DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2012

Derivative Financial Instruments (Tables) [Abstract]


Segment and Commodity		March 31, 2012	December 31, 2011
California Utilities:
SDG&E:
Natural gas		32 million MMBtu	35 million MMBtu	(1)
Congestion revenue rights		17 million MWh	19 million MWh	(2)

Energy-Related Businesses:
Sempra Natural Gas:
Electric power		4 million MWh	5 million MWh
Natural gas		15 million MMBtu	20 million MMBtu
Sempra Mexico - natural gas		1 million MMBtu	1 million MMBtu
(1)	Million British thermal units
(2)	Megawatt hours

Notional Amounts of Interest Rate Derivatives Table

		March 31, 2012			December 31, 2011
(Dollars in millions)		Notional Debt		Maturities	Notional Debt		Maturities
Sempra Energy Consolidated(1)		$	15-305	2013-2019	$	15-305	2013-2019
SDG&E(1)			285-352	2019		285-355	2019
(1)	Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE.

Derivative Instruments on the Condensed Consolidated Balance Sheets Table

DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
		March 31, 2012
									Deferred
									credits
			Current				Current		and other
			assets:				liabilities:		liabilities:
			Fixed-price		Investments		Fixed-price		Fixed-price
			contracts		and other		contracts		contracts
			and other		assets:		and other		and other
Derivatives designated as hedging instruments			derivatives(1)		Sundry		derivatives(2)		derivatives
Sempra Energy Consolidated:
Interest rate instruments(3)		$	7	$	12	$	(17)	$	(61)
SDG&E:
Interest rate instruments(3)		$	―	$	―	$	(17)	$	(61)

Derivatives not designated as hedging instruments
Sempra Energy Consolidated:
Interest rate instruments		$	8	$	37	$	(8)	$	(31)
Commodity contracts not subject to rate recovery			234		23		(232)		(40)
Associated offsetting commodity contracts			(208)		(19)		208		19
Commodity contracts subject to rate recovery			21		7		(69)		(23)
Associated offsetting commodity contracts			(6)		(1)		6		1
Total		$	49	$	47	$	(95)	$	(74)
SDG&E:
Commodity contracts subject to rate recovery		$	18	$	7	$	(66)	$	(23)
Associated offsetting commodity contracts			(3)		(1)		3		1
Total		$	15	$	6	$	(63)	$	(22)
SoCalGas:
Commodity contracts not subject to rate recovery		$	1	$	―	$	―	$	―
Commodity contracts subject to rate recovery			2		―		(3)		―
Associated offsetting commodity contracts			(2)		―		2		―
Total		$	1	$	―	$	(1)	$	―
(1)	Included in Current Assets: Other for SoCalGas.
(2)	Included in Current Liabilities: Other for SoCalGas.
(3)	Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE.

DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
		December 31, 2011
									Deferred
									credits
			Current				Current		and other
			assets:				liabilities:		liabilities:
			Fixed-price		Investments		Fixed-price		Fixed-price
			contracts		and other		contracts		contracts
			and other		assets:		and other		and other
Derivatives designated as hedging instruments			derivatives(1)		Sundry		derivatives(2)		derivatives
Sempra Energy Consolidated:
Interest rate instruments(3)		$	5	$	11	$	(17)	$	(65)
SDG&E:
Interest rate instruments(3)		$	―	$	―	$	(16)	$	(65)

Derivatives not designated as hedging instruments
Sempra Energy Consolidated:
Interest rate instruments		$	8	$	41	$	(7)	$	(36)
Commodity contracts not subject to rate recovery			156		72		(148)		(94)
Associated offsetting commodity contracts			(120)		(68)		120		68
Commodity contracts subject to rate recovery			28		8		(62)		(24)
Associated offsetting commodity contracts			(10)		(2)		10		2
Total		$	62	$	51	$	(87)	$	(84)
SDG&E:
Commodity contracts subject to rate recovery		$	22	$	8	$	(55)	$	(24)
Associated offsetting commodity contracts			(5)		(2)		5		2
Total		$	17	$	6	$	(50)	$	(22)
SoCalGas:
Commodity contracts subject to rate recovery		$	6	$	―	$	(7)	$	―
Associated offsetting commodity contracts			(5)		―		5		―
Total		$	1	$	―	$	(2)	$	―
(1)	Included in Current Assets: Other for SoCalGas.
(2)	Included in Current Liabilities: Other for SoCalGas.
(3)	Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE.

Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table

FAIR VALUE HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
			Gain (loss) on derivatives recognized in earnings
			Three months ended March 31,
		Location	2012		2011
Sempra Energy Consolidated:
Interest rate instruments		Interest Expense	$	2	$	3
Interest rate instruments		Other Income, Net		2		(5)
Total(1)			$	4	$	(2)
SoCalGas:
Interest rate instrument		Interest Expense	$	―	$	1
Interest rate instrument		Other Income, Net		―		(3)
Total(1)			$	―	$	(2)
(1)	There has been no hedge ineffectiveness on these swaps. Changes in the fair values of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt.

Cash Flow Hedge Impact on the Condensed Consolidated Statements of Operations Table

CASH FLOW HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
		Pretax gain recognized					Loss reclassified from AOCI
		in OCI (effective portion)					into earnings (effective portion)
		Three months ended March 31,					Three months ended March 31,
		2012		2011		Location	2012		2011
Sempra Energy Consolidated:
Interest rate instruments(1)		$	3	$	―	Interest Expense	$	(1)	$	(2)
						Equity Earnings,
Interest rate instruments			1		1	Net of Income Tax		(2)		(1)
Total		$	4	$	1		$	(3)	$	(3)
SDG&E:
Interest rate instruments(1)		$	―	$	―	Interest Expense	$	―	$	(1)
SoCalGas:
Interest rate instruments		$	―	$	―	Interest Expense	$	(1)	$	(1)
(1)	Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. There has been a negligible amount of ineffectiveness related to these swaps.

Undesignated Derivative Impact on the Condensed Consolidated Statements of Operations Table

UNDESIGNATED DERIVATIVE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
		Gain (loss) on derivatives recognized in earnings
		Three months ended March 31,
	Location	2012		2011
Sempra Energy Consolidated:
Interest rate and foreign exchange
instruments	Other Income, Net	$	11	$	10
Commodity contracts not subject	Revenues: Energy-Related
to rate recovery	Businesses		11		6
Commodity contracts not subject	Cost of Natural Gas, Electric
to rate recovery	Fuel and Purchased Power		―		1
Commodity contracts not subject
to rate recovery	Operation and Maintenance		1		2
Commodity contracts subject	Cost of Electric Fuel
to rate recovery	and Purchased Power		(21)		9
Total		$	2	$	28
SDG&E:
Commodity contracts not subject
to rate recovery	Operation and Maintenance	$	―	$	1
Commodity contracts subject	Cost of Electric Fuel
to rate recovery	and Purchased Power		(21)		9
Total		$	(21)	$	10
SoCalGas:
Commodity contracts not subject
to rate recovery	Operation and Maintenance	$	1	$	1
Total		$	1	$	1