REGULATORY MATTERS (Tables)

3 Months Ended

Mar. 31, 2020

We show the details of regulatory assets and liabilities in the following table.



REGULATORY ASSETS (LIABILITIES)
(Dollars in millions)
	March 31, 2020			December 31, 2019

SDG&E:
Fixed-price contracts and other derivatives	$	23		$	8
Deferred income taxes refundable in rates	(68		)	(108		)
Pension and other postretirement benefit plan obligations	105			103
Removal obligations	(1,999		)	(2,056		)
Environmental costs	45			45
Sunrise Powerlink fire mitigation	122			121
Regulatory balancing accounts⁽¹⁾⁽²⁾
Commodity – electric	116			102
Gas transportation	9			22
Safety and reliability	75			77
Public purpose programs	(138		)	(124		)
2019 GRC retroactive impacts	98			111
Other balancing accounts	124			106
Other regulatory liabilities, net⁽²⁾	(126		)	(153		)
Total SDG&E	(1,614		)	(1,746		)
SoCalGas:
Deferred income taxes refundable in rates	(133		)	(203		)
Pension and other postretirement benefit plan obligations	416			400
Employee benefit costs	44			44
Removal obligations	(719		)	(728		)
Environmental costs	38			40
Regulatory balancing accounts⁽¹⁾⁽²⁾
Commodity – gas, including transportation	(202		)	(118		)
Safety and reliability	315			295
Public purpose programs	(269		)	(273		)
2019 GRC retroactive impacts	351			400
Other balancing accounts	(155		)	(7		)
Other regulatory liabilities, net⁽²⁾	(88		)	(101		)
Total SoCalGas	(402		)	(251		)
Sempra Mexico:
Deferred income taxes recoverable in rates	83			83
Other regulatory assets	3			6
Total Sempra Energy Consolidated	$	(1,930	)	$	(1,908	)


⁽¹⁾	At March 31, 2020 and December 31, 2019, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $123 million and $108 million, respectively, and for SoCalGas was $375 million and $500 million, respectively.

⁽²⁾

Includes regulatory assets earning a return.

Schedule of Regulatory Liabilities

We show the details of regulatory assets and liabilities in the following table.



REGULATORY ASSETS (LIABILITIES)
(Dollars in millions)
	March 31, 2020			December 31, 2019

SDG&E:
Fixed-price contracts and other derivatives	$	23		$	8
Deferred income taxes refundable in rates	(68		)	(108		)
Pension and other postretirement benefit plan obligations	105			103
Removal obligations	(1,999		)	(2,056		)
Environmental costs	45			45
Sunrise Powerlink fire mitigation	122			121
Regulatory balancing accounts⁽¹⁾⁽²⁾
Commodity – electric	116			102
Gas transportation	9			22
Safety and reliability	75			77
Public purpose programs	(138		)	(124		)
2019 GRC retroactive impacts	98			111
Other balancing accounts	124			106
Other regulatory liabilities, net⁽²⁾	(126		)	(153		)
Total SDG&E	(1,614		)	(1,746		)
SoCalGas:
Deferred income taxes refundable in rates	(133		)	(203		)
Pension and other postretirement benefit plan obligations	416			400
Employee benefit costs	44			44
Removal obligations	(719		)	(728		)
Environmental costs	38			40
Regulatory balancing accounts⁽¹⁾⁽²⁾
Commodity – gas, including transportation	(202		)	(118		)
Safety and reliability	315			295
Public purpose programs	(269		)	(273		)
2019 GRC retroactive impacts	351			400
Other balancing accounts	(155		)	(7		)
Other regulatory liabilities, net⁽²⁾	(88		)	(101		)
Total SoCalGas	(402		)	(251		)
Sempra Mexico:
Deferred income taxes recoverable in rates	83			83
Other regulatory assets	3			6
Total Sempra Energy Consolidated	$	(1,930	)	$	(1,908	)


⁽¹⁾	At March 31, 2020 and December 31, 2019, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $123 million and $108 million, respectively, and for SoCalGas was $375 million and $500 million, respectively.

⁽²⁾

Includes regulatory assets earning a return.

CPUC Authorized Cost of Capital and Rate Structure

In December 2019, the CPUC approved the cost of capital and rate structures (shown in the table below) for SDG&E and SoCalGas that are effective January 1, 2020 and will remain in effect through December 31, 2022. SDG&E did not propose a 2020 cost of preferred equity in this proceeding. In January 2020, SDG&E filed an advice letter to continue the cost of preferred equity for test year 2020 at 6.22%, which the CPUC approved in March 2020.



CPUC AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE

SDG&E							SoCalGas
Authorized weighting		Return on rate base		Weighted return on rate base			Authorized weighting		Return on rate base		Weighted return on rate base
45.25	%	4.59	%	2.08	%	Long-Term Debt	45.60	%	4.23	%	1.93	%
2.75		6.22		0.17		Preferred Equity	2.40		6.00		0.14
52.00		10.20		5.30		Common Equity	52.00		10.05		5.23
100.00	%			7.55	%		100.00	%			7.30	%