REGULATORY MATTERS (Tables)

6 Months Ended

Jun. 30, 2023


REGULATORY ASSETS (LIABILITIES)
(Dollars in millions)
	June 30, 2023		December 31, 2022

SDG&E:
Fixed-price contracts and other derivatives	$	8	$	(110)
Deferred income taxes recoverable in rates	429		296
Pension and PBOP plan obligations	3		11
Removal obligations	(2,371)		(2,248)
Environmental costs	106		107
Sunrise Powerlink fire mitigation	121		123
Regulatory balancing accounts(1)(2):
Commodity – electric	181		220
Gas transportation	7		60
Safety and reliability	158		107
Public purpose programs	(109)		(69)
Wildfire mitigation plan	519		375
Liability insurance premium	102		99
Other balancing accounts	(342)		(50)
Other regulatory assets, net(2)	153		137
Total SDG&E	(1,035)		(942)
SoCalGas:
Deferred income taxes recoverable in rates	241		161
Pension and PBOP plan obligations	(232)		(170)
Employee benefit costs	24		24
Removal obligations	(591)		(616)
Environmental costs	37		38
Regulatory balancing accounts(1)(2):
Commodity – gas, including transportation	(362)		(257)
Safety and reliability	644		575
Public purpose programs	(152)		(158)
Liability insurance premium	22		23
Other balancing accounts	288		115
Other regulatory assets, net(2)	280		223
Total SoCalGas	199		(42)
Sempra Infrastructure:
Deferred income taxes recoverable in rates	78		78
Other regulatory assets	5		—
Total Sempra Infrastructure	83		78
Total Sempra	$	(753)	$	(906)

(1) At June 30, 2023 and December 31, 2022, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $748 and $562, respectively, and for SoCalGas was $859 and $692, respectively.

(2) Includes regulatory assets earning a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate.

Schedule of Regulatory Liabilities


REGULATORY ASSETS (LIABILITIES)
(Dollars in millions)
	June 30, 2023		December 31, 2022

SDG&E:
Fixed-price contracts and other derivatives	$	8	$	(110)
Deferred income taxes recoverable in rates	429		296
Pension and PBOP plan obligations	3		11
Removal obligations	(2,371)		(2,248)
Environmental costs	106		107
Sunrise Powerlink fire mitigation	121		123
Regulatory balancing accounts(1)(2):
Commodity – electric	181		220
Gas transportation	7		60
Safety and reliability	158		107
Public purpose programs	(109)		(69)
Wildfire mitigation plan	519		375
Liability insurance premium	102		99
Other balancing accounts	(342)		(50)
Other regulatory assets, net(2)	153		137
Total SDG&E	(1,035)		(942)
SoCalGas:
Deferred income taxes recoverable in rates	241		161
Pension and PBOP plan obligations	(232)		(170)
Employee benefit costs	24		24
Removal obligations	(591)		(616)
Environmental costs	37		38
Regulatory balancing accounts(1)(2):
Commodity – gas, including transportation	(362)		(257)
Safety and reliability	644		575
Public purpose programs	(152)		(158)
Liability insurance premium	22		23
Other balancing accounts	288		115
Other regulatory assets, net(2)	280		223
Total SoCalGas	199		(42)
Sempra Infrastructure:
Deferred income taxes recoverable in rates	78		78
Other regulatory assets	5		—
Total Sempra Infrastructure	83		78
Total Sempra	$	(753)	$	(906)

(2) Includes regulatory assets earning a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate.

CPUC Authorized Cost of Capital and Rate Structure


CPUC AUTHORIZED COST OF CAPITAL FOR 2023 – 2025

SDG&E							SoCalGas
Authorized weighting		Return on rate base		Weighted return on rate base(1)			Authorized weighting		Return on rate base		Weighted return on rate base
45.25	%	4.05	%	1.83	%	Long-Term Debt	45.60	%	4.07	%	1.86	%
2.75		6.22		0.17		Preferred Equity	2.40		6.00		0.14
52.00		9.95		5.17		Common Equity	52.00		9.80		5.10
100.00	%			7.18	%		100.00	%			7.10	%

(1) Total weighted return on rate base does not sum due to rounding differences.