FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Sep. 30, 2014

Fair Value Measurements (Tables) [Abstract]

RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		Fair value at September 30, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	637	$	―	$	―	$	―	$	637
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			56		47		―		―		103
Municipal bonds			―		121		―		―		121
Other securities			―		200		―		―		200
Total debt securities			56		368		―		―		424
Total nuclear decommissioning trusts(2)			693		368		―		―		1,061
Interest rate and foreign exchange instruments			―		51		―		―		51
Commodity contracts not subject to rate recovery			7		4		―		15		26
Commodity contracts subject to rate recovery			―		3		87		30		120
Total		$	700	$	426	$	87	$	45	$	1,258
Liabilities:
Interest rate and foreign exchange instruments		$	―	$	121	$	―	$	―	$	121
Commodity contracts not subject to rate recovery			2		3		―		(2)		3
Commodity contracts subject to rate recovery			3		10		―		(3)		10
Total		$	5	$	134	$	―	$	(5)	$	134

		Fair value at December 31, 2013
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	614	$	―	$	―	$	―	$	614
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			59		58		―		―		117
Municipal bonds			―		111		―		―		111
Other securities			―		153		―		―		153
Total debt securities			59		322		―		―		381
Total nuclear decommissioning trusts(2)			673		322		―		―		995
Interest rate and foreign exchange instruments			―		56		―		―		56
Commodity contracts not subject to rate recovery			1		5		―		17		23
Commodity contracts subject to rate recovery			2		1		99		31		133
Total		$	676	$	384	$	99	$	48	$	1,207
Liabilities:
Interest rate and foreign exchange instruments		$	―	$	117	$	―	$	―	$	117
Commodity contracts not subject to rate recovery			4		8		―		(5)		7
Commodity contracts subject to rate recovery			―		13		―		―		13
Total		$	4	$	138	$	―	$	(5)	$	137
(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.
(2)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES – SDG&E
(Dollars in millions)
		Fair value at September 30, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	637	$	―	$	―	$	―	$	637
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			56		47		―		―		103
Municipal bonds			―		121		―		―		121
Other securities			―		200		―		―		200
Total debt securities			56		368		―		―		424
Total nuclear decommissioning trusts(2)			693		368		―		―		1,061
Commodity contracts not subject to rate recovery			―		―		―		1		1
Commodity contracts subject to rate recovery			―		2		87		28		117
Total		$	693	$	370	$	87	$	29	$	1,179
Liabilities:
Interest rate instruments		$	―	$	48	$	―	$	―	$	48
Commodity contracts subject to rate recovery			3		10		―		(3)		10
Total		$	3	$	58	$	―	$	(3)	$	58

		Fair value at December 31, 2013
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts:
Equity securities		$	614	$	―	$	―	$	―	$	614
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			59		58		―		―		117
Municipal bonds			―		111		―		―		111
Other securities			―		153		―		―		153
Total debt securities			59		322		―		―		381
Total nuclear decommissioning trusts(2)			673		322		―		―		995
Commodity contracts not subject to rate recovery			―		―		―		1		1
Commodity contracts subject to rate recovery			1		1		99		29		130
Total		$	674	$	323	$	99	$	30	$	1,126
Liabilities:
Interest rate instruments		$	―	$	55	$	―	$	―	$	55
Commodity contracts subject to rate recovery			―		12		―		―		12
Total		$	―	$	67	$	―	$	―	$	67
(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.
(2)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES – SOCALGAS
(Dollars in millions)
		Fair value at September 30, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Commodity contracts not subject to rate recovery		$	―	$	―	$	―	$	2	$	2
Commodity contracts subject to rate recovery			―		1		―		2		3
Total		$	―	$	1	$	―	$	4	$	5
Liabilities:
Commodity contracts subject to rate recovery		$	―	$	―	$	―	$	―	$	―
Total		$	―	$	―	$	―	$	―	$	―

		Fair value at December 31, 2013
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Commodity contracts not subject to rate recovery		$	―	$	―	$	―	$	2	$	2
Commodity contracts subject to rate recovery			1		―		―		2		3
Total		$	1	$	―	$	―	$	4	$	5
Liabilities:
Commodity contracts subject to rate recovery		$	―	$	1	$	―	$	―	$	1
Total		$	―	$	1	$	―	$	―	$	1
(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.

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
Energía Sierra
Juárez		$	26(1)	Market approach	Level 2	100%	Equity sale offer price	100%
(1)	At measurement date of July 16, 2014.

Recurring Fair Value Measures Level 3 Rollforward Table

LEVEL 3 RECONCILIATIONS
(Dollars in millions)
	Three months ended September 30,
	2014		2013
Balance at July 1	$	85	$	47
Realized and unrealized gains		3		1
Allocated transmission instruments		9		15
Settlements		(10)		(6)
Balance at September 30	$	87	$	57
Change in unrealized gains or losses relating to
instruments still held at September 30	$	―	$	2

	Nine months ended September 30,
	2014		2013
Balance as of January 1	$	99	$	61
Realized and unrealized gains (losses)		9		(2)
Allocated transmission instruments		10		15
Settlements		(31)		(17)
Balance as of September 30	$	87	$	57
Change in unrealized gains or losses relating to
instruments still held at September 30	$	―	$	1

Fair Value of Financial Instruments Table

FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
		September 30, 2014
		Carrying		Fair Value
		Amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Total long-term debt(1)		$	12,346	$	―	$	12,626	$	873	$	13,499
Preferred stock of subsidiary			20		―		23		―		23
SDG&E:
Total long-term debt(2)		$	4,463	$	―	$	4,463	$	427	$	4,890
SoCalGas:
Total long-term debt(3)		$	1,913	$	―	$	2,053	$	―	$	2,053
Preferred stock			22		―		24		―		24

		December 31, 2013
		Carrying		Fair Value
		Amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Total long-term debt(1)		$	12,022	$	―	$	11,925	$	751	$	12,676
Preferred stock of subsidiary			20		―		20		―		20
SDG&E:
Total long-term debt(2)		$	4,386	$	―	$	4,226	$	335	$	4,561
SoCalGas:
Total long-term debt(3)		$	1,413	$	―	$	1,469	$	―	$	1,469
Preferred stock			22		―		22		―		22
(1)	Before reductions for unamortized discount (net of premium) of $21 million and $17 million at September 30, 2014 and December 31, 2013, respectively, and excluding build-to-suit and capital leases of $300 million and $195 million at September 30, 2014 and December 31, 2013, respectively, and commercial paper classified as long-term debt of $200 million at December 31, 2013. We discuss our long-term debt in Note 6 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report.
(2)	Before reductions for unamortized discount of $10 million and $11 million at September 30, 2014 and December 31, 2013, respectively, and excluding capital leases of $235 million and $179 million at September 30, 2014 and December 31, 2013, respectively.
(3)	Before reductions for unamortized discount of $7 million and $4 million at September 30, 2014 and December 31, 2013, respectively, and excluding capital leases of $2 million at December 31, 2013.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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