COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2019

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.

LESSEE INFORMATION ON THE CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	December 31, 2019
	Sempra Energy Consolidated			SDG&E			SoCalGas
Right-of-use assets:
Operating leases:
Right-of-use assets	$	591		$	130		$	94
Finance leases:
Property, plant and equipment	1,353			1,326			27
Accumulated depreciation	(64		)	(57		)	(7		)
Property, plant and equipment, net	1,289			1,269			20
Total right-of-use assets	$	1,880		$	1,399		$	114
Lease liabilities:
Operating leases:
Other current liabilities	$	52		$	27		$	18
Deferred credits and other	445			102			75
	497			129			93
Finance leases:
Current portion of long-term debt and finance leases	26			20			6
Long-term debt and finance leases	1,263			1,250			13
	1,289			1,270			19
Total lease liabilities	$	1,786		$	1,399		$	112
Weighted-average remaining lease term (in years):
Operating leases	13			6			6
Finance leases	19			20			6
Weighted-average discount rate:
Operating leases	6.01		%	3.55		%	3.73		%
Finance leases	14.76		%	14.83		%	3.23		%

Lease, Cost

The components of lease costs were as follows:

LESSEE INFORMATION ON THE CONSOLIDATED STATEMENTS OF OPERATIONS(1)
(Dollars in millions)
	Year ended December 31, 2019
	Sempra Energy Consolidated		SDG&E		SoCalGas
Operating lease costs	$	96	$	33	$	27
Finance lease costs:
Amortization of ROU assets	24		18		6
Interest on lease liabilities	173		173		—
Total finance lease costs	197		191		6
Short-term lease costs(2)	6		2		—
Variable lease costs(2)	482		471		10
Total lease costs	$	781	$	697	$	43

⁽¹⁾  Includes costs capitalized in PP&E.

⁽²⁾  Short-term leases with variable lease costs are recorded and presented as variable lease costs.

Schedule of Cash Flow, Supplemental Disclosures

Cash paid for amounts included in the measurement of lease liabilities was as follows:

LESSEE INFORMATION ON THE CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Year ended December 31, 2019
	Sempra Energy Consolidated		SDG&E		SoCalGas
Operating activities:
Cash paid for operating leases	$	101	$	33	$	27
Cash paid for finance leases	173		173		—
Financing activities:
Cash paid for finance leases	24		18		6
Increase in operating lease obligations for right-of-use assets	585		158		118
Increase in finance lease obligations for investment in PP&E	38		16		22

Lessee, Operating Lease, Liability, Maturity

The table below presents the maturity analysis of our lease liabilities and reconciliation to the present value of lease liabilities:

LESSEE MATURITY ANALYSIS OF LIABILITIES
(Dollars in millions)
	December 31, 2019
	Sempra Energy Consolidated						SDG&E						SoCalGas
	Operating leases			Finance leases			Operating leases			Finance leases			Operating leases			Finance leases
2020	$	75		$	198		$	30		$	192		$	22		$	6
2021	75			193			32			190			20			3
2022	63			192			22			190			18			2
2023	54			192			17			190			13			2
2024	50			187			15			185			12			2
Thereafter	452			2,629			28			2,624			19			5
Total undiscounted lease payments	769			3,591			144			3,571			104			20
Less: imputed interest	(272		)	(2,302		)	(15		)	(2,301		)	(11		)	(1		)
Total lease liabilities	497			1,289			129			1,270			93			19
Less: current lease liabilities	(52		)	(26		)	(27		)	(20		)	(18		)	(6		)
Long-term lease liabilities	$	445		$	1,263		$	102		$	1,250		$	75		$	13

Finance Lease, Liability, Maturity

The table below presents the maturity analysis of our lease liabilities and reconciliation to the present value of lease liabilities:

LESSEE MATURITY ANALYSIS OF LIABILITIES
(Dollars in millions)
	December 31, 2019
	Sempra Energy Consolidated						SDG&E						SoCalGas
	Operating leases			Finance leases			Operating leases			Finance leases			Operating leases			Finance leases
2020	$	75		$	198		$	30		$	192		$	22		$	6
2021	75			193			32			190			20			3
2022	63			192			22			190			18			2
2023	54			192			17			190			13			2
2024	50			187			15			185			12			2
Thereafter	452			2,629			28			2,624			19			5
Total undiscounted lease payments	769			3,591			144			3,571			104			20
Less: imputed interest	(272		)	(2,302		)	(15		)	(2,301		)	(11		)	(1		)
Total lease liabilities	497			1,289			129			1,270			93			19
Less: current lease liabilities	(52		)	(26		)	(27		)	(20		)	(18		)	(6		)
Long-term lease liabilities	$	445		$	1,263		$	102		$	1,250		$	75		$	13

Schedule of Rent Expense

Rent expense for operating leases was as follows:

RENT EXPENSE – OPERATING LEASES
(Dollars in millions)
	Years ended December 31,
	2018		2017
Sempra Energy Consolidated	$	122	$	107
SDG&E	27		28
SoCalGas	41		43

Schedule Of Operating Leases Future Minimum Payments Due

The table below presents the future minimum lease payments under previous U.S. GAAP:

FUTURE MINIMUM LEASE PAYMENTS
(Dollars in millions)
	December 31, 2018
	Sempra Energy Consolidated							SDG&E					SoCalGas
	Build-to-suit arrangement		Operating leases		Capital leases			Operating leases		Capital leases			Operating leases		Capital leases
2019	$	10	$	77	$	215		$	23	$	212		$	26	$	3
2020	11		55		210			22		210			22		—
2021	11		53		211			22		211			21		—
2022	11		50		211			21		211			20		—
2023	11		42		211			17		211			16		—
Thereafter	217		253		3,196			48		3,196			28		—
Total undiscounted lease payments	$	271	$	530	4,254			$	153	4,251			$	133	3
Less: estimated executory costs					(480		)			(480		)			—
Less: imputed interest					(2,483		)			(2,483		)			—
Total future minimum lease payments					$	1,291				$	1,288				$	3

Lessor, Operating Lease, Payments to be Received, Maturity

We provide information below for leases for which we are the lessor.

LESSOR INFORMATION – SEMPRA ENERGY
(Dollars in millions)
	December 31,
	2019			2018
Assets subject to operating leases:
Assets held for sale	$	—		$	172
Property, plant and equipment(1)	1,038			1,022
Accumulated depreciation	(179		)	(142		)
Property, plant and equipment, net	$	859		$	880
				December 31, 2019
Maturity analysis of operating lease payments:
2020				$	201
2021				193
2022				193
2023				193
2024				193
Thereafter				2,402
Total undiscounted cash flows				$	3,375

⁽¹⁾   Included in Machinery and Equipment — Pipelines and Storage within the major functional categories of PP&E.

Operating Lease, Lease Income

LESSOR INFORMATION ON THE CONSOLIDATED STATEMENTS OF OPERATIONS – SEMPRA ENERGY
(Dollars in millions)
	Years ended December 31,
	2019		2018		2017
Fixed lease payments	$	200	$	194	$	193
Variable lease payments	6		72		44
Total revenues from operating leases(1)	$	206	$	266	$	237
Depreciation expense	$	38	$	72	$	57

⁽¹⁾   Included in Revenues: Energy-Related Businesses on the Consolidated Statements of Operations.

Schedule Of Estimated Future Payments Under Natural Gas Contracts

At December 31, 2019, the future minimum payments under existing natural gas contracts and natural gas storage and transportation contracts are as follows:

FUTURE MINIMUM PAYMENTS – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Storage and transportation		Natural gas(1)		Total(1)
2020	$	169	$	23	$	192
2021	161		15		176
2022	76		11		87
2023	54		11		65
2024	43		12		55
Thereafter	297		7		304
Total minimum payments	$	800	$	79	$	879

⁽¹⁾  Excludes amounts related to the LNG purchase agreement discussed below.

FUTURE MINIMUM PAYMENTS – SOCALGAS
(Dollars in millions)
	Transportation		Natural gas		Total
2020	$	122	$	2	$	124
2021	117		1		118
2022	36		—		36
2023	23		—		23
2024	13		—		13
Thereafter	35		—		35
Total minimum payments	$	346	$	3	$	349

Schedule Of Payments Under Natural Gas Contracts

Total payments under natural gas contracts and natural gas storage and transportation contracts as well as payments to meet additional portfolio needs at Sempra Energy Consolidated and SoCalGas were as follows:

PAYMENTS UNDER NATURAL GAS CONTRACTS
(Dollars in millions)
	Years ended December 31,
	2019		2018		2017
Sempra Energy Consolidated	$	1,326	$	1,345	$	1,429
SoCalGas	1,181		1,169		1,213

Schedule Of L N G Commitment Amounts

At December 31, 2019, the following LNG commitment amounts are based on the assumption that all cargoes, less those already confirmed to be diverted, under the agreement are delivered:

LNG COMMITMENT AMOUNTS
(Dollars in millions)
2020	$	265
2021	368
2022	370
2023	374
2024	387
Thereafter	1,842
Total	$	3,606

Schedule Of Estimated Future Payments Under Purchased Power Contracts

At December 31, 2019, the future minimum payments under long-term purchased-power contracts for Sempra Energy Consolidated and SDG&E are as follows:

FUTURE MINIMUM PAYMENTS – PURCHASED-POWER CONTRACTS
(Dollars in millions)
2020	$	233
2021	229
2022	233
2023	194
2024	166
Thereafter	904
Total minimum payments(1)	$	1,959

⁽¹⁾ 

Excludes purchase agreements accounted for as finance leases.

Schedule Of Environmental Remediation Costs Capitalized In Period

The following table shows our capital expenditures (including construction work in progress) in order to comply with environmental laws and regulations:

CAPITAL EXPENDITURES FOR ENVIRONMENTAL ISSUES
(Dollars in millions)
	Years ended December 31,
	2019		2018		2017
Sempra Energy Consolidated	$	80	$	100	$	91
SDG&E	39		38		46
SoCalGas	41		62		45

Schedule Of Environmental Remediation Costs, Status Of Remediation Sites

The table below shows the status at December 31, 2019 of the California Utilities’ manufactured-gas sites and the third-party waste-disposal sites for which we have been identified as a PRP:

STATUS OF ENVIRONMENTAL SITES
	# Sites complete(1)	# Sites in process
SDG&E:
Manufactured-gas sites	3	—
Third-party waste-disposal sites	2	1
SoCalGas:
Manufactured-gas sites	39	3
Third-party waste-disposal sites	5	2

⁽¹⁾ 

There may be ongoing compliance obligations for completed sites, such as regular inspections, adherence to land use covenants and water quality monitoring.

Schedule of Environmental Loss Contingencies by Site

The following table shows our accrued liabilities for environmental matters at December 31, 2019. Of the total liability, $15 million is recorded on a discounted basis, with discount rates ranging from 1.5% to 3%.

ACCRUED LIABILITIES FOR ENVIRONMENTAL MATTERS
(Dollars in millions)
	Manufactured- gas sites		Waste disposal sites (PRP)(1)		Other hazardous waste sites		Total(2)
SDG&E(3)	$	—	$	2	$	3	$	5
SoCalGas(4)	43		2		—		45
Other	—		1		—		1
Total Sempra Energy	$	43	$	5	$	3	$	51

⁽¹⁾  Sites for which we have been identified as a PRP.

⁽²⁾  Includes $7 million, $1 million and $6 million classified as current liabilities, and $44 million, $4 million and $39 million classified as noncurrent liabilities on Sempra Energy’s, SDG&E’s and SoCalGas’ Consolidated Balance Sheets, respectively.

⁽³⁾  Does not include SDG&E’s liability for SONGS marine environment mitigation.

⁽⁴⁾ 

Does not include SoCalGas’ liability for environmental matters for the Leak at the Aliso Canyon natural gas storage facility. We discuss matters related to the Leak above in “Legal Proceedings – SoCalGas – Aliso Canyon Natural Gas Storage Facility Gas Leak.”