NEW ACCOUNTING STANDARDS

3 Months Ended

Mar. 31, 2015

Notes to Consolidated Financial Statements [Abstract]

New Accounting Standards

NOTE 2. NEW ACCOUNTING STANDARDS

We describe below recent pronouncements that have had or may have a significant effect on our financial statements. We do not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to our financial condition, results of operations, cash flows or disclosures.

SEMPRA ENERGY, SDG&E AND SOCALGAS

Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09): ASU 2014-09 provides accounting guidance for revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. The guidance also provides a model for the measurement and recognition of gains and losses on the sale of certain nonfinancial assets, such as property and equipment, including real estate. This guidance must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach.

As issued, ASU 2014-09 will become effective on January 1, 2017; however, the Financial Accounting Standards Board has proposed a one-year delay in the effective date that is pending review. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

ASU 2015-03, “Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs” (ASU 2015-03):ASU 2015-03 provides guidance on the financial statement presentation of debt issuance costs and requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the related long-term debt liability. This guidance must be applied using a full retrospective approach for all periods presented in the period of adoption.

We will adopt ASU 2015-03 for our annual reporting period ending December 31, 2015. The adoption will not affect our results of operations or cash flows. Deferred debt issuance coststhat are the subject of ASU 2015-03 are included in Sundryon the Sempra Energy, SDG&E and SoCalGas Condensed Consolidated Balance Sheets and total $85 million, $33 million, and $15 million at March 31, 2015, respectively, and $84 million, $33 million, and $15 million at December 31, 2014, respectively.