FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2024


RECURRING FAIR VALUE MEASURES
(Dollars in millions)
	Level 1		Level 2		Level 3		Netting(1)		Total
	Fair value at June 30, 2024
Sempra:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	20	$	3	$	—			$	23
Equity securities	318		3		—				321
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	38		23		—				61
Municipal bonds	—		273		—				273
Other securities	—		227		—				227
Total debt securities	38		523		—				561
Total nuclear decommissioning trusts(2)	376		529		—				905
Short-term investments held in Rabbi Trust	47		—		—				47
Support Agreement, net of related guarantee fees	—		—		23				23
Interest rate instruments	—		284		—		$	—	284
Foreign exchange instruments	—		3		—		—		3
Commodity contracts not subject to rate recovery	—		131		—		(61)		70
Commodity contracts subject to rate recovery	12		2		6		9		29
Total	$	435	$	949	$	29	$	(52)	$	1,361
Liabilities:

Commodity contracts not subject to rate recovery	$	—	$	135	$	—	$	(128)	$	7
Commodity contracts subject to rate recovery	21		45		—		(24)		42
Total	$	21	$	180	$	—	$	(152)	$	49

	Fair value at December 31, 2023
Sempra:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	19	$	2	$	—			$	21
Equity securities	308		4		—				312
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	34		17		—				51
Municipal bonds	—		275		—				275
Other securities	—		220		—				220
Total debt securities	34		512		—				546
Total nuclear decommissioning trusts(2)	361		518		—				879
Short-term investments held in Rabbi Trust	67		—		—				67
Support Agreement, net of related guarantee fees	—		—		23				23
Interest rate instruments	—		87		—		$	—	87
Commodity contracts not subject to rate recovery	—		5		—		74		79
Commodity contracts subject to rate recovery	—		1		10		22		33
Total	$	428	$	611	$	33	$	96	$	1,168
Liabilities:
Foreign exchange instruments	$	—	$	9	$	—	$	—	$	9
Commodity contracts not subject to rate recovery	—		6		—		—		6
Commodity contracts subject to rate recovery	20		210		—		(19)		211
Total	$	20	$	225	$	—	$	(19)	$	226

(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.

(2) Excludes receivables (payables), net.


RECURRING FAIR VALUE MEASURES
(Dollars in millions)
	Level 1		Level 2		Level 3		Netting(1)		Total
	Fair value at June 30, 2024
SDG&E:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	20	$	3	$	—			$	23
Equity securities	318		3		—				321
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	38		23		—				61
Municipal bonds	—		273		—				273
Other securities	—		227		—				227
Total debt securities	38		523		—				561
Total nuclear decommissioning trusts(2)	376		529		—				905
Commodity contracts subject to rate recovery	12		—		6		$	10	28
Total	$	388	$	529	$	6	$	10	$	933
Liabilities:
Commodity contracts subject to rate recovery	$	21	$	6	$	—	$	(22)	$	5


	Fair value at December 31, 2023
SDG&E:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	19	$	2	$	—			$	21
Equity securities	308		4		—				312
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	34		17		—				51
Municipal bonds	—		275		—				275
Other securities	—		220		—				220
Total debt securities	34		512		—				546
Total nuclear decommissioning trusts(2)	361		518		—				879
Commodity contracts subject to rate recovery	—		—		10		$	21	31
Total	$	361	$	518	$	10	$	21	$	910
Liabilities:
Commodity contracts subject to rate recovery	$	20	$	—	$	—	$	(19)	$	1

(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.

(2) Excludes receivables (payables), net.


RECURRING FAIR VALUE MEASURES
(Dollars in millions)
	Level 1		Level 2		Level 3		Netting(1)		Total
	Fair value at June 30, 2024
SoCalGas:
Assets:
Commodity contracts subject to rate recovery	$	—	$	2	$	—	$	(1)	$	1
Liabilities:
Commodity contracts subject to rate recovery	$	—	$	39	$	—	$	(2)	$	37

	Fair value at December 31, 2023
SoCalGas:
Assets:
Commodity contracts subject to rate recovery	$	—	$	1	$	—	$	1	$	2
Liabilities:
Commodity contracts subject to rate recovery	$	—	$	210	$	—	$	—	$	210

(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.

Recurring Fair Value Measures Level 3 Rollforward

The table below sets forth reconciliations of changes in the fair value of CRRs classified as Level 3 in the fair value hierarchy for Sempra and SDG&E.


LEVEL 3 RECONCILIATIONS(1)
(Dollars in millions)
	Three months ended June 30,
	2024		2023
Balance at April 1	$	9	$	30
Realized and unrealized gains (losses), net	(2)		(4)
Allocated transmission instruments	—		(2)
Settlements	(1)		(4)
Balance at June 30	$	6	$	20
Change in unrealized losses relating to instruments still held at June 30	$	(1)	$	(7)

	Six months ended June 30,
	2024		2023
Balance at January 1	$	10	$	35
Realized and unrealized gains (losses), net	(3)		(8)
Allocated transmission instruments	—		(2)
Settlements	(1)		(5)
Balance at June 30	$	6	$	20
Change in unrealized losses relating to instruments still held at June 30	$	(2)	$	(9)

(1) Excludes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral.

The table below sets forth reconciliations of changes in the fair value of Sempra’s Support Agreement for the benefit of CFIN classified as Level 3 in the fair value hierarchy.


LEVEL 3 RECONCILIATIONS
(Dollars in millions)
	Three months ended June 30,
	2024		2023
Balance at April 1	$	23	$	24
Realized and unrealized gains (losses), net(1)	2		1
Settlements	(2)		(2)
Balance at June 30(2)	$	23	$	23
Change in unrealized gains relating to instruments still held at June 30	$	2	$	1

	Six months ended June 30,
	2024		2023
Balance at January 1	$	23	$	17
Realized and unrealized gains (losses), net(1)	4		10
Settlements	(4)		(4)
Balance at June 30(2)	$	23	$	23
Change in unrealized gains relating to instruments still held at June 30	$	3	$	9

(1) Net gains are included in Interest Income and net losses are included in Interest Expense on Sempra’s Condensed Consolidated Statements of Operations.

(2) Includes $7 in Other Current Assets and $16 in Other Long-term Assets at June 30, 2024 on Sempra’s Condensed Consolidated Balance Sheet.

Schedule of Fair Value Inputs

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:


CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS

Settlement year	Price per MWh					Median price per MWh
2024	$	(3.69)	to	$	9.55	$	(0.44)
2023	(3.09)		to	10.71		(0.56)

Fair Value of Financial Instruments

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.


FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
	Carrying amount		Fair value
			Level 1		Level 2		Level 3		Total
	June 30, 2024
Sempra:

Long-term note receivable(1)	$	342	$	—	$	—	$	326	$	326
Long-term amounts due to unconsolidated affiliates	302		—		271		—		271
Total long-term debt(2)	29,704		—		26,850		—		26,850
SDG&E:
Total long-term debt(3)	$	8,950	$	—	$	7,747	$	—	$	7,747
SoCalGas:
Total long-term debt(4)	$	7,259	$	—	$	6,715	$	—	$	6,715

	December 31, 2023
Sempra:
Long-term note receivable(1)	$	334	$	—	$	—	$	318	$	318
Long-term amounts due to unconsolidated affiliates	312		—		283		—		283
Total long-term debt(2)	27,716		—		25,617		—		25,617
SDG&E:
Total long-term debt(3)	$	8,750	$	—	$	7,856	$	—	$	7,856
SoCalGas:
Total long-term debt(4)	$	6,759	$	—	$	6,442	$	—	$	6,442

(1) Before allowances for credit losses of $6 at both June 30, 2024 and December 31, 2023. Excludes unamortized transaction costs of $4 at both June 30, 2024 and December 31, 2023.

(2) After the effects of interest rate swaps. Before reductions of unamortized discount and debt issuance costs of $346 and $322 at June 30, 2024 and December 31, 2023, respectively, and excluding finance lease obligations of $1,319 and $1,340 at June 30, 2024 and December 31, 2023, respectively.

(3) Before reductions of unamortized discount and debt issuance costs of $98 and $89 at June 30, 2024 and December 31, 2023, respectively, and excluding finance lease obligations of $1,213 and $1,233 at June 30, 2024 and December 31, 2023, respectively.

(4) Before reductions of unamortized discount and debt issuance costs of $61 and $55 at June 30, 2024 and December 31, 2023, respectively, and excluding finance lease obligations of $106 and $107 at June 30, 2024 and December 31, 2023, respectively.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details