FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Sep. 30, 2012

Fair Value Measurements (Tables) [Abstract]

Fair Value of Financial Instruments Table

FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
		September 30, 2012
		Carrying		Fair Value
		Amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Investments in affordable housing partnerships(1)		$	16	$	―	$	―	$	46	$	46
Total long-term debt(2)			11,727		―		12,556		755		13,311
Preferred stock of subsidiaries			99		―		108		―		108
SDG&E:
Total long-term debt(3)		$	4,137	$	―	$	4,308	$	347	$	4,655
Contingently redeemable preferred stock			79		―		86		―		86
SoCalGas:
Total long-term debt(4)		$	1,662	$	―	$	1,872	$	―	$	1,872
Preferred stock			22		―		24		―		24

		December 31, 2011
		Carrying		Fair Value
		Amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Investments in affordable housing partnerships(1)		$	21	$	―	$	―	$	48	$	48
Total long-term debt(2)			9,826		―		10,447		600		11,047
Preferred stock of subsidiaries			99		―		106		―		106
SDG&E:
Total long-term debt(3)		$	3,895	$	―	$	3,933	$	355	$	4,288
Contingently redeemable preferred stock			79		―		86		―		86
SoCalGas:
Total long-term debt(4)		$	1,313	$	―	$	1,506	$	―	$	1,506
Preferred stock			22		―		23		―		23
(1)	We discuss our investments in affordable housing partnerships in Note 4 of the Notes to Consolidated Financial Statements in the Updated Annual Report.
(2)	Before reductions for unamortized discount (net of premium) of $17 million at September 30, 2012 and $16 million at December 31, 2011, and excluding capital leases of $192 million at September 30, 2012 and $204 million at December 31, 2011, and commercial paper classified as long-term debt of $400 million at December 31, 2011. We discuss our long-term debt in Note 6 above and in Note 5 of the Notes to Consolidated Financial Statements in the Updated Annual Report.
(3)	Before reductions for unamortized discount of $12 million at September 30, 2012 and $11 million at December 31, 2011, and excluding capital leases of $187 million at September 30, 2012 and $193 million at December 31, 2011.
(4)	Before reductions for unamortized discount of $4 million at September 30, 2012 and $3 million at December 31, 2011, and excluding capital leases of $5 million at September 30, 2012 and $11 million at December 31, 2011.

Nuclear Decommissioning Trusts Table

NUCLEAR DECOMMISSIONING TRUSTS
(Dollars in millions)
					Gross		Gross		Estimated
					Unrealized		Unrealized		Fair
			Cost		Gains		Losses		Value
As of September 30, 2012:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies(1)		$	134	$	12	$	―	$	146
Municipal bonds(2)			60		6		―		66
Other securities(3)			114		9		―		123
Total debt securities			308		27		―		335
Equity securities			249		284		(4)		529
Cash and cash equivalents			28		―		―		28
Total		$	585	$	311	$	(4)	$	892
As of December 31, 2011:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies		$	157	$	13	$	―	$	170
Municipal bonds			72		5		―		77
Other securities			76		3		(1)		78
Total debt securities			305		21		(1)		325
Equity securities			246		227		(5)		468
Cash and cash equivalents			11		―		―		11
Total		$	562	$	248	$	(6)	$	804
(1)	Maturity dates are 2013-2042
(2)	Maturity dates are 2012-2057
(3)	Maturity dates are 2013-2111

Sales of Securities Table

SALES OF SECURITIES
(Dollars in millions)
	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Proceeds from sales	$	204	$	294	$	524	$	384
Gross realized gains		3		27		12		29
Gross realized losses		(1)		(8)		(6)		(10)

Fair Value of Cash Collateral Receivables Not Offset on the Condensed Consolidated Balance Sheets Table

	September 30,		December 31,
(Dollars in millions)	2012		2011
Sempra Energy Consolidated	$	46	$	20
SDG&E		20		10
SoCalGas		4		2

Recurring Fair Value Measures Table

RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		At fair value as of September 30, 2012
									Collateral
			Level 1		Level 2		Level 3		netted		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	529	$	―	$	―	$	―	$	529
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			72		74		―		―		146
Municipal bonds			―		66		―		―		66
Other securities			―		123		―		―		123
Total debt securities			72		263		―		―		335
Total nuclear decommissioning trusts(1)			601		263		―		―		864
Interest rate instruments			―		73		―		―		73
Commodity contracts subject to rate recovery			21		―		23		―		44
Commodity contracts not subject to rate recovery			19		19		―		―		38
Investments			1		―		―		―		1
Total		$	642	$	355	$	23	$	―	$	1,020
Liabilities:
Interest rate and foreign exchange instruments		$	―	$	136	$	―	$	―	$	136
Commodity contracts subject to rate recovery			32		8		―		(32)		8
Commodity contracts not subject to rate recovery			9		30		―		(13)		26
Total		$	41	$	174	$	―	$	(45)	$	170

		At fair value as of December 31, 2011
									Collateral
			Level 1		Level 2		Level 3		netted		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	468	$	―	$	―	$	―	$	468
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			92		78		―		―		170
Municipal bonds			―		77		―		―		77
Other securities			―		78		―		―		78
Total debt securities			92		233		―		―		325
Total nuclear decommissioning trusts(1)			560		233		―		―		793
Interest rate instruments			―		66		―		―		66
Commodity contracts subject to rate recovery			10		1		23		―		34
Commodity contracts not subject to rate recovery			15		35		―		(2)		48
Investments			5		―		―		―		5
Total		$	590	$	335	$	23	$	(2)	$	946
Liabilities:
Interest rate instruments		$	1	$	124	$	―	$	―	$	125
Commodity contracts subject to rate recovery			61		13		―		(61)		13
Commodity contracts not subject to rate recovery			1		52		―		(4)		49
Total		$	63	$	189	$	―	$	(65)	$	187
(1)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES – SDG&E
(Dollars in millions)
		At fair value as of September 30, 2012
									Collateral
			Level 1		Level 2		Level 3		netted		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	529	$	―	$	―	$	―	$	529
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			72		74		―		―		146
Municipal bonds			―		66		―		―		66
Other securities			―		123		―		―		123
Total debt securities			72		263		―		―		335
Total nuclear decommissioning trusts(1)			601		263		―		―		864
Commodity contracts subject to rate recovery			19		―		23		―		42
Commodity contracts not subject to rate recovery			2		―		―		―		2
Total		$	622	$	263	$	23	$	―	$	908

Liabilities:
Interest rate instruments		$	―	$	85	$	―	$	―	$	85
Commodity contracts subject to rate recovery			32		7		―		(32)		7
Total		$	32	$	92	$	―	$	(32)	$	92

		At fair value as of December 31, 2011
									Collateral
			Level 1		Level 2		Level 3		netted		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	468	$	―	$	―	$	―	$	468
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			92		78		―		―		170
Municipal bonds			―		77		―		―		77
Other securities			―		78		―		―		78
Total debt securities			92		233		―		―		325
Total nuclear decommissioning trusts(1)			560		233		―		―		793
Commodity contracts subject to rate recovery			9		―		23		―		32
Commodity contracts not subject to rate recovery			1		―		―		―		1
Total		$	570	$	233	$	23	$	―	$	826

Liabilities:
Interest rate instruments		$	―	$	81	$	―	$	―	$	81
Commodity contracts subject to rate recovery			61		12		―		(61)		12
Total		$	61	$	93	$	―	$	(61)	$	93
(1)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES – SOCALGAS
(Dollars in millions)
	At fair value as of September 30, 2012
								Collateral
		Level 1		Level 2		Level 3		netted		Total
Assets:
Commodity contracts subject to rate recovery	$	2	$	―	$	―	$	―	$	2
Commodity contracts not subject to rate recovery		2		―		―		―		2
Total	$	4	$	―	$	―	$	―	$	4

Liabilities:
Commodity contracts subject to rate recovery	$	―	$	1	$	―	$	―	$	1
Total	$	―	$	1	$	―	$	―	$	1

	At fair value as of December 31, 2011
								Collateral
		Level 1		Level 2		Level 3		netted		Total
Assets:
Commodity contracts subject to rate recovery	$	1	$	1	$	―	$	―	$	2
Commodity contracts not subject to rate recovery		2		―		―		―		2
Total	$	3	$	1	$	―	$	―	$	4

Liabilities:
Commodity contracts subject to rate recovery	$	―	$	1	$	―	$	―	$	1
Total	$	―	$	1	$	―	$	―	$	1

Recurring Fair Value Measures Level 3 Rollforward Table

	Three months ended September 30,
(Dollars in millions)	2012		2011
Balance as of July 1	$	13	$	3
Realized and unrealized gains		16		5
Allocated transmission instruments		17		―
Settlements		(23)		(5)
Balance as of September 30	$	23	$	3
Change in unrealized gains or losses relating to
instruments still held at September 30	$	―	$	―

	Nine months ended September 30,
(Dollars in millions)	2012		2011
Balance as of January 1	$	23	$	2
Realized and unrealized gains		23		17
Allocated transmission instruments		18		2
Settlements		(41)		(18)
Balance as of September 30	$	23	$	3
Change in unrealized gains or losses relating to
instruments still held at September 30	$	―	$	―

Non-Recurring Fair Value Measures Table

NON-RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		Estimated		Fair
		Fair		Value	% of Fair Value		Range of
		Value	Valuation Technique	Hierarchy	Measurement	Inputs Used to Develop Measurement	Inputs
Investment in
Rockies Express		$ 369	Market approach	Level 2	67%	Equity sale offer price	100%


			Probability weighted	Level 3	33%	Combined transportation rate assumption(1)	6% - 78%
			discounted cash flow			Counterparty credit risk on existing contracts	Low
						Operation and maintenance escalation rate	0% - 1%
						Forecasted interest rate on debt to be refinanced	5% - 10%
						Discount rate	8% - 10%
Investment in
RBS Sempra
Commodities		$ 126	Discounted cash flow	Level 3	100%	Future cash distributions	90% - 110%
(1)	Transportation rate beyond existing contract terms as a percentage of current mean REX rates.