The 2016 GRC FD revenue requirement was authorized using a federal income tax rate of 35 percent. As a result of the TCJA, the federal income tax rate of 21 percent became effective January 1, 2018. Since SDG&E and SoCalGas continue to collect authorized revenues based on a 35 percent tax rate, SDG&E and SoCalGas are recording revenue deferrals, aligned with authorized seasonality factors, that reflect the estimated reduction in the revenue requirement. As of June 30, 2019, SDG&E and SoCalGas recorded regulatory liabilities of $113 million and $106 million, respectively, in anticipation of amounts that will benefit customers in future rates. SDG&E also recorded a $93 million regulatory liability at June 30, 2019, relating to its FERC jurisdictional rates, in anticipation of amounts that will benefit customers in future rates for the decrease in the federal income tax rate. CPUC Cost of Capital In April 2019, SDG&E and SoCalGas filed separate applications with the CPUC to update their cost of capital effective January 1, 2020. SDG&E proposed to adjust its authorized capital structure by increasing the amount of its common equity from 52 percent to 56 percent. SDG&E also proposed to increase its authorized ROE from 10.2 percent to 14.3 percent, including a premium for wildfire risk, and to increase its authorized return on rate base from 7.55 percent to 10.03 percent. On August 1, 2019, SDG&E filed supplemental testimony to update its ROE request, which modifies its proposal to increase its authorized ROE from 10.2 percent to 12.38 percent, including a revised premium for wildfire risk that reflects the impacts of AB 1054 and AB 111. Accordingly, SDG&E also modified its proposal to increase its authorized return on rate base from 7.55 percent to 8.95 percent. SoCalGas proposed to adjust its authorized capital structure by increasing the amount of its common equity from 52 percent to 56 percent. SoCalGas also proposed to increase its authorized ROE from 10.05 percent to 10.7 percent and to increase its authorized return on rate base from 7.34 percent to 7.85 percent. The schedule for the proceeding indicates a final decision in 2019. SDG&E FERC Formulaic Rate Filing In October 2018, SDG&E submitted its TO5 filing to the FERC. This proceeding establishes the transmission revenue requirement, including rate of return, for SDG&E’s FERC-regulated electric transmission operations and assets. SDG&E’s TO5 filing proposed, among other items, an increase to SDG&E’s current authorized FERC ROE from 10.05 percent to 11.2 percent. On December 31, 2018, the FERC issued its order accepting and suspending SDG&E’s TO5 filing and established hearing and settlement judge procedures. In the order, the FERC suspended the TO5 filing for five months, during which the existing TO4 rates remained in effect. The suspension period ended on June 1, 2019, when the proposed TO5 rates took effect, subject to refund and the outcome of the rate filing. As a result, until a new ROE is authorized, the current ROE of 10.05 percent is the basis of SDG&E’s FERC-related revenue recognition. In July 2019, the settlement judge reported that SDG&E and the settling parties had reached an impasse and directed the matter forward to hearings, which does not preclude continued settlement discussions among SDG&E and the settling parties. The hearing schedule indicates an initial decision in the second half of 2020. When we receive a final decision, SDG&E will record the cumulative earnings effect of retroactive application to June 1, 2019 for any difference between the current ROE and the approved ROE. SOCALGAS Billing Practices OII In May 2017, the CPUC issued an OII to determine whether SoCalGas violated any provisions of the California Public Utilities Code, General Orders, CPUC decisions, or other requirements pertaining to billing practices from 2014 through 2016. The CPUC examined the timeliness of monthly bills, extending the billing period for customers, and issuing estimated bills, including an examination of SoCalGas’ gas tariff rules. In January 2019, the CPUC ordered SoCalGas to pay $8 million in penalties, including $3 million payable to California’s general fund and $5 million to be credited to customers that received delayed bills (greater than 45 days) in the form of a $100 bill credit. SoCalGas filed an appeal of the CPUC’s conclusions in the order, which, in April 2019, the CPUC denied. SoCalGas filed a rehearing request on May 28, 2019, which is pending before the CPUC. The CPUC granted SoCalGas’ request to delay distribution of the $100 bill credit to customers until a final decision on the rehearing.SAN ONOFRE NUCLEAR GENERATING STATIONWe provide below updates to ongoing matters related to SONGS, a nuclear generating facility near San Clemente, California that ceased operations in June 2013, and in which SDG&E has a 20-percent ownership interest. We discuss SONGS further in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report. NUCLEAR DECOMMISSIONING AND FUNDING As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison began the decommissioning phase of the plant. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work for Unit 1 will be completed once Units 2 and 3 are dismantled and the spent fuel is removed from the site. The majority of the dismantlement work is expected to take 10 years. The spent fuel is currently being stored on-site, until the DOE identifies a spent fuel storage facility and puts in place a program for the fuel’s disposal, as we discuss below. SDG&E is responsible for approximately 20 percent of the total contract price. In accordance with state and federal requirements and regulations, SDG&E has assets held in the NDT to fund its share of decommissioning costs for SONGS Units 1, 2 and 3. The amounts collected in rates for SONGS’ decommissioning are invested in the NDT, which is comprised of externally managed trust funds. Amounts held by the NDT are invested in accordance with CPUC regulations. The NDT assets are presented on the Sempra Energy and SDG&E Condensed Consolidated Balance Sheets at fair value with the offsetting credits recorded in noncurrent Regulatory Liabilities. Except for the use of funds for the planning of decommissioning activities or NDT administrative costs, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs for Units 2 and 3. SDG&E has received authorization from the CPUC to access NDT funds of up to $455 million for 2013 through 2019 (2019 forecasted) SONGS decommissioning costs. This includes up to $93 million authorized by the CPUC in January 2019 to be withdrawn from the NDT for forecasted 2019 SONGS Units 2 and 3 costs as decommissioning costs are incurred. In December 2016, the IRS and the U.S. Department of the Treasury issued proposed regulations that clarify the definition of “nuclear decommissioning costs,” which are costs that may be paid for or reimbursed from a qualified trust fund. The proposed regulations state that costs related to the construction and maintenance of independent spent fuel management installations are included in the definition of “nuclear decommissioning costs.” The proposed regulations will be effective prospectively once they are finalized; however, the IRS has stated that it will not challenge taxpayer positions consistent with the proposed regulations for taxable years ending on or after the date the proposed regulations were issued. SDG&E is awaiting the adoption of, or additional refinement to, the proposed regulations before determining whether the proposed regulations will allow SDG&E to access the NDT funds for reimbursement or payment of the spent fuel management costs incurred in 2017 and subsequent years. Further clarification of the proposed regulations could enable SDG&E to access the NDT to recover spent fuel management costs before Edison reaches final settlement with the DOE regarding the DOE’s reimbursement of these costs. Historically, the DOE’s reimbursements of spent fuel storage costs have not resulted in timely or complete recovery of these costs. We discuss the DOE’s responsibility for spent nuclear fuel below. The IRS held public hearings on the proposed regulations in October 2017. It is unclear when clarification of the proposed regulations might be provided or when the proposed regulations will be finalized. The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 9.
The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales.
Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. ASSET RETIREMENT OBLIGATION AND SPENT NUCLEAR FUEL SDG&E’s ARO related to decommissioning costs for the SONGS units was $611 million at June 30, 2019. That amount includes the cost to decommission Units 2 and 3, and the remaining cost to complete the decommissioning of Unit 1, which is substantially complete. The ARO for all three units is based on a cost study prepared in 2017 that is pending CPUC approval. The ARO for Units 2 and 3 reflects the acceleration of the start of decommissioning of these units as a result of the early closure of the plant. SDG&E’s share of total decommissioning costs in 2019 dollars is approximately $834 million. U.S. DEPARTMENT OF ENERGY NUCLEAR FUEL DISPOSAL Spent nuclear fuel from SONGS is currently stored on-site in an ISFSI licensed by the NRC or temporarily in spent fuel pools. In October 2015, the California Coastal Commission approved Edison’s application for the proposed expansion of the ISFSI at SONGS. The ISFSI expansion began construction in 2016 and the transfer of the spent nuclear fuel from Units 2 and 3 to the ISFSI began in 2018. Edison suspended this transfer on August 3, 2018 due to an incident that occurred when a spent fuel canister was getting loaded into the ISFSI. The incident did not result in any harm to the public or workers and the canister was subsequently safely loaded into the ISFSI. In May 2019, the NRC completed its on-site inspection activities noting that it was satisfied with the corrective actions taken in response to the August 3, 2018 incident and had no objection to the resumption of spent fuel transfer operations. On July 10, 2019, the NRC released a supplemental inspection report affirming that Edison addressed previously identified issues regarding its fuel transfer operations to the NRC’s satisfaction. Edison resumed spent fuel transfer operations in July 2019. The ISFSI will operate until 2049, when it is assumed that the DOE will have taken custody of all the SONGS spent fuel. The ISFSI would then be decommissioned, and the site restored to its original environmental state. Until then, SONGS owners are responsible for interim storage of spent nuclear fuel at SONGS. The Nuclear Waste Policy Act of 1982 made the DOE responsible for accepting, transporting, and disposing of spent nuclear fuel. However, it is uncertain when the DOE will begin accepting spent nuclear fuel from SONGS. This delay will lead to increased costs for spent fuel storage. SDG&E will continue to support Edison in its pursuit of claims on behalf of the SONGS co-owners against the DOE for its failure to timely accept the spent nuclear fuel. However, it is unclear whether Edison will enter into a new settlement with the DOE or pursue litigation claims for spent fuel management costs incurred on or after January 1, 2017. NUCLEAR INSURANCE SDG&E and the other owners of SONGS have insurance to cover claims from nuclear liability incidents arising at SONGS. Currently, this insurance provides $450 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides an additional $110 million of coverage. If a nuclear liability loss occurs at SONGS and exceeds the $450 million insurance limit, this additional coverage would be available to provide a total of $560 million in coverage limits per incident. The SONGS owners, including SDG&E, also maintain nuclear property damage insurance at $1.5 billion, with a $500 million property damage sublimit on the ISFSI, which exceeds the minimum federal requirements of $1.06 billion. This insurance coverage is provided through NEIL. The NEIL policies have specific exclusions and limitations that can result in reduced or eliminated coverage. Insured members as a group are subject to retrospective premium assessments to cover losses sustained by NEIL under all issued policies. SDG&E could be assessed up to $10.4 million of retrospective premiums based on overall member claims. The nuclear property insurance program includes an industry aggregate loss limit for non-certified acts of terrorism (as defined by the Terrorism Risk Insurance Act) of $3.24 billion. This is the maximum amount that will be paid to insured members who suffer losses or damages from these non-certified terrorist acts.
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ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS | ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS We consolidate assets acquired and liabilities assumed as of the purchase date and include earnings from acquisitions in consolidated earnings after the purchase date. ACQUISITIONS Sempra Texas Utilities Oncor Holdings On March 9, 2018, Sempra Energy completed the acquisition of an indirect, 100-percent interest in Oncor Holdings, which owned 80.03 percent of Oncor, and other EFH assets and liabilities unrelated to Oncor, pursuant to the Merger Agreement with EFH. Under the Merger Agreement, we paid Merger Consideration of $9.45 billion in cash and an additional $31 million representing an adjustment for dividends and payments pursuant to a tax sharing agreement with Oncor and Oncor Holdings. Also on March 9, 2018, in a separate transaction, Sempra Energy, through its interest in Oncor Holdings, acquired an additional 0.22 percent of the outstanding membership interests in Oncor from OMI for $26 million in cash, bringing Sempra Energy’s indirect ownership in Oncor to 80.25 percent. TTI, an investment vehicle indirectly owned by third parties unaffiliated with Oncor Holdings or Sempra Energy, continues to own 19.75 percent of Oncor’s outstanding membership interests. We discuss this acquisition, including the purchase price allocation, in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. After satisfying all conditions precedent, including final approval from the PUCT, on May 16, 2019, Oncor completed the acquisition of 100 percent of the issued and outstanding shares of InfraREIT and 100 percent of the limited partnership units of its subsidiary, InfraREIT Partners, pursuant to the InfraREIT Merger Agreement. Under the InfraREIT Merger Agreement, Oncor paid merger consideration of $1,275 million, or $21 per share, plus certain transaction costs incurred by InfraREIT and its subsidiaries and paid by Oncor on their behalf, including $40 million for a management agreement termination fee. In connection with and immediately after the closing, Oncor also extinguished all of InfraREIT’s outstanding debt (totaling $953 million) by repaying an aggregate principal amount of $602 million on behalf of InfraREIT’s subsidiaries (using proceeds from a term loan and issuances of commercial paper), and exchanging an aggregate principal amount of $351 million of secured senior notes issued by InfraREIT subsidiaries for secured senior notes issued by Oncor. Oncor received a total of $1,330 million in capital contributions from Sempra Energy and certain indirect equity holders of TTI, proportionate to their respective ownership interest in Oncor, to fund the purchase price and certain expenses. We discuss Sempra Energy’s contribution in Note 6. As part of Oncor’s acquisition of interests in InfraREIT, immediately prior to closing the InfraREIT Merger Agreement, SDTS accepted and assumed certain assets and liabilities of SU in exchange for certain SDTS assets, pursuant to the Asset Exchange Agreement. SDTS received real property and other assets used in the electric transmission and distribution business in Central, North and West Texas, as well as the equity interests in GS Project Entity, LLC (a wholly owned subsidiary of SU) and SU received real property and other assets used in the electric transmission and distribution business near the Texas-Mexico border. Pursuant to the Asset Exchange Agreement, immediately prior to the completion of the exchange, SDTS became a wholly owned, indirect subsidiary of InfraREIT Partners. Sharyland Holdings On May 16, 2019, Sempra Energy acquired an indirect, 50-percent interest in Sharyland Holdings for $102 million (subject to customary closing adjustments) pursuant to the Securities Purchase Agreement. In connection with and prior to the consummation of the Securities Purchase Agreement, Sharyland Holdings owned 100 percent of the membership interests in SU and SU converted into a limited liability company, named Sharyland Utilities, L.L.C. We account for our indirect 50-percent interest in Sharyland Holdings as an equity method investment. Sempra South American Utilities Compañía Transmisora del Norte Grande S.A. On December 18, 2018, Chilquinta Energía acquired a 100-percent interest in Compañía Transmisora del Norte Grande S.A. through a sales and purchase agreement with AES Gener S.A. and its subsidiary Sociedad Eléctrica Angamos S.A. We completed the acquisition for a purchase price of $226 million and paid $208 million (net of $18 million cash acquired) with available cash on hand at Sempra South American Utilities. We accounted for this business combination using the acquisition method of accounting. We allocated the $208 million in cash paid ($226 million purchase price less $18 million of cash acquired) to the identifiable assets acquired and liabilities assumed based on their respective fair values, with the excess recognized as goodwill, which is included in assets held for sale in discontinued operations. We consider the purchase price allocation at the acquisition date to be final. We discuss this acquisition, including the purchase price allocation, in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. POTENTIAL ACQUISITION SDG&E As we discuss in Note 1, OMEC LLC, the owner of the 605-MW power plant, exercised the put option requiring SDG&E to purchase the power plant by October 3, 2019. If the put is not waived, SDG&E will acquire the power plant through the acquisition of the NCI in October 2019, and expects to fund the $280 million purchase price, subject to adjustments, with proceeds from issuances of commercial paper that may be replaced by long-term debt issuances. Upon acquisition of the NCI, the power plant will be subject to rate recovery. DIVESTITURES In June 2018, our board of directors approved a plan to divest certain non-utility natural gas storage assets in the southeast U.S., and all our U.S. wind and U.S. solar assets (collectively, the Assets). The plan to sell the Assets resulted from a comprehensive strategic portfolio review by the board of directors and management. As a result of our plan to sell the Assets, we recorded impairment charges totaling $1.5 billion ($900 million after tax and NCI) in June 2018. These charges included $1.3 billion ($755 million after tax and NCI) at Sempra LNG, which is included in Impairment Losses on Sempra Energy’s Condensed Consolidated Statements of Operations, and $200 million ($145 million after tax) at Sempra Renewables, which is included in Equity Earnings (Losses) on Sempra Energy’s Condensed Consolidated Statements of Operations. These impairment charges primarily represented an adjustment of the related assets’ carrying values to estimated fair values, less costs to sell when applicable, which we discuss in Notes 6 and 12 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra Renewables On April 22, 2019, Sempra Renewables completed the sale of its remaining wind assets and investments to AEP for $569 million, net of transaction costs, and recorded a $61 million ($45 million after tax and NCI) gain, which is included in Gain on Sale of Assets on the Condensed Consolidated Statements of Operations for the three months and six months ended June 30, 2019. Upon completion of the sale, remaining nominal business activities at Sempra Renewables were subsumed into Parent and other and the Sempra Renewables segment ceased to exist. Sempra LNG On February 7, 2019, Sempra LNG completed the sale of its non-utility natural gas storage assets in the southeast U.S. (comprised of Mississippi Hub and Bay Gas), which we classified as held for sale at December 31, 2018, to an affiliate of ArcLight Capital Partners and received cash proceeds of $322 million, net of transaction costs. In January 2019, Sempra LNG completed the sale of other non-utility assets for $5 million.DISCONTINUED OPERATIONS On January 25, 2019, our board of directors approved a plan to sell our South American businesses. We launched a formal process to sell our South American businesses and expect to complete the sale by the end of 2019. We determined that these businesses, which previously constituted the Sempra South American Utilities segment, and certain activities associated with those businesses, met the held-for-sale criteria. These businesses are presented as discontinued operations, as the planned sale represents a strategic shift that will have a major effect on our operations and financial results. We do not plan to have significant continuing involvement in or be able to exercise significant influence on the operating or financial policies of these operations after they are sold. Accordingly, the results of operations, financial position and cash flows for these businesses have been reclassified to discontinued operations for all periods presented. Discontinued operations that were previously in the Sempra South American Utilities segment include our 100-percent interest in Chilquinta Energía in Chile, our 83.6-percent interest in Luz del Sur in Peru and our interests in two energy-services companies, Tecnored and Tecsur, which provide electric construction and infrastructure services to Chilquinta Energía and Luz del Sur, respectively, as well as third parties. Summarized results from discontinued operations were as follows:
The following table summarizes the carrying amounts of the major classes of assets and related liabilities classified as held for sale in discontinued operations.
At June 30, 2019 and December 31, 2018, $460 million and $506 million, respectively, of cumulative foreign currency translation adjustments related to our South American businesses are included in AOCI.
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INVESTMENTS IN UNCONSOLIDATED ENTITIES |
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Investments in Unconsolidated Entities | INVESTMENTS IN UNCONSOLIDATED ENTITIES We generally account for investments under the equity method when we have significant influence over, but do not have control of, these entities. Equity earnings and losses, both before and net of income tax, are combined and presented as Equity Earnings (Losses) on the Condensed Consolidated Statements of Operations. See Note 1 for information on how equity earnings and losses before income taxes are factored into the calculations of our pretax income or loss and ETR. Our equity method investments include various domestic and foreign entities. Our domestic equity method investees are typically partnerships that are pass-through entities for income tax purposes and therefore they do not record income tax. Sempra Energy’s income tax on earnings from these equity method investees, other than Oncor Holdings as we discuss below, is included in Income Tax (Expense) Benefit on the Condensed Consolidated Statement of Operations. Our foreign equity method investees are corporations whose operations are generally taxable on a standalone basis in the countries in which they operate, and we recognize our equity in such income or loss net of investee income tax. Oncor is a domestic partnership for U.S. federal income tax purposes and is not included in the consolidated income tax return of Sempra Energy. Rather, only our pretax equity earnings from our investment in Oncor Holdings (a disregarded entity for tax purposes) are included in our consolidated income tax return. A tax sharing agreement with TTI, Oncor Holdings and Oncor provides for the calculation of an income tax liability substantially as if Oncor Holdings and Oncor were taxed as corporations and requires tax payments determined on that basis. While partnerships are not subject to income taxes, in consideration of the tax sharing agreement and Oncor being subject to the provisions of U.S. GAAP governing rate-regulated operations, Oncor recognizes amounts determined under cost-based regulatory rate-setting processes (with such costs including income taxes), as if it were taxed as a corporation. As a result, since Oncor Holdings consolidates Oncor, we recognize equity earnings from our investment in Oncor Holdings net of its recorded income tax. We provide additional information concerning our equity method investments in Note 5 above and in Notes 5 and 6 of the Notes to Consolidated Financial Statements in the Annual Report. SEMPRA TEXAS UTILITIES Oncor Holdings We account for our 100-percent ownership interest in Oncor Holdings as an equity method investment. Due to the ring-fencing measures, governance mechanisms, and commitments in effect following the Merger, we do not have the power to direct the significant activities of Oncor Holdings and Oncor. See Note 6 of the Notes to Consolidated Financial Statements in the Annual Report for additional information related to the restrictions on our ability to direct the significant activities of Oncor Holdings and Oncor. Sempra Energy contributed $1,180 million to Oncor in the six months ended June 30, 2019, which includes $1,067 million to fund Oncor’s acquisition of interests in InfraREIT and certain acquisition-related expenses, which we discuss in Note 5. In the six months ended June 30, 2018, Sempra Energy contributed $117 million to Oncor. In the six months ended June 30, 2019, Oncor Holdings distributed to Sempra Energy $108 million in dividends and $6 million in tax sharing payments. We provide summarized income statement information for Oncor Holdings in the following table.
Sharyland Holdings As we discuss in Note 5, on May 16, 2019, we acquired an indirect, 50-percent interest in Sharyland Holdings for $102 million, which we account for as an equity method investment. SEMPRA MEXICO Sempra Mexico invested cash of $25 million in the IMG JV in the six months ended June 30, 2018. SEMPRA RENEWABLES As we discuss in Note 5, Sempra Renewables recorded an other-than-temporary impairment on certain of its wind equity method investments totaling $200 million in June 2018. In April 2019, Sempra Renewables completed the sale of its remaining wind assets and investments. SEMPRA LNG Sempra LNG capitalized $26 million and $22 million of interest in the six months ended June 30, 2019 and 2018, respectively, related to its investment in Cameron LNG JV, which had not yet commenced planned principal operations. In the six months ended June 30, 2019 and 2018, Sempra LNG invested cash of $77 million and $102 million, respectively, in this unconsolidated JV. GUARANTEES At June 30, 2019, we had outstanding guarantees aggregating a maximum of $3.9 billion. The related carrying value of these guarantees was fully amortized at June 30, 2019. We discuss these guarantees in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report.
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DEBT AND CREDIT FACILITIES |
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Debt and Credit Facilities | DEBT AND CREDIT FACILITIES LINES OF CREDIT Primary U.S. Committed Lines of Credit Sempra Energy and Sempra Global On May 17, 2019, Sempra Energy and Sempra Global each entered into a separate five-year credit agreement, both expiring in May 2024. The credit agreements permit borrowings of up to $1.25 billion by Sempra Energy and $3.19 billion by Sempra Global. For both credit facilities, Citibank, N.A. serves as administrative agent for a syndicate of 23 lenders and no single lender has greater than a 6-percent share of either credit facility. The credit agreements supersede Sempra Energy’s $1.25 billion credit agreement and Sempra Global’s $3.19 billion credit agreement, which were both set to expire in 2020. Borrowings for each credit facility bear interest at benchmark rates plus a margin based on Sempra Energy’s credit ratings. California Utilities On May 17, 2019, SDG&E and SoCalGas each entered into a separate five-year credit agreement, both expiring in May 2024. The credit agreements permit borrowings of up to $1.5 billion by SDG&E and $750 million by SoCalGas. For both credit facilities, JPMorgan Chase Bank, N.A. serves as administrative agent for a syndicate of 23 lenders and no single lender has greater than a 6-percent share of either credit facility. The credit agreements replaced the California Utilities’ combined $1 billion credit agreement, which had a maximum of $750 million that could be borrowed by either utility, that was set to expire in 2020. Borrowings for each credit facility bear interest at benchmark rates plus a margin based on the borrowing utility’s credit ratings. At June 30, 2019, these four primary U.S. committed lines of credit permit Sempra Energy Consolidated to borrow an aggregate amount of approximately $6.69 billion. The principal terms of these committed lines of credit, which provide liquidity and support commercial paper, are described below.
Sempra Energy, SDG&E and SoCalGas each must maintain a ratio of indebtedness to total capitalization (as defined in each of the applicable credit facilities) of no more than 65 percent at the end of each quarter. At June 30, 2019, each entity was in compliance with this ratio and all other financial covenants under its respective credit facility. Foreign Committed Lines of Credit In February 2019, IEnova revised the terms of its five-year revolving credit facility by increasing the amount available under the facility from $1.17 billion to $1.5 billion, extending the expiration of the facility from August 2020 to February 2024 and increasing the syndicate of lenders from eight to 10. At June 30, 2019, available unused credit on this line was approximately $567 million. On April 11, 2019, IEnova entered into a three-year, $100 million revolving credit agreement with Scotiabank Inverlat, S.A. Under the agreement, withdrawals may be made for up to one year in either U.S. dollars or Mexican pesos. At June 30, 2019, no amounts were outstanding, and available unused credit was $100 million. Letters of Credit Outside of our domestic and foreign committed credit facilities, we have bilateral unsecured standby letter of credit capacity with select lenders that is uncommitted and supported by reimbursement agreements. At June 30, 2019, we had approximately $712 million in standby letters of credit outstanding under these agreements. WEIGHTED-AVERAGE INTEREST RATES The weighted-average interest rates on total short-term debt at Sempra Energy Consolidated were 3.10 percent and 2.99 percent at June 30, 2019 and December 31, 2018, respectively. The weighted-average interest rates on total short-term debt at SDG&E were 2.58 percent and 2.97 percent at June 30, 2019 and December 31, 2018, respectively. The weighted-average interest rate on total short-term debt at SoCalGas was 2.58 percent at December 31, 2018. LONG-TERM DEBT Sempra Energy In June 2019, we issued $758 million of 5.75-percent, junior subordinated notes maturing in 2079, with a par value of $25 per note. We received proceeds of $735 million (net of underwriting discounts and debt issuance costs of $23 million). We used the proceeds from the offering to repay outstanding commercial paper and for other general corporate purposes. We may redeem some or all of the notes before their maturity, as follows:
The notes are unsecured obligations and rank junior and subordinate in right of payment to our existing and future senior indebtedness. The notes will rank equally in right of payment with any future unsecured indebtedness that we may incur if the terms of such indebtedness provide that it ranks equally with the notes in right of payment. The notes are effectively subordinated in right of payment to any secured indebtedness that we have or may incur and to all indebtedness and other liabilities of our subsidiaries. SDG&E In May 2019, SDG&E issued $400 million of 4.10-percent, first mortgage bonds maturing in 2049. We received proceeds of $396 million (net of underwriting discounts and debt issuance costs of $4 million). SDG&E used the proceeds from the offering to repay outstanding commercial paper and for other general corporate purposes. SoCalGas In June 2019, SoCalGas issued $350 million of 3.95-percent, first mortgage bonds maturing in 2050. We received proceeds of $346 million (net of debt discount, underwriting discounts and debt issuance costs of $4 million). SoCalGas used the proceeds from the offering to repay outstanding commercial paper and for other general corporate purposes. INTEREST RATE SWAPS In February 2019, Sempra Energy entered into floating-to-fixed interest rate swaps to hedge interest payments on the $850 million of variable rate notes issued in October 2017 and maturing in March 2021, resulting in an all-in fixed rate of 3.069 percent. We discuss our interest rate swaps to hedge cash flows in Note 8.
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DERIVATIVE FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS We use derivative instruments primarily to manage exposures arising in the normal course of business. Our principal exposures are commodity market risk, benchmark interest rate risk and foreign exchange rate exposures. Our use of derivatives for these risks is integrated into the economic management of our anticipated revenues, anticipated expenses, assets and liabilities. Derivatives may be effective in mitigating these risks (1) that could lead to declines in anticipated revenues or increases in anticipated expenses, or (2) that our asset values may fall or our liabilities increase. Accordingly, our derivative activity summarized below generally represents an impact that is intended to offset associated revenues, expenses, assets or liabilities that are not included in the tables below. In certain cases, we apply the normal purchase or sale exception to derivative instruments and have other commodity contracts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. In all other cases, we record derivatives at fair value on the Condensed Consolidated Balance Sheets. We have derivatives that are either (1) cash flow hedges, (2) fair value hedges, or (3) undesignated. Depending on the applicability of hedge accounting and, for the California Utilities and other operations subject to regulatory accounting, the requirement to pass impacts through to customers, the impact of derivative instruments may be offset in OCI (cash flow hedges), on the balance sheet (regulatory offsets), or recognized in earnings (fair value hedges). We classify cash flows from the principal settlements of cross-currency swaps that hedge exposure related to Mexican peso-denominated debt as financing activities and settlements of other derivative instruments as operating activities on the Condensed Consolidated Statements of Cash Flows. HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated cash flows associated with revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that the future cash flows of a given revenue or expense item may vary, and other criteria. ENERGY DERIVATIVES Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business, as follows:
The following table summarizes net energy derivative volumes.
In addition to the amounts noted above, we use commodity derivatives to manage risks associated with the physical locations of contractual obligations and assets, such as natural gas purchases and sales. INTEREST RATE DERIVATIVES We are exposed to interest rates primarily as a result of our current and expected use of financing. The California Utilities, as well as Sempra Energy and its other subsidiaries and JVs, periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. In addition, we may utilize interest rate swaps, typically designated as cash flow hedges, to lock in interest rates on outstanding debt or in anticipation of future financings. Separately, Otay Mesa VIE has entered into interest rate swap agreements, designated as cash flow hedges, to moderate its exposure to interest rate changes. The following table presents the net notional amounts of our interest rate derivatives, excluding JVs.
FOREIGN CURRENCY DERIVATIVES We utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and JVs. These cash flow hedges exchange our Mexican peso-denominated principal and interest payments into the U.S. dollar and swap Mexican variable interest rates for U.S. fixed interest rates. From time to time, Sempra Mexico and its JVs may use other foreign currency derivatives to hedge exposures related to cash flows associated with revenues from contracts denominated in Mexican pesos that are indexed to the U.S. dollar. We are also exposed to exchange rate movements at our Mexican subsidiaries and JVs, which have U.S. dollar-denominated cash balances, receivables, payables and debt (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. They also have deferred income tax assets and liabilities denominated in the Mexican peso, which must be translated to U.S. dollars for financial reporting purposes. In addition, monetary assets and liabilities and certain nonmonetary assets and liabilities are adjusted for Mexican inflation for Mexican income tax purposes. We utilize foreign currency derivatives as a means to manage the risk of exposure to significant fluctuations in our income tax expense and equity earnings from these impacts; however, we generally do not hedge our deferred income tax assets and liabilities or for inflation. The following table presents the net notional amounts of our foreign currency derivatives, excluding JVs.
FINANCIAL STATEMENT PRESENTATION The Condensed Consolidated Balance Sheets reflect the offsetting of net derivative positions and cash collateral with the same counterparty when a legal right of offset exists. The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets, including the amount of cash collateral receivables that were not offset, as the cash collateral was in excess of liability positions.
(1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Includes a negligible amount for Otay Mesa VIE. (3) Normal purchase contracts previously measured at fair value are excluded.
(1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. (3) Normal purchase contracts previously measured at fair value are excluded. The table below includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI:
For Sempra Energy Consolidated, we expect that net losses of $2 million, which are net of income tax benefit, that are currently recorded in AOCI (including $1 million of losses in NCI related to Otay Mesa VIE at SDG&E) related to cash flow hedges will be reclassified into earnings during the next 12 months as the hedged items affect earnings. SoCalGas expects that $1 million of losses, net of income tax benefit, that are currently recorded in AOCI related to cash flow hedges will be reclassified into earnings during the next 12 months as the hedged items affect earnings. Actual amounts ultimately reclassified into earnings depend on the interest rates in effect when derivative contracts mature. For all forecasted transactions, the maximum remaining term over which we are hedging exposure to the variability of cash flows at June 30, 2019 is approximately 13 years and less than one year for Sempra Energy Consolidated and SDG&E, respectively. The maximum remaining term for which we are hedging exposure to the variability of cash flows at our equity method investees is 15 years. The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations.
CONTINGENT FEATURES For Sempra Energy Consolidated, SDG&E and SoCalGas, certain of our derivative instruments contain credit limits which vary depending on our credit ratings. Generally, these provisions, if applicable, may reduce our credit limit if a specified credit rating agency reduces our ratings. In certain cases, if our credit ratings were to fall below investment grade, the counterparty to these derivative liability instruments could request immediate payment or demand immediate and ongoing full collateralization. For Sempra Energy Consolidated, the total fair value of this group of derivative instruments in a net liability position at June 30, 2019 and December 31, 2018 was $7 million and $16 million, respectively. For SoCalGas, the total fair value of this group of derivative instruments in a net liability position at June 30, 2019 and December 31, 2018 was $2 million and $5 million, respectively. At June 30, 2019, if the credit ratings of Sempra Energy or SoCalGas were reduced below investment grade, $8 million and $2 million, respectively, of additional assets could be required to be posted as collateral for these derivative contracts. For Sempra Energy Consolidated, SDG&E and SoCalGas, some of our derivative contracts contain a provision that would permit the counterparty, in certain circumstances, to request adequate assurance of our performance under the contracts. Such additional assurance, if needed, is not material and is not included in the amounts above.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS We discuss the valuation techniques and inputs we use to measure fair value and the definition of the three levels of the fair value hierarchy in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. RECURRING FAIR VALUE MEASURES The three tables below, by level within the fair value hierarchy, set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis at June 30, 2019 and December 31, 2018. 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. We have not changed the valuation techniques or types of inputs we use to measure recurring fair value since December 31, 2018. The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 8 under “Financial Statement Presentation.” 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 (other than a $5 million investment at June 30, 2019 measured at net asset value):
Level 3 Information The table below sets forth reconciliations of changes in the fair value of CRRs and long-term, fixed-price electricity positions classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E.
Inputs used to determine the fair value of CRRs and fixed-price electricity positions are reviewed and compared with market conditions to determine reasonableness. SDG&E expects all costs related to these instruments to be recoverable through customer rates. As such, there is no impact to earnings from changes in the fair value of these instruments. 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:
The impact associated with discounting is negligible. 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 higher (lower) fair value measurement. We summarize CRR volumes in Note 8. Long-term, fixed-price electricity positions that are valued using significant unobservable data are classified as Level 3 because the contract terms relate to a delivery location or tenor for which observable market rate information is not available. The fair value of the net electricity positions classified as Level 3 is derived from a discounted cash flow model using market electricity forward price inputs. The range and weighted-average price of these inputs at June 30 were as follows:
A significant increase (decrease) in market electricity forward prices would result in a significantly higher (lower) fair value. We summarize long-term, fixed-price electricity position volumes in Note 8. Realized gains and losses associated with CRRs and long-term electricity positions, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Because unrealized gains and losses are recorded as regulatory assets and liabilities, they do not affect earnings. Fair Value of Financial Instruments The fair values of certain of our financial instruments (cash, accounts and notes receivable, short-term amounts due to/from unconsolidated affiliates, dividends and accounts payable, 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, Cash Balance Restoration and Deferred Compensation Plans 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 Condensed Consolidated Balance Sheets.
We provide the fair values for the securities held in the NDT related to SONGS in Note 10.
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SAN ONOFRE NUCLEAR GENERATING STATION |
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San Onofre Nuclear Generating Station | REGULATORY MATTERS We discuss regulatory matters in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and information about new regulatory matters below. REGULATORY ASSETS AND LIABILITIES We show the details of regulatory assets and liabilities in the following table.
CALIFORNIA UTILITIES CPUC General Rate Case The CPUC uses a GRC proceeding to set sufficient rates to allow the California Utilities to recover their reasonable cost of O&M and to provide the opportunity to realize their authorized rates of return on their investment. 2019 General Rate Case On October 6, 2017, SDG&E and SoCalGas filed their 2019 GRC applications requesting CPUC approval of test year revenue requirements for 2019 and attrition year adjustments for 2020 through 2022. SDG&E and SoCalGas are seeking revenue requirements for 2019 of $2.203 billion and $2.937 billion, respectively, which is an increase of $221 million and $481 million over their respective 2018 revenue requirements (the 2019 proposed and 2018 actual revenue requirements reflect the impact of various updates made during the course of the proceeding). The California Utilities are proposing post-test year revenue requirement annual attrition percentages that are estimated to result in annual increases of approximately 5 percent to 7 percent at SDG&E and approximately 6 percent to 8 percent at SoCalGas. The original GRC applications filed in October 2017 did not reflect the impact of the TCJA, which we discuss in “2016 General Rate Case” below and in Note 8 of the Notes to Consolidated Financial Statements in the Annual Report. In April 2018, SDG&E and SoCalGas updated their applications to reflect the impact of the TCJA and filed a joint proposal to address the impacts. The TCJA impact to SDG&E is a reduction of approximately $58 million to its 2019 test year revenue requirement; however, SDG&E’s 2019 requested revenue requirement is unchanged as we evaluate potentially higher costs associated with mitigating wildfire risks. The TCJA impact to SoCalGas’ 2019 requested revenue requirement is a reduction of approximately $58 million, which is reflected in its updated request. During the course of the proceeding, Cal PA recommended 2019 revenue requirements of $1.918 billion and $2.695 billion for SDG&E and SoCalGas, respectively, which is a net decrease of $64 million for SDG&E and a net increase of $239 million for SoCalGas compared to the 2018 revenue requirements. Cal PA proposes a three-year annual attrition percentage of 4 percent for SDG&E and a range of 4 percent to 5 percent for SoCalGas. Cal PA recommends addressing SDG&E’s potential ownership of OMEC in a separate proceeding. As a result, Cal PA’s proposed 2019 revenue requirement does not include the estimated $68 million included in SDG&E’s GRC application associated with owning and operating the generating facility. As we discuss in Note 1, on March 28, 2019, OMEC LLC exercised the put option requiring SDG&E to purchase the power plant by October 3, 2019, which is subject to the results of certain pending rehearing requests. The Utility Reform Network and other intervenors oppose various components of our revenue requests in the 2019 GRC applications. We expect a preliminary decision from the CPUC in the coming weeks. The results of the rate case may materially and adversely differ from what is contained in the GRC applications. 2016 General Rate Case As we discuss in Notes 4 and 8 of the Notes to Consolidated Financial Statements in the Annual Report, the 2016 GRC FD required SDG&E and SoCalGas to each establish a two-way income tax expense memorandum account to track certain revenue variances resulting from certain differences between the income tax expense forecasted in the GRC and the income tax expense incurred from 2016 through 2018. At June 30, 2019, the recorded regulatory liability associated with these tracked amounts totaled $93 million and $100 million for SDG&E and SoCalGas, respectively. The recorded liability is primarily related to lower income tax expense incurred than was forecasted in the GRC relating to tax repairs deductions, self-developed software deductions and certain book-over-tax depreciation. The tracking accounts will remain open until the CPUC decides to close the accounts, which may be reviewed in the 2019 GRC proceedings. The 2016 GRC FD revenue requirement was authorized using a federal income tax rate of 35 percent. As a result of the TCJA, the federal income tax rate of 21 percent became effective January 1, 2018. Since SDG&E and SoCalGas continue to collect authorized revenues based on a 35 percent tax rate, SDG&E and SoCalGas are recording revenue deferrals, aligned with authorized seasonality factors, that reflect the estimated reduction in the revenue requirement. As of June 30, 2019, SDG&E and SoCalGas recorded regulatory liabilities of $113 million and $106 million, respectively, in anticipation of amounts that will benefit customers in future rates. SDG&E also recorded a $93 million regulatory liability at June 30, 2019, relating to its FERC jurisdictional rates, in anticipation of amounts that will benefit customers in future rates for the decrease in the federal income tax rate. CPUC Cost of Capital In April 2019, SDG&E and SoCalGas filed separate applications with the CPUC to update their cost of capital effective January 1, 2020. SDG&E proposed to adjust its authorized capital structure by increasing the amount of its common equity from 52 percent to 56 percent. SDG&E also proposed to increase its authorized ROE from 10.2 percent to 14.3 percent, including a premium for wildfire risk, and to increase its authorized return on rate base from 7.55 percent to 10.03 percent. On August 1, 2019, SDG&E filed supplemental testimony to update its ROE request, which modifies its proposal to increase its authorized ROE from 10.2 percent to 12.38 percent, including a revised premium for wildfire risk that reflects the impacts of AB 1054 and AB 111. Accordingly, SDG&E also modified its proposal to increase its authorized return on rate base from 7.55 percent to 8.95 percent. SoCalGas proposed to adjust its authorized capital structure by increasing the amount of its common equity from 52 percent to 56 percent. SoCalGas also proposed to increase its authorized ROE from 10.05 percent to 10.7 percent and to increase its authorized return on rate base from 7.34 percent to 7.85 percent. The schedule for the proceeding indicates a final decision in 2019. SDG&E FERC Formulaic Rate Filing In October 2018, SDG&E submitted its TO5 filing to the FERC. This proceeding establishes the transmission revenue requirement, including rate of return, for SDG&E’s FERC-regulated electric transmission operations and assets. SDG&E’s TO5 filing proposed, among other items, an increase to SDG&E’s current authorized FERC ROE from 10.05 percent to 11.2 percent. On December 31, 2018, the FERC issued its order accepting and suspending SDG&E’s TO5 filing and established hearing and settlement judge procedures. In the order, the FERC suspended the TO5 filing for five months, during which the existing TO4 rates remained in effect. The suspension period ended on June 1, 2019, when the proposed TO5 rates took effect, subject to refund and the outcome of the rate filing. As a result, until a new ROE is authorized, the current ROE of 10.05 percent is the basis of SDG&E’s FERC-related revenue recognition. In July 2019, the settlement judge reported that SDG&E and the settling parties had reached an impasse and directed the matter forward to hearings, which does not preclude continued settlement discussions among SDG&E and the settling parties. The hearing schedule indicates an initial decision in the second half of 2020. When we receive a final decision, SDG&E will record the cumulative earnings effect of retroactive application to June 1, 2019 for any difference between the current ROE and the approved ROE. SOCALGAS Billing Practices OII In May 2017, the CPUC issued an OII to determine whether SoCalGas violated any provisions of the California Public Utilities Code, General Orders, CPUC decisions, or other requirements pertaining to billing practices from 2014 through 2016. The CPUC examined the timeliness of monthly bills, extending the billing period for customers, and issuing estimated bills, including an examination of SoCalGas’ gas tariff rules. In January 2019, the CPUC ordered SoCalGas to pay $8 million in penalties, including $3 million payable to California’s general fund and $5 million to be credited to customers that received delayed bills (greater than 45 days) in the form of a $100 bill credit. SoCalGas filed an appeal of the CPUC’s conclusions in the order, which, in April 2019, the CPUC denied. SoCalGas filed a rehearing request on May 28, 2019, which is pending before the CPUC. The CPUC granted SoCalGas’ request to delay distribution of the $100 bill credit to customers until a final decision on the rehearing.SAN ONOFRE NUCLEAR GENERATING STATIONWe provide below updates to ongoing matters related to SONGS, a nuclear generating facility near San Clemente, California that ceased operations in June 2013, and in which SDG&E has a 20-percent ownership interest. We discuss SONGS further in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report. NUCLEAR DECOMMISSIONING AND FUNDING As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison began the decommissioning phase of the plant. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work for Unit 1 will be completed once Units 2 and 3 are dismantled and the spent fuel is removed from the site. The majority of the dismantlement work is expected to take 10 years. The spent fuel is currently being stored on-site, until the DOE identifies a spent fuel storage facility and puts in place a program for the fuel’s disposal, as we discuss below. SDG&E is responsible for approximately 20 percent of the total contract price. In accordance with state and federal requirements and regulations, SDG&E has assets held in the NDT to fund its share of decommissioning costs for SONGS Units 1, 2 and 3. The amounts collected in rates for SONGS’ decommissioning are invested in the NDT, which is comprised of externally managed trust funds. Amounts held by the NDT are invested in accordance with CPUC regulations. The NDT assets are presented on the Sempra Energy and SDG&E Condensed Consolidated Balance Sheets at fair value with the offsetting credits recorded in noncurrent Regulatory Liabilities. Except for the use of funds for the planning of decommissioning activities or NDT administrative costs, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs for Units 2 and 3. SDG&E has received authorization from the CPUC to access NDT funds of up to $455 million for 2013 through 2019 (2019 forecasted) SONGS decommissioning costs. This includes up to $93 million authorized by the CPUC in January 2019 to be withdrawn from the NDT for forecasted 2019 SONGS Units 2 and 3 costs as decommissioning costs are incurred. In December 2016, the IRS and the U.S. Department of the Treasury issued proposed regulations that clarify the definition of “nuclear decommissioning costs,” which are costs that may be paid for or reimbursed from a qualified trust fund. The proposed regulations state that costs related to the construction and maintenance of independent spent fuel management installations are included in the definition of “nuclear decommissioning costs.” The proposed regulations will be effective prospectively once they are finalized; however, the IRS has stated that it will not challenge taxpayer positions consistent with the proposed regulations for taxable years ending on or after the date the proposed regulations were issued. SDG&E is awaiting the adoption of, or additional refinement to, the proposed regulations before determining whether the proposed regulations will allow SDG&E to access the NDT funds for reimbursement or payment of the spent fuel management costs incurred in 2017 and subsequent years. Further clarification of the proposed regulations could enable SDG&E to access the NDT to recover spent fuel management costs before Edison reaches final settlement with the DOE regarding the DOE’s reimbursement of these costs. Historically, the DOE’s reimbursements of spent fuel storage costs have not resulted in timely or complete recovery of these costs. We discuss the DOE’s responsibility for spent nuclear fuel below. The IRS held public hearings on the proposed regulations in October 2017. It is unclear when clarification of the proposed regulations might be provided or when the proposed regulations will be finalized. The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 9.
The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales.
Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. ASSET RETIREMENT OBLIGATION AND SPENT NUCLEAR FUEL SDG&E’s ARO related to decommissioning costs for the SONGS units was $611 million at June 30, 2019. That amount includes the cost to decommission Units 2 and 3, and the remaining cost to complete the decommissioning of Unit 1, which is substantially complete. The ARO for all three units is based on a cost study prepared in 2017 that is pending CPUC approval. The ARO for Units 2 and 3 reflects the acceleration of the start of decommissioning of these units as a result of the early closure of the plant. SDG&E’s share of total decommissioning costs in 2019 dollars is approximately $834 million. U.S. DEPARTMENT OF ENERGY NUCLEAR FUEL DISPOSAL Spent nuclear fuel from SONGS is currently stored on-site in an ISFSI licensed by the NRC or temporarily in spent fuel pools. In October 2015, the California Coastal Commission approved Edison’s application for the proposed expansion of the ISFSI at SONGS. The ISFSI expansion began construction in 2016 and the transfer of the spent nuclear fuel from Units 2 and 3 to the ISFSI began in 2018. Edison suspended this transfer on August 3, 2018 due to an incident that occurred when a spent fuel canister was getting loaded into the ISFSI. The incident did not result in any harm to the public or workers and the canister was subsequently safely loaded into the ISFSI. In May 2019, the NRC completed its on-site inspection activities noting that it was satisfied with the corrective actions taken in response to the August 3, 2018 incident and had no objection to the resumption of spent fuel transfer operations. On July 10, 2019, the NRC released a supplemental inspection report affirming that Edison addressed previously identified issues regarding its fuel transfer operations to the NRC’s satisfaction. Edison resumed spent fuel transfer operations in July 2019. The ISFSI will operate until 2049, when it is assumed that the DOE will have taken custody of all the SONGS spent fuel. The ISFSI would then be decommissioned, and the site restored to its original environmental state. Until then, SONGS owners are responsible for interim storage of spent nuclear fuel at SONGS. The Nuclear Waste Policy Act of 1982 made the DOE responsible for accepting, transporting, and disposing of spent nuclear fuel. However, it is uncertain when the DOE will begin accepting spent nuclear fuel from SONGS. This delay will lead to increased costs for spent fuel storage. SDG&E will continue to support Edison in its pursuit of claims on behalf of the SONGS co-owners against the DOE for its failure to timely accept the spent nuclear fuel. However, it is unclear whether Edison will enter into a new settlement with the DOE or pursue litigation claims for spent fuel management costs incurred on or after January 1, 2017. NUCLEAR INSURANCE SDG&E and the other owners of SONGS have insurance to cover claims from nuclear liability incidents arising at SONGS. Currently, this insurance provides $450 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides an additional $110 million of coverage. If a nuclear liability loss occurs at SONGS and exceeds the $450 million insurance limit, this additional coverage would be available to provide a total of $560 million in coverage limits per incident. The SONGS owners, including SDG&E, also maintain nuclear property damage insurance at $1.5 billion, with a $500 million property damage sublimit on the ISFSI, which exceeds the minimum federal requirements of $1.06 billion. This insurance coverage is provided through NEIL. The NEIL policies have specific exclusions and limitations that can result in reduced or eliminated coverage. Insured members as a group are subject to retrospective premium assessments to cover losses sustained by NEIL under all issued policies. SDG&E could be assessed up to $10.4 million of retrospective premiums based on overall member claims. The nuclear property insurance program includes an industry aggregate loss limit for non-certified acts of terrorism (as defined by the Terrorism Risk Insurance Act) of $3.24 billion. This is the maximum amount that will be paid to insured members who suffer losses or damages from these non-certified terrorist acts.
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES LEGAL PROCEEDINGS We accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to reasonably estimate the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued. At June 30, 2019, loss contingency accruals for legal matters, including associated legal fees, that are probable and estimable were $107 million for Sempra Energy Consolidated, including $59 million for SoCalGas. Amounts for Sempra Energy and SoCalGas include $54 million for matters related to the Aliso Canyon natural gas storage facility gas leak, which we discuss below. SDG&E 2007 Wildfire Litigation and Net Cost Recovery Status SDG&E has resolved all civil litigation associated with three wildfires that occurred in October 2007. As a result of a CPUC decision denying SDG&E’s request to recover wildfire costs, SDG&E wrote off the wildfire regulatory asset, resulting in a charge of $351 million ($208 million after-tax) in the third quarter of 2017. SDG&E continues to pursue recovery of these costs, which were incurred through settling claims brought under the doctrine of inverse condemnation. SDG&E applied to the CPUC for rehearing of its decision on January 2, 2018. On July 12, 2018, the CPUC adopted a decision denying the rehearing requests filed by SDG&E and other parties. On August 3, 2018, SDG&E filed an appeal with the California Court of Appeal seeking to reverse the CPUC’s decision. The filing also asked the court to direct the CPUC to award SDG&E recovery for payments made to settle inverse condemnation claims and limit any reasonableness review to the amounts of those payments. On November 13, 2018, the California Court of Appeal denied SDG&E’s petition. On November 26, 2018, SDG&E filed an appeal with the California Supreme Court seeking to reverse the decisions of the CPUC and the California Court of Appeal. In January 2019, the California Supreme Court denied SDG&E’s petition. On April 30, 2019, SDG&E filed an appeal with the U.S. Supreme Court seeking to reverse the CPUC’s decision. SoCalGas Aliso Canyon Natural Gas Storage Facility Gas Leak On October 23, 2015, SoCalGas discovered a leak at one of its injection-and-withdrawal wells, SS25, at its Aliso Canyon natural gas storage facility, located in the northern part of the San Fernando Valley in Los Angeles County. The Aliso Canyon natural gas storage facility has been operated by SoCalGas since 1972. SS25 is one of more than 100 injection-and-withdrawal wells at the storage facility. SoCalGas worked closely with several of the world’s leading experts to stop the Leak, and on February 18, 2016, DOGGR confirmed that the well was permanently sealed. SoCalGas calculated that approximately 4.62 Bcf of natural gas was released from the Aliso Canyon natural gas storage facility as a result of the Leak. As discussed in “Cost Estimates and Accounting Impact” below, SoCalGas incurred significant costs for temporary relocation, to control the well and to stop the Leak, as well as to purchase natural gas to replace that lost through the Leak. As discussed in “Local Community Mitigation Efforts” below, during the Leak and in the months following the sealing of the well, SoCalGas provided support to nearby residents who wished to temporarily relocate as a result of the Leak. These programs ended in July 2016. SoCalGas has additionally incurred significant costs to defend against and, in certain cases settle, civil and criminal litigation arising from the Leak; to pay the costs of the government-ordered response to the Leak including the costs for an independent third party to conduct a root cause analysis to investigate the technical cause of the Leak; to respond to various government and agency investigations regarding the Leak, and to comply with increased regulation imposed as a result of the Leak. As further described below in “Civil and Criminal Litigation,” “Regulatory Proceedings” and “Governmental Investigations and Orders and Additional Regulation,” these activities are ongoing and SoCalGas anticipates that it will incur additional such costs, which may also be significant. Local Community Mitigation Efforts. Pursuant to a directive by the DPH and orders by the LA Superior Court, SoCalGas provided temporary relocation support to residents in the nearby community who requested it. Following the permanent sealing of the well, the DPH conducted testing in certain homes in the Porter Ranch community and concluded that indoor conditions did not present a long-term health risk and that it was safe for those residents to return home. In May 2016, the DPH also issued a directive that SoCalGas additionally professionally clean the homes of all residents located within the Porter Ranch Neighborhood Council boundary, or who participated in the relocation program, or who are located within a five-mile radius of the Aliso Canyon natural gas storage facility and experienced symptoms from the Leak (the Directive). SoCalGas disputed the Directive as invalid and unenforceable, and filed a petition for writ of mandate to set aside the Directive. The Directive was settled and SoCalGas’ petition was dismissed pursuant to the Government Plaintiffs Settlement that we discuss below in “Civil and Criminal Litigation.” The costs incurred to remediate and stop the Leak and to mitigate local community impacts have been significant and may increase, and we may be subject to potentially significant damages, restitution, and civil, administrative and criminal fines, penalties and other costs. If any of these costs are not covered by insurance (including any costs in excess of applicable policy limits), if there are significant delays in receiving insurance recoveries, or if the insurance recoveries are subject to income taxes while the associated costs are not tax deductible, such amounts could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Civil and Criminal Litigation. As of July 29, 2019, 395 lawsuits, including approximately 36,000 plaintiffs, are pending against SoCalGas, some of which have also named Sempra Energy. The reduction in the number of plaintiffs resulted from a number of factors including the plaintiffs’ counsels’ reconciliation of duplicative claims as well as dismissals of certain plaintiffs who failed to prosecute their claims. All these cases, other than a matter brought by the Los Angeles County District Attorney and the federal securities class action discussed below, are coordinated before a single court in the LA Superior Court for pretrial management (the Coordination Proceeding). Pursuant to the Coordination Proceeding, in November 2017, the individuals and business entities asserting tort and Proposition 65 claims filed a Third Amended Consolidated Master Case Complaint for Individual Actions, through which their separate lawsuits will be managed for pretrial purposes. The consolidated complaint asserts causes of action for negligence, negligence per se, private and public nuisance (continuing and permanent), trespass, inverse condemnation, strict liability, negligent and intentional infliction of emotional distress, fraudulent concealment, loss of consortium, wrongful death and violations of Proposition 65 against SoCalGas, with certain causes also naming Sempra Energy. The consolidated complaint seeks compensatory and punitive damages for personal injuries, lost wages and/or lost profits, property damage and diminution in property value, injunctive relief, costs of future medical monitoring, civil penalties (including penalties associated with Proposition 65 claims alleging violation of requirements for warning about certain chemical exposures), and attorneys’ fees. The court has scheduled an initial trial for June 24, 2020 for a small number of randomly selected individual plaintiffs. In January 2017, pursuant to the Coordination Proceeding, two consolidated class action complaints were filed against SoCalGas and Sempra Energy, one on behalf of a putative class of persons and businesses who own or lease real property within a five-mile radius of the well (the Property Class Action), and a second on behalf of a putative class of all persons and entities conducting business within five miles of the facility (the Business Class Action). Both complaints assert claims for strict liability for ultra-hazardous activities, negligence and violation of the California Unfair Competition Law. The Property Class Action also asserts claims for negligence per se, trespass, permanent and continuing public and private nuisance, and inverse condemnation. The Business Class Action also asserts a claim for negligent interference with prospective economic advantage. Both complaints seek compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees. In December 2017, the California Court of Appeal, Second Appellate District ruled that the purely economic damages alleged in the Business Class Action are not recoverable under the law. In May 2019, the California Supreme Court affirmed the ruling. Complaints by property developers were filed in 2017 and 2018 against SoCalGas and Sempra Energy alleging causes of action for strict liability, negligence per se, negligence, continuing nuisance, permanent nuisance and violation of the California Unfair Competition Law, as well as claims for negligence against certain directors of SoCalGas. The complaints seek compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees. These claims are also joined in the Coordination Proceeding. In addition to the lawsuits described above, in October 2018 and January 2019, complaints were filed on behalf of 51 plaintiffs who are firefighters stationed near the Aliso Canyon natural gas storage facility and allege they were injured by exposure to chemicals released during the Leak. The complaints against SoCalGas and Sempra Energy assert causes of actions for negligence, negligence per se, private and public nuisance (continuing and permanent), trespass, inverse condemnation, strict liability, negligent and intentional infliction of emotional distress, fraudulent concealment and loss of consortium. The complaints seek compensatory and punitive damages for personal injuries, lost wages and/or lost profits, property damage and diminution in property value, and attorney’s fees. These claims are also joined in the Coordination Proceeding. In addition, a federal securities class action alleging violation of the federal securities laws has been filed against Sempra Energy and certain of its officers and certain of its directors in the U.S. District Court for the Southern District of California. In March 2018, the court dismissed the action with prejudice, and in December 2018 the court denied the plaintiffs’ request for reconsideration of that order. The plaintiffs filed a notice of appeal of the dismissal and, subsequently, a second request for reconsideration of the order based on the May 2019 report by Blade regarding the root cause analysis of the Leak, which we discuss below. Five shareholder derivative actions are also pending in the Coordination Proceeding alleging breach of fiduciary duties against certain officers and certain directors of Sempra Energy and/or SoCalGas, four of which were joined in a Consolidated Shareholder Derivative Complaint in August 2017. Three actions by public entities were filed in the Coordination Proceeding, including complaints by the County of Los Angeles, on behalf of itself and the people of the State of California, the California Attorney General, acting in an independent capacity and on behalf of the people of the State of California and the CARB, and the Los Angeles City Attorney alleging public nuisance, unfair competition, and violations of California Health and Safety Code provisions regarding discharge of contaminants, among other things, which sought injunctive relief, abatement, civil penalties and damages. Additionally, the County of Los Angeles filed a petition against DOGGR and its State Oil and Gas Supervisor and the CPUC and its Executive Director, as to which SoCalGas is the real party in interest, alleging that they failed to comply with the provisions of SB 380 in authorizing the resumption of injections of natural gas at the Aliso Canyon natural gas storage facility, and seeking a writ of mandate requiring DOGGR and the State Oil and Gas Supervisor to comply with SB 380 and the California Environmental Quality Act, as well as declaratory and injunctive relief against any authorization to inject natural gas and attorneys’ fees. In August 2018, SoCalGas entered into a settlement agreement with the Los Angeles City Attorney’s Office, the County of Los Angeles, the California Office of the Attorney General and CARB (collectively, the Government Plaintiffs) to settle the three public entity actions and the Directive for payments and funding for environmental projects totaling $120 million, including $21 million in civil penalties (the Government Plaintiffs Settlement). Under the settlement agreement, SoCalGas also agreed to continue its fence-line methane monitoring program, establish a safety committee and hire an independent ombudsman to monitor and report on the safety at the facility. This settlement also fully resolves SoCalGas’ commitment to mitigate the actual natural gas released during the Leak and fulfills the requirements of the Governor’s Order, described below, for SoCalGas to pay for a mitigation program developed by CARB. The Government Plaintiffs Settlement was approved by the LA Superior Court in February 2019. Separately, in February 2016, the Los Angeles County District Attorney’s Office filed a misdemeanor criminal complaint against SoCalGas seeking penalties and other remedies for alleged failure to provide timely notice of the Leak pursuant to California Health and Safety Code section 25510(a), Los Angeles County Code section 12.56.030, and Title 19 California Code of Regulations section 2703(a), and for allegedly violating California Health and Safety Code section 41700 prohibiting discharge of air contaminants that cause annoyance to the public. Pursuant to a settlement agreement with the Los Angeles County District Attorney’s Office, SoCalGas agreed to plead no contest to the notice charge under Health and Safety Code section 25510(a) and agreed to pay the maximum fine of $75,000, penalty assessments of approximately $233,500, and operational commitments estimated to cost approximately $6 million, reimbursements and assessments in exchange for the Los Angeles County District Attorney’s Office moving to dismiss the remaining counts at sentencing and settling the complaint (the District Attorney Settlement). In November 2016, SoCalGas completed the commitments and obligations under the District Attorney Settlement, and on November 29, 2016, the LA Superior Court approved the settlement and entered judgment on the notice charge. Certain individuals who object to the settlement petitioned the Court of Appeal to vacate the judgment, contending they should be granted restitution. In July 2019, the Court of Appeal denied the petition in part, but remanded the matter to the trial court to permit the petitioners to prove damages stemming only from the three-day delay in reporting the Leak. The costs of defending against these civil and criminal lawsuits, and any damages, restitution, and civil, administrative and criminal fines, penalties and other costs, if awarded or imposed, as well as the costs of mitigating the actual natural gas released, could be significant. If any of these costs are not covered by insurance (including any costs in excess of applicable policy limits), if there are significant delays in receiving insurance recoveries, or if the insurance recoveries are subject to income taxes while the associated costs are not tax deductible, such amounts could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Regulatory Proceedings. In January 2016, DOGGR and the CPUC selected Blade to conduct, under their supervision, an independent analysis of the technical root cause of the Leak, to be funded by SoCalGas. In May 2019, Blade released its report regarding its root cause analysis of the Leak. The report concludes that the Leak occurred on the morning of October 23, 2015, beginning with an axial rupture of the production casing of the well caused by external microbial corrosion as a result of contact with groundwater, followed within hours by the complete separation of the casing. Blade asserts that attempts to stop the Leak were unsuccessful due to insufficient kill fluid density and pump rates. Blade’s report assesses whether SoCalGas complied with gas storage regulations in existence at the time of the Leak, and did not identify any instances of non-compliance by SoCalGas. Blade concludes that SoCalGas’ compliance activities conducted prior to the Leak did not find indications of a casing integrity issue. In Blade’s opinion, however, there were measures, none of which were required by gas storage regulations at the time, that could have been taken to aid in the early identification of corrosion and that, in Blade’s opinion, would have prevented or mitigated the Leak. The report also identified well safety practices and regulations that have been adopted by DOGGR and implemented by SoCalGas, which address most of the root cause of the Leak identified during Blade’s investigation. In February 2017, the CPUC opened a proceeding pursuant to SB 380 to determine the feasibility of minimizing or eliminating the use of the Aliso Canyon natural gas storage facility, while still maintaining energy and electric reliability for the region. The CPUC indicated it intends to conduct the proceeding in two phases, with Phase 1 undertaking a comprehensive effort to develop the appropriate analyses and scenarios to evaluate the impact of reducing or eliminating the use of the Aliso Canyon natural gas storage facility and Phase 2 using those analyses and scenarios to evaluate the impacts of reducing or eliminating the use of the Aliso Canyon natural gas storage facility. The order establishing the scope of the proceeding expressly excludes issues with respect to air quality, public health, causation, culpability or cost responsibility regarding the Leak. In January 2019, the CPUC concluded Phase 1 of the proceeding by establishing a framework for the hydraulic, production cost and economic modeling assumptions for the potential reduction in usage or elimination of the Aliso Canyon natural gas storage facility. Phase 2 of the proceeding, which will evaluate the impacts of reducing or eliminating the Aliso Canyon natural gas storage facility using the established framework and models, began in the first quarter of 2019. The CPUC has indicated that it expects to issue its report in 2020. In June 2019, the CPUC opened an OII to consider penalties against SoCalGas for the Leak. The proceeding will determine whether SoCalGas violated any laws, CPUC orders or decisions, rules or requirements in connection with the Leak. The CPUC stated that its OII was in response to the report issued by Blade regarding its root cause analysis of the Leak. The costs to respond to this investigation and any sanctions, fines or penalties imposed by the CPUC could be significant and may not be covered completely by insurance (including costs in excess of applicable policy limits). Such amounts could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Governmental Investigations and Orders and Additional Regulation. Various governmental agencies, including DOE, DOGGR, DPH, South Coast Air Quality Management District, CARB, Los Angeles Regional Water Quality Control Board, California Division of Occupational Safety and Health, CPUC, PHMSA, EPA, Los Angeles County District Attorney’s Office and California Attorney General’s Office, have investigated or are investigating this incident. In January 2016, the Governor of the State of California proclaimed a state of emergency in Los Angeles County due to the Leak. The proclamation ordered various actions with respect to the Leak, including: (1) applicable agencies must convene an independent panel of scientific and medical experts to review public health concerns stemming from the Leak and evaluate whether additional measures are needed to protect public health; (2) the CPUC must ensure that SoCalGas covers costs related to the Leak and its response while protecting ratepayers; (3) CARB must develop a program, to be funded by SoCalGas, to fully mitigate the Leak’s emissions of methane; and (4) DOGGR, CPUC, CARB and the CEC must submit to the Governor’s Office a report that assesses the long-term viability of natural gas storage facilities in California. In March 2016, CARB issued its “Aliso Canyon Methane Leak Climate Impacts Mitigation Program” recommending a program to fully mitigate the emissions from the Leak. In October 2016, CARB issued a report concluding that SoCalGas should mitigate 109,000 metric tons of methane to fully mitigate the GHG impacts of the Leak. The Government Plaintiffs Settlement described above satisfies the mitigation requirement of the Governor’s emergency proclamation. Cost Estimates and Accounting Impact. At June 30, 2019, SoCalGas estimates its costs related to the Leak are $1,082 million (the cost estimate), which includes $1,053 million of costs recovered or probable of recovery from insurance. Approximately 52 percent of the cost estimate is for the temporary relocation program (including cleaning costs and certain labor costs). The remaining portion of the cost estimate includes costs incurred to defend litigation, the costs of the government-ordered response to the Leak including the costs for an independent third party to conduct a root cause analysis, efforts to control the well, to mitigate the actual natural gas released, the cost of replacing the lost gas, and other costs, as well as the estimated costs to settle certain actions. SoCalGas adjusts the cost estimate as additional information becomes available. A substantial portion of the cost estimate has been paid, and $46 million is accrued in Reserve for Aliso Canyon Costs and $9 million is accrued in Deferred Credits and Other as of June 30, 2019 on SoCalGas’ and Sempra Energy’s Condensed Consolidated Balance Sheets. As of June 30, 2019, we recorded the expected recovery of the cost estimate related to the Leak of $381 million as Insurance Receivable for Aliso Canyon Costs on SoCalGas’ and Sempra Energy’s Condensed Consolidated Balance Sheets. This amount is net of insurance retentions and $672 million of insurance proceeds we received through June 30, 2019. The Insurance Receivable for Aliso Canyon Costs and insurance proceeds received to date relate to portions of the cost estimate described above, including temporary relocation and associated processing costs, control-of-well expenses, costs of the government-ordered response including for an independent third party to conduct a root cause analysis, the costs to settle certain claims as described above, the estimated costs to perform obligations pursuant to settlement of some of those claims, legal costs and lost gas. If we were to conclude that this receivable or a portion of it is no longer probable of recovery from insurers, some or all of this receivable would be charged against earnings, which could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. As described in “Civil and Criminal Litigation” above, the actions seek compensatory, statutory and punitive damages, restitution, and civil, administrative and criminal fines, penalties and other costs, which, except for the amounts paid or estimated to settle certain actions as described above, are not included in the cost estimate as it is not possible at this time to predict the outcome of these actions or reasonably estimate the amount of damages, restitution or civil, administrative or criminal fines, penalties or other costs that may be imposed. The recorded amounts above also do not include future legal costs necessary to defend litigation, and other potential costs that we currently do not anticipate incurring or that we cannot reasonably estimate. Furthermore, the cost estimate does not include any sanctions, fines, penalties or other costs that may be imposed by the CPUC in connection with the OII opened in June 2019 and certain other costs incurred by Sempra Energy associated with defending against shareholder derivative lawsuits. Insurance. Excluding directors’ and officers’ liability insurance, we have at least four kinds of insurance policies that together we estimate provide between $1.2 billion to $1.4 billion in insurance coverage, depending on the nature of the claims. We cannot predict all of the potential categories of costs or the total amount of costs that we may incur as a result of the Leak. Subject to various policy limits, exclusions and conditions, based on what we know as of the filing date of this report, we believe that our insurance policies collectively should cover the following categories of costs: costs incurred for temporary relocation and associated processing costs (including cleaning costs and certain labor costs), costs to address the Leak and stop or reduce emissions, costs of the government-ordered response to the Leak including the costs for an independent third party to conduct a root cause analysis, the value of lost gas, costs incurred to mitigate the actual natural gas released, costs associated with litigation and claims by nearby residents and businesses, and, in some circumstances depending on their nature and manner of assessment, fines and penalties. We have been communicating with our insurance carriers and, as discussed above, we have received insurance payments for portions of the costs described above, including temporary relocation and associated processing costs, control-of-well expenses, legal costs and lost gas. We intend to pursue the full extent of our insurance coverage for the costs we have incurred or may incur. There can be no assurance that we will be successful in obtaining additional insurance recovery for these costs, and to the extent we are not successful in obtaining coverage or these costs exceed the amount of our coverage, such costs could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. At June 30, 2019, SoCalGas’ estimate of costs related to the Leak of $1,082 million include $1,053 million of costs recovered or probable of recovery from insurance. This estimate may rise significantly as more information becomes available. Costs not included in the $1,082 million cost estimate could be material. If any costs are not covered by insurance (including any costs in excess of applicable policy limits), if there are significant delays in receiving insurance recoveries, or if the insurance recoveries are subject to income taxes while the associated costs are not tax deductible, such amounts could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Natural Gas Storage Operations and Reliability. Natural gas withdrawn from storage is important for service reliability during peak demand periods, including peak electric generation needs in the summer and heating needs in the winter. The Aliso Canyon natural gas storage facility, with a capacity of 86 Bcf (representing 63 percent of SoCalGas’ natural gas storage capacity), is the largest SoCalGas storage facility and an important element of SoCalGas’ delivery system. As a result of the Leak, SoCalGas suspended injection of natural gas into the Aliso Canyon natural gas storage facility beginning in October 2015, and following a comprehensive safety review and authorization by DOGGR and the CPUC’s Executive Director, resumed limited injection operations in July 2017. During the suspension period, SoCalGas advised the California ISO, CEC, CPUC and PHMSA of its concerns that the inability to inject natural gas into the Aliso Canyon natural gas storage facility posed a risk to energy reliability in Southern California. Following the resumption of injection operations, the CPUC has issued a series of directives to SoCalGas specifying the range of working gas to be maintained in the Aliso Canyon natural gas storage facility to help ensure safety and reliability for the region and just and reasonable rates in California, the most recent of which, issued in July 2018, directed SoCalGas to maintain up to 34 Bcf of working gas. Limited withdrawals of natural gas from the facility were made in 2018 and 2019 to augment natural gas supplies during critical demand periods. In July 2019, the CPUC issued a revised protocol authorizing withdrawals of natural gas from the facility if gas supply is low in the region, to maintain system reliability and price stability. If the Aliso Canyon natural gas storage facility were to be permanently closed, or if future cash flows were otherwise insufficient to recover its carrying value, it could result in an impairment of the facility and significantly higher than expected operating costs and/or additional capital expenditures, and natural gas reliability and electric generation could be jeopardized. At June 30, 2019, the Aliso Canyon natural gas storage facility had a net book value of $762 million. Any significant impairment of this asset could have a material adverse effect on SoCalGas’ and Sempra Energy’s results of operations for the period in which it is recorded. Higher operating costs and additional capital expenditures incurred by SoCalGas may not be recoverable in customer rates and could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Sempra Mexico Property Disputes and Permit Challenges Energía Costa Azul. IEnova has been engaged in a long-running land dispute relating to property adjacent to its ECA LNG terminal near Ensenada, Mexico. A claimant to the adjacent property filed complaints in the federal Agrarian Court challenging the refusal of SEDATU in 2006 to issue a title to him for the disputed property. In November 2013, the federal Agrarian Court ordered that SEDATU issue the requested title and cause it to be registered. Both SEDATU and IEnova challenged the ruling, due to lack of notification of the underlying process. In May 2019, a federal court in Mexico reversed the ruling. IEnova expects additional proceedings regarding the claims. Several administrative challenges are pending in Mexico before the Mexican environmental protection agency and the Federal Tax and Administrative Courts seeking revocation of the environmental impact authorization issued to ECA in 2003. These cases generally allege that the conditions and mitigation measures in the environmental impact authorization are inadequate and challenge findings that the activities of the terminal are consistent with regional development guidelines. Additionally, in August 2018, a claimant filed a challenge in the federal district court in Ensenada, Baja California in relation to the environmental and social impact permits issued to ECA in September 2017 and December 2017, respectively, to allow natural gas liquefaction activities at the ECA LNG terminal. The court issued a provisional injunction on September 28, 2018 and maintained that provisional injunction at an April 11, 2019 hearing. In December 2018, the relevant Mexican regulators approved modifications to the environmental permit that facilitate the development of the proposed natural gas liquefaction facility at the ECA LNG terminal in two phases. On May 17, 2019, the court canceled the provisional injunction. The claimant has appealed the court’s decision. That appeal and the claimant’s underlying challenge to the permits remain pending. Cases involving two parcels of real property have been filed against ECA. In one case, filed in the federal Agrarian Court in 2006, the plaintiffs seek to annul the recorded property title for a parcel on which the ECA LNG terminal is situated and to obtain possession of a different parcel that allegedly sits in the same place. Another civil complaint filed in the state court was served in April 2012 seeking to invalidate the contract by which ECA purchased another of the terminal parcels, on the grounds the purchase price was unfair; the plaintiff filed a second complaint in 2013 in the federal Agrarian Court seeking an order that SEDATU issue title to her. In January 2016, the federal Agrarian Court ruled against the plaintiff, and the plaintiff appealed the ruling. In May 2018, the state court dismissed the civil complaint, and the plaintiff has appealed. IEnova expects further proceedings on these two matters. An unfavorable final decision on these property disputes or permit challenges could materially and adversely affect our existing natural gasification operations and our planned natural gas liquefaction projects currently in development at ECA. Guaymas-El Oro Segment of the Sonora Pipeline. IEnova’s Sonora natural gas pipeline consists of two segments, the Sasabe-Puerto Libertad-Guaymas segment, and the Guaymas-El Oro segment. Each segment has its own service agreement with the CFE. In 2015, the Yaqui tribe, with the exception of some members living in the Bácum community, granted its consent and a right-of-way easement agreement for the construction of the Guaymas-El Oro segment of the Sonora natural gas pipeline that crosses its territory. Representatives of the Bácum community filed a legal challenge in Mexican federal court demanding the right to withhold consent for the project, the stoppage of work in the Yaqui territory and damages. In 2016, the judge granted a suspension order that prohibited the construction of such segment through the Bácum community territory. Because the pipeline does not pass through the Bácum community, IEnova did not believe the 2016 suspension order prohibited construction in the remainder of the Yaqui territory. Construction of the Guaymas-El Oro segment was completed, and commercial operations began in May 2017. Following the start of commercial operations of the Guaymas-El Oro segment, IEnova reported damage to the Guaymas-El Oro segment of the Sonora pipeline in the Yaqui territory that has made that section inoperable since August 23, 2017 and, as a result, IEnova declared a force majeure event. In 2017, an appellate court ruled that the scope of the 2016 suspension order encompassed the wider Yaqui territory, which has prevented IEnova from making repairs to put the pipeline back in service. On July 10, 2019, a federal district court ruled in favor of IEnova and held that the Yaqui tribe was properly consulted and that consent from the Yaqui tribe was properly received. If representatives of the Bácum community appeal this decision, the suspension order preventing IEnova from repairing the damage to the Guaymas-El Oro segment of the Sonora pipeline in the Yaqui territory will remain in place until the appeals process is exhausted. IEnova exercised its rights under the contract, which included seeking force majeure payments for the two-year period such force majeure payments were required to be made, which ends on August 22, 2019. Under the contract and prior to the expiration of the force majeure period, IEnova may terminate the contract and seek to recover its reasonable and documented costs and lost profits. In July 2019, the CFE filed a request for arbitration generally to nullify certain contract terms that provide for fixed capacity payments in instances of force majeure and made a demand for substantial damages in connection with the force majeure event. If IEnova is unable to reach a satisfactory and timely resolution through negotiations or arbitration or if IEnova terminates the contract and is unable to obtain recovery, there may be a material adverse impact on Sempra Energy’s results of operations and cash flows and our ability to recover the carrying value of our investment. The Sasabe-Puerto Libertad-Guaymas segment of the Sonora pipeline remains in full operation and is not impacted by these developments. Sur de Texas-Tuxpan Marine Pipeline. Sempra Mexico has a 40-percent interest in IMG, a JV with a subsidiary of TC Energy to build, own and operate the Sur de Texas-Tuxpan natural gas marine pipeline in Mexico. The JV has an agreement to provide the CFE with natural gas transportation services under a 25-year agreement, denominated in U.S. dollars. IMG previously received force majeure payments from the CFE from November 2018 through April 2019, after construction delays extended the commercial operation date. Construction and commissioning activities on the pipeline were completed in June 2019, and IMG is awaiting acceptance of the in-service date by the CFE in order to begin transportation service under the gas transportation contract. In June 2019, the CFE filed a request for arbitration generally to nullify certain contract terms that provide for fixed capacity payments in instances of force majeure and made a demand for substantial damages in connection with the force majeure event. To date, the CFE has declined to issue the certificate needed to allow the pipeline to enter commercial operation. IEnova and TC Energy are in active discussions with the CFE and the outcome of the discussions and arbitration remains uncertain. If IEnova and TC Energy are unable to reach a satisfactory and timely resolution through discussions or arbitration, there may be a material adverse impact on Sempra Energy’s results of operations and cash flows and our ability to recover the carrying value of our investment. Other Litigation Sempra Energy holds an NCI in RBS Sempra Commodities, a limited liability partnership in the process of being liquidated. NatWest Markets plc, formerly RBS, our partner in the JV, paid an assessment of £86 million (approximately $138 million in U.S. dollars) in October 2014 to HMRC for denied VAT refund claims filed in connection with the purchase of carbon credit allowances by RBS SEE, a subsidiary of RBS Sempra Commodities. RBS SEE has since been sold to JP Morgan and later to Mercuria Energy Group, Ltd. HMRC asserted that RBS was not entitled to reduce its VAT liability by VAT paid on certain carbon credit purchases during 2009 because RBS knew or should have known that certain vendors in the trading chain did not remit their own VAT to HMRC. After paying the assessment, RBS filed a Notice of Appeal of the assessment with the First-Tier Tribunal. Trial on the matter has not been scheduled. In 2015, liquidators filed a claim in the High Court of Justice against RBS and Mercuria Energy Europe Trading Limited (the Defendants) on behalf of 10 companies (the Liquidating Companies) that engaged in carbon credit trading via chains that included a company that traded directly with RBS SEE. The claim alleges that the Defendants’ participation in the purchase and sale of carbon credits resulted in the Liquidating Companies’ carbon credit trading transactions creating a VAT liability they were unable to pay, and that the Defendants are liable to provide for equitable compensation due to dishonest assistance and for compensation under the U.K. Insolvency Act of 1986. Trial on the matter was held in June and July of 2018, at the close of which the Liquidating Companies asserted that the Defendants were liable to the Liquidating Companies in the amount of £71.5 million (approximately $91 million in U.S. dollars at June 30, 2019) for dishonest assistance and, to the extent that claim is unsuccessful, to the liquidators in the same amount under the U.K. Insolvency Act of 1986. If the High Court of Justice finds the Defendants liable, it will determine the amount. JP Morgan has notified us that Mercuria Energy Group, Ltd. has sought indemnity for the claim, and JP Morgan has in turn sought indemnity from Sempra Energy and RBS. While the ultimate outcome remains uncertain, we continue to evaluate the likelihood of recovery of our investment. Accordingly, in the third quarter of 2018, we fully impaired our remaining $65 million equity method investment in RBS Sempra Commodities. Certain EFH subsidiaries that we acquired as part of the Merger are defendants in personal injury lawsuits brought in state courts throughout the U.S. As of July 29, 2019, 111 such lawsuits are pending and 1,685 such lawsuits have been filed but not served. These cases allege illness or death as a result of exposure to asbestos in power plants designed and/or built by companies whose assets were purchased by predecessor entities to the EFH subsidiaries, and generally assert claims for product defects, negligence, strict liability and wrongful death. They seek compensatory and punitive damages. Additionally, in connection with the EFH bankruptcy proceeding, approximately 28,000 proofs of claim were filed on behalf of persons who allege exposure to asbestos under similar circumstances and assert the right to file such lawsuits in the future. We anticipate additional lawsuits will be filed. None of these claims or lawsuits were discharged in the EFH bankruptcy proceeding. We are also defendants in ordinary routine litigation incidental to our businesses, including personal injury, employment litigation, product liability, property damage and other claims. Juries have demonstrated an increasing willingness to grant large awards, including punitive damages, in these types of cases. LEASES A lease exists when a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. We determine if an arrangement is or contains a lease at inception of the contract. Some of our lease agreements contain nonlease components, which represent activities that transfer a separate good or service to the lessee. As the lessee for both operating and finance leases, we combine lease components and nonlease components for all existing classes of underlying assets as a single lease component, whereby fixed or in-substance fixed payments allocable to the nonlease component are accounted for as part of the related lease liability and ROU asset. As the lessor, if the timing and pattern of transfer of the lease components and nonlease components are the same, and the lease component would be classified as an operating lease if accounted for separately, we combine the lease components and nonlease components. Lessee Accounting We have operating and finance leases for real and personal property (including office space, land, fleet vehicles, machinery and equipment, warehouses and other operational facilities) and PPAs with renewable energy and peaker plant facilities. Some of our leases include options to extend the lease terms for up to 25 years, while others include options to terminate the lease within one year. Our lease liabilities and ROU assets are based on lease terms that may include such options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Certain of our contracts are short-term leases, which have a lease term of 12 months or less at lease commencement. We do not recognize a lease liability or ROU asset arising from short-term leases for all existing classes of underlying assets. In such cases, we recognize short-term lease costs on a straight-line basis over the lease term. Our short-term lease costs for the period reasonably reflect our short-term lease commitments. Certain of our leases contain escalation clauses requiring annual increases in rent ranging from 1 percent to 5 percent or based on the Consumer Price Index. The rentals payable under these leases may increase by a fixed amount each year or by a percentage of a base year. Variable lease payments that are based on an index or rate are included in the initial measurement of our lease liability and ROU asset based on the index or rate at lease commencement and are not remeasured because of changes to the index or rate. Rather, changes to the index or rate are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred. Similarly, PPAs for the purchase of renewable energy at SDG&E require lease payments based on a stated rate per MWh produced by the facilities, and we are required to purchase substantially all the output from the facilities. SDG&E is required to pay additional amounts for capacity charges and actual purchases of energy that exceed the minimum energy commitments. Under these contracts, we do not recognize a lease liability or ROU asset for leases for which there are no fixed lease payments. Rather, these variable lease payments are recognized separately as variable lease costs. As of the lease commencement date, we recognize a lease liability for our obligation to make future lease payments, which we initially measure at present value using our incremental borrowing rate at the date of lease commencement, unless the rate implicit in the lease is readily determinable. We determine our incremental borrowing rate based on the rate of interest that we would have to pay to borrow, on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. We also record an ROU asset for our right to use the underlying asset, which is initially equal to the lease liability and adjusted for lease payments made at or before lease commencement, lease incentives, and any initial direct costs. Like other long-lived assets, we test ROU assets for recoverability whenever events or changes in circumstances have occurred that may affect the recoverability or the estimated useful lives of the ROU assets. For our operating leases, our non-regulated entities recognize a single lease cost on a straight-line basis over the lease term in operating expenses. The California Utilities recognize this single lease cost on a basis that is consistent with the recovery of such costs in accordance with U.S. GAAP governing rate-regulated operations. For our finance leases, the interest expense on the lease liability and amortization of the ROU asset are accounted for separately. Our non-regulated entities use the effective interest rate method to account for the imputed interest on the lease liability and amortize the ROU asset on a straight-line basis over the lease term. The California Utilities recognize amortization of the ROU asset on a basis that is consistent with the recovery of such costs in accordance with U.S. GAAP governing rate-regulated operations. Our leases do not contain any material residual value guarantees, restrictions or covenants. Classification of ROU assets and lease liabilities and the weighted-average remaining lease term and discount rate associated with operating and finance leases are summarized in the table below.
The components of lease costs were as follows:
Cash paid for amounts included in the measurement of lease liabilities was as follows:
The table below presents the maturity analysis of our lease liabilities and reconciliation to the present value of lease liabilities:
Leases that Have Not Yet Commenced SDG&E has PPAs for three battery storage facilities that are currently under construction. When construction is complete and delivery of contracted power commences, which is scheduled to occur in 2019 through 2022, we will account for the PPAs as finance leases. The future minimum lease payments are expected to be $1 million per year in 2020 through 2023 and $18 million thereafter. These PPAs expire at various dates from 2031 through 2039. SDG&E and SoCalGas have lease agreements for future acquisitions of fleet vehicles with an aggregate maximum lease limit of $187 million. SDG&E and SoCalGas have utilized $53 million and $75 million, respectively, as of June 30, 2019. Lease Disclosures Under Previous U.S. GAAP The table below presents the future minimum lease payments under previous U.S. GAAP:
Lessor Accounting Sempra Mexico is a lessor for certain of its natural gas and ethane pipelines, compressor stations and LPG storage facilities, and land and office space. These operating leases expire at various dates from 2026 through 2039. Sempra Mexico expects to continue to derive value from the underlying assets associated with its pipelines following the end of their respective lease terms based on the expected remaining useful life, expected market conditions and our plans to re-market and re-contract the underlying assets. Generally, we recognize operating lease income on a straight-line basis over the lease term and evaluate the underlying asset for impairment. Certain of our leases contain rate adjustments or are based on foreign currency exchange rates that may result in lease payments received that vary from one period to the next. We provide information below for leases for which we are the lessor.
We discuss below significant changes in the first six months of 2019 to contractual commitments discussed in Notes 1 and 16 of the Notes to Consolidated Financial Statements in the Annual Report. LNG Purchase Agreement Sempra LNG has a sale and purchase agreement for the supply of LNG to the ECA terminal. The commitment amount is calculated using a predetermined formula based on estimated forward prices of the index applicable from 2019 to 2029. At June 30, 2019, we expect the commitment amount to decrease by $192 million in 2019 and $3 million in 2020, and increase by $7 million in 2021, $10 million in 2022, $9 million in 2023 and $102 million thereafter (through contract termination in 2029) compared to December 31, 2018, reflecting changes in estimated forward prices since December 31, 2018 and actual transactions for the first six months of 2019. These LNG commitment amounts are based on the assumption that all LNG cargoes, less those already confirmed to be diverted, under the agreement are delivered. Although this agreement specifies a number of cargoes to be delivered, under its terms, the customer may divert certain cargoes, which would reduce amounts paid under the agreement by Sempra LNG. Actual LNG purchases in the current and prior years have been significantly lower than the maximum amount provided under the agreement due to the customer electing to divert cargoes as allowed by the agreement. CONCENTRATION OF CREDIT RISK We maintain credit policies and systems designed to manage our overall credit risk. These policies include an evaluation of potential counterparties’ financial condition and an assignment of credit limits. These credit limits are established based on risk and return considerations under terms customarily available in the industry. We grant credit to utility customers and counterparties, substantially all of whom are located in our service territory, which covers most of Southern California and a portion of central California for SoCalGas, and all of San Diego County and an adjacent portion of Orange County for SDG&E. Sempra Mexico also grants credit to its utility customers and counterparties in Mexico. Projects and businesses owned or partially owned by Sempra Energy place significant reliance on the ability of their suppliers, customers and partners to perform on long-term agreements and on our ability to enforce contract terms in the event of nonperformance. We consider many factors, including the negotiation of supplier and customer agreements, when we evaluate and approve development projects and investment opportunities.
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Segment Information | SEGMENT INFORMATION At June 30, 2019, we had five separately managed reportable segments, as follows:
In December 2018, Sempra Renewables completed the sale of all its operating solar assets, solar and battery storage development projects and one wind generation facility. In April 2019, Sempra Renewables completed the sale of its remaining wind assets and investments. Upon completion of this sale, remaining nominal business activities at Sempra Renewables were subsumed into Parent and other and the Sempra Renewables segment ceased to exist. The tables below include amounts from Sempra Renewables up until the cessation of the segment. As we discuss in Note 5, the financial information related to our businesses that constituted the Sempra South American Utilities segment has been reclassified to discontinued operations for all periods presented. The information in the tables below excludes amounts from discontinued operations unless otherwise noted. We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings and cash flows. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. The California Utilities’ operations are based on rates set by the CPUC and the FERC. We describe the accounting policies of all of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. The cost of common services shared by the business segments is assigned directly or allocated based on various cost factors, depending on the nature of the service provided. Interest income and expense is recorded on intercompany loans. The loan balances and related interest are eliminated in consolidation. The following tables show selected information by segment from our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as “All other” in the following tables consist primarily of activities of parent organizations and include certain nominal amounts from our South American businesses that did not qualify for treatment as discontinued operations.
(2) As we discuss in Note 2, in accordance with adoption of the lease standard on January 1, 2019, on a prospective basis, a significant portion of finance lease costs for PPAs that have historically been presented in Cost of Electric Fuel and Purchased Power are now presented in Interest Expense.
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Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT SDG&E On July 12, 2019, AB 1054 and AB 111 (together, the “Wildfire Legislation”) were signed into law and took immediate effect. The Wildfire Legislation addresses certain important issues related to catastrophic wildfires in the State of California and their impact on electric IOUs. Investor-owned gas distribution utilities such as SoCalGas are not covered by this legislation. The issues addressed include cost recovery standards and requirements, wildfire mitigation, a wildfire recovery fund, a cap on liability, and the establishment of a wildfire safety board. A Liquidity Fund will be created pursuant to the Wildfire Legislation. The Liquidity Fund will be administered by the state and is intended to provide liquidity to pay, under certain circumstances and with certain limitations, electric IOU wildfire-related claims. The Liquidity Fund will be initially capitalized by a loan of up to $10.5 billion from the SMIF. The SMIF loan helps ensure funds are available, if needed. The SMIF loan will be repaid with proceeds anticipated to be received from the issuance of new DWR bonds. A larger Wildfire Fund will be created if California’s initially eligible electric IOUs elect to participate. The Wildfire Fund will be partially funded by the Liquidity Fund and partially funded by shareholder contributions from California’s electric IOUs. PG&E, Edison and SDG&E have each elected to participate in the Wildfire Fund and will make initial shareholder contributions totaling $7.5 billion with additional annual contributions of $300 million in each of the next 10 years for a total shareholder contribution of $10.5 billion. These shareholder contributions will be combined with the Liquidity Fund proceeds, for a total of $21 billion. However, PG&E’s participation in the Wildfire Fund is subject to specific conditions. If PG&E does not contribute to the Wildfire Fund, the total amount in the fund would be materially less. SDG&E’s portion of the shareholder contribution will be approximately $452 million, with an initial contribution of $322.5 million to be paid by September 10, 2019. SDG&E expects to fund its initial shareholder contribution with proceeds from an equity contribution from Sempra Energy. We expect to fund the equity contribution to SDG&E with proceeds from issuances of commercial paper that may be replaced by long-term debt issuances or settling forward sale agreements through physical delivery of shares of our common stock in exchange for cash. SDG&E will also be required to make annual shareholder contributions of $12.9 million in each of the next 10 years. These initial and annual contributions are not subject to rate recovery.
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GENERAL INFORMATION AND OTHER FINANCIAL DATA (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION Sempra Energy Sempra Energy’s Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based Fortune 500 energy-services holding company, and its consolidated subsidiaries and VIEs. Sempra Global is the holding company for most of our subsidiaries that are not subject to California or Texas utility regulation. Sempra Energy’s businesses were managed within six separate reportable segments until April 2019 and five separate reportable segments thereafter, which we discuss in Note 12. In the first quarter of 2019, our Sempra LNG & Midstream segment was renamed “Sempra LNG.” This segment name change had no impact on our historical position, results of operations, cash flow or segment level results previously reported. All references in these Notes to our reportable segments are not intended to refer to any legal entity with the same or similar name. SDG&E SDG&E’s Condensed Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E is the primary beneficiary, as we discuss below in “Variable Interest Entities.” SDG&E’s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. SoCalGas SoCalGas’ common stock is wholly owned by Pacific Enterprises, which is a wholly owned subsidiary of Sempra Energy. In this report, we refer to SDG&E and SoCalGas collectively as the California Utilities.
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Basis of Presentation | BASIS OF PRESENTATION This is a combined report of Sempra Energy, SDG&E and SoCalGas. We provide separate information for SDG&E and SoCalGas as required. References in this report to “we,” “our” and “Sempra Energy Consolidated” are to Sempra Energy and its consolidated entities, unless otherwise indicated by the context. We have eliminated intercompany accounts and transactions within the consolidated financial statements of each reporting entity. Throughout this report, we refer to the following as Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements when discussed together or collectively:
We have prepared the Condensed Consolidated Financial Statements in conformity with U.S. GAAP and in accordance with the interim-period-reporting requirements of Form 10-Q. Results of operations for interim periods are not necessarily indicative of results for the entire year. We evaluated events and transactions that occurred after June 30, 2019 through the date the financial statements were issued and, in the opinion of management, the accompanying statements reflect all adjustments necessary for a fair presentation. These adjustments are only of a normal, recurring nature. All December 31, 2018 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2018 Consolidated Financial Statements in the Annual Report, which for Sempra Energy has been retrospectively adjusted for discontinued operations, as we discuss below. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the interim-period-reporting provisions of U.S. GAAP and the SEC. We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report and the impact of the adoption of new accounting standards on those policies in Note 2 below. We follow the same accounting policies for interim reporting purposes. You should read the information in this Quarterly Report in conjunction with the Annual Report.
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Discontinued Operations | Discontinued Operations On January 25, 2019, our board of directors approved a plan to sell our South American businesses based on our strategic focus on North America. We determined that these businesses, which previously constituted the Sempra South American Utilities segment, and certain activities associated with these businesses, met the held-for-sale criteria. These businesses are presented as discontinued operations, as the planned sale represents a strategic shift that will have a major effect on our operations and financial results. Throughout this report, the financial information for all periods presented has been adjusted to reflect the presentation of these businesses as discontinued operations, which we discuss further in Note 5. Our discussions in the Notes below relate only to our continuing operations unless otherwise noted.
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Variable Interest Entity Policy | VARIABLE INTEREST ENTITIES We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based on qualitative and quantitative analyses, which assess:
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Earnings Per Share Policy | Basic EPS is calculated by dividing earnings attributable to common shares (from both continuing and discontinued operations) by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The potentially dilutive impact from the forward sale of our common stock pursuant to the forward sale agreements that we entered into in 2018 is reflected in our diluted EPS calculation using the treasury stock method. We anticipate there will be a dilutive effect on our EPS when the average market price of shares of our common stock is above the applicable adjusted forward sale price, subject to increase or decrease based on the overnight bank funding rate, less a spread, and subject to decrease by amounts related to expected dividends on shares of our common stock during the term of the forward sale agreements. Additionally, if we decide to physically settle or net share settle the forward sale agreements, delivery of our shares to the forward purchasers on any such physical settlement or net share settlement of the forward sale agreements would result in dilution to our EPS. The potentially dilutive impact from mandatory convertible preferred stock that we issued in 2018 is calculated under the if-converted method.The potentially dilutive impact from stock options and RSUs is calculated under the treasury stock method. Under this method, proceeds based on the exercise price and unearned compensation are assumed to be used to repurchase shares on the open market at the average market price for the period, reducing the number of potential new shares to be issued and sometimes causing an antidilutive effect. We discuss share-based compensation plans and related awards further in Note 10 of the Notes to Consolidated Financial Statements in the Annual Report.
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Interim period effective tax rate policy | Sempra Energy, SDG&E and SoCalGas record income taxes for interim periods utilizing a forecasted ETR anticipated for the full year. Unusual and infrequent items and items that cannot be reliably estimated are recorded in the interim period in which they occur, which can result in variability in the ETR. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Flow-through rate-making treatment tax policy | For SDG&E and SoCalGas, the CPUC requires flow-through rate-making treatment for the current income tax benefit or expense arising from certain property-related and other temporary differences between the treatment for financial reporting and income tax, which will reverse over time. Under the regulatory accounting treatment required for these flow-through temporary differences, deferred income tax assets and liabilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which impacts the ETR. As a result, changes in the relative size of these items compared to pretax income, from period to period, can cause variations in the ETR. The following items are subject to flow-through treatment:
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New Accounting Standards | NEW ACCOUNTING STANDARDS We describe below recent accounting pronouncements that have had or may have a significant effect on our financial condition, results of operations, cash flows or disclosures. ASU 2016-02, “Leases,” ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842,” ASU 2018-10, “Codification Improvements to Topic 842, Leases,” ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” ASU 2018-20, “Narrow-Scope Improvements for Lessors” and ASU 2019-01, “Leases (Topic 842): Codification Improvements” (collectively referred to as the “lease standard”): In 2016, the FASB began issuing the first in a series of ASUs intended to increase transparency and comparability among organizations with leasing activities. The most significant provision of the lease standard is the requirement that lessees recognize operating lease ROU assets and lease liabilities on the balance sheet. We adopted the lease standard on January 1, 2019, using the optional transition method to apply the new guidance prospectively as of January 1, 2019, rather than as of the earliest period presented. We elected the package of practical expedients that permits us to not reassess (a) whether a contract is or contains a lease, (b) lease classification or (c) determination of initial direct costs, which allows us to carry forward accounting conclusions under previous U.S. GAAP on contracts that commenced prior to adoption of the lease standard. We also elected the land easement practical expedient, which allows us to continue to account for pre-existing land easements under our accounting policy that existed before adoption of the lease standard. We did not elect the practical expedient to use hindsight in making judgments when determining the lease term. The adoption of the lease standard did not change our previously reported financial statements. However, in accordance with the lease standard, on a prospective basis, a significant portion of finance lease costs for PPAs that have historically been presented in Cost of Electric Fuel and Purchased Power are now presented in Depreciation and Amortization Expense and Interest Expense on Sempra Energy’s and SDG&E’s statements of operations. Additionally, the adoption of the lease standard had a material impact on our balance sheets at January 1, 2019 due to the initial recognition of ROU assets and lease liabilities for operating leases. Our finance leases were already included on our balance sheets prior to adoption of the lease standard, consistent with previous U.S. GAAP for capital leases. The following table shows the initial (decreases) increases on our balance sheets at January 1, 2019 from adoption of the lease standard.
As a result of the adoption of the lease standard, we derecognized our corporate headquarters building lease in accordance with the transition provisions for build-to-suit arrangements. On a prospective basis, we will account for the corporate headquarters building lease as an operating lease. The initial impact is included in the above table. We include additional disclosures about our leases in Note 11. ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”: ASU 2016-13, as amended by subsequently issued ASUs, changes how entities will measure credit losses for most financial assets and certain other instruments. The standard introduces an “expected credit loss” impairment model that requires immediate recognition of estimated credit losses expected to occur over the remaining life of most financial assets measured at amortized cost, including trade and other receivables, loan commitments and financial guarantees. ASU 2016-13 also requires use of an allowance to record estimated credit losses on available-for-sale debt securities and expands disclosure requirements regarding an entity’s assumptions, models and methods for estimating the credit losses. For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods therein, with early adoption permitted for fiscal years beginning after December 15, 2018. The amendments are to be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings at the beginning of the first reporting period in the year of adoption. We are currently evaluating the impact of the standard on our ongoing financial reporting and plan to adopt the standard on January 1, 2020. ASU 2017-04, “Simplifying the Test for Goodwill Impairment”: ASU 2017-04 removes the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation. An entity will be required to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the carrying amount of goodwill. For public entities, ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The amendments are to be applied on a prospective basis. We plan to adopt the standard on January 1, 2020. ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”: ASU 2018-02 contains amendments that allow a reclassification from AOCI to retained earnings for stranded tax effects resulting from the TCJA. Under ASU 2018-02, an entity is required to provide certain disclosures regarding stranded tax effects, including its accounting policy related to releasing the income tax effects from AOCI. The amendments in this update can be applied either as of the beginning of the period of adoption or retrospectively as of the date of enactment of the TCJA and to each period in which the effect of the TCJA is recognized. We adopted ASU 2018-02 on January 1, 2019 and reclassified the income tax effects of the TCJA from AOCI to retained earnings. The impact from adoption of ASU 2018-02 on January 1, 2019 was as follows:
▪ SoCalGas: increase of $2 million to beginning Retained Earnings, $2 million to noncurrent Regulatory Liabilities and $4 million to Accumulated Other Comprehensive Loss.
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Derivative Financial Instruments | In addition to the amounts noted above, we use commodity derivatives to manage risks associated with the physical locations of contractual obligations and assets, such as natural gas purchases and sales. INTEREST RATE DERIVATIVES We are exposed to interest rates primarily as a result of our current and expected use of financing. The California Utilities, as well as Sempra Energy and its other subsidiaries and JVs, periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. In addition, we may utilize interest rate swaps, typically designated as cash flow hedges, to lock in interest rates on outstanding debt or in anticipation of future financings. Separately, Otay Mesa VIE has entered into interest rate swap agreements, designated as cash flow hedges, to moderate its exposure to interest rate changes. FOREIGN CURRENCY DERIVATIVES We utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and JVs. These cash flow hedges exchange our Mexican peso-denominated principal and interest payments into the U.S. dollar and swap Mexican variable interest rates for U.S. fixed interest rates. From time to time, Sempra Mexico and its JVs may use other foreign currency derivatives to hedge exposures related to cash flows associated with revenues from contracts denominated in Mexican pesos that are indexed to the U.S. dollar. We are also exposed to exchange rate movements at our Mexican subsidiaries and JVs, which have U.S. dollar-denominated cash balances, receivables, payables and debt (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. They also have deferred income tax assets and liabilities denominated in the Mexican peso, which must be translated to U.S. dollars for financial reporting purposes. In addition, monetary assets and liabilities and certain nonmonetary assets and liabilities are adjusted for Mexican inflation for Mexican income tax purposes. We utilize foreign currency derivatives as a means to manage the risk of exposure to significant fluctuations in our income tax expense and equity earnings from these impacts; however, we generally do not hedge our deferred income tax assets and liabilities or for inflation. We use derivative instruments primarily to manage exposures arising in the normal course of business. Our principal exposures are commodity market risk, benchmark interest rate risk and foreign exchange rate exposures. Our use of derivatives for these risks is integrated into the economic management of our anticipated revenues, anticipated expenses, assets and liabilities. Derivatives may be effective in mitigating these risks (1) that could lead to declines in anticipated revenues or increases in anticipated expenses, or (2) that our asset values may fall or our liabilities increase. Accordingly, our derivative activity summarized below generally represents an impact that is intended to offset associated revenues, expenses, assets or liabilities that are not included in the tables below. In certain cases, we apply the normal purchase or sale exception to derivative instruments and have other commodity contracts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. In all other cases, we record derivatives at fair value on the Condensed Consolidated Balance Sheets. We have derivatives that are either (1) cash flow hedges, (2) fair value hedges, or (3) undesignated. Depending on the applicability of hedge accounting and, for the California Utilities and other operations subject to regulatory accounting, the requirement to pass impacts through to customers, the impact of derivative instruments may be offset in OCI (cash flow hedges), on the balance sheet (regulatory offsets), or recognized in earnings (fair value hedges). We classify cash flows from the principal settlements of cross-currency swaps that hedge exposure related to Mexican peso-denominated debt as financing activities and settlements of other derivative instruments as operating activities on the Condensed Consolidated Statements of Cash Flows. HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated cash flows associated with revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that the future cash flows of a given revenue or expense item may vary, and other criteria. ENERGY DERIVATIVES Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business, as follows:
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Fair Value Measurement Policy | A significant increase (decrease) in market electricity forward prices would result in a significantly higher (lower) fair value. We summarize long-term, fixed-price electricity position volumes in Note 8. Realized gains and losses associated with CRRs and long-term electricity positions, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Because unrealized gains and losses are recorded as regulatory assets and liabilities, they do not affect earnings. Fair Value of Financial Instruments The fair values of certain of our financial instruments (cash, accounts and notes receivable, short-term amounts due to/from unconsolidated affiliates, dividends and accounts payable, 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, Cash Balance Restoration and Deferred Compensation Plans are carried at cash surrender values, which represent the amount of cash that could be realized under the contracts.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. We have not changed the valuation techniques or types of inputs we use to measure recurring fair value since December 31, 2018.The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 8 under “Financial Statement Presentation.” 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 (other than a $5 million investment at June 30, 2019 measured at net asset value):
▪ Rabbi Trust investments include marketable securities 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). These investments in marketable securities were negligible at both June 30, 2019 and December 31, 2018. Inputs used to determine the fair value of CRRs and fixed-price electricity positions are reviewed and compared with market conditions to determine reasonableness. SDG&E expects all costs related to these instruments to be recoverable through customer rates. As such, there is no impact to earnings from changes in the fair value of these instruments. 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.The impact associated with discounting is negligible. 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 higher (lower) fair value measurement. We summarize CRR volumes in Note 8. Long-term, fixed-price electricity positions that are valued using significant unobservable data are classified as Level 3 because the contract terms relate to a delivery location or tenor for which observable market rate information is not available. The fair value of the net electricity positions classified as Level 3 is derived from a discounted cash flow model using market electricity forward price inputs.
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Legal Costs Policy | LEGAL PROCEEDINGS We accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to reasonably estimate the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued.
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Gains and Losses on NDTs | Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification.
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Lessee, Leases Policy | Certain of our contracts are short-term leases, which have a lease term of 12 months or less at lease commencement. We do not recognize a lease liability or ROU asset arising from short-term leases for all existing classes of underlying assets. In such cases, we recognize short-term lease costs on a straight-line basis over the lease term. Our short-term lease costs for the period reasonably reflect our short-term lease commitments. As of the lease commencement date, we recognize a lease liability for our obligation to make future lease payments, which we initially measure at present value using our incremental borrowing rate at the date of lease commencement, unless the rate implicit in the lease is readily determinable. We determine our incremental borrowing rate based on the rate of interest that we would have to pay to borrow, on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. We also record an ROU asset for our right to use the underlying asset, which is initially equal to the lease liability and adjusted for lease payments made at or before lease commencement, lease incentives, and any initial direct costs. Like other long-lived assets, we test ROU assets for recoverability whenever events or changes in circumstances have occurred that may affect the recoverability or the estimated useful lives of the ROU assets. For our operating leases, our non-regulated entities recognize a single lease cost on a straight-line basis over the lease term in operating expenses. The California Utilities recognize this single lease cost on a basis that is consistent with the recovery of such costs in accordance with U.S. GAAP governing rate-regulated operations. For our finance leases, the interest expense on the lease liability and amortization of the ROU asset are accounted for separately. Our non-regulated entities use the effective interest rate method to account for the imputed interest on the lease liability and amortize the ROU asset on a straight-line basis over the lease term. The California Utilities recognize amortization of the ROU asset on a basis that is consistent with the recovery of such costs in accordance with U.S. GAAP governing rate-regulated operations.
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Lessor, Leases Policy | Generally, we recognize operating lease income on a straight-line basis over the lease term and evaluate the underlying asset for impairment. Certain of our leases contain rate adjustments or are based on foreign currency exchange rates that may result in lease payments received that vary from one period to the next.
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Segment Information | At June 30, 2019, we had five separately managed reportable segments, as follows:
In December 2018, Sempra Renewables completed the sale of all its operating solar assets, solar and battery storage development projects and one wind generation facility. In April 2019, Sempra Renewables completed the sale of its remaining wind assets and investments. Upon completion of this sale, remaining nominal business activities at Sempra Renewables were subsumed into Parent and other and the Sempra Renewables segment ceased to exist. The tables below include amounts from Sempra Renewables up until the cessation of the segment. As we discuss in Note 5, the financial information related to our businesses that constituted the Sempra South American Utilities segment has been reclassified to discontinued operations for all periods presented. The information in the tables below excludes amounts from discontinued operations unless otherwise noted. We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings and cash flows. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. The California Utilities’ operations are based on rates set by the CPUC and the FERC. We describe the accounting policies of all of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. The cost of common services shared by the business segments is assigned directly or allocated based on various cost factors, depending on the nature of the service provided. Interest income and expense is recorded on intercompany loans. The loan balances and related interest are eliminated in consolidation.
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GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Condensed Consolidated Balance Sheets to the sum of such amounts reported on the Condensed Consolidated Statements of Cash Flows. We provide information about the nature of restricted cash in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.
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Inventory Table | The following table presents the components of inventories by segment.
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Capitalized Financing Costs Table | The table below summarizes capitalized interest and AFUDC.
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Variable Interest Entity Table | Sempra Energy’s Condensed Consolidated Statements of Operations include the following amounts associated with the tax equity limited liability companies, net of eliminations of transactions between Sempra Energy and these entities.
(1) Net income or loss attributable to NCI is computed using the HLBV method and is not based on ownership percentages.The Condensed Consolidated Statements of Operations of Sempra Energy and SDG&E include the following amounts associated with Otay Mesa VIE. The amounts are net of eliminations of transactions between SDG&E and Otay Mesa VIE. The captions in the table below correspond to SDG&E’s Condensed Consolidated Statements of Operations.
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Net Periodic Benefit Cost Table | The following three tables provide the components of net periodic benefit cost.
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Contributions to Benefit Plans Table | The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2019.
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Earnings Per Share Computations Table | Basic EPS is calculated by dividing earnings attributable to common shares (from both continuing and discontinued operations) by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.
(3) Due to market fluctuations of both Sempra Energy common stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 10 of the Notes to Consolidated Financial Statements in the Annual Report, dilutive RSUs may vary widely from period-to-period.
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Schedule of Accumulated Other Comprehensive Income (Loss) Table | The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to NCI.
(3) Pension and Other Postretirement Benefits and Total AOCI include a $4 million transfer of liabilities from SoCalGas to Sempra Energy related to the nonqualified pension plan.
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Reclassifications out of AOCI Table |
(2) Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above).
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Ownership Interests Held By Others Table | The following table provides information on noncontrolling ownership interests held by others (not including preferred shareholders) in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Condensed Consolidated Balance Sheets.
(3) In April 2019, PXiSE Energy Solutions, LLC was subsumed into Parent and other. At June 30, 2019, equity held by NCI was negligible.
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Transactions with Affiliates Table | We summarize amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas in the following table.
The following table summarizes revenues and cost of sales from unconsolidated affiliates.
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Other Income and Expense Table | Other Income (Expense), Net on the Condensed Consolidated Statements of Operations consisted of the following:
(2) Includes gains of $7 million and $17 million in the three months and six months ended June 30, 2019, respectively, and losses of $47 million and $8 million in the three months and six months ended June 30, 2018, respectively, from translation to U.S. dollars of a Mexican peso-denominated loan to the IMG JV, which are offset by corresponding amounts included in Equity Earnings (Losses) on the Condensed Consolidated Statements of Operations.
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Income Tax Expense and Effective Income Tax Rates Table | We provide our calculations of ETRs in the following table.
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NEW ACCOUNTING STANDARDS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table shows the initial (decreases) increases on our balance sheets at January 1, 2019 from adoption of the lease standard.
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REVENUES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following table disaggregates our revenues from contracts with customers by major service line and market and provides a reconciliation to total revenues by segment. The majority of our revenue is recognized over time.
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Schedule of Timing of Remaining Performance Obligations | For contracts greater than one year, at June 30, 2019, we expect to recognize revenue related to the fixed fee component of the consideration as shown below. SoCalGas did not have any such remaining performance obligations at June 30, 2019.
(1) Excludes intercompany transactions.
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Schedule of Contract Liabilities | Activities within Sempra Energy’s contract liabilities are presented below. There were no contract liabilities at SDG&E or SoCalGas for the six months ended June 30, 2019 and 2018.
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Schedule of Contract Accounts Receivable | The table below shows receivable balances associated with revenues from contracts with customers on our Condensed Consolidated Balance Sheets.
(1) Amount is presented net of amounts due to unconsolidated affiliates on the Condensed Consolidated Balance Sheets, when right of offset exists.
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REGULATORY MATTERS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulated Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Regulatory Assets | We show the details of regulatory assets and liabilities in the following table.
(2) Includes regulatory assets earning a rate of return.
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Schedule of Regulatory Liabilities | We show the details of regulatory assets and liabilities in the following table.
(2) Includes regulatory assets earning a rate of return.
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ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Results from Discontinued Operations | Summarized results from discontinued operations were as follows:
The following table summarizes the carrying amounts of the major classes of assets and related liabilities classified as held for sale in discontinued operations.
At June 30, 2019 and December 31, 2018, $460 million and $506 million, respectively, of cumulative foreign currency translation adjustments related to our South American businesses are included in AOCI.
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INVESTMENT IN UNCONSOLIDATED ENTITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Results of Operations | We provide summarized income statement information for Oncor Holdings in the following table.
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DEBT AND CREDIT FACILITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities |
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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity Derivative Volumes Table | The following table summarizes net energy derivative volumes.
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Notional Amounts of Derivatives Table | The following table presents the net notional amounts of our foreign currency derivatives, excluding JVs.
The following table presents the net notional amounts of our interest rate derivatives, excluding JVs.
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Derivative Instruments on the Condensed Consolidated Balance Sheets Table | The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets, including the amount of cash collateral receivables that were not offset, as the cash collateral was in excess of liability positions.
(1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Includes a negligible amount for Otay Mesa VIE. (3) Normal purchase contracts previously measured at fair value are excluded.
(1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. (3) Normal purchase contracts previously measured at fair value are excluded. |
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Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table | The table below includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI:
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Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table | The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations.
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FAIR VALUE MEASUREMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recurring Fair Value Measures Table |
(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.
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Recurring Fair Value Measures Level 3 Rollforward Table | The table below sets forth reconciliations of changes in the fair value of CRRs and long-term, fixed-price electricity positions classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E.
(1) Excludes the effect of the contractual ability to settle contracts under master netting agreements.
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Schedule of Fair Value Inputs | The fair value of the net electricity positions classified as Level 3 is derived from a discounted cash flow model using market electricity forward price inputs. The range and weighted-average price of these inputs at June 30 were as follows:
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Fair Value of Financial Instruments Table | 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.
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SAN ONOFRE NUCLEAR GENERATING STATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Public Utilities, General Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nuclear Decommissioning Trusts Investments | The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 9.
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Schedule of Sales of Securities By Nuclear Decommissioning Trusts | The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales.
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COMMITMENTS AND CONTINGENCIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Leases Statement of Financial Position | Classification of ROU assets and lease liabilities and the weighted-average remaining lease term and discount rate associated with operating and finance leases are summarized in the table below.
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Schedule of Lease Cost | The components of lease costs were as follows:
(2) Short-term leases with variable lease costs are recorded and presented as variable lease costs.
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Schedule of Lease Cash Flow Activity [Table Text Block] | Cash paid for amounts included in the measurement of lease liabilities was as follows:
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Schedule of Operating Lease Maturity Payments | The table below presents the maturity analysis of our lease liabilities and reconciliation to the present value of lease liabilities:
The table below presents the future minimum lease payments under previous U.S. GAAP:
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Schedule of Finance Lease Maturity Payments | The table below presents the future minimum lease payments under previous U.S. GAAP:
The table below presents the maturity analysis of our lease liabilities and reconciliation to the present value of lease liabilities:
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Schedule of Operating Lease Payments to Be Received | We provide information below for leases for which we are the lessor.
(1) Included in Machinery and Equipment — Pipelines and Storage within the major functional categories of PP&E.
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Schedule of Operating Lease Payments Received, Lease Income [Table Text Block] |
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SEGMENT INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | The following tables show selected information by segment from our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as “All other” in the following tables consist primarily of activities of parent organizations and include certain nominal amounts from our South American businesses that did not qualify for treatment as discontinued operations.
(2) As we discuss in Note 2, in accordance with adoption of the lease standard on January 1, 2019, on a prospective basis, a significant portion of finance lease costs for PPAs that have historically been presented in Cost of Electric Fuel and Purchased Power are now presented in Interest Expense.
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GENERAL INFORMATION AND OTHER FINANCIAL DATA - PRINCIPLES OF CONSOLIDATION (Details) - segment |
3 Months Ended | |
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Jun. 30, 2019 |
Mar. 31, 2019 |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of reportable segments | 5 | 6 |
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
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Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | $ 168 | $ 102 | [1] | ||
Restricted cash, current | 50 | 35 | [1] | ||
Restricted cash, noncurrent | 21 | 21 | [1] | ||
Cash and cash equivalents | 55 | 88 | |||
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | 294 | 246 | |||
San Diego Gas and Electric Company [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | 3 | 8 | [1] | ||
Restricted cash, current | 13 | 11 | [1] | ||
Restricted cash, noncurrent | 18 | 18 | [1] | ||
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | $ 34 | $ 37 | |||
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GENERAL INFORMATION AND OTHER FINANCIAL DATA - INVENTORIES (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
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Inventory [Line Items] | |||||
Natural gas | $ 47 | $ 95 | |||
LNG | 10 | 4 | |||
Materials and supplies | 157 | 159 | |||
Inventory | 214 | 258 | [1] | ||
SDG&E [Member] | |||||
Inventory [Line Items] | |||||
Natural gas | 0 | 0 | |||
LNG | 0 | 0 | |||
Materials and supplies | 96 | 102 | |||
Inventory | 96 | 102 | |||
SoCalGas [Member] | |||||
Inventory [Line Items] | |||||
Natural gas | 28 | 92 | |||
LNG | 0 | 0 | |||
Materials and supplies | 47 | 42 | |||
Inventory | 75 | 134 | |||
Sempra Mexico [Member] | |||||
Inventory [Line Items] | |||||
Natural gas | 0 | 0 | |||
LNG | 10 | 4 | |||
Materials and supplies | 14 | 15 | |||
Inventory | 24 | 19 | |||
Sempra LNG [Member] | |||||
Inventory [Line Items] | |||||
Natural gas | 19 | 3 | |||
LNG | 0 | 0 | |||
Materials and supplies | 0 | 0 | |||
Inventory | $ 19 | $ 3 | |||
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GENERAL INFORMATION AND OTHER FINANCIAL DATA - CAPITALIZED FINANCING COSTS (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
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Capitalized Financing Costs Disclosure [Line Items] | ||||
Total capitalized financing costs | $ 51 | $ 54 | $ 98 | $ 103 |
San Diego Gas and Electric Company [Member] | ||||
Capitalized Financing Costs Disclosure [Line Items] | ||||
Total capitalized financing costs | 20 | 23 | 37 | 47 |
Southern California Gas Company [Member] | ||||
Capitalized Financing Costs Disclosure [Line Items] | ||||
Total capitalized financing costs | $ 11 | $ 16 | $ 22 | $ 29 |
GENERAL INFORMATION AND OTHER FINANCIAL DATA - VARIABLE INTEREST ENTITIES (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 09, 2018 |
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
MW
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Jun. 30, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
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||||
Variable Interest Entities [Line Items] | |||||||||
Energy-related businesses | $ 335 | $ 355 | $ 718 | $ 701 | |||||
Interest expense | (258) | (228) | (518) | (434) | |||||
Operation and maintenance | (838) | (742) | (1,670) | (1,483) | |||||
Depreciation and amortization | (389) | (377) | (772) | (749) | |||||
Income (loss) from continuing operations before income taxes and equity earnings (losses) | 286 | (1,183) | 787 | (590) | |||||
Income tax expense | (47) | 602 | (89) | 360 | |||||
Net income (loss) | 435 | (530) | 953 | (172) | |||||
(Earnings) losses attributable to noncontrolling interests | (45) | (5) | (86) | 12 | |||||
Equity method investment | 10,930 | 10,930 | $ 9,652 | [1] | |||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Assets of VIEs | 651 | 651 | 286 | ||||||
Sempra Texas Utility [Member] | Oncor Holdings [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Equity method investment | 10,930 | 10,930 | 9,652 | ||||||
Sempra Renewables [Member] | Tax Equity Investors [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Energy-related businesses | 2 | 32 | 8 | 49 | |||||
Operation and maintenance | 0 | (4) | (2) | (8) | |||||
Depreciation and amortization | (1) | (12) | (4) | (23) | |||||
Income (loss) from continuing operations before income taxes and equity earnings (losses) | 1 | 16 | 2 | 18 | |||||
Income tax expense | (1) | (7) | 0 | (12) | |||||
Net income (loss) | 0 | 9 | 2 | 6 | |||||
(Earnings) losses attributable to noncontrolling interests | 2 | 20 | (1) | 41 | |||||
Earnings attributable to common shares | 2 | 29 | 1 | 47 | |||||
Equity | 158 | ||||||||
Sempra Natural Gas [Member] | Cameron LNG Holdings [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Equity method investment | 1,242 | 1,242 | 1,271 | ||||||
San Diego Gas and Electric Company [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Operation and maintenance | 276 | 251 | 562 | 499 | |||||
Depreciation and amortization | 189 | 169 | 375 | 335 | |||||
Operating income | 263 | 215 | 525 | 463 | |||||
Interest expense | (102) | (53) | (205) | (105) | |||||
Income (loss) from continuing operations before income taxes and equity earnings (losses) | 181 | 188 | 363 | 413 | |||||
Income tax expense | (35) | (42) | (40) | (98) | |||||
Net income (loss) | 146 | 146 | 323 | 315 | |||||
(Earnings) losses attributable to noncontrolling interests | (3) | 0 | $ (4) | 1 | |||||
San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Generating capacity | MW | 605 | ||||||||
Conditional purchase obligation | 280 | $ 280 | |||||||
Equity of variable interest entity | 103 | 103 | $ 100 | ||||||
Secured debt of variable interest entity | 211 | 211 | |||||||
Cost of electric fuel and purchased power | (19) | (16) | (35) | (32) | |||||
Operation and maintenance | 4 | 4 | 8 | 8 | |||||
Depreciation and amortization | 8 | 7 | 15 | 15 | |||||
Total operating expenses | (7) | (5) | (12) | (9) | |||||
Operating income | 7 | 5 | 12 | 9 | |||||
Interest expense | (4) | (5) | (8) | (10) | |||||
Net income (loss) | 3 | 0 | 4 | (1) | |||||
(Earnings) losses attributable to noncontrolling interests | (3) | 0 | (4) | 1 | |||||
Earnings attributable to common shares | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Oncor Electric Delivery Company LLC. [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Acquired percentage interest | 80.25% | ||||||||
Sempra Texas Holdings Corp [Member] | Oncor Holdings [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Ownership percentage in consolidated entity | 100.00% | ||||||||
Sempra Texas Holdings Corp [Member] | Oncor Electric Delivery Company LLC. [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Acquired percentage interest | 80.03% | ||||||||
|
GENERAL INFORMATION AND OTHER FINANCIAL DATA - PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Pension benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Reduction in plan assets due to settlement | $ 274 | ||||
Service cost | $ 28 | $ 33 | $ 55 | 66 | |
Interest cost | 35 | 34 | 70 | 69 | |
Expected return on assets | (36) | (40) | (72) | (82) | |
Prior service cost (credit) | 3 | 2 | 6 | 5 | |
Actuarial loss (gain) | 7 | 10 | 21 | 19 | |
Settlement charges | $ 22 | 22 | 25 | 22 | 39 |
Net periodic benefit cost (credit) | 59 | 64 | 102 | 116 | |
Regulatory adjustments | 3 | (35) | (33) | (80) | |
Total expense recognized | 62 | 29 | 69 | 36 | |
Contributions by employer | 93 | ||||
Expected contributions in current fiscal year | 234 | 234 | 234 | ||
Pension benefits [Member] | San Diego Gas and Electric Company [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Reduction in plan assets due to settlement | 97 | ||||
Service cost | 7 | 8 | 15 | 16 | |
Interest cost | 8 | 8 | 17 | 17 | |
Expected return on assets | (9) | (12) | (20) | (25) | |
Prior service cost (credit) | 1 | 1 | 2 | 1 | |
Actuarial loss (gain) | 3 | 2 | 7 | 3 | |
Settlement charges | 0 | 2 | 0 | 16 | |
Net periodic benefit cost (credit) | 10 | 9 | 21 | 28 | |
Regulatory adjustments | (1) | (8) | (12) | (27) | |
Total expense recognized | 9 | 1 | 9 | 1 | |
Contributions by employer | 8 | ||||
Expected contributions in current fiscal year | 40 | 40 | 40 | ||
Pension benefits [Member] | Southern California Gas Company [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Reduction in plan assets due to settlement | 177 | ||||
Service cost | 18 | 21 | 34 | 43 | |
Interest cost | 22 | 22 | 45 | 45 | |
Expected return on assets | (23) | (25) | (47) | (51) | |
Prior service cost (credit) | 2 | 2 | 4 | 4 | |
Actuarial loss (gain) | 2 | 6 | 11 | 12 | |
Settlement charges | 0 | 23 | 0 | 23 | |
Net periodic benefit cost (credit) | 21 | 49 | 47 | 76 | |
Regulatory adjustments | 4 | (27) | (21) | (53) | |
Total expense recognized | 25 | 22 | 26 | 23 | |
Contributions by employer | 26 | ||||
Expected contributions in current fiscal year | 118 | 118 | 118 | ||
Other postretirement benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 4 | 5 | 8 | 11 | |
Interest cost | 9 | 9 | 18 | 18 | |
Expected return on assets | (17) | (17) | (35) | (35) | |
Prior service cost (credit) | 0 | 0 | 0 | 0 | |
Actuarial loss (gain) | (3) | (1) | (5) | (2) | |
Settlement charges | 0 | 0 | 0 | 0 | |
Net periodic benefit cost (credit) | (7) | (4) | (14) | (8) | |
Regulatory adjustments | 7 | 5 | 14 | 9 | |
Total expense recognized | 0 | 1 | 0 | 1 | |
Contributions by employer | 5 | ||||
Expected contributions in current fiscal year | 8 | 8 | 8 | ||
Other postretirement benefits [Member] | San Diego Gas and Electric Company [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 1 | 1 | 2 | 2 | |
Interest cost | 2 | 1 | 4 | 3 | |
Expected return on assets | (3) | (4) | (6) | (7) | |
Prior service cost (credit) | 0 | 1 | 1 | 2 | |
Actuarial loss (gain) | 0 | 0 | (1) | (1) | |
Settlement charges | 0 | 0 | 0 | 0 | |
Net periodic benefit cost (credit) | 0 | (1) | 0 | (1) | |
Regulatory adjustments | 0 | 1 | 0 | 1 | |
Total expense recognized | 0 | 0 | 0 | 0 | |
Contributions by employer | 0 | ||||
Expected contributions in current fiscal year | 0 | 0 | 0 | ||
Other postretirement benefits [Member] | Southern California Gas Company [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 3 | 4 | 6 | 8 | |
Interest cost | 7 | 7 | 14 | 14 | |
Expected return on assets | (15) | (14) | (29) | (28) | |
Prior service cost (credit) | 0 | 0 | (1) | (1) | |
Actuarial loss (gain) | (2) | (1) | (4) | (1) | |
Settlement charges | 0 | 0 | 0 | 0 | |
Net periodic benefit cost (credit) | (7) | (4) | (14) | (8) | |
Regulatory adjustments | 7 | 4 | 14 | 8 | |
Total expense recognized | 0 | $ 0 | 0 | $ 0 | |
Contributions by employer | 0 | ||||
Expected contributions in current fiscal year | $ 1 | $ 1 | $ 1 |
GENERAL INFORMATION AND OTHER FINANCIAL DATA - RABBI TRUST (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
|||
---|---|---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Rabbi trust | $ 409 | $ 416 | [1] | ||
|
GENERAL INFORMATION AND OTHER FINANCIAL DATA - EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Income (loss) from continuing operations, net of income tax | $ 357 | $ (585) | $ 917 | $ (255) |
(Earnings) losses attributable to noncontrolling interests | (37) | 2 | (69) | 26 |
Mandatory convertible preferred stock dividends | (35) | (25) | (71) | (53) |
Earnings (losses) from continuing operations attributable to common shares | 284 | (609) | 776 | (283) |
Income from discontinued operations, net of income tax | 78 | 55 | 36 | 83 |
Earnings from discontinued operations attributable to common shares | 70 | 48 | 19 | 69 |
Earnings (losses) attributable to common shares | $ 354 | $ (561) | $ 795 | $ (214) |
Weighted-average common shares outstanding for basic EPS | 274,987,000 | 265,837,000 | 274,831,000 | 261,906,000 |
Dilutive effect of stock options, RSAs and RSUs (in shares) | 1,541,000 | 0 | 1,255,000 | 0 |
Dilutive effect of common stock forward shares (in shares) | 3,091,000 | 0 | 2,338,000 | 0 |
Weighted-average common shares outstanding for diluted EPS (in shares) | 279,619,000 | 265,837,000 | 278,424,000 | 261,906,000 |
Earnings (losses) from continuing operations attributable to common shares (in usd per share) | $ 1.03 | $ (2.29) | $ 2.82 | $ (1.08) |
Earnings from discontinued operations attributable to common shares (in usd per share) | 0.26 | 0.18 | 0.07 | 0.26 |
Earnings (losses) attributable to common shares (in usd per share) | 1.29 | (2.11) | 2.89 | (0.82) |
Earnings (losses) from continuing operations attributable to common shares (in usd per share) | 1.01 | (2.29) | 2.78 | (1.08) |
Earnings from discontinued operations attributable to common shares (in usd per share) | 0.25 | 0.18 | 0.07 | 0.26 |
Earnings (losses) from continuing operations attributable to common shares (n usd per share) | $ 1.26 | $ (2.11) | $ 2.85 | $ (0.82) |
Vested RSUs included in basic WASO (in shares) | 613,000 | 640,000 | 613,000 | 634,000 |
Non-qualified stock options granted (in shares) | 261,075 | |||
Convertible Preferred Stock [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 17,442,705 | 15,296,567 | 17,442,705 | 15,296,567 |
Share-based Payment Arrangement, Option [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Exercisable period | 3 years | |||
Performance-based RSUs [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Equity awards, granted (in shares) | 389,825 | |||
Service-based RSUs [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Equity awards, granted (in shares) | 259,940 | |||
Sempra South American Utilities [Member] | Disposal Group Held-for-sale [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Income from discontinued operations, net of income tax | $ 78 | $ 55 | $ 36 | $ 83 |
Earnings attributable to noncontrolling interests | (8) | (7) | (17) | (14) |
Earnings from discontinued operations attributable to common shares | $ 70 | $ 48 | $ 19 | $ 69 |
Stock Options and RSUs [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 986,000 | 931,000 | ||
Common Stock [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 714,000 | 746,000 | ||
Stock options, RSAs and RSUs [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 4,740 | 1,816 | 160,563 | 1,816 |
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Beginning balance | [1] | $ 17,138 | |||||||
Cumulative-effect adjustment from change in accounting principle | $ 15 | $ (1) | |||||||
Ending balance | $ 17,440 | 17,440 | |||||||
Foreign currency translation adjustments [Member] | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Beginning balance | (532) | $ (396) | (564) | $ (420) | |||||
Cumulative-effect adjustment from change in accounting principle | 0 | 0 | |||||||
OCI before reclassifications | 14 | (86) | 46 | (62) | |||||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | |||||
Net OCI | 14 | (86) | 46 | (62) | |||||
Ending balance | (518) | (482) | (518) | (482) | |||||
Financial instruments [Member] | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Beginning balance | (153) | (67) | (82) | (122) | |||||
Cumulative-effect adjustment from change in accounting principle | (25) | (3) | |||||||
OCI before reclassifications | (67) | 19 | (112) | 85 | |||||
Amounts reclassified from AOCI | 7 | 8 | 6 | 0 | |||||
Net OCI | (60) | 27 | (106) | 85 | |||||
Ending balance | (213) | (40) | (213) | (40) | |||||
Pension and other postretirement benefits [Member] | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Beginning balance | (132) | (82) | (118) | (84) | |||||
Cumulative-effect adjustment from change in accounting principle | (17) | 0 | |||||||
OCI before reclassifications | (7) | 1 | (6) | 1 | |||||
Amounts reclassified from AOCI | 22 | 2 | 24 | 4 | |||||
Net OCI | 15 | 3 | 18 | 5 | |||||
Ending balance | (117) | (79) | (117) | (79) | |||||
Total accumulated other comprehensive income (loss) [Member] | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Beginning balance | (817) | (545) | (764) | (626) | |||||
Cumulative-effect adjustment from change in accounting principle | (42) | $ (3) | |||||||
OCI before reclassifications | (60) | (66) | (72) | 24 | |||||
Amounts reclassified from AOCI | 29 | 10 | 30 | 4 | |||||
Net OCI | (31) | (56) | (42) | 28 | |||||
Ending balance | (848) | (601) | (848) | (601) | |||||
San Diego Gas and Electric Company [Member] | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Beginning balance | [1] | 6,015 | |||||||
Cumulative-effect adjustment from change in accounting principle | 0 | ||||||||
Ending balance | 6,335 | 6,335 | |||||||
San Diego Gas and Electric Company [Member] | Pension and other postretirement benefits [Member] | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Beginning balance | (12) | (8) | (10) | (8) | |||||
Cumulative-effect adjustment from change in accounting principle | (2) | ||||||||
Amounts reclassified from AOCI | 1 | 1 | |||||||
Net OCI | 1 | 1 | |||||||
Ending balance | (11) | (8) | (11) | (8) | |||||
San Diego Gas and Electric Company [Member] | Total accumulated other comprehensive income (loss) [Member] | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Beginning balance | (12) | (8) | (10) | (8) | |||||
Cumulative-effect adjustment from change in accounting principle | (2) | ||||||||
Amounts reclassified from AOCI | 1 | 1 | |||||||
Net OCI | 1 | 1 | |||||||
Ending balance | (11) | (8) | (11) | (8) | |||||
Southern California Gas Company [Member] | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Beginning balance | [1] | 4,258 | |||||||
Cumulative-effect adjustment from change in accounting principle | (2) | ||||||||
Ending balance | 4,554 | 4,554 | |||||||
Southern California Gas Company [Member] | Financial instruments [Member] | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Beginning balance | (14) | (13) | (12) | (13) | |||||
Cumulative-effect adjustment from change in accounting principle | (2) | ||||||||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | |||||
Net OCI | 0 | 0 | 0 | 0 | |||||
Ending balance | (14) | (13) | (14) | (13) | |||||
Southern California Gas Company [Member] | Pension and other postretirement benefits [Member] | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Beginning balance | (10) | (8) | (8) | (8) | |||||
Cumulative-effect adjustment from change in accounting principle | (2) | ||||||||
Amounts reclassified from AOCI | 4 | 1 | 4 | 1 | |||||
Net OCI | 4 | 1 | 4 | 1 | |||||
Ending balance | (6) | (7) | (6) | (7) | |||||
Southern California Gas Company [Member] | Total accumulated other comprehensive income (loss) [Member] | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Beginning balance | (24) | (21) | (20) | (21) | |||||
Cumulative-effect adjustment from change in accounting principle | $ (4) | ||||||||
Amounts reclassified from AOCI | 4 | 1 | 4 | 1 | |||||
Net OCI | 4 | 1 | 4 | 1 | |||||
Ending balance | $ (20) | $ (20) | $ (20) | $ (20) | |||||
|
GENERAL INFORMATION AND OTHER FINANCIAL DATA - RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ (258) | $ (228) | $ (518) | $ (434) |
Other income, net | (28) | 56 | (110) | (96) |
Gain on sale of assets | 66 | 0 | 66 | 0 |
Equity earnings (losses) | 118 | (4) | 219 | (25) |
Energy-related businesses | 335 | 355 | 718 | 701 |
Income (loss) from continuing operations before income taxes and equity earnings (losses) | 286 | (1,183) | 787 | (590) |
Income tax (expense) benefit | (47) | 602 | (89) | 360 |
Net income | (435) | 530 | (953) | 172 |
Earnings attributable to noncontrolling interest | (45) | (5) | (86) | 12 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income, net | 1 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to common shares | 25 | 10 | 26 | 4 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) from continuing operations before income taxes and equity earnings (losses) | 8 | 19 | 8 | 3 |
Income tax (expense) benefit | (1) | (4) | (1) | (1) |
Net income | 7 | 15 | 7 | 2 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | Interest rate and foreign exchange instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | 0 | 1 | 1 | (1) |
Other income, net | (2) | 18 | (5) | 0 |
Equity earnings (losses) | 0 | 1 | 1 | 5 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | Foreign exchange instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Energy-related businesses | 0 | (1) | 1 | (1) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | Interest rate instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain on sale of assets | 10 | 0 | 10 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Noncontrolling Interests [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to noncontrolling interest | 0 | (7) | (1) | (2) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to common shares | 7 | 8 | 6 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Pension and Other Postretirement Benefits [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income, net | 2 | 3 | 4 | 6 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Settlements Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income, net | 22 | 0 | 22 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and Other Postretirement Benefits [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) from continuing operations before income taxes and equity earnings (losses) | 24 | 3 | 27 | 6 |
Income tax (expense) benefit | (6) | (1) | (7) | (2) |
Net income | 18 | 2 | 20 | 4 |
San Diego Gas and Electric Company [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | (102) | (53) | (205) | (105) |
Other income, net | (19) | (25) | (41) | (53) |
Income (loss) from continuing operations before income taxes and equity earnings (losses) | 181 | 188 | 363 | 413 |
Income tax (expense) benefit | (35) | (42) | (40) | (98) |
Net income | (146) | (146) | (323) | (315) |
Earnings attributable to noncontrolling interest | (3) | 0 | (4) | 1 |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to common shares | 1 | 0 | 1 | 0 |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | Interest rate instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | 1 | 1 | 2 | 4 |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Noncontrolling Interests [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to noncontrolling interest | (1) | (1) | (2) | (4) |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to common shares | 0 | 0 | 0 | 0 |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income, net | 1 | 0 | 1 | 0 |
Southern California Gas Company [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | (34) | (26) | (68) | (53) |
Other income, net | (1) | (13) | (17) | (46) |
Income (loss) from continuing operations before income taxes and equity earnings (losses) | 27 | 57 | 310 | 341 |
Income tax (expense) benefit | 4 | (23) | (15) | (82) |
Net income | (31) | (34) | (295) | (259) |
Southern California Gas Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to common shares | 0 | 1 | 0 | 1 |
Southern California Gas Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Pension and Other Postretirement Benefits [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income, net | $ 0 | $ 1 | $ 0 | $ 1 |
GENERAL INFORMATION AND OTHER FINANCIAL DATA - SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 02, 2019 |
Feb. 07, 2019 |
Jul. 31, 2018 |
Jan. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
Jul. 13, 2018 |
Jan. 09, 2018 |
|
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Proceeds from issuance | $ 0 | $ 1,693 | |||||||||
Proceeds from issuance | 20 | 2,090 | |||||||||
Repurchases of common stock | $ 4 | $ 1 | $ 18 | $ 20 | |||||||
Public Offering [Member] | Common Stock [Member] | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Shares issued (in shares) | 11,212,500 | 26,869,158 | |||||||||
Shares issued (in usd per share) | $ 113.75 | $ 107.00 | |||||||||
Shares issued net of underwriting discount (in usd per share) | $ 111.87 | $ 105.07 | |||||||||
Proceeds from issuance | $ 1,270 | ||||||||||
Over-Allotment Option [Member] | Common Stock [Member] | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Proceeds from issuance | $ 164 | $ 367 | |||||||||
Settlement of Forward Sale Contracts [Member] | Common Stock [Member] | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Proceeds from issuance | $ 800 | ||||||||||
Sempra Energy [Member] | Series A Preferred Stock [Member] | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Shares issued (in shares) | 17,250,000 | ||||||||||
Proceeds from issuance | $ 1,690 | ||||||||||
Liquidation price (in usd per share) | $ 100.00 | ||||||||||
Sempra Energy [Member] | Series B Preferred Stock [Member] | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Shares issued (in shares) | 5,750,000 | ||||||||||
Proceeds from issuance | $ 565 | ||||||||||
Liquidation price (in usd per share) | $ 100.00 | ||||||||||
Infraestructura Energética Nova [Member] | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Common stock repurchased (in shares) | 2,200,000 | ||||||||||
Repurchases of common stock | $ 8 | ||||||||||
Subsequent Event [Member] | Settlement of Forward Sale Contracts [Member] | Common Stock [Member] | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Shares issuable under forward contracts | 16,906,185 | ||||||||||
Infraestructura Energética Nova [Member] | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Ownership interest | 66.60% | 66.60% | 66.50% | ||||||||
Bay Gas [Member] | Sempra LNG [Member] | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Payment to acquire remaining interest in Bay Gas | $ 20 | ||||||||||
Sale of interest | 100.00% | ||||||||||
Sempra LNG [Member] | Bay Gas Storage Company, Ltd. [Member] | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Percent ownership held by noncontrolling interests | 0.00% | 0.00% | 9.10% |
GENERAL INFORMATION AND OTHER FINANCIAL DATA - OTHER NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
|||
---|---|---|---|---|---|
Noncontrolling Interest [Line Items] | |||||
Other noncontrolling interests | $ 1,974 | $ 2,090 | [1] | ||
San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 100.00% | 100.00% | |||
Other noncontrolling interests | $ 103 | $ 100 | |||
Sempra Mexico [Member] | IEnova [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 33.40% | 33.50% | |||
Other noncontrolling interests | $ 1,637 | $ 1,592 | |||
Sempra Mexico [Member] | Ownership Interests Held By Others, IEnova, Subsidiary One [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Other noncontrolling interests | $ 13 | $ 13 | |||
Sempra Mexico [Member] | Ownership Interests Held By Others, IEnova, Subsidiary One [Member] | Minimum [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 10.00% | 10.00% | |||
Sempra Mexico [Member] | Ownership Interests Held By Others, IEnova, Subsidiary One [Member] | Maximum [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 47.60% | 49.00% | |||
Sempra Renewables [Member] | Tax equity arrangement – wind [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 0.00% | ||||
Other noncontrolling interests | $ 0 | $ 158 | |||
Sempra Renewables [Member] | PXISE Energy Solutions LLC [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 11.10% | 11.10% | |||
Other noncontrolling interests | $ 0 | $ 1 | |||
Sempra LNG [Member] | Bay Gas Storage Company, Ltd. [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 0.00% | 9.10% | |||
Other noncontrolling interests | $ 0 | $ 18 | |||
Sempra LNG [Member] | Liberty Gas Storage, LLC [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 24.60% | 24.60% | |||
Other noncontrolling interests | $ (12) | $ (12) | |||
Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Other noncontrolling interests | $ 24 | $ 23 | |||
Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member] | Minimum [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 19.70% | 19.70% | |||
Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member] | Maximum [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 43.40% | 43.40% | |||
Sempra South American Utilities [Member] | Luz del Sur [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 16.40% | 16.40% | |||
Other noncontrolling interests | $ 205 | $ 193 | |||
Sempra South American Utilities [Member] | Tecsur [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percent ownership held by noncontrolling interests | 9.80% | 9.80% | |||
Other noncontrolling interests | $ 4 | $ 4 | |||
|
GENERAL INFORMATION AND OTHER FINANCIAL DATA - DUE TO DUE FROM AFFILIATES (Details) $ in Billions |
6 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
Jun. 30, 2019
MXN ($)
|
May 17, 2019
USD ($)
|
May 16, 2019
USD ($)
|
||||
Related Party Transaction [Line Items] | ||||||||
Due from unconsolidated affiliates - current | $ 23,000,000 | $ 37,000,000 | [1] | |||||
Due from unconsolidated affiliates - noncurrent | 710,000,000 | 644,000,000 | [1] | |||||
Due to unconsolidated affiliates, current | (9,000,000) | (10,000,000) | [1] | |||||
Due to unconsolidated affiliates - noncurrent | $ (38,000,000) | $ (37,000,000) | [1] | |||||
ESJ joint venture [Member] | LIBOR [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Spread on variable rate | 6.375% | 6.375% | ||||||
Interest rate on due from affiliate, noncurrent | 8.89% | |||||||
TAG Pipeline Norte [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate on due from affiliate, noncurrent | 5.10% | |||||||
TAG Pipeline Norte [Member] | LIBOR [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Spread on variable rate | 2.90% | 2.90% | ||||||
San Diego Gas and Electric Company [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to unconsolidated affiliates, current | $ (96,000,000) | $ (61,000,000) | [1] | |||||
Maximum borrowing capacity | 1,500,000,000 | $ 1,500,000,000 | $ 750,000,000 | |||||
San Diego Gas and Electric Company [Member] | Due to/from Sempra Energy [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to unconsolidated affiliates, current | (78,000,000) | (43,000,000) | ||||||
Income taxes due (to) from Sempra Energy | 44,000,000 | 5,000,000 | ||||||
San Diego Gas and Electric Company [Member] | Due to/from SoCalGas [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to unconsolidated affiliates, current | (9,000,000) | (6,000,000) | ||||||
San Diego Gas and Electric Company [Member] | Due to/from Other affiliates [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to unconsolidated affiliates, current | (9,000,000) | (12,000,000) | ||||||
Southern California Gas Company [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due from unconsolidated affiliates - current | 35,000,000 | 7,000,000 | [1] | |||||
Due to unconsolidated affiliates, current | 0 | (34,000,000) | [1] | |||||
Maximum borrowing capacity | 750,000,000 | $ 750,000,000 | $ 750,000,000 | |||||
Southern California Gas Company [Member] | Due to/from Sempra Energy [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due from unconsolidated affiliates - current | 26,000,000 | 0 | ||||||
Income taxes due (to) from Sempra Energy | $ (7,000,000) | (4,000,000) | ||||||
Interest rate on due from affiliate, noncurrent | 2.57% | |||||||
Advances to Affiliate | $ 94,000,000 | |||||||
Southern California Gas Company [Member] | Due to/from Other affiliates [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due from unconsolidated affiliates - current | 0 | 1,000,000 | ||||||
Southern California Gas Company [Member] | Due to/from SDG&E | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due from unconsolidated affiliates - current | 9,000,000 | 6,000,000 | ||||||
Sempra Mexico [Member] | IMG [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due from unconsolidated affiliates - noncurrent | 710,000,000 | $ 641,000,000 | ||||||
Maximum borrowing capacity | $ 737,000,000 | $ 14.2 | ||||||
Sempra Mexico [Member] | IMG [Member] | Interbank Equilibrium Rate [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Spread on variable rate | 2.20% | 2.20% | ||||||
Interest rate on due from affiliate, noncurrent | 10.68% | |||||||
Sempra Mexico [Member] | ESJ joint venture [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due from unconsolidated affiliates - noncurrent | $ 0 | $ 3,000,000 | ||||||
Sempra Mexico [Member] | TAG Pipeline Norte [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to unconsolidated affiliates - noncurrent | $ (38,000,000) | $ (37,000,000) | ||||||
|
GENERAL INFORMATION AND OTHER FINANCIAL DATA - AFFILIATES REVENUE AND COST OF SALES (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 13 | $ 16 | $ 27 | $ 32 |
Costs of sales to related parties | 14 | 15 | 28 | 27 |
San Diego Gas and Electric Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 2 | 1 | 3 | 3 |
Costs of sales to related parties | 20 | 16 | 40 | 35 |
Southern California Gas Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 17 | 15 | 34 | 32 |
Costs of sales to related parties | $ 0 | $ 0 | $ 4 | $ 0 |
GENERAL INFORMATION AND OTHER FINANCIAL DATA - OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jan. 31, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Other Income [Line Items] | |||||
Allowance for equity funds used during construction | $ 23 | $ 29 | $ 44 | $ 56 | |
Investment gains | 11 | 6 | 37 | 5 | |
Gains (losses) on interest rate and foreign exchange instruments, net | 11 | (55) | 24 | 7 | |
Foreign currency transaction gains (losses), net | 4 | (42) | 11 | (12) | |
Non-service component of net periodic benefit (cost) credit | (30) | 8 | (6) | 40 | |
Penalties related to billing practices OII | 0 | 0 | (8) | 0 | |
Interest on regulatory balancing accounts, net | 6 | 1 | 5 | 1 | |
Sundry, net | 3 | (3) | 3 | (1) | |
Total | 28 | (56) | 110 | 96 | |
San Diego Gas and Electric Company [Member] | |||||
Other Income [Line Items] | |||||
Allowance for equity funds used during construction | 15 | 16 | 27 | 34 | |
Non-service component of net periodic benefit (cost) credit | (1) | 8 | 8 | 17 | |
Interest on regulatory balancing accounts, net | 6 | 2 | 6 | 2 | |
Sundry, net | (1) | (1) | 0 | 0 | |
Total | 19 | 25 | 41 | 53 | |
Southern California Gas Company [Member] | |||||
Other Income [Line Items] | |||||
Allowance for equity funds used during construction | 8 | 13 | 16 | 22 | |
Non-service component of net periodic benefit (cost) credit | (4) | 3 | 14 | 28 | |
Penalties related to billing practices OII | $ (8) | 0 | 0 | (8) | 0 |
Interest on regulatory balancing accounts, net | 0 | (1) | (1) | (1) | |
Sundry, net | (3) | (2) | (4) | (3) | |
Total | 1 | 13 | 17 | 46 | |
Sempra Mexico [Member] | IMG [Member] | |||||
Other Income [Line Items] | |||||
Foreign currency gain | $ 7 | $ 17 | |||
Foreign Currency Transaction Loss, before Tax | $ 47 | $ 8 |
GENERAL INFORMATION AND OTHER FINANCIAL DATA - INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||||
Income Tax Expense (Benefit) | $ 47 | $ (602) | $ 89 | $ (360) |
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 286 | (1,183) | 787 | (590) |
Equity (losses) earnings, before income tax | 2 | (189) | 7 | (184) |
Pretax income (loss) | $ 288 | $ (1,372) | $ 794 | $ (774) |
Effective income tax rate | 16.00% | 44.00% | 11.00% | 47.00% |
Income tax expense related to outside basis differences existing prior to the January 25, 2019 approval of our plan to sell our South American businesses | $ 103 | |||
Income tax expense related to the increase in outside basis differences from 2019 earnings since January 25, 2019 | 20 | |||
San Diego Gas and Electric Company [Member] | ||||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||||
Income Tax Expense (Benefit) | $ 35 | $ 42 | 40 | $ 98 |
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 181 | 188 | 363 | 413 |
Pretax income (loss) | $ 181 | $ 188 | $ 363 | $ 413 |
Effective income tax rate | 19.00% | 22.00% | 11.00% | 24.00% |
Income tax benefit for release of a regulatory liability | $ 31 | |||
Southern California Gas Company [Member] | ||||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||||
Income Tax Expense (Benefit) | $ (4) | $ 23 | 15 | $ 82 |
Income from continuing operations before income taxes and equity earnings (losses) of unconsolidated entities | 27 | 57 | 310 | 341 |
Pretax income (loss) | $ 27 | $ 57 | $ 310 | $ 341 |
Effective income tax rate | (15.00%) | 40.00% | 5.00% | 24.00% |
Income tax benefit for release of a regulatory liability | $ 38 |
NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
[1] | ||
---|---|---|---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Sundry | $ 279 | $ 249 | ||||
Property, plant and equipment, net | 35,282 | 34,439 | ||||
Right-of-use assets – operating leases | 600 | |||||
Deferred income tax assets | 150 | 141 | ||||
Other current liabilities | 836 | 935 | ||||
Deferred credits and other | 1,939 | 1,493 | ||||
Retained earnings | 10,425 | 10,104 | ||||
Regulatory liabilities | 4,026 | 4,016 | ||||
Accumulated other comprehensive income (loss) | (848) | (764) | ||||
Accounting Standards Update 2016-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Sundry | $ (71) | |||||
Property, plant and equipment, net | (147) | |||||
Right-of-use assets – operating leases | 603 | |||||
Deferred income tax assets | (3) | |||||
Other current liabilities | 80 | |||||
Long-term debt | (138) | |||||
Deferred credits and other | 436 | |||||
Retained earnings | 17 | |||||
Accounting Standards Update 2018-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | 40 | |||||
Regulatory liabilities | 2 | |||||
Accumulated other comprehensive income (loss) | 42 | |||||
San Diego Gas and Electric Company [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Sundry | 38 | 5 | ||||
Property, plant and equipment, net | 16,679 | 16,310 | ||||
Right-of-use assets – operating leases | 132 | |||||
Other current liabilities | 180 | 141 | ||||
Deferred credits and other | 589 | 488 | ||||
Retained earnings | 5,008 | 4,687 | ||||
Regulatory liabilities | 2,516 | 2,404 | ||||
Accumulated other comprehensive income (loss) | (11) | (10) | ||||
San Diego Gas and Electric Company [Member] | Accounting Standards Update 2016-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Sundry | 0 | |||||
Property, plant and equipment, net | 0 | |||||
Right-of-use assets – operating leases | 130 | |||||
Deferred income tax assets | 0 | |||||
Other current liabilities | 20 | |||||
Long-term debt | 0 | |||||
Deferred credits and other | 110 | |||||
Retained earnings | 0 | |||||
San Diego Gas and Electric Company [Member] | Accounting Standards Update 2018-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | 2 | |||||
Accumulated other comprehensive income (loss) | 2 | |||||
Southern California Gas Company [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Sundry | 48 | 31 | ||||
Property, plant and equipment, net | 12,805 | 12,439 | ||||
Right-of-use assets – operating leases | 105 | |||||
Other current liabilities | 204 | 217 | ||||
Deferred credits and other | 428 | 330 | ||||
Retained earnings | 3,686 | 3,390 | ||||
Regulatory liabilities | 1,510 | 1,612 | ||||
Accumulated other comprehensive income (loss) | $ (20) | $ (20) | ||||
Southern California Gas Company [Member] | Accounting Standards Update 2016-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Sundry | 0 | |||||
Property, plant and equipment, net | 0 | |||||
Right-of-use assets – operating leases | 116 | |||||
Deferred income tax assets | 0 | |||||
Other current liabilities | 23 | |||||
Long-term debt | 0 | |||||
Deferred credits and other | 93 | |||||
Retained earnings | 0 | |||||
Southern California Gas Company [Member] | Accounting Standards Update 2018-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | 2 | |||||
Regulatory liabilities | 2 | |||||
Accumulated other comprehensive income (loss) | 4 | |||||
Disposal Group Held-for-sale [Member] | Accounting Standards Update 2016-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Assets held for sale | 13 | |||||
Disposal Group Held-for-sale [Member] | San Diego Gas and Electric Company [Member] | Accounting Standards Update 2016-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Assets held for sale | 0 | |||||
Disposal Group Held-for-sale [Member] | Southern California Gas Company [Member] | Accounting Standards Update 2016-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Assets held for sale | $ 0 | |||||
|
REVENUES - DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 2,080 | $ 1,969 | $ 5,123 | $ 4,440 |
Utilities regulatory revenues | 25 | 95 | (233) | 64 |
Other revenues | 125 | 111 | 238 | 207 |
Total revenues | 2,230 | 2,175 | 5,128 | 4,711 |
Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,870 | 1,725 | 4,643 | 3,946 |
Midstream service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 151 | 169 | 330 | 345 |
Renewables service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 30 | 44 | 54 | 77 |
Other service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 29 | 31 | 96 | 72 |
Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,127 | 1,007 | 3,083 | 2,444 |
Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 953 | 962 | 2,040 | 1,996 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 998 | 999 | 2,234 | 2,130 |
Utilities regulatory revenues | 96 | 52 | 5 | (24) |
Other revenues | 0 | 0 | 0 | 0 |
Total revenues | 1,094 | 1,051 | 2,239 | 2,106 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 998 | 999 | 2,234 | 2,130 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Midstream service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Renewables service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Other service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 102 | 113 | 341 | 281 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 896 | 886 | 1,893 | 1,849 |
Operating Segments [Member] | Southern California Gas Company [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 877 | 729 | 2,405 | 1,810 |
Utilities regulatory revenues | (71) | 43 | (238) | 88 |
Other revenues | 0 | 0 | 0 | 0 |
Total revenues | 806 | 772 | 2,167 | 1,898 |
Operating Segments [Member] | Southern California Gas Company [Member] | Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 877 | 729 | 2,405 | 1,810 |
Operating Segments [Member] | Southern California Gas Company [Member] | Midstream service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Southern California Gas Company [Member] | Renewables service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Southern California Gas Company [Member] | Other service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Southern California Gas Company [Member] | Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 877 | 729 | 2,405 | 1,810 |
Operating Segments [Member] | Southern California Gas Company [Member] | Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Sempra Mexico [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 217 | 221 | 501 | 455 |
Utilities regulatory revenues | 0 | 0 | 0 | 0 |
Other revenues | 101 | 89 | 200 | 163 |
Total revenues | 318 | 310 | 701 | 618 |
Operating Segments [Member] | Sempra Mexico [Member] | Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 15 | 13 | 42 | 41 |
Operating Segments [Member] | Sempra Mexico [Member] | Midstream service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 143 | 147 | 314 | 290 |
Operating Segments [Member] | Sempra Mexico [Member] | Renewables service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 30 | 31 | 50 | 53 |
Operating Segments [Member] | Sempra Mexico [Member] | Other service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 29 | 30 | 95 | 71 |
Operating Segments [Member] | Sempra Mexico [Member] | Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 158 | 159 | 356 | 331 |
Operating Segments [Member] | Sempra Mexico [Member] | Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 59 | 62 | 145 | 124 |
Operating Segments [Member] | Sempra Renewables [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1 | 12 | 5 | 23 |
Utilities regulatory revenues | 0 | 0 | 0 | 0 |
Other revenues | 2 | 28 | 5 | 42 |
Total revenues | 3 | 40 | 10 | 65 |
Operating Segments [Member] | Sempra Renewables [Member] | Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Sempra Renewables [Member] | Midstream service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Sempra Renewables [Member] | Renewables service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1 | 12 | 5 | 23 |
Operating Segments [Member] | Sempra Renewables [Member] | Other service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Sempra Renewables [Member] | Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Sempra Renewables [Member] | Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1 | 12 | 5 | 23 |
Operating Segments [Member] | Sempra LNG [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 21 | 37 | 89 | 94 |
Utilities regulatory revenues | 0 | 0 | 0 | 0 |
Other revenues | 65 | 42 | 138 | 89 |
Total revenues | 86 | 79 | 227 | 183 |
Operating Segments [Member] | Sempra LNG [Member] | Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Sempra LNG [Member] | Midstream service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 19 | 35 | 86 | 89 |
Operating Segments [Member] | Sempra LNG [Member] | Renewables service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 1 |
Operating Segments [Member] | Sempra LNG [Member] | Other service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2 | 2 | 3 | 4 |
Operating Segments [Member] | Sempra LNG [Member] | Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 19 | 34 | 86 | 89 |
Operating Segments [Member] | Sempra LNG [Member] | Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2 | 3 | 3 | 5 |
Consolidation, Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (34) | (29) | (111) | (72) |
Utilities regulatory revenues | 0 | 0 | 0 | 0 |
Other revenues | (43) | (48) | (105) | (87) |
Total revenues | (77) | (77) | (216) | (159) |
Consolidation, Eliminations [Member] | Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (20) | (16) | (38) | (35) |
Consolidation, Eliminations [Member] | Midstream service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (11) | (13) | (70) | (34) |
Consolidation, Eliminations [Member] | Renewables service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (1) | 1 | (1) | 0 |
Consolidation, Eliminations [Member] | Other service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (2) | (1) | (2) | (3) |
Consolidation, Eliminations [Member] | Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (29) | (28) | (105) | (67) |
Consolidation, Eliminations [Member] | Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ (5) | $ (1) | $ (6) | $ (5) |
REVENUES - PERFORMANCE OBLIGATIONS (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 255 |
Revenues to be recognized, period of recognition | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 511 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 512 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 515 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 509 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 2,784 |
Revenues to be recognized, period of recognition | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 5,086 |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 1 |
Revenues to be recognized, period of recognition | 6 months |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 52 |
Revenues to be recognized, period of recognition | |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 65 |
REVENUES - CONTRACT LIABILITIES (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, opening balance | $ (70) | $ 0 |
Adoption of ASC 606 adjustment | (61) | |
Revenue from performance obligations satisfied during reporting period | 1 | 6 |
Payments received in advance | (3) | (8) |
Contract liabilities, closing balance | (72) | (63) |
Other Current Liabilities [Member] | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | 0 | |
Deferred Credits and Other [Member] | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | (72) | |
San Diego Gas and Electric Company [Member] | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | 0 | 0 |
Southern California Gas Company [Member] | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | $ 0 | $ 0 |
REVENUES - RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | $ 836 | $ 1,127 |
Accounts receivable – trade, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 817 | 1,106 |
Accounts receivable – other, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 14 | 11 |
Due from unconsolidated affiliates – current [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 5 | 4 |
Assets held-for-sale [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 0 | 6 |
San Diego Gas and Electric Company [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 384 | 377 |
San Diego Gas and Electric Company [Member] | Accounts receivable – trade, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 374 | 368 |
San Diego Gas and Electric Company [Member] | Accounts receivable – other, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 7 | 6 |
San Diego Gas and Electric Company [Member] | Due from unconsolidated affiliates – current [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 3 | 3 |
Southern California Gas Company [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 388 | 639 |
Southern California Gas Company [Member] | Accounts receivable – trade, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 381 | 634 |
Southern California Gas Company [Member] | Accounts receivable – other, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | $ 7 | $ 5 |
REGULATORY MATTERS - REGULATORY ACCOUNTS (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Net Regulatory Assets (Liabilities) Sempra Energy Consolidated [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | $ (2,400) | $ (2,394) |
San Diego Gas and Electric Company [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Regulatory balancing accounts - net undercollected, Noncurrent | 106 | 78 |
San Diego Gas and Electric Company [Member] | Fixed-price contracts and other derivatives [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (122) | (150) |
San Diego Gas and Electric Company [Member] | Deferred income taxes (refundable) recoverable in rates [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (150) | (236) |
San Diego Gas and Electric Company [Member] | Pension and other postretirement benefit plan obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 188 | 186 |
San Diego Gas and Electric Company [Member] | Removal obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (1,982) | (1,848) |
San Diego Gas and Electric Company [Member] | Unamortized loss on reacquired debt [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 6 | 7 |
San Diego Gas and Electric Company [Member] | Environmental costs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 27 | 28 |
San Diego Gas and Electric Company [Member] | Sunrise Powerlink fire mitigation [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 119 | 120 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Commodity – electric [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 135 | (8) |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Gas transportation [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 8 | 45 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Safety and reliability [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 82 | 70 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Public purpose programs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (98) | (62) |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Other balancing accounts [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 122 | 145 |
San Diego Gas and Electric Company [Member] | Other regulatory (liabilities) assets [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (222) | (177) |
San Diego Gas and Electric Company [Member] | Net Regulatory Assets (Liabilities) SDGE [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (1,887) | (1,880) |
Southern California Gas Company [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Regulatory balancing accounts - net undercollected, Noncurrent | 337 | 185 |
Southern California Gas Company [Member] | Deferred income taxes (refundable) recoverable in rates [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (233) | (336) |
Southern California Gas Company [Member] | Pension and other postretirement benefit plan obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 466 | 470 |
Southern California Gas Company [Member] | Employee benefit costs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 49 | 49 |
Southern California Gas Company [Member] | Removal obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (779) | (833) |
Southern California Gas Company [Member] | Unamortized loss on reacquired debt [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 6 | 7 |
Southern California Gas Company [Member] | Environmental costs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 28 | 28 |
Southern California Gas Company [Member] | Workers’ compensation [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 9 | 9 |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Commodity - gas including transportation | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (33) | 196 |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Safety and reliability [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 365 | 332 |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Public purpose programs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (352) | (325) |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Other balancing accounts [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 54 | (68) |
Southern California Gas Company [Member] | Other regulatory (liabilities) assets [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (182) | (130) |
Southern California Gas Company [Member] | Net Regulatory Assets (Liabilities) SoCalGas [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (602) | (601) |
Sempra Mexico [Member] | Deferred income taxes (refundable) recoverable in rates [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 81 | 81 |
Sempra Mexico [Member] | Other regulatory (liabilities) assets [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | $ 8 | $ 6 |
REGULATORY MATTERS - GENERAL RATE CASE (Details) - USD ($) $ in Millions |
1 Months Ended | 6 Months Ended | |
---|---|---|---|
Oct. 06, 2017 |
Apr. 30, 2018 |
Jun. 30, 2019 |
|
San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement | $ 2,203 | $ 1,918 | |
GRC requested revenue requirement adjustment | 221 | $ 64 | |
Tax Cuts and Jobs Act, change in tax rate, change in revenue requirement | $ 58 | ||
Proposed annual attrition percentage | 4.00% | ||
San Diego Gas and Electric Company [Member] | General Rate Case [Member] | |||
General Rate Case [Line Items] | |||
Tracked income tax expense liability | 93 | ||
San Diego Gas and Electric Company [Member] | Future Refund of Rates to Customers [Member] | |||
General Rate Case [Line Items] | |||
Regulatory liability | 113 | ||
San Diego Gas and Electric Company [Member] | Future Refund of Rates to Customers - FERC [Member] | |||
General Rate Case [Line Items] | |||
Regulatory liability | 93 | ||
Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement | 2,937 | $ 2,695 | |
GRC requested revenue requirement adjustment | $ 481 | $ 239 | |
Tax Cuts and Jobs Act, change in tax rate, change in revenue requirement | 58 | ||
Southern California Gas Company [Member] | General Rate Case [Member] | |||
General Rate Case [Line Items] | |||
Tracked income tax expense liability | 100 | ||
Southern California Gas Company [Member] | Future Refund of Rates to Customers [Member] | |||
General Rate Case [Line Items] | |||
Regulatory liability | $ 106 | ||
Minimum [Member] | San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement adjustment percentage | 5.00% | ||
Minimum [Member] | Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement adjustment percentage | 6.00% | ||
Proposed annual attrition percentage | 4.00% | ||
Maximum [Member] | San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement adjustment percentage | 7.00% | ||
Maximum [Member] | Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement adjustment percentage | 8.00% | ||
Proposed annual attrition percentage | 5.00% | ||
Otay Mesa Energy Center [Member] | San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
Owning and operating costs | $ 68 |
REGULATORY MATTERS - COST OF CAPITAL (Details) - Forecast [Member] - California Public Utilities Commission [Member] |
24 Months Ended | |
---|---|---|
Jan. 01, 2020 |
Dec. 31, 2019 |
|
San Diego Gas and Electric Company [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Return On Rate Base | 10.03% | 7.55% |
Return on rate base, revised | 8.95% | |
San Diego Gas and Electric Company [Member] | Common Equity [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Authorized weighting | 56.00% | 52.00% |
Return on rate base | 14.30% | 10.20% |
Return on rate base, revised | 12.38% | |
Southern California Gas Company [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Return On Rate Base | 7.85% | 7.34% |
Southern California Gas Company [Member] | Common Equity [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Authorized weighting | 56.00% | 52.00% |
Return on rate base | 10.70% | 10.05% |
REGULATORY MATTERS - BILLING PRACTICES (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jan. 31, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jan. 01, 2019 |
Dec. 31, 2018 |
|
Public Utilities, General Disclosures [Line Items] | |||||||
Penalties related to billing practices OII | $ 0 | $ 0 | $ 8,000,000 | $ 0 | |||
San Diego Gas and Electric Company [Member] | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
FERC Requirement To Maintain Common Equity Ratio At Or Above | 11.20% | 10.05% | |||||
Southern California Gas Company [Member] | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Penalties related to billing practices OII | $ 8,000,000 | $ 0 | $ 0 | $ 8,000,000 | $ 0 | ||
Penalties related to billing practives, payable to general fund | 3,000,000 | ||||||
Total amount penalties credited to customers | $ 5,000,000 | ||||||
Number of days that customers bills were delayed | 45 days | ||||||
Penalty credit per customer | $ 100 |
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS - ACQUISITION ACTIVITY (Details) $ / shares in Units, $ in Millions |
6 Months Ended | ||||
---|---|---|---|---|---|
May 17, 2019
USD ($)
|
May 16, 2019
USD ($)
$ / shares
|
Dec. 18, 2018
USD ($)
|
Mar. 09, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
MW
|
|
Oncor Electric Delivery Company LLC. [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired percentage interest | 80.25% | ||||
Compania Transmisora del Norte Grande S.A. [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 208 | ||||
Consideration | 226 | ||||
Cash acquired | $ 18 | ||||
Sempra Texas Holdings Corp [Member] | Oncor Electric Delivery Company LLC. [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired percentage interest | 80.03% | ||||
Sempra Texas Holdings Corp [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | Oncor Holdings [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage in consolidated entity | 100.00% | ||||
Sempra Texas Holdings Corp [Member] | Oncor Holdings [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 9,450 | ||||
Adjustment for dividends | $ 31 | ||||
Sempra Texas Holdings Corp [Member] | Oncor Holdings [Member] | Oncor Electric Delivery Company LLC. [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage in consolidated entity | 80.25% | ||||
Sempra Texas Holdings Corp [Member] | Texas Transmission Investment LLC [Member] | Oncor Electric Delivery Company LLC. [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage held by noncontrolling owners | 19.75% | ||||
Oncor Electric Delivery Company LLC Additional Acquisition [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | Oncor Holdings [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 26 | ||||
Oncor Electric Delivery Company LLC Additional Acquisition [Member] | Oncor Electric Delivery Company LLC. [Member] | Oncor Holdings [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired percentage interest | 0.22% | ||||
InfraREIT Acquisition [Member] | Oncor Holdings [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired percentage interest | 100.00% | ||||
Consideration | $ 1,275 | ||||
Acquisition price per share acquired | $ / shares | $ 21 | ||||
Management agreement termination fee paid | $ 40 | ||||
Debt assumed | $ 953 | ||||
Repayments of assumed debt | 602 | ||||
Repayments of secured debt | $ 351 | ||||
InfraREIT Partners [Member] | Oncor Holdings [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired percentage interest | 100.00% | ||||
Sharyland Holdings, LP [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired percentage interest | 50.00% | ||||
Consideration | $ 102 | ||||
Sharyland Holdings, LP [Member] | Sharyland Holdings, LP [Member] | Sharyland Utilities [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired percentage interest | 100.00% | ||||
Compania Transmisora del Norte Grande S.A. [Member] | Sempra South American Utilities [Member] | Compania Transmisora del Norte Grande S.A. [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired percentage interest | 100.00% | ||||
Ownership Interests Held By Others, Otay Mesa VIE [Member] | San Diego Gas and Electric Company [Member] | |||||
Business Acquisition [Line Items] | |||||
Generating capacity | MW | 605 | ||||
Conditional purchase obligation | $ 280 | ||||
Oncor Holdings [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Interest in Subsidiaries and Affiliates | $ 1,330 |
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS - DIVESTITURES (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Apr. 22, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Feb. 07, 2019 |
Jan. 31, 2019 |
|
Business Acquisition [Line Items] | ||||||||
Gain on sale of assets | $ 66 | $ 0 | $ 66 | $ 0 | ||||
Disposal Group Held-for-sale [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Impairment charges | $ 1,500 | |||||||
Impairment charges net of taxes and noncontrolling interests | 900 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Mississippi Hub And Bay Gas [Member] | Sempra LNG [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration to be received | $ 322 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Other Non-Utility assets [Member] | Sempra LNG [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration to be received | $ 5 | |||||||
Sempra LNG [Member] | Disposal Group Held-for-sale [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Impairment charges | 1,300 | |||||||
Impairment charges net of taxes and noncontrolling interests | 755 | |||||||
Sempra Renewables [Member] | Disposal Group Held-for-sale [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Impairment charges | 200 | |||||||
Impairment charges net of taxes and noncontrolling interests | $ 145 | |||||||
Sempra Renewables [Member] | Disposal Group Held-for-sale [Member] | Wind Facilities [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration to be received | $ 569 | |||||||
Gain on sale of assets | 61 | |||||||
Gain on sale of assets after tax and NCI | $ 45 |
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS - DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Income from discontinued operations, net of income tax | $ 78 | $ 55 | $ 36 | $ 83 | ||||
Earnings from discontinued operations attributable to common shares | 70 | 48 | 19 | 69 | ||||
Cash and cash equivalents | 55 | 55 | $ 88 | |||||
Noncurrent assets | 3,453 | 3,453 | 3,259 | [1] | ||||
Current liabilities | 336 | 336 | 368 | [1] | ||||
Noncurrent liabilities | 1,090 | 1,090 | 1,013 | [1] | ||||
Disposal Group Held-for-sale [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Current assets | 445 | 445 | 459 | [1] | ||||
Disposal Group Held-for-sale [Member] | Sempra South American Utilities [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Revenues | 403 | 389 | 824 | 815 | ||||
Cost of sales | (251) | (255) | (516) | (548) | ||||
Operating expenses | (40) | (56) | (85) | (110) | ||||
Interest and other | (6) | (4) | (9) | (9) | ||||
Income before income taxes and equity earnings | 106 | 74 | 214 | 148 | ||||
Income tax expense | (29) | (19) | (180) | (66) | ||||
Equity earnings | 1 | 0 | 2 | 1 | ||||
Income from discontinued operations, net of income tax | 78 | 55 | 36 | 83 | ||||
Earnings attributable to noncontrolling interests | (8) | (7) | (17) | (14) | ||||
Earnings from discontinued operations attributable to common shares | 70 | $ 48 | 19 | $ 69 | ||||
Cash and cash equivalents | 54 | 54 | 88 | |||||
Restricted cash | 1 | 1 | 0 | |||||
Accounts receivable, net | 311 | 311 | 315 | |||||
Due from unconsolidated affiliates | 16 | 16 | 2 | |||||
Inventories | 41 | 41 | 38 | |||||
Other current assets | 22 | 22 | 16 | |||||
Current assets | 445 | 445 | 459 | |||||
Due from unconsolidated affiliates | 48 | 48 | 44 | |||||
Goodwill and other intangible assets | 838 | 838 | 819 | |||||
Property, plant and equipment, net | 2,528 | 2,528 | 2,357 | |||||
Other noncurrent assets | 39 | 39 | 39 | |||||
Noncurrent assets | 3,453 | 3,453 | 3,259 | |||||
Short-term debt | 38 | 38 | 55 | |||||
Accounts payable | 175 | 175 | 176 | |||||
Current portion of long-term debt and finance leases | 22 | 22 | 29 | |||||
Other current liabilities | 101 | 101 | 108 | |||||
Current liabilities | 336 | 336 | 368 | |||||
Long-term debt and finance leases | 753 | 753 | 708 | |||||
Deferred income taxes | 273 | 273 | 250 | |||||
Other noncurrent liabilities | 64 | 64 | 55 | |||||
Noncurrent liabilities | 1,090 | 1,090 | 1,013 | |||||
Cumulative foreign translation adjustments | $ 460 | $ 460 | $ 506 | |||||
Disposal Group Held-for-sale [Member] | Chilquinta Energia [Member] | Sempra South American Utilities [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Ownership interest | 100.00% | 100.00% | ||||||
Disposal Group Held-for-sale [Member] | Luz Del Sur [Member] | Sempra South American Utilities [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Ownership interest | 83.60% | 83.60% | ||||||
|
INVESTMENTS IN UNCONSOLIDATED ENTITIES - NARRATIVE (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 16, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Schedule of Equity Method Investments [Line Items] | ||||
Maximum exposure under guarantor obligations | $ 3,900 | |||
Corporate Joint Venture [Member] | Sempra Mexico [Member] | IMG [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments made during period | $ 25 | |||
Corporate Joint Venture [Member] | Sempra LNG [Member] | Cameron LNG [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments made during period | 77 | 102 | ||
Capitalized interest | 26 | 22 | ||
Oncor Holdings [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Contribution | $ 117 | 1,180 | $ 117 | |
Commitment to invest | 1,067 | |||
Wind Investments [Member] | Sempra Renewables [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Portion Recognized in Earnings, Net, Qualitative Disclosures, Level of Subordination | $ 200 | |||
Sempra Energy [Member] | Oncor Holdings [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Dividends | 108 | |||
Tax sharing payments | $ 6 | |||
Sharyland Holdings, LP [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Acquired percentage interest | 50.00% | |||
Investments made during period | $ 102 |
INVESTMENTS IN UNCONSOLIDATED ENTITIES - SUMMARIZED FINANCIAL INFORMATION (Details) - Oncor Holdings [Member] - USD ($) $ in Millions |
3 Months Ended | 4 Months Ended | 6 Months Ended | |
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2018 |
Jun. 30, 2019 |
|
Schedule of Equity Method Investments [Line Items] | ||||
Operating revenues | $ 1,041 | $ 1,021 | $ 1,257 | $ 2,057 |
Operating expense | (757) | (730) | (915) | (1,532) |
Income from operations | 284 | 291 | 342 | 525 |
Interest expense | (93) | (87) | (109) | (179) |
Income tax expense | (30) | (45) | (52) | 53 |
Net income / Earnings | 136 | 141 | 160 | 250 |
Noncontrolling interest held by TTI | (27) | (28) | (32) | (50) |
Earnings attributable to Sempra Energy | $ 109 | $ 113 | $ 128 | $ 200 |
DEBT AND CREDIT FACILITIES - LINES OF CREDIT (Details) |
1 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
May 17, 2019
USD ($)
lender
|
Apr. 11, 2019
USD ($)
|
Feb. 28, 2019
USD ($)
lender
|
Dec. 31, 2018
USD ($)
lender
|
Jun. 30, 2019
USD ($)
|
May 16, 2019
USD ($)
|
|
Line of Credit Facility [Line Items] | ||||||
Standby letters of credit outstanding | $ 712,000,000 | |||||
Sempra Energy [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 1,250,000,000 | 1,250,000,000 | $ 1,250,000,000 | |||
Number of lenders | lender | 23 | |||||
Debt Agreement, Syndicated Agreement, Lender Maximum Share of Debt, Percent | 6.00% | |||||
Available unused credit | 1,250,000,000 | |||||
Capacity for issuance of letters of credit | 200,000,000 | |||||
Option to request | 500,000,000 | |||||
Term of debt instrument | 5 years | |||||
Sempra Global [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 3,190,000,000 | 3,185,000,000 | 3,190,000,000 | |||
Number of lenders | lender | 23 | |||||
Debt Agreement, Syndicated Agreement, Lender Maximum Share of Debt, Percent | 6.00% | |||||
Available unused credit | 1,738,000,000 | |||||
Term of debt instrument | 5 years | |||||
San Diego Gas and Electric Company [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 1,500,000,000 | 1,500,000,000 | 750,000,000 | |||
Number of lenders | lender | 23 | |||||
Debt Agreement, Syndicated Agreement, Lender Maximum Share of Debt, Percent | 6.00% | |||||
Available unused credit | $ 1,482,000,000 | |||||
Maximum ratio of indebtedness to total capitalization | 65.00% | |||||
California Utilities Combined [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 1,000,000,000 | |||||
Southern California Gas Company [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | |||
Number of lenders | lender | 23 | |||||
Debt Agreement, Syndicated Agreement, Lender Maximum Share of Debt, Percent | 6.00% | |||||
Available unused credit | 750,000,000 | |||||
Capacity for issuance of letters of credit | 100,000,000 | |||||
Option to request | $ 250,000,000 | |||||
Maximum ratio of indebtedness to total capitalization | 65.00% | |||||
Sempra U.S. Businesses [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 6,685,000,000 | |||||
Available unused credit | $ 5,220,000,000 | |||||
Maximum ratio of indebtedness to total capitalization | 65.00% | |||||
Sempra Mexico [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 1,500,000,000 | $ 1,170,000,000 | ||||
Number of lenders | lender | 10 | 8 | ||||
Available unused credit | $ 567,000,000 | |||||
Term of debt instrument | 5 years | |||||
Commercial Paper [Member] | Sempra Energy [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount outstanding | 0 | |||||
Commercial Paper [Member] | Sempra Global [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount outstanding | (1,447,000,000) | |||||
Unamortized debt discount | 3,000,000 | |||||
Commercial Paper [Member] | San Diego Gas and Electric Company [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount outstanding | (18,000,000) | |||||
Commercial Paper [Member] | Southern California Gas Company [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount outstanding | 0 | |||||
Commercial Paper [Member] | Sempra U.S. Businesses [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount outstanding | (1,465,000,000) | |||||
Additional Line of Credit [Member] | Sempra Mexico [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 100,000,000 | |||||
Amount outstanding | 0 | |||||
Available unused credit | $ 100,000,000 | |||||
Term of debt instrument | 3 years |
DEBT AND CREDIT FACILITIES - WEIGHTED-AVERAGE INTEREST RATES AND INTEREST RATE SWAPS (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Feb. 28, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Sempra Energy Consolidated [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate on total short-term debt outstanding | 3.10% | 2.99% | |
San Diego Gas and Electric Company [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate on total short-term debt outstanding | 2.58% | 2.97% | |
Southern California Gas Company [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate on total short-term debt outstanding | 2.58% | ||
Interest Rate Swap, maturing in March 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Notional amount of derivative | $ 850 | ||
Fixed interest rate | 3.069% |
DEBT AND CREDIT FACILITIES - LONG-TERM DEBT (Details) - USD ($) |
1 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2019 |
May 31, 2019 |
Jun. 30, 2019 |
|
Junior Subordinated Notes Due 2079 [Member] | |||
Debt Instrument [Line Items] | |||
Par value of each note | $ 25 | $ 25 | |
Southern California Gas Company [Member] | First Mortgage Bonds, Due June 2050 [Member] | |||
Debt Instrument [Line Items] | |||
Stated rate of debt | 3.95% | 3.95% | |
Junior Subordinated Debt [Member] | Junior Subordinated Notes Due 2079 [Member] | |||
Debt Instrument [Line Items] | |||
Debt amount | $ 758,000,000 | $ 758,000,000 | |
Stated rate of debt | 5.75% | 5.75% | |
Net proceeds of debt | $ 735,000,000 | ||
Debt Issuance Costs, Gross | $ 23,000,000 | 23,000,000 | |
Junior Subordinated Debt [Member] | On Or After October 1, 2024 [Member] | Junior Subordinated Notes Due 2079 [Member] | |||
Debt Instrument [Line Items] | |||
Redemption price | 100.00% | ||
Junior Subordinated Debt [Member] | Before October 1, 2024, Amended Tax Regulations [Member] | Junior Subordinated Notes Due 2079 [Member] | |||
Debt Instrument [Line Items] | |||
Redemption price | 100.00% | ||
Junior Subordinated Debt [Member] | Before October 1, 2024, Equity Credit Methodology Update [Member] | Junior Subordinated Notes Due 2079 [Member] | |||
Debt Instrument [Line Items] | |||
Redemption price | 102.00% | ||
Bonds [Member] | San Diego Gas and Electric Company [Member] | First Mortgage Bonds Due June 2049 [Member] | |||
Debt Instrument [Line Items] | |||
Debt amount | $ 400,000,000 | ||
Stated rate of debt | 4.10% | ||
Net proceeds of debt | $ 396,000,000 | ||
Debt Issuance Costs, Gross | $ 4,000,000 | 4,000,000 | |
Bonds [Member] | Southern California Gas Company [Member] | First Mortgage Bonds, Due June 2050 [Member] | |||
Debt Instrument [Line Items] | |||
Debt amount | 350,000,000 | 350,000,000 | |
Net proceeds of debt | 346,000,000 | ||
Debt Issuance Costs, Gross | $ 4,000,000 | $ 4,000,000 |
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE COMMODITY VOLUMES (Details) |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2019
MWh
MMBTU
|
Dec. 31, 2018
MWh
MMBTU
|
|
Natural Gas Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 41 | 35 |
Electric Energy Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | 2 | 2 |
Congestion Revenue Rights Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | 48 | 52 |
SDG&E [Member] | Natural Gas Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 43 | 33 |
SDG&E [Member] | Electric Energy Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | 2 | 2 |
SDG&E [Member] | Congestion Revenue Rights Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | 48 | 52 |
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE NOTIONALS (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Interest rate and foreign exchange instruments [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 306 | $ 306 |
Foreign Exchange [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | 1,060 | 1,158 |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | 1,433 | 594 |
San Diego Gas and Electric Company [Member] | Swaption [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | 142 | |
San Diego Gas and Electric Company [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 159 | $ 142 |
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE INSTRUMENTS ON THE CONDENSED BALANCE SHEET (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Current assets: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | $ 59 | $ 80 |
Additional cash collateral for commodity contracts not subject to rate recovery | 19 | 19 |
Additional cash collateral for commodity contracts subject to rate recovery | 16 | 33 |
Total | 94 | 132 |
Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 242 | 235 |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 242 | 235 |
Current liabilities: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (65) | (70) |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (65) | (70) |
Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (210) | (218) |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (210) | (218) |
Designated as Hedging Instrument [Member] | Current assets: Other [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | 0 | 2 |
Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | 0 | 0 |
Designated as Hedging Instrument [Member] | Current liabilities: Other [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | (11) | (3) |
Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | (154) | (147) |
Not Designated as Hedging Instrument [Member] | Current assets: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 21 | |
Commodity contracts not subject to rate recovery | 39 | 153 |
Associated offsetting commodity contracts | (34) | (133) |
Commodity contracts subject to rate recovery | 37 | 64 |
Associated offsetting commodity contracts | (4) | (6) |
Associated offsetting cash collateral | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 0 | |
Commodity contracts not subject to rate recovery | 7 | 7 |
Associated offsetting commodity contracts | (2) | (3) |
Commodity contracts subject to rate recovery | 239 | 233 |
Associated offsetting commodity contracts | (2) | (2) |
Associated offsetting cash collateral | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Current liabilities: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 0 | |
Commodity contracts not subject to rate recovery | (42) | (164) |
Associated offsetting commodity contracts | 34 | 133 |
Commodity contracts subject to rate recovery | (59) | (42) |
Associated offsetting commodity contracts | 4 | 6 |
Associated offsetting cash collateral | 9 | 0 |
Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 0 | |
Commodity contracts not subject to rate recovery | (6) | (6) |
Associated offsetting commodity contracts | 2 | 3 |
Commodity contracts subject to rate recovery | (60) | (72) |
Associated offsetting commodity contracts | 2 | 2 |
Associated offsetting cash collateral | 6 | 2 |
San Diego Gas and Electric Company [Member] | Current assets: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 28 | 54 |
Additional cash collateral for commodity contracts subject to rate recovery | 15 | 28 |
Total | 43 | 82 |
San Diego Gas and Electric Company [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 236 | 231 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 236 | 231 |
San Diego Gas and Electric Company [Member] | Current liabilities: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (44) | (32) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (44) | (32) |
San Diego Gas and Electric Company [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (52) | (68) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (52) | (68) |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Current assets: Other [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | 0 | |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | 0 | |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Current liabilities: Other [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | (1) | |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | 0 | |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Current assets: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 32 | 60 |
Associated offsetting commodity contracts | (4) | (6) |
Associated offsetting cash collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 238 | 233 |
Associated offsetting commodity contracts | (2) | (2) |
Associated offsetting cash collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Current liabilities: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (57) | (37) |
Associated offsetting commodity contracts | 4 | 6 |
Associated offsetting cash collateral | 9 | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (60) | (72) |
Associated offsetting commodity contracts | 2 | 2 |
Associated offsetting cash collateral | 6 | 2 |
Southern California Gas Company [Member] | Current assets: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 5 | 4 |
Additional cash collateral for commodity contracts subject to rate recovery | 1 | 5 |
Total | 6 | 9 |
Southern California Gas Company [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 1 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 1 | 0 |
Southern California Gas Company [Member] | Current liabilities: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (2) | (5) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (2) | (5) |
Southern California Gas Company [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 0 | 0 |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Current assets: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 5 | 4 |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 1 | 0 |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Current liabilities: Other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (2) | (5) |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE IMPACT ON INCOME (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 28 | $ 9 | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (108) | $ 25 | (182) | 142 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (8) | (19) | (8) | (3) |
Designated as Hedging Instrument [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | Interest rate and foreign exchange instruments [Member] | ||||
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (15) | (13) | (18) | 41 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | (1) | (1) | 1 |
Designated as Hedging Instrument [Member] | Other Income [Member] | Cash Flow Hedging [Member] | Interest rate and foreign exchange instruments [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 2 | (18) | 5 | 0 |
Designated as Hedging Instrument [Member] | Gain (Loss) On Sale Of Assets [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (10) | 0 | (10) | 0 |
Designated as Hedging Instrument [Member] | Equity Earnings (Losses) [Member] | Cash Flow Hedging [Member] | Interest rate and foreign exchange instruments [Member] | ||||
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (92) | 33 | (160) | 103 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | (1) | (1) | (5) |
Designated as Hedging Instrument [Member] | Sales [Member] | Cash Flow Hedging [Member] | Foreign Exchange [Member] | ||||
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (1) | 5 | (4) | (2) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 1 | (1) | 1 |
Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (1) | (31) | 13 | 7 |
Not Designated as Hedging Instrument [Member] | Other Income [Member] | Foreign Exchange [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 9 | (37) | 19 | 7 |
Not Designated as Hedging Instrument [Member] | Sales [Member] | Commodity Contracts not subject to rate recovery [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 17 | 0 | 17 | (9) |
Not Designated as Hedging Instrument [Member] | Cost of Electric Fuel and Purchased Power [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (27) | 6 | (25) | 8 |
Not Designated as Hedging Instrument [Member] | Cost of Natural Gas [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 2 | 1 |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (1) | 0 | (1) | 1 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1) | (1) | (2) | (4) |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Cost of Electric Fuel and Purchased Power [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (27) | 6 | (25) | 8 |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Cost of Natural Gas [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 0 | $ 2 | $ 1 |
DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Derivative [Line Items] | |
Cash flow hedge gain (loss) to be reclassified | $ (2) |
Term of interest rate cash flow hedge | 13 years |
San Diego Gas and Electric Company [Member] | |
Derivative [Line Items] | |
Term of interest rate cash flow hedge | 1 year |
San Diego Gas and Electric Company [Member] | Noncontrolling Interest [Member] | |
Derivative [Line Items] | |
Cash flow hedge gain (loss) to be reclassified | $ (1) |
Southern California Gas Company [Member] | |
Derivative [Line Items] | |
Cash flow hedge gain (loss) to be reclassified | $ (1) |
Equity Method Investee [Member] | |
Derivative [Line Items] | |
Term of interest rate cash flow hedge | 15 years |
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE INSTRUMENTS WITH CONTINGENT FEATURES (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivative [Line Items] | ||
Derivative fair value | $ 7 | $ 16 |
Collateral | 8 | |
Southern California Gas Company [Member] | ||
Derivative [Line Items] | ||
Derivative fair value | 2 | $ 5 |
Collateral | $ 2 |
FAIR VALUE MEASUREMENTS - RECURRING FAIR VALUE MEASURES (Details) - USD ($) |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value Measured at Net Asset Value Per Share [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at NAV | $ 5,000,000 | |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 467,000,000 | $ 411,000,000 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 46,000,000 | 53,000,000 |
Nuclear decommissioning trusts - Municipal bonds | 289,000,000 | 269,000,000 |
Nuclear decommissioning trusts - Other securities | 236,000,000 | 234,000,000 |
Nuclear decommissioning trusts - Total debt securities | 571,000,000 | 556,000,000 |
Total nuclear decommissioning trusts | 1,038,000,000 | 967,000,000 |
Total Assets Measured at Fair Value | 1,374,000,000 | 1,334,000,000 |
Total Liabilities Measured at Fair Value | 275,000,000 | 288,000,000 |
Recurring [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 21,000,000 | 2,000,000 |
Derivative liabilities | 165,000,000 | 150,000,000 |
Recurring [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 10,000,000 | 24,000,000 |
Effect of netting and allocation of collateral | 19,000,000 | 19,000,000 |
Derivative liabilities | 12,000,000 | 34,000,000 |
Recurring [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 270,000,000 | 289,000,000 |
Effect of netting and allocation of collateral | 16,000,000 | 33,000,000 |
Derivative liabilities | 113,000,000 | 106,000,000 |
Effect of netting and allocation of collateral | (15,000,000) | (2,000,000) |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 462,000,000 | 407,000,000 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 36,000,000 | 43,000,000 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 36,000,000 | 43,000,000 |
Total nuclear decommissioning trusts | 498,000,000 | 450,000,000 |
Total Assets Measured at Fair Value | 527,000,000 | 499,000,000 |
Total Liabilities Measured at Fair Value | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 19,000,000 | 19,000,000 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 2,000,000 |
Effect of netting and allocation of collateral | 10,000,000 | 28,000,000 |
Derivative liabilities | 15,000,000 | 2,000,000 |
Effect of netting and allocation of collateral | (15,000,000) | (2,000,000) |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 5,000,000 | 4,000,000 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 10,000,000 | 10,000,000 |
Nuclear decommissioning trusts - Municipal bonds | 289,000,000 | 269,000,000 |
Nuclear decommissioning trusts - Other securities | 236,000,000 | 234,000,000 |
Nuclear decommissioning trusts - Total debt securities | 535,000,000 | 513,000,000 |
Total nuclear decommissioning trusts | 540,000,000 | 517,000,000 |
Total Assets Measured at Fair Value | 579,000,000 | 552,000,000 |
Total Liabilities Measured at Fair Value | 189,000,000 | 189,000,000 |
Recurring [Member] | Level 2 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 21,000,000 | 2,000,000 |
Derivative liabilities | 165,000,000 | 150,000,000 |
Recurring [Member] | Level 2 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 10,000,000 | 24,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 12,000,000 | 34,000,000 |
Recurring [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 8,000,000 | 9,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 12,000,000 | 5,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 0 | 0 |
Total nuclear decommissioning trusts | 0 | 0 |
Total Assets Measured at Fair Value | 268,000,000 | 283,000,000 |
Total Liabilities Measured at Fair Value | 86,000,000 | 99,000,000 |
Recurring [Member] | Level 3 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 262,000,000 | 278,000,000 |
Effect of netting and allocation of collateral | 6,000,000 | 5,000,000 |
Derivative liabilities | 86,000,000 | 99,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 467,000,000 | 411,000,000 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 46,000,000 | 53,000,000 |
Nuclear decommissioning trusts - Municipal bonds | 289,000,000 | 269,000,000 |
Nuclear decommissioning trusts - Other securities | 236,000,000 | 234,000,000 |
Nuclear decommissioning trusts - Total debt securities | 571,000,000 | 556,000,000 |
Total nuclear decommissioning trusts | 1,038,000,000 | 967,000,000 |
Total Assets Measured at Fair Value | 1,317,000,000 | 1,280,000,000 |
Total Liabilities Measured at Fair Value | 96,000,000 | 100,000,000 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 264,000,000 | 285,000,000 |
Effect of netting and allocation of collateral | 15,000,000 | 28,000,000 |
Derivative liabilities | 111,000,000 | 101,000,000 |
Effect of netting and allocation of collateral | (15,000,000) | (2,000,000) |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,000,000 | |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 462,000,000 | 407,000,000 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 36,000,000 | 43,000,000 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 36,000,000 | 43,000,000 |
Total nuclear decommissioning trusts | 498,000,000 | 450,000,000 |
Total Assets Measured at Fair Value | 507,000,000 | 474,000,000 |
Total Liabilities Measured at Fair Value | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 1,000,000 |
Effect of netting and allocation of collateral | 9,000,000 | 23,000,000 |
Derivative liabilities | 15,000,000 | 2,000,000 |
Effect of netting and allocation of collateral | (15,000,000) | (2,000,000) |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 1 [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 5,000,000 | 4,000,000 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 10,000,000 | 10,000,000 |
Nuclear decommissioning trusts - Municipal bonds | 289,000,000 | 269,000,000 |
Nuclear decommissioning trusts - Other securities | 236,000,000 | 234,000,000 |
Nuclear decommissioning trusts - Total debt securities | 535,000,000 | 513,000,000 |
Total nuclear decommissioning trusts | 540,000,000 | 517,000,000 |
Total Assets Measured at Fair Value | 542,000,000 | 523,000,000 |
Total Liabilities Measured at Fair Value | 10,000,000 | 1,000,000 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2,000,000 | 6,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 10,000,000 | 0 |
Effect of netting and allocation of collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 2 [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,000,000 | |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 0 | 0 |
Total nuclear decommissioning trusts | 0 | 0 |
Total Assets Measured at Fair Value | 268,000,000 | 283,000,000 |
Total Liabilities Measured at Fair Value | 86,000,000 | 99,000,000 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 262,000,000 | 278,000,000 |
Effect of netting and allocation of collateral | 6,000,000 | 5,000,000 |
Derivative liabilities | 86,000,000 | 99,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 3 [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Southern California Gas Company [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 7,000,000 | 9,000,000 |
Total Liabilities Measured at Fair Value | 2,000,000 | 5,000,000 |
Southern California Gas Company [Member] | Recurring [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 6,000,000 | 4,000,000 |
Effect of netting and allocation of collateral | 1,000,000 | 5,000,000 |
Derivative liabilities | 2,000,000 | 5,000,000 |
Southern California Gas Company [Member] | Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 1,000,000 | 6,000,000 |
Total Liabilities Measured at Fair Value | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 1,000,000 |
Effect of netting and allocation of collateral | 1,000,000 | 5,000,000 |
Derivative liabilities | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 6,000,000 | 3,000,000 |
Total Liabilities Measured at Fair Value | 2,000,000 | 5,000,000 |
Southern California Gas Company [Member] | Recurring [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 6,000,000 | 3,000,000 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 2,000,000 | 5,000,000 |
Southern California Gas Company [Member] | Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 0 | 0 |
Total Liabilities Measured at Fair Value | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - RECON OF LEVEL 3 ASSETS (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Balance at April 1 | $ 182,000,000 | $ (40,000,000) | $ 179,000,000 | $ (28,000,000) | $ 179,000,000 | $ (28,000,000) |
Realized and unrealized (losses) gains | (13,000,000) | 11,000,000 | (8,000,000) | 15,000,000 | ||
Allocated transmission instruments | 0 | 3,000,000 | ||||
Settlements | 7,000,000 | (2,000,000) | 5,000,000 | (21,000,000) | ||
Balance at June 30 | 176,000,000 | (31,000,000) | 176,000,000 | (31,000,000) | 179,000,000 | |
Change in unrealized gains relating to instruments still held at the end of the period | $ (3,000,000) | $ 3,000,000 | $ 9,000,000 | $ (4,000,000) | ||
San Diego Gas and Electric Company [Member] | Minimum [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Congestion revenue rights (in dollars per MWH) | (7.25) | |||||
San Diego Gas and Electric Company [Member] | Maximum [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Congestion revenue rights (in dollars per MWH) | 11.99 | |||||
San Diego Gas and Electric Company [Member] | Weighted Average [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Congestion revenue rights (in dollars per MWH) | 0.09 | |||||
Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | Minimum [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Congestion revenue rights (in dollars per MWH) | (8.57) | |||||
Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | Maximum [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Congestion revenue rights (in dollars per MWH) | 35.21 | |||||
Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | Weighted Average [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Congestion revenue rights (in dollars per MWH) | (2.94) | |||||
Level 3 [Member] | San Diego Gas and Electric Company [Member] | Minimum [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Market electricity forward price inputs ( in dollars per MWH) | 19.75 | |||||
Level 3 [Member] | San Diego Gas and Electric Company [Member] | Maximum [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Market electricity forward price inputs ( in dollars per MWH) | 54.25 | |||||
Level 3 [Member] | San Diego Gas and Electric Company [Member] | Weighted Average [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Market electricity forward price inputs ( in dollars per MWH) | $ 37.27 | |||||
Level 3 [Member] | Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | Minimum [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Market electricity forward price inputs ( in dollars per MWH) | 22.00 | |||||
Level 3 [Member] | Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | Maximum [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Market electricity forward price inputs ( in dollars per MWH) | 62.65 | |||||
Level 3 [Member] | Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | Weighted Average [Member] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Market electricity forward price inputs ( in dollars per MWH) | $ 41.50 |
FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS (Details) - USD ($) |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized discount (net of premium) and debt issuance costs | $ 228,000,000 | $ 206,000,000 |
Finance Lease, Liability | 1,280,000,000 | |
Build-to-suit and capital lease obligations | 1,413,000,000 | |
Level 3 [Member] | Otay Mesa VIE [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 211,000,000 | 220,000,000 |
Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 710,000,000 | 644,000,000 |
Long-term amounts due to unconsolidated affiliate | 38,000,000 | 37,000,000 |
Total long-term debt | 22,303,000,000 | 21,340,000,000 |
Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 729,000,000 | 652,000,000 |
Long-term amounts due to unconsolidated affiliate | 37,000,000 | 35,000,000 |
Total long-term debt | 22,927,000,000 | 20,863,000,000 |
Fair value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 0 | 0 |
Long-term amounts due to unconsolidated affiliate | 0 | 0 |
Total long-term debt | 0 | 0 |
Fair value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 729,000,000 | 648,000,000 |
Long-term amounts due to unconsolidated affiliate | 37,000,000 | 35,000,000 |
Total long-term debt | 22,690,000,000 | 20,616,000,000 |
Fair value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 0 | 4,000,000 |
Long-term amounts due to unconsolidated affiliate | 0 | 0 |
Total long-term debt | 237,000,000 | 247,000,000 |
San Diego Gas and Electric Company [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized discount (net of premium) and debt issuance costs | 52,000,000 | 49,000,000 |
Finance Lease, Liability | 1,270,000,000 | |
Capital lease obligations | 1,272,000,000 | |
San Diego Gas and Electric Company [Member] | Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 5,370,000,000 | 4,996,000,000 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 5,685,000,000 | 5,117,000,000 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 0 | 0 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 5,474,000,000 | 4,897,000,000 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 211,000,000 | 220,000,000 |
Southern California Gas Company [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized discount (net of premium) and debt issuance costs | 35,000,000 | 32,000,000 |
Finance Lease, Liability | 10,000,000 | |
Capital lease obligations | 3,000,000 | |
Southern California Gas Company [Member] | Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 3,809,000,000 | 3,459,000,000 |
Southern California Gas Company [Member] | Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 4,047,000,000 | 3,505,000,000 |
Southern California Gas Company [Member] | Fair value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 0 | 0 |
Southern California Gas Company [Member] | Fair value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 4,047,000,000 | 3,505,000,000 |
Southern California Gas Company [Member] | Fair value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | $ 0 | $ 0 |
SAN ONOFRE NUCLEAR GENERATING STATION (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jan. 31, 2019 |
|
Jointly Owned Utility Plant Interests [Line Items] | ||
Anticipated term of dismantlement work | 10 years | |
San Diego Gas and Electric Company [Member] | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Percent of dismantlement work expense | 20.00% | |
Nuclear decommissioning trust authorized withdrawal amount | $ 455 | $ 93 |
ARO related to decommissioning costs | 611 | |
Cost study estimate decommissioning escalated | $ 834 | |
Jointly Owned Nuclear Power Plant [Member] | San Diego Gas and Electric Company [Member] | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Jointly owned utility plant, proportionate ownership share | 20.00% |
SAN ONOFRE NUCLEAR GENERATING STATION - NUCLEAR DECOMMISSIONING TRUSTS (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | $ 724 | $ 724 | $ 731 | ||
Gross unrealized gains | 328 | 328 | 259 | ||
Gross unrealized losses | (8) | (8) | (16) | ||
Estimated fair value | 1,044 | 1,044 | 974 | ||
Proceeds from sales | 272 | $ 277 | 497 | $ 487 | |
Gross realized gains | 8 | 25 | 13 | 29 | |
Gross realized losses | (1) | $ (2) | (3) | $ (5) | |
Total debt securities [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | 554 | 554 | 556 | ||
Gross unrealized gains | 18 | 18 | 6 | ||
Gross unrealized losses | (1) | (1) | (6) | ||
Estimated fair value | 571 | 571 | 556 | ||
U.S. government corporations and agencies [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | 46 | 46 | 52 | ||
Gross unrealized gains | 0 | 0 | 1 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | 46 | 46 | 53 | ||
Municipal bonds [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | 278 | 278 | 266 | ||
Gross unrealized gains | 11 | 11 | 4 | ||
Gross unrealized losses | 0 | 0 | (1) | ||
Estimated fair value | 289 | 289 | 269 | ||
Other securities [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | 230 | 230 | 238 | ||
Gross unrealized gains | 7 | 7 | 1 | ||
Gross unrealized losses | (1) | (1) | (5) | ||
Estimated fair value | 236 | 236 | 234 | ||
Equity securities [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | 164 | 164 | 168 | ||
Gross unrealized gains | 310 | 310 | 253 | ||
Gross unrealized losses | (7) | (7) | (10) | ||
Estimated fair value | 467 | 467 | 411 | ||
Cash and cash equivalents [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | 6 | 6 | 7 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | $ 6 | $ 6 | $ 7 |
SAN ONOFRE NUCLEAR GENERATING STATION - NUCLEAR INSURANCE (Details) - San Diego Gas and Electric Company [Member] $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Schedule Of Nuclear Insurance [Line Items] | |
Maximum nuclear liability insurance coverage | $ 450.0 |
Maximum secondary financial protection | 110.0 |
Maximum nuclear liability loss coverage per incident | 560.0 |
Nuclear property damage insurance | 1,500.0 |
Spent nuclear fuel storage insurance | 500.0 |
Federal nuclear property damage insurance, minimum required | 1,060.0 |
Maximum premium assessment under nuclear property damage insurance | 10.4 |
Maximum nuclear property insurance terrorism coverage | $ 3,240.0 |
COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS (Details) |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 29, 2019
plaintiff
lawsuit
|
Feb. 18, 2016
Bcf
|
Oct. 31, 2018
plaintiff
|
Aug. 31, 2018
USD ($)
|
Jan. 31, 2017
lawsuit
|
Feb. 29, 2016
USD ($)
|
Jun. 30, 2019
USD ($)
Bcf
lawsuit
|
Sep. 30, 2018
lawsuit
|
Sep. 30, 2017
USD ($)
|
Jun. 30, 2019
USD ($)
Bcf
|
Dec. 31, 2018
USD ($)
|
[1] |
Oct. 21, 2016
t
|
|||
Loss Contingencies [Line Items] | |||||||||||||||
Liability for legal proceedings | $ 107,000,000 | $ 107,000,000 | |||||||||||||
Reserve for Aliso Canyon costs | $ 46,000,000 | 46,000,000 | $ 160,000,000 | ||||||||||||
Consolidated Class Action Complaints [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of lawsuits filed | lawsuit | 2 | ||||||||||||||
Property Class Action [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of lawsuits filed | lawsuit | 1 | ||||||||||||||
Complaints Filed by Public Entities [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of lawsuits filed | lawsuit | 3 | 3 | |||||||||||||
Southern California Gas Company [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Liability for legal proceedings | $ 59,000,000 | 59,000,000 | |||||||||||||
Insurance Settlements Receivable | 1,053,000,000 | 1,053,000,000 | |||||||||||||
Reserve for Aliso Canyon costs | 46,000,000 | 46,000,000 | $ 160,000,000 | ||||||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Liability for legal proceedings | 54,000,000 | 54,000,000 | |||||||||||||
Amount of natural gas released | Bcf | 4.62 | ||||||||||||||
Mitigation requirements (in metric tons) | t | 109,000 | ||||||||||||||
Loss contingency accrual | $ 1,082,000,000 | $ 1,082,000,000 | |||||||||||||
Percent of Loss Accrual Allocated to Temporary Relocation Program | 52.00% | 52.00% | |||||||||||||
Reserve for Aliso Canyon costs | $ 46,000,000 | $ 46,000,000 | |||||||||||||
Receivable related to natural gas leak | $ 381,000,000 | 381,000,000 | |||||||||||||
Insurance proceeds | $ 672,000,000 | ||||||||||||||
Storage facility capacity | Bcf | 86 | 86 | |||||||||||||
Proportion of total gas storage capacity (percentage) | 63.00% | 63.00% | |||||||||||||
Working gas target | Bcf | 34 | 34 | |||||||||||||
Net book value of Aliso Canyon facility | $ 762,000,000 | $ 762,000,000 | |||||||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Minimum [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Liability insurance coverage | 1,200,000,000 | 1,200,000,000 | |||||||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Maximum [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Liability insurance coverage | 1,400,000,000 | 1,400,000,000 | |||||||||||||
Southern California Gas Company [Member] | Damages from Product Defects [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Maximum occupational safety and health fines | $ 75,000 | ||||||||||||||
Penalty assessments | 233,500 | ||||||||||||||
Maximum other assessments in settlement of criminal complaint | $ 6,000,000 | ||||||||||||||
Southern California Gas Company [Member] | Complaints Filed by Firefighters [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of plaintiffs | plaintiff | 51 | ||||||||||||||
Southern California Gas Company [Member] | Complaints Filed by Public Entities [Member] | Funding for Environmental Projects [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Settlement amount payable | $ 120,000,000 | ||||||||||||||
Southern California Gas Company [Member] | Complaints Filed by Public Entities [Member] | Civil Penalties [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Settlement amount payable | $ 21,000,000 | ||||||||||||||
Sempra Energy [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Reserve for Aliso Canyon costs | $ 9,000,000 | $ 9,000,000 | |||||||||||||
San Diego Gas and Electric Company [Member] | Wildfire [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Write-off of wildfire regulatory asset | $ 351,000,000 | ||||||||||||||
After-tax charge for nonrecovery of CPUC regulatory assets | $ 208,000,000 | ||||||||||||||
IMG [Member] | Corporate Joint Venture [Member] | Sempra Mexico [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Interest percentage | 40.00% | 40.00% | |||||||||||||
Service agreement term | 25 years | ||||||||||||||
Subsequent Event [Member] | Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of lawsuits | lawsuit | 395 | ||||||||||||||
Number of plaintiffs | plaintiff | 36,000 | ||||||||||||||
Subsequent Event [Member] | Energy Future Holdings Corp. [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of lawsuits | lawsuit | 111 | ||||||||||||||
Number of lawsuits filed | lawsuit | 1,685 | ||||||||||||||
|
COMMITMENTS AND CONTINGENCIES - OTHER LITIGATION (Details) proof_of_claim in Thousands, £ in Millions, $ in Millions |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jul. 29, 2019
lawsuit
|
Jun. 30, 2019
USD ($)
proof_of_claim
|
Jun. 30, 2019
GBP (£)
proof_of_claim
|
Sep. 30, 2018
USD ($)
|
Oct. 01, 2014
USD ($)
|
Oct. 01, 2014
GBP (£)
|
|
R B S Sempra Commodities [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Investment in RBS Sempra Commodities LLP | $ | $ 65.0 | |||||
R B S Sempra Commodities [Member] | HMRC VAT Claim [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
VAT tax claim paid upon appeal | $ 138.0 | £ 86.0 | ||||
Plaintiffs [Member] | HMRC VAT Claim [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Filed claims amount | $ 91.0 | £ 71.5 | ||||
Energy Future Holdings Corp. [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of proof of claims | proof_of_claim | 28 | 28 | ||||
Energy Future Holdings Corp. [Member] | Subsequent Event [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of lawsuits | 111 | |||||
Number of lawsuits filed | 1,685 |
COMMITMENTS AND CONTINGENCIES - LEASES (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
facility
| |
Lessee, Lease, Description [Line Items] | |
Lease term | 12 months |
Number of battery storage facilities | facility | 3 |
Leases not yet commenced, future minimum lease payments, 2020 - 2024 | $ 1 |
Leases not yet commenced, future minimum lease payments, thereafter | 18 |
Aggregate maximum lease limit | 187 |
San Diego Gas and Electric Company [Member] | |
Lessee, Lease, Description [Line Items] | |
Aggregate maximum lease limit, utilized | 53 |
Southern California Gas Company [Member] | |
Lessee, Lease, Description [Line Items] | |
Aggregate maximum lease limit, utilized | $ 75 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Termination period | 1 year |
Annual increase in rent | 1.00% |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Option to extend terms | 25 years |
Annual increase in rent | 5.00% |
COMMITMENTS AND CONTINGENCIES - LESSEE BALANCE SHEET INFORMATION (Details) |
Jun. 30, 2019
USD ($)
|
---|---|
Lessee, Lease, Description [Line Items] | |
Right-of-use assets | $ 600,000,000 |
Property, plant and equipment | 1,331,000,000 |
Accumulated depreciation | (51,000,000) |
Property, plant and equipment, net | 1,280,000,000 |
Total right-of-use assets | 1,880,000,000 |
Other current liabilities | 49,000,000 |
Deferred credits and other | 450,000,000 |
Total operating lease liabilities | 499,000,000 |
Current portion of long-term debt and finance leases | 23,000,000 |
Long-term debt and finance leases | 1,257,000,000 |
Total finance lease liabilities | 1,280,000,000 |
Total lease liabilities | $ 1,779,000,000 |
Operating leases, Weighted-average remaining lease term (in years) | 14 years |
Finance leases, Weighted-average remaining lease term (in years) | 20 years |
Operating leases, Weighted-average discount rate | 5.90% |
Finance leases, Weighted-average discount rate | 14.86% |
San Diego Gas and Electric Company [Member] | |
Lessee, Lease, Description [Line Items] | |
Right-of-use assets | $ 132,000,000 |
Property, plant and equipment | 1,317,000,000 |
Accumulated depreciation | (47,000,000) |
Property, plant and equipment, net | 1,270,000,000 |
Total right-of-use assets | 1,402,000,000 |
Other current liabilities | 22,000,000 |
Deferred credits and other | 108,000,000 |
Total operating lease liabilities | 130,000,000 |
Current portion of long-term debt and finance leases | 19,000,000 |
Long-term debt and finance leases | 1,251,000,000 |
Total finance lease liabilities | 1,270,000,000 |
Total lease liabilities | $ 1,400,000,000 |
Operating leases, Weighted-average remaining lease term (in years) | 7 years |
Finance leases, Weighted-average remaining lease term (in years) | 20 years |
Operating leases, Weighted-average discount rate | 3.69% |
Finance leases, Weighted-average discount rate | 14.90% |
Southern California Gas Company [Member] | |
Lessee, Lease, Description [Line Items] | |
Right-of-use assets | $ 105,000,000 |
Property, plant and equipment | 14,000,000 |
Accumulated depreciation | (4,000,000) |
Property, plant and equipment, net | 10,000,000 |
Total right-of-use assets | 115,000,000 |
Other current liabilities | 21,000,000 |
Deferred credits and other | 84,000,000 |
Total operating lease liabilities | 105,000,000 |
Current portion of long-term debt and finance leases | 4,000,000 |
Long-term debt and finance leases | 6,000,000 |
Total finance lease liabilities | 10,000,000 |
Total lease liabilities | $ 115,000,000 |
Operating leases, Weighted-average remaining lease term (in years) | 6 years |
Finance leases, Weighted-average remaining lease term (in years) | 5 years |
Operating leases, Weighted-average discount rate | 3.75% |
Finance leases, Weighted-average discount rate | 3.68% |
COMMITMENTS AND CONTINGENCIES - LESSEE STATEMENT OF OPERATIONS INFORMATION (Details) - USD ($) |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 25,000,000 | $ 49,000,000 |
Amortization of ROU assets | 6,000,000 | 11,000,000 |
Interest on lease liabilities | 47,000,000 | 94,000,000 |
Total finance lease costs | 53,000,000 | 105,000,000 |
Short-term lease costs | 1,000,000 | 2,000,000 |
Variable lease costs | 148,000,000 | 240,000,000 |
Total lease costs | 227,000,000 | 396,000,000 |
Southern California Gas Company [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 7,000,000 | 14,000,000 |
Amortization of ROU assets | 1,000,000 | 2,000,000 |
Interest on lease liabilities | 0 | 0 |
Total finance lease costs | 1,000,000 | 2,000,000 |
Short-term lease costs | 0 | 0 |
Variable lease costs | 4,000,000 | 6,000,000 |
Total lease costs | 12,000,000 | 22,000,000 |
San Diego Gas and Electric Company [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 9,000,000 | 17,000,000 |
Amortization of ROU assets | 5,000,000 | 9,000,000 |
Interest on lease liabilities | 47,000,000 | 94,000,000 |
Total finance lease costs | 52,000,000 | 103,000,000 |
Short-term lease costs | 0 | 0 |
Variable lease costs | 144,000,000 | 234,000,000 |
Total lease costs | $ 205,000,000 | $ 354,000,000 |
COMMITMENTS AND CONTINGENCIES - LESSEE CASH FLOW INFORMATION (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Lessee, Lease, Description [Line Items] | ||
Cash paid for operating leases | $ 59,000,000 | |
Cash paid for finance leases - operating | 87,000,000 | |
Cash paid for finance leases - financing | 11,000,000 | |
Increase in operating lease obligations for right-of-use assets | 559,000,000 | |
Increase in finance lease obligations for investment in PP&E | 16,000,000 | $ 7,000,000 |
Southern California Gas Company [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Cash paid for operating leases | 14,000,000 | |
Cash paid for finance leases - operating | 0 | |
Cash paid for finance leases - financing | 2,000,000 | |
Increase in operating lease obligations for right-of-use assets | 117,000,000 | |
Increase in finance lease obligations for investment in PP&E | 9,000,000 | 7,000,000 |
San Diego Gas and Electric Company [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Cash paid for operating leases | 17,000,000 | |
Cash paid for finance leases - operating | 87,000,000 | |
Cash paid for finance leases - financing | 9,000,000 | |
Increase in operating lease obligations for right-of-use assets | 146,000,000 | |
Increase in finance lease obligations for investment in PP&E | $ 7,000,000 | $ 0 |
COMMITMENTS AND CONTINGENCIES - LESSEE MATURITY OF LEASE LIABILITIES (Details) |
Jun. 30, 2019
USD ($)
|
---|---|
Operating leases | |
2019 (excluding first six months of 2019) | $ 39,000,000 |
2020 | 70,000,000 |
2021 | 67,000,000 |
2022 | 60,000,000 |
2023 | 51,000,000 |
Thereafter | 481,000,000 |
Total undiscounted lease payments | 768,000,000 |
Less: imputed interest | (269,000,000) |
Total operating lease liabilities | 499,000,000 |
Less: current lease liabilities | (49,000,000) |
Long-term lease liabilities | 450,000,000 |
Finance leases | |
2019 (excluding first six months of 2019) | 98,000,000 |
2020 | 192,000,000 |
2021 | 190,000,000 |
2022 | 190,000,000 |
2023 | 190,000,000 |
Thereafter | 2,807,000,000 |
Total undiscounted lease payments | 3,667,000,000 |
Less: imputed interest | (2,387,000,000) |
Total finance lease liabilities | 1,280,000,000 |
Less: current lease liabilities | (23,000,000) |
Long-term lease liabilities | 1,257,000,000 |
Southern California Gas Company [Member] | |
Operating leases | |
2019 (excluding first six months of 2019) | 12,000,000 |
2020 | 23,000,000 |
2021 | 20,000,000 |
2022 | 17,000,000 |
2023 | 13,000,000 |
Thereafter | 32,000,000 |
Total undiscounted lease payments | 117,000,000 |
Less: imputed interest | (12,000,000) |
Total operating lease liabilities | 105,000,000 |
Less: current lease liabilities | (21,000,000) |
Long-term lease liabilities | 84,000,000 |
Finance leases | |
2019 (excluding first six months of 2019) | 3,000,000 |
2020 | 3,000,000 |
2021 | 1,000,000 |
2022 | 1,000,000 |
2023 | 1,000,000 |
Thereafter | 2,000,000 |
Total undiscounted lease payments | 11,000,000 |
Less: imputed interest | (1,000,000) |
Total finance lease liabilities | 10,000,000 |
Less: current lease liabilities | (4,000,000) |
Long-term lease liabilities | 6,000,000 |
San Diego Gas and Electric Company [Member] | |
Operating leases | |
2019 (excluding first six months of 2019) | 15,000,000 |
2020 | 26,000,000 |
2021 | 26,000,000 |
2022 | 21,000,000 |
2023 | 17,000,000 |
Thereafter | 43,000,000 |
Total undiscounted lease payments | 148,000,000 |
Less: imputed interest | (18,000,000) |
Total operating lease liabilities | 130,000,000 |
Less: current lease liabilities | (22,000,000) |
Long-term lease liabilities | 108,000,000 |
Finance leases | |
2019 (excluding first six months of 2019) | 95,000,000 |
2020 | 189,000,000 |
2021 | 189,000,000 |
2022 | 189,000,000 |
2023 | 189,000,000 |
Thereafter | 2,805,000,000 |
Total undiscounted lease payments | 3,656,000,000 |
Less: imputed interest | (2,386,000,000) |
Total finance lease liabilities | 1,270,000,000 |
Less: current lease liabilities | (19,000,000) |
Long-term lease liabilities | $ 1,251,000,000 |
COMMITMENTS AND CONTINGENCIES - FUTURE MINIMUM LEASE PAYMENTS UNDER TOPIC 840 (Details) $ in Millions |
Dec. 31, 2018
USD ($)
|
---|---|
Capital Leases [Abstract] | |
2019 | $ 215 |
2020 | 210 |
2021 | 211 |
2022 | 211 |
2023 | 211 |
Thereafter | 3,196 |
Total undiscounted lease payments | 4,254 |
Less: estimated executory costs | (480) |
Less: imputed interest | (2,483) |
Total future minimum lease payments | 1,291 |
Leases, Operating [Abstract] | |
2019 | 77 |
2020 | 55 |
2021 | 53 |
2022 | 50 |
2023 | 42 |
Thereafter | 253 |
Total undiscounted lease payments | 530 |
HQ Build To Suit Lease [Member] | |
Capital Leases [Abstract] | |
2019 | 10 |
2020 | 11 |
2021 | 11 |
2022 | 11 |
2023 | 11 |
Thereafter | 217 |
Total undiscounted lease payments | 271 |
San Diego Gas and Electric Company [Member] | |
Capital Leases [Abstract] | |
2019 | 212 |
2020 | 210 |
2021 | 211 |
2022 | 211 |
2023 | 211 |
Thereafter | 3,196 |
Total undiscounted lease payments | 4,251 |
Less: estimated executory costs | (480) |
Less: imputed interest | (2,483) |
Total future minimum lease payments | 1,288 |
Leases, Operating [Abstract] | |
2019 | 23 |
2020 | 22 |
2021 | 22 |
2022 | 21 |
2023 | 17 |
Thereafter | 48 |
Total undiscounted lease payments | 153 |
Southern California Gas Company [Member] | |
Capital Leases [Abstract] | |
2019 | 3 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total undiscounted lease payments | 3 |
Less: estimated executory costs | 0 |
Less: imputed interest | 0 |
Total future minimum lease payments | 3 |
Leases, Operating [Abstract] | |
2019 | 26 |
2020 | 22 |
2021 | 21 |
2022 | 20 |
2023 | 16 |
Thereafter | 28 |
Total undiscounted lease payments | $ 133 |
COMMITMENTS AND CONTINGENCIES - LESSOR INFORMATION (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
[1] | |||
Lessee, Lease, Description [Line Items] | ||||||||
Property, plant and equipment | $ 47,907 | $ 47,907 | $ 46,615 | |||||
Accumulated depreciation | (12,625) | (12,625) | (12,176) | |||||
Property, plant and equipment, net | 35,282 | 35,282 | $ 34,439 | |||||
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | ||||||||
2019 (excluding first six months of 2019) | 106 | 106 | ||||||
2020 | 200 | 200 | ||||||
2021 | 200 | 200 | ||||||
2022 | 200 | 200 | ||||||
2023 | 200 | 200 | ||||||
Thereafter | 2,615 | 2,615 | ||||||
Total undiscounted cash flows | 3,521 | 3,521 | ||||||
Minimum lease payments | 49 | $ 47 | 99 | $ 96 | ||||
Variable lease payments | 2 | 24 | 6 | 37 | ||||
Total revenues from operating leases | 51 | 71 | 105 | 133 | ||||
Assets Leased to Others [Member] | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Property, plant and equipment | 1,033 | 1,033 | ||||||
Accumulated depreciation | (160) | (160) | ||||||
Property, plant and equipment, net | 873 | 873 | ||||||
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | ||||||||
Depreciation | $ 10 | $ 19 | $ 19 | $ 36 | ||||
|
COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS (Details) - Sempra LNG [Member] - Liquefied Natural Gas Contracts [Member] $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Loss Contingencies [Line Items] | |
Decrease in 2019 | $ (192) |
Decrease in 2020 | (3) |
Increase in 2021 | 7 |
Increase in 2022 | 10 |
Increase in 2023 | 9 |
Increase thereafter | $ 102 |
SEGMENT INFORMATION (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
segment
|
Mar. 31, 2019
segment
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
May 16, 2019 |
Dec. 31, 2018
USD ($)
|
Mar. 09, 2018 |
||||
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 5 | 6 | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
REVENUES | $ 2,230 | $ 2,175 | $ 5,128 | $ 4,711 | |||||||
INTEREST EXPENSE | 258 | 228 | 518 | 434 | |||||||
INTEREST INCOME | 21 | 18 | 42 | 47 | |||||||
DEPRECIATION AND AMORTIZATION | 389 | 377 | 772 | 749 | |||||||
Income Tax Expense (Benefit) | 47 | (602) | 89 | (360) | |||||||
Equity earnings (losses), before income tax: | 2 | (189) | 7 | (184) | |||||||
Equity earnings, net of income tax: | 116 | 185 | 212 | 159 | |||||||
Equity earnings (losses) | 118 | (4) | 219 | (25) | |||||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 354 | (561) | 795 | (214) | |||||||
Discontinued operations | 70 | 48 | 19 | 69 | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 1,651 | 1,834 | |||||||||
ASSETS | 62,727 | 62,727 | $ 60,638 | [1] | |||||||
EQUITY METHOD AND OTHER INVESTMENTS | 13,012 | 13,012 | 11,972 | ||||||||
Operating Segments [Member] | SDG&E [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
REVENUES | 1,094 | 1,051 | 2,239 | 2,106 | |||||||
INTEREST EXPENSE | 102 | 53 | 205 | 105 | |||||||
INTEREST INCOME | 1 | 1 | 2 | 2 | |||||||
DEPRECIATION AND AMORTIZATION | 189 | 169 | 375 | 335 | |||||||
Income Tax Expense (Benefit) | 35 | 42 | 40 | 98 | |||||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 143 | 146 | 319 | 316 | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 708 | 851 | |||||||||
ASSETS | 19,888 | 19,888 | 19,225 | ||||||||
Operating Segments [Member] | SoCalGas [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
REVENUES | 806 | 772 | 2,167 | 1,898 | |||||||
INTEREST EXPENSE | 34 | 26 | 68 | 53 | |||||||
INTEREST INCOME | 1 | 1 | 1 | 1 | |||||||
DEPRECIATION AND AMORTIZATION | 148 | 138 | 295 | 273 | |||||||
Income Tax Expense (Benefit) | (4) | 23 | 15 | 82 | |||||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 30 | 33 | 294 | 258 | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 659 | 783 | |||||||||
ASSETS | 15,767 | 15,767 | 15,389 | ||||||||
Operating Segments [Member] | Sempra Texas Utility [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Equity earnings (losses), before income tax: | 1 | 0 | 1 | 0 | |||||||
Equity earnings, net of income tax: | 112 | 114 | 206 | 129 | |||||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 113 | 114 | 207 | 129 | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
ASSETS | 11,033 | 11,033 | 9,652 | ||||||||
EQUITY METHOD AND OTHER INVESTMENTS | 11,033 | 11,033 | 9,652 | ||||||||
Operating Segments [Member] | Sempra Mexico [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
REVENUES | 318 | 310 | 701 | 618 | |||||||
INTEREST EXPENSE | 29 | 30 | 59 | 60 | |||||||
INTEREST INCOME | 19 | 16 | 38 | 31 | |||||||
DEPRECIATION AND AMORTIZATION | 46 | 43 | 90 | 86 | |||||||
Income Tax Expense (Benefit) | 44 | (55) | 116 | 100 | |||||||
Equity earnings, net of income tax: | 4 | 71 | 6 | 30 | |||||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 73 | 97 | 130 | 117 | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 240 | 140 | |||||||||
ASSETS | 9,609 | 9,609 | 9,165 | ||||||||
EQUITY METHOD AND OTHER INVESTMENTS | 729 | 729 | 747 | ||||||||
Operating Segments [Member] | Sempra Renewables [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
REVENUES | 3 | 40 | 10 | 65 | |||||||
INTEREST EXPENSE | 0 | 5 | 3 | 10 | |||||||
INTEREST INCOME | 1 | 2 | 11 | 4 | |||||||
DEPRECIATION AND AMORTIZATION | 0 | 14 | 0 | 27 | |||||||
Income Tax Expense (Benefit) | 14 | (58) | 4 | (65) | |||||||
Equity earnings (losses), before income tax: | 2 | (187) | 5 | (182) | |||||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 46 | (109) | 59 | (88) | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 2 | 37 | |||||||||
ASSETS | 0 | 0 | 2,549 | ||||||||
EQUITY METHOD AND OTHER INVESTMENTS | 0 | 0 | 291 | ||||||||
Operating Segments [Member] | Sempra LNG [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
REVENUES | 86 | 79 | 227 | 183 | |||||||
INTEREST EXPENSE | 3 | 7 | 7 | 15 | |||||||
INTEREST INCOME | 16 | 13 | 30 | 26 | |||||||
DEPRECIATION AND AMORTIZATION | 3 | 11 | 5 | 22 | |||||||
Income Tax Expense (Benefit) | 2 | (506) | 6 | (494) | |||||||
Equity earnings (losses), before income tax: | 0 | 1 | 2 | 1 | |||||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 6 | (764) | 11 | (780) | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 40 | 13 | |||||||||
ASSETS | 3,736 | 3,736 | 4,060 | ||||||||
EQUITY METHOD AND OTHER INVESTMENTS | 1,244 | 1,244 | 1,271 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
INTEREST EXPENSE | 110 | 137 | 219 | 249 | |||||||
INTEREST INCOME | 0 | (3) | 1 | 13 | |||||||
DEPRECIATION AND AMORTIZATION | 3 | 2 | 7 | 6 | |||||||
Income Tax Expense (Benefit) | (44) | (48) | (92) | (81) | |||||||
Equity earnings (losses), before income tax: | (1) | (3) | (1) | (3) | |||||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | (127) | (126) | (244) | (235) | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 2 | 10 | |||||||||
ASSETS | 1,196 | 1,196 | 1,070 | ||||||||
EQUITY METHOD AND OTHER INVESTMENTS | 6 | 6 | 11 | ||||||||
Segment Reconciling Items [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
REVENUES | (1) | (1) | (1) | (2) | |||||||
Discontinued operations | 70 | 48 | 19 | 69 | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Discontinued operations | 3,898 | 3,898 | 3,718 | ||||||||
Intersegment eliminations [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
REVENUES | (76) | (76) | (215) | (157) | |||||||
INTEREST EXPENSE | (20) | (30) | (43) | (58) | |||||||
INTEREST INCOME | (17) | (12) | (41) | (30) | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
ASSETS | (2,400) | (2,400) | $ (4,190) | ||||||||
Intersegment eliminations [Member] | SDG&E [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
REVENUES | 2 | 1 | 3 | 2 | |||||||
Intersegment eliminations [Member] | SoCalGas [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
REVENUES | 17 | 15 | 34 | 32 | |||||||
Intersegment eliminations [Member] | Sempra Mexico [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
REVENUES | 32 | 28 | 60 | 57 | |||||||
Intersegment eliminations [Member] | Sempra LNG [Member] | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
REVENUES | $ 25 | $ 32 | $ 118 | $ 66 | |||||||
Oncor Electric Delivery Company LLC. [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Acquired percentage interest | 80.25% | ||||||||||
Oncor Electric Delivery Company LLC. [Member] | Oncor Holdings [Member] | Sempra Texas Utility [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Ownership interest | 80.25% | 80.25% | |||||||||
Sharyland Holdings, LP [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Acquired percentage interest | 50.00% | ||||||||||
Sharyland Holdings, LP [Member] | Sempra Texas Utility [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Acquired percentage interest | 50.00% | ||||||||||
|
SUBSEQUENT EVENT (Details) $ in Millions |
Jul. 12, 2019
USD ($)
|
---|---|
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
The Liquidity Fund | $ 10,500.0 |
Subsequent Event [Member] | IOUS, PG&E, Edison and SDG&E [Member] | |
Subsequent Event [Line Items] | |
The Liquidity Fund | 10,500.0 |
Forecast [Member] | IOUS, PG&E, Edison and SDG&E [Member] | |
Subsequent Event [Line Items] | |
Initial Shareholder Contributions | 7,500.0 |
Additional Annual Contributions | $ 300.0 |
Period of Annual Contributions | 10 years |
Total Shareholder Contribution | $ 21,000.0 |
Forecast [Member] | San Diego Gas and Electric Company [Member] | |
Subsequent Event [Line Items] | |
Initial Shareholder Contributions | 322.5 |
Additional Annual Contributions | $ 12.9 |
Period of Annual Contributions | 10 years |
Total Shareholder Contribution | $ 452.0 |
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