QUARTERLY FINANCIAL DATA

12 Months Ended

Dec. 31, 2012

Notes to Consolidated Financial Statements [Abstract]

Quarterly Financial Data

NOTE 17. QUARTERLY FINANCIAL DATA (UNAUDITED)

SEMPRA ENERGY
(In millions, except for per share amounts)
		Quarters ended
		March 31		June 30		September 30		December 31
2012
Revenues		$	2,383	$	2,089	$	2,507	$	2,668
Expenses and other income		$	2,026	$	2,141	$	2,178	$	2,359
Net income		$	251	$	74	$	290	$	305
Earnings attributable to Sempra Energy		$	236	$	62	$	268	$	293
Basic per-share amounts(1):
Net income		$	1.04	$	0.31	$	1.20	$	1.26
Earnings attributable to Sempra Energy		$	0.98	$	0.26	$	1.11	$	1.21
Weighted average common shares outstanding			240.6		241.1		241.7		242.0
Diluted per-share amounts(1):
Net income		$	1.02	$	0.30	$	1.18	$	1.23
Earnings attributable to Sempra Energy		$	0.97	$	0.25	$	1.09	$	1.18
Weighted average common shares outstanding			243.8		246.3		245.8		247.6
2011
Revenues		$	2,434	$	2,422	$	2,576	$	2,604
Expenses and other income		$	2,091	$	1,836	$	2,188	$	2,198
Net income		$	260	$	494	$	319	$	308
Earnings attributable to Sempra Energy		$	254	$	503	$	289	$	285
Basic per-share amounts(1):
Net income		$	1.08	$	2.06	$	1.33	$	1.28
Earnings attributable to Sempra Energy		$	1.06	$	2.10	$	1.21	$	1.19
Weighted average common shares outstanding			240.1		239.4		239.5		239.8
Diluted per-share amounts(1):
Net income		$	1.08	$	2.05	$	1.32	$	1.27
Earnings attributable to Sempra Energy		$	1.05	$	2.09	$	1.20	$	1.18
Weighted average common shares outstanding			241.9		240.8		241.9		241.8
(1)	Earnings per share are computed independently for each of the quarters and therefore may not sum to the total for the year.

Revenues decreased in each of the first three quarters in 2012 compared to the same quarters in 2011, primarily due to the following:

• decreases at Sempra Natural Gas of $175 million, $240 million and $164 million in the first, second and third quarters of 2012, respectively, compared to 2011 primarily due to decreased power sales resulting from the end of the DWR contract as of September 30, 2011; and
• decreases at SoCalGas inthe first, second and third quarters of 2012 compared to 2011, mainly due to lower natural gas prices, as we discuss below; offset by
• $338 million in the first quarter of 2012 from Chilquinta Energía and Luz del Sur, which we consolidated starting in April 2011; and
• an increase at SDG&E in the third quarter of 2012 compared to the same quarter in 2011 primarily due to higher authorized revenues from electric generation and electric transmission, and an increase in the cost of power purchased to replace power scheduled to be generated and delivered to SDG&E from SONGS.

In the second quarter of 2012, Expenses and Other Income were negatively impacted by $300 million and Net Income and Earnings Attributable to Sempra Energy were negatively impacted by $179 millionfrom an impairment charge to write down our investment in Rockies Express,as we discuss in Note 4. Expenses and Other Income were negatively impacted by $100 million and Net Income andEarnings Attributable to Sempra Energy were negatively impacted by $60millionfrom an impairment to further write down Rockies Expressin the third quarter of 2012.

In the second quarter of 2012, Earnings Attributable to Sempra Energy were impacted by $54 million from an income tax benefit primarily associated with the decision to hold life insurance contracts that are kept in support of certain benefit plans to term.

In the third quarter of 2012 compared to the same quarter in 2011, Net Income and Earnings Attributable to Sempra Energy were favorably impacted by $38 million due to an income tax benefit resulting from a change in the income tax treatment of certain repairs expenditures that are capitalized for financial statement purposes.

In the fourth quarter of 2012 compared to the same quarter in 2011, Net Income andEarnings Attributable to Sempra Energy were favorably impacted by$32 million due to an income tax benefit resulting from a change in the income tax treatment of certain repairs expenditures that are capitalized for financial statement purposes.

In the second quarter of 2011, Expenses and Other Income, Net Income and Earnings Attributable to Sempra Energy were impacted by a $277 million gain (both before and after tax) resulting from the remeasurement of our equity method investments related to Sempra South American Utilities' acquisition of additional interests in Chilquinta Energía and Luz del Sur on April 6, 2011, as we discuss in Note 3. Earnings Attributable to Sempra Energy were impacted by $11 million in the third quarter of 2011 and $24 million in the fourth quarter of 2011 from higher earnings from the acquisition of the additional interests in Chilquinta Energía and Luz del Sur.

We discuss quarterly fluctuations related to SDG&E and SoCalGas below.

SDG&E
(Dollars in millions)
	Quarters ended
	March 31		June 30		September 30		December 31
2012
Operating revenues	$	834	$	780	$	1,092	$	988
Operating expenses		656		611		822		796
Operating income	$	178	$	169	$	270	$	192
Net income	$	112	$	101	$	188	$	114
Earnings attributable to noncontrolling interests		(6)		(5)		(12)		(3)
Earnings		106		96		176		111
Dividends on preferred stock		(1)		(1)		(2)		(1)
Earnings attributable to common shares	$	105	$	95	$	174	$	110
2011
Operating revenues	$	840	$	697	$	868	$	968
Operating expenses		677		584		658		699
Operating income	$	163	$	113	$	210	$	269
Net income	$	94	$	53	$	136	$	172
(Earnings) losses attributable to noncontrolling interests		(4)		19		(21)		(13)
Earnings		90		72		115		159
Dividends on preferred stock		(1)		(1)		(2)		(1)
Earnings attributable to common shares	$	89	$	71	$	113	$	158

Net Income and Earnings forthe first and second quarters of 2012 werefavorably impacted by $12 million and $7 million, respectively, related to higher allowance for equity funds used during constructionfrom the Sunrise Powerlink investment.

In the third quarter of 2012 compared to the same quarter in 2011, Revenues for SDG&Eincreased due to higher authorized revenues from electric generation and electric transmission, and an increase in the cost of power purchased to replace power scheduled to be generated and delivered to SDG&E from SONGS.

In the third quarter of 2012 compared to the same quarter in 2011, Net Income and Earnings for SDG&E were favorably impacted by a $43 million reduction in 2012income tax expense primarily due to a change in income tax treatmentfor certain repairs expenditures that are capitalized for financialstatement purposes.

In the fourth quarter of 2012 compared to the same quarter in 2011, Net Income and Earnings were negatively impacted by $43 million from lower revenues forincremental wildfire premiums.

SOCALGAS
(Dollars in millions)
	Quarters ended
	March 31		June 30		September 30		December 31
2012
Operating revenues	$	880	$	720	$	728	$	954
Operating expenses		761		625		609		867
Operating income	$	119	$	95	$	119	$	87
Net income	$	66	$	54	$	71	$	99
Dividends on preferred stock		―		(1)		―		―
Earnings attributable to common shares	$	66	$	53	$	71	$	99
2011
Operating revenues	$	1,056	$	876	$	844	$	1,040
Operating expenses		937		773		709		911
Operating income	$	119	$	103	$	135	$	129
Net income	$	68	$	60	$	81	$	79
Dividends on preferred stock		―		(1)		―		―
Earnings attributable to common shares	$	68	$	59	$	81	$	79

SoCalGas' Operating Revenues and Operating Expenses forthe first, second and third quarters of 2012 decreased by$163 million, $147 million and $83 million, respectively, compared to the same periods in 2011 due to lower natural gas prices. In the fourth quarter of 2012, Operating Revenues and Operating Expenses decreased by $53 million from lower natural gas volumes.

In the fourth quarter of2012 compared to the same quarter in 2011,SoCalGas' Net Income and Earnings were favorably impacted by $45 million from a lower effective tax rate primarily due to a change in the income tax treatment of certain repairs expenditures that are capitalized for financial statement purposes.