COMMITMENTS AND CONTINGENCIES (Tables)
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12 Months Ended |
Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] |
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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 | % |
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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.
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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 | |
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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.
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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.
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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 | |
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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.
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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.
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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 | |
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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 | |
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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 | |
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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.
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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 | |
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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.
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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.”
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