OTHER FINANCIAL DATA (Tables)

3 Months Ended

Jun. 30, 2014

Other Financial Data (Tables) [Abstract]

Net Periodic Benefit Cost Table

NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended June 30,
	2014		2013		2014		2013
Service cost	$	26	$	27	$	6	$	6
Interest cost		41		39		12		12
Expected return on assets		(43)		(42)		(16)		(14)
Amortization of:
Prior service cost (credit)		3		1		(1)		(1)
Actuarial loss		5		15		―		3
Settlement		6		―		―		―
Regulatory adjustment		―		(19)		―		2
Total net periodic benefit cost	$	38	$	21	$	1	$	8
	Six months ended June 30,
	2014		2013		2014		2013
Service cost	$	52	$	54	$	12	$	13
Interest cost		82		76		24		23
Expected return on assets		(86)		(82)		(32)		(29)
Amortization of:
Prior service cost (credit)		5		2		(2)		(2)
Actuarial loss		10		30		―		5
Settlements		9		―		―		―
Regulatory adjustment		(24)		(51)		―		4
Total net periodic benefit cost	$	48	$	29	$	2	$	14

NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended June 30,
	2014		2013		2014		2013
Service cost	$	7	$	8	$	1	$	2
Interest cost		11		11		2		2
Expected return on assets		(14)		(13)		(3)		(2)
Amortization of:
Prior service cost		1		1		1		1
Actuarial loss		1		3		―		―
Settlement		2		―		―		―
Regulatory adjustment		6		2		(1)		―
Total net periodic benefit cost	$	14	$	12	$	―	$	3
	Six months ended June 30,
	2014		2013		2014		2013
Service cost	$	15	$	16	$	3	$	4
Interest cost		22		21		4		4
Expected return on assets		(28)		(26)		(6)		(4)
Amortization of:
Prior service cost		1		1		2		2
Actuarial loss		2		7		―		―
Settlement		2		―		―		―
Regulatory adjustment		1		(6)		(3)		―
Total net periodic benefit cost	$	15	$	13	$	―	$	6

NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended June 30,
	2014		2013		2014		2013
Service cost	$	16	$	17	$	4	$	4
Interest cost		26		23		10		9
Expected return on assets		(26)		(24)		(13)		(12)
Amortization of:
Prior service cost (credit)		2		―		(2)		(2)
Actuarial loss		2		8		―		2
Regulatory adjustment		(6)		(21)		1		2
Total net periodic benefit cost	$	14	$	3	$	―	$	3
	Six months ended June 30,
	2014		2013		2014		2013
Service cost	$	32	$	33	$	8	$	8
Interest cost		51		46		19		18
Expected return on assets		(52)		(49)		(26)		(24)
Amortization of:
Prior service cost (credit)		4		1		(4)		(4)
Actuarial loss		4		17		―		4
Regulatory adjustment		(25)		(45)		3		4
Total net periodic benefit cost	$	14	$	3	$	―	$	6

Contributions to Benefit Plans Table

	Sempra Energy
(Dollars in millions)	Consolidated		SDG&E		SoCalGas
Contributions through June 30, 2014:
Pension plans	$	58	$	17	$	16
Other postretirement benefit plans		2		―		―
Total expected contributions in 2014:
Pension plans	$	187	$	65	$	86
Other postretirement benefit plans		11		8		―

Earnings Per Share Computations Table

EARNINGS PER SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
		Three months ended June 30,				Six months ended June 30,
		2014		2013		2014		2013
Numerator:
Earnings/Income attributable to common shares		$	269	$	245	$	516	$	423
Denominator:
Weighted-average common shares
	outstanding for basic EPS		245,688		243,603		245,484		243,449
Dilutive effect of stock options, restricted
	stock awards and restricted stock units		4,373		4,912		4,332		4,830
Weighted-average common shares
	outstanding for diluted EPS		250,061		248,515		249,816		248,279
Earnings per share:
Basic		$	1.10	$	1.00	$	2.10	$	1.74
Diluted		$	1.08	$	0.98	$	2.07	$	1.70

Earnings Per Share Ranking Table

Four-Year Earnings Per Share Compound Annual Growth Rate		Number of Sempra Energy Common Shares Received for Each Performance-Based Restricted Stock Unit(1)(2)
8.0% or above		2.0
6.7%		1.5
4.4%		1.0
3.3% or below		―
(1)	Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are deemed reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate.
(2)	If performance falls between the tiers shown above, we calculate the payout using linear interpolation.

Total Shareholder Return Ranking Table

Four-Year Cumulative Total Shareholder Return Ranking versus S&P 500 Utilities Index(1)		Number of Sempra Energy Common Shares Received for Each Performance-Based Restricted Stock Unit(2)(3)
90th percentile or above (2014 awards only)		2.0
75th percentile (maximum for awards prior to 2014)		1.5
50th percentile		1.0
35th percentile or below		―
(1)	If Sempra Energy ranks at or above the 50th percentile compared to the S&P 500 Index, participants will receive a minimum of 1.0 share for each RSU.
(2)	Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are deemed reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate.
(3)	If performance falls between the tiers shown above, we calculate the payout using linear interpolation.

Capitalized Financing Costs Table

CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Sempra Energy Consolidated:
AFUDC related to debt	$	4	$	5	$	10	$	11
AFUDC related to equity		24		15		49		30
Other capitalized financing costs		8		8		16		13
Total Sempra Energy Consolidated	$	36	$	28	$	75	$	54
SDG&E:
AFUDC related to debt	$	3	$	4	$	7	$	8
AFUDC related to equity		7		10		18		20
Total SDG&E	$	10	$	14	$	25	$	28
SoCalGas:
AFUDC related to debt	$	1	$	1	$	3	$	3
AFUDC related to equity		6		5		11		10
Total SoCalGas	$	7	$	6	$	14	$	13

Changes in Components of Accumulated Comprehensive Income Table

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
				Pension and Other
				Postretirement Benefits
		Foreign								Total
		Currency		Unamortized		Unamortized				Accumulated Other
		Translation		Net Actuarial		Prior Service		Financial		Comprehensive
		Adjustments		Gain (Loss)		Credit		Instruments		Income (Loss)
		Three months ended June 30, 2014 and 2013
2014:
Balance as of March 31, 2014		$	(172)	$	(70)	$	―	$	(31)	$	(273)
Other comprehensive income (loss) before
reclassifications			2		―		―		(12)		(10)
Amounts reclassified from accumulated other
comprehensive income			―		5		―		5		10
Net other comprehensive income (loss)			2		5		―		(7)		―
Balance as of June 30, 2014		$	(170)	$	(65)	$	―	$	(38)	$	(273)
2013:
Balance as of March 31, 2013		$	(230)	$	(99)	$	1	$	(49)	$	(377)
Other comprehensive income (loss) before
reclassifications			(136)		―		―		23		(113)
Amounts reclassified from accumulated other
comprehensive income			270	(2)	1		―		―		271
Net other comprehensive income			134		1		―		23		158
Balance as of June 30, 2013		$	(96)	$	(98)	$	1	$	(26)	$	(219)
		Six months ended June 30, 2014 and 2013
2014:
Balance as of December 31, 2013		$	(129)	$	(73)	$	―	$	(26)	$	(228)
Other comprehensive loss before
reclassifications			(41)		―		―		(26)		(67)
Amounts reclassified from accumulated other
comprehensive income			―		8		―		14		22
Net other comprehensive income (loss)			(41)		8		―		(12)		(45)
Balance as of June 30, 2014		$	(170)	$	(65)	$	―	$	(38)	$	(273)
2013:
Balance as of December 31, 2012		$	(240)	$	(102)	$	1	$	(35)	$	(376)
Other comprehensive income (loss) before
reclassifications			(126)		―		―		7		(119)
Amounts reclassified from accumulated other
comprehensive income			270	(2)	4		―		2		276
Net other comprehensive income			144		4		―		9		157
Balance as of June 30, 2013		$	(96)	$	(98)	$	1	$	(26)	$	(219)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.
(2)	Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4.

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SAN DIEGO GAS & ELECTRIC COMPANY
(Dollars in millions)
		Pension and Other
		Postretirement Benefits
						Total
		Unamortized		Unamortized		Accumulated Other
		Net Actuarial		Prior Service		Comprehensive
		Gain (Loss)		Credit		Income (Loss)
		Three months ended June 30, 2014 and 2013
2014:
Balance as of March 31, 2014		$	(10)	$	1	$	(9)
Amounts reclassified from accumulated other
comprehensive income			1		―		1
Net other comprehensive income			1		―		1
Balance as of June 30, 2014		$	(9)	$	1	$	(8)
2013:
Balance as of March 31, 2013		$	(12)	$	1	$	(11)
Amounts reclassified from accumulated other
comprehensive income			1		―		1
Net other comprehensive income			1		―		1
Balance as of June 30, 2013		$	(11)	$	1	$	(10)
		Six months ended June 30, 2014 and 2013
2014:
Balance as of December 31, 2013		$	(10)	$	1	$	(9)
Amounts reclassified from accumulated other
comprehensive income			1		―		1
Net other comprehensive income			1		―		1
Balance as of June 30, 2014		$	(9)	$	1	$	(8)
2013:
Balance as of December 31, 2012		$	(12)	$	1	$	(11)
Amounts reclassified from accumulated other
comprehensive income			1		―		1
Net other comprehensive income			1		―		1
Balance as of June 30, 2013		$	(11)	$	1	$	(10)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SOUTHERN CALIFORNIA GAS COMPANY
(Dollars in millions)
		Pension and Other
		Postretirement Benefits
								Total
		Unamortized		Unamortized				Accumulated Other
		Net Actuarial		Prior Service		Financial		Comprehensive
		Gain (Loss)		Credit		Instruments		Income (Loss)
		Three months ended June 30, 2014 and 2013
2014:
Balance as of March 31 and June 30, 2014		$	(5)	$	1	$	(14)	$	(18)
2013:
Balance as of March 31, 2013		$	(4)	$	1	$	(15)	$	(18)
Amounts reclassified from accumulated other
comprehensive income			―		―		1		1
Net other comprehensive income			―		―		1		1
Balance as of June 30, 2013		$	(4)	$	1	$	(14)	$	(17)
		Six months ended June 30, 2014 and 2013
2014:
Balance as of December 31, 2013 and June 30, 2014		$	(5)	$	1	$	(14)	$	(18)
2013:
Balance as of December 31, 2012		$	(4)	$	1	$	(15)	$	(18)
Amounts reclassified from accumulated other
comprehensive income			―		―		1		1
Net other comprehensive income			―		―		1		1
Balance as of June 30, 2013		$	(4)	$	1	$	(14)	$	(17)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.

Reclassifications out of AOCI Table

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about accumulated		Amounts reclassified
other comprehensive income (loss)		from accumulated other				Affected line item on Condensed
components		comprehensive income (loss)				Consolidated Statements of Operations
		Three months ended June 30,
		2014		2013
Sempra Energy Consolidated:
Foreign currency translation adjustments		$	―	$	270	Equity Earnings, Net of Income Tax(1)
Financial instruments:
Interest rate and foreign exchange instruments		$	6	$	3	Interest Expense
Interest rate instruments			2		2	Equity Earnings (Losses), Before Income Tax
Commodity contracts not subject						Revenues: Energy-Related
	to rate recovery		―		(5)	Businesses
Total before income tax			8		―
			(1)		2	Income Tax Expense
Net of income tax			7		2
			(2)		(2)	Earnings Attributable to Noncontrolling Interests
		$	5	$	―
Pension and other postretirement benefits:
Amortization of actuarial loss		$	8	$	2	(2)
			(3)		(1)	Income Tax Expense
Net of income tax		$	5	$	1
Total reclassifications for the period, net of tax		$	10	$	271
SDG&E:
Financial instruments:
Interest rate instruments		$	2	$	2	Interest Expense
			(2)		(2)	Earnings Attributable to Noncontrolling Interest
		$	―	$	―
Pension and other postretirement benefits:
Amortization of actuarial loss		$	2	$	1	(2)
			(1)		―	Income Tax Expense
Net of income tax		$	1	$	1
Total reclassifications for the period, net of tax		$	1	$	1
SoCalGas:
Financial instruments:
Interest rate instruments		$	―	$	1	Interest Expense
			―		―	Income Tax Expense
Net of income tax		$	―	$	1
Total reclassifications for the period, net of tax		$	―	$	1
(1)	Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4.
(2)	Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above).

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about accumulated		Amount reclassified
other comprehensive income (loss)		from accumulated other				Affected line item on Condensed
components		comprehensive income (loss)				Consolidated Statements of Operations
		Six months ended June 30,
		2014		2013
Sempra Energy Consolidated:
Foreign currency translation adjustments		$	―	$	270	Equity Earnings, Net of Income Tax(1)
Financial instruments:
Interest rate and foreign exchange instruments		$	9	$	6	Interest Expense
Interest rate instruments			2		―	Gain on Sale of Equity Interest and Assets
Interest rate instruments			5		4	Equity Earnings (Losses), Before Income Tax
Commodity contracts not subject to						Revenues: Energy-Related
	rate recovery		10		(5)	Businesses
Total before income tax			26		5
			(7)		1	Income Tax Expense
Net of income tax			19		6
			(5)		(4)	Earnings Attributable to Noncontrolling Interests
		$	14	$	2
Pension and other postretirement benefits:
Amortization of actuarial loss		$	13	$	7	(2)
			(5)		(3)	Income Tax Expense
Net of income tax		$	8	$	4
Total reclassifications for the period, net of tax		$	22	$	276
SDG&E:
Financial instruments:
Interest rate instruments		$	5	$	4	Interest Expense
			(5)		(4)	Earnings Attributable to Noncontrolling Interest
		$	―	$	―
Pension and other postretirement benefits:
Amortization of actuarial loss		$	2	$	1	(2)
			(1)		―	Income Tax Expense
Net of income tax		$	1	$	1
Total reclassifications for the period, net of tax		$	1	$	1
SoCalGas:
Financial instruments:
Interest rate instruments		$	―	$	1	Interest Expense
			―		―	Income Tax Expense
Net of income tax		$	―	$	1
Total reclassifications for the period, net of tax		$	―	$	1
(1)	Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4.
(2)	Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above).

Shareholders' Equity and Noncontrolling Interests Table

SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS ― SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		Sempra Energy		Non-
		Shareholders’		controlling		Total
		Equity		Interests		Equity
Balance at December 31, 2013	$	11,008	$	842	$	11,850
Comprehensive income		472		39		511
Preferred dividends of subsidiary		(1)		―		(1)
Share-based compensation expense		21		―		21
Common stock dividends declared		(324)		―		(324)
Issuance of common stock		42		―		42
Repurchase of common stock		(37)		―		(37)
Tax benefit related to share-based compensation		13		―		13
Equity contributed by noncontrolling interest		―		1		1
Distributions to noncontrolling interests		―		(25)		(25)
Balance at June 30, 2014	$	11,194	$	857	$	12,051
Balance at December 31, 2012	$	10,282	$	401	$	10,683
Comprehensive income		583		13		596
Preferred dividends of subsidiaries		(3)		―		(3)
Share-based compensation expense		20		―		20
Common stock dividends declared		(307)		―		(307)
Issuance of common stock		22		―		22
Repurchase of common stock		(45)		―		(45)
Tax benefit related to share-based compensation		17		―		17
Sale of noncontrolling interests, net of offering costs		135		439		574
Equity contributed by noncontrolling interest		―		4		4
Distributions to noncontrolling interests		―		(13)		(13)
Balance at June 30, 2013	$	10,704	$	844	$	11,548

SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST ― SDG&E
(Dollars in millions)
		SDG&E		Non-
		Shareholder’s		controlling		Total
		Equity		Interest		Equity
Balance at December 31, 2013	$	4,628	$	91	$	4,719
Comprehensive income		223		7		230
Distributions to noncontrolling interest		―		(13)		(13)
Balance at June 30, 2014	$	4,851	$	85	$	4,936
Balance at December 31, 2012	$	4,222	$	76	$	4,298
Comprehensive income		159		11		170
Preferred stock dividends declared		(2)		―		(2)
Distributions to noncontrolling interest		―		(3)		(3)
Equity contributed by noncontrolling interest		―		4		4
Balance at June 30, 2013	$	4,379	$	88	$	4,467

SHAREHOLDERS' EQUITY ― SOCALGAS
(Dollars in millions)
		SoCalGas
		Shareholders'
		Equity
Balance at December 31, 2013	$	2,549
Comprehensive income		159
Preferred stock dividends declared		(1)
Balance at June 30, 2014	$	2,707
Balance at December 31, 2012	$	2,235
Comprehensive income		166
Preferred stock dividends declared		(1)
Common stock dividends declared		(50)
Balance at June 30, 2013	$	2,350

Amounts Due To and From Affiliates at SDG&E and SoCalGas Table

AMOUNTS DUE TO AND FROM AFFILIATES AT SDG&E AND SOCALGAS
(Dollars in millions)
		June 30,		December 31,
		2014		2013
SDG&E:
Current:
Due from various affiliates		$	1	$	1
Due to Sempra Energy		$	16	$	25
Due to SoCalGas			13		―
Due to various affiliates			―		14
		$	29	$	39
Income taxes due from Sempra Energy(1)		$	48	$	70
SoCalGas:
Current:
Due from SDG&E		$	13	$	―
Due from various affiliates			―		21
		$	13	$	21
Due to Sempra Energy		$	13	$	16
Income taxes due from Sempra Energy(1)		$	30	$	18
(1)	SDG&E and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from the companies’ having always filed separate returns.

Revenues From Unconsolidated Affiliates at SDG&E and SoCalGas Table

REVENUES FROM UNCONSOLIDATED AFFILIATES AT SDG&E AND SOCALGAS
(Dollars in millions)
	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014			2013
SDG&E	$	3	$	3	$	6	$	5
SoCalGas		16		16		34		31

Other Income and Expense Table

OTHER INCOME, NET
(Dollars in millions)
		Three months ended June 30,				Six months ended June 30,
		2014			2013		2014		2013
Sempra Energy Consolidated:
Allowance for equity funds used during construction		$	24	$	15	$	49	$	30
Investment gains(1)			15		12		23		22
Gains on interest rate and foreign exchange instruments, net			11		6		16		13
Regulatory interest, net(2)			2		1		3		2
Sundry, net			(3)		(8)		(2)		(4)
Total		$	49	$	26	$	89	$	63
SDG&E:
Allowance for equity funds used during construction		$	7	$	10	$	18	$	20
Regulatory interest, net(2)			2		1		3		2
Sundry, net			(2)		(2)		(1)		(2)
Total		$	7	$	9	$	20	$	20
SoCalGas:
Allowance for equity funds used during construction		$	6	$	5	$	11	$	10
Sundry, net			(3)		(2)		(4)		(3)
Total		$	3	$	3	$	7	$	7
(1)	Represents investment gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans.
(2)	Interest on regulatory balancing accounts.

Income Tax Expense and Effective Income Tax Rates Table

INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
			Effective				Effective
		Income Tax	Income			Income Tax	Income
		Expense	Tax Rate			Expense	Tax Rate
		Three months ended June 30,
		2014				2013
Sempra Energy Consolidated	$	93	25	%	$	32	11	%
SDG&E		69	35			12	14
SoCalGas		28	26			45	27
		Six months ended June 30,
		2014				2013
Sempra Energy Consolidated	$	220	29	%	$	210	32	%
SDG&E		152	40			63	29
SoCalGas		66	29			69	29

Variable Interest Entity Table

AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Operating revenues
Electric	$	―	$	5	$	―	$	4
Natural gas		―		―		―		―
Total operating revenues		―		5		―		4
Operating expenses
Cost of electric fuel and purchased power		(22)		(21)		(40)		(38)
Operation and maintenance		5		9		10		26
Depreciation and amortization		7		6		14		13
Total operating expenses		(10)		(6)		(16)		1
Operating income		10		11		16		3
Interest expense		(4)		(4)		(8)		(7)
Income (loss) before income taxes/Net income (loss)		6		7		8		(4)
(Earnings) losses attributable to noncontrolling interest		(6)		(7)		(8)		4
Earnings	$	―	$	―	$	―	$	―

Ownership Interests Held By Others Table

OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
		Percent Ownership Held by Others			June 30, 2014		December 31, 2013
SDG&E:
Otay Mesa VIE		100	%	$	85	$	91
Sempra South American Utilities:
Chilquinta Energía subsidiaries(1)		24.4 – 43.4			25		27
Luz del Sur		20.2			225		222
Tecsur		9.8			3		3
Sempra Mexico:
IEnova		18.9			461		442
Sempra Natural Gas:
Bay Gas Storage, Ltd.		9.1			23		22
Liberty Gas Storage, LLC		25.0			14		14
Southern Gas Transmission Company		49.0			1		1
Total Sempra Energy				$	837	$	822
(1)	Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages amongst these subsidiaries.

Inventory Table

INVENTORY BALANCES
(Dollars in millions)
	Natural Gas				Liquefied Natural Gas				Materials and Supplies				Total
	June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013
SDG&E	$	4	$	3	$	―	$	―	$	70	$	83	$	74	$	86
SoCalGas		35		42		―		―		28		27		63		69
Sempra South American
Utilities		―		―		―		―		38		40		38		40
Sempra Mexico		―		―		5		3		9		9		14		12
Sempra Renewables		―		―		―		―		2		2		2		2
Sempra Natural Gas		68		68		6		5		2		5		76		78
Sempra Energy
Consolidated	$	107	$	113	$	11	$	8	$	149	$	166	$	267	$	287

Asset Retirement Obligations Table

CHANGES IN ASSET RETIREMENT OBLIGATIONS
(Dollars in millions)
		Sempra Energy
		Consolidated				SDG&E				SoCalGas
		2014		2013		2014		2013		2014		2013
Balance at January 1(1)		$	2,152	$	2,056	$	913	$	741	$	1,199	$	1,253
Accretion expense			50		49		24		22		25		25
Liabilities incurred			1		2		―		―		―		―
Reclassification(2)			(6)		―		―		―		―		―
Payments			(9)		―		(8)		―		―		―
Revisions, GRC-related(3)			―		(135)		―		(30)		―		(105)
Revisions, other(4)			(54)		―		(79)		―		23		―
Balance at June 30(1)		$	2,134	$	1,972	$	850	$	733	$	1,247	$	1,173
(1)	The current portions of the obligations are included in Other Current Liabilities on the Condensed Consolidated Balance Sheets.
(2)	Reclassification to liability held for sale - asset retirement obligation which is included in Other Current Liabilities on the Condensed Consolidated Balance Sheets, as we discuss in "Asset Held for Sale, Power Plant" in Note 3 above.
(3)	The decreases in asset retirement obligations in 2013 at SDG&E and SoCalGas were due to revised estimates related to the 2012 General Rate Case (GRC) that received final approval in May 2013. At SDG&E, these revisions included increases in asset service lives ranging from 2 percent to 7 percent, and lower estimated cost of removal. At SoCalGas, the decrease included increases in asset service lives ranging from 4 percent to 6 percent, partially offset by a higher estimated cost of removal.
(4)	The decrease in asset retirement obligations in 2014 at SDG&E is due to revised estimates in an updated decommissioning cost study for the San Onofre Nuclear Generating Station, which we discuss in Note 9. The increase in asset retirement obligations in 2014 at SoCalGas is related to a change in estimates.