DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2012


		December 31,
Segment and Commodity		2012	2011
California Utilities:
SDG&E:
	Natural gas	25 million MMBtu	35 million MMBtu	(1)
	Congestion revenue rights	30 million MWh	19 million MWh	(2)

Energy-Related Businesses:
Sempra Natural Gas:
Electric power		1 million MWh	5 million MWh
Natural gas		36 million MMBtu	20 million MMBtu
Sempra Mexico - natural gas		1 million MMBtu	1 million MMBtu
(1)	Million British thermal units
(2)	Megawatt hours

		December 31, 2012			December 31, 2011
(Dollars in millions)		Notional Debt		Maturities	Notional Debt		Maturities
Sempra Energy Consolidated(1)		$	6-369	2013-2028	$	15-305	2013-2019
SDG&E(1)			285-345	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 CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
		December 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	$	(19)	$	(64)
	Commodity contracts not subject to rate recovery		1		―		―		―
	Total	$	8	$	12	$	(19)	$	(64)
SDG&E:
	Interest rate instruments(3)	$	―	$	―	$	(17)	$	(64)

Derivatives not designated as hedging instruments
Sempra Energy Consolidated:
	Interest rate instruments	$	8	$	40	$	(8)	$	(35)
	Commodity contracts not subject to rate recovery		117		15		(116)		(27)
	Associated offsetting commodity contracts		(102)		(12)		102		12
	Commodity contracts subject to rate recovery		30		35		(35)		(1)
	Associated offsetting commodity contracts		(4)		―		4		―
	Total	$	49	$	78	$	(53)	$	(51)
SDG&E:
	Commodity contracts subject to rate recovery	$	28	$	35	$	(33)	$	(1)
	Associated offsetting commodity contracts		(3)		―		3		―
	Total	$	25	$	35	$	(30)	$	(1)
SoCalGas:
	Commodity contracts subject to rate recovery	$	2	$	―	$	(2)	$	―
	Associated offsetting commodity contracts		(1)		―		1		―
	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 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 CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
			Gain (loss) on derivatives recognized in earnings
			Years ended December 31,
		Location	2012		2011		2010
Sempra Energy Consolidated:
	Interest rate instruments	Interest Expense	$	6	$	9	$	10
	Interest rate instruments	Other Income, Net		3		13		(11)
	Total(1)		$	9	$	22	$	(1)
SoCalGas:
	Interest rate instrument	Interest Expense	$	―	$	1	$	6
	Interest rate instrument	Other Income, Net		―		(3)		(4)
	Total(1)		$	―	$	(2)	$	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 CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
		Pretax gain (loss) recognized in OCI							Gain (loss) reclassified from AOCI into earnings
		(effective portion)							(effective portion)
		Years ended December 31,							Years ended December 31,
			2012		2011		2010	Location		2012		2011		2010
Sempra Energy Consolidated:
	Interest rate instruments(1)	$	(22)	$	(42)	$	―	Interest Expense	$	(9)	$	(8)	$	(12)
	Interest rate instruments		―		―		―	Other Income, Net(2)		―		―		10
								Equity Earnings (Losses),
	Interest rate instruments		(10)		(32)		2	Before Income Tax: Other		(6)		(5)		(1)
	Commodity contracts not subject							Cost of Natural Gas, Electric
	to rate recovery		(1)		―		―	Fuel and Purchased Power		―		―		―
	Commodity contracts not subject							Equity Earnings (Losses),
	to rate recovery							Before Income Tax: RBS
			―		―		1	Sempra Commodities LLP		―		―		21
	Total	$	(33)	$	(74)	$	3		$	(15)	$	(13)	$	18
SDG&E:
	Interest rate instruments(1)	$	(16)	$	(40)	$	―	Interest Expense	$	(5)	$	(5)	$	(7)
SoCalGas:
	Interest rate instrument	$	―	$	―	$	―	Interest Expense	$	(2)	$	(3)	$	(5)
(1)	Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. There was a negligible amount of ineffectiveness related to these swaps.
(2)	Gains reclassified into earnings due to changes in cash requirements and associated impacts on forecasted interest payments, primarily related to proceeds received from RBS Sempra Commodities. See Note 4.

UNDESIGNATED DERIVATIVE IMPACT ON THE CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
			Gain (loss) on derivatives recognized in earnings
			Years ended December 31,
		Location	2012		2011		2010
Sempra Energy Consolidated:
	Interest rate and foreign
	exchange instruments(1)	Other Income, Net	$	10	$	(14)	$	(34)
	Commodity contracts not subject	Revenues: Energy-Related
	to rate recovery	Businesses		7		30		47
	Commodity contracts not subject	Cost of Natural Gas, Electric
	to rate recovery	Fuel and Purchased Power		―		1		(29)
	Commodity contracts not subject
	to rate recovery	Other Operation and Maintenance		1		1		2
	Commodity contracts subject	Cost of Electric Fuel
	to rate recovery	and Purchased Power		69		(14)		(102)
	Commodity contracts subject
	to rate recovery	Cost of Natural Gas		(2)		(2)		(9)
	Total		$	85	$	2	$	(125)
SDG&E:
	Interest rate instruments(1)	Other Income, Net	$	―	$	(1)	$	(34)
	Commodity contracts not subject
	to rate recovery	Operation and Maintenance		―		―		1
	Commodity contracts subject	Cost of Electric Fuel
	to rate recovery	and Purchased Power		69		(14)		(102)
	Total		$	69	$	(15)	$	(135)
SoCalGas:
	Commodity contracts not subject
	to rate recovery	Operation and Maintenance	$	1	$	1	$	1
	Commodity contracts subject
	to rate recovery	Cost of Natural Gas		(2)		(2)		(5)
	Total		$	(1)	$	(1)	$	(4)
(1)	Amounts for 2010 and 2011 are related to Otay Mesa VIE. Sempra Energy Consolidated also includes additional instruments.