COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2020

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)
	Sempra Energy Consolidated						SDG&E						SoCalGas
	December 31,
	2020			2019			2020			2019			2020			2019
Right-of-use assets:
Operating leases:
Right-of-use assets	$	543		$	591		$	102		$	130		$	74		$	94
Finance leases:
Property, plant and equipment	1,429			1,353			1,356			1,326			73			27
Accumulated depreciation	(99)			(64)			(80)			(57)			(19)			(7)
Property, plant and equipment, net	1,330			1,289			1,276			1,269			54			20
Total right-of-use assets	$	1,873		$	1,880		$	1,378		$	1,399		$	128		$	114
Lease liabilities:
Operating leases:
Other current liabilities	$	52		$	52		$	27		$	27		$	18		$	18
Deferred credits and other	407			445			73			102			56			75
	459			497			100			129			74			93
Finance leases:
Current portion of long-term debt and finance leases	36			26			26			20			10			6
Long-term debt and finance leases	1,294			1,263			1,250			1,250			44			13
	1,330			1,289			1,276			1,270			54			19
Total lease liabilities	$	1,789		$	1,786		$	1,376		$	1,399		$	128		$	112
Weighted-average remaining lease term (in years):
Operating leases	13			13			6			6			5			6
Finance leases	18			19			19			20			7			6
Weighted-average discount rate:
Operating leases	5.81		%	6.01		%	3.62		%	3.55		%	2.03		%	3.73		%
Finance leases	14.45		%	14.76		%	14.65		%	14.83		%	2.83		%	3.23		%

Lease, Cost

The components of lease costs were as follows:

LESSEE INFORMATION ON THE CONSOLIDATED STATEMENTS OF OPERATIONS(1)
(Dollars in millions)
	Sempra Energy Consolidated				SDG&E				SoCalGas
	Years ended December 31,
	2020		2019		2020		2019		2020		2019
Operating lease costs	$	92	$	96	$	31	$	33	$	24	$	27
Finance lease costs:
Amortization of ROU assets(2)	35		24		23		18		12		6
Interest on lease liabilities	188		173		186		173		2		—
Total finance lease costs	223		197		209		191		14		6
Short-term lease costs(3)	7		6		3		2		—		—
Variable lease costs(3)	477		482		467		471		10		10
Total lease costs	$	799	$	781	$	710	$	697	$	48	$	43

(1)    Includes costs capitalized in PP&E.

(2)    Included in O&M, except for $18 million in 2020 and $15 million in 2019, which is included in Depreciation and Amortization Expense at Sempra Energy Consolidated and SDG&E.

(3)    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)
	Sempra Energy Consolidated				SDG&E				SoCalGas
	Years ended December 31
	2020		2019		2020		2019		2020		2019
Operating activities:
Cash paid for operating leases	$	79	$	101	$	31	$	33	$	24	$	27
Cash paid for finance leases	173		173		171		173		2		—
Financing activities:
Cash paid for finance leases	35		24		23		18		12		6
Increase (decrease) in operating lease obligations for right-of-use assets	20		585		(1)		158		1		118
Increase in finance lease obligations for investment in PP&E	77		38		30		16		47		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, 2020
	Sempra Energy Consolidated				SDG&E				SoCalGas
	Operating leases		Finance leases(1)		Operating leases		Finance leases(1)		Operating leases		Finance leases
2021	$	73	$	206	$	30	$	194	$	19	$	12
2022	64		203		22		194		17		9
2023	55		203		17		194		13		9
2024	51		198		15		189		11		9
2025	40		193		5		185		9		8
Thereafter	415		2,465		22		2,453		8		12
Total undiscounted lease payments	698		3,468		111		3,409		77		59
Less: imputed interest	(239)		(2,138)		(11)		(2,133)		(3)		(5)
Total lease liabilities	459		1,330		100		1,276		74		54
Less: current lease liabilities	(52)		(36)		(27)		(26)		(18)		(10)
Long-term lease liabilities	$	407	$	1,294	$	73	$	1,250	$	56	$	44

(1)    Substantially all amounts are related to purchased-power contracts.

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, 2020
	Sempra Energy Consolidated				SDG&E				SoCalGas
	Operating leases		Finance leases(1)		Operating leases		Finance leases(1)		Operating leases		Finance leases
2021	$	73	$	206	$	30	$	194	$	19	$	12
2022	64		203		22		194		17		9
2023	55		203		17		194		13		9
2024	51		198		15		189		11		9
2025	40		193		5		185		9		8
Thereafter	415		2,465		22		2,453		8		12
Total undiscounted lease payments	698		3,468		111		3,409		77		59
Less: imputed interest	(239)		(2,138)		(11)		(2,133)		(3)		(5)
Total lease liabilities	459		1,330		100		1,276		74		54
Less: current lease liabilities	(52)		(36)		(27)		(26)		(18)		(10)
Long-term lease liabilities	$	407	$	1,294	$	73	$	1,250	$	56	$	44

(1)    Substantially all amounts are related to purchased-power contracts.

Schedule of Rent Expense

Rent expense for operating leases was as follows:

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

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,
	2020		2019
Assets subject to operating leases:
Property, plant and equipment(1)	$	1,092	$	1,038
Accumulated depreciation	(228)		(179)
Property, plant and equipment, net	$	864	$	859
			December 31, 2020
Maturity analysis of operating lease payments:
2021			$	207
2022			202
2023			202
2024			202
2025			202
Thereafter			2,344
Total undiscounted cash flows			$	3,359

(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,
	2020		2019		2018
Fixed lease payments	$	195	$	200	$	194
Variable lease payments	1		6		72
Total revenues from operating leases(1)	$	196	$	206	$	266
Depreciation expense	$	39	$	38	$	72

(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, 2020, 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)
2021	$	216	$	61	$	277
2022	203		13		216
2023	189		12		201
2024	166		12		178
2025	131		6		137
Thereafter	1,014		—		1,014
Total minimum payments	$	1,919	$	104	$	2,023

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

FUTURE MINIMUM PAYMENTS – SOCALGAS
(Dollars in millions)
	Transportation		Natural gas		Total
2021	$	134	$	41	$	175
2022	126		—		126
2023	123		—		123
2024	103		—		103
2025	68		—		68
Thereafter	359		—		359
Total minimum payments	$	913	$	41	$	954

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,
	2020		2019		2018
Sempra Energy Consolidated	$	989	$	1,326	$	1,345
SoCalGas	935		1,181		1,169

Schedule Of L N G Commitment Amounts

At December 31, 2020, 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)
2021	$	320
2022	422
2023	389
2024	386
2025	390
Thereafter	1,452
Total	$	3,359

Schedule Of Estimated Future Payments Under Purchased Power Contracts

At December 31, 2020, 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)
2021	$	222
2022	208
2023	173
2024	145
2025	88
Thereafter	794
Total minimum payments(1)	$	1,630

(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,
	2020		2019		2018
Sempra Energy Consolidated	$	76	$	80	$	100
SDG&E	39		39		38
SoCalGas	37		41		62

Schedule Of Environmental Remediation Costs, Status Of Remediation Sites

The table below shows the status at December 31, 2020 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, 2020. Of the total liability, $9 million at SoCalGas is recorded on a discounted basis, with a discount rate of 1.5%.

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)	$	—	$	6	$	13	$	19
SoCalGas(4)	36		3		1		40
Other	—		1		—		1
Total Sempra Energy	$	36	$	10	$	14	$	60

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

(2)    Includes $11 million, $1 million and $10 million classified as current liabilities, and $49 million, $18 million and $30 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. We discuss matters related to the Leak above in “Legal Proceedings – SoCalGas – Aliso Canyon Natural Gas Storage Facility Gas Leak.”