UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 |
(Mark One) | ||||||||||||||||||||||||||||||||||||||
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||||||||||||||||||||||||||||||
For the fiscal year ended | December 31, | |||||||||||||||||||||||||||||||||||||
or | ||||||||||||||||||||||||||||||||||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||||||||||||||||||||||||||||
For the transition period from | to | |||||||||||||||||||||||||||||||||||||
Commission File No. | Exact Name of Registrants as Specified in their Charters, Address and Telephone Number | State of Incorporation | I.R.S. Employer Identification Nos. | ||||||||||||||
1-14201 | SEMPRA ENERGY | California | 33-0732627 | ||||||||||||||
488 8th Avenue | |||||||||||||||||
San Diego, California 92101 | |||||||||||||||||
(619) 696-2000 | |||||||||||||||||
1-03779 | SAN DIEGO GAS & ELECTRIC COMPANY | California | 95-1184800 | ||||||||||||||
8326 Century Park Court | |||||||||||||||||
San Diego, California 92123 | |||||||||||||||||
(619) 696-2000 | |||||||||||||||||
1-01402 | SOUTHERN CALIFORNIA GAS COMPANY | California | 95-1240705 | ||||||||||||||
555 West Fifth Street | |||||||||||||||||
Los Angeles, California 90013 | |||||||||||||||||
(213) 244-1200 |
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: | ||||||||
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
SEMPRA ENERGY: | ||||||||
Common Stock, without par value | SRE | New York Stock Exchange | ||||||
5.75% Junior Subordinated Notes Due 2079, $25 par value | SREA | New York Stock Exchange | ||||||
SAN DIEGO GAS & ELECTRIC COMPANY: | ||||||||
None | ||||||||
SOUTHERN CALIFORNIA GAS COMPANY: | ||||||||
None | ||||||||
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: | ||
Title of Each Class | ||
SEMPRA ENERGY: | ||
None | ||
SAN DIEGO GAS & ELECTRIC COMPANY: | ||
None | ||
SOUTHERN CALIFORNIA GAS COMPANY: | ||
6% Preferred Stock, $25 par value | ||
6% Preferred Stock, Series A, $25 par value |
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. | |||||||||||||||||||||||
Sempra Energy | Yes☒ | No | ☐ | ||||||||||||||||||||
San Diego Gas & Electric Company | Yes ☐ | No | |||||||||||||||||||||
Southern California Gas Company | Yes ☐ | No | |||||||||||||||||||||
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. | |||||||||||||||||||||||
Sempra Energy | Yes☐ | No | |||||||||||||||||||||
San Diego Gas & Electric Company | Yes☐ | No | |||||||||||||||||||||
Southern California Gas Company | Yes☐ | No |
Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the | ||||||||||||||||||||||||||
Yes☒ | No | ☐ | ||||||||||||||||||||||||
Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). | ||||||||||||||||||||||||||
Yes☒ | No | ☐ | ||||||||||||||||||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. |
Sempra Energy: | accelerated filer | |||||||||||||||||
☒ Large Accelerated Filer | ☐ Accelerated Filer | ☐ Non-accelerated Filer | ☐ Smaller Reporting Company | ☐ Emerging Growth Company | ||||||||||||||
San Diego Gas & Electric | ||||||||||||||||||
☐ Large Accelerated Filer | ☐ Accelerated Filer | ☒ Non-accelerated Filer | ☐ Smaller Reporting Company | ☐ Emerging Growth Company | ||||||||||||||
Southern California Gas | ||||||||||||||||||
☐ Large Accelerated Filer | ☐ Accelerated Filer | ☒ Non-accelerated Filer | ☐ Smaller Reporting Company | ☐ Emerging Growth Company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||||||||||||
Sempra Energy | ☐ | |||||||||||||
San Diego Gas & Electric Company | ☐ | |||||||||||||
Southern California Gas Company | ☐ |
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act by the registered public accounting firm that prepared or issued its audit report. | ||||||||||||||
Sempra Energy | ☒ | |||||||||||||
San Diego Gas & Electric Company | ☒ | |||||||||||||
Southern California Gas Company | ☒ | |||||||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | ||||||||||||||
Sempra Energy | Yes ☐ | No | ||||||||||||
San Diego Gas & Electric Company | Yes ☐ | No | ||||||||||||
Southern California Gas Company | Yes ☐ | No |
Aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant as of June 30, | |||||
Sempra Energy | $ | ||||
San Diego Gas & Electric Company | $0 | ||||
Southern California Gas Company | $0 |
Common Stock outstanding, without par value, as of February | 18, 2022: |
Sempra Energy | |||||
San Diego Gas & Electric Company | Wholly owned by Enova Corporation, which is wholly owned by Sempra Energy | ||||
Southern California Gas Company | Wholly owned by Pacific Enterprises, which is wholly owned by Sempra Energy |
SAN DIEGO GAS & ELECTRIC COMPANY MEETS THE CONDITIONS OF GENERAL INSTRUCTIONS I(1)(a) AND (b) OF FORM 10-K AND IS THEREFORE FILING THIS REPORT WITH A REDUCED DISCLOSURE FORMAT AS PERMITTED BY GENERAL INSTRUCTION I(2). |
DOCUMENTS INCORPORATED BY REFERENCE: | |||||||
Portions of the Sempra Energy | |||||||
Portions of the Southern California Gas Company | |||||||
SEMPRA ENERGY FORM 10-K | ||||||||
SAN DIEGO GAS & ELECTRIC COMPANY FORM 10-K | ||||||||
SOUTHERN CALIFORNIA GAS COMPANY FORM 10-K | ||||||||
TABLE OF CONTENTS | ||||||||
Page | ||||||||
PART I | ||||||||
Item | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
Item 9C. | ||||||||
PART III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
PART IV | ||||||||
Item 15. | ||||||||
Item 16. | ||||||||
GLOSSARY | |||||
final decision in | |||||
AB | California Assembly Bill | ||||
Black Silverback ZC 2022 LP (assignee of Black River B 2017 Inc.), a wholly owned affiliate of Abu Dhabi Investment Authority | |||||
AFUDC | allowance for funds used during construction | ||||
Arrearage Management Payment Plan | |||||
AOCI | accumulated other comprehensive income (loss) | ||||
ARO | asset retirement obligation | ||||
ASC | Accounting Standards Codification | ||||
accelerated share repurchase | |||||
ASU | Accounting Standards Update | ||||
Bay Gas | Bay Gas Storage Company, Ltd. | ||||
Bcf | billion cubic feet | ||||
Bechtel | Bechtel | ||||
bps | basis points | ||||
California | |||||
Cameron LNG JV | Cameron LNG Holdings, LLC | ||||
CARB | California Air Resources Board | ||||
CCA | Community Choice Aggregation | ||||
CCC | California Coastal Commission | ||||
CCM | cost of capital adjustment mechanism | ||||
CEC | California Energy Commission | ||||
Centro Nacional de Control de Energía (Mexico’s National Center for Energy Control) | |||||
CENAGAS | Centro Nacional de Control de Gas | ||||
Comisión Federal de Electricidad | |||||
Chilquinta Energía | Chilquinta Energía, S.A. and its subsidiaries | ||||
Comisión Nacional Bancaria y de | |||||
California Public Utilities Commission | |||||
CRE | Comisión Reguladora de Energía | ||||
CRR | congestion revenue right | ||||
Ductos y Energéticos del Norte, S. de R.L. de C.V. | |||||
DOE | U.S. Department of Energy | ||||
U.S. Department of Transportation | |||||
ECA LNG Phase 1 | ECA LNG Holdings B.V. | ||||
ECA LNG Phase 2 | ECA LNG II Holdings B.V. | ||||
ECA Regas Facility | Energía Costa Azul, S. de R.L. de C.V. LNG regasification facility | ||||
Ecogas | Ecogas México, S. de R.L. de C.V. | ||||
Edison | Southern California Edison Company, a subsidiary of Edison International | ||||
EFH | Energy Future Holdings Corp. (renamed Sempra Texas Holdings Corp.) | ||||
Eletrans S.A., Eletrans II S.A. and Eletrans III S.A., collectively | |||||
U.S. Environmental Protection Agency | |||||
EPC | engineering, procurement and construction |
GLOSSARY (CONTINUED) | |||||
EPS | |||||
earnings (losses) per common share | |||||
ERCOT | Electric Reliability Council of Texas, Inc., the independent system operator and the regional coordinator of various electricity systems within Texas | ||||
ERR | eligible renewable energy resource | ||||
Securities Exchange Act of 1934, as amended | |||||
FERC | Federal Energy Regulatory Commission | ||||
Fitch | Fitch Ratings | ||||
FTA | Free Trade Agreement | ||||
Gazprom | Gazprom Marketing & Trading México S. de R.L. de C.V. | ||||
GCIM | Gas Cost Incentive Mechanism | ||||
GHG | greenhouse gas | ||||
GRC | General Rate Case | ||||
IEnova | Infraestructura Energética Nova, S.A.B. de C.V., renamed Infraestructura Energética Nova, S.A.P.I. de C.V. on November 1, 2021 | ||||
IEnova Pipelines | IEnova Pipelines, S. de R.L. de C.V. | ||||
IMG | Infraestructura Marina del Golfo | ||||
InfraREIT | InfraREIT, Inc. | ||||
U.S. Internal Revenue Code of 1986 (as amended) | |||||
IRS | U.S. Internal Revenue Service | ||||
ISFSI | independent spent fuel storage installation | ||||
ISO | Independent System Operator | ||||
kilowatt hour | |||||
LA Superior Court | Los Angeles County Superior Court | ||||
Leak | the leak at the SoCalGas Aliso Canyon natural gas storage facility injection-and-withdrawal well, SS25, discovered by SoCalGas on October 23, 2015 | ||||
LNG | liquefied natural gas | ||||
LPG | liquid petroleum gas | ||||
LTIP | long-term incentive plan | ||||
Luz del Sur | Luz del Sur S.A.A. and its subsidiaries | ||||
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||
Mexican Stock Exchange | |||||
Mississippi Hub | Mississippi Hub, LLC | ||||
MMBtu | million British thermal units (of natural gas) | ||||
MMcf | million cubic feet | ||||
Moody’s Investors Service | |||||
MOU | Memorandum of Understanding | ||||
Mtpa | million tonnes per annum | ||||
MW | megawatt | ||||
MWh | megawatt hour | ||||
NAV | net asset value | ||||
NCI | noncontrolling interest(s) | ||||
NDT | nuclear decommissioning trusts | ||||
NEIL | Nuclear Electric Insurance Limited | ||||
NEM | net energy metering | ||||
NOL | net operating loss |
GLOSSARY (CONTINUED) | |||||
Nuclear Regulatory Commission | |||||
New York Stock Exchange | |||||
O&M | operation and maintenance expense | ||||
OCI | other comprehensive income (loss) | ||||
Office of Energy Infrastructure Safety | |||||
OII | Order Instituting Investigation | ||||
OIR | Order Instituting a Rulemaking | ||||
Otay Mesa Energy Center | |||||
OMEC LLC | Otay Mesa Energy Center LLC | ||||
Oncor Electric Delivery Company LLC | |||||
Oncor Holdings | Oncor Electric Delivery Holdings Company LLC | ||||
Otay Mesa VIE | OMEC LLC VIE | ||||
PBOP | postretirement benefits other than pension | ||||
Petróleos Mexicanos (Mexican state-owned oil company) | |||||
PG&E | Pacific Gas and Electric Company | ||||
PHMSA | Pipeline and Hazardous Materials Safety Administration | ||||
property, plant and equipment | |||||
power purchase agreement | |||||
PRP | Potentially Responsible Party | ||||
Public Utility Commission of Texas | |||||
PURA | Texas Public Utility Regulatory Act | ||||
The Royal Bank of Scotland plc | |||||
RBS SEE | RBS Sempra Energy Europe | ||||
RBS Sempra Commodities | RBS Sempra Commodities LLP | ||||
REC | renewable energy certificate | ||||
return on equity | |||||
ROU | right-of-use | ||||
RPS | Renewables Portfolio Standard | ||||
restricted stock unit | |||||
S&P Global Ratings, a division of S&P Global Inc. | |||||
Saavi Energía | Saavi Energía S. de R.L. de C.V. | ||||
SB | California Senate Bill | ||||
San Diego Gas & Electric Company | |||||
Senior Debt Service Reserve Account | |||||
SEC | |||||
U.S. Securities and Exchange Commission | |||||
SEDATU | Secretaría de Desarrollo Agrario, Territorial y Urbano | ||||
Sempra | Sempra Energy doing business as Sempra, together with its consolidated entities unless otherwise stated or indicated by the context | ||||
Sempra California | San Diego Gas & Electric Company and Southern California Gas Company, collectively | ||||
Sempra Global | Sempra Global, which was renamed Sempra Infrastructure Partners, LP on September 30, 2021 | ||||
SENER | Secretaría de Energía de México (Mexico’s Ministry of Energy) | ||||
series A preferred stock | 6% mandatory convertible preferred stock, series A | ||||
series B preferred stock | 6.75% mandatory convertible preferred stock, series B | ||||
series C preferred stock | Sempra’s 4.875% fixed-rate reset cumulative redeemable perpetual preferred stock, series C | ||||
Sharyland Holdings | Sharyland Holdings, L.P. | ||||
Sharyland Utilities | Sharyland Utilities, L.L.C. | ||||
Shell Mexico | Shell México Gas Natural, S. de R.L. de C.V. | ||||
SI Partners | Sempra Infrastructure Partners, LP, the holding company for most of | ||||
Southern California Gas Company |
SONGS | San Onofre Nuclear Generating Station | ||||
TAG | |||||
Tangguh PSC | Tangguh PSC Contractors | ||||
TCJA | Tax Cuts and Jobs Act of 2017 | ||||
TdM | Termoeléctrica de Mexicali | ||||
Tecsur S.A. | |||||
TO4 | Electric Transmission Owner Formula Rate, effective through | ||||
TO5 | Electric Transmission Owner Formula Rate, | ||||
Texas Transmission Investment LLC | |||||
U.S. GAAP | generally accepted accounting principles | ||||
value at risk | |||||
VAT | value-added tax | ||||
Ventika | Ventika, S.A.P.I. de C.V. and Ventika II, S.A.P.I. de C.V., collectively | ||||
VIE | variable interest entity | ||||
Wildfire Legislation | AB 1054 and AB 111 |
SDG&E – ELECTRIC RESOURCES(1) | |||||||||||
Contract | Net operating | ||||||||||
expiration date | capacity (MW) | % of total | |||||||||
Owned generation facilities, natural gas(2) | 1,204 | 24 | % | ||||||||
Purchased-power contracts: | |||||||||||
Renewables: | |||||||||||
Wind | 2023 to 2035 | 1,131 | 22 | ||||||||
Solar | 2030 to 2042 | 1,350 | 26 | ||||||||
Other | 2022 and thereafter | 168 | 3 | ||||||||
Tolling and other | 2022 to 2042 | 1,292 | 25 | ||||||||
Total | 5,145 | 100 | % |
SDG&E – ELECTRIC CUSTOMER METERS AND VOLUMES | |||||||||||||||||
Customer meter count | Volumes(1) (millions of kWh) | ||||||||||||||||
December 31, | Years ended December 31, | ||||||||||||||||
2021 | 2021 | 2020 | 2019 | ||||||||||||||
Residential | 1,282,331 | 5,657 | 6,606 | 5,982 | |||||||||||||
Commercial | 72,216 | 4,128 | 5,873 | 6,295 | |||||||||||||
Industrial | 683 | 1,398 | 1,842 | 2,044 | |||||||||||||
Street and highway lighting | 3,487 | 115 | 77 | 76 | |||||||||||||
1,358,717 | 11,298 | 14,398 | 14,397 | ||||||||||||||
CCA and DA | 137,098 | 5,916 | 3,482 | 3,549 | |||||||||||||
Total | 1,495,815 | 17,214 | 17,880 | 17,946 |
SDG&E – ELECTRIC CUSTOMER METERS AND VOLUMES | ||||||||||
Customer meter count | Volumes(1) (millions of kWh) | |||||||||
December 31, | Years ended December 31, | |||||||||
2018 | 2018 | 2017 | 2016 | |||||||
Residential | 1,293,600 | 6,336 | 6,577 | 6,685 | ||||||
Commercial | 150,300 | 6,539 | 6,763 | 6,700 | ||||||
Industrial | 400 | 2,169 | 2,198 | 2,189 | ||||||
Street and highway lighting | 2,100 | 81 | 79 | 75 | ||||||
1,446,400 | 15,125 | 15,617 | 15,649 | |||||||
CCA and DA | 12,500 | 3,628 | 3,394 | 3,515 | ||||||
Total | 1,458,900 | 18,753 | 19,011 | 19,164 |
SDG&E – ELECTRIC RESOURCES(1) | |||||
Contract | Net operating | ||||
expiration date | capacity (MW) | % of total | |||
Owned generation facilities, natural gas(2) | 1,193 | 20 | % | ||
Purchased-power contracts: | |||||
Qualifying facilities | 2024 to 2026 | 132 | 2 | ||
Renewables: | |||||
Wind | 2019 to 2041 | 1,209 | 21 | ||
Solar | 2030 to 2041 | 1,306 | 22 | ||
Other | 2019 and thereafter | 199 | 4 | ||
Tolling and other(3) | 2019 to 2042 | 1,841 | 31 | ||
Total | 5,880 | 100 | % |
SEMPRA CALIFORNIA – NATURAL GAS CUSTOMER METERS AND VOLUMES | |||||||||||||||||
Customer meter count | Volumes (Bcf)(1) | ||||||||||||||||
December 31, | Years ended December 31, | ||||||||||||||||
2021 | 2021 | 2020 | 2019 | ||||||||||||||
SDG&E: | |||||||||||||||||
Residential | 874,460 | ||||||||||||||||
Commercial | 29,060 | ||||||||||||||||
Electric generation and transportation | 2,630 | ||||||||||||||||
Natural gas sales | 46 | 43 | 45 | ||||||||||||||
Transportation | 38 | 40 | 26 | ||||||||||||||
Total | 906,150 | 84 | 83 | 71 | |||||||||||||
SoCalGas: | |||||||||||||||||
Residential | 5,823,610 | ||||||||||||||||
Commercial | 248,560 | ||||||||||||||||
Industrial | 24,660 | ||||||||||||||||
Electric generation and wholesale | 40 | ||||||||||||||||
Natural gas sales | 314 | 312 | 329 | ||||||||||||||
Transportation | 568 | 572 | 547 | ||||||||||||||
Total | 6,096,870 | 882 | 884 | 876 |
Customer meter count | Volumes (Bcf)(1) | ||||||||
December 31, | Years ended December 31, | ||||||||
2018 | 2018 | 2017 | 2016 | ||||||
SDG&E: | |||||||||
Residential | 856,900 | ||||||||
Commercial | 28,700 | ||||||||
Electric generation and transportation | 3,400 | ||||||||
Natural gas sales | 40 | 40 | 40 | ||||||
Transportation | 28 | 35 | 31 | ||||||
Total | 889,000 | 68 | 75 | 71 | |||||
SoCalGas: | |||||||||
Residential | 5,722,200 | ||||||||
Commercial | 248,000 | ||||||||
Industrial | 25,300 | ||||||||
Electric generation and wholesale | 40 | ||||||||
Natural gas sales | 297 | 301 | 294 | ||||||
Transportation | 553 | 603 | 610 | ||||||
Total | 5,995,540 | 850 | 904 | 904 |
CHILQUINTA ENERGÍA – ELECTRIC CUSTOMER METERS AND VOLUMES | ||||||||||
Customer meter count | Volumes (millions of kWh) | |||||||||
December 31, | Years ended December 31, | |||||||||
2018 | 2018 | 2017 | 2016 | |||||||
Residential | 667,240 | 1,198 | 1,136 | 1,104 | ||||||
Commercial | 44,905 | 1,181 | 1,211 | 1,178 | ||||||
Industrial | 1,378 | 480 | 500 | 527 | ||||||
Street and highway lighting | 8,419 | 89 | 89 | 91 | ||||||
721,942 | 2,948 | 2,936 | 2,900 | |||||||
Tolling | 100 | 303 | 98 | 90 | ||||||
Total | 722,042 | 3,251 | 3,034 | 2,990 |
CHILQUINTA ENERGÍA – ELECTRIC RESOURCES | |||||
Contract | Net operating | ||||
expiration date | capacity (MW) | % of total | |||
Purchased-power contracts: | |||||
Thermal(1) | 2023 to 2036 | 263 | 54 | % | |
Hydro | 2023 to 2036 | 148 | 30 | ||
Wind/solar | 2023 to 2036 | 65 | 13 | ||
Biomass | 2023 to 2036 | 15 | 3 | ||
Total | 491 | 100 | % |
LUZ DEL SUR – ELECTRIC CUSTOMER METERS AND VOLUMES | ||||||||||
Customer meter count | Volumes (millions of kWh) | |||||||||
December 31, | Years ended December 31, | |||||||||
2018 | 2018 | 2017 | 2016 | |||||||
Residential | 1,022,932 | 2,995 | 2,930 | 2,896 | ||||||
Commercial | 101,236 | 2,254 | 2,416 | 2,647 | ||||||
Industrial | 4,166 | 623 | 784 | 1,021 | ||||||
Street and highway lighting | 5,428 | 246 | 206 | 201 | ||||||
Free | 164 | 642 | 663 | 622 | ||||||
1,133,926 | 6,760 | 6,999 | 7,387 | |||||||
Tolling | 362 | 2,385 | 1,922 | 1,365 | ||||||
Total | 1,134,288 | 9,145 | 8,921 | 8,752 |
LUZ DEL SUR – ELECTRIC RESOURCES | |||||||
Contract | Firm contracted | ||||||
expiration date | capacity (MW) | % of total | |||||
Owned generation facility, hydro(1) | 61 | 3 | % | ||||
Purchased-power contracts: | |||||||
Thermal(2) | 2021-2027 | 700 | 37 | ||||
Hydro | 2021-2027 | 405 | 21 | ||||
Combined thermal/hydro | 2019-2027 | 750 | 39 | ||||
Total | 1,916 | 100 | % |
SEMPRA INFRASTRUCTURE – RENEWABLE POWER GENERATION | |||||||||||
Location | Contract expiration date | Nameplate capacity (MW) | |||||||||
Wind power generation facilities: | |||||||||||
ESJ – first phase | Tecate, Baja California | 2035 | 155 | ||||||||
ESJ – second phase(1) | Tecate, Baja California | 2042 | 108 | ||||||||
Ventika | Nuevo León, Mexico | 2036 | 252 | ||||||||
Solar power generation facilities: | |||||||||||
Border Solar | Ciudad Juarez, Chihuahua | 2032 and 2037 | 150 | ||||||||
Don Diego Solar | Benjamin Hill, Sonora | 2034 and 2037 | 125 | ||||||||
Pima Solar | Caborca, Sonora | 2038 | 110 | ||||||||
Rumorosa Solar | Tecate, Baja California | 2034 | 44 | ||||||||
Tepezalá Solar | Aguascalientes | 2034 | 100 | ||||||||
Total | 1,044 |
INFORMATION ABOUT EXECUTIVE OFFICERS AT SEMPRA | |||||||||||
Name | Age(1) | Positions held over last five years | Time in position | ||||||||
Jeffrey W. Martin | Chairman | December 2018 to present | |||||||||
Chief Executive Officer | May 2018 to present | ||||||||||
President | March 2020 to present | ||||||||||
Executive Vice President and Chief Financial Officer | January 2017 to | ||||||||||
Kevin C. Sagara | 60 | Executive Vice President | |||||||||
Chief Executive Officer, SDG&E | |||||||||||
President, Sempra Renewables | October 2013 to September 2018 | ||||||||||
Trevor I. Mihalik | 55 | ||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
Peter R. Wall | 50 | Senior Vice President | |||||||||
Controller and Chief Accounting Officer | May 2018 to present | ||||||||||
May 2018 to April 2020 | |||||||||||
Vice President and Chief Financial Officer, Sempra Infrastructure | |||||||||||
Karen L. Sedgwick | 55 | Chief Administrative Officer and Chief | |||||||||
Senior Vice President and Chief | |||||||||||
Chief Human Resources Officer and Chief Administrative Officer, SDG&E | April 2019 to September 2020 | ||||||||||
Vice President and Treasurer | August 2018 to April 2019 | ||||||||||
Vice President, Audit Services | January 2014 to August 2018 | ||||||||||
Name | Age(1) | Positions held over last five years | Time in position | ||||||||
January 2017 to | |||||||||||
Bruce A. Folkmann | President | August 2020 to present | |||||||||
Chief Financial Officer | March 2015 to present | ||||||||||
Senior Vice President | August 2019 to July 2020 | ||||||||||
Controller, Chief Accounting Officer and Treasurer | March 2015 to August 2020 | ||||||||||
Vice President | March 2015 to August 2019 | ||||||||||
Vice President, Controller, Chief Financial Officer, Chief Accounting Officer and Treasurer, SoCalGas | March 2015 to | ||||||||||
Valerie A. Bille | 43 | Vice President, Controller, Chief Accounting Officer and | |||||||||
Assistant Controller, Sempra | June 2019 to August 2020 | ||||||||||
June 2018 to | |||||||||||
August 2015 to June | |||||||||||
Diana L. Day | Senior Vice President and General Counsel | August 2020 to present | |||||||||
Chief Risk Officer | August 2019 to present | ||||||||||
Vice President and General Counsel | January 2019 to | ||||||||||
Acting General Counsel | September 2017 to January 2019 | ||||||||||
Vice President of Enterprise Risk Management and Compliance, | June 2014 to January 2019 | ||||||||||
Name | Age(1) | Positions held over last five years | Time in position | ||||||||
Chief Executive Officer | |||||||||||
President, SDG&E | January 2017 to July 2020 | ||||||||||
Maryam S. Brown | 46 | President | March 2019 to present | ||||||||
Vice President of Federal Government Affairs, Sempra | September 2016 to | ||||||||||
Jimmie I. Cho | 57 | Chief Operating Officer | |||||||||
January 2019 to present | |||||||||||
Senior Vice President of Customer Services and Gas Distribution Operations | April 2018 to January 2019 | ||||||||||
Senior Vice President of Gas Distribution Operations, SDG&E | April 2018 to January 2019 | ||||||||||
Senior Vice President of Gas Engineering and Distribution Operations, SoCalGas and SDG&E | October 2017 to April 2018 | ||||||||||
Senior Vice President of Gas Operations and System Integrity, SoCalGas and SDG&E | June 2014 to October 2017 | ||||||||||
Mia L. DeMontigny | 49 | ||||||||||
Controller, Chief Accounting Officer and Treasurer | |||||||||||
Vice President | June 2019 to August 2021 | ||||||||||
Assistant Controller, Sempra | August 2015 to | ||||||||||
David J. Barrett | Vice President and General Counsel | January 2019 to present | |||||||||
Associate General Counsel of Gas Infrastructure, Sempra | June 2018 to January 2019 | ||||||||||
Assistant General Counsel of Gas Infrastructure, Sempra | February 2017 to June 2018 | ||||||||||
Senior Vice President, Chief Administrative and Diversity Officer | November 2020 to present | ||||||||||
Vice President, Customer Solutions | March 2019 to November 2020 | ||||||||||
Director of | January 2019 to March 2019 | ||||||||||
Director, SoCalGas Advanced Meter | January 2014 to January 2019 |
NUMBER OF EMPLOYEES | |||||||||||||||||
Number of employees | % of employees covered under collective bargaining agreements | % of employees covered under collective bargaining agreements expiring within one year | |||||||||||||||
Sempra(1) | 15,390 | 37 | % | 9 | % | ||||||||||||
SDG&E | 4,676 | 30 | % | 30 | % | ||||||||||||
SoCalGas | 8,178 | 53 | % | — | % |
NUMBER OF EMPLOYEES | |||||||||
Number of employees | % of employees covered under collective bargaining agreements | % of employees covered under collective bargaining agreements expiring within one year | |||||||
Sempra Energy Consolidated(1) | 16,823 | 41 | % | 2 | % | ||||
SDG&E(1) | 4,113 | 29 | % | — | % | ||||
SoCalGas | 7,523 | 60 | % | — | % |
▪SDG&E – www.sdge.com ▪SoCalGas – www.socalgas.com |
EQUITY COMPENSATION PLAN | |||||||||
Number of shares to be issued upon exercise of outstanding options, warrants and rights(1) | Weighted-average exercise price of outstanding options, warrants and rights(2) | Number of additional shares remaining available for future issuance(3) | |||||||
Equity compensation plan approved by shareholders: | |||||||||
2013 Long-Term Incentive Plan | 1,701,470 | $ | 54.63 | 6,067,767 |
PURCHASES OF EQUITY SECURITIES | ||||||||||||||
(Dollars in millions, except per share amounts) | ||||||||||||||
Total number of shares purchased(1) | Average price paid per share(1)(2) | Total number of shares purchased as part of publicly announced plans or programs(1) | Maximum dollar value of shares that may yet be purchased under the plans or programs | |||||||||||
November 1, 2021 - November 30, 2021 | 1,525,000 | $ | 123.91 | 1,525,000 | $ | 1,811 | ||||||||
December 1, 2021 - December 31, 2021 | 897,758 | $ | 123.69 | 897,758 | $ | 1,700 | ||||||||
Total | 2,422,758 | $ | 123.83 | 2,422,758 | $ | 1,700 |
FIVE-YEAR SUMMARY OF SELECTED FINANCIAL DATA – SEMPRA ENERGY CONSOLIDATED | |||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||
At December 31 or for the years then ended | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Revenues: | |||||||||||||||||||
Utilities | |||||||||||||||||||
Electric | $ | 5,506 | $ | 5,415 | $ | 5,211 | $ | 5,158 | $ | 5,209 | |||||||||
Natural gas | 4,540 | 4,361 | 4,050 | 4,096 | 4,549 | ||||||||||||||
Energy-related businesses | 1,641 | 1,431 | 922 | 977 | 1,277 | ||||||||||||||
Total revenues | $ | 11,687 | $ | 11,207 | $ | 10,183 | $ | 10,231 | $ | 11,035 | |||||||||
Income from continuing operations | $ | 1,126 | $ | 351 | $ | 1,519 | $ | 1,448 | $ | 1,262 | |||||||||
Earnings from continuing operations | |||||||||||||||||||
attributable to noncontrolling interests | (76 | ) | (94 | ) | (148 | ) | (98 | ) | (100 | ) | |||||||||
Mandatory convertible preferred stock dividends | (125 | ) | — | — | — | — | |||||||||||||
Preferred dividends of subsidiary | (1 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||
Earnings/Income from continuing operations | |||||||||||||||||||
attributable to common shares | $ | 924 | $ | 256 | $ | 1,370 | $ | 1,349 | $ | 1,161 | |||||||||
Attributable to common shares: | |||||||||||||||||||
Earnings/Income from continuing operations | |||||||||||||||||||
Basic | $ | 3.45 | $ | 1.02 | $ | 5.48 | $ | 5.43 | $ | 4.72 | |||||||||
Diluted | $ | 3.42 | $ | 1.01 | $ | 5.46 | $ | 5.37 | $ | 4.63 | |||||||||
Dividends declared per common share | $ | 3.58 | $ | 3.29 | $ | 3.02 | $ | 2.80 | $ | 2.64 | |||||||||
Effective income tax rate | 12 | % | 81 | % | 21 | % | 20 | % | 20 | % | |||||||||
Weighted-average rate base: | |||||||||||||||||||
SDG&E | $ | 9,619 | $ | 8,549 | $ | 8,019 | $ | 7,671 | $ | 7,253 | |||||||||
SoCalGas | $ | 6,413 | $ | 5,493 | $ | 4,775 | $ | 4,269 | $ | 3,879 | |||||||||
AT DECEMBER 31 | |||||||||||||||||||
Current assets | $ | 3,645 | $ | 3,341 | $ | 3,110 | $ | 2,891 | $ | 4,184 | |||||||||
Total assets | $ | 60,638 | $ | 50,454 | $ | 47,786 | $ | 41,150 | $ | 39,651 | |||||||||
Current liabilities | $ | 7,523 | $ | 6,635 | $ | 5,927 | $ | 4,612 | $ | 5,069 | |||||||||
Long-term debt (excludes current portion)(1) | $ | 21,611 | $ | 16,445 | $ | 14,429 | $ | 13,134 | $ | 12,086 | |||||||||
Short-term debt(2) | $ | 3,752 | $ | 2,967 | $ | 2,692 | $ | 1,529 | $ | 2,202 | |||||||||
Sempra Energy shareholders’ equity | $ | 17,138 | $ | 12,670 | $ | 12,951 | $ | 11,809 | $ | 11,326 | |||||||||
Common shares outstanding | 273.8 | 251.4 | 250.2 | 248.3 | 246.3 | ||||||||||||||
Book value per common share | $ | 54.35 | $ | 50.40 | $ | 51.77 | $ | 47.56 | $ | 45.98 |
FIVE-YEAR SUMMARIES OF SELECTED FINANCIAL DATA – SDG&E AND SOCALGAS | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
At December 31 or for the years then ended | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
SDG&E: | |||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||
Operating revenues | $ | 4,568 | $ | 4,476 | $ | 4,253 | $ | 4,219 | $ | 4,329 | |||||||||
Operating income(1) | 1,010 | 709 | 976 | 1,045 | 976 | ||||||||||||||
Earnings attributable to common shares | 669 | 407 | 570 | 587 | 507 | ||||||||||||||
Balance Sheet Data: | |||||||||||||||||||
Total assets | $ | 19,225 | $ | 17,844 | $ | 17,719 | $ | 16,515 | $ | 16,260 | |||||||||
Long-term debt (excludes current portion)(2) | 6,138 | 5,335 | 4,658 | 4,455 | 4,283 | ||||||||||||||
Short-term debt(3) | 372 | 473 | 191 | 218 | 611 | ||||||||||||||
SDG&E shareholder’s equity | 6,015 | 5,598 | 5,641 | 5,223 | 4,932 | ||||||||||||||
SoCalGas: | |||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||
Operating revenues | $ | 3,962 | $ | 3,785 | $ | 3,471 | $ | 3,489 | $ | 3,855 | |||||||||
Operating income(1) | 591 | 627 | 551 | 548 | 490 | ||||||||||||||
Dividends on preferred stock | 1 | 1 | 1 | 1 | 1 | ||||||||||||||
Earnings attributable to common shares | 400 | 396 | 349 | 419 | 332 | ||||||||||||||
Balance Sheet Data: | |||||||||||||||||||
Total assets | $ | 15,389 | $ | 14,159 | $ | 13,424 | $ | 12,104 | $ | 10,446 | |||||||||
Long-term debt (excludes current portion)(2) | 3,427 | 2,485 | 2,982 | 2,481 | 1,891 | ||||||||||||||
Short-term debt(3) | 259 | 617 | 62 | 9 | 50 | ||||||||||||||
SoCalGas shareholders’ equity | 4,258 | 3,907 | 3,510 | 3,149 | 2,781 |
OVERALL RESULTS OF OPERATIONS OF SEMPRA | |||||||||||
(Dollars, except per share amounts; shares in millions) |
SEMPRA EARNINGS (LOSSES) BY SEGMENT | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
SDG&E | $ | 819 | $ | 824 | $ | 767 | |||||||||||
SoCalGas | (427) | 504 | 641 | ||||||||||||||
Sempra Texas Utilities | 616 | 579 | 528 | ||||||||||||||
Sempra Infrastructure | 682 | 580 | 247 | ||||||||||||||
Sempra Renewables | — | — | 59 | ||||||||||||||
Parent and other(1) | (436) | (563) | (515) | ||||||||||||||
Discontinued operations | — | 1,840 | 328 | ||||||||||||||
Earnings attributable to common shares | $ | 1,254 | $ | 3,764 | $ | 2,055 |
SEMPRA ENERGY EARNINGS (LOSSES) BY SEGMENT | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
SDG&E | $ | 669 | $ | 407 | $ | 570 | |||||
SoCalGas(1) | 400 | 396 | 349 | ||||||||
Sempra Texas Utility | 371 | — | — | ||||||||
Sempra South American Utilities | 199 | 186 | 156 | ||||||||
Sempra Mexico | 237 | 169 | 463 | ||||||||
Sempra Renewables | 328 | 252 | 55 | ||||||||
Sempra LNG & Midstream | (617 | ) | 150 | (107 | ) | ||||||
Parent and other(1)(2) | (663 | ) | (1,304 | ) | (116 | ) | |||||
Earnings | $ | 924 | $ | 256 | $ | 1,370 |
▪$62 million increase due to the release of a regulatory liability in 2020 related to 2016-2018 forecasting differences that are not subject to tracking in the income tax expense memorandum account; ▪$52 million higher electric transmission margin, including an increase in authorized ROE and the following favorable impacts in 2020 from the March 2020 FERC-approved TO5 settlement: ◦$18 million to conclude a rate base matter, and ◦$9 million from the retroactive application of the final TO5 settlement for 2019; ▪$23 million higher AFUDC equity; and ▪$16 million higher income tax benefits from flow-through items; offset by ▪$44 million charge in 2020 for amounts to be refunded to customers and a fine related to the Energy Efficiency Program inquiry; ▪$31 million income tax benefit in 2019 from the release of a regulatory liability established in connection with 2017 tax reform for excess deferred income tax balances that the CPUC directed to be allocated to shareholders in a January 2019 decision; ▪$13 million higher amortization and accretion of the Wildfire Fund asset and liability, respectively; and ▪$12 million higher net interest expense. SoCalGas Losses of $427 million in 2021 compared to earnings of $504 million in 2020 was primarily due to: ▪$915 million increase in charges related to civil litigation and regulatory matters pertaining to the Leak comprised of $1,148 million in 2021 compared to $233 million in 2020; and ▪$64 million decrease due to the release of a regulatory liability in 2020 related to 2016-2018 forecasting differences that are not subject to tracking in the income tax expense memorandum account; offset by ▪$23 million higher income tax benefits from flow-through items; and ▪$21 million higher CPUC base operating margin, net of operating expenses. |
▪increased revenues from rate updates to reflect increases in invested capital and customer growth; ▪the impact of Oncor’s acquisition of InfraREIT in May 2019; and ▪higher AFUDC equity; offset by ▪unfavorable weather and increased operating costs and expenses attributable to invested capital. 62 |
▪$50 million equity earnings in 2021 compared to $100 million equity losses in 2020 related to our investment in RBS Sempra Commodities to settle pending VAT matters and related legal costs, which we discuss in Note 16 of the Notes to Consolidated Financial Statements; ▪$105 million lower preferred dividends as a result of $124 million lower dividends due to the mandatory conversion of all series A preferred stock and series B preferred stock in January 2021 and July 2021, respectively, offset by $19 million higher dividends due to the issuance of series C preferred stock in June 2020; ▪$59 million lower net interest expense; 63 ▪$26 million gain on the sale of PXiSE in December 2021, which we discuss in Note 5 of the Notes to Consolidated Financial Statements; and ▪$14 million lower operating costs retained at Parent and other; offset by ▪$92 million in charges in 2021 associated with make-whole premiums and a write-off of unamortized discount and debt issuance costs from the early redemptions of debt in December 2021, which we discuss in Note 7 of the Notes to Consolidated Financial Statements; ▪$72 million net income tax expense related to the utilization of a deferred income tax asset upon completing the sale of a 20% NCI in SI Partners to KKR in October 2021; ▪$9 million income tax expense in 2021 compared to $26 million income tax benefit in 2020 due to changes in a valuation allowance against certain tax credit carryforwards; and ▪$31 million income tax benefit in 2020 for repatriation of foreign earnings due to extension of federal tax law. |
▪$100 million equity losses in 2020 related to our investment in RBS Sempra Commodities to settle pending VAT matters and related legal costs; ▪$26 million higher preferred dividends due to the issuance of series C preferred stock in June 2020; ▪$24 million consolidated California state income tax expense in 2020 associated with income from our investments in Sempra Infrastructure entities; ▪$10 million income tax benefit in 2019 from a reduction in a valuation allowance against certain NOL carryforwards as a result of our decision to sell our South American businesses; and ▪$9 million lower net investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation obligations, net of deferred compensation expenses; offset by ▪$36 million lower net interest expense; ▪$26 million income tax benefit in 2020 compared to $7 million income tax expense in 2019 from changes to a valuation allowance against certain tax credit carryforwards; ▪$11 million income tax benefit in 2020 compared to $2 million income tax expense in 2019 related to share-based compensation; and ▪$8 million decrease in losses from foreign currency derivatives used to hedge exposure to fluctuations in the Peruvian sol and Chilean peso related to the sale of our South American businesses. Discontinued Operations Discontinued operations that were previously in our Sempra South American Utilities segment include our former 100% interest in Chilquinta Energía in Chile, our former 83.6% interest in Luz del Sur in Peru and our former interests in two energy-services companies, Tecnored and Tecsur, which provide electric construction and infrastructure services to Chilquinta Energía and Luz del Sur, respectively, as well as third parties. Discontinued operations also include activities, mainly income taxes related to the South American businesses, that were previously included in the holding company of the South American businesses at Parent and other. As we discuss in Note 5 of the Notes to |
SEMPRA ENERGY ADJUSTED EARNINGS AND ADJUSTED EPS | |||||||||||||||||||
(Dollars in millions, except per share amounts) | |||||||||||||||||||
Pretax amount | Income tax expense (benefit)(1) | Non-controlling interests | Earnings | Diluted EPS | |||||||||||||||
Year ended December 31, 2018 | |||||||||||||||||||
Sempra Energy GAAP Earnings | $ | 924 | $ | 3.42 | |||||||||||||||
Excluded items: | |||||||||||||||||||
Gain on sale of certain Sempra Renewables assets | $ | (513 | ) | $ | 146 | $ | — | (367 | ) | (1.36 | ) | ||||||||
Impairment of investment in RBS Sempra Commodities | 65 | — | — | 65 | 0.24 | ||||||||||||||
Impairment of non-utility natural gas storage assets | 1,117 | (452 | ) | (36 | ) | 629 | 2.33 | ||||||||||||
Impairment of U.S. wind equity method investments | 200 | (55 | ) | — | 145 | 0.54 | |||||||||||||
Impacts associated with Aliso Canyon litigation | 1 | 21 | — | 22 | 0.08 | ||||||||||||||
Impact from the TCJA | — | 85 | — | 85 | 0.32 | ||||||||||||||
Sempra Energy Adjusted Earnings | $ | 1,503 | $ | 5.57 | |||||||||||||||
Weighted-average shares outstanding, diluted (thousands) | 269,852 | ||||||||||||||||||
Year ended December 31, 2017 | |||||||||||||||||||
Sempra Energy GAAP Earnings | $ | 256 | $ | 1.01 | |||||||||||||||
Excluded items: | |||||||||||||||||||
Impact from the TCJA | $ | — | $ | 870 | $ | — | 870 | 3.45 | |||||||||||
Write-off of wildfire regulatory asset | 351 | (143 | ) | — | 208 | 0.82 | |||||||||||||
Impairment of TdM assets held for sale | 71 | — | (24 | ) | 47 | 0.19 | |||||||||||||
Aliso Canyon litigation reserves | 20 | — | — | 20 | 0.08 | ||||||||||||||
Deferred income tax benefit associated with TdM | — | (8 | ) | 3 | (5 | ) | (0.02 | ) | |||||||||||
Recoveries related to 2016 permanent release of pipeline capacity | (47 | ) | 19 | — | (28 | ) | (0.11 | ) | |||||||||||
Sempra Energy Adjusted Earnings | $ | 1,368 | $ | 5.42 | |||||||||||||||
Weighted-average shares outstanding, diluted (thousands) | 252,300 | ||||||||||||||||||
Year ended December 31, 2016 | |||||||||||||||||||
Sempra Energy GAAP Earnings | $ | 1,370 | $ | 5.46 | |||||||||||||||
Excluded items: | |||||||||||||||||||
Remeasurement gain in connection with GdC acquisition | $ | (617 | ) | $ | 185 | $ | 82 | (350 | ) | (1.39 | ) | ||||||||
Gain on sale of EnergySouth | (130 | ) | 52 | — | (78 | ) | (0.31 | ) | |||||||||||
Permanent release of pipeline capacity | 206 | (83 | ) | — | 123 | 0.49 | |||||||||||||
SDG&E tax repairs adjustments related to 2016 GRC FD | 52 | (21 | ) | — | 31 | 0.12 | |||||||||||||
SoCalGas tax repairs adjustments related to 2016 GRC FD | 83 | (34 | ) | — | 49 | 0.19 | |||||||||||||
Impairment of investment in Rockies Express | 44 | (17 | ) | — | 27 | 0.11 | |||||||||||||
Impairment of TdM assets held for sale | 131 | (20 | ) | (21 | ) | 90 | 0.36 | ||||||||||||
Deferred income tax expense associated with TdM | — | 8 | (3 | ) | 5 | 0.02 | |||||||||||||
Sempra Energy Adjusted Earnings | $ | 1,267 | $ | 5.05 | |||||||||||||||
Weighted-average shares outstanding, diluted (thousands) | 251,155 |
SDG&E ADJUSTED EARNINGS | |||||||||||
(Dollars in millions) | |||||||||||
Pretax amount | Income tax expense (benefit)(1) | Earnings | |||||||||
Year ended December 31, 2017 | |||||||||||
SDG&E GAAP Earnings | $ | 407 | |||||||||
Excluded items: | |||||||||||
Impact from the TCJA | $ | — | $ | 28 | 28 | ||||||
Write-off of wildfire regulatory asset | 351 | (143 | ) | 208 |
SDG&E Adjusted Earnings | $ | 643 | |||||||||
Year ended December 31, 2016 | |||||||||||
SDG&E GAAP Earnings | $ | 570 | |||||||||
Excluded item: | |||||||||||
SDG&E tax repairs adjustments related to 2016 GRC FD | $ | 52 | $ | (21 | ) | 31 | |||||
SDG&E Adjusted Earnings | $ | 601 |
SOCALGAS ADJUSTED EARNINGS | |||||||||||
(Dollars in millions) | |||||||||||
Pretax amount | Income tax expense (benefit)(1) | Earnings | |||||||||
Year ended December 31, 2018 | |||||||||||
SoCalGas GAAP Earnings | $ | 400 | |||||||||
Excluded item: | |||||||||||
Impacts associated with Aliso Canyon litigation | $ | 1 | $ | 21 | 22 | ||||||
SoCalGas Adjusted Earnings | $ | 422 | |||||||||
Year ended December 31, 2017 | |||||||||||
SoCalGas GAAP Earnings | $ | 396 | |||||||||
Excluded items: | |||||||||||
Impact from the TCJA | $ | — | $ | 2 | 2 | ||||||
Aliso Canyon litigation reserves | 20 | — | 20 | ||||||||
SoCalGas Adjusted Earnings | $ | 418 | |||||||||
Year ended December 31, 2016 | |||||||||||
SoCalGas GAAP Earnings | $ | 349 | |||||||||
Excluded item: | |||||||||||
SoCalGas tax repairs adjustments related to 2016 GRC FD | $ | 83 | $ | (34 | ) | 49 | |||||
SoCalGas Adjusted Earnings | $ | 398 |
UTILITIES REVENUES AND COST OF SALES | UTILITIES REVENUES AND COST OF SALES | UTILITIES REVENUES AND COST OF SALES | ||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Electric revenues: | ||||||||||||||||||||||||||||
SDG&E | $ | 4,003 | $ | 3,935 | $ | 3,754 | ||||||||||||||||||||||
Sempra South American Utilities | 1,507 | 1,486 | 1,463 | |||||||||||||||||||||||||
Eliminations and adjustments | (4 | ) | (6 | ) | (6 | ) | ||||||||||||||||||||||
Total | 5,506 | 5,415 | 5,211 | |||||||||||||||||||||||||
Natural gas revenues: | Natural gas revenues: | |||||||||||||||||||||||||||
SoCalGas | 3,962 | 3,785 | 3,471 | SoCalGas | $ | 5,515 | $ | 4,748 | $ | 4,525 | ||||||||||||||||||
SDG&E | 565 | 541 | 499 | SDG&E | 838 | 694 | 658 | |||||||||||||||||||||
Sempra Mexico | 78 | 110 | 88 | |||||||||||||||||||||||||
Sempra LNG & Midstream(1) | — | — | 68 | |||||||||||||||||||||||||
Sempra Infrastructure | Sempra Infrastructure | 81 | 58 | 73 | ||||||||||||||||||||||||
Eliminations and adjustments | Eliminations and adjustments | (101) | (89) | (71) | ||||||||||||||||||||||||
Total | Total | 6,333 | 5,411 | 5,185 | ||||||||||||||||||||||||
Electric revenues: | Electric revenues: | |||||||||||||||||||||||||||
SDG&E | SDG&E | 4,666 | 4,619 | 4,267 | ||||||||||||||||||||||||
Eliminations and adjustments | (65 | ) | (75 | ) | (76 | ) | Eliminations and adjustments | (8) | (5) | (4) | ||||||||||||||||||
Total | 4,540 | 4,361 | 4,050 | Total | 4,658 | 4,614 | 4,263 | |||||||||||||||||||||
Total utilities revenues | $ | 10,046 | $ | 9,776 | $ | 9,261 | Total utilities revenues | $ | 10,991 | $ | 10,025 | $ | 9,448 | |||||||||||||||
Cost of electric fuel and purchased power: | ||||||||||||||||||||||||||||
Cost of natural gas(1): | Cost of natural gas(1): | |||||||||||||||||||||||||||
SoCalGas | SoCalGas | $ | 1,369 | $ | 783 | $ | 977 | |||||||||||||||||||||
SDG&E | $ | 1,370 | $ | 1,293 | $ | 1,187 | SDG&E | 242 | 162 | 176 | ||||||||||||||||||
Sempra South American Utilities | 965 | 988 | 1,001 | |||||||||||||||||||||||||
Sempra Infrastructure | Sempra Infrastructure | 24 | 12 | 14 | ||||||||||||||||||||||||
Eliminations and adjustments | (12 | ) | — | — | Eliminations and adjustments | (38) | (32) | (28) | ||||||||||||||||||||
Total | $ | 2,323 | $ | 2,281 | $ | 2,188 | Total | $ | 1,597 | $ | 925 | $ | 1,139 | |||||||||||||||
Cost of natural gas: | ||||||||||||||||||||||||||||
SoCalGas | $ | 1,048 | $ | 1,025 | $ | 891 | ||||||||||||||||||||||
Cost of electric fuel and purchased power(1): | Cost of electric fuel and purchased power(1): | |||||||||||||||||||||||||||
SDG&E | 152 | 164 | 127 | SDG&E | $ | 1,069 | $ | 1,191 | $ | 1,194 | ||||||||||||||||||
Sempra Mexico | 21 | 70 | 52 | |||||||||||||||||||||||||
Sempra LNG & Midstream(1) | — | — | 17 | |||||||||||||||||||||||||
Eliminations and adjustments | (13 | ) | (69 | ) | (20 | ) | Eliminations and adjustments | (59) | (4) | (6) | ||||||||||||||||||
Total | $ | 1,208 | $ | 1,190 | $ | 1,067 | Total | $ | 1,010 | $ | 1,187 | $ | 1,188 |
SEMPRA CALIFORNIA AVERAGE COST OF NATURAL GAS | |||||||||||||||||
(Dollars per thousand cubic feet) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
SoCalGas | $ | 4.53 | $ | 2.59 | $ | 3.07 | |||||||||||
SDG&E | 5.30 | 3.74 | 3.91 |
CALIFORNIA UTILITIES AVERAGE COST OF NATURAL GAS | |||||||||||
(Dollars per thousand cubic feet) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
SoCalGas | $ | 3.58 | $ | 3.44 | $ | 3.05 | |||||
SDG&E | 3.81 | 4.08 | 3.20 |
▪$767 million increase at SoCalGas, which included: ◦$586 million increase in cost of natural gas sold, which we discuss below, ◦$129 million higher CPUC-authorized revenues, ◦$81 million higher revenues from incremental and balanced capital projects, and ◦$53 million higher recovery of costs associated with |
◦$84 million decrease due to the release of a regulatory liability in 2020 related to 2016-2018 forecasting differences that are not subject to tracking in the income tax expense memorandum account, and ◦$15 million lower non-service component of net periodic benefit cost in 2021, which fully offsets in Other Income (Expense), Net; ▪$144 million increase at SDG&E, which included: ◦$80 million increase in cost of natural gas sold, which we discuss below, 66 ◦$24 million higher CPUC-authorized revenues, ◦$20 million higher revenues primarily associated with the Pipeline Safety Enhancement Plan, and ◦$15 million higher recovery of costs associated with refundable programs, which revenues are offset in O&M, offset by ◦$6 million decrease due to the release of a regulatory liability in 2020 related to 2016-2018 forecasting differences that are not subject to tracking in the income tax expense memorandum account;and ▪$23 million increase at Sempra Infrastructure primarily due to a higher residential customer rate and cost of natural gas sold. |
▪$223 million increase at SoCalGas, which included: ◦$198 million higher CPUC-authorized revenues, ◦$144 million higher recovery of costs associated with refundable programs, which revenues are offset in O&M, and ◦$84 million increase due to the release of a regulatory liability in 2020 related to 2016-2018 forecasting differences that are not subject to tracking in the income tax expense memorandum account, offset by ◦$194 million decrease in |
▪$55 million lower recoverable cost of electric fuel and purchased power primarily due to a decrease in residential demand mainly from an increase in rooftop solar adoption; offset by |
ENERGY-RELATED BUSINESSES: REVENUES AND COST OF SALES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
REVENUES | |||||||||||||||||
Sempra Infrastructure | $ | 1,916 | $ | 1,342 | $ | 1,381 | |||||||||||
Sempra Renewables | — | — | 10 | ||||||||||||||
Parent and other(1) | (50) | 3 | (10) | ||||||||||||||
Total revenues | $ | 1,866 | $ | 1,345 | $ | 1,381 | |||||||||||
COST OF SALES(2) | |||||||||||||||||
Sempra Infrastructure | $ | 608 | $ | 275 | $ | 342 | |||||||||||
Parent and other(1) | 3 | 1 | 2 | ||||||||||||||
Total cost of sales | $ | 611 | $ | 276 | $ | 344 |
ENERGY-RELATED BUSINESSES: REVENUES AND COST OF SALES | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
REVENUES | |||||||||||
Sempra South American Utilities | $ | 78 | $ | 81 | $ | 93 | |||||
Sempra Mexico | 1,298 | 1,086 | 637 | ||||||||
Sempra Renewables | 124 | 94 | 34 | ||||||||
Sempra LNG & Midstream | 472 | 540 | 440 | ||||||||
Eliminations and adjustments | (331 | ) | (370 | ) | (282 | ) | |||||
Total revenues | $ | 1,641 | $ | 1,431 | $ | 922 | |||||
COST OF SALES(1) | |||||||||||
Cost of natural gas, electric fuel and purchased power: | |||||||||||
Sempra South American Utilities | $ | 18 | $ | 20 | $ | 13 | |||||
Sempra Mexico | 354 | 252 | 200 | ||||||||
Sempra LNG & Midstream | 294 | 382 | 337 | ||||||||
Eliminations and adjustments | (311 | ) | (315 | ) | (273 | ) | |||||
Total | $ | 355 | $ | 339 | $ | 277 | |||||
Other cost of sales: | |||||||||||
Sempra South American Utilities | $ | 58 | $ | 52 | $ | 69 | |||||
Sempra Mexico | 9 | 9 | 10 | ||||||||
Sempra LNG & Midstream | 19 | (30 | ) | 251 | |||||||
Eliminations and adjustments | (8 | ) | (7 | ) | (8 | ) | |||||
Total | $ | 78 | $ | 24 | $ | 322 |
OPERATION AND MAINTENANCE | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
SDG&E(1) | $ | 1,585 | $ | 1,454 | $ | 1,175 | |||||||||||
SoCalGas | 2,180 | 2,029 | 1,780 | ||||||||||||||
Sempra Texas Utilities | 6 | — | — | ||||||||||||||
Sempra Infrastructure | 549 | 427 | 410 | ||||||||||||||
Sempra Renewables | — | — | 18 | ||||||||||||||
Parent and other(2) | 18 | 30 | 83 | ||||||||||||||
Total operation and maintenance | $ | 4,338 | $ | 3,940 | $ | 3,466 |
OPERATION AND MAINTENANCE | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017(1) | 2016(1) | |||||||||
SDG&E | $ | 1,058 | $ | 1,024 | $ | 1,062 | |||||
SoCalGas | 1,613 | 1,474 | 1,391 | ||||||||
Sempra South American Utilities | 178 | 169 | 171 | ||||||||
Sempra Mexico | 239 | 234 | 149 | ||||||||
Sempra Renewables | 89 | 73 | 54 | ||||||||
Sempra LNG & Midstream | 123 | 123 | 155 | ||||||||
Parent and other(2) | 9 | (1 | ) | (6 | ) | ||||||
Total operation and maintenance | $ | 3,309 | $ | 3,096 | $ | 2,976 |
(2) Includes eliminations of intercompany activity. |
▪$151 million increase at SoCalGas, primarily due to: ◦$98 million higher non-refundable operating costs, and ◦$53 million higher expenses associated with refundable programs, which costs incurred are recovered in revenue; ▪$131 million increase at SDG&E, primarily due to: ◦$102 million higher expenses associated with refundable programs, which costs incurred are recovered in revenue, and ◦$29 million higher non-refundable operating costs; and ▪$122 million increase at Sempra Infrastructure primarily due to: ◦$46 million higher expenses associated with the growth in the business and certain non-capitalized expenses at ECA LNG Phase 1 in 2021, which reached a final investment decision in November 2020, ◦$24 million from the renewables business, including the acquisition of ESJ in March 2021, 69 ◦$17 million from the start of commercial operations of the Veracruz and Mexico City terminals in March and July of 2021, respectively, and ◦$7 million from expected credit losses on a guarantee. |
▪$46 million lower net losses in 2021 from impacts associated with interest rate and foreign exchange instruments and foreign currency transactions primarily due to: ◦$36 million lower losses on foreign currency derivatives and cross-currency swaps as a result of fluctuation of the Mexican peso, and ◦$19 million lower foreign currency losses on a Mexican peso-denominated loan to IMG JV, which is offset in Equity Earnings, offset by ◦$11 million lower net gains in 2021 on other foreign currency transactional effects; ▪$35 million lower non-service component of net periodic benefit cost in 2021; ▪$9 million higher investment gains in 2021 on dedicated assets in support of our executive retirement and deferred compensation plans; ▪$7 million higher AFUDC equity at SoCalGas; ▪$6 million fine at SDG&E in 2020 related to the Energy Efficiency Program inquiry; and 70 ▪$5 million reversal of penalties in 2021 related to the SoCalGas billing practices OII; offset by ▪$8 million total decrease in regulatory interest at SDG&E and SoCalGas due to the release of a regulatory liability in 2020 related to 2016-2018 forecasting differences that are not subject to tracking in the income tax expense memorandum account. Other expense, net, was $48 million in 2020 compared to |
INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Sempra: | |||||||||||||||||
Income tax expense from continuing operations | $ | 99 | $ | 249 | $ | 315 | |||||||||||
Income from continuing operations before income taxes and equity earnings | $ | 219 | $ | 1,489 | $ | 1,734 | |||||||||||
Equity earnings, before income tax(1) | 614 | 294 | 30 | ||||||||||||||
Pretax income | $ | 833 | $ | 1,783 | $ | 1,764 | |||||||||||
Effective income tax rate | 12 | % | 14 | % | 18 | % | |||||||||||
SDG&E: | |||||||||||||||||
Income tax expense | $ | 201 | $ | 190 | $ | 171 | |||||||||||
Income before income taxes | $ | 1,020 | $ | 1,014 | $ | 945 | |||||||||||
Effective income tax rate | 20 | % | 19 | % | 18 | % | |||||||||||
SoCalGas: | |||||||||||||||||
Income tax (benefit) expense | $ | (310) | $ | 96 | $ | 120 | |||||||||||
(Loss) income before income taxes | $ | (736) | $ | 601 | $ | 762 | |||||||||||
Effective income tax rate | 42 | % | 16 | % | 16 | % |
INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Sempra Energy Consolidated: | |||||||||||
Income tax expense | $ | 96 | $ | 1,276 | $ | 389 | |||||
Income before income taxes and equity earnings of unconsolidated entities | $ | 1,046 | $ | 1,551 | $ | 1,824 | |||||
Equity (losses) earnings, before income tax(1) | (236 | ) | 34 | 6 | |||||||
Pretax income | $ | 810 | $ | 1,585 | $ | 1,830 | |||||
Effective income tax rate | 12 | % | 81 | % | 21 | % | |||||
SDG&E: | |||||||||||
Income tax expense | $ | 173 | $ | 155 | $ | 280 | |||||
Income before income taxes | $ | 849 | $ | 576 | $ | 845 | |||||
Effective income tax rate | 20 | % | 27 | % | 33 | % | |||||
SoCalGas: | |||||||||||
Income tax expense | $ | 92 | $ | 160 | $ | 143 | |||||
Income before income taxes | $ | 493 | $ | 557 | $ | 493 | |||||
Effective income tax rate | 19 | % | 29 | % | 29 | % |
(1) | We discuss how we recognize equity earnings in Note 6 |
▪$445 million income tax benefit in 2021 compared to $74 million income tax benefit in 2020 associated with charges related to civil litigation and regulatory matters pertaining to the Leak; and ▪higher income tax benefits in 2021 from flow-through items. |
▪$487 million higher equity earnings at Sempra Infrastructure, which included: ◦$367 million higher equity earnings from Cameron LNG JV primarily due to the three-train liquefaction project achieving full commercial operations in August 2020, ◦$94 million higher equity earnings at IMG JV, primarily due to higher revenues from the start of commercial operations of the Sur de Texas-Tuxpan marine pipeline and foreign currency effects, including $42 million foreign currency gains in 2020 compared to $30 million foreign currency losses in 2019 on IMG JV’s Mexican peso-denominated loans from its JV owners, which is fully offset in Other (Expense) Income, Net, offset by lower AFUDC equity, and ◦$23 million higher equity earnings at TAG JV primarily due to lower income tax expense in 2020; and 73 ▪$51 million higher equity earnings at Oncor Holdings primarily due to higher revenues from rate updates and customer growth, the acquisition of InfraREIT in May 2019 and higher AFUDC equity, offset by unfavorable weather and increased operating costs; offset by ▪$100 million equity losses in 2020 related to our investment in RBS Sempra Commodities to settle pending VAT matters and related legal costs. |
TRANSACTIONAL GAINS (LOSSES) FROM FOREIGN CURRENCY AND INFLATION | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Total reported amounts | Transactional gains (losses) included in reported amounts | ||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
Other income, net(1) | $ | 72 | $ | 233 | $ | 138 | $ | — | $ | 14 | $ | (33 | ) | ||||||||||
Income tax expense | (96 | ) | (1,276 | ) | (389 | ) | (20 | ) | (62 | ) | 38 | ||||||||||||
Equity earnings | 176 | 76 | 84 | (15 | ) | 14 | 23 | ||||||||||||||||
Net income | 1,126 | 351 | 1,519 | (35 | ) | (53 | ) | 39 | |||||||||||||||
Earnings attributable to common shares | 924 | 256 | 1,370 | (21 | ) | (25 | ) | 25 |
TRANSACTIONAL (LOSSES) GAINS FROM FOREIGN CURRENCY AND INFLATION EFFECTS AND ASSOCIATED DERIVATIVES | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Total reported amounts | Transactional (losses) gains included in reported amounts | ||||||||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Other income (expense), net | $ | 58 | (48) | 77 | $ | (46) | (92) | 55 | |||||||||||||||||||||||||||
Income tax expense | (99) | (249) | (315) | (4) | 59 | (77) | |||||||||||||||||||||||||||||
Equity earnings | 1,343 | 1,015 | 580 | 2 | 41 | (49) | |||||||||||||||||||||||||||||
Income from continuing operations, net of income tax | 1,463 | 2,255 | 1,999 | (48) | 8 | (71) | |||||||||||||||||||||||||||||
Income from discontinued operations, net of income tax | — | 1,850 | 363 | — | 15 | 2 | |||||||||||||||||||||||||||||
Earnings attributable to noncontrolling interests | (145) | (172) | (164) | 4 | (24) | 30 | |||||||||||||||||||||||||||||
Earnings attributable to common shares | 1,254 | 3,764 | 2,055 | (44) | (1) | (39) |
AVAILABLE FUNDS AT DECEMBER 31, 2018 | |||||||||||
(Dollars in millions) | |||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||
Unrestricted cash and cash equivalents(1) | $ | 190 | $ | 8 | $ | 18 | |||||
Available unused credit(2)(3) | 4,219 | 453 | 453 |
AVAILABLE FUNDS AT DECEMBER 31, 2021 | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Sempra | SDG&E | SoCalGas | |||||||||||||||
Unrestricted cash and cash equivalents(1) | $ | 559 | $ | 25 | $ | 37 | |||||||||||
Available unused credit(2) | 6,909 | 1,099 | 365 |
COMMERCIAL PAPER STATISTICS | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Sempra | SDG&E | SoCalGas | |||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Amount outstanding at period end | $ | 2,026 | $ | 113 | $ | 2,334 | $ | 401 | $ | — | $ | 80 | $ | 385 | $ | 113 | $ | 630 | |||||||||||
Weighted-average interest rate at period end | 0.34 | % | 0.14 | % | 2.06 | % | 0.47 | % | — | % | 1.97 | % | 0.21 | % | 0.14 | % | 1.86 | % | |||||||||||
Daily weighted-average outstanding balance | $ | 1,107 | $ | 649 | $ | 2,246 | $ | 168 | $ | 47 | $ | 126 | $ | 118 | $ | 30 | $ | 196 | |||||||||||
Daily weighted-average yield | 0.16 | % | 0.75 | % | 2.53 | % | 0.12 | % | 0.45 | % | 1.50 | % | 0.07 | % | 0.17 | % | 1.95 | % | |||||||||||
Maximum daily amount outstanding | $ | 2,824 | $ | 2,495 | $ | 3,243 | $ | 473 | $ | 263 | $ | 417 | $ | 580 | $ | 635 | $ | 642 |
COMMERCIAL PAPER STATISTICS | |||||||||||
(Dollars in millions) | |||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||
Amount outstanding at December 31, 2018 | $ | 1,216 | $ | 291 | $ | 256 | |||||
Weighted-average interest rate at December 31, 2018 | 2.786 | % | 2.968 | % | 2.581 | % | |||||
Maximum month-end amount outstanding during 2018(1) | $ | 3,913 | $ | 458 | $ | 345 | |||||
Monthly weighted-average amount outstanding during 2018 | $ | 2,556 | $ | 235 | $ | 179 | |||||
Monthly weighted-average interest rate during 2018 | 2.358 | % | 1.969 | % | 1.987 | % |
LONG-TERM DEBT ISSUANCES AND PAYMENTS | ||||||||||||||
(Dollars in millions) | ||||||||||||||
Issuances: | Amount at issuance | Maturity | ||||||||||||
Sempra 4.125% junior subordinated notes | $ | 1,000 | 2052 | |||||||||||
SDG&E 2.95% green first mortgage bonds | 750 | 2051 | ||||||||||||
Sempra Infrastructure variable rate notes | 324 | 2025 | ||||||||||||
Payments: | Payments | Maturity | ||||||||||||
Sempra 2.875% notes | $ | 500 | 2022 | |||||||||||
Sempra 2.9% notes | 500 | 2023 | ||||||||||||
Sempra 4.05% notes | 500 | 2023 | ||||||||||||
Sempra 3.55% notes | 500 | 2024 | ||||||||||||
Sempra 3.75% notes | 350 | 2025 | ||||||||||||
Sempra variable rate notes | 850 | 2021 | ||||||||||||
SDG&E 3% first mortgage bonds | 350 | 2021 | ||||||||||||
SDG&E 1.914% amortizing first mortgage bonds | 36 | 2021 | ||||||||||||
SDG&E variable rate 364-day term loan | 200 | 2021 | ||||||||||||
Sempra Infrastructure amortizing variable rate notes | 45 | 2021 | ||||||||||||
Sempra Infrastructure variable rate loan | 183 | 2033 | ||||||||||||
Sempra Infrastructure amortizing fixed and variable rate bank loans | 396 | 2032 |
CREDIT RATINGS AT DECEMBER 31, 2021 | |||||||||||||||||
Sempra | SDG&E | SoCalGas | |||||||||||||||
Moody’s | Baa2 with a stable outlook | A3 with a stable outlook | A2 with a stable outlook | ||||||||||||||
S&P | BBB+ with a negative outlook | BBB+ with a stable outlook | A with a negative outlook | ||||||||||||||
Fitch | BBB+ with a stable outlook | BBB+ with a stable outlook | A with a stable outlook |
CASH PROVIDED BY OPERATING ACTIVITIES | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
2018 | 2018 change | 2017 | 2017 change | 2016 | |||||||||||||||||||||||||
Sempra Energy Consolidated | $ | 3,447 | $ | (178 | ) | (5 | )% | $ | 3,625 | $ | 1,314 | 57 | % | $ | 2,311 | ||||||||||||||
SDG&E | 1,584 | 37 | 2 | 1,547 | 224 | 17 | 1,323 | ||||||||||||||||||||||
SoCalGas | 1,013 | (293 | ) | (22 | ) | 1,306 | 635 | 95 | 671 |
CASH USED IN INVESTING ACTIVITIES | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
2018 | 2018 change | 2017 | 2017 change | 2016 | |||||||||||||||||||||||||
Sempra Energy Consolidated | $ | (12,557 | ) | $ | 7,857 | 167 | % | $ | (4,700 | ) | $ | (135 | ) | (3 | )% | $ | (4,835 | ) | |||||||||||
SDG&E | (1,542 | ) | 27 | 2 | (1,515 | ) | 191 | 14 | (1,324 | ) | |||||||||||||||||||
SoCalGas | (1,531 | ) | 168 | 12 | (1,363 | ) | 94 | 7 | (1,269 | ) |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Years ended December 31, | Sempra | SDG&E | SoCalGas | |||||||||||||||||
2021 | $ | 3,842 | $ | 1,376 | $ | 1,033 | ||||||||||||||
2020 | 2,591 | 1,389 | 1,526 | |||||||||||||||||
Change | $ | 1,251 | $ | (13) | $ | (493) | ||||||||||||||
Net increase in Reserve for Aliso Canyon Costs, current and noncurrent, due to $1,083 higher accruals and $14 lower payments | $ | 1,097 | $ | 1,097 | ||||||||||||||||
Higher distributions received from Cameron LNG JV | 258 | |||||||||||||||||||
Net decrease in Insurance Receivable for Aliso Canyon primarily due to $193 lower accruals and $2 lower insurance proceeds | 191 | 191 | ||||||||||||||||||
Change in accounts payable | 189 | $ | (24) | 117 | ||||||||||||||||
Release of a regulatory liability in 2020 related to 2016-2018 income tax expense forecasting differences | 175 | 86 | 89 | |||||||||||||||||
Change in bad debt regulatory assets | 101 | 63 | 38 | |||||||||||||||||
Change in income taxes receivable/payable, net | 56 | (149) | (232) | |||||||||||||||||
Change in net undercollected regulatory balancing accounts (including long-term amounts in regulatory assets) | (182) | (174) | (8) | |||||||||||||||||
Increase in purchases of GHG allowances | (229) | (31) | (197) | |||||||||||||||||
Change in net margin posted at Sempra Infrastructure | (266) | |||||||||||||||||||
Change in accounts receivable | (271) | 29 | (282) | |||||||||||||||||
(Lower) higher net income (loss), adjusted for noncash items included in earnings | (979) | 160 | (1,291) | |||||||||||||||||
Other | 60 | 27 | (15) | |||||||||||||||||
Change in net cash flows from discontinued operations primarily due to $1,161 income taxes paid related to the sale of our South American businesses | 1,051 | |||||||||||||||||||
$ | 1,251 | $ | (13) | $ | (493) | |||||||||||||||
2020 | $ | 2,591 | $ | 1,389 | $ | 1,526 | ||||||||||||||
2019 | 3,088 | 1,090 | 868 | |||||||||||||||||
Change | $ | (497) | $ | 299 | $ | 658 | ||||||||||||||
Change in intercompany activities with discontinued operations (including $403 dividends received from our South American businesses in 2019) | $ | (378) | ||||||||||||||||||
Net increase in Insurance Receivable for Aliso Canyon primarily due to $132 higher accruals and $94 lower insurance proceeds received | (228) | $ | (228) | |||||||||||||||||
Change in accounts receivable | (224) | $ | (119) | (28) | ||||||||||||||||
Release of a regulatory liability in 2020 related to 2016-2018 income tax expense forecasting differences | (175) | (86) | (89) | |||||||||||||||||
Change in bad debt regulatory assets | (84) | (51) | (33) | |||||||||||||||||
TCJA revenue amortization | (82) | (44) | (38) | |||||||||||||||||
Increase in prepaid insurance premiums | (24) | |||||||||||||||||||
Net increase in Reserves for Aliso Canyon Costs, current and noncurrent, due to $450 higher accruals and $129 lower payments | 579 | 579 | ||||||||||||||||||
Distributions of earnings from Cameron LNG JV in 2020 | 365 | |||||||||||||||||||
Change in net undercollected regulatory balancing accounts (including long-term amounts in regulatory assets) | 352 | 29 | 323 | |||||||||||||||||
SDG&E’s initial shareholder contribution to the Wildfire Fund in September 2019 | 323 | 323 | ||||||||||||||||||
Decrease in funding for the Rabbi Trust | 141 | |||||||||||||||||||
Change in net margin posted at Sempra Infrastructure | 109 | |||||||||||||||||||
Change in income taxes receivable/payable, net | 72 | 255 | 345 | |||||||||||||||||
Change in accounts payable | 61 | 71 | ||||||||||||||||||
Higher distributions of earnings from Oncor Holdings | 39 | |||||||||||||||||||
Higher (lower) net income, adjusted for noncash items included in earnings | 39 | 35 | (258) | |||||||||||||||||
Other | 35 | (19) | 14 | |||||||||||||||||
Change in net cash flows from discontinued operations primarily due to $1,161 income taxes paid related to the sale of our South American businesses | (1,441) | |||||||||||||||||||
$ | (497) | $ | 299 | $ | 658 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Years ended December 31, | Sempra | SDG&E | SoCalGas | |||||||||||||||||
2021 | $ | (5,508) | $ | (2,213) | $ | (1,984) | ||||||||||||||
2020 | 553 | (1,934) | (1,843) | |||||||||||||||||
Change | $ | (6,061) | $ | (279) | $ | (141) | ||||||||||||||
Distribution from Cameron LNG JV | $ | (753) | ||||||||||||||||||
Increase in capital expenditures | (339) | $ | (278) | $ | (141) | |||||||||||||||
Advance to note receivable with KKR | (305) | |||||||||||||||||||
Acquisition of 50% interest in ESJ in March 2021 for $79, net of $14 cash and cash equivalents acquired | (65) | |||||||||||||||||||
Higher proceeds from sale of assets | 19 | |||||||||||||||||||
Higher repayments of advances from unconsolidated affiliates | 31 | |||||||||||||||||||
Lower contributions to Oncor Holdings | 66 | |||||||||||||||||||
Lower advances to unconsolidated affiliates | 84 | |||||||||||||||||||
Distribution from Oncor Holdings 2021 | 361 | |||||||||||||||||||
Other | 11 | (1) | ||||||||||||||||||
Change in net cash flows from discontinued operations mainly due to $5,766 proceeds, net of transaction costs, offset by $502 cash sold from the sale of our South American businesses | (5,171) | |||||||||||||||||||
$ | (6,061) | $ | (279) | $ | (141) | |||||||||||||||
2020 | $ | 553 | $ | (1,934) | $ | (1,843) | ||||||||||||||
2019 | (4,593) | (1,522) | (1,438) | |||||||||||||||||
Change | $ | 5,146 | $ | (412) | $ | (405) | ||||||||||||||
Contributions to Oncor Holdings to fund Oncor’s purchase of InfraREIT in May 2019 | $ | 1,067 | ||||||||||||||||||
Distribution from Cameron LNG JV in 2020 | 753 | |||||||||||||||||||
Contributions to Peruvian businesses in discontinued operations in 2019 | 583 | |||||||||||||||||||
Contributions to Chilean businesses in discontinued operations in 2019 | 394 | |||||||||||||||||||
Acquisition of investment in Sharyland Holdings in May 2019 | 95 | |||||||||||||||||||
Increase in capital expenditures | (968) | $ | (420) | $ | (404) | |||||||||||||||
Dividends received from Peruvian businesses in discontinued operations in 2019 | (583) | |||||||||||||||||||
Net proceeds from the April 2019 sale of Sempra Renewables’ wind assets and investments | (569) | |||||||||||||||||||
Dividends received from Chilean businesses in discontinued operations in 2019 | (394) | |||||||||||||||||||
Net proceeds from the February 2019 sale of Sempra Infrastructure’s non-utility natural gas storage assets | (322) | |||||||||||||||||||
Loan to ESJ JV in 2020 | (85) | |||||||||||||||||||
Other | (8) | 8 | (1) | |||||||||||||||||
Change in net cash flows from discontinued operations mainly due to $5,766 proceeds, net of transaction costs, offset by $502 cash sold from the sale of our South American businesses | 5,183 | |||||||||||||||||||
$ | 5,146 | $ | (412) | $ | (405) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Years ended December 31, | Sempra | SDG&E | SoCalGas | |||||||||||||||||
2021 | $ | 1,260 | $ | 600 | $ | 984 | ||||||||||||||
2020 | (2,373) | 797 | 311 | |||||||||||||||||
Change | $ | 3,633 | $ | (197) | $ | 673 | ||||||||||||||
Change in borrowings and repayments of short-term debt, net | $ | 3,672 | $ | 481 | $ | 789 | ||||||||||||||
Proceeds from sale of NCI in KKR in 2021, net of $170 of transaction costs | 3,199 | |||||||||||||||||||
Lower payments on short-term debt greater than 90 days | 2,125 | |||||||||||||||||||
Lower repurchases of common stock | 227 | |||||||||||||||||||
Make-whole premium payments related to early redemptions of debt | (121) | |||||||||||||||||||
(Higher) lower common dividends paid | (157) | (100) | 25 | |||||||||||||||||
(Lower) higher issuances of short-term debt with maturities greater than 90 days | (655) | 375 | ||||||||||||||||||
Net proceeds from issuance of series C preferred stock in 2020 | (891) | |||||||||||||||||||
Lower issuances of long-term debt | (1,623) | (853) | (949) | |||||||||||||||||
Higher payments on long-term debt and finance leases | (1,750) | (103) | ||||||||||||||||||
Equity contribution from Sempra in connection with accruals related to the Leak | 800 | |||||||||||||||||||
Other | 8 | 3 | 8 | |||||||||||||||||
Change in net cash flows from discontinued operations primarily from a $250 intercompany loan and $165 of net issuances of short-term debt in 2020 | (401) | |||||||||||||||||||
$ | 3,633 | $ | (197) | $ | 673 | |||||||||||||||
2020 | $ | (2,373) | $ | 797 | $ | 311 | ||||||||||||||
2019 | 1,475 | 405 | 562 | |||||||||||||||||
Change | $ | (3,848) | $ | 392 | $ | (251) | ||||||||||||||
Change in borrowings and repayments of short-term debt, net | $ | (2,415) | $ | 131 | $ | (891) | ||||||||||||||
Net proceeds from issuances of common stock from settlement of forward sale agreements in 2019 | (1,794) | |||||||||||||||||||
Higher payments for commercial paper and other short-term debt with maturities greater than 90 days | (1,341) | |||||||||||||||||||
Higher payments on long-term debt and finance leases | (856) | (236) | (6) | |||||||||||||||||
Repurchases of common stock under ASR program in 2020 | (500) | |||||||||||||||||||
Higher repurchases of IEnova stock held by NCI | (221) | |||||||||||||||||||
Lower issuances of short-term debt with maturities greater than 90 days | (213) | |||||||||||||||||||
(Higher) lower common dividends paid | (181) | (200) | 50 | |||||||||||||||||
Capital contribution from OMEC LLC in 2019 to repay OMEC’s loan | (175) | (175) | ||||||||||||||||||
Lower advances from unconsolidated affiliates | (91) | |||||||||||||||||||
Equity contribution from Sempra to fund initial shareholder contribution to the Wildfire Fund in September 2019 | (322) | |||||||||||||||||||
Higher issuances of long-term debt | 1,968 | 1,198 | 600 | |||||||||||||||||
Net proceeds from issuance of series C preferred stock | 891 | |||||||||||||||||||
Change in intercompany activities with discontinued operations primarily related to intercompany loans in 2019 | 266 | |||||||||||||||||||
Other | 21 | (4) | (4) | |||||||||||||||||
Change in net cash flows from discontinued operations primarily from a $250 intercompany loan and $60 net increase in short-term debt in 2020 and $977 equity contribution from Sempra, offset by $1,380 common dividends paid in 2019 | 793 | |||||||||||||||||||
$ | (3,848) | $ | 392 | $ | (251) |
EXPENDITURES FOR PP&E | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
SDG&E: | |||||||||||
Improvements to electric and natural gas distribution systems, including certain pipeline safety | |||||||||||
and generation systems | $ | 1,020 | $ | 966 | $ | 727 | |||||
Improvements to electric transmission systems | 496 | 527 | 513 | ||||||||
PSEP | 16 | 48 | 121 | ||||||||
Electric generation plants and equipment | 10 | 14 | 38 | ||||||||
SoCalGas: | |||||||||||
Improvements to natural gas distribution, transmission and storage systems, and for certain | |||||||||||
pipeline safety | 1,359 | 1,145 | 932 | ||||||||
PSEP | 168 | 194 | 292 | ||||||||
Advanced metering infrastructure | 11 | 28 | 95 | ||||||||
Sempra South American Utilities: | |||||||||||
Improvements to electric transmission and distribution systems and generation | |||||||||||
projects in Peru | 157 | 151 | 134 | ||||||||
Improvements to electric transmission and distribution infrastructure in Chile | 83 | 93 | 60 | ||||||||
Sempra Mexico: | |||||||||||
Construction of renewables projects | 172 | 6 | — | ||||||||
Construction of natural gas pipeline projects and other capital expenditures | 113 | 242 | 330 | ||||||||
Construction of liquid fuels terminal | 83 | — | — | ||||||||
Sempra Renewables: | |||||||||||
Construction of solar projects | 45 | 364 | 637 | ||||||||
Construction of wind projects | 6 | 133 | 198 | ||||||||
Sempra LNG & Midstream: | |||||||||||
LNG liquefaction development costs and Cameron Interstate Pipeline expansion | 28 | 18 | 98 | ||||||||
Other | 3 | 2 | 19 | ||||||||
Parent and other | 14 | 18 | 20 | ||||||||
Total | $ | 3,784 | $ | 3,949 | $ | 4,214 |
EXPENDITURES FOR PP&E | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
SDG&E | $ | 2,220 | $ | 1,942 | $ | 1,522 | |||||||||||
SoCalGas | 1,984 | 1,843 | 1,439 | ||||||||||||||
Sempra Infrastructure | 802 | 879 | 736 | ||||||||||||||
Sempra Renewables | — | — | 2 | ||||||||||||||
Parent and other | 9 | 12 | 9 | ||||||||||||||
Total | $ | 5,015 | $ | 4,676 | $ | 3,708 |
EXPENDITURES FOR INVESTMENTS AND ACQUISITIONS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Sempra Texas Utilities | $ | 566 | $ | 648 | $ | 1,685 | |||||||||||
Sempra Infrastructure | 67 | 4 | 110 | ||||||||||||||
Parent and other | — | — | 2 | ||||||||||||||
Total | $ | 633 | $ | 652 | $ | 1,797 |
EXPENDITURES FOR INVESTMENTS AND ACQUISITIONS(1) | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Sempra Texas Utility: | |||||||||||
Oncor Holdings – acquisition | $ | 9,227 | $ | — | $ | — | |||||
Oncor Holdings – capital contributions | 230 | — | — | ||||||||
Sempra South American Utilities: | |||||||||||
CTNG – acquisition | 208 | — | — | ||||||||
Eletrans | — | 1 | — | ||||||||
Sempra Mexico: | |||||||||||
DEN | — | 147 | — | ||||||||
IEnova Pipelines | — | — | 1,078 | ||||||||
IMG | 80 | 72 | 100 | ||||||||
Ventika | — | — | 242 | ||||||||
Manzanillo | 16 | — | — | ||||||||
Other | 4 | — | — | ||||||||
Sempra Renewables: | |||||||||||
Expenditures for wind projects | 5 | — | 21 | ||||||||
Other | — | — | 15 | ||||||||
Sempra LNG & Midstream: | |||||||||||
Cameron LNG JV(2) | 275 | 48 | 47 | ||||||||
Parent and other | 331 | 2 | 1 | ||||||||
Total | $ | 10,376 | $ | 270 | $ | 1,504 |
FUTURE CONSTRUCTION EXPENDITURES AND INVESTMENTS | |||
(Dollars in millions) | |||
Year ended December 31, 2019 | |||
SDG&E: | |||
Improvements to electric and natural gas distribution systems, including certain pipeline safety | |||
and generation systems | $ | 1,250 | |
Improvements to electric transmission systems | 350 | ||
SoCalGas: | |||
Improvements to natural gas distribution, transmission and storage systems, and for certain | |||
pipeline safety | 1,250 | ||
PSEP | 250 | ||
Sempra Texas Utility: | |||
Oncor Holdings – capital contributions | 1,570 | ||
Acquisition of 50-percent interest in Sharyland Holdings, LP. | 110 | ||
Sempra South American Utilities: | |||
Improvements to electric transmission and distribution systems and generation | |||
projects in Peru | 140 | ||
Improvements to electric transmission and distribution infrastructure in Chile | 170 | ||
Sempra Mexico: | |||
Construction of liquid fuels terminals | 410 | ||
Construction of natural gas pipeline projects and other capital expenditures | 180 | ||
Construction of renewables projects | 160 | ||
Sempra LNG & Midstream: | |||
LNG liquefaction development costs | 250 | ||
Total | $ | 6,090 |
FUTURE CAPITAL EXPENDITURES AND INVESTMENTS | |||||
(Dollars in millions) | |||||
Year ended December 31, 2022 | |||||
SDG&E | $ | 2,700 | |||
SoCalGas | 2,100 | ||||
Sempra Texas Utilities | 400 | ||||
Sempra Infrastructure | 1,000 | ||||
Total | $ | 6,200 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
2018 | 2018 change | 2017 | 2017 change | 2016 | |||||||||||||||||||
Sempra Energy Consolidated | $ | 9,006 | $ | 7,999 | $ | 1,007 | $ | (1,495 | ) | $ | 2,502 | ||||||||||||
SDG&E | (34 | ) | (11 | ) | (23 | ) | (1 | ) | (22 | ) | |||||||||||||
SoCalGas | 528 | 475 | 53 | (499 | ) | 552 |
LONG-TERM DEBT(1) | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Weighted-average at December 31, 2018 | |||||||||||||||
December 31, | Maturity | Interest | |||||||||||||
2018 | 2017 | 2016 | (in years) | rate | |||||||||||
Sempra Energy Consolidated | $ | 23,284 | $ | 17,872 | $ | 15,342 | 12.0 | 4.02 | % | ||||||
SDG&E | 6,219 | 5,555 | 4,849 | 16.0 | 4.32 | ||||||||||
SoCalGas | 3,430 | 2,986 | 2,982 | 18.1 | 3.89 |
ISSUANCES OF LONG-TERM DEBT | |||||
(Dollars in millions) | |||||
Amount at issuance | Maturity | ||||
2018: | |||||
Sempra Energy variable rate notes | $ | 500 | 2019 | ||
Sempra Energy 2.4% notes | 500 | 2020 | |||
Sempra Energy variable rate notes | 700 | 2021 | |||
Sempra Energy 2.9% notes | 500 | 2023 | |||
Sempra Energy 3.4% notes | 1,000 | 2028 | |||
Sempra Energy 3.8% notes | 1,000 | 2038 | |||
Sempra Energy 4% notes | 800 | 2048 | |||
SDG&E – OMEC LLC variable-rate loan | 220 | 2024 | |||
SDG&E 4.15% first mortgage bonds | 400 | 2048 | |||
SoCalGas 4.125% first mortgage bonds | 400 | 2048 | |||
SoCalGas 4.3% first mortgage bonds | 550 | 2049 | |||
Luz del Sur 7% corporate bonds | 50 | 2028 | |||
Luz del Sur 4.3%-5.7% bank loans | 107 | 2020-2021 | |||
2017: | |||||
Sempra Energy variable rate notes | 850 | 2021 | |||
Sempra Energy 3.25% notes | 750 | 2027 | |||
SDG&E 3.75% first mortgage bonds | 400 | 2047 | |||
Luz del Sur 6.375% corporate bonds | 50 | 2023 | |||
Luz del Sur 5.9375% corporate bonds | 50 | 2027 | |||
Sempra Mexico 4.875% notes | 540 | 2048 | |||
Sempra Mexico 3.75% notes | 300 | 2028 | |||
2016: | |||||
Sempra Energy 1.625% notes | 500 | 2019 | |||
SDG&E 2.50% first mortgage bonds | 500 | 2026 | |||
SoCalGas 2.60% first mortgage bonds | 500 | 2026 | |||
Luz del Sur 6.50% corporate bonds | 50 | 2025 |
WEIGHTED-AVERAGE RATE BASE | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
SDG&E | $ | 12,527 | $ | 11,109 | $ | 10,467 | |||||||||||
SoCalGas | $ | 9,371 | $ | 8,228 | $ | 7,401 |
PAYMENTS ON LONG-TERM DEBT | |||||
(Dollars in millions) | |||||
Payments | Maturity | ||||
2018: | |||||
Sempra Energy 6.15% notes | $ | 500 | 2018 | ||
SDG&E – OMEC LLC variable-rate loan | 295 | 2019 | |||
SDG&E 1.65% first mortgage bonds | 161 | 2018 | |||
SDG&E 1.914% amortizing first mortgage bonds | 36 | 2022 | |||
SoCalGas 5.45% first mortgage bonds | 250 | 2018 | |||
SoCalGas 1.55% first mortgage bonds | 250 | 2018 | |||
Luz del Sur 5.18%-6.41% bank loans | 52 | 2018 | |||
Sempra Mexico variable-rate notes | 69 | 2018 | |||
Sempra Mexico amortizing variable-rate notes | 42 | 2026 | |||
Sempra Mexico amortizing fixed and variable-rate bank loans | 21 | 2024-2032 | |||
2017: | |||||
Sempra Energy 2.3% notes | 600 | 2017 | |||
SDG&E variable-rate first mortgage bonds | 140 | 2017 | |||
SDG&E 1.914% amortizing first mortgage bonds | 36 | 2022 | |||
Luz del Sur 5.81%-5.97% corporate bonds | 43 | 2017 | |||
Sempra Mexico amortizing fixed and variable-rate bank loans | 52 | 2024-2032 | |||
2016: | |||||
Sempra Energy 6.5% notes | 750 | 2016 | |||
SDG&E 5% industrial development revenue bonds | 105 | 2027 | |||
SDG&E 1.914% amortizing first mortgage bonds | 35 | 2022 | |||
Luz del Sur 5.05%-6% bank loans | 62 | 2016 |
▪ | ▪$70.11 in 2020 ▪$60.58 in 2019 |
TOTAL CAPITALIZATION AND DEBT-TO-CAPITALIZATION RATIOS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Sempra | SDG&E | SoCalGas | |||||||||||||||
December 31, 2021 | |||||||||||||||||
Total capitalization | $ | 52,064 | $ | 16,655 | $ | 10,611 | |||||||||||
Debt-to-capitalization ratio | 47 | % | 50 | % | 49 | % | |||||||||||
December 31, 2020 | |||||||||||||||||
Total capitalization | $ | 49,140 | $ | 15,207 | $ | 10,030 | |||||||||||
Debt-to-capitalization ratio | 49 | % | 49 | % | 49 | % | |||||||||||
December 31, 2019 | |||||||||||||||||
Total capitalization | $ | 47,621 | $ | 13,542 | $ | 9,172 | |||||||||||
Debt-to-capitalization ratio | 54 | % | 48 | % | 48 | % |
TOTAL CAPITALIZATION AND DEBT-TO-CAPITALIZATION RATIOS | |||||||||||
(Dollars in millions) | |||||||||||
Sempra Energy | |||||||||||
Consolidated(1) | SDG&E(1) | SoCalGas | |||||||||
December 31, 2018 | |||||||||||
Total capitalization | $ | 44,611 | $ | 12,625 | $ | 7,944 | |||||
Debt-to-capitalization ratio | 57 | % | 52 | % | 46 | % | |||||
December 31, 2017 | |||||||||||
Total capitalization | $ | 34,552 | $ | 11,434 | $ | 7,009 | |||||
Debt-to-capitalization ratio | 56 | % | 51 | % | 44 | % |
PRINCIPAL CONTRACTUAL COMMITMENTS – SEMPRA ENERGY CONSOLIDATED | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
2019 | 2020 and 2021 | 2022 and 2023 | Thereafter | Total | |||||||||||||||
Long-term debt | $ | 1,654 | $ | 3,744 | $ | 2,503 | $ | 14,166 | $ | 22,067 | |||||||||
Interest on long-term debt(1) | 846 | 1,536 | 1,357 | 7,833 | 11,572 | ||||||||||||||
Operating leases | 91 | 135 | 121 | 303 | 650 | ||||||||||||||
Capital leases(2) | 21 | 39 | 52 | 1,185 | 1,297 | ||||||||||||||
Purchased-power contracts | 654 | 1,260 | 1,141 | 5,185 | 8,240 | ||||||||||||||
Natural gas contracts | 263 | 329 | 148 | 280 | 1,020 | ||||||||||||||
LNG contract(3) | 289 | 740 | 758 | 2,475 | 4,262 | ||||||||||||||
Construction commitments | 396 | 129 | 46 | 115 | 686 | ||||||||||||||
Build-to-suit lease | 10 | 22 | 22 | 217 | 271 | ||||||||||||||
SONGS decommissioning | 90 | 125 | 145 | 266 | 626 | ||||||||||||||
Other asset retirement obligations | 96 | 151 | 158 | 1,956 | 2,361 | ||||||||||||||
Sunrise Powerlink wildfire mitigation fund | 3 | 6 | 6 | 105 | 120 | ||||||||||||||
Pension and other postretirement benefit | |||||||||||||||||||
obligations(4) | 238 | 564 | 561 | 923 | 2,286 | ||||||||||||||
Environmental commitments(5) | 14 | 22 | 2 | 22 | 60 | ||||||||||||||
Other | 75 | 50 | 26 | 107 | 258 | ||||||||||||||
Total | $ | 4,740 | $ | 8,852 | $ | 7,046 | $ | 35,138 | $ | 55,776 |
PRINCIPAL CONTRACTUAL COMMITMENTS – SDG&E | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
2019 | 2020 and 2021 | 2022 and 2023 | Thereafter | Total | |||||||||||||||
Long-term debt | $ | 64 | $ | 496 | $ | 562 | $ | 3,874 | $ | 4,996 | |||||||||
Interest on long-term debt(1) | 213 | 416 | 382 | 2,579 | 3,590 | ||||||||||||||
Operating leases | 25 | 48 | 42 | 55 | 170 | ||||||||||||||
Capital leases(2) | 17 | 38 | 52 | 1,181 | 1,288 | ||||||||||||||
Purchased-power contracts | 527 | 1,020 | 947 | 5,026 | 7,520 | ||||||||||||||
Construction commitments | 43 | 84 | 13 | 4 | 144 | ||||||||||||||
SONGS decommissioning | 90 | 125 | 145 | 266 | 626 | ||||||||||||||
Other asset retirement obligations | 6 | 10 | 11 | 221 | 248 | ||||||||||||||
Sunrise Powerlink wildfire mitigation fund | 3 | 6 | 6 | 105 | 120 | ||||||||||||||
Pension and other postretirement benefit | |||||||||||||||||||
obligations(3) | 40 | 94 | 120 | 209 | 463 | ||||||||||||||
Environmental commitments | 5 | 2 | 2 | 19 | 28 | ||||||||||||||
Other | 4 | 8 | 6 | 33 | 51 | ||||||||||||||
Total | $ | 1,037 | $ | 2,347 | $ | 2,288 | $ | 13,572 | $ | 19,244 |
PRINCIPAL CONTRACTUAL COMMITMENTS – SOCALGAS | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
2019 | 2020 and 2021 | 2022 and 2023 | Thereafter | Total | |||||||||||||||
Long-term debt | $ | — | $ | — | $ | — | $ | 3,459 | $ | 3,459 | |||||||||
Interest on long-term debt(1) | 135 | 269 | 269 | 1,956 | 2,629 | ||||||||||||||
Natural gas contracts | 126 | 226 | 61 | 49 | 462 | ||||||||||||||
Operating leases | 36 | 64 | 58 | 65 | 223 | ||||||||||||||
Capital leases | 3 | — | — | — | 3 | ||||||||||||||
Environmental commitments(2) | 9 | 20 | — | 2 | 31 | ||||||||||||||
Pension and other postretirement benefit | |||||||||||||||||||
obligations(3) | 119 | 368 | 367 | 596 | 1,450 | ||||||||||||||
Asset retirement obligations | 90 | 141 | 147 | 1,685 | 2,063 | ||||||||||||||
Other | 1 | 3 | 3 | 35 | 42 | ||||||||||||||
Total | $ | 519 | $ | 1,091 | $ | 905 | $ | 7,847 | $ | 10,362 |
PIPELINE SAFETY ENHANCEMENT PLAN – REASONABLENESS REVIEW SUMMARY | |||||||||||||||
(Dollars in millions) | |||||||||||||||
2011 through 2018 | |||||||||||||||
Total invested(1) | CPUC review completed(2) | CPUC review pending(3) | 2019 and future applications(4)(5) | ||||||||||||
Sempra Energy Consolidated: | |||||||||||||||
Capital | $ | 1,680 | $ | 8 | $ | 1,031 | $ | 641 | |||||||
Operation and maintenance | 196 | 25 | 150 | 21 | |||||||||||
Total | $ | 1,876 | $ | 33 | $ | 1,181 | $ | 662 | |||||||
SoCalGas: | |||||||||||||||
Capital | $ | 1,317 | $ | 8 | $ | 895 | $ | 414 | |||||||
Operation and maintenance | 187 | 25 | 141 | 21 | |||||||||||
Total | $ | 1,504 | $ | 33 | $ | 1,036 | $ | 435 | |||||||
SDG&E: | |||||||||||||||
Capital | $ | 363 | $ | — | $ | 136 | $ | 227 | |||||||
Operation and maintenance | 9 | — | 9 | — | |||||||||||
Total | $ | 372 | $ | — | $ | 145 | $ | 227 |
ENERGY EFFICIENCY AWARDS RECORDED IN REVENUES | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
SDG&E | SoCalGas | ||||||||||||||||||||||
Award period (program years) | 2018 | 2017(1) | 2016 | 2018 | 2017(1) | 2016 | |||||||||||||||||
July 2016 - June 2017 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
July 2015 - June 2016 | — | 3 | — | — | 1 | — | |||||||||||||||||
July 2014 - June 2015 | — | — | 4 | — | — | 4 |
GCIM AWARDS RECORDED IN REVENUES | |||||||||||
(Dollars in millions) | |||||||||||
SoCalGas | |||||||||||
Award period (program years) | 2018 | 2017 | 2016 | ||||||||
April 2016 - March 2017 | $ | 4 | $ | — | $ | — | |||||
April 2015 - March 2016 | — | 5 | — | ||||||||
April 2014 - March 2015 | — | — | — |
estimated capital cost (in millions) | ||||
▪changes in the regulatory and political environment or the utility’s competitive position ▪issuance of a regulatory commission order ▪passage of new legislation |
▪ future impacts |
IMPACT DUE TO INCREASE/DECREASE IN DISCOUNT RATE | ||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Sempra | SDG&E | SoCalGas | ||||||||||||||||||||||||
Increase | Decrease | Increase | Decrease | Increase | Decrease | |||||||||||||||||||||
Pension: | ||||||||||||||||||||||||||
(Decrease) increase to projected benefit obligation, net | $ | (432) | $ | 493 | $ | (55) | $ | 58 | $ | (356) | $ | 411 | ||||||||||||||
(Decrease) increase to net periodic benefit cost | (24) | 25 | 3 | (2) | (27) | 27 | ||||||||||||||||||||
PBOP: | ||||||||||||||||||||||||||
(Decrease) increase to accumulated benefit obligation, net | (122) | 157 | (24) | 30 | (95) | 123 | ||||||||||||||||||||
(Decrease) increase to net periodic benefit cost | (9) | 10 | (2) | 2 | (7) | 8 |
IMPACT DUE TO INCREASE/DECREASE IN RETURN ON PLAN ASSETS | ||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Sempra | SDG&E | SoCalGas | ||||||||||||||||||||||||
Increase | Decrease | Increase | Decrease | Increase | Decrease | |||||||||||||||||||||
Pension: | ||||||||||||||||||||||||||
(Decrease) increase to net periodic benefit cost | $ | (27) | $ | 27 | $ | (8) | $ | 8 | $ | (17) | $ | 17 | ||||||||||||||
PBOP: | ||||||||||||||||||||||||||
(Decrease) increase to net periodic benefit cost | (13) | 13 | (2) | 2 | (10) | 10 |
▪ |
INCREASE TO ARO AND REGULATORY ASSET | |||||
(Dollars in millions) | |||||
December 31, 2021 | |||||
Uniform increase in escalation percentage of 1 percentage point | $ | 91 |
NOMINAL AMOUNT OF DEBT(1) | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Sempra | SDG&E | SoCalGas | Sempra | SDG&E | SoCalGas | Sempra | SDG&E | SoCalGas | |||||||||||||||||||||||||||||||||||||||
Short-term: | |||||||||||||||||||||||||||||||||||||||||||||||
Sempra California | $ | 1,161 | $ | 776 | $ | 385 | $ | 113 | $ | — | $ | 113 | $ | 710 | $ | 80 | $ | 630 | |||||||||||||||||||||||||||||
Other | 2,310 | — | — | 772 | — | — | 2,798 | — | — | ||||||||||||||||||||||||||||||||||||||
Long-term: | |||||||||||||||||||||||||||||||||||||||||||||||
Sempra California fixed-rate | $ | 10,876 | $ | 6,417 | $ | 4,459 | $ | 10,512 | $ | 6,053 | $ | 4,459 | $ | 8,949 | $ | 5,140 | $ | 3,809 | |||||||||||||||||||||||||||||
Sempra California variable-rate | 300 | — | 300 | 500 | 200 | 300 | — | — | — | ||||||||||||||||||||||||||||||||||||||
Other fixed-rate | 8,591 | — | — | 11,204 | — | — | 11,561 | — | — | ||||||||||||||||||||||||||||||||||||||
Other variable-rate | 341 | — | — | 51 | — | — | 746 | — | — |
NOMINAL AMOUNT OF DEBT(1) | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | Sempra Energy Consolidated | SDG&E | SoCalGas | ||||||||||||||||||
Short-term: | |||||||||||||||||||||||
California Utilities | $ | 547 | $ | 291 | $ | 256 | $ | 369 | $ | 253 | $ | 116 | |||||||||||
Other | 1,532 | — | — | 1,171 | — | — | |||||||||||||||||
Long-term: | |||||||||||||||||||||||
California Utilities fixed-rate | $ | 8,377 | $ | 4,918 | $ | 3,459 | $ | 7,877 | $ | 4,868 | $ | 3,009 | |||||||||||
California Utilities variable-rate | 78 | 78 | — | — | — | — | |||||||||||||||||
Other fixed-rate | 11,531 | — | — | 8,367 | — | — | |||||||||||||||||
Variable-rate | 2,091 | — | — | 907 | — | — |
HYPOTHETICAL EFFECTS FROM 10 PERCENT STRENGTHENING OF U.S. DOLLAR | |||
(Dollars in millions) | |||
Hypothetical effects | |||
Translation of 2018 earnings to U.S. dollars(1) | $ | (19 | ) |
Transactional exposure, before the effects of foreign currency derivatives(2) | 100 | ||
Translation of net assets of foreign subsidiaries and investment in foreign entities(3) | (198 | ) |
HYPOTHETICAL EFFECTS FROM 10% STRENGTHENING OF U.S. DOLLAR (1) | |||||
(Dollars in millions) | |||||
Hypothetical effects | |||||
Translation of 2021 earnings to U.S. dollars(2) |
(3) | ||||
148 | |||||
EQUITY COMPENSATION PLANS | |||||||||||||||||
Equity compensation plans approved by shareholders | Number of shares to be issued upon exercise of outstanding options, warrants and rights(1) | Weighted-average exercise price of outstanding options, warrants and rights(2) | Number of additional shares remaining available for future issuance(3) | ||||||||||||||
2013 LTIP | 568,935 | $ | 106.76 | — | |||||||||||||
2019 LTIP | 1,116,486 | $ | 132.77 | 5,986,241 |
PRINCIPAL ACCOUNTANT FEES | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Sempra | SDG&E | SoCalGas | |||||||||||||||||||||||||||||||||||||||
Fees | Percent of total | Fees | Percent of total | Fees | Percent of total | ||||||||||||||||||||||||||||||||||||
2021: | |||||||||||||||||||||||||||||||||||||||||
Audit fees: | |||||||||||||||||||||||||||||||||||||||||
Consolidated financial statements, internal controls audits and subsidiary audits | $ | 10,166 | $ | 2,753 | $ | 3,486 | |||||||||||||||||||||||||||||||||||
Regulatory filings and related services | 807 | 60 | — | ||||||||||||||||||||||||||||||||||||||
Total audit fees | 10,973 | 81 | % | 2,813 | 87 | % | 3,486 | 91 | % | ||||||||||||||||||||||||||||||||
Audit-related fees: | |||||||||||||||||||||||||||||||||||||||||
Employee benefit plan audits | 520 | 184 | 309 | ||||||||||||||||||||||||||||||||||||||
Other audit-related services(1) | 1,840 | 119 | — | ||||||||||||||||||||||||||||||||||||||
Total audit-related fees | 2,360 | 17 | 303 | 9 | 309 | 8 | |||||||||||||||||||||||||||||||||||
Tax fees(2) | 272 | 2 | 113 | 4 | 33 | 1 | |||||||||||||||||||||||||||||||||||
All other fees(3) | 13 | — | — | — | 8 | — | |||||||||||||||||||||||||||||||||||
Total fees | $ | 13,618 | 100 | % | $ | 3,229 | 100 | % | $ | 3,836 | 100 | % | |||||||||||||||||||||||||||||
2020: | |||||||||||||||||||||||||||||||||||||||||
Audit fees: | |||||||||||||||||||||||||||||||||||||||||
Consolidated financial statements, internal controls audits and subsidiary audits | $ | 9,145 | $ | 2,469 | $ | 3,023 | |||||||||||||||||||||||||||||||||||
Regulatory filings and related services | 827 | 100 | 55 | ||||||||||||||||||||||||||||||||||||||
Total audit fees | 9,972 | 82 | % | 2,569 | 86 | % | 3,078 | 90 | % | ||||||||||||||||||||||||||||||||
Audit-related fees: | |||||||||||||||||||||||||||||||||||||||||
Employee benefit plan audits | 505 | 183 | 307 | ||||||||||||||||||||||||||||||||||||||
Other audit-related services(1) | 1,494 | 137 | — | ||||||||||||||||||||||||||||||||||||||
Total audit-related fees | 1,999 | 17 | 320 | 11 | 307 | 9 | |||||||||||||||||||||||||||||||||||
Tax fees(2) | 156 | 1 | 111 | 3 | 32 | 1 | |||||||||||||||||||||||||||||||||||
All other fees(3) | 22 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total fees | $ | 12,149 | 100 | % | $ | 3,000 | 100 | % | $ | 3,417 | 100 | % | |||||||||||||||||||||||||||||
2019: | |||||||||||||||||||||||||||||||||||||||||
Audit fees: | |||||||||||||||||||||||||||||||||||||||||
Consolidated financial statements, internal controls audits and subsidiary audits | $ | 10,568 | $ | 2,804 | $ | 2,789 | |||||||||||||||||||||||||||||||||||
Regulatory filings and related services | 466 | 45 | 45 | ||||||||||||||||||||||||||||||||||||||
Total audit fees | 11,034 | 87 | % | 2,849 | 89 | % | 2,834 | 91 | % | ||||||||||||||||||||||||||||||||
Audit-related fees: | |||||||||||||||||||||||||||||||||||||||||
Employee benefit plan audits | 517 | 162 | 286 | ||||||||||||||||||||||||||||||||||||||
Other audit-related services(1) | 883 | 99 | 10 | ||||||||||||||||||||||||||||||||||||||
Total audit-related fees | 1,400 | 11 | 261 | 8 | 296 | 9 | |||||||||||||||||||||||||||||||||||
Tax fees(2) | 74 | 1 | 73 | 3 | — | — | |||||||||||||||||||||||||||||||||||
All other fees(3) | 74 | 1 | 15 | — | — | — | |||||||||||||||||||||||||||||||||||
Total fees | $ | 12,582 | 100 | % | $ | 3,198 | 100 | % | $ | 3,130 | 100 | % |
PRINCIPAL ACCOUNTANT FEES | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | ||||||||||||||||||||
Fees | Percent of total | Fees | Percent of total | Fees | Percent of total | |||||||||||||||||
2018: | ||||||||||||||||||||||
Audit fees: | ||||||||||||||||||||||
Consolidated financial statements and | ||||||||||||||||||||||
internal controls audits, subsidiary | ||||||||||||||||||||||
and statutory audits | $ | 9,998 | $ | 2,454 | $ | 2,719 | ||||||||||||||||
Regulatory filings and related services | 598 | 80 | 101 | |||||||||||||||||||
Total audit fees | 10,596 | 82 | % | 2,534 | 90 | % | 2,820 | 90 | % | |||||||||||||
Audit-related fees: | ||||||||||||||||||||||
Employee benefit plan audits | 460 | 143 | 257 | |||||||||||||||||||
Other audit-related services, | ||||||||||||||||||||||
accounting consultation | 1,744 | 54 | 71 | |||||||||||||||||||
Total audit-related fees | 2,204 | 17 | 197 | 7 | 328 | 10 | ||||||||||||||||
Tax planning and compliance fees | 97 | 1 | 73 | 3 | — | — | ||||||||||||||||
All other fees | 20 | — | 2 | — | 1 | — | ||||||||||||||||
Total fees | $ | 12,917 | 100 | % | $ | 2,806 | 100 | % | $ | 3,149 | 100 | % | ||||||||||
2017: | ||||||||||||||||||||||
Audit fees: | ||||||||||||||||||||||
Consolidated financial statements and | ||||||||||||||||||||||
internal controls audits, subsidiary | ||||||||||||||||||||||
and statutory audits | $ | 10,049 | $ | 2,443 | $ | 2,724 | ||||||||||||||||
Regulatory filings and related services | 610 | 35 | — | |||||||||||||||||||
Total audit fees | 10,659 | 87 | % | 2,478 | 91 | % | 2,724 | 91 | % | |||||||||||||
Audit-related fees: | ||||||||||||||||||||||
Employee benefit plan audits | 430 | 135 | 240 | |||||||||||||||||||
Other audit-related services, | ||||||||||||||||||||||
accounting consultation | 1,000 | 38 | 25 | |||||||||||||||||||
Total audit-related fees | 1,430 | 12 | 173 | 6 | 265 | 9 | ||||||||||||||||
Tax planning and compliance fees | 118 | 1 | 65 | 2 | — | — | ||||||||||||||||
All other fees | 47 | — | 21 | 1 | 2 | — | ||||||||||||||||
Total fees | $ | 12,254 | 100 | % | $ | 2,737 | 100 | % | $ | 2,991 | 100 | % |
EXHIBIT INDEX | ||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | Form or Registration Statement No. | Exhibit or Appendix | Filing Date | |||||||||||||||
EXHIBIT 2 -- PLAN OF ACQUISITION, REORGANIZATION, ARRANGEMENT, LIQUIDATION OR SUCCESSION | ||||||||||||||||||||
Sempra Energy | ||||||||||||||||||||
2.1 | 8-K | 2.1 | 09/30/19 | |||||||||||||||||
2.2 | 8-K | 2.2 | 09/30/19 | |||||||||||||||||
2.3 | 8-K | 2.1 | 10/15/19 | |||||||||||||||||
EXHIBIT 3 -- BYLAWS AND ARTICLES OF INCORPORATION | ||||||||||||||||||||
Sempra Energy | ||||||||||||||||||||
3.1 | 10-K | 3.1 | 02/27/20 | |||||||||||||||||
3.2 | 8-K | 3.1 | 04/14/20 | |||||||||||||||||
3.3 | 8-K | 3.1 | 01/09/18 | |||||||||||||||||
3.4 | 8-K | 3.1 | 07/13/18 | |||||||||||||||||
3.5 | 8-K | 3.1 | 06/15/20 | |||||||||||||||||
San Diego Gas & Electric Company | ||||||||||||||||||||
3.6 | 10-K | 3.4 | 02/26/15 | |||||||||||||||||
3.7 | 10-Q | 3.1 | 11/02/16 | |||||||||||||||||
EXHIBIT INDEX (CONTINUED) | ||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | Form or Registration Statement No. | Exhibit or Appendix | Filing Date | |||||||||||||||
Southern California Gas Company | ||||||||||||||||||||
3.8 | 10-K | 3.01 | 03/28/97 | |||||||||||||||||
3.9 | 8-K | 3.1 | 01/31/17 | |||||||||||||||||
EXHIBIT 4 -- INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING INDENTURES | ||||||||||||||||||||
Certain instruments defining the rights of holders of long-term debt instruments are not required to be filed or incorporated by reference herein pursuant to Item 601(b)(4)(iii)(A) of SEC Regulation S-K. Each registrant agrees to furnish a copy of such instruments to the SEC upon request. | ||||||||||||||||||||
Sempra Energy | ||||||||||||||||||||
4.1 | 10-K | 3.1 | 02/27/20 | |||||||||||||||||
4.2 | X | |||||||||||||||||||
4.3 | 8-K | 3.1 | 01/09/18 | |||||||||||||||||
4.4 | 8-K | 3.1 | 07/13/18 | |||||||||||||||||
4.5 | 8-K | 3.1 | 06/15/20 | |||||||||||||||||
4.6 | S-3ASR 333-153425 | 4.1 | 09/11/08 | |||||||||||||||||
4.7 | 8-K | 4.1 | 10/08/09 | |||||||||||||||||
4.8 | 8-K | 4.1 | 06/09/17 | |||||||||||||||||
4.9 | 8-K | 4.1 | 01/12/18 | |||||||||||||||||
4.10 | 8-K | 4.2 | 06/26/19 | |||||||||||||||||
4.11 | 8-K | 4.1 | 06/26/19 | |||||||||||||||||
4.12 | 8-K | 4.1 | 11/19/21 | |||||||||||||||||
EXHIBIT INDEX (CONTINUED) | ||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | Form or Registration Statement No. | Exhibit or Appendix | Filing Date | |||||||||||||||
Southern California Gas Company | ||||||||||||||||||||
4.13 | 10-K | 3.01 | 03/28/97 | |||||||||||||||||
4.14 | 10-K | 4.9 | 02/27/20 | |||||||||||||||||
Sempra Energy / San Diego Gas & Electric Company | ||||||||||||||||||||
4.15 | Mortgage and Deed of Trust dated July 1, 1940. | 2-4769 | B-3 | (1) | ||||||||||||||||
4.16 | Second Supplemental Indenture dated as of March 1, 1948. | 2-7418 | B-5B | (1) | ||||||||||||||||
4.17 | Ninth Supplemental Indenture dated as of August 1, 1968. | 333-52150 | 4.5 | (1) | ||||||||||||||||
4.18 | Tenth Supplemental Indenture dated as of December 1, 1968. | 2-36042 | 2-K | (1) | ||||||||||||||||
4.19 | Sixteenth Supplemental Indenture dated August 28, 1975. | 33-34017 | 4.2 | (1) | ||||||||||||||||
4.20 | 8-K | 4.1 | 05/19/05 | |||||||||||||||||
4.21 | 8-K | 4.1 | 06/08/06 | |||||||||||||||||
4.22 | 8-K | 4.1 | 09/20/07 | |||||||||||||||||
4.23 | 8-K | 4.1 | 05/15/09 | |||||||||||||||||
4.24 | 8-K | 4.1 | 05/13/10 | |||||||||||||||||
4.25 | 8-K | 4.1 | 08/26/10 | |||||||||||||||||
4.26 | 8-K | 4.1 | 08/18/11 | |||||||||||||||||
4.27 | 8-K | 4.1 | 11/17/11 | |||||||||||||||||
4.28 | 8-K | 4.1 | 03/23/12 | |||||||||||||||||
4.29 | 8-K | 4.1 | 09/09/13 | |||||||||||||||||
4.30 | 8-K | 4.2 | 03/12/15 | |||||||||||||||||
4.31 | 8-K | 4.1 | 05/19/16 | |||||||||||||||||
4.32 | 8-K | 4.1 | 06/08/17 | |||||||||||||||||
4.33 | 8-K | 4.1 | 05/17/18 | |||||||||||||||||
4.34 | 8-K | 4.1 | 05/31/19 | |||||||||||||||||
4.35 | 8-K | 4.1 | 04/07/20 | |||||||||||||||||
4.36 | 8-K | 4.1 | 09/28/20 | |||||||||||||||||
4.37 | 8-K | 4.1 | 08/13/21 | |||||||||||||||||
EXHIBIT INDEX (CONTINUED) | ||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | Form or Registration Statement No. | Exhibit or Appendix | Filing Date | |||||||||||||||
Sempra Energy / Southern California Gas Company | ||||||||||||||||||||
4.38 | First Mortgage Indenture of Southern California Gas Company to American Trust Company dated October 1, 1940. | 2-4504 | B-4 | (1) | ||||||||||||||||
4.39 | Supplemental Indenture of Southern California Gas Company to American Trust Company dated as of August 1, 1955. | 2-11997 | 4.07 | (1) | ||||||||||||||||
4.40 | 10-K | 4.09 | 02/23/07 | |||||||||||||||||
4.41 | 10-K | 4.10 | 02/23/07 | |||||||||||||||||
4.42 | Supplemental Indenture of Southern California Gas Company to Wells Fargo Bank, National Association dated as of August 1, 1972. | 2-59832 | 2.19 | (1) | ||||||||||||||||
4.43 | Supplemental Indenture of Southern California Gas Company to Wells Fargo Bank, National Association dated as of May 1, 1976. | 2-56034 | 2.20 | (1) | ||||||||||||||||
4.44 | Supplemental Indenture of Southern California Gas Company to Wells Fargo Bank, National Association dated as of September 15, 1981. | 333-70654 | 4.24 | (1) | ||||||||||||||||
4.45 | 8-K | 4.1 | 11/18/05 | |||||||||||||||||
4.46 | 8-K | 4.1 | 11/18/10 | |||||||||||||||||
4.47 | 8-K | 4.1 | 09/21/12 | |||||||||||||||||
4.48 | 8-K | 4.1 | 03/13/14 | |||||||||||||||||
4.49 | 8-K | 4.1 | 09/11/14 | |||||||||||||||||
4.50 | 8-K | 4.2 | 06/18/15 | |||||||||||||||||
4.51 | 8-K | 4.1 | 06/03/16 | |||||||||||||||||
4.52 | 8-K | 4.1 | 05/15/18 | |||||||||||||||||
4.53 | 8-K | 4.1 | 09/24/18 | |||||||||||||||||
4.54 | 8-K | 4.1 | 06/04/19 | |||||||||||||||||
4.55 | 8-K | 4.1 | 01/09/20 | |||||||||||||||||
4.56 | Indenture, dated as of May 1, 1989, between Southern California Gas Company and Citibank, N.A., as trustee. | 333-28260 | 4.1.1 | (1) | ||||||||||||||||
EXHIBIT INDEX (CONTINUED) | ||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | Form or Registration Statement No. | Exhibit or Appendix | Filing Date | |||||||||||||||
4.57 | First Supplemental Indenture, dated as of October 1, 1992, between Southern California Gas Company and Citibank, N.A., as trustee. | 8-K | 4.1.2 | (1) | ||||||||||||||||
4.58 | Form of 5.670% Medium Term Note due 2028. | 8-K | 4.2.1 | (1) | ||||||||||||||||
4.59 | 8-K | 4.1 | 09/21/20 | |||||||||||||||||
4.60 | 8-K | 4.2 | 09/21/20 | |||||||||||||||||
EXHIBIT 10 -- MATERIAL CONTRACTS | ||||||||||||||||||||
Sempra Energy | ||||||||||||||||||||
10.1* | 10-K | 10.1 | 02/25/21 | |||||||||||||||||
Sempra Energy / San Diego Gas & Electric Company / Southern California Gas Company | ||||||||||||||||||||
10.2 | 8-K | 99.1 | 01/05/06 | |||||||||||||||||
Sempra Energy / San Diego Gas & Electric Company | ||||||||||||||||||||
10.3 | 10-Q | 10.4 | 05/09/11 | |||||||||||||||||
10.4 | 10-Q | 10.5 | 05/09/11 | |||||||||||||||||
Sempra Energy / Southern California Gas Company | ||||||||||||||||||||
10.5 | 8-K | 10.1 | 09/27/21 | |||||||||||||||||
Management Contract or Compensatory Plan, Contract or Arrangement | ||||||||||||||||||||
Sempra Energy / San Diego Gas & Electric Company / Southern California Gas Company | ||||||||||||||||||||
10.6 | 10-K | 10.6 | 02/25/21 | |||||||||||||||||
10.7 | 10-K | 10.7 | 02/25/21 | |||||||||||||||||
10.8 | 10-K | 10.8 | 02/25/21 | |||||||||||||||||
10.9 | 10-K | 10.9 | 02/25/21 | |||||||||||||||||
10.10 | 10-K | 10.5 | 02/27/20 | |||||||||||||||||
10.11 | 10-K | 10.6 | 02/27/20 | |||||||||||||||||
EXHIBIT INDEX (CONTINUED) | ||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | Form or Registration Statement No. | Exhibit or Appendix | Filing Date | |||||||||||||||
10.12 | 10-Q | 10.1 | 11/05/20 | |||||||||||||||||
10.13 | 10-K | 10.7 | 02/27/20 | |||||||||||||||||
10.14 | 10-K | 10.8 | 02/27/20 | |||||||||||||||||
10.15 | 10-K | 10.9 | 02/27/20 | |||||||||||||||||
10.16 | DEF 14A | E | 03/22/19 | |||||||||||||||||
10.17 | 10-Q | 10.2 | 08/02/19 | |||||||||||||||||
10.18 | 10-Q | 10.5 | 08/02/19 | |||||||||||||||||
10.19 | 10-Q | 10.1 | 05/07/19 | |||||||||||||||||
10.20 | 10-Q | 10.2 | 05/07/19 | |||||||||||||||||
10.21 | 10-Q | 10.3 | 05/07/19 | |||||||||||||||||
10.22 | 10-Q | 10.4 | 05/07/19 | |||||||||||||||||
10.23 | 10-Q | 10.5 | 05/07/19 | |||||||||||||||||
10.24 | 10-Q | 10.2 | 08/07/08 | |||||||||||||||||
10.25 | 10-Q | 10.1 | 05/04/16 | |||||||||||||||||
10.26 | 10-K | 10.19 | 02/27/14 | |||||||||||||||||
10.27 | 10-K | 10.26 | 02/25/21 | |||||||||||||||||
10.28 | 10-K | 10.5 | 02/26/16 | |||||||||||||||||
10.29 | 10-Q | 10.8 | 05/07/18 | |||||||||||||||||
10.30 | 10-Q | 10.9 | 05/07/18 | |||||||||||||||||
EXHIBIT INDEX (CONTINUED) | ||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | Form or Registration Statement No. | Exhibit or Appendix | Filing Date | |||||||||||||||
10.31 | 10-Q | 10.10 | 05/07/18 | |||||||||||||||||
10.32 | 10-Q | 10.11 | 05/07/18 | |||||||||||||||||
10.33 | 10-Q | 10.13 | 05/07/18 | |||||||||||||||||
10.34 | 10-K | 10.33 | 02/25/21 | |||||||||||||||||
10.35 | 10-K | 10.28 | 02/28/17 | |||||||||||||||||
10.36 | 10-K | 10.28 | 02/26/16 | |||||||||||||||||
10.37 | 10-K | 10.29 | 02/26/16 | |||||||||||||||||
10.38 | 10-K | 10.43 | 02/26/15 | |||||||||||||||||
10.39 | 10-K | 10.31 | 02/26/16 | |||||||||||||||||
10.40 | 10-K | 10.22 | 02/26/13 | |||||||||||||||||
10.41 | 10-K | 10.35 | 02/27/20 | |||||||||||||||||
Sempra Energy | ||||||||||||||||||||
10.42 | 10-Q | 10.3 | 08/02/19 | |||||||||||||||||
10.43 | 10-Q | 10.4 | 08/02/19 | |||||||||||||||||
10.44 | 10-K | 10.50 | 02/27/18 | |||||||||||||||||
10.45 | 10-Q | 10.7 | 08/07/08 | |||||||||||||||||
10.46 | 10-Q | 10.7 | 05/07/18 | |||||||||||||||||
10.47 | 10-Q | 10.3 | 08/06/18 | |||||||||||||||||
10.48 | 10-Q | 10.2 | 11/05/20 | |||||||||||||||||
10.49 | 10-Q | 10.5 | 08/06/18 | |||||||||||||||||
10.50 | 10-Q | 10.3 | 11/05/20 | |||||||||||||||||
10.51 | X | |||||||||||||||||||
EXHIBIT INDEX (CONTINUED) | ||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | Form or Registration Statement No. | Exhibit or Appendix | Filing Date | |||||||||||||||
Sempra Energy / San Diego Gas & Electric Company | ||||||||||||||||||||
10.52 | 10-K | 10.64 | 02/27/14 | |||||||||||||||||
10.53 | 10-Q | 10.1 | 08/05/20 | |||||||||||||||||
10.54 | 10-Q | 10.15 | 05/09/17 | |||||||||||||||||
10.55 | 10-Q | 10.4 | 11/05/20 | |||||||||||||||||
10.56 | 10-K | 10.68 | 02/26/19 | |||||||||||||||||
Sempra Energy / Southern California Gas Company | ||||||||||||||||||||
10.57 | 10-K | 10.71 | 02/27/14 | |||||||||||||||||
10.58 | 10-Q | 10.4 | 11/07/18 | |||||||||||||||||
10.59 | 10-Q | 10.7 | 08/02/19 | |||||||||||||||||
10.60 | 10-Q | 10.2 | 08/05/20 | |||||||||||||||||
10.61 | 10-Q | 10.6 | 08/02/19 | |||||||||||||||||
10.62 | 10-K | 10.77 | 02/26/19 | |||||||||||||||||
10.63 | 10-K | 10.67 | 02/25/21 | |||||||||||||||||
EXHIBIT 14 -- CODE OF ETHICS | ||||||||||||||||||||
Sempra Energy / San Diego Gas & Electric Company / Southern California Gas Company | ||||||||||||||||||||
14.1 | X | |||||||||||||||||||
EXHIBIT INDEX (CONTINUED) | ||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | ||||||||||||
EXHIBIT 21 -- SUBSIDIARIES | ||||||||||||||
Sempra Energy | ||||||||||||||
21.1 | X | |||||||||||||
EXHIBIT 23 -- CONSENTS OF EXPERTS AND COUNSEL | ||||||||||||||
Sempra Energy | ||||||||||||||
23.1 | X | |||||||||||||
23.2 | X | |||||||||||||
San Diego Gas & Electric Company | ||||||||||||||
23.3 |
X | ||||||||||||||
Southern California Gas Company | ||||||||||||||
23.4 | X | |||||||||||||
EXHIBIT 31 -- SECTION 302 CERTIFICATIONS | ||||||||||||||
Sempra Energy | ||||||||||||||
31.1 | X | |||||||||||||
31.2 | X | |||||||||||||
San Diego Gas & Electric Company | ||||||||||||||
31.3 | X | |||||||||||||
31.4 | X | |||||||||||||
Southern California Gas Company | ||||||||||||||
31.5 | X | |||||||||||||
31.6 | X | |||||||||||||
EXHIBIT 32 -- SECTION 906 CERTIFICATIONS | ||||||||||||||
Sempra Energy | ||||||||||||||
32.1 | X | |||||||||||||
32.2 | X | |||||||||||||
San Diego Gas & Electric Company | ||||||||||||||
32.3 | X | |||||||||||||
32.4 | X | |||||||||||||
EXHIBIT INDEX (CONTINUED) | ||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | ||||||||||||
Southern California Gas Company | ||||||||||||||
32.5 | X | |||||||||||||
32.6 | X | |||||||||||||
EXHIBIT 99 -- ADDITIONAL EXHIBITS | ||||||||||||||
Sempra Energy | ||||||||||||||
99.1 | X | |||||||||||||
EXHIBIT 101 -- INTERACTIVE DATA FILE | ||||||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document. | X | ||||||||||||
101.SCH | XBRL Taxonomy Extension Schema | X | ||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | X | ||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | X | ||||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | X | ||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | X | ||||||||||||
EXHIBIT 104 -- COVER PAGE | ||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||||||||
Sempra Energy: | ||||||||
SIGNATURES | ||||||||
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | ||||||||
SEMPRA ENERGY, (Registrant) | ||||||||
By: /s/ J. Walker Martin | ||||||||
J. Walker Martin Chairman, | ||||||||
Date: February |
Pursuant to the requirements of the Securities Exchange Act of 1934 (the Act), this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated. | ||||||||
Name/Title | Signature | Date | ||||||
Principal Executive Officer: Chief Executive Officer and President | /s/ J. Walker Martin | February 25, 2022 | ||||||
Principal Financial Officer: Trevor I. Mihalik Executive Vice President and Chief Financial Officer | /s/ Trevor I. Mihalik | February 25, 2022 | ||||||
Principal Accounting Officer: Peter R. Wall Senior Vice President, Controller and Chief Accounting Officer | /s/ Peter R. Wall | February 25, 2022 | ||||||
Directors: | ||||||||
J. Walker Martin, Chairman | /s/ J. Walker Martin | February 25, 2022 | ||||||
Alan L. Boeckmann, Director | /s/ Alan L. Boeckmann | February 25, 2022 | ||||||
Andrés Conesa, Director | /s/ Andrés Conesa | February 25, 2022 | ||||||
Maria Contreras-Sweet, Director | /s/ Maria Contreras-Sweet | February 25, 2022 | ||||||
Pablo A. Ferrero, Director | /s/ Pablo A. Ferrero | February 25, 2022 | ||||||
William D. Jones, Director | /s/ William D. Jones | February 25, 2022 | ||||||
Bethany J. Mayer, Director | /s/ Bethany J. Mayer | February 25, 2022 | ||||||
Michael N. Mears, Director | /s/ Michael N. Mears | February 25, 2022 | ||||||
Jack T. Taylor, Director | /s/ Jack T. Taylor | February 25, 2022 | ||||||
Cynthia L. Walker, Director | /s/ Cynthia L. Walker | February 25, 2022 | ||||||
Cynthia J. Warner, Director | /s/ Cynthia J. Warner | February 25, 2022 | ||||||
James C. | /s/ James C. Yardley | February 25, 2022 |
San Diego Gas & Electric Company: | |||||
SIGNATURES | |||||
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | |||||
SAN DIEGO GAS & ELECTRIC COMPANY, (Registrant) | |||||
By: /s/ Caroline A. Winn | |||||
Caroline A. Winn Chief Executive Officer | |||||
Date: February 25, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 (the Act), this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated. | ||||||||
Name/Title | Signature | Date | ||||||
Principal Executive Officer: Caroline A. Winn Chief Executive Officer | February | |||||||
Principal Financial Bruce A. Folkmann President and Chief Financial Officer | /s/ Bruce A. Folkmann | February 25, 2022 | ||||||
Principal Accounting Officer: Valerie A. Bille Vice President, Controller | /s/ Bille | February | ||||||
Directors: | ||||||||
Kevin C. Sagara, Non-Executive Chairman | /s/ Kevin C. Sagara | February | ||||||
/s/ | February | |||||||
/s/ | February | |||||||
Caroline A. Winn, Director | /s/ Caroline A. Winn | February | ||||||
Southern California Gas Company: | |||||
SIGNATURES | |||||
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | |||||
SOUTHERN CALIFORNIA GAS COMPANY, (Registrant) | |||||
By: /s/ | |||||
Chief Executive Officer | |||||
Date: February |
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated. | ||||||||
Name/Title | Signature | Date | ||||||
Principal Executive Officer: | /s/ | February | ||||||
Principal Financial and Accounting Officer: | /s/ | February | ||||||
Directors: | ||||||||
/s/ | February | |||||||
/s/ | February | |||||||
/s/ | February | |||||||
/s/ | February |
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||
Consolidated Financial Statements: | Sempra | San Diego Gas & Electric Company | Southern California Gas Company | ||||||||
Consolidated Statements of Operations for the years ended December 31, | |||||||||||
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, | |||||||||||
Consolidated Balance Sheets at December 31, | |||||||||||
Consolidated Statements of Cash Flows for the years ended December 31, | |||||||||||
Consolidated Statements of Changes in Equity for the years ended December 31, | N/A | ||||||||||
N/A | N/A | ||||||||||
SEMPRA ENERGY | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Dollars in millions, except per share amounts) | ||||||||||||
Years ended December 31, | ||||||||||||
2018 | 2017(1) | 2016(1) | ||||||||||
REVENUES | ||||||||||||
Utilities | $ | 10,046 | $ | 9,776 | $ | 9,261 | ||||||
Energy-related businesses | 1,641 | 1,431 | 922 | |||||||||
Total revenues | 11,687 | 11,207 | 10,183 | |||||||||
EXPENSES AND OTHER INCOME | ||||||||||||
Utilities: | ||||||||||||
Cost of electric fuel and purchased power | (2,323 | ) | (2,281 | ) | (2,188 | ) | ||||||
Cost of natural gas | (1,208 | ) | (1,190 | ) | (1,067 | ) | ||||||
Energy-related businesses: | ||||||||||||
Cost of natural gas, electric fuel and purchased power | (355 | ) | (339 | ) | (277 | ) | ||||||
Other cost of sales | (78 | ) | (24 | ) | (322 | ) | ||||||
Operation and maintenance | (3,309 | ) | (3,096 | ) | (2,976 | ) | ||||||
Depreciation and amortization | (1,549 | ) | (1,490 | ) | (1,312 | ) | ||||||
Franchise fees and other taxes | (472 | ) | (436 | ) | (426 | ) | ||||||
Write-off of wildfire regulatory asset | — | (351 | ) | — | ||||||||
Impairment losses | (1,122 | ) | (72 | ) | (153 | ) | ||||||
Gain on sale of assets | 524 | 3 | 134 | |||||||||
Remeasurement of equity method investment | — | — | 617 | |||||||||
Other income, net | 72 | 233 | 138 | |||||||||
Interest income | 104 | 46 | 26 | |||||||||
Interest expense | (925 | ) | (659 | ) | (553 | ) | ||||||
Income before income taxes and equity earnings of unconsolidated entities | 1,046 | 1,551 | 1,824 | |||||||||
Income tax expense | (96 | ) | (1,276 | ) | (389 | ) | ||||||
Equity earnings | 176 | 76 | 84 | |||||||||
Net income | 1,126 | 351 | 1,519 | |||||||||
Earnings attributable to noncontrolling interests | (76 | ) | (94 | ) | (148 | ) | ||||||
Mandatory convertible preferred stock dividends | (125 | ) | — | — | ||||||||
Preferred dividends of subsidiary | (1 | ) | (1 | ) | (1 | ) | ||||||
Earnings attributable to common shares | $ | 924 | $ | 256 | $ | 1,370 | ||||||
Basic earnings per common share | $ | 3.45 | $ | 1.02 | $ | 5.48 | ||||||
Weighted-average shares outstanding, basic (thousands) | 268,072 | 251,545 | 250,217 | |||||||||
Diluted earnings per common share | $ | 3.42 | $ | 1.01 | $ | 5.46 | ||||||
Weighted-average shares outstanding, diluted (thousands) | 269,852 | 252,300 | 251,155 |
|
SEMPRA ENERGY | |||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Years ended December 31, 2021, 2020 and 2019 | |||||||||||||||||||||||||||||
Sempra Energy shareholders’ equity | |||||||||||||||||||||||||||||
Pretax amount | Income tax (expense) benefit | Net-of-tax amount | Noncontrolling interests (after tax) | Total | |||||||||||||||||||||||||
2021: | |||||||||||||||||||||||||||||
Net income | $ | 1,417 | $ | (99) | $ | 1,318 | $ | 145 | $ | 1,463 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | (6) | — | (6) | (3) | (9) | ||||||||||||||||||||||||
Financial instruments | 191 | (47) | 144 | 14 | 158 | ||||||||||||||||||||||||
Pension and other postretirement benefits | 28 | (6) | 22 | — | 22 | ||||||||||||||||||||||||
Total other comprehensive income | 213 | (53) | 160 | 11 | 171 | ||||||||||||||||||||||||
Comprehensive income | 1,630 | (152) | 1,478 | 156 | 1,634 | ||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | — | (1) | — | (1) | ||||||||||||||||||||||||
Comprehensive income, after preferred dividends of subsidiary | $ | 1,629 | $ | (152) | $ | 1,477 | $ | 156 | $ | 1,633 | |||||||||||||||||||
2020: | |||||||||||||||||||||||||||||
Net income | $ | 5,368 | $ | (1,435) | $ | 3,933 | $ | 172 | $ | 4,105 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | 547 | — | 547 | (12) | 535 | ||||||||||||||||||||||||
Financial instruments | (146) | 33 | (113) | (12) | (125) | ||||||||||||||||||||||||
Pension and other postretirement benefits | 11 | 1 | 12 | — | 12 | ||||||||||||||||||||||||
Total other comprehensive income (loss) | 412 | 34 | 446 | (24) | 422 | ||||||||||||||||||||||||
Comprehensive income | 5,780 | (1,401) | 4,379 | 148 | 4,527 | ||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | — | (1) | — | (1) | ||||||||||||||||||||||||
Comprehensive income, after preferred dividends of subsidiary | $ | 5,779 | $ | (1,401) | $ | 4,378 | $ | 148 | $ | 4,526 | |||||||||||||||||||
2019: | |||||||||||||||||||||||||||||
Net income | $ | 2,585 | $ | (387) | $ | 2,198 | $ | 164 | $ | 2,362 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | (43) | — | (43) | 3 | (40) | ||||||||||||||||||||||||
Financial instruments | (161) | 53 | (108) | (10) | (118) | ||||||||||||||||||||||||
Pension and other postretirement benefits | 25 | (7) | 18 | — | 18 | ||||||||||||||||||||||||
Total other comprehensive loss | (179) | 46 | (133) | (7) | (140) | ||||||||||||||||||||||||
Comprehensive income | 2,406 | (341) | 2,065 | 157 | 2,222 | ||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | — | (1) | — | (1) | ||||||||||||||||||||||||
Comprehensive income, after preferred dividends of subsidiary | $ | 2,405 | $ | (341) | $ | 2,064 | $ | 157 | $ | 2,221 |
SEMPRA ENERGY | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Years ended December 31, 2018, 2017 and 2016 | |||||||||||||||||||
Sempra Energy shareholders’ equity | |||||||||||||||||||
Pretax amount | Income tax (expense) benefit | Net-of-tax amount | Noncontrolling interests (after tax) | Total | |||||||||||||||
2018: | |||||||||||||||||||
Net income | $ | 1,146 | $ | (96 | ) | $ | 1,050 | $ | 76 | $ | 1,126 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Foreign currency translation adjustments | (144 | ) | — | (144 | ) | (11 | ) | (155 | ) | ||||||||||
Financial instruments | 64 | (21 | ) | 43 | 13 | 56 | |||||||||||||
Pension and other postretirement benefits | (38 | ) | 4 | (34 | ) | — | (34 | ) | |||||||||||
Total other comprehensive (loss) income | (118 | ) | (17 | ) | (135 | ) | 2 | (133 | ) | ||||||||||
Comprehensive income | 1,028 | (113 | ) | 915 | 78 | 993 | |||||||||||||
Preferred dividends of subsidiary | (1 | ) | — | (1 | ) | — | (1 | ) | |||||||||||
Comprehensive income, after | |||||||||||||||||||
preferred dividends of subsidiary | $ | 1,027 | $ | (113 | ) | $ | 914 | $ | 78 | $ | 992 | ||||||||
2017: | |||||||||||||||||||
Net income | $ | 1,533 | $ | (1,276 | ) | $ | 257 | $ | 94 | $ | 351 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Foreign currency translation adjustments | 107 | — | 107 | 8 | 115 | ||||||||||||||
Financial instruments | 2 | 1 | 3 | 12 | 15 | ||||||||||||||
Pension and other postretirement benefits | 20 | (8 | ) | 12 | — | 12 | |||||||||||||
Total other comprehensive income | 129 | (7 | ) | 122 | 20 | 142 | |||||||||||||
Comprehensive income | 1,662 | (1,283 | ) | 379 | 114 | 493 | |||||||||||||
Preferred dividends of subsidiary | (1 | ) | — | (1 | ) | — | (1 | ) | |||||||||||
Comprehensive income, after | |||||||||||||||||||
preferred dividends of subsidiary | $ | 1,661 | $ | (1,283 | ) | $ | 378 | $ | 114 | $ | 492 | ||||||||
2016: | |||||||||||||||||||
Net income | $ | 1,760 | $ | (389 | ) | $ | 1,371 | $ | 148 | $ | 1,519 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Foreign currency translation adjustments | 42 | — | 42 | (3 | ) | 39 | |||||||||||||
Financial instruments | (6 | ) | 11 | 5 | 17 | 22 | |||||||||||||
Pension and other postretirement benefits | (13 | ) | 4 | (9 | ) | — | (9 | ) | |||||||||||
Total other comprehensive income | 23 | 15 | 38 | 14 | 52 | ||||||||||||||
Comprehensive income | 1,783 | (374 | ) | 1,409 | 162 | 1,571 | |||||||||||||
Preferred dividends of subsidiary | (1 | ) | — | (1 | ) | — | (1 | ) | |||||||||||
Comprehensive income, after | |||||||||||||||||||
preferred dividends of subsidiary | $ | 1,782 | $ | (374 | ) | $ | 1,408 | $ | 162 | $ | 1,570 | ||||||||
See Notes to Consolidated Financial Statements. |
SEMPRA ENERGY | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars in millions) | |||||||
December 31, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 190 | $ | 288 | |||
Restricted cash | 35 | 62 | |||||
Accounts receivable – trade, net | 1,488 | 1,307 | |||||
Accounts receivable – other, net | 362 | 277 | |||||
Due from unconsolidated affiliates | 39 | 37 | |||||
Income taxes receivable | 68 | 110 | |||||
Inventories | 296 | 307 | |||||
Regulatory assets | 138 | 325 | |||||
Greenhouse gas allowances | 59 | 299 | |||||
Assets held for sale | 713 | 127 | |||||
Other | 257 | 202 | |||||
Total current assets | 3,645 | 3,341 | |||||
Other assets: | |||||||
Restricted cash | 21 | 14 | |||||
Due from unconsolidated affiliates | 688 | 598 | |||||
Regulatory assets | 1,589 | 1,517 | |||||
Nuclear decommissioning trusts | 974 | 1,033 | |||||
Investment in Oncor Holdings | 9,652 | — | |||||
Other investments | 2,337 | 2,527 | |||||
Goodwill | 2,373 | 2,397 | |||||
Other intangible assets | 272 | 596 | |||||
Dedicated assets in support of certain benefit plans | 416 | 455 | |||||
Insurance receivable for Aliso Canyon costs | 461 | 418 | |||||
Deferred income taxes | 151 | 170 | |||||
Greenhouse gas allowances | 289 | 93 | |||||
Sundry | 974 | 792 | |||||
Total other assets | 20,197 | 10,610 | |||||
Property, plant and equipment: | |||||||
Property, plant and equipment | 49,315 | 48,108 | |||||
Less accumulated depreciation and amortization | (12,519 | ) | (11,605 | ) | |||
Property, plant and equipment, net ($295 and $321 at December 31, 2018 and 2017, respectively, related to Otay Mesa VIE) | 36,796 | 36,503 | |||||
Total assets | $ | 60,638 | $ | 50,454 |
SEMPRA ENERGY | |||||||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 559 | $ | 960 | $ | 108 | |||||||||||
Restricted cash | 19 | 22 | 31 | ||||||||||||||
Accounts receivable – trade, net | 2,071 | 1,578 | 1,261 | ||||||||||||||
Accounts receivable – other, net | 398 | 403 | 455 | ||||||||||||||
Due from unconsolidated affiliates | 23 | 20 | 32 | ||||||||||||||
Income taxes receivable | 79 | 113 | 112 | ||||||||||||||
Inventories | 389 | 308 | 277 | ||||||||||||||
Prepaid expenses | 260 | 215 | 161 | ||||||||||||||
Regulatory assets | 271 | 190 | 222 | ||||||||||||||
Greenhouse gas allowances | 97 | 553 | 72 | ||||||||||||||
Assets held for sale in discontinued operations | — | — | 445 | ||||||||||||||
Other current assets | 209 | 149 | 163 | ||||||||||||||
Total current assets | 4,375 | 4,511 | 3,339 | ||||||||||||||
Other assets: | |||||||||||||||||
Restricted cash | 3 | 3 | 3 | ||||||||||||||
Due from unconsolidated affiliates | 637 | 780 | 742 | ||||||||||||||
Regulatory assets | 2,011 | 1,822 | 1,930 | ||||||||||||||
Insurance receivable for Aliso Canyon costs | 360 | 445 | 339 | ||||||||||||||
Greenhouse gas allowances | 422 | 101 | 470 | ||||||||||||||
Nuclear decommissioning trusts | 1,012 | 1,019 | 1,082 | ||||||||||||||
Dedicated assets in support of certain benefit plans | 567 | 512 | 488 | ||||||||||||||
Deferred income taxes | 151 | 136 | 155 | ||||||||||||||
Right-of-use assets – operating leases | 594 | 543 | 591 | ||||||||||||||
Investment in Oncor Holdings | 12,947 | 12,440 | 11,519 | ||||||||||||||
Other investments | 1,525 | 1,388 | 2,103 | ||||||||||||||
Goodwill | 1,602 | 1,602 | 1,602 | ||||||||||||||
Other intangible assets | 370 | 202 | 213 | ||||||||||||||
Wildfire fund | 331 | 363 | 392 | ||||||||||||||
Assets held for sale in discontinued operations | — | — | 3,513 | ||||||||||||||
Other long-term assets | 1,244 | 753 | 732 | ||||||||||||||
Total other assets | 23,776 | 22,109 | 25,874 | ||||||||||||||
Property, plant and equipment: | |||||||||||||||||
Property, plant and equipment | 58,940 | 53,928 | 49,329 | ||||||||||||||
Less accumulated depreciation and amortization | (15,046) | (13,925) | (12,877) | ||||||||||||||
Property, plant and equipment, net | 43,894 | 40,003 | 36,452 | ||||||||||||||
Total assets | $ | 72,045 | $ | 66,623 | $ | 65,665 |
SEMPRA ENERGY | SEMPRA ENERGY | SEMPRA ENERGY | ||||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS (CONTINUED) | CONSOLIDATED BALANCE SHEETS (CONTINUED) | CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
December 31, 2018 | December 31, 2017 | 2021 | 2020 | 2019 | ||||||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | |||||||||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||||||||
Short-term debt | $ | 2,079 | $ | 1,540 | Short-term debt | $ | 3,471 | $ | 885 | $ | 3,505 | |||||||||||||
Accounts payable – trade | 1,324 | 1,350 | Accounts payable – trade | 1,671 | 1,359 | 1,234 | ||||||||||||||||||
Accounts payable – other | 150 | 173 | Accounts payable – other | 178 | 154 | 179 | ||||||||||||||||||
Due to unconsolidated affiliates | 10 | 7 | Due to unconsolidated affiliates | — | 45 | 5 | ||||||||||||||||||
Dividends and interest payable | 499 | 342 | Dividends and interest payable | 563 | 551 | 515 | ||||||||||||||||||
Accrued compensation and benefits | 469 | 439 | Accrued compensation and benefits | 479 | 446 | 476 | ||||||||||||||||||
Regulatory liabilities | 105 | 109 | Regulatory liabilities | 359 | 140 | 319 | ||||||||||||||||||
Current portion of long-term debt ($28 and $10 at December 31, 2018 and 2017, respectively, related to Otay Mesa VIE) | 1,673 | 1,427 | ||||||||||||||||||||||
Current portion of long-term debt and finance leases | Current portion of long-term debt and finance leases | 106 | 1,540 | 1,526 | ||||||||||||||||||||
Reserve for Aliso Canyon costs | 160 | 84 | Reserve for Aliso Canyon costs | 1,980 | 150 | 9 | ||||||||||||||||||
Greenhouse gas obligations | 59 | 299 | Greenhouse gas obligations | 97 | 553 | 72 | ||||||||||||||||||
Liabilities held for sale | 25 | 49 | ||||||||||||||||||||||
Other | 970 | 816 | ||||||||||||||||||||||
Liabilities held for sale in discontinued operations | Liabilities held for sale in discontinued operations | — | — | 444 | ||||||||||||||||||||
Other current liabilities | Other current liabilities | 1,131 | 1,016 | 866 | ||||||||||||||||||||
Total current liabilities | 7,523 | 6,635 | Total current liabilities | 10,035 | 6,839 | 9,150 | ||||||||||||||||||
Long-term debt ($190 and $284 at December 31, 2018 and 2017, respectively, related to Otay Mesa VIE) | 21,611 | 16,445 | ||||||||||||||||||||||
Long-term debt and finance leases | Long-term debt and finance leases | 21,068 | 21,781 | 20,785 | ||||||||||||||||||||
Deferred credits and other liabilities: | Deferred credits and other liabilities: | |||||||||||||||||||||||
Due to unconsolidated affiliates | 37 | 35 | Due to unconsolidated affiliates | 287 | 234 | 195 | ||||||||||||||||||
Regulatory liabilities | Regulatory liabilities | 3,402 | 3,372 | 3,741 | ||||||||||||||||||||
Reserve for Aliso Canyon costs | Reserve for Aliso Canyon costs | 3 | 301 | 7 | ||||||||||||||||||||
Greenhouse gas obligations | Greenhouse gas obligations | 225 | — | 301 | ||||||||||||||||||||
Pension and other postretirement benefit plan obligations, net of plan assets | 1,161 | 1,148 | Pension and other postretirement benefit plan obligations, net of plan assets | 687 | 1,059 | 1,067 | ||||||||||||||||||
Deferred income taxes | 2,571 | 2,767 | Deferred income taxes | 3,477 | 2,871 | 2,577 | ||||||||||||||||||
Deferred investment tax credits | 24 | 28 | ||||||||||||||||||||||
Regulatory liabilities | 4,016 | 3,922 | ||||||||||||||||||||||
Asset retirement obligations | 2,787 | 2,732 | Asset retirement obligations | 3,375 | 3,113 | 2,923 | ||||||||||||||||||
Greenhouse gas obligations | 131 | — | ||||||||||||||||||||||
Liabilities held for sale in discontinued operations | Liabilities held for sale in discontinued operations | — | — | 1,052 | ||||||||||||||||||||
Deferred credits and other | 1,529 | 1,602 | Deferred credits and other | 2,067 | 2,119 | 2,062 | ||||||||||||||||||
Total deferred credits and other liabilities | 12,256 | 12,234 | Total deferred credits and other liabilities | 13,523 | 13,069 | 13,925 | ||||||||||||||||||
Commitments and contingencies (Note 16) | Commitments and contingencies (Note 16) | 0 | 0 | 0 | ||||||||||||||||||||
Equity: | Equity: | |||||||||||||||||||||||
Preferred stock (50 million shares authorized): | Preferred stock (50 million shares authorized): | |||||||||||||||||||||||
6% mandatory convertible preferred stock, series A (17.25 million shares issued and outstanding at December 31, 2018) | 1,693 | — | ||||||||||||||||||||||
6.75% mandatory convertible preferred stock, series B (5.75 million shares issued and outstanding at December 31, 2018) | 565 | — | ||||||||||||||||||||||
Common stock (750 million shares authorized; 274 million and 251 million | ||||||||||||||||||||||||
shares outstanding at December 31, 2018 and 2017, respectively; no par value) | 5,540 | 3,149 | ||||||||||||||||||||||
Mandatory convertible preferred stock, series A (17.25 million shares outstanding at December 31, 2020 and 2019) | Mandatory convertible preferred stock, series A (17.25 million shares outstanding at December 31, 2020 and 2019) | — | 1,693 | 1,693 | ||||||||||||||||||||
Mandatory convertible preferred stock, series B (5.75 million shares outstanding at December 31, 2020 and 2019) | Mandatory convertible preferred stock, series B (5.75 million shares outstanding at December 31, 2020 and 2019) | — | 565 | 565 | ||||||||||||||||||||
Preferred stock, series C (0.9 million shares outstanding at December 31, 2021 and 2020) | Preferred stock, series C (0.9 million shares outstanding at December 31, 2021 and 2020) | 889 | 889 | — | ||||||||||||||||||||
Common stock (750 million shares authorized; 317 million, 288 million and 292 million shares outstanding at December 31, 2021, 2020 and 2019, respectively; no par value) | Common stock (750 million shares authorized; 317 million, 288 million and 292 million shares outstanding at December 31, 2021, 2020 and 2019, respectively; no par value) | 11,862 | 7,053 | 7,480 | ||||||||||||||||||||
Retained earnings | 10,104 | 10,147 | Retained earnings | 13,548 | 13,673 | 11,130 | ||||||||||||||||||
Accumulated other comprehensive income (loss) | (764 | ) | (626 | ) | Accumulated other comprehensive income (loss) | (318) | (500) | (939) | ||||||||||||||||
Total Sempra Energy shareholders’ equity | 17,138 | 12,670 | Total Sempra Energy shareholders’ equity | 25,981 | 23,373 | 19,929 | ||||||||||||||||||
Preferred stock of subsidiary | 20 | 20 | Preferred stock of subsidiary | 20 | 20 | 20 | ||||||||||||||||||
Other noncontrolling interests | 2,090 | 2,450 | Other noncontrolling interests | 1,418 | 1,541 | 1,856 | ||||||||||||||||||
Total equity | 19,248 | 15,140 | Total equity | 27,419 | 24,934 | 21,805 | ||||||||||||||||||
Total liabilities and equity | $ | 60,638 | $ | 50,454 | Total liabilities and equity | $ | 72,045 | $ | 66,623 | $ | 65,665 |
SEMPRA ENERGY | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ | 1,126 | $ | 351 | $ | 1,519 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 1,549 | 1,490 | 1,312 | ||||||||
Deferred income taxes and investment tax credits | (182 | ) | 1,160 | 217 | |||||||
Write-off of wildfire regulatory asset | — | 351 | — | ||||||||
Impairment losses | 1,122 | 72 | 153 | ||||||||
Gain on sale of assets | (524 | ) | (3 | ) | (134 | ) | |||||
Remeasurement of equity method investment | — | — | (617 | ) | |||||||
Equity earnings, net | (176 | ) | (76 | ) | (84 | ) | |||||
Share-based compensation expense | 83 | 82 | 52 | ||||||||
Fixed-price contracts and other derivatives | (10 | ) | 7 | 21 | |||||||
Other | 315 | 67 | 10 | ||||||||
Net change in other working capital components | 173 | 57 | (59 | ) | |||||||
Insurance receivable for Aliso Canyon costs | (43 | ) | 188 | (281 | ) | ||||||
Changes in other noncurrent assets and liabilities, net | 14 | (121 | ) | 202 | |||||||
Net cash provided by operating activities | 3,447 | 3,625 | 2,311 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Expenditures for property, plant and equipment | (3,784 | ) | (3,949 | ) | (4,214 | ) | |||||
Expenditures for investments and acquisitions, net of cash, cash equivalents and restricted cash acquired | (10,376 | ) | (270 | ) | (1,504 | ) | |||||
Proceeds from sale of assets, net of cash and restricted cash sold | 1,593 | 17 | 763 | ||||||||
Distributions from investments | 10 | 26 | 25 | ||||||||
Purchases of nuclear decommissioning trust assets | (890 | ) | (1,314 | ) | (1,034 | ) | |||||
Proceeds from sales by nuclear decommissioning trust assets | 890 | 1,314 | 1,134 | ||||||||
Advances to unconsolidated affiliates | (102 | ) | (531 | ) | (25 | ) | |||||
Repayments of advances to unconsolidated affiliates | 71 | 9 | 11 | ||||||||
Other | 31 | (2 | ) | 9 | |||||||
Net cash used in investing activities | (12,557 | ) | (4,700 | ) | (4,835 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Common dividends paid | (877 | ) | (755 | ) | (686 | ) | |||||
Preferred dividends paid | (89 | ) | — | — | |||||||
Preferred dividends paid by subsidiary | (1 | ) | (1 | ) | (1 | ) | |||||
Issuances of mandatory convertible preferred stock, net of $42 in offering costs in 2018 | 2,258 | — | — | ||||||||
Issuances of common stock, net of $41 in offering costs in 2018 | 2,272 | 47 | 51 | ||||||||
Repurchases of common stock | (21 | ) | (15 | ) | (56 | ) | |||||
Issuances of debt (maturities greater than 90 days) | 9,174 | 4,509 | 2,951 | ||||||||
Payments on debt (maturities greater than 90 days) | (3,510 | ) | (2,800 | ) | (2,057 | ) | |||||
(Decrease) increase in short-term debt, net | (124 | ) | (36 | ) | 692 | ||||||
Advances from unconsolidated affiliates | — | 35 | — | ||||||||
Proceeds from sale of noncontrolling interests, net of $1, $3 and $40 in offering costs, respectively | 90 | 196 | 1,692 | ||||||||
Net distributions to noncontrolling interests | (43 | ) | (130 | ) | (63 | ) | |||||
Settlement of cross-currency swaps | (33 | ) | — | — | |||||||
Other | (90 | ) | (43 | ) | (21 | ) | |||||
Net cash provided by financing activities | 9,006 | 1,007 | 2,502 | ||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (14 | ) | 7 | (3 | ) | ||||||
Decrease in cash, cash equivalents and restricted cash | (118 | ) | (61 | ) | (25 | ) | |||||
Cash, cash equivalents and restricted cash, January 1 | 364 | 425 | 450 | ||||||||
Cash, cash equivalents and restricted cash, December 31 | $ | 246 | $ | 364 | $ | 425 |
SEMPRA ENERGY | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
CHANGES IN OTHER WORKING CAPITAL COMPONENTS | |||||||||||
(Excluding cash, cash equivalents and restricted cash, and debt due within one year) | |||||||||||
Accounts receivable | $ | (144 | ) | $ | 17 | $ | (42 | ) | |||
Income taxes receivable, net | 83 | (70 | ) | 3 | |||||||
Inventories | 23 | (49 | ) | (20 | ) | ||||||
Regulatory balancing accounts | 263 | 108 | 198 | ||||||||
Other current assets | (81 | ) | (12 | ) | (41 | ) | |||||
Accounts payable | 92 | 83 | 122 | ||||||||
Reserve for Aliso Canyon costs | 56 | 31 | (221 | ) | |||||||
Other current liabilities | (119 | ) | (51 | ) | (58 | ) | |||||
Net change in other working capital components | $ | 173 | $ | 57 | $ | (59 | ) | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||
Interest payments, net of amounts capitalized | $ | 812 | $ | 619 | $ | 532 | |||||
Income tax payments, net of refunds | 174 | 172 | 160 | ||||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||||||||
Acquisitions: | |||||||||||
Assets acquired, net of cash, cash equivalents and restricted cash | $ | 9,921 | $ | 436 | $ | 3,808 | |||||
Value of equity method investment immediately prior to acquisition | — | (28 | ) | (1,144 | ) | ||||||
Liabilities assumed | (145 | ) | (261 | ) | (1,322 | ) | |||||
Cash paid, net of cash, cash equivalents and restricted cash acquired | $ | 9,776 | $ | 147 | $ | 1,342 | |||||
Accrued capital expenditures | $ | 459 | $ | 562 | $ | 626 | |||||
Increase in capital lease obligations for investment in property, plant and equipment | 558 | 504 | — | ||||||||
Accrued Merger-related transaction costs | — | 31 | — | ||||||||
Equitization of note receivable due from unconsolidated affiliate | — | 19 | — | ||||||||
Preferred dividends declared but not paid | 36 | — | — | ||||||||
Common dividends issued in stock | 54 | 53 | 53 | ||||||||
Common dividends declared but not paid | 245 | 207 | 189 | ||||||||
Common dividends declared but not paid to noncontrolling interests | 8 | 7 | 7 |
SEMPRA ENERGY | |||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Years ended December 31, 2018, 2017 and 2016 | |||||||||||||||||||||||||||
Preferred stock | Common stock | Retained earnings | Accumulated other comprehensive income (loss) | Sempra Energy shareholders' equity | Non- controlling interests | Total equity | |||||||||||||||||||||
Balance at December 31, 2015 | $ | — | $ | 2,621 | $ | 9,994 | $ | (806 | ) | $ | 11,809 | $ | 770 | $ | 12,579 | ||||||||||||
Cumulative-effect adjustment from | |||||||||||||||||||||||||||
change in accounting principle | 107 | 107 | 107 | ||||||||||||||||||||||||
Net income | 1,371 | 1,371 | 148 | 1,519 | |||||||||||||||||||||||
Other comprehensive income | 38 | 38 | 14 | 52 | |||||||||||||||||||||||
Share-based compensation expense | 52 | 52 | 52 | ||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||
Common stock ($3.02/share) | (754 | ) | (754 | ) | (754 | ) | |||||||||||||||||||||
Preferred dividends of subsidiary | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||
Issuances of common stock | 104 | 104 | 104 | ||||||||||||||||||||||||
Repurchases of common stock | (56 | ) | (56 | ) | (56 | ) | |||||||||||||||||||||
Other noncontrolling interest activities: | |||||||||||||||||||||||||||
Equity contributions | 3 | 3 | |||||||||||||||||||||||||
Distributions | (65 | ) | (65 | ) | |||||||||||||||||||||||
Sales, net of offering costs | 261 | 20 | 281 | 1,420 | 1,701 | ||||||||||||||||||||||
Balance at December 31, 2016 | — | 2,982 | 10,717 | (748 | ) | 12,951 | 2,290 | 15,241 | |||||||||||||||||||
Net income | 257 | 257 | 94 | 351 | |||||||||||||||||||||||
Other comprehensive income | 122 | 122 | 20 | 142 | |||||||||||||||||||||||
Share-based compensation expense | 82 | 82 | 82 | ||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||
Common stock ($3.29/share) | (826 | ) | (826 | ) | (826 | ) | |||||||||||||||||||||
Preferred dividends of subsidiary | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||
Issuances of common stock | 100 | 100 | 100 | ||||||||||||||||||||||||
Repurchases of common stock | (15 | ) | (15 | ) | (15 | ) | |||||||||||||||||||||
Other noncontrolling interest activities: | |||||||||||||||||||||||||||
Equity contributions | 2 | 2 | |||||||||||||||||||||||||
Distributions | (132 | ) | (132 | ) | |||||||||||||||||||||||
Sales, net of offering costs | 196 | 196 | |||||||||||||||||||||||||
Balance at December 31, 2017 | — | 3,149 | 10,147 | (626 | ) | 12,670 | 2,470 | 15,140 | |||||||||||||||||||
Cumulative-effect adjustments from | |||||||||||||||||||||||||||
change in accounting principles | 2 | (3 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||
Net income | 1,050 | 1,050 | 76 | 1,126 | |||||||||||||||||||||||
Other comprehensive (loss) income | (135 | ) | (135 | ) | 2 | (133 | ) | ||||||||||||||||||||
Share-based compensation expense | 83 | 83 | 83 | ||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||
Series A preferred stock ($6.10/share) | (105 | ) | (105 | ) | (105 | ) | |||||||||||||||||||||
Series B preferred stock ($3.41/share) | (20 | ) | (20 | ) | (20 | ) | |||||||||||||||||||||
Common stock ($3.58/share) | (969 | ) | (969 | ) | (969 | ) | |||||||||||||||||||||
Preferred dividends of subsidiary | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||
Issuance of series A preferred stock | 1,693 | 1,693 | 1,693 | ||||||||||||||||||||||||
Issuance of series B preferred stock | 565 | 565 | 565 | ||||||||||||||||||||||||
Issuances of common stock | 2,326 | 2,326 | 2,326 | ||||||||||||||||||||||||
Repurchases of common stock | (21 | ) | (21 | ) | (21 | ) | |||||||||||||||||||||
Other noncontrolling interest activities: | |||||||||||||||||||||||||||
Equity contributions | 66 | 66 | |||||||||||||||||||||||||
Distributions | (110 | ) | (110 | ) | |||||||||||||||||||||||
Purchases | (1 | ) | (1 | ) | (7 | ) | (8 | ) | |||||||||||||||||||
Sales, net of offering costs | 4 | 4 | 86 | 90 | |||||||||||||||||||||||
Increase from acquisition | 13 | 13 | |||||||||||||||||||||||||
Decrease from divestiture | (486 | ) | (486 | ) | |||||||||||||||||||||||
Balance at December 31, 2018 | $ | 2,258 | $ | 5,540 | $ | 10,104 | $ | (764 | ) | $ | 17,138 | $ | 2,110 | $ | 19,248 | ||||||||||||
See Notes to Consolidated Financial Statements. |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017(1) | 2016(1) | |||||||||
Operating revenues | |||||||||||
Electric | $ | 4,003 | $ | 3,935 | $ | 3,754 | |||||
Natural gas | 565 | 541 | 499 | ||||||||
Total operating revenues | 4,568 | 4,476 | 4,253 | ||||||||
Operating expenses | |||||||||||
Cost of electric fuel and purchased power | 1,370 | 1,293 | 1,187 | ||||||||
Cost of natural gas | 152 | 164 | 127 | ||||||||
Operation and maintenance | 1,058 | 1,024 | 1,062 | ||||||||
Depreciation and amortization | 688 | 670 | 646 | ||||||||
Franchise fees and other taxes | 290 | 265 | 255 | ||||||||
Write-off of wildfire regulatory asset | — | 351 | — | ||||||||
Total operating expenses | 3,558 | 3,767 | 3,277 | ||||||||
Operating income | 1,010 | 709 | 976 | ||||||||
Other income, net | 56 | 70 | 64 | ||||||||
Interest income | 4 | — | — | ||||||||
Interest expense | (221 | ) | (203 | ) | (195 | ) | |||||
Income before income taxes | 849 | 576 | 845 | ||||||||
Income tax expense | (173 | ) | (155 | ) | (280 | ) | |||||
Net income | 676 | 421 | 565 | ||||||||
(Earnings) losses attributable to noncontrolling interest | (7 | ) | (14 | ) | 5 | ||||||
Earnings attributable to common shares | $ | 669 | $ | 407 | $ | 570 |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Years ended December 31, 2018, 2017 and 2016 | |||||||||||||||||||
SDG&E shareholder's equity | |||||||||||||||||||
Pretax amount | Income tax (expense) benefit | Net-of-tax amount | Noncontrolling interest (after tax) | Total | |||||||||||||||
2018: | |||||||||||||||||||
Net income | $ | 842 | $ | (173 | ) | $ | 669 | $ | 7 | $ | 676 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Financial instruments | — | — | — | 8 | 8 | ||||||||||||||
Pension and other postretirement benefits | (2 | ) | — | (2 | ) | — | (2 | ) | |||||||||||
Total other comprehensive (loss) income | (2 | ) | — | (2 | ) | 8 | 6 | ||||||||||||
Comprehensive income | $ | 840 | $ | (173 | ) | $ | 667 | $ | 15 | $ | 682 | ||||||||
2017: | |||||||||||||||||||
Net income | $ | 562 | $ | (155 | ) | $ | 407 | $ | 14 | $ | 421 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Financial instruments | — | — | — | 11 | 11 | ||||||||||||||
Pension and other postretirement benefits | (1 | ) | 1 | — | — | — | |||||||||||||
Total other comprehensive (loss) income | (1 | ) | 1 | — | 11 | 11 | |||||||||||||
Comprehensive income | $ | 561 | $ | (154 | ) | $ | 407 | $ | 25 | $ | 432 | ||||||||
2016: | |||||||||||||||||||
Net income (loss) | $ | 850 | $ | (280 | ) | $ | 570 | $ | (5 | ) | $ | 565 | |||||||
Other comprehensive income (loss): | |||||||||||||||||||
Financial instruments | — | — | — | 10 | 10 | ||||||||||||||
Total other comprehensive income | — | — | — | 10 | 10 | ||||||||||||||
Comprehensive income | $ | 850 | $ | (280 | ) | $ | 570 | $ | 5 | $ | 575 | ||||||||
See Notes to Consolidated Financial Statements. |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars in millions) | |||||||
December 31, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 8 | $ | 12 | |||
Restricted cash | 11 | 6 | |||||
Accounts receivable – trade, net | 368 | 362 | |||||
Accounts receivable – other, net | 106 | 79 | |||||
Inventories | 102 | 105 | |||||
Prepaid expenses | 74 | 58 | |||||
Regulatory assets | 123 | 316 | |||||
Fixed-price contracts and other derivatives | 82 | 42 | |||||
Greenhouse gas allowances | 15 | 116 | |||||
Other | 5 | 4 | |||||
Total current assets | 894 | 1,100 | |||||
Other assets: | |||||||
Restricted cash | 18 | 11 | |||||
Regulatory assets | 454 | 451 | |||||
Nuclear decommissioning trusts | 974 | 1,033 | |||||
Greenhouse gas allowances | 155 | 83 | |||||
Sundry | 420 | 328 | |||||
Total other assets | 2,021 | 1,906 | |||||
Property, plant and equipment: | |||||||
Property, plant and equipment | 21,662 | 19,787 | |||||
Less accumulated depreciation and amortization | (5,352 | ) | (4,949 | ) | |||
Property, plant and equipment, net ($295 and $321 at December 31, 2018 and | |||||||
2017, respectively, related to VIE) | 16,310 | 14,838 | |||||
Total assets | $ | 19,225 | $ | 17,844 |
SEMPRA ENERGY | |||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net income | $ | 1,463 | $ | 4,105 | $ | 2,362 | |||||||||||
Less: Income from discontinued operations, net of income tax | — | (1,850) | (363) | ||||||||||||||
Income from continuing operations, net of income tax | 1,463 | 2,255 | 1,999 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 1,855 | 1,666 | 1,569 | ||||||||||||||
Deferred income taxes and investment tax credits | (78) | 159 | 189 | ||||||||||||||
Impairment losses | 3 | 1 | 43 | ||||||||||||||
(Gain) loss on sale of assets | (36) | 3 | (63) | ||||||||||||||
Equity earnings | (1,343) | (1,015) | (580) | ||||||||||||||
Foreign currency transaction losses (gains), net | 18 | 25 | (21) | ||||||||||||||
Share-based compensation expense | 63 | 71 | 75 | ||||||||||||||
Fixed-price contracts and other derivatives | 206 | (7) | (11) | ||||||||||||||
Other | 167 | 139 | 58 | ||||||||||||||
Net change in other working capital components: | |||||||||||||||||
Accounts receivable | (599) | (328) | (97) | ||||||||||||||
Due to/from unconsolidated affiliates, net | (1) | 12 | 1 | ||||||||||||||
Income taxes receivable/payable, net | (38) | (94) | (166) | ||||||||||||||
Inventories | (87) | (35) | (22) | ||||||||||||||
Other current assets | (220) | 38 | (88) | ||||||||||||||
Accounts payable | 263 | 74 | 17 | ||||||||||||||
Regulatory balancing accounts, net | 249 | (231) | 13 | ||||||||||||||
Reserve for Aliso Canyon costs | 1,532 | 141 | (144) | ||||||||||||||
Other current liabilities | (105) | (127) | (99) | ||||||||||||||
Intercompany activities with discontinued operations, net | — | — | 378 | ||||||||||||||
Insurance receivable for Aliso Canyon costs | 85 | (106) | 122 | ||||||||||||||
Distributions from investments | 941 | 651 | 247 | ||||||||||||||
Wildfire fund, current and noncurrent | — | — | (323) | ||||||||||||||
Reserve for Aliso Canyon costs, noncurrent | — | 294 | — | ||||||||||||||
Changes in other noncurrent assets and liabilities, net | (496) | 56 | (399) | ||||||||||||||
Net cash provided by continuing operations | 3,842 | 3,642 | 2,698 | ||||||||||||||
Net cash (used in) provided by discontinued operations | — | (1,051) | 390 | ||||||||||||||
Net cash provided by operating activities | 3,842 | 2,591 | 3,088 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||
Expenditures for property, plant and equipment | (5,015) | (4,676) | (3,708) | ||||||||||||||
Expenditures for investments and acquisitions | (633) | (652) | (1,797) | ||||||||||||||
Proceeds from sale of assets | 38 | 19 | 899 | ||||||||||||||
Distributions from investments | 366 | 761 | 9 | ||||||||||||||
Purchases of nuclear decommissioning trust assets | (961) | (1,439) | (914) | ||||||||||||||
Proceeds from sales of nuclear decommissioning trust assets | 961 | 1,439 | 914 | ||||||||||||||
Advances to unconsolidated affiliates | (8) | (92) | (16) | ||||||||||||||
Repayments of advances to unconsolidated affiliates | 38 | 7 | 3 | ||||||||||||||
Disbursement for note receivable | (305) | — | — | ||||||||||||||
Intercompany activities with discontinued operations, net | — | — | 8 | ||||||||||||||
Other | 11 | 15 | 21 | ||||||||||||||
Net cash used in continuing operations | (5,508) | (4,618) | (4,581) | ||||||||||||||
Net cash provided by (used in) discontinued operations | — | 5,171 | (12) | ||||||||||||||
Net cash (used in) provided by investing activities | (5,508) | 553 | (4,593) |
SEMPRA ENERGY | |||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Common dividends paid | (1,331) | (1,174) | (993) | ||||||||||||||
Preferred dividends paid | (99) | (157) | (142) | ||||||||||||||
Issuances of preferred stock, net | — | 891 | — | ||||||||||||||
Issuances of common stock, net | 5 | 11 | 1,830 | ||||||||||||||
Repurchases of common stock | (339) | (566) | (26) | ||||||||||||||
Issuances of debt (maturities greater than 90 days) | 3,773 | 6,051 | 4,296 | ||||||||||||||
Payments on debt (maturities greater than 90 days) and finance leases | (5,489) | (5,864) | (3,667) | ||||||||||||||
Increase (decrease) in short-term debt, net | 1,913 | (1,759) | 656 | ||||||||||||||
Advances from unconsolidated affiliates | 40 | 64 | 155 | ||||||||||||||
Purchases of noncontrolling interests | (224) | (248) | (30) | ||||||||||||||
Proceeds from sales of noncontrolling interests, net | 3,206 | 26 | 5 | ||||||||||||||
Contributions from noncontrolling interests, net | 4 | 1 | 98 | ||||||||||||||
Intercompany activities with discontinued operations, net | — | — | (266) | ||||||||||||||
Other | (199) | (50) | (49) | ||||||||||||||
Net cash provided by (used in) continuing operations | 1,260 | (2,774) | 1,867 | ||||||||||||||
Net cash provided by (used in) discontinued operations | — | 401 | (392) | ||||||||||||||
Net cash provided by (used in) financing activities | 1,260 | (2,373) | 1,475 | ||||||||||||||
Effect of exchange rate changes in continuing operations | 2 | — | — | ||||||||||||||
Effect of exchange rate changes in discontinued operations | — | (3) | 1 | ||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2 | (3) | 1 | ||||||||||||||
(Decrease) increase in cash, cash equivalents and restricted cash, including discontinued operations | (404) | 768 | (29) | ||||||||||||||
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 | 985 | 217 | 246 | ||||||||||||||
Cash, cash equivalents and restricted cash, including discontinued operations, December 31 | $ | 581 | $ | 985 | $ | 217 | |||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||||||||
Interest payments, net of amounts capitalized | $ | 1,163 | $ | 1,046 | $ | 1,051 | |||||||||||
Income tax payments, including discontinued operations, net of refunds | 230 | 1,385 | 360 | ||||||||||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||||||||||||||
Accrued commercial paper proceeds | $ | — | $ | — | $ | 67 | |||||||||||
Accrued interest receivable from unconsolidated affiliate | — | — | 55 | ||||||||||||||
Contribution to Cameron LNG JV | — | 50 | — | ||||||||||||||
Distribution from Cameron LNG JV | — | 50 | — | ||||||||||||||
Increase in Cameron LNG JV investment for guarantee | 22 | — | — | ||||||||||||||
Repayment of advances from unconsolidated affiliate in lieu of distribution | 45 | — | — | ||||||||||||||
Accrued capital expenditures | 591 | 535 | 515 | ||||||||||||||
Increase in finance lease obligations for investment in PP&E, net | 43 | 77 | 38 | ||||||||||||||
Derecognized PP&E for net investment in sales-type lease | 44 | — | — | ||||||||||||||
Increase in ARO for investment in PP&E | 153 | 142 | 36 | ||||||||||||||
Equitization of long-term debt for deficit held by NCI | — | 22 | — | ||||||||||||||
Accrued purchase price adjustment for sale of NCI | 13 | — | — | ||||||||||||||
Issuance of common stock in exchange for NCI and related AOCI | 1,373 | — | — | ||||||||||||||
Common dividends issued in stock | — | 22 | 55 | ||||||||||||||
Common dividends declared but not paid | 349 | 301 | 283 | ||||||||||||||
Conversion of mandatory convertible preferred stock | 2,258 | — | — | ||||||||||||||
Preferred dividends declared but not paid | 11 | 47 | 36 |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||
CONSOLIDATED BALANCE SHEETS (CONTINUED) | |||||||
(Dollars in millions) | |||||||
December 31, 2018 | December 31, 2017 | ||||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Short-term debt | $ | 291 | $ | 253 | |||
Accounts payable | 439 | 501 | |||||
Due to unconsolidated affiliates | 61 | 40 | |||||
Accrued compensation and benefits | 117 | 122 | |||||
Accrued franchise fees | 64 | 59 | |||||
Regulatory liabilities | 53 | 18 | |||||
Current portion of long-term debt ($28 and $10 at December 31, 2018 and | |||||||
2017, respectively, related to VIE) | 81 | 220 | |||||
Customer deposits | 70 | 69 | |||||
Greenhouse gas obligations | 15 | 116 | |||||
Asset retirement obligations | 96 | 77 | |||||
Other | 141 | 147 | |||||
Total current liabilities | 1,428 | 1,622 | |||||
Long-term debt ($190 and $284 at December 31, 2018 and 2017, respectively, | |||||||
related to the VIE) | 6,138 | 5,335 | |||||
Deferred credits and other liabilities: | |||||||
Pension and other postretirement benefit plan obligations, net of plan assets | 212 | 182 | |||||
Deferred income taxes | 1,616 | 1,530 | |||||
Deferred investment tax credits | 16 | 18 | |||||
Regulatory liabilities | 2,404 | 2,225 | |||||
Asset retirement obligations | 778 | 762 | |||||
Greenhouse gas obligations | 30 | — | |||||
Deferred credits and other | 488 | 544 | |||||
Total deferred credits and other liabilities | 5,544 | 5,261 | |||||
Commitments and contingencies (Note 16) | |||||||
Equity: | |||||||
Preferred stock (45 million shares authorized; none issued) | — | — | |||||
Common stock (255 million shares authorized; 117 million shares outstanding; | |||||||
no par value) | 1,338 | 1,338 | |||||
Retained earnings | 4,687 | 4,268 | |||||
Accumulated other comprehensive income (loss) | (10 | ) | (8 | ) | |||
Total SDG&E shareholder’s equity | 6,015 | 5,598 | |||||
Noncontrolling interest | 100 | 28 | |||||
Total equity | 6,115 | 5,626 | |||||
Total liabilities and equity | $ | 19,225 | $ | 17,844 |
SEMPRA ENERGY | |||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
Years ended December 31, 2021, 2020 and 2019 | |||||||||||||||||||||||||||||||||||||||||
Preferred stock | Common stock | Retained earnings | Accumulated other comprehensive income (loss) | Sempra Energy shareholders' equity | Non- controlling interests | Total equity | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 2,258 | $ | 5,540 | $ | 10,104 | $ | (764) | $ | 17,138 | $ | 2,110 | $ | 19,248 | |||||||||||||||||||||||||||
Adoption of ASU 2016-02 | 17 | 17 | 17 | ||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2018-02 | 40 | (42) | (2) | (2) | |||||||||||||||||||||||||||||||||||||
Adjusted balance at December 31, 2018 | 2,258 | 5,540 | 10,161 | (806) | 17,153 | 2,110 | 19,263 | ||||||||||||||||||||||||||||||||||
Net income | 2,198 | 2,198 | 164 | 2,362 | |||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (133) | (133) | (7) | (140) | |||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 75 | 75 | 75 | ||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Series A preferred stock ($6.00/share) | (103) | (103) | (103) | ||||||||||||||||||||||||||||||||||||||
Series B preferred stock ($6.75/share) | (39) | (39) | (39) | ||||||||||||||||||||||||||||||||||||||
Common stock ($3.87/share) | (1,086) | (1,086) | (1,086) | ||||||||||||||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||
Issuances of common stock | 1,885 | 1,885 | 1,885 | ||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (26) | (26) | (26) | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||||||||||||||||
Contributions | 175 | 175 | |||||||||||||||||||||||||||||||||||||||
Distributions | 5 | 5 | (103) | (98) | |||||||||||||||||||||||||||||||||||||
Purchases | (3) | (3) | (27) | (30) | |||||||||||||||||||||||||||||||||||||
Sale | 4 | 4 | 1 | 5 | |||||||||||||||||||||||||||||||||||||
Acquisition | 3 | 3 | |||||||||||||||||||||||||||||||||||||||
Deconsolidations | (440) | (440) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 2,258 | 7,480 | 11,130 | (939) | 19,929 | 1,876 | 21,805 | ||||||||||||||||||||||||||||||||||
Adoption of ASU 2016-13 | (7) | (7) | (2) | (9) | |||||||||||||||||||||||||||||||||||||
Adjusted balance at December 31, 2019 | 2,258 | 7,480 | 11,123 | (939) | 19,922 | 1,874 | 21,796 | ||||||||||||||||||||||||||||||||||
Net income | 3,933 | 3,933 | 172 | 4,105 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 446 | 446 | (24) | 422 | |||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 71 | 71 | 71 | ||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Series A preferred stock ($6.00/share) | (104) | (104) | (104) | ||||||||||||||||||||||||||||||||||||||
Series B preferred stock ($6.75/share) | (39) | (39) | (39) | ||||||||||||||||||||||||||||||||||||||
Series C preferred stock ($27.90/share) | (25) | (25) | (25) | ||||||||||||||||||||||||||||||||||||||
Common stock ($4.18/share) | (1,214) | (1,214) | (1,214) | ||||||||||||||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||
Issuance of Series C preferred stock | 889 | 889 | 889 | ||||||||||||||||||||||||||||||||||||||
Issuances of common stock | 33 | 33 | 33 | ||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (566) | (566) | (566) | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||||||||||||||||
Contributions | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Distributions | (1) | (1) | |||||||||||||||||||||||||||||||||||||||
Purchases | 34 | (7) | 27 | (275) | (248) | ||||||||||||||||||||||||||||||||||||
Sale | 1 | 1 | 27 | 28 | |||||||||||||||||||||||||||||||||||||
Acquisition | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Equitization of long-term debt for deficit held by NCI | 22 | 22 | |||||||||||||||||||||||||||||||||||||||
Deconsolidation | (236) | (236) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 3,147 | 7,053 | 13,673 | (500) | 23,373 | 1,561 | 24,934 |
SEMPRA ENERGY | |||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED) | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
Years ended December 31, 2021, 2020 and 2019 | |||||||||||||||||||||||||||||||||||||||||
Preferred stock | Common stock | Retained earnings | Accumulated other comprehensive income (loss) | Sempra Energy shareholders' equity | Non- controlling interests | Total equity | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 3,147 | $ | 7,053 | $ | 13,673 | $ | (500) | $ | 23,373 | $ | 1,561 | $ | 24,934 | |||||||||||||||||||||||||||
Net income | 1,318 | 1,318 | 145 | 1,463 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income | 160 | 160 | 11 | 171 | |||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 63 | 63 | 63 | ||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Series B preferred stock ($3.38/share) | (19) | (19) | (19) | ||||||||||||||||||||||||||||||||||||||
Series C preferred stock ($48.75/share) | (44) | (44) | (44) | ||||||||||||||||||||||||||||||||||||||
Common stock ($4.40/share) | (1,379) | (1,379) | (1,379) | ||||||||||||||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||
Conversion of series A preferred stock | (1,693) | 1,693 | — | — | |||||||||||||||||||||||||||||||||||||
Conversion of series B preferred stock | (565) | 565 | — | — | |||||||||||||||||||||||||||||||||||||
Issuances of common stock | 5 | 5 | 5 | ||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (339) | (339) | (339) | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||||||||||||||||
Contributions | 4 | 4 | |||||||||||||||||||||||||||||||||||||||
Purchases | 1,459 | (44) | 1,415 | (1,567) | (152) | ||||||||||||||||||||||||||||||||||||
Sales | 1,363 | 66 | 1,429 | 1,283 | 2,712 | ||||||||||||||||||||||||||||||||||||
Deconsolidation | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 889 | $ | 11,862 | $ | 13,548 | $ | (318) | $ | 25,981 | $ | 1,438 | $ | 27,419 |
SAN DIEGO GAS & ELECTRIC COMPANY | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Operating revenues | ||||||||||||||||||||
Electric | $ | 4,666 | $ | 4,619 | $ | 4,267 | ||||||||||||||
Natural gas | 838 | 694 | 658 | |||||||||||||||||
Total operating revenues | 5,504 | 5,313 | 4,925 | |||||||||||||||||
Operating expenses | ||||||||||||||||||||
Cost of electric fuel and purchased power | 1,069 | 1,191 | 1,194 | |||||||||||||||||
Cost of natural gas | 242 | 162 | 176 | |||||||||||||||||
Operation and maintenance | 1,587 | 1,455 | 1,181 | |||||||||||||||||
Depreciation and amortization | 889 | 801 | 760 | |||||||||||||||||
Franchise fees and other taxes | 350 | 331 | 301 | |||||||||||||||||
Total operating expenses | 4,137 | 3,940 | 3,612 | |||||||||||||||||
Operating income | 1,367 | 1,373 | 1,313 | |||||||||||||||||
Other income, net | 64 | 52 | 39 | |||||||||||||||||
Interest income | 1 | 2 | 4 | |||||||||||||||||
Interest expense | (412) | (413) | (411) | |||||||||||||||||
Income before income taxes | 1,020 | 1,014 | 945 | |||||||||||||||||
Income tax expense | (201) | (190) | (171) | |||||||||||||||||
Net income | 819 | 824 | 774 | |||||||||||||||||
Earnings attributable to noncontrolling interest | — | — | (7) | |||||||||||||||||
Earnings attributable to common shares | $ | 819 | $ | 824 | $ | 767 |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Years ended December 31, 2021, 2020 and 2019 | |||||||||||||||||||||||||||||
SDG&E shareholder's equity | |||||||||||||||||||||||||||||
Pretax amount | Income tax (expense) benefit | Net-of-tax amount | Noncontrolling interest (after tax) | Total | |||||||||||||||||||||||||
2021: | |||||||||||||||||||||||||||||
Net income/Comprehensive income | $ | 1,020 | $ | (201) | $ | 819 | $ | — | $ | 819 | |||||||||||||||||||
2020: | |||||||||||||||||||||||||||||
Net income | $ | 1,014 | $ | (190) | $ | 824 | $ | — | $ | 824 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Pension and other postretirement benefits | 8 | (2) | 6 | — | 6 | ||||||||||||||||||||||||
Total other comprehensive income | 8 | (2) | 6 | — | 6 | ||||||||||||||||||||||||
Comprehensive income | $ | 1,022 | $ | (192) | $ | 830 | $ | — | $ | 830 | |||||||||||||||||||
2019: | |||||||||||||||||||||||||||||
Net income | $ | 938 | $ | (171) | $ | 767 | $ | 7 | $ | 774 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Financial instruments | — | — | — | 2 | 2 | ||||||||||||||||||||||||
Pension and other postretirement benefits | (6) | 2 | (4) | — | (4) | ||||||||||||||||||||||||
Total other comprehensive (loss) income | (6) | 2 | (4) | 2 | (2) | ||||||||||||||||||||||||
Comprehensive income | $ | 932 | $ | (169) | $ | 763 | $ | 9 | $ | 772 |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 25 | $ | 262 | $ | 10 | |||||||||||
Accounts receivable – trade, net | 715 | 573 | 398 | ||||||||||||||
Accounts receivable – other, net | 78 | 143 | 119 | ||||||||||||||
Income taxes receivable, net | 9 | — | 128 | ||||||||||||||
Inventories | 123 | 104 | 94 | ||||||||||||||
Prepaid expenses | 174 | 153 | 120 | ||||||||||||||
Regulatory assets | 231 | 174 | 209 | ||||||||||||||
Greenhouse gas allowances | 13 | 113 | 13 | ||||||||||||||
Other current assets | 63 | 78 | 67 | ||||||||||||||
Total current assets | 1,431 | 1,600 | 1,158 | ||||||||||||||
Other assets: | |||||||||||||||||
Regulatory assets | 786 | 534 | 440 | ||||||||||||||
Greenhouse gas allowances | 111 | 83 | 189 | ||||||||||||||
Nuclear decommissioning trusts | 1,012 | 1,019 | 1,082 | ||||||||||||||
Right-of-use assets – operating leases | 185 | 102 | 130 | ||||||||||||||
Wildfire fund | 331 | 363 | 392 | ||||||||||||||
Other long-term assets | 154 | 189 | 202 | ||||||||||||||
Total other assets | 2,579 | 2,290 | 2,435 | ||||||||||||||
Property, plant and equipment: | |||||||||||||||||
Property, plant and equipment | 26,456 | 24,436 | 22,504 | ||||||||||||||
Less accumulated depreciation and amortization | (6,408) | (6,015) | (5,537) | ||||||||||||||
Property, plant and equipment, net | 20,048 | 18,421 | 16,967 | ||||||||||||||
Total assets | $ | 24,058 | $ | 22,311 | $ | 20,560 |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||
CONSOLIDATED BALANCE SHEETS (CONTINUED) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Short-term debt | $ | 776 | $ | — | $ | 80 | |||||||||||
Accounts payable | 588 | 553 | 496 | ||||||||||||||
Due to unconsolidated affiliates | 97 | 64 | 53 | ||||||||||||||
Accrued compensation and benefits | 148 | 135 | 138 | ||||||||||||||
Regulatory liabilities | 14 | 61 | 76 | ||||||||||||||
Current portion of long-term debt and finance leases | 49 | 611 | 56 | ||||||||||||||
Customer deposits | 30 | 56 | 74 | ||||||||||||||
Greenhouse gas obligations | 13 | 113 | 13 | ||||||||||||||
Asset retirement obligations | 86 | 117 | 95 | ||||||||||||||
Other current liabilities | 310 | 301 | 229 | ||||||||||||||
Total current liabilities | 2,111 | 2,011 | 1,310 | ||||||||||||||
Long-term debt and finance leases | 7,581 | 6,866 | 6,306 | ||||||||||||||
Deferred credits and other liabilities: | |||||||||||||||||
Regulatory liabilities | 2,302 | 2,195 | 2,319 | ||||||||||||||
Greenhouse gas obligations | 31 | — | 62 | ||||||||||||||
Pension obligation, net of plan assets | 25 | 92 | 153 | ||||||||||||||
Deferred income taxes | 2,275 | 2,019 | 1,848 | ||||||||||||||
Asset retirement obligations | 804 | 759 | 771 | ||||||||||||||
Deferred credits and other | 680 | 639 | 691 | ||||||||||||||
Total deferred credits and other liabilities | 6,117 | 5,704 | 5,844 | ||||||||||||||
Commitments and contingencies (Note 16) | 0 | 0 | 0 | ||||||||||||||
Shareholder’s equity: | |||||||||||||||||
Preferred stock (45 million shares authorized; NaN issued) | — | — | — | ||||||||||||||
Common stock (255 million shares authorized; 117 million shares outstanding; no par value) | 1,660 | 1,660 | 1,660 | ||||||||||||||
Retained earnings | 6,599 | 6,080 | 5,456 | ||||||||||||||
Accumulated other comprehensive income (loss) | (10) | (10) | (16) | ||||||||||||||
Total shareholder’s equity | 8,249 | 7,730 | 7,100 | ||||||||||||||
Total liabilities and shareholder’s equity | $ | 24,058 | $ | 22,311 | $ | 20,560 |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ | 676 | $ | 421 | $ | 565 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 688 | 670 | 646 | ||||||||
Deferred income taxes and investment tax credits | 39 | (10 | ) | 258 | |||||||
Write-off of wildfire regulatory asset | — | 351 | — | ||||||||
Fixed-price contracts and other derivatives | (3 | ) | (2 | ) | (3 | ) | |||||
Other | (14 | ) | (22 | ) | (35 | ) | |||||
Changes in other noncurrent assets and liabilities, net | 9 | (30 | ) | (9 | ) | ||||||
Changes in working capital components: | |||||||||||
Accounts receivable | 30 | (76 | ) | (31 | ) | ||||||
Due to/from affiliates, net | (2 | ) | (10 | ) | (19 | ) | |||||
Inventories | 3 | (25 | ) | (5 | ) | ||||||
Other current assets | (6 | ) | 9 | 25 | |||||||
Income taxes | 23 | 136 | (115 | ) | |||||||
Accounts payable | (1 | ) | 75 | 39 | |||||||
Regulatory balancing accounts | 138 | 56 | 35 | ||||||||
Other current liabilities | 4 | 4 | (28 | ) | |||||||
Net cash provided by operating activities | 1,584 | 1,547 | 1,323 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Expenditures for property, plant and equipment | (1,542 | ) | (1,555 | ) | (1,399 | ) | |||||
Purchases of nuclear decommissioning trust assets | (890 | ) | (1,314 | ) | (1,034 | ) | |||||
Proceeds from sales by nuclear decommissioning trusts | 890 | 1,314 | 1,134 | ||||||||
Decrease (increase) in loans to affiliate, net | — | 31 | (31 | ) | |||||||
Other | — | 9 | 6 | ||||||||
Net cash used in investing activities | (1,542 | ) | (1,515 | ) | (1,324 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Common dividends paid | (250 | ) | (450 | ) | (175 | ) | |||||
Issuances of debt (maturities greater than 90 days) | 618 | 398 | 498 | ||||||||
Payments on debt (maturities greater than 90 days) | (492 | ) | (186 | ) | (204 | ) | |||||
Increase (decrease) in short-term debt, net | 38 | 253 | (114 | ) | |||||||
Capital contributions (distributions) made to (by) VIE, net | 57 | (34 | ) | (21 | ) | ||||||
Debt issuance costs | (5 | ) | (4 | ) | (6 | ) | |||||
Net cash used in financing activities | (34 | ) | (23 | ) | (22 | ) | |||||
Increase (decrease) in cash, cash equivalents and restricted cash | 8 | 9 | (23 | ) | |||||||
Cash, cash equivalents and restricted cash, January 1 | 29 | 20 | 43 | ||||||||
Cash, cash equivalents and restricted cash, December 31 | $ | 37 | $ | 29 | $ | 20 | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||
Interest payments, net of amounts capitalized | $ | 214 | $ | 195 | $ | 187 | |||||
Income tax payments, net | 112 | 27 | 137 | ||||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||||||||
Accrued capital expenditures | $ | 159 | $ | 217 | $ | 227 | |||||
Increase in capital lease obligations for investment in property, plant and equipment | 550 | 500 | — |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net income | $ | 819 | $ | 824 | $ | 774 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 889 | 801 | 760 | ||||||||||||||
Deferred income taxes and investment tax credits | 153 | 35 | 105 | ||||||||||||||
Other | (14) | 27 | 13 | ||||||||||||||
Net change in other working capital components: | |||||||||||||||||
Accounts receivable | (105) | (134) | (15) | ||||||||||||||
Due to/from unconsolidated affiliates, net | 33 | 11 | (8) | ||||||||||||||
Income taxes receivable/payable, net | (20) | 129 | (126) | ||||||||||||||
Inventories | (19) | (10) | 4 | ||||||||||||||
Other current assets | — | 4 | (19) | ||||||||||||||
Accounts payable | 7 | 31 | 32 | ||||||||||||||
Regulatory balancing accounts, net | (57) | (71) | (101) | ||||||||||||||
Other current liabilities | (92) | (100) | 4 | ||||||||||||||
Wildfire fund, current and noncurrent | — | — | (323) | ||||||||||||||
Changes in other noncurrent assets and liabilities, net | (218) | (158) | (10) | ||||||||||||||
Net cash provided by operating activities | 1,376 | 1,389 | 1,090 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||
Expenditures for property, plant and equipment | (2,220) | (1,942) | (1,522) | ||||||||||||||
Purchases of nuclear decommissioning trust assets | (961) | (1,439) | (914) | ||||||||||||||
Proceeds from sales of nuclear decommissioning trust assets | 961 | 1,439 | 914 | ||||||||||||||
Other | 7 | 8 | — | ||||||||||||||
Net cash used in investing activities | (2,213) | (1,934) | (1,522) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Common dividends paid | (300) | (200) | — | ||||||||||||||
Equity contribution from Sempra Energy | — | — | 322 | ||||||||||||||
Issuances of debt (maturities greater than 90 days) | 1,120 | 1,598 | 400 | ||||||||||||||
Payments on debt maturities (greater than 90 days) and finance leases | (613) | (510) | (274) | ||||||||||||||
Increase (decrease) in short-term debt, net | 401 | (80) | (211) | ||||||||||||||
Contributions from noncontrolling interest, net | — | — | 172 | ||||||||||||||
Debt issuance costs | (8) | (11) | (4) | ||||||||||||||
Net cash provided by financing activities | 600 | 797 | 405 | ||||||||||||||
(Decrease) increase in cash, cash equivalents and restricted cash | (237) | 252 | (27) | ||||||||||||||
Cash, cash equivalents and restricted cash, January 1 | 262 | 10 | 37 | ||||||||||||||
Cash and cash equivalents, December 31 | $ | 25 | $ | 262 | $ | 10 | |||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||||||||
Interest payments, net of amounts capitalized | $ | 402 | $ | 404 | $ | 405 | |||||||||||
Income tax payments, net of refunds | 67 | 25 | 191 | ||||||||||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||||||||||||||
Accrued capital expenditures | $ | 228 | $ | 199 | $ | 174 | |||||||||||
Increase in finance lease obligations for investment in PP&E | 24 | 30 | 16 | ||||||||||||||
Increase (decrease) in ARO for investment in PP&E | 14 | 31 | (1) |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Years ended December 31, 2018, 2017 and 2016 | |||||||||||||||||||||||
Common stock | Retained earnings | Accumulated other comprehensive income (loss) | SDG&E shareholder's equity | Noncontrolling interest | Total equity | ||||||||||||||||||
Balance at December 31, 2015 | $ | 1,338 | $ | 3,893 | $ | (8 | ) | $ | 5,223 | $ | 53 | $ | 5,276 | ||||||||||
Cumulative-effect adjustment from | |||||||||||||||||||||||
change in accounting principle | 23 | 23 | 23 | ||||||||||||||||||||
Net income (loss) | 570 | 570 | (5 | ) | 565 | ||||||||||||||||||
Other comprehensive income | 10 | 10 | |||||||||||||||||||||
Common stock dividends declared ($1.50/share) | (175 | ) | (175 | ) | (175 | ) | |||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||
Equity contributions | 2 | 2 | |||||||||||||||||||||
Distributions | (23 | ) | (23 | ) | |||||||||||||||||||
Balance at December 31, 2016 | 1,338 | 4,311 | (8 | ) | 5,641 | 37 | 5,678 | ||||||||||||||||
Net income | 407 | 407 | 14 | 421 | |||||||||||||||||||
Other comprehensive income | 11 | 11 | |||||||||||||||||||||
Common stock dividends declared ($3.86/share) | (450 | ) | (450 | ) | (450 | ) | |||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||
Equity contributions | 1 | 1 | |||||||||||||||||||||
Distributions | (35 | ) | (35 | ) | |||||||||||||||||||
Balance at December 31, 2017 | 1,338 | 4,268 | (8 | ) | 5,598 | 28 | 5,626 | ||||||||||||||||
Net income | 669 | 669 | 7 | 676 | |||||||||||||||||||
Other comprehensive (loss) income | (2 | ) | (2 | ) | 8 | 6 | |||||||||||||||||
Common stock dividends declared ($2.14/share) | (250 | ) | (250 | ) | (250 | ) | |||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||
Equity contributions | 65 | 65 | |||||||||||||||||||||
Distributions | (8 | ) | (8 | ) | |||||||||||||||||||
Balance at December 31, 2018 | $ | 1,338 | $ | 4,687 | $ | (10 | ) | $ | 6,015 | $ | 100 | $ | 6,115 | ||||||||||
See Notes to Consolidated Financial Statements. |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Years ended December 31, 2021, 2020 and 2019 | |||||||||||||||||||||||||||||||||||
Common stock | Retained earnings | Accumulated other comprehensive income (loss) | SDG&E shareholder's equity | Noncontrolling interest | Total equity | ||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 1,338 | $ | 4,687 | $ | (10) | $ | 6,015 | $ | 100 | $ | 6,115 | |||||||||||||||||||||||
Adoption of ASU 2018-02 | 2 | (2) | — | — | |||||||||||||||||||||||||||||||
Adjusted Balance at December 31, 2018 | 1,338 | 4,689 | (12) | 6,015 | 100 | 6,115 | |||||||||||||||||||||||||||||
Net income | 767 | 767 | 7 | 774 | |||||||||||||||||||||||||||||||
Other comprehensive (loss) income | (4) | (4) | 2 | (2) | |||||||||||||||||||||||||||||||
Equity contribution from Sempra Energy | 322 | 322 | 322 | ||||||||||||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||||||||||
Contributions | 175 | 175 | |||||||||||||||||||||||||||||||||
Distributions | (3) | (3) | |||||||||||||||||||||||||||||||||
Deconsolidation | (281) | (281) | |||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 1,660 | 5,456 | (16) | 7,100 | — | 7,100 | |||||||||||||||||||||||||||||
Net income | 824 | 824 | 824 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 6 | 6 | 6 | ||||||||||||||||||||||||||||||||
Common stock dividends declared ($1.72/share) | (200) | (200) | (200) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 1,660 | 6,080 | (10) | 7,730 | 0 | 7,730 | |||||||||||||||||||||||||||||
Net income | 819 | 819 | 819 | ||||||||||||||||||||||||||||||||
Common stock dividends declared ($2.57/share) | (300) | (300) | (300) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 1,660 | $ | 6,599 | $ | (10) | $ | 8,249 | $ | — | $ | 8,249 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||
STATEMENTS OF OPERATIONS | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017(1) | 2016(1) | |||||||||
Operating revenues | $ | 3,962 | $ | 3,785 | $ | 3,471 | |||||
Operating expenses | |||||||||||
Cost of natural gas | 1,048 | 1,025 | 891 | ||||||||
Operation and maintenance | 1,613 | 1,474 | 1,391 | ||||||||
Depreciation and amortization | 556 | 515 | 476 | ||||||||
Franchise fees and other taxes | 154 | 144 | 140 | ||||||||
Impairment losses | — | — | 22 | ||||||||
Total operating expenses | 3,371 | 3,158 | 2,920 | ||||||||
Operating income | 591 | 627 | 551 | ||||||||
Other income, net | 15 | 31 | 38 | ||||||||
Interest income | 2 | 1 | 1 | ||||||||
Interest expense | (115 | ) | (102 | ) | (97 | ) | |||||
Income before income taxes | 493 | 557 | 493 | ||||||||
Income tax expense | (92 | ) | (160 | ) | (143 | ) | |||||
Net income | 401 | 397 | 350 | ||||||||
Preferred dividend requirements | (1 | ) | (1 | ) | (1 | ) | |||||
Earnings attributable to common shares | $ | 400 | $ | 396 | $ | 349 |
|
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, 2021, 2020 and 2019 | |||||||||||||||||
Pretax amount | Income tax benefit (expense) | Net-of-tax amount | |||||||||||||||
2021: | |||||||||||||||||
Net loss/Comprehensive loss | $ | (736) | $ | 310 | $ | (426) | |||||||||||
2020: | |||||||||||||||||
Net income | $ | 601 | $ | (96) | $ | 505 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Pension and other postretirement benefits | (12) | 4 | (8) | ||||||||||||||
Total other comprehensive loss | (12) | 4 | (8) | ||||||||||||||
Comprehensive income | $ | 589 | $ | (92) | $ | 497 | |||||||||||
2019: | |||||||||||||||||
Net income | $ | 762 | $ | (120) | $ | 642 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Financial instruments | 1 | — | 1 | ||||||||||||||
Pension and other postretirement benefits | 1 | (1) | — | ||||||||||||||
Total other comprehensive income | 2 | (1) | 1 | ||||||||||||||
Comprehensive income | $ | 764 | $ | (121) | $ | 643 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, 2018, 2017 and 2016 | |||||||||||
Pretax amount | Income tax (expense) benefit | Net-of-tax amount | |||||||||
2018: | |||||||||||
Net income | $ | 493 | $ | (92 | ) | $ | 401 | ||||
Other comprehensive income (loss): | |||||||||||
Financial instruments | 1 | — | 1 | ||||||||
Total other comprehensive income | 1 | — | 1 | ||||||||
Comprehensive income | $ | 494 | $ | (92 | ) | $ | 402 | ||||
2017: | |||||||||||
Net income | $ | 557 | $ | (160 | ) | $ | 397 | ||||
Other comprehensive income (loss): | |||||||||||
Pension and other postretirement benefits | 1 | — | 1 | ||||||||
Total other comprehensive income | 1 | — | 1 | ||||||||
Comprehensive income | $ | 558 | $ | (160 | ) | $ | 398 | ||||
2016: | |||||||||||
Net income | $ | 493 | $ | (143 | ) | $ | 350 | ||||
Other comprehensive income (loss): | |||||||||||
Financial instruments | 1 | — | 1 | ||||||||
Pension and other postretirement benefits | (6 | ) | 2 | (4 | ) | ||||||
Total other comprehensive loss | (5 | ) | 2 | (3 | ) | ||||||
Comprehensive income | $ | 488 | $ | (141 | ) | $ | 347 | ||||
See Notes to Financial Statements. |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||||||||
BALANCE SHEETS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 37 | $ | 4 | $ | 10 | |||||||||||
Accounts receivable – trade, net | 1,084 | 786 | 710 | ||||||||||||||
Accounts receivable – other, net | 58 | 64 | 87 | ||||||||||||||
Due from unconsolidated affiliates | 49 | 22 | 11 | ||||||||||||||
Income taxes receivable, net | 23 | — | 161 | ||||||||||||||
Inventories | 172 | 153 | 136 | ||||||||||||||
Regulatory assets | 40 | 16 | 7 | ||||||||||||||
Greenhouse gas allowances | 75 | 390 | 52 | ||||||||||||||
Other current assets | 61 | 47 | 44 | ||||||||||||||
Total current assets | 1,599 | 1,482 | 1,218 | ||||||||||||||
Other assets: | |||||||||||||||||
Regulatory assets | 1,148 | 1,208 | 1,407 | ||||||||||||||
Insurance receivable for Aliso Canyon costs | 360 | 445 | 339 | ||||||||||||||
Greenhouse gas allowances | 290 | 9 | 248 | ||||||||||||||
Right-of-use assets – operating leases | 57 | 74 | 94 | ||||||||||||||
Other long-term assets | 627 | 499 | 447 | ||||||||||||||
Total other assets | 2,482 | 2,235 | 2,535 | ||||||||||||||
Property, plant and equipment: | |||||||||||||||||
Property, plant and equipment | 23,104 | 21,180 | 19,362 | ||||||||||||||
Less accumulated depreciation and amortization | (6,861) | (6,437) | (6,038) | ||||||||||||||
Property, plant and equipment, net | 16,243 | 14,743 | 13,324 | ||||||||||||||
Total assets | $ | 20,324 | $ | 18,460 | $ | 17,077 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||
BALANCE SHEETS | |||||||
(Dollars in millions) | |||||||
December 31, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 18 | $ | 8 | |||
Accounts receivable – trade, net | 634 | 517 | |||||
Accounts receivable – other, net | 97 | 90 | |||||
Due from unconsolidated affiliates | 7 | 4 | |||||
Inventories | 134 | 124 | |||||
Regulatory assets | 12 | 9 | |||||
Greenhouse gas allowances | 37 | 179 | |||||
Other | 31 | 48 | |||||
Total current assets | 970 | 979 | |||||
Other assets: | |||||||
Regulatory assets | 1,051 | 983 | |||||
Insurance receivable for Aliso Canyon costs | 461 | 418 | |||||
Greenhouse gas allowances | 116 | 9 | |||||
Sundry | 352 | 364 | |||||
Total other assets | 1,980 | 1,774 | |||||
Property, plant and equipment: | |||||||
Property, plant and equipment | 18,138 | 16,772 | |||||
Less accumulated depreciation and amortization | (5,699 | ) | (5,366 | ) | |||
Property, plant and equipment, net | 12,439 | 11,406 | |||||
Total assets | $ | 15,389 | $ | 14,159 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||||||||
BALANCE SHEETS (CONTINUED) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Short-term debt | $ | 385 | $ | 113 | $ | 630 | |||||||||||
Accounts payable – trade | 775 | 600 | 545 | ||||||||||||||
Accounts payable – other | 142 | 122 | 110 | ||||||||||||||
Due to unconsolidated affiliates | 36�� | 31 | 47 | ||||||||||||||
Accrued compensation and benefits | 202 | 189 | 182 | ||||||||||||||
Regulatory liabilities | 345 | 79 | 243 | ||||||||||||||
Current portion of long-term debt and finance leases | 11 | 10 | 6 | ||||||||||||||
Customer deposits | 13 | 48 | 71 | ||||||||||||||
Reserve for Aliso Canyon costs | 1,980 | 150 | 9 | ||||||||||||||
Greenhouse gas obligations | 75 | 390 | 52 | ||||||||||||||
Asset retirement obligations | 77 | 59 | 65 | ||||||||||||||
Other current liabilities | 271 | 291 | 222 | ||||||||||||||
Total current liabilities | 4,312 | 2,082 | 2,182 | ||||||||||||||
Long-term debt and finance leases | 4,773 | 4,763 | 3,788 | ||||||||||||||
Deferred credits and other liabilities: | |||||||||||||||||
Regulatory liabilities | 1,100 | 1,177 | 1,422 | ||||||||||||||
Reserve for Aliso Canyon costs | 3 | 301 | 7 | ||||||||||||||
Greenhouse gas obligations | 174 | — | 208 | ||||||||||||||
Pension obligation, net of plan assets | 551 | 853 | 785 | ||||||||||||||
Deferred income taxes | 1,039 | 1,406 | 1,403 | ||||||||||||||
Asset retirement obligations | 2,505 | 2,309 | 2,112 | ||||||||||||||
Deferred credits and other | 425 | 425 | 422 | ||||||||||||||
Total deferred credits and other liabilities | 5,797 | 6,471 | 6,359 | ||||||||||||||
Commitments and contingencies (Note 16) | 0 | 0 | 0 | ||||||||||||||
Shareholders’ equity: | |||||||||||||||||
Preferred stock (11 million shares authorized; 1 million shares outstanding) | 22 | 22 | 22 | ||||||||||||||
Common stock (100 million shares authorized; 91 million shares outstanding; no par value) | 1,666 | 866 | 866 | ||||||||||||||
Retained earnings | 3,785 | 4,287 | 3,883 | ||||||||||||||
Accumulated other comprehensive income (loss) | (31) | (31) | (23) | ||||||||||||||
Total shareholders’ equity | 5,442 | 5,144 | 4,748 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 20,324 | $ | 18,460 | $ | 17,077 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||
BALANCE SHEETS (CONTINUED) | |||||||
(Dollars in millions) | |||||||
December 31, 2018 | December 31, 2017 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Short-term debt | $ | 256 | $ | 116 | |||
Accounts payable – trade | 556 | 502 | |||||
Accounts payable – other | 93 | 93 | |||||
Due to unconsolidated affiliates | 34 | 35 | |||||
Accrued compensation and benefits | 159 | 151 | |||||
Regulatory liabilities | 52 | 91 | |||||
Current portion of long-term debt | 3 | 501 | |||||
Customer deposits | 101 | 89 | |||||
Reserve for Aliso Canyon costs | 160 | 84 | |||||
Greenhouse gas obligations | 37 | 179 | |||||
Asset retirement obligations | 90 | 68 | |||||
Other | 217 | 137 | |||||
Total current liabilities | 1,758 | 2,046 | |||||
Long-term debt | 3,427 | 2,485 | |||||
Deferred credits and other liabilities: | |||||||
Pension obligation, net of plan assets | 760 | 789 | |||||
Deferred income taxes | 1,177 | 995 | |||||
Deferred investment tax credits | 8 | 10 | |||||
Regulatory liabilities | 1,612 | 1,697 | |||||
Asset retirement obligations | 1,973 | 1,885 | |||||
Greenhouse gas obligations | 86 | — | |||||
Deferred credits and other | 330 | 345 | |||||
Total deferred credits and other liabilities | 5,946 | 5,721 | |||||
Commitments and contingencies (Note 16) | |||||||
Shareholders’ equity: | |||||||
Preferred stock (11 million shares authorized; 1 million shares outstanding) | 22 | 22 | |||||
Common stock (100 million shares authorized; 91 million shares outstanding; | |||||||
no par value) | 866 | 866 | |||||
Retained earnings | 3,390 | 3,040 | |||||
Accumulated other comprehensive income (loss) | (20 | ) | (21 | ) | |||
Total shareholders’ equity | 4,258 | 3,907 | |||||
Total liabilities and shareholders’ equity | $ | 15,389 | $ | 14,159 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net (loss) income | $ | (426) | $ | 505 | $ | 642 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 716 | 654 | 602 | ||||||||||||||
Deferred income taxes and investment tax credits | (494) | (112) | 88 | ||||||||||||||
Impairment losses | — | — | 37 | ||||||||||||||
Other | 19 | 59 | (5) | ||||||||||||||
Net change in working capital components: | |||||||||||||||||
Accounts receivable | (383) | (101) | (73) | ||||||||||||||
Due to/from unconsolidated affiliates, net | (25) | (27) | (1) | ||||||||||||||
Income taxes receivable/payable, net | (43) | 189 | (156) | ||||||||||||||
Inventories | (18) | (19) | 1 | ||||||||||||||
Other current assets | (21) | (12) | (9) | ||||||||||||||
Accounts payable | 181 | 64 | (7) | ||||||||||||||
Regulatory balancing accounts, net | 306 | (160) | 114 | ||||||||||||||
Reserve for Aliso Canyon costs | 1,532 | 141 | (144) | ||||||||||||||
Other current liabilities | (92) | (21) | (21) | ||||||||||||||
Insurance receivable for Aliso Canyon costs | 85 | (106) | 122 | ||||||||||||||
Reserve for Aliso Canyon costs, noncurrent | — | 294 | — | ||||||||||||||
Changes in other noncurrent assets and liabilities, net | (304) | 178 | (322) | ||||||||||||||
Net cash provided by operating activities | 1,033 | 1,526 | 868 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||
Expenditures for property, plant and equipment | (1,984) | (1,843) | (1,439) | ||||||||||||||
Other | — | — | 1 | ||||||||||||||
Net cash used in investing activities | (1,984) | (1,843) | (1,438) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Common dividends paid | (75) | (100) | (150) | ||||||||||||||
Preferred dividends paid | (1) | (1) | (1) | ||||||||||||||
Equity contribution from Sempra Energy | 800 | — | — | ||||||||||||||
Issuances of debt (maturities greater than 90 days) | — | 949 | 349 | ||||||||||||||
Payments on finance leases | (12) | (12) | (6) | ||||||||||||||
Increase (decrease) in short-term debt, net | 272 | (517) | 374 | ||||||||||||||
Debt issuance costs | — | (8) | (4) | ||||||||||||||
Net cash provided by financing activities | 984 | 311 | 562 | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 33 | (6) | (8) | ||||||||||||||
Cash and cash equivalents, January 1 | 4 | 10 | 18 | ||||||||||||||
Cash and cash equivalents, December 31 | $ | 37 | $ | 4 | $ | 10 | |||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||||||||
Interest payments, net of amounts capitalized | $ | 151 | $ | 146 | $ | 126 | |||||||||||
Income tax payments, net of refunds | 227 | 19 | 188 | ||||||||||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||||||||||||||
Accrued capital expenditures | $ | 222 | $ | 208 | $ | 205 | |||||||||||
Increase in finance lease obligations for investment in PP&E | 19 | 47 | 22 | ||||||||||||||
Increase in ARO for investment in PP&E | 125 | 107 | 35 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||||||||||||||||||||
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Years ended December 31, 2021, 2020 and 2019 | |||||||||||||||||||||||||||||
Preferred stock | Common stock | Retained earnings | Accumulated other comprehensive income (loss) | Total shareholders’ equity | |||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 22 | $ | 866 | $ | 3,390 | $ | (20) | $ | 4,258 | |||||||||||||||||||
Adoption of ASU 2018-02 | 2 | (4) | (2) | ||||||||||||||||||||||||||
Adjusted balance at December 31, 2018 | 22 | 866 | 3,392 | (24) | 4,256 | ||||||||||||||||||||||||
Net income | 642 | 642 | |||||||||||||||||||||||||||
Other comprehensive income | 1 | 1 | |||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||
Preferred stock ($1.50/share) | (1) | (1) | |||||||||||||||||||||||||||
Common stock ($1.64/share) | (150) | (150) | |||||||||||||||||||||||||||
Balance at December 31, 2019 | 22 | 866 | 3,883 | (23) | 4,748 | ||||||||||||||||||||||||
Net income | 505 | 505 | |||||||||||||||||||||||||||
Other comprehensive loss | (8) | (8) | |||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||
Preferred stock ($1.50/share) | (1) | (1) | |||||||||||||||||||||||||||
Common stock ($1.10/share) | (100) | (100) | |||||||||||||||||||||||||||
Balance at December 31, 2020 | 22 | 866 | 4,287 | (31) | 5,144 | ||||||||||||||||||||||||
Net loss | (426) | (426) | |||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||
Preferred stock ($1.50/share) | (1) | (1) | |||||||||||||||||||||||||||
Common stock ($0.82/share) | (75) | (75) | |||||||||||||||||||||||||||
Equity contribution from Sempra Energy | 800 | 800 | |||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 22 | $ | 1,666 | $ | 3,785 | $ | (31) | $ | 5,442 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ | 401 | $ | 397 | $ | 350 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 556 | 515 | 476 | ||||||||
Deferred income taxes and investment tax credits | 78 | 137 | 103 | ||||||||
Impairment losses | — | — | 22 | ||||||||
Other | (7 | ) | 11 | (26 | ) | ||||||
Insurance receivable for Aliso Canyon costs | (43 | ) | 188 | (281 | ) | ||||||
Changes in other noncurrent assets and liabilities, net | (144 | ) | (93 | ) | 42 | ||||||
Changes in working capital components: | |||||||||||
Accounts receivable | (87 | ) | 72 | 37 | |||||||
Inventories | (2 | ) | (66 | ) | 4 | ||||||
Other current assets | 11 | — | (13 | ) | |||||||
Accounts payable | 71 | 39 | 36 | ||||||||
Income taxes | 14 | (5 | ) | (2 | ) | ||||||
Due to/from affiliates, net | (10 | ) | 7 | 6 | |||||||
Regulatory balancing accounts | 125 | 53 | 163 | ||||||||
Reserve for Aliso Canyon costs | 56 | 31 | (221 | ) | |||||||
Other current liabilities | (6 | ) | 20 | (25 | ) | ||||||
Net cash provided by operating activities | 1,013 | 1,306 | 671 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Expenditures for property, plant and equipment | (1,538 | ) | (1,367 | ) | (1,319 | ) | |||||
Decrease in loans to affiliate, net | — | — | 50 | ||||||||
Other | 7 | 4 | — | ||||||||
Net cash used in investing activities | (1,531 | ) | (1,363 | ) | (1,269 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Common dividends paid | (50 | ) | — | — | |||||||
Preferred dividends paid | (1 | ) | (1 | ) | (1 | ) | |||||
Issuances of long-term debt | 949 | — | 499 | ||||||||
Payments on long-term debt | (500 | ) | — | (3 | ) | ||||||
Increase in short-term debt, net | 140 | 54 | 62 | ||||||||
Debt issuance costs | (10 | ) | — | (5 | ) | ||||||
Net cash provided by financing activities | 528 | 53 | 552 | ||||||||
Increase (decrease) in cash and cash equivalents | 10 | (4 | ) | (46 | ) | ||||||
Cash and cash equivalents, January 1 | 8 | 12 | 58 | ||||||||
Cash and cash equivalents, December 31 | $ | 18 | $ | 8 | $ | 12 | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||
Interest payments, net of amounts capitalized | $ | 105 | $ | 97 | $ | 92 | |||||
Income tax payments, net | — | 28 | 41 | ||||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITY | |||||||||||
Accrued capital expenditures | $ | 191 | $ | 208 | $ | 207 | |||||
See Notes to Financial Statements. |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||||||||||
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Years ended December 31, 2018, 2017 and 2016 | |||||||||||||||||||
Preferred stock | Common stock | Retained earnings | Accumulated other comprehensive income (loss) | Total shareholders’ equity | |||||||||||||||
Balance at December 31, 2015 | $ | 22 | $ | 866 | $ | 2,280 | $ | (19 | ) | $ | 3,149 | ||||||||
Cumulative-effect adjustment from change | |||||||||||||||||||
in accounting principle | 15 | 15 | |||||||||||||||||
Net income | 350 | 350 | |||||||||||||||||
Other comprehensive loss | (3 | ) | (3 | ) | |||||||||||||||
Preferred stock dividends declared ($1.50/share) | (1 | ) | (1 | ) | |||||||||||||||
Balance at December 31, 2016 | 22 | 866 | 2,644 | (22 | ) | 3,510 | |||||||||||||
Net income | 397 | 397 | |||||||||||||||||
Other comprehensive income | 1 | 1 | |||||||||||||||||
Preferred stock dividends declared ($1.50/share) | (1 | ) | (1 | ) | |||||||||||||||
Balance at December 31, 2017 | 22 | 866 | 3,040 | (21 | ) | 3,907 | |||||||||||||
Net income | 401 | 401 | |||||||||||||||||
Other comprehensive income | 1 | 1 | |||||||||||||||||
Dividends declared: | |||||||||||||||||||
Preferred stock ($1.50/share) | (1 | ) | (1 | ) | |||||||||||||||
Common stock ($0.55/share) | (50 | ) | (50 | ) | |||||||||||||||
Balance at December 31, 2018 | $ | 22 | $ | 866 | $ | 3,390 | $ | (20 | ) | $ | 4,258 | ||||||||
See Notes to Financial Statements. |
▪the Consolidated Financial Statements and related Notes of Sempra; ▪the Consolidated Financial Statements and related Notes of SDG&E; and ▪the Financial Statements and related Notes of SoCalGas. |
SEMPRA ENERGY – RECLASSIFICATION | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2017 | 2016 | |||||||||||||||
As previously presented | As currently presented | As previously presented | As currently presented | |||||||||||||
Consolidated Statements of Operations: | ||||||||||||||||
Equity earnings, before income tax | $ | 34 | $ | — | $ | 6 | $ | — | ||||||||
Income before income taxes and equity earnings | ||||||||||||||||
of certain unconsolidated subsidiaries | 1,585 | — | 1,830 | — | ||||||||||||
Income before income taxes and equity earnings of | ||||||||||||||||
unconsolidated entities | — | 1,551 | — | 1,824 | ||||||||||||
Equity earnings, net of income tax | 42 | — | 78 | — | ||||||||||||
Equity earnings | — | 76 | — | 84 |
▪testimony presented in regulatory hearings ▪regulatory orders ▪a commission-authorized mechanism established for the accumulation of costs ▪status of applications for rehearings or state court appeals ▪specific approval from a commission ▪historical experience |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
At December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash and cash equivalents | $ | 559 | $ | 960 | $ | 108 | |||||||||||
Restricted cash, current | 19 | 22 | 31 | ||||||||||||||
Restricted cash, noncurrent | 3 | 3 | 3 | ||||||||||||||
Cash, cash equivalents and restricted cash in discontinued operations | — | — | 75 | ||||||||||||||
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows | $ | 581 | $ | 985 | $ | 217 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||
(Dollars in millions) | |||||||
At December 31, | |||||||
2018 | 2017 | ||||||
Sempra Energy Consolidated: | |||||||
Cash and cash equivalents | $ | 190 | $ | 288 | |||
Restricted cash, current | 35 | 62 | |||||
Restricted cash, noncurrent | 21 | 14 | |||||
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows | $ | 246 | $ | 364 | |||
SDG&E: | |||||||
Cash and cash equivalents | $ | 8 | $ | 12 | |||
Restricted cash, current | 11 | 6 | |||||
Restricted cash, noncurrent | 18 | 11 | |||||
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows | $ | 37 | $ | 29 |
COLLECTION ALLOWANCES | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Sempra Energy Consolidated: | |||||||||||
Allowances for collection of receivables at January 1 | $ | 33 | $ | 35 | $ | 32 | |||||
Provisions for uncollectible accounts | 14 | 16 | 23 | ||||||||
Write-offs of uncollectible accounts | (17 | ) | (18 | ) | (20 | ) | |||||
Allowances for collection of receivables at December 31 | $ | 30 | $ | 33 | $ | 35 | |||||
SDG&E: | |||||||||||
Allowances for collection of receivables at January 1 | $ | 9 | $ | 8 | $ | 9 | |||||
Provisions for uncollectible accounts | 9 | 8 | 6 | ||||||||
Write-offs of uncollectible accounts | (7 | ) | (7 | ) | (7 | ) | |||||
Allowances for collection of receivables at December 31 | $ | 11 | $ | 9 | $ | 8 | |||||
SoCalGas: | |||||||||||
Allowances for collection of receivables at January 1 | $ | 16 | $ | 21 | $ | 17 | |||||
Provisions for uncollectible accounts | 1 | 4 | 14 | ||||||||
Write-offs of uncollectible accounts | (7 | ) | (9 | ) | (10 | ) | |||||
Allowances for collection of receivables at December 31 | $ | 10 | $ | 16 | $ | 21 |
RECEIVABLES – ALLOWANCES FOR CREDIT LOSSES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Sempra: | |||||||||||||||||
Allowances for credit losses at January 1 | $ | 138 | $ | 29 | $ | 21 | |||||||||||
Incremental allowance upon adoption of ASU 2016-13 | — | 1 | — | ||||||||||||||
Provisions for expected credit losses | 45 | 124 | 22 | ||||||||||||||
Write-offs | (47) | (16) | (14) | ||||||||||||||
Allowances for credit losses at December 31 | $ | 136 | $ | 138 | $ | 29 | |||||||||||
SDG&E: | |||||||||||||||||
Allowances for credit losses at January 1 | $ | 69 | $ | 14 | $ | 11 | |||||||||||
Provisions for expected credit losses | 23 | 65 | 10 | ||||||||||||||
Write-offs | (26) | (10) | (7) | ||||||||||||||
Allowances for credit losses at December 31 | $ | 66 | $ | 69 | $ | 14 | |||||||||||
SoCalGas: | |||||||||||||||||
Allowances for credit losses at January 1 | $ | 68 | $ | 15 | $ | 10 | |||||||||||
Provisions for expected credit losses | 22 | 59 | 12 | ||||||||||||||
Write-offs | (21) | (6) | (7) | ||||||||||||||
Allowances for credit losses at December 31 | $ | 69 | $ | 68 | $ | 15 |
ALLOWANCES FOR CREDIT LOSSES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Sempra: | |||||||||||||||||
Accounts receivable – trade, net | $ | 94 | $ | 111 | $ | 7 | |||||||||||
Accounts receivable – other, net | 39 | 27 | 22 | ||||||||||||||
Other long-term assets | 3 | — | — | ||||||||||||||
Total allowances for credit losses | $ | 136 | $ | 138 | $ | 29 | |||||||||||
SDG&E: | |||||||||||||||||
Accounts receivable – trade, net | $ | 42 | $ | 55 | $ | 4 | |||||||||||
Accounts receivable – other, net | 22 | 14 | 10 | ||||||||||||||
Other long-term assets | 2 | — | — | ||||||||||||||
Total allowances for credit losses | $ | 66 | $ | 69 | $ | 14 | |||||||||||
SoCalGas: | |||||||||||||||||
Accounts receivable – trade, net | $ | 51 | $ | 55 | $ | 3 | |||||||||||
Accounts receivable – other, net | 17 | 13 | 12 | ||||||||||||||
Other long-term assets | 1 | — | — | ||||||||||||||
Total allowances for credit losses | $ | 69 | $ | 68 | $ | 15 |
INVENTORY BALANCES AT DECEMBER 31 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Sempra | SDG&E | SoCalGas | |||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||
Natural gas | $ | 164 | $ | 118 | $ | 110 | $ | — | $ | — | $ | 1 | $ | 114 | $ | 94 | $ | 90 | |||||||||||||||||||||||||||||
LNG | 27 | 7 | 9 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Materials and supplies | 198 | 183 | 158 | 123 | 104 | 93 | 58 | 59 | 46 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 389 | $ | 308 | $ | 277 | $ | 123 | $ | 104 | $ | 94 | $ | 172 | $ | 153 | $ | 136 |
INVENTORY BALANCES AT DECEMBER 31 | |||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||
Natural gas | LNG | Materials and supplies | Total | ||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
SDG&E | $ | — | $ | 4 | $ | — | $ | — | $ | 102 | $ | 101 | $ | 102 | $ | 105 | |||||||||||||||
SoCalGas | 92 | 75 | — | — | 42 | 49 | 134 | 124 | |||||||||||||||||||||||
Sempra South American Utilities | — | — | — | — | 38 | 30 | 38 | 30 | |||||||||||||||||||||||
Sempra Mexico | — | — | 4 | 7 | 15 | 2 | 19 | 9 | |||||||||||||||||||||||
Sempra Renewables | — | — | — | — | — | 5 | — | 5 | |||||||||||||||||||||||
Sempra LNG & Midstream | 3 | 30 | — | 4 | — | — | 3 | 34 | |||||||||||||||||||||||
Sempra Energy Consolidated | $ | 95 | $ | 109 | $ | 4 | $ | 11 | $ | 197 | $ | 187 | $ | 296 | $ | 307 |
WILDFIRE FUND | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
Location | 2021 | 2020 | 2019 | |||||||||||||||||
Wildfire Fund asset: | ||||||||||||||||||||
Current | Prepaid Expenses | $ | 29 | $ | 29 | $ | 29 | |||||||||||||
Noncurrent | Wildfire Fund | 331 | 363 | 392 | ||||||||||||||||
Wildfire Fund obligation: | ||||||||||||||||||||
Current | Other Current Liabilities | $ | 13 | $ | 13 | $ | 13 | |||||||||||||
Noncurrent | Deferred Credits and Other | 64 | 75 | 86 | ||||||||||||||||
Years ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Amortization of Wildfire Fund asset | Operation and Maintenance | $ | 29 | $ | 29 | $ | 12 | |||||||||||||
Impairment of Wildfire Fund asset | Impairment Losses(1) | 3 | — | — | ||||||||||||||||
Accretion of Wildfire Fund obligation | Operation and Maintenance | 2 | 2 | 1 |
PROPERTY, PLANT AND EQUIPMENT BY MAJOR FUNCTIONAL CATEGORY | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
December 31, | Depreciation rates for years ended December 31, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||
SDG&E: | |||||||||||||||||||||||||||||||||||
Natural gas operations | $ | 3,200 | $ | 2,805 | $ | 2,534 | 2.55 | % | 2.51 | % | 2.47 | % | |||||||||||||||||||||||
Electric distribution | 9,471 | 8,592 | 7,985 | 3.93 | 3.90 | 3.94 | |||||||||||||||||||||||||||||
Electric transmission(1) | 7,577 | 7,156 | 6,577 | 3.02 | 3.10 | 2.79 | |||||||||||||||||||||||||||||
Electric generation | 2,446 | 2,440 | 2,415 | 4.74 | 4.56 | 4.50 | |||||||||||||||||||||||||||||
Other electric | 2,100 | 1,743 | 1,492 | 7.23 | 6.92 | 6.61 | |||||||||||||||||||||||||||||
Construction work in progress(1) | 1,662 | 1,700 | 1,501 | NA | NA | NA | |||||||||||||||||||||||||||||
Total SDG&E | 26,456 | 24,436 | 22,504 | ||||||||||||||||||||||||||||||||
SoCalGas: | |||||||||||||||||||||||||||||||||||
Natural gas operations | 21,894 | 19,961 | 18,370 | 3.65 | 3.63 | 3.60 | |||||||||||||||||||||||||||||
Other non-utility | 50 | 45 | 34 | 2.23 | 3.80 | 5.08 | |||||||||||||||||||||||||||||
Construction work in progress | 1,160 | 1,174 | 958 | NA | NA | NA | |||||||||||||||||||||||||||||
Total SoCalGas | 23,104 | 21,180 | 19,362 | ||||||||||||||||||||||||||||||||
Sempra Infrastructure and parent(2): | Estimated useful lives | Weighted-average useful life | |||||||||||||||||||||||||||||||||
Land and land rights | 291 | 283 | 278 | 16 to 50 years(3) | 36 | ||||||||||||||||||||||||||||||
Machinery and equipment: | |||||||||||||||||||||||||||||||||||
Pipelines and storage | 3,698 | 3,482 | 3,596 | 5 to 50 years | 42 | ||||||||||||||||||||||||||||||
Generating plants | 1,659 | 1,288 | 1,154 | 11 to 30 years | 27 | ||||||||||||||||||||||||||||||
LNG terminals | 1,138 | 1,138 | 1,134 | 43 years | 43 | ||||||||||||||||||||||||||||||
Liquid fuels terminals | 420 | — | — | 37 years | 37 | ||||||||||||||||||||||||||||||
Other | 370 | 359 | 180 | 3 to 50 years | 13 | ||||||||||||||||||||||||||||||
Construction work in progress | 1,494 | 1,514 | 895 | NA | NA | ||||||||||||||||||||||||||||||
Other | 310 | 248 | 226 | 4 to 50 years | 21 | ||||||||||||||||||||||||||||||
9,380 | 8,312 | 7,463 | |||||||||||||||||||||||||||||||||
Total Sempra | $ | 58,940 | $ | 53,928 | $ | 49,329 |
PROPERTY, PLANT AND EQUIPMENT BY MAJOR FUNCTIONAL CATEGORY | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
PP&E at December 31, | Depreciation rates for years ended December 31, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2016 | |||||||||||||
SDG&E: | |||||||||||||||||
Natural gas operations | $ | 2,382 | $ | 2,186 | 2.44 | % | 2.40 | % | 2.40 | % | |||||||
Electric distribution | 7,462 | 6,975 | 3.91 | 3.92 | 3.86 | ||||||||||||
Electric transmission(1) | 6,222 | 5,626 | 2.76 | 2.71 | 2.66 | ||||||||||||
Electric generation(2) | 2,967 | 2,435 | 4.12 | 4.05 | 4.00 | ||||||||||||
Other electric(3) | 1,408 | 1,114 | 6.43 | 5.54 | 5.66 | ||||||||||||
Construction work in progress(1) | 1,221 | 1,451 | NA | NA | NA | ||||||||||||
Total SDG&E | 21,662 | 19,787 | |||||||||||||||
SoCalGas: | |||||||||||||||||
Natural gas operations(4) | 17,268 | 15,759 | 3.60 | 3.63 | 3.64 | ||||||||||||
Other non-utility | 34 | 32 | 5.39 | 5.28 | 6.55 | ||||||||||||
Construction work in progress | 836 | 981 | NA | NA | NA | ||||||||||||
Total SoCalGas | 18,138 | 16,772 | |||||||||||||||
Estimated | Weighted-average | ||||||||||||||||
Other operating units and parent(5): | useful lives | useful life | |||||||||||||||
Land and land rights | 429 | 416 | 16 to 50 years(6) | 30 | |||||||||||||
Machinery and equipment: | |||||||||||||||||
Utility electric distribution operations | 1,977 | 1,751 | 10 to 45 years | 41 | |||||||||||||
Generating plants | 1,051 | 2,242 | 5 to 100 years | 30 | |||||||||||||
LNG terminals | 1,134 | 1,133 | 43 years | 43 | |||||||||||||
Pipelines and storage | 3,413 | 4,408 | 5 to 50 years | 41 | |||||||||||||
Other | 205 | 269 | 1 to 50 years | 7 | |||||||||||||
Construction work in progress | 684 | 691 | NA | NA | |||||||||||||
Other(7) | 622 | 639 | 3 to 80 years | 31 | |||||||||||||
9,515 | 11,549 | ||||||||||||||||
Total Sempra Energy Consolidated | $ | 49,315 | $ | 48,108 |
(3)Estimated useful lives are for land rights. |
DEPRECIATION EXPENSE | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Sempra | $ | 1,833 | $ | 1,646 | $ | 1,551 | |||||||||||
SDG&E | 884 | 797 | 757 | ||||||||||||||
SoCalGas | 711 | 649 | 598 |
DEPRECIATION EXPENSE | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Sempra Energy Consolidated | $ | 1,528 | $ | 1,422 | $ | 1,236 | |||||
SDG&E | 686 | 621 | 583 | ||||||||
SoCalGas | 553 | 514 | 474 |
ACCUMULATED DEPRECIATION AND AMORTIZATION | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
SDG&E: | |||||||||||||||||
Accumulated depreciation: | |||||||||||||||||
Natural gas operations | $ | 919 | $ | 870 | $ | 832 | |||||||||||
Electric transmission, distribution and generation(1) | 5,489 | 5,145 | 4,705 | ||||||||||||||
Total SDG&E | 6,408 | 6,015 | 5,537 | ||||||||||||||
SoCalGas: | |||||||||||||||||
Accumulated depreciation: | |||||||||||||||||
Natural gas operations | 6,845 | 6,422 | 6,023 | ||||||||||||||
Other non-utility | 16 | 15 | 15 | ||||||||||||||
Total SoCalGas | 6,861 | 6,437 | 6,038 | ||||||||||||||
Sempra Infrastructure and parent: | |||||||||||||||||
Accumulated depreciation – other(2) | 1,777 | 1,473 | 1,302 | ||||||||||||||
Total Sempra | $ | 15,046 | $ | 13,925 | $ | 12,877 |
ACCUMULATED DEPRECIATION | |||||||
(Dollars in millions) | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
SDG&E: | |||||||
Accumulated depreciation: | |||||||
Electric(1) | $ | 4,558 | $ | 4,193 | |||
Natural gas | 794 | 756 | |||||
Total SDG&E | 5,352 | 4,949 | |||||
SoCalGas: | |||||||
Accumulated depreciation of natural gas utility plant in service(2) | 5,685 | 5,352 | |||||
Accumulated depreciation – other non-utility | 14 | 14 | |||||
Total SoCalGas | 5,699 | 5,366 | |||||
Other operating units and parent and other: | |||||||
Accumulated depreciation – other(3) | 1,125 | 972 | |||||
Accumulated depreciation of utility electric distribution operations | 343 | 318 | |||||
1,468 | 1,290 | ||||||
Total Sempra Energy Consolidated | $ | 12,519 | $ | 11,605 |
CAPITALIZED FINANCING COSTS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Sempra | $ | 217 | $ | 202 | $ | 183 | |||||||||||
SDG&E | 106 | 104 | 75 | ||||||||||||||
SoCalGas | 64 | 55 | 47 |
CAPITALIZED FINANCING COSTS | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Sempra Energy Consolidated | $ | 202 | $ | 256 | $ | 236 | |||||
SDG&E | 82 | 85 | 62 | ||||||||
SoCalGas | 48 | 60 | 55 |
GOODWILL | |||||||||||
(Dollars in millions) | |||||||||||
Sempra South American Utilities | Sempra Mexico | Total | |||||||||
Balance at December 31, 2016 | $ | 749 | $ | 1,615 | $ | 2,364 | |||||
Acquisition of business – measurement period adjustment | — | (13 | ) | (13 | ) | ||||||
Foreign currency translation(1) | 46 | — | 46 | ||||||||
Balance at December 31, 2017 | 795 | 1,602 | 2,397 | ||||||||
Acquisition of business | 38 | — | 38 | ||||||||
Foreign currency translation(1) | (62 | ) | — | (62 | ) | ||||||
Balance at December 31, 2018 | $ | 771 | $ | 1,602 | $ | 2,373 |
OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Amortization period (years) | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||
Renewable energy transmission and consumption permits | 15 to 19 | $ | 169 | $ | 169 | $ | 169 | ||||||||||||||||
O&M agreement | 23 | 66 | 66 | 66 | |||||||||||||||||||
ESJ PPA | 14 | 190 | — | — | |||||||||||||||||||
Other | 10 to indefinite | 15 | 15 | 15 | |||||||||||||||||||
440 | 250 | 250 | |||||||||||||||||||||
Less accumulated amortization: | |||||||||||||||||||||||
Renewable energy transmission and consumption permits | (40) | (32) | (24) | ||||||||||||||||||||
O&M agreement | (12) | (9) | (6) | ||||||||||||||||||||
ESJ PPA | (10) | — | — | ||||||||||||||||||||
Other | (8) | (7) | (7) | ||||||||||||||||||||
(70) | (48) | (37) | |||||||||||||||||||||
$ | 370 | $ | 202 | $ | 213 |
OTHER INTANGIBLE ASSETS | |||||||||
(Dollars in millions) | |||||||||
Amortization period (years) | December 31, | ||||||||
2018 | 2017 | ||||||||
Development rights | 50 | $ | — | $ | 322 | ||||
Renewable energy transmission and consumption permit | 19 | 154 | 154 | ||||||
Storage rights | 46 | — | 138 | ||||||
O&M agreement | 23 | 66 | 66 | ||||||
Concession permits | Indefinite | 50 | — | ||||||
Other | 10 years to indefinite | 28 | 18 | ||||||
298 | 698 | ||||||||
Less accumulated amortization: | |||||||||
Development rights | — | (60 | ) | ||||||
Renewable energy transmission and consumption permit | (16 | ) | (8 | ) | |||||
Storage rights | — | (28 | ) | ||||||
O&M agreement | (3 | ) | — | ||||||
Other | (7 | ) | (6 | ) | |||||
(26 | ) | (102 | ) | ||||||
$ | 272 | $ | 596 |
AMOUNTS ASSOCIATED WITH OTAY MESA VIE | |||||||
(Dollars in millions) | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
Cash and cash equivalents | $ | — | $ | 4 | |||
Restricted cash | 11 | 6 | |||||
Inventories | 4 | 4 | |||||
Other | 2 | 1 | |||||
Total current assets | 17 | 15 | |||||
Restricted cash | 18 | 11 | |||||
Property, plant and equipment, net | 295 | 321 | |||||
Total assets | $ | 330 | $ | 347 | |||
Current portion of long-term debt | $ | 28 | $ | 10 | |||
Fixed-price contracts and other derivatives | 1 | 10 | |||||
Other | 3 | 5 | |||||
Total current liabilities | 32 | 25 | |||||
Long-term debt | 190 | 284 | |||||
Fixed-price contracts and other derivatives | — | 3 | |||||
Deferred credits and other | 8 | 7 | |||||
Noncontrolling interest | 100 | 28 | |||||
Total liabilities and equity | $ | 330 | $ | 347 |
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Operating expenses | |||||||||||
Cost of electric fuel and purchased power | $ | (75 | ) | $ | (79 | ) | $ | (79 | ) | ||
Operation and maintenance | 17 | 17 | 29 | ||||||||
Depreciation and amortization | 30 | 28 | 35 | ||||||||
Total operating expenses | (28 | ) | (34 | ) | (15 | ) | |||||
Operating income | 28 | 34 | 15 | ||||||||
Other income | 2 | 2 | — | ||||||||
Interest expense | (23 | ) | (22 | ) | (20 | ) | |||||
Income (loss) before income taxes/Net income (loss) | 7 | 14 | (5 | ) | |||||||
(Earnings) losses attributable to noncontrolling interest | (7 | ) | (14 | ) | 5 | ||||||
Earnings attributable to common shares | $ | — | $ | — | $ | — |
AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS | ||||||
(Dollars in millions) | ||||||
December 31, | ||||||
2018 | 2017 | |||||
Cash and cash equivalents | $ | 7 | $ | 23 | ||
Accounts receivable – trade, net | 2 | 5 | ||||
Inventories | — | 1 | ||||
Other | 1 | 1 | ||||
Total current assets | 10 | 30 | ||||
Sundry | — | 2 | ||||
Property, plant and equipment, net | 286 | 1,412 | ||||
Total assets | 296 | 1,444 | ||||
Accounts payable | 2 | 42 | ||||
Other | 1 | 1 | ||||
Total current liabilities | 3 | 43 | ||||
Asset retirement obligations | 6 | 40 | ||||
Deferred income taxes | 7 | 10 | ||||
Deferred credits and other | — | 1 | ||||
Total liabilities | 16 | 94 | ||||
Other noncontrolling interests | 158 | 631 | ||||
Net assets less other noncontrolling interests | $ | 122 | $ | 719 |
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
REVENUES | |||||||||||
Energy-related businesses | $ | 92 | $ | 61 | $ | 2 | |||||
EXPENSES | |||||||||||
Operation and maintenance | (16 | ) | (9 | ) | (1 | ) | |||||
Depreciation and amortization | (47 | ) | (32 | ) | — | ||||||
Income before income taxes | 29 | 20 | 1 | ||||||||
Income tax expense | (18 | ) | (4 | ) | — | ||||||
Net income | 11 | 16 | 1 | ||||||||
Losses attributable to noncontrolling interests(1) | 58 | 23 | 4 | ||||||||
Earnings | $ | 69 | $ | 39 | $ | 5 |
CHANGES IN ASSET RETIREMENT OBLIGATIONS | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Sempra | SDG&E | SoCalGas | |||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||
Balance as of January 1(1) | $ | 3,289 | $ | 3,083 | $ | 2,972 | $ | 876 | $ | 866 | $ | 874 | $ | 2,368 | $ | 2,177 | $ | 2,063 | |||||||||||||||||||||||||||||
Accretion expense | 133 | 127 | 123 | 38 | 39 | 39 | 92 | 86 | 81 | ||||||||||||||||||||||||||||||||||||||
Liabilities incurred and acquired | 20 | 2 | 2 | 2 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Deconsolidation | — | — | (2) | — | — | (2) | — | — | — | ||||||||||||||||||||||||||||||||||||||
Payments | (63) | (63) | (46) | (60) | (60) | (44) | (3) | (2) | (2) | ||||||||||||||||||||||||||||||||||||||
Revisions(2) | 159 | 140 | 34 | 34 | 31 | (1) | 125 | 107 | 35 | ||||||||||||||||||||||||||||||||||||||
Balance at December 31(1) | $ | 3,538 | $ | 3,289 | $ | 3,083 | $ | 890 | $ | 876 | $ | 866 | $ | 2,582 | $ | 2,368 | $ | 2,177 |
CHANGES IN ASSET RETIREMENT OBLIGATIONS | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Balance as of January 1(1) | $ | 2,877 | $ | 2,553 | $ | 839 | $ | 830 | $ | 1,953 | $ | 1,659 | |||||||||||
Accretion expense | 121 | 109 | 39 | 39 | 78 | 66 | |||||||||||||||||
Liabilities incurred | 7 | 34 | — | 17 | — | — | |||||||||||||||||
Deconsolidation and reclassification(2) | (61 | ) | — | — | — | — | — | ||||||||||||||||
Payments | (42 | ) | (63 | ) | (39 | ) | (61 | ) | (3 | ) | (2 | ) | |||||||||||
Revisions(3) | 71 | 244 | 35 | 14 | 35 | 230 | |||||||||||||||||
Balance at December 31(1) | $ | 2,973 | $ | 2,877 | $ | 874 | $ | 839 | $ | 2,063 | $ | 1,953 |
(2) SDG&E’s increase in ARO in 2021 includes $22 million due to a revised estimate related to the decommissioning of SONGS, which is offset in noncurrent Regulatory Assets. |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Foreign currency translation adjustments | Financial instruments | Pension and other postretirement benefits | Total accumulated other comprehensive income (loss) | ||||||||||||
Sempra Energy Consolidated: | |||||||||||||||
Balance as of December 31, 2015 | $ | (582 | ) | $ | (137 | ) | $ | (87 | ) | $ | (806 | ) | |||
OCI before reclassifications | 42 | (7 | ) | (15 | ) | 20 | |||||||||
Amounts reclassified from AOCI(2) | 13 | 19 | 6 | 38 | |||||||||||
Net OCI | 55 | 12 | (9 | ) | 58 | ||||||||||
Balance as of December 31, 2016 | (527 | ) | (125 | ) | (96 | ) | (748 | ) | |||||||
OCI before reclassifications | 107 | (4 | ) | — | 103 | ||||||||||
Amounts reclassified from AOCI | — | 7 | 12 | 19 | |||||||||||
Net OCI | 107 | 3 | 12 | 122 | |||||||||||
Balance as of December 31, 2017 | (420 | ) | (122 | ) | (84 | ) | (626 | ) | |||||||
Cumulative-effect adjustment from change in accounting principle(3) | — | (3 | ) | — | (3 | ) | |||||||||
OCI before reclassifications | (144 | ) | 40 | (52 | ) | (156 | ) | ||||||||
Amounts reclassified from AOCI | — | 3 | 18 | 21 | |||||||||||
Net OCI | (144 | ) | 43 | (34 | ) | (135 | ) | ||||||||
Balance as of December 31, 2018 | $ | (564 | ) | $ | (82 | ) | $ | (118 | ) | $ | (764 | ) | |||
SDG&E: | |||||||||||||||
Balance as of December 31, 2015 | $ | (8 | ) | $ | (8 | ) | |||||||||
OCI before reclassifications | (1 | ) | (1 | ) | |||||||||||
Amounts reclassified from AOCI | 1 | 1 | |||||||||||||
Net OCI | — | — | |||||||||||||
Balance as of December 31, 2016 | (8 | ) | (8 | ) | |||||||||||
OCI before reclassifications | (1 | ) | (1 | ) | |||||||||||
Amounts reclassified from AOCI | 1 | 1 | |||||||||||||
Net OCI | — | — | |||||||||||||
Balance as of December 31, 2017 | (8 | ) | (8 | ) | |||||||||||
OCI before reclassifications | (6 | ) | (6 | ) | |||||||||||
Amounts reclassified from AOCI | 4 | 4 | |||||||||||||
Net OCI | (2 | ) | (2 | ) | |||||||||||
Balance as of December 31, 2018 | $ | (10 | ) | $ | (10 | ) | |||||||||
SoCalGas: | |||||||||||||||
Balance as of December 31, 2015 | $ | (14 | ) | $ | (5 | ) | $ | (19 | ) | ||||||
OCI before reclassifications | — | (4 | ) | (4 | ) | ||||||||||
Amounts reclassified from AOCI | 1 | — | 1 | ||||||||||||
Net OCI | 1 | (4 | ) | (3 | ) | ||||||||||
Balance as of December 31, 2016 | (13 | ) | (9 | ) | (22 | ) | |||||||||
Amounts reclassified from AOCI | — | 1 | 1 | ||||||||||||
Net OCI | — | 1 | 1 | ||||||||||||
Balance as of December 31, 2017 | (13 | ) | (8 | ) | (21 | ) | |||||||||
OCI before reclassifications | — | (1 | ) | (1 | ) | ||||||||||
Amounts reclassified from AOCI | 1 | 1 | 2 | ||||||||||||
Net OCI | 1 | — | 1 | ||||||||||||
Balance as of December 31, 2018 | $ | (12 | ) | $ | (8 | ) | $ | (20 | ) |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Foreign currency translation adjustments | Financial instruments | Pension and other postretirement benefits | Total accumulated other comprehensive income (loss) | ||||||||||||||||||||
Sempra(2): | |||||||||||||||||||||||
Balance as of December 31, 2018 | $ | (564) | $ | (82) | $ | (118) | $ | (764) | |||||||||||||||
Adoption of ASU 2018-02 | — | (25) | (17) | (42) | |||||||||||||||||||
OCI before reclassifications(3) | (43) | (116) | (18) | (177) | |||||||||||||||||||
Amounts reclassified from AOCI(3) | — | 8 | 36 | 44 | |||||||||||||||||||
Net OCI | (43) | (108) | 18 | (133) | |||||||||||||||||||
Balance as of December 31, 2019 | (607) | (215) | (117) | (939) | |||||||||||||||||||
OCI before reclassifications(3)(4) | (102) | (163) | (26) | (291) | |||||||||||||||||||
Amounts reclassified from AOCI(3) | 645 | 47 | 38 | 730 | |||||||||||||||||||
Net OCI(4) | 543 | (116) | 12 | 439 | |||||||||||||||||||
Balance as of December 31, 2020 | (64) | (331) | (105) | (500) | |||||||||||||||||||
OCI before reclassifications(4) | (34) | 62 | 8 | 36 | |||||||||||||||||||
Amounts reclassified from AOCI(5) | 19 | 113 | 14 | 146 | |||||||||||||||||||
Net OCI(4)(5) | (15) | 175 | 22 | 182 | |||||||||||||||||||
Balance as of December 31, 2021 | $ | (79) | $ | (156) | $ | (83) | $ | (318) | |||||||||||||||
SDG&E: | |||||||||||||||||||||||
Balance as of December 31, 2018 | $ | (10) | $ | (10) | |||||||||||||||||||
Adoption of ASU 2018-02 | (2) | (2) | |||||||||||||||||||||
OCI before reclassifications | (5) | (5) | |||||||||||||||||||||
Amounts reclassified from AOCI | 1 | 1 | |||||||||||||||||||||
Net OCI | (4) | (4) | |||||||||||||||||||||
Balance as of December 31, 2019 | (16) | (16) | |||||||||||||||||||||
OCI before reclassifications(3) | (4) | (4) | |||||||||||||||||||||
Amounts reclassified from AOCI(3) | 10 | 10 | |||||||||||||||||||||
Net OCI | 6 | 6 | |||||||||||||||||||||
Balance as of December 31, 2020 | (10) | (10) | |||||||||||||||||||||
OCI before reclassifications | (1) | (1) | |||||||||||||||||||||
Amounts reclassified from AOCI | 1 | 1 | |||||||||||||||||||||
Net OCI | — | — | |||||||||||||||||||||
Balance as of December 31, 2021 | $ | (10) | $ | (10) | |||||||||||||||||||
SoCalGas: | |||||||||||||||||||||||
Balance as of December 31, 2018 | $ | (12) | $ | (8) | $ | (20) | |||||||||||||||||
Adoption of ASU 2018-02 | (2) | (2) | (4) | ||||||||||||||||||||
OCI before reclassifications | — | (4) | (4) | ||||||||||||||||||||
Amounts reclassified from AOCI(3) | 1 | 4 | 5 | ||||||||||||||||||||
Net OCI | 1 | — | 1 | ||||||||||||||||||||
Balance as of December 31, 2019 | (13) | (10) | (23) | ||||||||||||||||||||
OCI before reclassifications(3) | — | (10) | (10) | ||||||||||||||||||||
Amounts reclassified from AOCI(3) | — | 2 | 2 | ||||||||||||||||||||
Net OCI | — | (8) | (8) | ||||||||||||||||||||
Balance as of December 31, 2020 | (13) | (18) | (31) | ||||||||||||||||||||
OCI before reclassifications | — | (2) | (2) | ||||||||||||||||||||
Amounts reclassified from AOCI | — | 2 | 2 | ||||||||||||||||||||
Net OCI | — | — | — | ||||||||||||||||||||
Balance as of December 31, 2021 | $ | (13) | $ | (18) | $ | (31) |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||||||||
Details about accumulated other comprehensive income (loss) components | Amounts reclassified from accumulated other comprehensive income (loss) | Affected line item on Consolidated Statements of Operations | Details about accumulated other comprehensive income (loss) components | Amounts reclassified from accumulated other comprehensive income (loss) | Affected line item on Consolidated Statements of Operations | |||||||||||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||||||||||||||||||||
Sempra: | Sempra: | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | Foreign currency translation adjustments | $ | — | $ | 645 | $ | — | Income from Discontinued Operations, Net of Income Tax | ||||||||||||||||||||||||||||
Financial instruments: | Financial instruments: | |||||||||||||||||||||||||||||||||||
Interest rate and foreign exchange instruments(1) | $ | — | $ | (4 | ) | $ | 17 | Interest Expense | ||||||||||||||||||||||||||||
Interest rate instruments | Interest rate instruments | $ | — | $ | — | $ | 10 | Gain (Loss) on Sale of Assets | ||||||||||||||||||||||||||||
Interest rate instruments(1) | Interest rate instruments(1) | 11 | 10 | 3 | Interest Expense | |||||||||||||||||||||||||||||||
Interest rate instruments | Interest rate instruments | 73 | 46 | 3 | Equity Earnings(2) | |||||||||||||||||||||||||||||||
Foreign exchange instruments | Foreign exchange instruments | 1 | (1) | 2 | Revenues: Energy-Related Businesses | |||||||||||||||||||||||||||||||
(2 | ) | — | — | Other Income, Net | ||||||||||||||||||||||||||||||||
Interest rate instruments | 9 | — | — | Gain on Sale of Assets | ||||||||||||||||||||||||||||||||
Foreign exchange instruments | Foreign exchange instruments | — | — | 2 | Equity Earnings(2) | |||||||||||||||||||||||||||||||
Interest rate and foreign exchange instruments | 7 | 20 | 15 | Equity Earnings | Interest rate and foreign exchange instruments | 1 | 1 | — | Interest Expense | |||||||||||||||||||||||||||
Interest rate and foreign exchange instruments | — | — | 7 | Remeasurement of Equity Method Investment | ||||||||||||||||||||||||||||||||
Foreign exchange instruments | (1 | ) | (2 | ) | — | Revenues: Energy-Related Businesses | ||||||||||||||||||||||||||||||
Commodity contracts not subject to rate recovery | — | 9 | (6 | ) | Revenues: Energy-Related Businesses | |||||||||||||||||||||||||||||||
6 | 11 | (9) | Other Income (Expense) , Net | |||||||||||||||||||||||||||||||||
Total before income tax | 13 | 23 | 33 | Total before income tax | 92 | 67 | 11 | |||||||||||||||||||||||||||||
(4 | ) | (6 | ) | (6 | ) | Income Tax Expense | (24) | (19) | (2) | Income Tax Expense | ||||||||||||||||||||||||||
Net of income tax | 9 | 17 | 27 | Net of income tax | 68 | 48 | 9 | |||||||||||||||||||||||||||||
(6 | ) | (10 | ) | (15 | ) | Earnings Attributable to Noncontrolling Interests | (2) | (1) | (1) | Earnings Attributable to Noncontrolling Interests | ||||||||||||||||||||||||||
$ | 3 | $ | 7 | $ | 12 | $ | 66 | $ | 47 | $ | 8 | |||||||||||||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||||||||||||||||||||
Amortization of actuarial loss(2) | $ | 12 | $ | 10 | $ | 10 | Other Income, Net | |||||||||||||||||||||||||||||
Amortization of prior service cost(2) | 2 | 1 | 1 | Other Income, Net | ||||||||||||||||||||||||||||||||
Settlements(2) | 12 | 8 | — | Other Income, Net | ||||||||||||||||||||||||||||||||
Pension and other postretirement benefits(3): | Pension and other postretirement benefits(3): | |||||||||||||||||||||||||||||||||||
Amortization of actuarial loss | Amortization of actuarial loss | $ | 8 | $ | 8 | $ | 12 | Other Income (Expense), Net | ||||||||||||||||||||||||||||
Amortization of actuarial loss | Amortization of actuarial loss | — | 6 | 1 | Income from Discontinued Operations, Net of Income Tax | |||||||||||||||||||||||||||||||
Amortization of prior service cost | Amortization of prior service cost | 4 | 4 | 3 | Other Income (Expense), Net | |||||||||||||||||||||||||||||||
Settlement charges | Settlement charges | 7 | 22 | 28 | Other Income (Expense), Net | |||||||||||||||||||||||||||||||
Total before income tax | 26 | 19 | 11 | Total before income tax | 19 | 40 | 44 | |||||||||||||||||||||||||||||
— | (2) | — | Income from Discontinued Operations, Net of Income Tax | |||||||||||||||||||||||||||||||||
(8 | ) | (7 | ) | (5 | ) | Income Tax Expense | (5) | (9) | (12) | Income Tax Expense | ||||||||||||||||||||||||||
Net of income tax | $ | 18 | $ | 12 | $ | 6 | Net of income tax | $ | 14 | $ | 29 | $ | 32 | |||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | 21 | $ | 19 | $ | 18 | Total reclassifications for the period, net of tax | $ | 80 | $ | 721 | $ | 40 | |||||||||||||||||||||||
SDG&E: | SDG&E: | |||||||||||||||||||||||||||||||||||
Financial instruments: | Financial instruments: | |||||||||||||||||||||||||||||||||||
Interest rate instruments(1) | $ | 7 | $ | 13 | $ | 12 | Interest Expense | Interest rate instruments(1) | $ | — | $ | — | $ | 3 | Interest Expense | |||||||||||||||||||||
(7 | ) | (13 | ) | (12 | ) | (Earnings) Losses Attributable to Noncontrolling Interest | — | — | (3) | Earnings Attributable to Noncontrolling Interest | ||||||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||||||||||||||||||||
Amortization of actuarial loss(2) | $ | 1 | $ | 1 | $ | 1 | Other Income, Net | |||||||||||||||||||||||||||||
Settlements(2) | 4 | — | — | Other Income, Net | ||||||||||||||||||||||||||||||||
Pension and other postretirement benefits(3): | Pension and other postretirement benefits(3): | |||||||||||||||||||||||||||||||||||
Amortization of actuarial loss | Amortization of actuarial loss | $ | — | $ | 1 | $ | — | Other Income, Net | ||||||||||||||||||||||||||||
Amortization of prior service cost | Amortization of prior service cost | 1 | 1 | 1 | Other Income, Net | |||||||||||||||||||||||||||||||
Total before income tax | 5 | 1 | 1 | Total before income tax | 1 | 2 | 1 | |||||||||||||||||||||||||||||
(1 | ) | — | — | Income Tax Expense | — | (1) | — | Income Tax Expense | ||||||||||||||||||||||||||||
Net of income tax | $ | 4 | $ | 1 | $ | 1 | Net of income tax | $ | 1 | $ | 1 | $ | 1 | |||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | 4 | $ | 1 | $ | 1 | Total reclassifications for the period, net of tax | $ | 1 | $ | 1 | $ | 1 | |||||||||||||||||||||||
SoCalGas: | SoCalGas: | |||||||||||||||||||||||||||||||||||
Financial instruments: | Financial instruments: | |||||||||||||||||||||||||||||||||||
Interest rate instruments | $ | 1 | $ | — | $ | 1 | Interest Expense | Interest rate instruments | $ | — | $ | — | $ | 1 | Interest Expense | |||||||||||||||||||||
Pension and other postretirement benefits: | ||||||||||||||||||||||||||||||||||||
Amortization of prior service cost(2) | $ | 1 | $ | 1 | $ | — | Other Income, Net | |||||||||||||||||||||||||||||
Pension and other postretirement benefits(3): | Pension and other postretirement benefits(3): | |||||||||||||||||||||||||||||||||||
Amortization of actuarial loss | Amortization of actuarial loss | $ | 1 | $ | 1 | $ | 1 | Other Expense, Net | ||||||||||||||||||||||||||||
Amortization of prior service cost | Amortization of prior service cost | 1 | 1 | — | Other Expense, Net | |||||||||||||||||||||||||||||||
Total before income tax | Total before income tax | 2 | 2 | 1 | ||||||||||||||||||||||||||||||||
— | — | (1) | Income Tax Benefit (Expense) | |||||||||||||||||||||||||||||||||
Net of income tax | Net of income tax | $ | 2 | $ | 2 | $ | — | |||||||||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | 2 | $ | 1 | $ | 1 | Total reclassifications for the period, net of tax | $ | 2 | $ | 2 | $ | 1 |
(1) Amounts in 2019 include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. (2) Equity earnings at our foreign equity method investees are recognized after tax. (3)Amounts are included in the computation of net periodic benefit cost (see “Net Periodic Benefit Cost” in Note 9). F-45 |
OTHER NONCONTROLLING INTERESTS | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Percent ownership held by noncontrolling interests | Equity held by noncontrolling interests | ||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Sempra Infrastructure: | |||||||||||||||||||||||||||||||||||
SI Partners | 20.0 | % | — | % | — | % | $ | 1,384 | $ | — | $ | — | |||||||||||||||||||||||
SI Partners subsidiaries(1) | 0.1 - 16.6 | 17.5 - 29.8 | 10.0 - 46.3 | 34 | 1,540 | 1,622 | |||||||||||||||||||||||||||||
Parent and other: | |||||||||||||||||||||||||||||||||||
PXiSE | — | 20.0 | 20.0 | — | 1 | 1 | |||||||||||||||||||||||||||||
Discontinued Operations: | |||||||||||||||||||||||||||||||||||
Chilquinta Energía subsidiaries(1) | — | — | 19.7 - 43.4 | — | — | 23 | |||||||||||||||||||||||||||||
Luz del Sur | — | — | 16.4 | — | — | 205 | |||||||||||||||||||||||||||||
Tecsur | — | — | 9.8 | — | — | 5 | |||||||||||||||||||||||||||||
Total Sempra | $ | 1,418 | $ | 1,541 | $ | 1,856 |
OTHER NONCONTROLLING INTERESTS | |||||||||||||
(Dollars in millions) | |||||||||||||
Percent ownership held by noncontrolling interests | Equity (deficit) held by noncontrolling interests | ||||||||||||
December 31, | December 31, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
SDG&E: | |||||||||||||
Otay Mesa VIE | 100 | % | 100 | % | $ | 100 | $ | 28 | |||||
Sempra South American Utilities: | |||||||||||||
Chilquinta Energía subsidiaries(1) | 19.7 - 43.4 | 22.9 - 43.4 | 23 | 24 | |||||||||
Luz del Sur | 16.4 | 16.4 | 193 | 189 | |||||||||
Tecsur | 9.8 | 9.8 | 4 | 4 | |||||||||
Sempra Mexico: | |||||||||||||
IEnova(2)(3) | 33.5 | 33.6 | 1,605 | 1,532 | |||||||||
Sempra Renewables: | |||||||||||||
Tax equity arrangements – wind(4) | NA | NA | 158 | 181 | |||||||||
Tax equity arrangements – solar(4) | — | NA | — | 450 | |||||||||
PXiSE Energy Solutions, LLC | 11.1 | — | 1 | — | |||||||||
Sempra LNG & Midstream: | |||||||||||||
Bay Gas | 9.1 | 9.1 | 18 | 28 | |||||||||
Liberty Gas Storage, LLC | 24.6 | 24.6 | (12 | ) | 14 | ||||||||
Total Sempra Energy | $ | 2,090 | $ | 2,450 |
AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Sempra: | |||||||||||||||||
Total due from various unconsolidated affiliates – current | $ | 23 | $ | 20 | $ | 32 | |||||||||||
Sempra Infrastructure: | |||||||||||||||||
ESJ JV – Note due December 31, 2022, net of negligible allowance for credit losses at December 31, 2020(1) | $ | — | $ | 85 | $ | — | |||||||||||
IMG JV – Note due March 15, 2022, net of allowance for credit losses of $1 and $3 at December 31, 2021 and 2020, respectively(2) | 637 | 695 | 742 | ||||||||||||||
Total due from unconsolidated affiliates – noncurrent | $ | 637 | $ | 780 | $ | 742 | |||||||||||
Sempra Infrastructure – TAG Pipelines Norte, S. de R.L. de C.V. – Note due December 20, 2021(3)(4) | $ | — | $ | (41) | $ | — | |||||||||||
Various affiliates | — | (4) | (5) | ||||||||||||||
Total due to unconsolidated affiliates – current | $ | — | $ | (45) | $ | (5) | |||||||||||
Sempra Infrastructure(4): | |||||||||||||||||
TAG Pipelines Norte, S. de R.L. de C.V.: | |||||||||||||||||
Note due December 20, 2021(3) | $ | — | $ | — | $ | (39) | |||||||||||
5.5% Note due January 9, 2024(5) | (69) | (68) | — | ||||||||||||||
5.5% Note due January 14, 2025(5) | (21) | — | — | ||||||||||||||
5.5% Note due July 16, 2025(5) | (20) | — | — | ||||||||||||||
TAG JV – 5.74% Note due December 17, 2029(5) | (177) | (166) | (156) | ||||||||||||||
Total due to unconsolidated affiliates – noncurrent | $ | (287) | $ | (234) | $ | (195) | |||||||||||
SDG&E: | |||||||||||||||||
Sempra | $ | (40) | $ | (38) | $ | (37) | |||||||||||
SoCalGas | (48) | (21) | (10) | ||||||||||||||
Various affiliates | (9) | (5) | (6) | ||||||||||||||
Total due to unconsolidated affiliates – current | $ | (97) | $ | (64) | $ | (53) | |||||||||||
Income taxes due from Sempra(6) | $ | 19 | $ | — | $ | 130 | |||||||||||
SoCalGas: | |||||||||||||||||
SDG&E | $ | 48 | $ | 21 | $ | 10 | |||||||||||
Various affiliates | 1 | 1 | 1 | ||||||||||||||
Total due from unconsolidated affiliates – current | $ | 49 | $ | 22 | $ | 11 | |||||||||||
Sempra | $ | (36) | $ | (31) | $ | (45) | |||||||||||
Various affiliates | — | — | (2) | ||||||||||||||
Total due to unconsolidated affiliates – current | $ | (36) | $ | (31) | $ | (47) | |||||||||||
Income taxes due from (to) Sempra(6) | $ | 6 | $ | (37) | $ | 152 |
AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES | |||||||
(Dollars in millions) | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
Sempra Energy Consolidated: | |||||||
Total due from various unconsolidated affiliates – current | $ | 39 | $ | 37 | |||
Sempra South American Utilities(1): | |||||||
Eletrans – 4% Note(2) | $ | 43 | $ | 103 | |||
Other related party receivables | 1 | 1 | |||||
Sempra Mexico(1): | |||||||
IMG – Note due March 15, 2022(3) | 641 | 487 | |||||
Energía Sierra Juárez – Note(4) | 3 | 7 | |||||
Total due from unconsolidated affiliates – noncurrent | $ | 688 | $ | 598 | |||
Total due to various unconsolidated affiliates – current | $ | (10 | ) | $ | (7 | ) | |
Sempra Mexico(1): | |||||||
Total due to unconsolidated affiliates – noncurrent – TAG – Note due December 20, 2021(5) | $ | (37 | ) | $ | (35 | ) | |
SDG&E: | |||||||
Sempra Energy | $ | (43 | ) | $ | (30 | ) | |
SoCalGas | (6 | ) | (4 | ) | |||
Various affiliates | (12 | ) | (6 | ) | |||
Total due to unconsolidated affiliates – current | $ | (61 | ) | $ | (40 | ) | |
Income taxes due from Sempra Energy(6) | $ | 5 | $ | 27 | |||
SoCalGas: | |||||||
SDG&E | $ | 6 | $ | 4 | |||
Various affiliates | 1 | — | |||||
Total due from unconsolidated affiliates – current | $ | 7 | $ | 4 | |||
Total due to unconsolidated affiliates – current – Sempra Energy | $ | (34 | ) | $ | (35 | ) | |
Income taxes due (to) from Sempra Energy(6) | $ | (4 | ) | $ | 10 |
REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Revenues: | |||||||||||
Sempra Energy Consolidated | $ | 64 | $ | 43 | $ | 25 | |||||
SDG&E | 5 | 8 | 7 | ||||||||
SoCalGas | 64 | 74 | 76 | ||||||||
Cost of Sales: | |||||||||||
Sempra Energy Consolidated | $ | 46 | $ | 47 | $ | 72 | |||||
SDG&E | 73 | 71 | 64 |
INCOME STATEMENT IMPACT FROM UNCONSOLIDATED AFFILIATES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Sempra: | |||||||||||||||||
Revenues | $ | 31 | $ | 37 | $ | 52 | |||||||||||
Cost of sales | 11 | 45 | 50 | ||||||||||||||
Interest income | 50 | 56 | 74 | ||||||||||||||
Interest expense | 15 | 14 | 2 | ||||||||||||||
SDG&E: | |||||||||||||||||
Revenues | $ | 11 | $ | 6 | $ | 6 | |||||||||||
Cost of sales | 103 | 79 | 74 | ||||||||||||||
SoCalGas: | |||||||||||||||||
Revenues | $ | 98 | $ | 88 | $ | 69 | |||||||||||
Cost of sales(1) | 1 | — | 8 |
▪The CPUC requires that SDG&E’s and SoCalGas’ common equity ratios be no lower than one percentage point below the CPUC-authorized percentage of each entity’s authorized capital structure. The authorized percentage at December 31, 2021 is 52% at both SDG&E and SoCalGas. ▪SDG&E and SoCalGas each have a revolving credit line that requires it to maintain a ratio of consolidated indebtedness to consolidated capitalization (as defined in the agreements) of no more than 65%, as we discuss in Note 7. |
▪Oncor must remain in compliance with its debt-to-equity ratio established by the PUCT for ratemaking purposes and may not pay dividends or other distributions (except for contractual tax payments) if that payment would cause it to exceed its PUCT authorized debt-to-equity ratio. Oncor’s authorized regulatory capital structure is 57.5% debt to 42.5% equity at December 31, 2021. ▪If the credit rating on Oncor’s senior secured debt by any of the three major credit rating agencies falls below BBB (or the equivalent), Oncor will suspend dividends and other distributions (except for contractual tax payments), unless otherwise allowed by the PUCT. At December 31, 2021, all of Oncor’s senior secured ratings were above BBB. ▪Oncor’s revolving credit line and certain of its other debt agreements require it to maintain a consolidated senior debt-to-capitalization ratio of no more than 65% and observe certain affirmative covenants. At December 31, 2021, Oncor was in compliance with these covenants. |
▪Partnerships and JVs at |
OTHER INCOME, NET | ||||||||||||||||||||||||||||
OTHER INCOME (EXPENSE), NET | OTHER INCOME (EXPENSE), NET | |||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||
2018 | 2017(1) | 2016(1) | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||||||||||||
Sempra: | Sempra: | |||||||||||||||||||||||||||
Allowance for equity funds used during construction | $ | 98 | $ | 168 | $ | 116 | Allowance for equity funds used during construction | $ | 133 | $ | 128 | $ | 94 | |||||||||||||||
Investment (losses) gains(2) | (6 | ) | 56 | 23 | ||||||||||||||||||||||||
Gains (losses) on interest rate and foreign exchange instruments, net | 7 | 47 | (32 | ) | ||||||||||||||||||||||||
Foreign currency transaction losses(3) | (5 | ) | (35 | ) | (1 | ) | ||||||||||||||||||||||
Non-service component of net periodic benefit (cost) credit | (37 | ) | (21 | ) | 6 | |||||||||||||||||||||||
Electrical infrastructure relocation income | 7 | 3 | 10 | |||||||||||||||||||||||||
Investment gains, net(1) | Investment gains, net(1) | 50 | 41 | 61 | ||||||||||||||||||||||||
(Losses) gains on interest rate and foreign exchange instruments, net | (Losses) gains on interest rate and foreign exchange instruments, net | (28) | (67) | 34 | ||||||||||||||||||||||||
Foreign currency transaction (losses) gains, net(2) | Foreign currency transaction (losses) gains, net(2) | (18) | (25) | 21 | ||||||||||||||||||||||||
Non-service component of net periodic benefit cost | Non-service component of net periodic benefit cost | (67) | (102) | (132) | ||||||||||||||||||||||||
Interest on regulatory balancing accounts, net | 2 | 3 | 4 | Interest on regulatory balancing accounts, net | 6 | 14 | 14 | |||||||||||||||||||||
Sundry, net | 6 | 12 | 12 | Sundry, net | (18) | (37) | (15) | |||||||||||||||||||||
Total | $ | 72 | $ | 233 | $ | 138 | Total | $ | 58 | $ | (48) | $ | 77 | |||||||||||||||
SDG&E: | SDG&E: | |||||||||||||||||||||||||||
Allowance for equity funds used during construction | $ | 61 | $ | 63 | $ | 46 | Allowance for equity funds used during construction | $ | 81 | $ | 79 | $ | 56 | |||||||||||||||
Non-service component of net periodic benefit (cost) credit | (6 | ) | 4 | 14 | ||||||||||||||||||||||||
Non-service component of net periodic benefit cost | Non-service component of net periodic benefit cost | (13) | (20) | (20) | ||||||||||||||||||||||||
Interest on regulatory balancing accounts, net | 4 | 3 | 3 | Interest on regulatory balancing accounts, net | 6 | 9 | 13 | |||||||||||||||||||||
Sundry, net | (3 | ) | — | 1 | Sundry, net | (10) | (16) | (10) | ||||||||||||||||||||
Total | $ | 56 | $ | 70 | $ | 64 | Total | $ | 64 | $ | 52 | $ | 39 | |||||||||||||||
SoCalGas: | SoCalGas: | |||||||||||||||||||||||||||
Allowance for equity funds used during construction | $ | 36 | $ | 44 | $ | 40 | Allowance for equity funds used during construction | $ | 48 | $ | 41 | $ | 34 | |||||||||||||||
Non-service component of net periodic benefit (cost) credit | (10 | ) | (5 | ) | 6 | |||||||||||||||||||||||
Non-service component of net periodic benefit cost | Non-service component of net periodic benefit cost | (40) | (54) | (72) | ||||||||||||||||||||||||
Interest on regulatory balancing accounts, net | (2 | ) | — | 1 | Interest on regulatory balancing accounts, net | — | 5 | 1 | ||||||||||||||||||||
Sundry, net | (9 | ) | (8 | ) | (9 | ) | Sundry, net | (22) | (20) | (18) | ||||||||||||||||||
Total | $ | 15 | $ | 31 | $ | 38 | Total | $ | (14) | $ | (28) | $ | (55) |
EXPECTED IMPACT FROM ADOPTION OF THE LEASE STANDARD | ||||||||||||
(Dollars in millions) | ||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | ||||||||||
Other current assets | $ | (68 | ) | $ | — | $ | — | |||||
Property, plant and equipment, net | (147 | ) | — | — | ||||||||
Right-of-use assets – operating leases | 623 | 130 | 116 | |||||||||
Deferred income taxes | (3 | ) | — | — | ||||||||
Other current liabilities | 81 | 20 | 23 | |||||||||
Long-term debt | (138 | ) | — | — | ||||||||
Deferred credits and other | 445 | 110 | 93 | |||||||||
Retained earnings | 17 | — | — |
IMPACT FROM ADOPTION OF ASU 2017-07 | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||
As previously reported | Effect of adoption | As adjusted | As previously reported | Effect of adoption | As adjusted | ||||||||||||||||||
Sempra Energy: | |||||||||||||||||||||||
Operation and maintenance | $ | 3,117 | $ | (21 | ) | $ | 3,096 | $ | 2,970 | $ | 6 | $ | 2,976 | ||||||||||
Other income, net | 254 | (21 | ) | 233 | 132 | 6 | 138 | ||||||||||||||||
SDG&E: | |||||||||||||||||||||||
Operation and maintenance | $ | 1,020 | $ | 4 | $ | 1,024 | $ | 1,048 | $ | 14 | $ | 1,062 | |||||||||||
Total operating expenses | 3,763 | 4 | 3,767 | 3,263 | 14 | 3,277 | |||||||||||||||||
Operating income | 713 | (4 | ) | 709 | 990 | (14 | ) | 976 | |||||||||||||||
Other income, net | 66 | 4 | 70 | 50 | 14 | 64 | |||||||||||||||||
SoCalGas: | |||||||||||||||||||||||
Operation and maintenance | $ | 1,479 | $ | (5 | ) | $ | 1,474 | $ | 1,385 | $ | 6 | $ | 1,391 | ||||||||||
Total operating expenses | 3,163 | (5 | ) | 3,158 | 2,914 | 6 | 2,920 | ||||||||||||||||
Operating income | 622 | 5 | 627 | 557 | (6 | ) | 551 | ||||||||||||||||
Other income, net | 36 | (5 | ) | 31 | 32 | 6 | 38 |
DISAGGREGATED REVENUES | |||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||
Year ended December 31, 2018 | |||||||||||||||||||||||||||||||
SDG&E | SoCalGas | Sempra South American Utilities | Sempra Mexico | Sempra Renewables | Sempra LNG & Midstream | Consolidating adjustments | Sempra Energy Consolidated | ||||||||||||||||||||||||
By major service line: | |||||||||||||||||||||||||||||||
Utilities | $ | 4,788 | $ | 3,577 | $ | 1,507 | $ | 78 | $ | — | $ | — | $ | (69 | ) | $ | 9,881 | ||||||||||||||
Midstream | — | — | — | 630 | — | 224 | (138 | ) | 716 | ||||||||||||||||||||||
Renewables | — | — | — | 108 | 46 | 2 | (2 | ) | 154 | ||||||||||||||||||||||
Other | — | — | 73 | 203 | — | 6 | (6 | ) | 276 | ||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,788 | $ | 3,577 | $ | 1,580 | $ | 1,019 | $ | 46 | $ | 232 | $ | (215 | ) | $ | 11,027 | ||||||||||||||
By market: | |||||||||||||||||||||||||||||||
Electric | $ | 4,297 | $ | — | $ | 1,580 | $ | 308 | $ | 46 | $ | 8 | $ | (12 | ) | $ | 6,227 | ||||||||||||||
Gas | 491 | 3,577 | — | 711 | — | 224 | (203 | ) | 4,800 | ||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,788 | $ | 3,577 | $ | 1,580 | $ | 1,019 | $ | 46 | $ | 232 | $ | (215 | ) | $ | 11,027 | ||||||||||||||
By timing of recognition: | |||||||||||||||||||||||||||||||
Over time | $ | 4,677 | $ | 3,454 | $ | 1,554 | $ | 1,019 | $ | 46 | $ | 210 | $ | (204 | ) | $ | 10,756 | ||||||||||||||
Point in time | 111 | 123 | 26 | — | — | 22 | (11 | ) | 271 | ||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,788 | $ | 3,577 | $ | 1,580 | $ | 1,019 | $ | 46 | $ | 232 | $ | (215 | ) | $ | 11,027 | ||||||||||||||
Revenues from contracts with customers | $ | 4,788 | $ | 3,577 | $ | 1,580 | $ | 1,019 | $ | 46 | $ | 232 | $ | (215 | ) | $ | 11,027 | ||||||||||||||
Utilities regulatory revenues | (220 | ) | 385 | — | — | — | — | — | 165 | ||||||||||||||||||||||
Other revenues | — | — | 5 | 357 | 78 | 240 | (185 | ) | 495 | ||||||||||||||||||||||
Total revenues | $ | 4,568 | $ | 3,962 | $ | 1,585 | $ | 1,376 | $ | 124 | $ | 472 | $ | (400 | ) | $ | 11,687 |
DISAGGREGATED REVENUES | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
SDG&E | SoCalGas | Sempra Infrastructure | Sempra Renewables | Consolidating adjustments and Parent and other | Sempra | ||||||||||||||||||||||||||||||
Year ended December 31, 2021 | |||||||||||||||||||||||||||||||||||
By major service line: | |||||||||||||||||||||||||||||||||||
Utilities | $ | 5,144 | $ | 5,424 | $ | 81 | $ | — | $ | (109) | $ | 10,540 | |||||||||||||||||||||||
Energy-related businesses | — | — | 1,165 | — | (29) | 1,136 | |||||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 5,144 | $ | 5,424 | $ | 1,246 | $ | — | $ | (138) | $ | 11,676 | |||||||||||||||||||||||
By market: | |||||||||||||||||||||||||||||||||||
Gas | $ | 790 | $ | 5,424 | $ | 856 | $ | — | $ | (101) | $ | 6,969 | |||||||||||||||||||||||
Electric | 4,354 | — | 390 | — | (37) | 4,707 | |||||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 5,144 | $ | 5,424 | $ | 1,246 | $ | — | $ | (138) | $ | 11,676 | |||||||||||||||||||||||
Revenues from contracts with customers | $ | 5,144 | $ | 5,424 | $ | 1,246 | $ | — | $ | (138) | $ | 11,676 | |||||||||||||||||||||||
Utilities regulatory revenues | 360 | 91 | — | — | — | 451 | |||||||||||||||||||||||||||||
Other revenues | — | — | 751 | — | (21) | 730 | |||||||||||||||||||||||||||||
Total revenues | $ | 5,504 | $ | 5,515 | $ | 1,997 | $ | — | $ | (159) | $ | 12,857 | |||||||||||||||||||||||
Year ended December 31, 2020 | |||||||||||||||||||||||||||||||||||
By major service line: | |||||||||||||||||||||||||||||||||||
Utilities | $ | 4,920 | $ | 4,571 | $ | 58 | $ | — | $ | (94) | $ | 9,455 | |||||||||||||||||||||||
Energy-related businesses | — | — | 854 | — | 1 | 855 | |||||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,920 | $ | 4,571 | $ | 912 | $ | — | $ | (93) | $ | 10,310 | |||||||||||||||||||||||
By market: | |||||||||||||||||||||||||||||||||||
Gas | $ | 692 | $ | 4,571 | $ | 623 | $ | — | $ | (90) | $ | 5,796 | |||||||||||||||||||||||
Electric | 4,228 | — | 289 | — | (3) | 4,514 | |||||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,920 | $ | 4,571 | $ | 912 | $ | — | $ | (93) | $ | 10,310 | |||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,920 | $ | 4,571 | $ | 912 | $ | — | $ | (93) | $ | 10,310 | |||||||||||||||||||||||
Utilities regulatory revenues | 393 | 177 | — | — | — | 570 | |||||||||||||||||||||||||||||
Other revenues | — | — | 488 | — | 2 | 490 | |||||||||||||||||||||||||||||
Total revenues | $ | 5,313 | $ | 4,748 | $ | 1,400 | $ | — | $ | (91) | $ | 11,370 | |||||||||||||||||||||||
Year ended December 31, 2019 | |||||||||||||||||||||||||||||||||||
By major service line: | |||||||||||||||||||||||||||||||||||
Utilities | $ | 4,819 | $ | 4,367 | $ | 73 | $ | — | $ | (75) | $ | 9,184 | |||||||||||||||||||||||
Energy-related businesses | — | — | 951 | 5 | 1 | 957 | |||||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,819 | $ | 4,367 | $ | 1,024 | $ | 5 | $ | (74) | $ | 10,141 | |||||||||||||||||||||||
By market: | |||||||||||||||||||||||||||||||||||
Gas | $ | 587 | $ | 4,367 | $ | 711 | $ | — | $ | (69) | $ | 5,596 | |||||||||||||||||||||||
Electric | 4,232 | — | 313 | 5 | (5) | 4,545 | |||||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,819 | $ | 4,367 | $ | 1,024 | $ | 5 | $ | (74) | $ | 10,141 | |||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,819 | $ | 4,367 | $ | 1,024 | $ | 5 | $ | (74) | $ | 10,141 | |||||||||||||||||||||||
Utilities regulatory revenues | 106 | 158 | — | — | — | 264 | |||||||||||||||||||||||||||||
Other revenues | — | — | 430 | 5 | (11) | 424 | |||||||||||||||||||||||||||||
Total revenues | $ | 4,925 | $ | 4,525 | $ | 1,454 | $ | 10 | $ | (85) | $ | 10,829 |
REMAINING PERFORMANCE OBLIGATIONS(1) | ||||||||
(Dollars in millions) | ||||||||
Sempra | SDG&E | |||||||
2022 | $ | 368 | $ | 4 | ||||
2023 | 367 | 4 | ||||||
2024 | 365 | 4 | ||||||
2025 | 362 | 4 | ||||||
2026 | 361 | 4 | ||||||
Thereafter | 4,289 | 63 | ||||||
Total revenues to be recognized | $ | 6,112 | $ | 83 |
REMAINING PERFORMANCE OBLIGATIONS(1) | ||||||
(Dollars in millions) | ||||||
Sempra Energy Consolidated | SDG&E | |||||
2019 | $ | 540 | $ | 3 | ||
2020 | 534 | 3 | ||||
2021 | 529 | 3 | ||||
2022 | 528 | 3 | ||||
2023 | 516 | 3 | ||||
Thereafter | 2,813 | 52 | ||||
Total revenues to be recognized | $ | 5,460 | $ | 67 |
CONTRACT LIABILITIES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Sempra: | |||||||||||||||||
Contract liabilities at January 1 | $ | (207) | $ | (163) | $ | (70) | |||||||||||
Revenue from performance obligations satisfied during reporting period | 52 | 4 | 2 | ||||||||||||||
Payments received in advance | (123) | (48) | (95) | ||||||||||||||
Contract liabilities at December 31(1) | $ | (278) | $ | (207) | $ | (163) | |||||||||||
SDG&E: | |||||||||||||||||
Contract liabilities at January 1 | $ | (87) | $ | (91) | $ | — | |||||||||||
Revenue from performance obligations satisfied during reporting period | 4 | 4 | 1 | ||||||||||||||
Payments received in advance | — | — | (92) | ||||||||||||||
Contract liabilities at December 31(2) | $ | (83) | $ | (87) | $ | (91) |
CONTRACT LIABILITIES | |||
(Dollars in millions) | |||
Opening balance, January 1, 2018 | $ | — | |
Adoption of ASC 606 adjustment | (68 | ) | |
Revenue from performance obligations satisfied during reporting period | 31 | ||
Payments received in advance | (39 | ) | |
Closing balance, December 31, 2018(1) | $ | (76 | ) |
RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS | ||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||||
Sempra: | ||||||||||||||||||||||||||
Accounts receivable – trade, net | $ | 1,886 | $ | 1,447 | $ | 1,163 | ||||||||||||||||||||
Accounts receivable – other, net | 19 | 12 | 16 | |||||||||||||||||||||||
Due from unconsolidated affiliates – current(1) | 2 | 3 | 5 | |||||||||||||||||||||||
Other long-term assets | 70 | — | — | |||||||||||||||||||||||
Total | $ | 1,977 | $ | 1,462 | $ | 1,184 | ||||||||||||||||||||
SDG&E: | ||||||||||||||||||||||||||
Accounts receivable – trade, net | $ | 715 | $ | 573 | $ | 398 | ||||||||||||||||||||
Accounts receivable – other, net | 9 | 8 | 5 | |||||||||||||||||||||||
Due from unconsolidated affiliates – current(1) | 2 | 2 | 2 | |||||||||||||||||||||||
Other long-term assets | 25 | — | — | |||||||||||||||||||||||
Total | $ | 751 | $ | 583 | $ | 405 | ||||||||||||||||||||
SoCalGas: | ||||||||||||||||||||||||||
Accounts receivable – trade, net | $ | 1,084 | $ | 786 | $ | 710 | ||||||||||||||||||||
Accounts receivable – other, net | 10 | 4 | 11 | |||||||||||||||||||||||
Other long-term assets | 45 | — | — | |||||||||||||||||||||||
Total | $ | 1,139 | $ | 790 | $ | 721 |
RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS | |||||||
(Dollars in millions) | |||||||
December 31, 2018 | January 1, 2018 | ||||||
Sempra Energy Consolidated: | |||||||
Accounts receivable – trade, net | $ | 1,333 | $ | 1,194 | |||
Accounts receivable – other, net | 11 | 10 | |||||
Due from unconsolidated affiliates – current(1) | 4 | 8 | |||||
Assets held for sale | 6 | — | |||||
Total | $ | 1,354 | $ | 1,212 | |||
SDG&E: | |||||||
Accounts receivable – trade, net | $ | 368 | $ | 362 | |||
Accounts receivable – other, net | 6 | 3 | |||||
Due from unconsolidated affiliates – current(1) | 3 | 3 | |||||
Total | $ | 377 | $ | 368 | |||
SoCalGas: | |||||||
Accounts receivable – trade, net | $ | 634 | $ | 517 | |||
Accounts receivable – other, net | 5 | 7 | |||||
Total | $ | 639 | $ | 524 |
REGULATORY ASSETS (LIABILITIES) | REGULATORY ASSETS (LIABILITIES) | REGULATORY ASSETS (LIABILITIES) | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2018 | 2017 | 2021 | 2020 | 2019 | ||||||||||||||||||||
SDG&E: | SDG&E: | |||||||||||||||||||||||
Fixed-price contracts and other derivatives | $ | (150 | ) | $ | 96 | Fixed-price contracts and other derivatives | $ | (50) | $ | (53) | $ | 8 | ||||||||||||
Deferred income taxes refundable in rates | (236 | ) | (281 | ) | ||||||||||||||||||||
Deferred income taxes recoverable (refundable) in rates | Deferred income taxes recoverable (refundable) in rates | 125 | 22 | (108) | ||||||||||||||||||||
Pension and other postretirement benefit plan obligations | 186 | 153 | Pension and other postretirement benefit plan obligations | (7) | 50 | 103 | ||||||||||||||||||
Removal obligations | (1,848 | ) | (1,846 | ) | Removal obligations | (2,251) | (2,121) | (2,056) | ||||||||||||||||
Unamortized loss on reacquired debt | 7 | 9 | ||||||||||||||||||||||
Environmental costs | 28 | 29 | Environmental costs | 62 | 56 | 45 | ||||||||||||||||||
Sunrise Powerlink fire mitigation | 120 | 119 | Sunrise Powerlink fire mitigation | 122 | 121 | 121 | ||||||||||||||||||
Regulatory balancing accounts(1) | ||||||||||||||||||||||||
Regulatory balancing accounts(1)(2) | Regulatory balancing accounts(1)(2) | |||||||||||||||||||||||
Commodity – electric | (8 | ) | 82 | Commodity – electric | 77 | 72 | 102 | |||||||||||||||||
Gas transportation | 45 | 22 | Gas transportation | 49 | 35 | 22 | ||||||||||||||||||
Safety and reliability | 70 | 48 | Safety and reliability | 67 | 67 | 77 | ||||||||||||||||||
Public purpose programs | (62 | ) | (70 | ) | Public purpose programs | (107) | (158) | (124) | ||||||||||||||||
2019 GRC retroactive impacts | 2019 GRC retroactive impacts | — | 56 | 111 | ||||||||||||||||||||
Wildfire mitigation plan | Wildfire mitigation plan | 178 | 93 | 12 | ||||||||||||||||||||
Liability insurance premium | Liability insurance premium | 110 | 79 | 24 | ||||||||||||||||||||
Other balancing accounts | 145 | 233 | Other balancing accounts | 207 | 61 | 70 | ||||||||||||||||||
Other regulatory liabilities, net(2) | (177 | ) | (70 | ) | ||||||||||||||||||||
Other regulatory assets (liabilities), net(2) | Other regulatory assets (liabilities), net(2) | 119 | 72 | (153) | ||||||||||||||||||||
Total SDG&E | (1,880 | ) | (1,476 | ) | Total SDG&E | (1,299) | (1,548) | (1,746) | ||||||||||||||||
SoCalGas: | SoCalGas: | |||||||||||||||||||||||
Deferred income taxes recoverable (refundable) in rates | Deferred income taxes recoverable (refundable) in rates | 44 | (82) | (203) | ||||||||||||||||||||
Pension and other postretirement benefit plan obligations | 470 | 513 | Pension and other postretirement benefit plan obligations | 51 | 417 | 400 | ||||||||||||||||||
Employee benefit costs | 49 | 45 | Employee benefit costs | 31 | 37 | 44 | ||||||||||||||||||
Removal obligations | (833 | ) | (924 | ) | Removal obligations | (627) | (685) | (728) | ||||||||||||||||
Deferred income taxes refundable in rates | (336 | ) | (437 | ) | ||||||||||||||||||||
Unamortized loss on reacquired debt | 7 | 8 | ||||||||||||||||||||||
Environmental costs | 28 | 22 | Environmental costs | 34 | 36 | 40 | ||||||||||||||||||
Workers’ compensation | 9 | 12 | ||||||||||||||||||||||
Regulatory balancing accounts(1) | ||||||||||||||||||||||||
Regulatory balancing accounts(1)(2) | Regulatory balancing accounts(1)(2) | |||||||||||||||||||||||
Commodity – gas, including transportation | 196 | 151 | Commodity – gas, including transportation | (146) | (56) | (118) | ||||||||||||||||||
Safety and reliability | 332 | 266 | Safety and reliability | 339 | 335 | 295 | ||||||||||||||||||
Public purpose programs | (325 | ) | (274 | ) | Public purpose programs | (183) | (253) | (273) | ||||||||||||||||
2019 GRC retroactive impacts | 2019 GRC retroactive impacts | — | 202 | 400 | ||||||||||||||||||||
Liability insurance premium | Liability insurance premium | 16 | 7 | 4 | ||||||||||||||||||||
Other balancing accounts | (68 | ) | (114 | ) | Other balancing accounts | 42 | (65) | (11) | ||||||||||||||||
Other regulatory liabilities, net(2) | (130 | ) | (64 | ) | ||||||||||||||||||||
Other regulatory assets (liabilities), net(2) | Other regulatory assets (liabilities), net(2) | 142 | 75 | (101) | ||||||||||||||||||||
Total SoCalGas | (601 | ) | (796 | ) | Total SoCalGas | (257) | (32) | (251) | ||||||||||||||||
Sempra Mexico: | ||||||||||||||||||||||||
Sempra Infrastructure: | Sempra Infrastructure: | |||||||||||||||||||||||
Deferred income taxes recoverable in rates | 81 | 83 | Deferred income taxes recoverable in rates | 77 | 80 | 83 | ||||||||||||||||||
Other regulatory assets | 6 | — | Other regulatory assets | — | — | 6 | ||||||||||||||||||
Total Sempra Energy Consolidated | $ | (2,394 | ) | $ | (2,189 | ) | ||||||||||||||||||
Total Sempra | Total Sempra | $ | (1,479) | $ | (1,500) | $ | (1,908) |
(1) At December 31, 2021, 2020 and 2019, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $358, $139 and $108, respectively, and for SoCalGas was $410, $218 and $500, respectively. (2) Includes regulatory assets earning a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate. Regulatory Assets Not Earning a Return ▪Regulatory assets arising from fixed-price contracts and other derivatives are offset by corresponding liabilities arising from purchased power and natural gas commodity and transportation contracts. The regulatory asset is increased/decreased based on changes in the fair market value of the contracts. It is also reduced as payments are made for commodities and services under these contracts. The related amounts are recovered in rates once these contracts are settled, generally within two years. ▪Deferred income taxes recoverable/refundable in rates are based on current regulatory ratemaking and income tax laws. SDG&E, SoCalGas and Sempra Infrastructure expect to recover/refund net regulatory assets/liabilities related to deferred income taxes over the lives of the assets, ranging from 5 to 69 years, that give rise to the related accumulated deferred income tax balances. Regulatory assets and liabilities include excess deferred income taxes resulting from statutory income tax rate changes and certain income tax benefits and expenses associated with flow-through items, which we discuss in Note 8. ▪Regulatory assets/liabilities related to pension and other postretirement benefit plan obligations are offset by corresponding liabilities/assets. The assets are recovered in rates as the plans are funded. F-61 ▪The regulatory asset related to employee benefit costs represents our liability associated with long-term disability insurance that will be recovered from customers in future rates as expenditures are made. ▪Regulatory liabilities from removal obligations represent cumulative amounts collected in rates for future asset removal costs in excess of cumulative amounts incurred (or paid). ▪Regulatory assets related to environmental costs represent the portion of our environmental liability recognized at the end of the period in excess of the amount that has been recovered through rates charged to customers. We expect this amount to be recovered in future rates as expenditures are made. ▪The regulatory asset related to Sunrise Powerlink fire mitigation is offset by a corresponding liability for the funding of a trust to cover the mitigation costs. SDG&E expects to recover the regulatory asset in rates as the trust is funded over a remaining 48-year period. Regulatory Assets Earning a Return ▪Over- and undercollected regulatory balancing accounts reflect the difference between customer billings and recorded or CPUC-authorized amounts. Depreciation, taxes and return on rate base may also be included in certain accounts. Amounts in the balancing accounts are recoverable (receivable) or refundable (payable) in future rates, subject to CPUC approval. The adopted revenue requirements in the 2019 GRC FD associated with the period from January 1, 2019 through December 31, 2019 were recovered in rates over a 24-month period that began in January 2020. |
AUTHORIZED REVENUE REQUIREMENT INCREASES FOR 2020 AND 2021 | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
2020 increase from 2019 | 2021 increase from 2020 | ||||||||||||||||||||||
Revenue increase | Percent increase | Revenue increase | Percent increase | ||||||||||||||||||||
SDG&E: | |||||||||||||||||||||||
O&M | $ | 20 | 2.64 | % | $ | 19 | 2.47 | % | |||||||||||||||
Capital-related costs | 114 | 9.74 | 83 | 6.47 | |||||||||||||||||||
Total increase | $ | 134 | 6.74 | $ | 102 | 4.83 | |||||||||||||||||
SoCalGas: | |||||||||||||||||||||||
O&M | $ | 36 | 2.64 | % | $ | 34 | 2.40 | % | |||||||||||||||
Capital-related costs | 184 | 14.36 | 116 | 7.93 | |||||||||||||||||||
Total increase | $ | 220 | 7.92 | $ | 150 | 5.00 |
AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE – CPUC | ||||||||||||
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 | % | 4.33 | % | 1.97 | % |
2.75 | 6.22 | 0.17 | Preferred Stock | 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 | % | 7.34 | % |
CHANGES TO THE EMBEDDED COST OF DEBT | |||||||||||||
SDG&E | SoCalGas | ||||||||||||
Cost of debt | Return on rate base | Cost of debt | Return on rate base | ||||||||||
Previously | 5.00 | % | 7.79 | % | 5.77 | % | 8.02 | % | |||||
Authorized, effective January 1, 2018 | 4.59 | % | 7.55 | % | 4.33 | % | 7.34 | % | |||||
Differences | (41 | ) | bps | (24 | ) | bps | (144 | ) | bps | (68 | ) | bps |
CPUC AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE, SUBJECT TO THE CCM | ||||||||||||||||||||
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 | % |
SDG&E COST OF CAPITAL AND RATE STRUCTURE – FERC | |||||||||
Weighting | Return on rate base | Weighted return on rate base | |||||||
Long-Term Debt | 43.44 | % | 4.21 | % | 1.83 | % | |||
Common Equity | 56.56 | 10.05 | 5.68 | ||||||
100.00 | % | 7.51 | % |
PURCHASE PRICE ALLOCATION | ||||
(Dollars in millions) | ||||
At March 9, 2018(1) | ||||
Assets acquired: | ||||
Accounts receivable – other, net | $ | 1 | ||
Due from unconsolidated affiliates | 46 | |||
Investment in Oncor Holdings | 9,227 | |||
Deferred income tax assets | 287 | |||
Other noncurrent assets | 109 | |||
Total assets acquired | 9,670 | |||
Liabilities assumed: | ||||
Other current liabilities | 23 | |||
Pension and other postretirement benefit plan obligations | 21 | |||
Deferred credits and other | 58 | |||
Total liabilities assumed | 102 | |||
Net assets acquired | $ | 9,568 | ||
Total purchase price paid | $ | 9,568 |
PRELIMINARY PURCHASE PRICE ALLOCATION | ||||
(Dollars in millions) | ||||
At December 18, 2018 | ||||
Assets acquired: | ||||
Cash and cash equivalents | $ | 18 | ||
Other assets | 5 | |||
Other intangible assets | 46 | |||
Property, plant and equipment | 162 | |||
Total assets acquired | 231 | |||
Liabilities assumed: | ||||
Other current liabilities | 1 | |||
Deferred income taxes | 42 | |||
Total liabilities assumed | 43 | |||
Total identifiable net assets acquired | 188 | |||
Goodwill | 38 | |||
Total purchase price paid | $ | 226 |
UNAUDITED PRO FORMA INFORMATION – SEMPRA ENERGY CONSOLIDATED | ||||||||||||
(Dollars in millions) | ||||||||||||
Years ended December 31, | ||||||||||||
2018 | 2017 | |||||||||||
Total revenues | $ | 11,703 | $ | 11,224 | ||||||||
Net income | 1,130 | 356 | ||||||||||
Earnings attributable to common shares | 928 | 261 |
PURCHASE PRICE ALLOCATIONS | |||||||||
(Dollars in millions) | |||||||||
IEnova Pipelines | Ventika | ||||||||
At September 26, 2016(1) | At December 14, 2016(2) | ||||||||
Fair value of business combination: | |||||||||
Cash consideration (fair value of total consideration) | $ | 1,144 | $ | 310 | |||||
Fair value of equity interest in IEnova Pipelines immediately prior to acquisition | 1,144 | — | |||||||
Total fair value of business combination | $ | 2,288 | $ | 310 | |||||
Assets acquired: | |||||||||
Cash and cash equivalents | $ | 66 | $ | — | |||||
Restricted cash | — | 68 | |||||||
Accounts receivable | 39 | 14 | |||||||
Other current assets | 6 | 1 | |||||||
Other intangible assets | — | 154 | |||||||
Deferred income taxes | — | 36 | |||||||
Regulatory assets | 33 | — | |||||||
Property, plant and equipment | 1,248 | 673 | |||||||
Other noncurrent assets | 1 | 3 | |||||||
Total assets acquired | 1,393 | 949 | |||||||
Liabilities assumed: | |||||||||
Short-term debt | — | 125 | |||||||
Accounts payable | 11 | 1 | |||||||
Due to unconsolidated affiliates | 3 | — | |||||||
Current portion of long-term debt | 49 | 7 | |||||||
Fixed-price contracts and other derivatives, current | 6 | 4 | |||||||
Other current liabilities | 20 | 8 | |||||||
Long-term debt | 315 | 478 | |||||||
Asset retirement obligations | 5 | 2 | |||||||
Deferred income taxes | 127 | 120 | |||||||
Fixed-price contracts and other derivatives, noncurrent | 19 | 10 | |||||||
Other noncurrent liabilities | 11 | — | |||||||
Total liabilities assumed | 566 | 755 | |||||||
Total identifiable net assets acquired | 827 | 194 | |||||||
Goodwill | 1,461 | 116 | |||||||
Total fair value of business combination | $ | 2,288 | $ | 310 |
DISCONTINUED OPERATIONS | |||||||||||
(Dollars in millions) | |||||||||||
Years ended December 31, | |||||||||||
2020(1) | 2019 | ||||||||||
Revenues | $ | 570 | $ | 1,614 | |||||||
Cost of sales | (364) | (1,012) | |||||||||
Gain on sale of discontinued operations | 2,899 | — | |||||||||
Operating expenses | (66) | (159) | |||||||||
Interest and other | (3) | (11) | |||||||||
Income before income taxes and equity earnings | 3,036 | 432 | |||||||||
Income tax expense | (1,186) | (72) | |||||||||
Equity earnings | — | 3 | |||||||||
Income from discontinued operations, net of income tax | 1,850 | 363 | |||||||||
Earnings attributable to noncontrolling interests | (10) | (35) | |||||||||
Earnings from discontinued operations attributable to common shares | $ | 1,840 | $ | 328 |
ASSETS HELD FOR SALE AT DECEMBER 31, 2018 | |||||||
(Dollars in millions) | |||||||
Sempra Renewables | Sempra LNG & Midstream | ||||||
Cash and cash equivalents | $ | 7 | $ | — | |||
Accounts receivable – trade, net | 2 | 5 | |||||
Accounts receivable – other, net | 1 | — | |||||
Other current assets | 1 | 6 | |||||
Property, plant and equipment, net | 366 | 324 | |||||
Other noncurrent assets | — | 1 | |||||
Total assets held for sale | $ | 377 | $ | 336 | |||
Accounts payable – trade | $ | 2 | $ | 2 | |||
Other current liabilities | 4 | 3 | |||||
Asset retirement obligations | 6 | 8 | |||||
Total liabilities held for sale | $ | 12 | $ | 13 |
ASSETS HELD FOR SALE IN DISCONTINUED OPERATIONS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 74 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash(1)
As a result of the sales of our South American businesses, in 2020, we Table of NOTE 6. INVESTMENTS IN UNCONSOLIDATED ENTITIES We generally account for investments under the equity method when we have significant influence over, but do not have control of, these entities. Our equity method investments include various domestic and foreign entities. Our domestic equity method investees are typically partnerships that are pass-through entities for income tax purposes and therefore they do not record income tax. We provide the carrying values of our investments and earnings (losses) on these investments in the following tables.
(1) The carrying value of our equity method investment is $2,844, $2,833 and $2,823 higher than the underlying equity in the net assets of the investee at December 31, 2021, 2020 and 2019, respectively, due to $2,868 of equity method goodwill and $69 in basis differences in AOCI, offset by $93, $104 and $114 at December 31, 2021, 2020 and 2019, respectively, due to a tax sharing liability to TTI under a tax sharing agreement. (2) The carrying value of our equity method investment is $42 higher than the underlying equity in the net assets of the investee due to equity method goodwill. (3) The carrying value of our equity method investment is $276, $259 and $263 higher than the underlying equity in the net assets of the investee at December 31, 2021, 2020 and 2019, respectively, primarily due to guarantees, which we discuss below, interest capitalized on the investment prior to the JV commencing its planned principal operations in August 2019 and amortization of guarantee fees and capitalized interest thereafter. (4) In March 2021, Sempra Infrastructure completed the acquisition of the remaining 50% interest in ESJ and ESJ became a wholly owned, consolidated subsidiary. After the acquisition, ESJ is no longer accounted for as an equity method investment. The carrying value of our equity method investment is $12 higher than the underlying equity in the net assets of the investee at December 31, 2020 and 2019 due to the remeasurement of our retained investment to fair value in 2014. (5)The carrying value of our equity method investment is $5 higher than the underlying equity in the net assets of the investee due to guarantees. (6) The carrying value of our equity method investment is $130 higher than the underlying equity in the net assets of the investee due to equity method goodwill. F-68
(1) We provide our ETR calculation in Note 8. (2) Includes $3 of basis differences in equity earnings related to AOCI in 2021. We disclose distributions received from our investments, by segment, in the table below.
At December 31, 2021, 2020 and 2019 our share of the undistributed earnings of equity method investments was $1.5 billion, $1.1 billion and $634 million, respectively, including $1.1 billion at December 31, 2021 in undistributed earnings from investments for which we have more than 50% equity interests. SEMPRA TEXAS UTILITIES Oncor Holdings We account for our 100% ownership interest in Oncor Holdings, which owns an 80.25% interest in Oncor, as an equity method investment. Sempra does not control Oncor Holdings or Oncor, and the ring-fencing measures, governance mechanisms and commitments in effect limit our ability to direct the management, policies and operations of Oncor Holdings and Oncor, including the deployment or disposition of their assets, declarations of dividends, strategic planning and other important corporate issues and actions. We also have limited representation on the Oncor Holdings and Oncor boards of directors. Oncor is a domestic partnership for U.S. federal income tax purposes and is not included in the consolidated income tax return of F-69 payments determined on that basis. While partnerships are not subject to income taxes, in consideration of the tax sharing agreement and Oncor being subject to the provisions of U.S. GAAP governing rate-regulated operations, Oncor recognizes amounts determined under cost-based regulatory rate-setting processes (with such costs including income taxes), as if it were taxed as a corporation. As a result, since Oncor Holdings consolidates Oncor, we recognize equity earnings from our investment in Oncor Holdings net of its recorded income tax.
We provide summarized income statement and balance sheet information for Oncor Holdings in the following table.
In Sharyland Holdings As we discuss in Note 5, in May 2019, we acquired an indirect, 50% interest in In SEMPRA Cameron LNG JV Cameron LNG JV was formed in October 2014 Cameron LNG its tolling agreements in August 2019, February 2020 and August 2020, respectively. Prior to commencing full commercial operations, Sempra F-70 Cameron LNG JV Financing General. In August 2014, Cameron LNG JV entered into finance documents (collectively, Loan Facility Agreements) for senior secured financing in an initial aggregate principal amount of up to $7.4 billion under three debt facilities provided by the Japan Bank for International Cooperation (JBIC) and 29 international commercial banks, some of which will benefit from insurance coverage provided by Nippon Export and Investment Insurance (NEXI). The Interest. The weighted-average all-in cost of the loans that remain outstanding under The weighted-average all-in cost of the loans outstanding under the original Loan Facility Agreements and the newly issued senior secured notes is 3.69%. Guarantees. In March 2021, Cameron LNG JV reached financial completion of the three-train liquefaction project, and Sempra’s guarantees related to agreements entered into in August 2014 In August 2014, Sempra Events of Default.Cameron LNG JV’s Loan Facility Agreements and related finance documents contain events of default customary for such financings, including events of default for: failure to pay principal and interest Security. To support Cameron LNG JV’s obligations under Sempra Promissory Note for SDSRA Distribution Cameron LNG JV’s F-71 Sempra Support Agreement for CFIN In July 2020, CFIN entered into a financing arrangement with Cameron LNG JV’s four project owners and received aggregate proceeds of $1.5 billion from two project owners and from external lenders on behalf of the other two project owners (collectively, the affiliate loans), based on their proportionate ownership interest in Cameron LNG JV. CFIN used the proceeds from the affiliate loans to provide a loan to Cameron LNG JV. The affiliate loans mature in 2039. Principal and interest will be paid from Cameron LNG JV’s project cash flows from its three-train natural gas liquefaction facility. Cameron LNG JV Sempra Infrastructure’s $753 million proportionate share of the affiliate loans, based on its 50.2% ownership interest in Cameron LNG JV, was funded by external lenders comprised of a syndicate of eight banks (the bank debt) to whom Sempra has provided a guarantee pursuant to a Support Agreement, as amended on June 29, 2021, under which: ▪Sempra has severally guaranteed repayment of the ▪the external lenders may exercise an option to put the bank debt to Sempra Infrastructure upon the occurrence of certain events, including a failure by ▪the external lenders will put some or all of the ▪Sempra Infrastructure also has a right to call the bank debt back from, or to refinance the bank debt with, the external lenders at any time; and ▪the Support Agreement will terminate upon full repayment of the bank debt, including repayment following an event in which the bank debt is put to Sempra Infrastructure. In exchange for this guarantee, the external lenders will pay a guarantee fee that is based on the credit rating of ESJ JV As we discuss in Note 5, in March 2021, Sempra Infrastructure completed the acquisition of the remaining 50% equity interest in ESJ and ESJ became a wholly owned, consolidated subsidiary. Prior to the acquisition date, Sempra Infrastructure owned 50% of ESJ and accounted for its interest as an equity method investment. IMG JV Sempra Infrastructure has a 40% interest in IMG JV, a JV with a subsidiary of TC Energy Corporation, and accounts for its interest as an equity method investment. IMG JV owns and operates the Sur de Texas-Tuxpan natural gas marine pipeline, which is fully contracted under a 35-year natural gas transportation service contract with the CFE and commenced commercial operations in September 2019. SEMPRA RENEWABLES Sempra Renewables completed the sale of its remaining wind assets and investments in April 2019. We discuss this divestiture further in Note 5. RBS SEMPRA COMMODITIES RBS Sempra Commodities is a United Kingdom limited liability partnership formed by Sempra F-72 partnership and the distribution of the partnership’s remaining assets, if any. We account for our investment in RBS Sempra Commodities under the equity method. In SUMMARIZED FINANCIAL INFORMATION We present summarized financial information below, aggregated for all other equity method investments (excluding Oncor
(2) On April 22, 2019, Sempra Renewables sold its remaining wind assets and investments. As of April 22, 2019, these wind assets and investments are no longer equity method investments. (3) Except for our investments in Mexico, there was no income tax recorded by the entities, as they are primarily domestic partnerships. NOTE 7. DEBT AND CREDIT FACILITIES Committed Lines of Credit AtDecember 31, F-73
The principal terms of
F-74
(1) Borrowings bear interest at a per annum rate equal to 3-month LIBOR plus 10 bps. (2) Outstanding amounts were borrowed in Mexican pesos and bear interest at a variable rate based on the 28-day Interbank Equilibrium Interest Rate plus 105 bps. Borrowings made in U.S. dollars bear interest at a variable rate based on the 1-month or 3-month LIBOR plus 105 bps. (3) Borrowings bear interest at a per annum rate equal to between 1-month and 6-month LIBOR plus 52 bps. (4) Borrowings made in Mexican pesos bear interest at a variable rate based on the 28-day Interbank Equilibrium Interest Rate plus an applicable margin. Borrowings made in U.S. dollars bear interest at a variable rate based on 1-month LIBOR plus an applicable margin. The applicable margin is determined on the date of borrowing. Uncommitted Letters of Credit Outside of
Term Loan In June 2021, SDG&E entered into a $375 million, 364-day term loan with a maturity date of June 27, 2022. At December 31, 2021, $375 million, net of negligible issuance costs, was outstanding under the term loan. The borrowing bears interest at benchmark rates plus 62.5 bps. The term loan provides SDG&E with additional liquidity outside of its line of credit. Weighted-Average Interest Rates The weighted-average interest rates on the total short-term debt at
F-75 LONG-TERM DEBT The following tables show the detail and maturities of long-term debt outstanding:
F-76
(1) Callable long-term debt not subject to make-whole provisions. (2) Debt is not callable.
(1) Excludes finance lease obligations, discounts, and debt issuance costs. F-77
Various long-term obligations totaling At the option of Sempra,
SDG&E In Other Long-Term Debt Sempra In December 2021, Sempra redeemed, at respective make-whole redemption prices, an aggregate principal amount of $2.35 billion of senior unsecured notes prior to scheduled maturities in 2022 through 2025. Upon the early redemptions, we recognized $126 million ($92 million after tax) in charges associated with the make-whole premiums and a write-off of unamortized discount and debt issuance costs. In November 2021, we issued $1.0 billion of 4.125% fixed-to-fixed reset rate junior subordinated notes maturing on April 1, 2052. Interest on the notes accrues from and including November 19, 2021 and is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2022. The notes will bear interest (i) from and including November 19, 2021 to, but excluding, April 1, 2027 at the rate of 4.125% per annum and (ii) from and including April 1, 2027, during each subsequent five-year period beginning on April 1 of every fifth year, at a rate per annum equal to the Five-year U.S. Treasury Rate (as defined in the notes) as of the day falling two business days before the first day of such five-year period plus a spread of 2.868%, to be reset on April 1 of every fifth year beginning in 2027. We received proceeds of $988 million (net of underwriting discounts and debt issuance costs of $12 million). We used the proceeds from the offering to repay
▪in whole or from time to time in part, on any day during any period from and including the January 1 immediately preceding an interest rate reset date through and including such reset date at a redemption price in cash equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest on the notes to be redeemed to, but excluding, the redemption date; ▪in whole but not in part, at any time ▪in whole but not in part, at any time following the occurrence and during the continuance of a rating agency event (as defined in the notes) at a redemption price in cash equal to 102% of the principal amount of the notes, plus accrued and unpaid interest on the notes to, but excluding, the redemption date. F-78 The notes are unsecured obligations and rank junior and subordinate in right of payment to our existing and future senior indebtedness. The notes rank equally in right of payment with our existing 5.75% junior subordinated notes due 2079 and with any future unsecured indebtedness that we may incur if the terms of such indebtedness provide that it ranks equally with the SDG&E On February 18, 2022, SDG&E entered into a $400 million, two-year term loan with a maturity date of February 18, 2024. SDG&E may request up to three borrowings for an aggregate amount of $400 million through May 18, 2022. On February 18, 2022, SDG&E borrowed $200 million. The borrowing bears interest at benchmark rates plus 62.5 bps. The margin is based on SDG&E’s long-term senior unsecured credit rating. Sempra Infrastructure SI Partners. On January 11, 2022, SI Partners completed a private offering of $400 million in aggregate principal of 3.25% senior notes due January 15, 2032 to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933, as amended (the Securities Act), and non-U.S. persons outside the U.S. under Regulation S under the Securities Act. The notes were issued at 98.903% of the principal amount and require semi-annual interest payments in January and July, commencing July 15, 2022. The notes are senior unsecured obligations that rank equally with all of SI Partners’ existing and future outstanding unsecured senior indebtedness. Sempra Infrastructure received proceeds of $390 million (net of debt discount, underwriting discounts and debt issuance costs of $10 million). Sempra Infrastructure intends to use the net proceeds for general corporate purposes, which may include the repayment of certain indebtedness of its subsidiaries. At ECA LNG Phase 1. In December 2020, ECA LNG Phase 1 entered into a five-year loan agreement with a syndicate of nine banks for an aggregate principal amount of up to $1.6 billion. Proceeds from the loan are being used to finance the cost of development and construction of a one-train natural gas liquefaction export facility with a name-plate capacity of 3.25 Mtpa and initial offtake capacity of approximately 2.5 Mtpa. The loan matures in December 2025 and bears interest at a weighted-average blended rate of 2.70% plus a benchmark interest rate per annum equal to (a) the LIBOR for such interest period divided by (b) one minus the Eurodollar Reserve Percentage; provided that in no event shall the benchmark at any time ESJ. As we discuss in Note 5, through its acquisition of the remaining 50% of ESJ, Sempra Infrastructure assumed a $177 million (net of $6 million in unamortized debt issuance costs) variable rate loan payable to a syndicate of 5 lenders that matures in June 2033. To moderate exposure to interest rate and F-79 Ventika. On October 13, 2021, Sempra Infrastructure used proceeds from borrowings against IEnova’s committed and NOTE 8. INCOME TAXES We provide our calculations of ETRs in the following table.
For SDG&E and SoCalGas, the CPUC requires flow-through rate-making treatment for the current income tax benefit or expense arising from certain property-related and other temporary differences between the treatment for financial reporting and income tax, which will reverse over time. Under the regulatory accounting treatment required for these flow-through temporary differences, deferred income tax assets and liabilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which impacts the ETR. As a result, changes in the relative size of these items compared to pretax income, from period to period, can cause variations in the ETR. The following items are subject to flow-through treatment: ▪repairs expenditures related to a certain portion of utility plant fixed assets ▪the equity portion of AFUDC, which is non-taxable ▪a portion of the cost of removal of utility plant assets ▪utility self-developed software expenditures ▪depreciation on a certain portion of utility plant assets ▪state income taxes The AFUDC related to equity recorded for regulated construction projects at Sempra We record income tax (expense) benefit from the transactional effects of foreign currency and inflation. F-80 We present in the table below reconciliations of net U.S. statutory federal income tax rates to our ETRs.
(1)Related to operations in Mexico. (2)Due to fluctuation of the Mexican peso against the U.S. dollar. We record income tax expense (benefit) from the transactional effects of foreign currency and inflation because of appreciation (depreciation) of the Mexican peso. We also recognize gains (losses) in Other Income (Expense), Net, on the Consolidated Statements of Operations from foreign currency derivatives that are partially hedging Sempra Infrastructure’s exposure to movements in the Mexican peso from its controlling interest in IEnova. In January 2019, our board of directors approved a plan to sell our South American businesses and we completed the sales in the second quarter of 2020, as we discuss in Note 5. Prior to this decision, our repatriation estimate excluded post-2017 earnings and other basis differences related to our South American businesses. Because of our decision to sell our South American businesses, F-81 we no longer assert indefinite reinvestment of these basis differences. Accordingly, we recorded the following income tax impacts from changes in outside basis differences in our discontinued operations in South America: ▪$89 million income tax benefit in 2019 primarily related to outside basis differences existing as of the January 25, 2019 approval of our plan to sell our South American businesses; and ▪$7 million income tax benefit in 2020 compared to $51 million income tax expense in 2019 related to changes in outside basis differences from earnings and foreign currency effects since January 25, 2019. We expect to repatriate approximately $1.8 billion of foreign undistributed earnings in the foreseeable future, and have accrued $59 million of U.S. state deferred income tax liability at December 31, 2021 for repatriations that we expect will begin in 2022 as cash is generated. We repatriated approximately $4.7 billion and $254 million to the U.S. in 2020 and 2019, respectively. We have not recorded deferred income taxes with respect to remaining basis differences of approximately $600 million between financial statement and income tax investment amounts in our non-U.S. subsidiaries because we consider them to be indefinitely reinvested as of December 31, 2021. However, the sale of NCI in SI Partners to ADIA, which we discuss in Note 1, would affect our indefinite reinvestment assertion. The remaining basis differences are calculated pursuant to U.S. federal tax law, which may differ from tax law in California and foreign jurisdictions. It is currently not practicable to determine the hypothetical amount of tax that might be payable if the underlying basis differences were realized. The remeasurement of deferred income tax balances at SDG&E and SoCalGas in December 2017, as a result of the TCJA, resulted in excess deferred income taxes that previously had been collected from ratepayers at the higher rate. In a January 2019 decision, the CPUC directed certain excess deferred income tax balances generated by activities outside of ratemaking be allocated to shareholders rather than ratepayers. As a result, in 2019, SDG&E and SoCalGas recorded income tax benefits of $31 million and $38 million, respectively, from the release of a portion of the regulatory liability established in connection with 2017 tax reform for excess deferred income tax balances. The table below presents the geographic components of pretax income.
U.S. pretax income was lower in F-82 The components of income tax expense are as follows.
F-83
The tables below present the components of deferred income taxes:
(2) At December 31, 2021, 2020, and 2019, includes $151, $136, and $155, respectively, recorded as a noncurrent asset and $3,477, $2,871, and $2,577, respectively, recorded as a noncurrent liability on the Consolidated Balance Sheets.
F-84
The following table summarizes our unused NOLs and tax credit carryforwards.
A valuation allowance is recorded when, based on more-likely-than-not criteria, negative evidence outweighs positive evidence with regard to our ability to realize a deferred income tax asset in the future. Of the valuation allowances recorded to date, the negative evidence outweighs the positive evidence primarily due to cumulative pretax losses in various U.S. state and non-U.S. jurisdictions resulting in
F-85 Table of Following is a reconciliation of the changes in unrecognized income tax benefits and the potential effect on our ETR for the years ended December 31:
It is reasonably possible that within the next 12 months, unrecognized income tax benefits could decrease due to the following:
Amounts accrued for interest and penalties associated with unrecognized income tax benefits are included in Income Tax Expense on the Consolidated Statements of Operations. Sempra F-86 each accrued negligible amounts for interest expense and penalties at December 31, INCOME TAX AUDITS Sempra SDG&E and SoCalGas are subject to U.S. federal income tax and state income tax. They remain subject to examination for U.S. federal tax years after 2017 and state tax years after 2012. In addition, NOTE 9. EMPLOYEE BENEFIT PLANS For our employee benefit plans, we: ▪recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status in the balance sheet; ▪measure a plan’s assets and its obligations that determine its funded status as of the end of the fiscal year; and ▪recognize changes in the funded status of pension and PBOP plans in the year in which the changes occur. Generally, those changes are reported in OCI and as a separate component of shareholders’ equity. The detailed information presented below covers the employee benefit plans of primarily Sempra Sempra IEnova has an unfunded noncontributory defined benefit plan covering all Sempra Pension and other postretirement benefits costs and obligations are dependent on assumptions used in calculating such amounts. We review these assumptions on an annual basis and update them as appropriate. We consider current market conditions, including interest rates, in making these assumptions. We use a December 31 measurement date for all of our plans. RABBI TRUST In support of its Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans, Sempra F-87 PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Benefit Plan Amendments Affecting In In Benefit Obligations and Assets The following three tables provide a reconciliation of the changes in the plans’ projected benefit obligations and the fair value of assets during
F-88
F-89 Actuarial losses (gains) ▪Actuarial gains in pension plans at Sempra ▪Actuarial gains in PBOP plans at Sempra Net Assets and Liabilities The assets and liabilities of the pension and PBOP plans are affected by changing market conditions as well as when actual plan experience is different than assumed. Such events result in investment gains and losses, which we defer and recognize in pension and other postretirement benefit costs over a period of years. Our funded pension and PBOP plans use the asset smoothing method, except for those at SDG&E. This method develops an asset value that recognizes realized and unrealized investment gains and losses over a three-year period. This adjusted asset value, known as the market-related value of assets, is used in conjunction with an expected long-term rate of return to determine the expected return-on-assets component of net periodic benefit cost. SDG&E does not use the asset smoothing method, but rather recognizes realized and unrealized investment gains and losses during the current year. The ▪a minimum required funding amount as ▪the amount required to maintain an 85% Adjusted Funding Target Attainment Percentage as defined by the Pension Protection Act of 2006, as amended; or ▪beginning January 1, 2019 and for the duration of the 2019 GRC cycle, a fixed amount equal to the estimated annual service cost as defined by U.S. GAAP plus one year of a 14-year amortization of the unfunded projected benefit obligation of the pension plan as of January 1, 2019, and limited to an annual amount that keeps the fair value of the pension plan assets from exceeding 110% of the pension benefit obligation of the plan. The annual contributions to PBOP plans are equal to the lesser of the maximum tax deductible amount or the net periodic cost calculated in accordance with U.S. GAAP for pension and PBOP plans. Any differences between booked net periodic benefit cost and amounts contributed to the pension and other postretirement plans for F-90 The net (liability) asset is included in the following categories on the Consolidated Balance Sheets at December 31:
Amounts recorded in AOCI at December 31, net of income tax effects and amounts recorded as regulatory assets, are as follows:
F-91 Sempra,
We also have unfunded pension plans at Sempra,
Sempra,
We also have unfunded other postretirement benefit plans at
Net Periodic Benefit Cost The following tables provide the components of net periodic benefit cost and pretax amounts recognized in OCI for the years ended December 31: F-92
F-93
Assumptions for Pension and Other Postretirement Benefit Plans Benefit Obligation and Net Periodic Benefit Cost Except for the IEnova We develop the discount rate assumptions for the plans at IEnova by constructing a synthetic government zero coupon bond yield curve from the available market data, based on duration matching, and we add a risk spread to allow for the yields of high-quality corporate bonds. Long-term return on assets is based on the weighted-average of the plans’ investment allocation as of the measurement date and the expected returns for those asset types. Interest crediting rate is based on an average 30-year Treasury bond from the month of November of the preceding year. We amortize prior service cost using straight line amortization over average future service (or average expected lifetime for plans where participants are substantially inactive employees), which is an alternative method allowed under U.S. GAAP. F-94 The significant assumptions affecting benefit obligation and net periodic benefit cost are as follows:
(2)Interest crediting rate for other postretirement benefits applies only to interest bearing health retirement accounts at SDG&E and SoCalGas.
(2)Interest crediting rate for other postretirement benefits applies only to interest bearing health retirement accounts at SDG&E and SoCalGas. Health Care Cost Trend Rates Assumed health care cost trend rates have a significant effect on the amounts that
F-95 Plan Assets Investment Allocation Strategy for The current asset allocation objective for the pension master trust is to protect the funded status of the plans while generating sufficient returns to cover future benefit payments and accruals. We assess the portfolio performance by comparing actual returns with relevant benchmarks. Currently, the pension plans’ target asset allocations are: ▪31% domestic equity ▪21% long credit ▪10% diversified real assets ▪10% return-seeking credit ▪5% ultra-long duration government securities ▪2% other diversifying assets The asset allocation of the plans is reviewed by our Plan Funding Committee and our Pension and Benefits Investment Committee (the Committees) on a regular basis. When evaluating strategic asset allocations, the Committees consider many variables, including: ▪long-term cost ▪variability and level of contributions ▪funded status ▪a range of expected outcomes over varying confidence levels This allocation results in a 74% target allocation to return-seeking assets and a 26% target allocation to risk-mitigating assets. We maintain asset allocations at strategic levels with reasonable bands of variance. In accordance with the Sempra Rate of Return Assumption The expected return on assets in our pension and PBOP plans is based on the weighted-average of the plans’ investment allocations to specific asset classes as of the measurement date. We arrive at a Concentration of Risk Plan assets are diversified across global equity and bond markets, and concentration of risk in any one economic, industry, maturity or geographic sector is limited. SDG&E’s and SoCalGas’ PBOP plans are funded by cash contributions from SDG&E and SoCalGas and their current retirees. The assets of these plans are placed into the pension master trust and other Voluntary Employee Beneficiary Association trusts. Certain assets of SDG&E’s and SoCalGas’ PBOP plans F-96 Fair Value of Pension and Other Postretirement Benefit Plan Assets We classify the investments in The following are descriptions of the valuation methods and assumptions we use to estimate the fair values of investments held by pension and other postretirement benefit plan trusts. Equity Securities – Equity securities are valued using quoted prices listed on nationally recognized securities exchanges. Registered Investment Companies – Investments in mutual funds sponsored by a registered investment company are valued based on exchange listed prices. Where the value is a quoted price in an active market, the investment is classified within Level 1 of the fair value hierarchy. Other investments are valued under a discounted cash flow approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. Fixed Income Securities – Certain fixed income securities are valued at the closing price reported in the active market in which the security is traded. Other fixed income securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar securities, the security is valued under a discounted cash flow approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. Certain high yield fixed-income securities are valued by applying a price adjustment to the bid side to calculate a mean and ask value. Adjustments can vary based on maturity, credit standing, and reported trade frequencies. The bid to ask spread is determined by the investment manager based on the review of the available market information. Common/Collective Trusts – Investments in common/collective trust funds are valued based on the NAV of units owned, which is based on the current fair value of the funds’ underlying assets. Derivative Financial Instruments – Futures contracts that are publicly traded in active markets are valued at closing prices as of the last business day of the year. Forward currency contracts are valued at the prevailing forward exchange rate of the underlying currencies, and unrealized gain (loss) is recorded daily. Fixed income futures and options are marked to market daily. Equity index futures contracts are valued at the last sales price quoted on the exchange on which they primarily trade. While management believes the valuation methods described above are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. We provide more discussion of fair value measurements in Notes 1 and 12. The following tables set forth by level within the fair value hierarchy a summary of the investments in our pension and other postretirement benefit plan trusts measured at fair value on a recurring basis. F-97 SDG&E and SoCalGas each hold a proportionate share of investment assets in the pension master trust at
F-98
The fair values by asset category of the PBOP plan assets held in the pension master trust and in the additional trusts for SoCalGas’ PBOP plans and SDG&E’s PBOP plan trusts are as follows:
F-100
F-101
F-102 Future Payments We expect to contribute the following amounts to our pension and PBOP plans in
The following table shows the total benefits we expect to pay for the next 10 years to current employees and retirees from the plans or from company assets.
SAVINGS PLANS Sempra, Employer contributions to the savings plans were as follows:
The market value of Sempra NOTE 10. SHARE-BASED COMPENSATION SEMPRA Sempra ▪nonqualified stock options ▪incentive stock options ▪restricted stock awards F-103 ▪restricted stock units ▪stock appreciation rights ▪performance awards ▪stock payments ▪dividend equivalents Eligible employees, including those from In the three years ended December 31,
If
For awards that would otherwise be forfeited upon termination of employment, the Compensation and Talent Development Committee of Sempra’s board of directors may waive the forfeiture requirement and, with respect to options and service-based RSUs, may accelerate vesting. Awards are also subject to accelerated vesting upon a change in control under the applicable SHARE-BASED AWARDS AND COMPENSATION EXPENSE At December 31, We measure and recognize compensation expense for all share-based payment awards made to our employees and directors based on estimated fair values on the date of grant. We recognize compensation costs net of an estimated forfeiture rate (based on historical experience) and recognize the compensation costs for F-104 the requisite service period of the award, which is generally three or four years. However, for awards granted to retirement-eligible participants, the expense is recognized over the initial year in which the award was granted as the award requires service through the end of the year in which it was granted. For awards granted to participants who become eligible for retirement during the requisite service period, the expense is recognized over the period between the date of grant and the later of the end of the year in which the award was granted or the date the participant first becomes eligible for retirement. Substantially all awards outstanding are classified as equity instruments; therefore, we recognize additional paid in capital as we recognize the compensation expense associated with the awards. We recognize in earnings the tax benefits (or deficiencies) resulting from tax deductions that are in excess of (or less than) tax benefits related to compensation cost recognized for share-based payments. Sempra
SEMPRA We use a Black-Scholes option-pricing model to estimate the fair value of each F-105
The following table shows a summary of
The aggregate intrinsic value at December 31, ▪$1.4 million in 2021 ▪$4 million in 2019 We We received cash of SEMPRA We use a Monte-Carlo simulation model to estimate the fair value of our
F-106
(1) Each RSU represents the
In NOTE 11. DERIVATIVE FINANCIAL INSTRUMENTS We use derivative instruments primarily to manage exposures arising in the normal course of business. Our principal exposures are commodity market risk, benchmark interest rate risk and foreign exchange rate exposures. Our use of derivatives for these risks is integrated into the economic management of our anticipated revenues, anticipated expenses, assets and liabilities. Derivatives may be effective in mitigating these risks (1) that could lead to declines in anticipated revenues or increases in anticipated expenses, or (2) that could cause our asset values In certain cases, we apply the normal purchase or sale exception to derivative instruments and have other commodity contracts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. In all other cases, we record derivatives at fair value on the Consolidated Balance Sheets. We F-107 HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated cash flows associated with revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that the future cash flows of a given revenue or expense item may vary, and other criteria. ENERGY DERIVATIVES Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business, as follows:
▪SDG&E is allocated and may purchase CRRs, which serve to reduce the regional electricity price volatility risk that may result from local transmission capacity constraints. Unrealized gains and losses do not impact earnings, as they are offset by regulatory account balances. Realized gains and losses associated with CRRs, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Consolidated Statements of Operations. ▪Sempra Infrastructure may use natural gas and electricity derivatives, as appropriate, in an effort to optimize the earnings of their assets which support the following businesses: LNG, natural gas transportation and storage, and power generation. Gains and losses associated with undesignated derivatives are recognized in Energy-Related Businesses Revenues on the Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. ▪From time to time, our various businesses, including SDG&E and SoCalGas, may use other energy derivatives to hedge exposures such as GHG allowances. The following table summarizes net energy derivative volumes.
INTEREST RATE DERIVATIVES We are exposed to interest rates primarily as a result of our current and expected use of financing. The following table presents the net notional amounts of our interest rate derivatives, excluding F-108
FOREIGN CURRENCY DERIVATIVES We utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and JVs. These cash flow hedges exchange our Mexican peso-denominated principal and interest payments into the U.S. dollar and swap Mexican variable interest rates for U.S. fixed interest rates. From time to time, Sempra We are also exposed to exchange rate movements at our Mexican subsidiaries and JVs, which have U.S. dollar-denominated cash balances, receivables, payables and debt (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. They also have deferred income tax assets and liabilities denominated in the Mexican peso, which must be translated to U.S. dollars for financial reporting purposes. In addition, monetary assets and liabilities and certain nonmonetary assets and liabilities are adjusted for Mexican inflation for Mexican income tax purposes. We may utilize foreign currency derivatives as a means to manage the risk of exposure to significant fluctuations in our income tax expense and equity earnings from these impacts; however, we generally do not hedge our deferred income tax assets and liabilities or for inflation. We also utilized foreign currency derivatives in 2020 and 2019 to The following table presents the net notional amounts of our foreign currency derivatives, excluding
FINANCIAL STATEMENT PRESENTATION The Consolidated Balance Sheets reflect the offsetting of net derivative positions and cash collateral with the same counterparty when a legal right of offset exists. The following tables provide the fair values of derivative instruments on the Consolidated Balance Sheets, F-109
(1) Normal purchase contracts previously measured at fair value are excluded. F-110
F-111
(1) Normal purchase contracts previously measured at fair value are excluded. F-112 The following table
For Sempra, For all forecasted transactions, the maximum remaining term over which we are hedging exposure to the variability of cash flows at December 31, F-113 The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Consolidated Statements of Operations.
CONTINGENT FEATURES For Sempra, For Sempra, For Sempra, NOTE 12. FAIR VALUE MEASUREMENTS RECURRING FAIR VALUE MEASURES The three tables below, by level within the fair value hierarchy, set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis at December 31, on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 11 F-114 The determination of fair values, shown in the tables below, incorporates various factors, including but not limited to, the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests). Our financial assets and liabilities that were accounted for at fair value on a recurring basis in the tables below include the following (other than a
▪For commodity contracts, interest rate derivatives and foreign exchange instruments, we primarily use a market or income approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs and long-term, fixed-price electricity positions at SDG&E, as we discuss below in “Level 3 Information – SDG&E.” ▪Rabbi Trust investments include short-term investments that consist of money market and mutual funds that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1). ▪As we discuss in Note 6, in July 2020, Sempra entered into a Support Agreement for the benefit of CFIN. We measure the Support Agreement, which includes a guarantee obligation, a put option and a call option, net of related guarantee fees, at fair value on a recurring basis. We use a discounted cash flow model to value the Support Agreement, net of related guarantee fees. Because some of the inputs that are significant to the valuation are less observable, the Support Agreement is classified as Level 3, as we describe below in “Level 3 Information – Sempra Infrastructure.” F-115
(1) Excludes receivables (payables), net. F-116
(1) Excludes receivables (payables), net. F-117
Level 3 Information SDG&E The
Inputs used to determine the fair value of CRRs and fixed-price electricity positions are reviewed and compared with market conditions to determine reasonableness. SDG&E expects all costs related to these instruments to be recoverable through customer rates. As such, there is no impact to earnings from changes in the fair value of these instruments. F-121 CRRs are recorded at fair value based almost entirely on the most current auction prices published by the California ISO, an objective source. Annual auction prices are published once a year, typically in the middle of November, and are the basis for valuing CRRs settling in the following year. For the CRRs settling from January 1 to December 31, the auction price inputs, at a given location, were in the following ranges for the years indicated below:
The impact associated with discounting is negligible. Because these auction prices are a less observable input, these instruments are classified as Level 3. The fair value of these instruments is derived from auction price differences between two locations. Positive values between two locations represent expected future reductions in congestion costs, whereas negative values between two locations represent expected future charges. Valuation of our CRRs is sensitive to a change in auction price. If auction prices at one location increase (decrease) relative to another location, this could result in a higher (lower) fair value measurement. We summarize CRR volumes in Note Long-term, fixed-price electricity positions that are valued using significant unobservable data are classified as Level 3 because the contract terms relate to a delivery location or tenor for which observable market rate information is not available. The fair value of the net electricity positions classified as Level 3 is derived from a discounted cash flow model using market electricity forward price inputs. The range and weighted-average price of these inputs
A significant increase Realized gains and losses associated with CRRs and long-term, fixed-price electricity positions, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Consolidated Statements of Operations. Sempra Infrastructure The table below sets forth reconciliations of changes in the fair value of Sempra’s Support Agreement for the benefit of CFIN classified as Level 3 in the fair value hierarchy for Sempra.
(1) Net gains are included in Interest Income and net losses are included in Interest Expense on Sempra’s Consolidated Statements of Operations. (2) Balances at December 31, 2021 and 2020 include $7 and $7, respectively, in Other Current Assets, offset by a negligible amount and $4, respectively, in Deferred Credits and Other on Sempra’s Consolidated Balance Sheets. F-122 The fair value of the Support Agreement, net of related guarantee fees, is based on a discounted cash flow model using a probability of default and survival methodology. Our estimate of fair value considers inputs such as third-party default rates, credit ratings, recovery rates, and risk-adjusted discount rates, which may be readily observable, market corroborated or generally unobservable inputs. Because CFIN’s credit rating and related default and survival rates are unobservable inputs that are significant to the valuation, the Support Agreement, net of related guarantee fees, is classified as Level 3. We assigned CFIN an internally developed credit rating of A3 and relied on default rate data published by Moody’s to assign a probability of default. A hypothetical change in the credit rating up or down one notch could result in a significant change in the fair value of the Support Agreement. Fair Value of Financial Instruments The fair values of certain of our financial instruments (cash, accounts F-123
(1) Before allowances for credit losses of $8 and excluding transaction costs of $5 at December 31, (2) Before allowances for credit losses of $1 and
(3) Before reductions of unamortized discount and debt issuance costs of $260, $268 and $225 at December 31, 2021, 2020 and 2019, respectively, and excluding finance lease obligations of $1,335, $1,330 and $1,289 at December 31, 2021 and 2020 and 2019, respectively. (4) Before reductions of unamortized discount and debt issuance costs of $61, $52 and $48 at December 31, 2021, 2020 and 2019, respectively, and excluding finance lease obligations of $1,274, $1,276 and $1,270 at December 31, 2021, 2020 and 2019, respectively. (5) Before reductions of unamortized discount and debt issuance costs of $36, $40 and $34 at December 31, 2021, 2020 and 2019, respectively, and excluding finance lease obligations of $61, $54 and $19 at December 31, 2021, 2020 and 2019, respectively. We provide the fair values for the securities held in the NDT
NOTE 13. PREFERRED STOCK Sempra F-124 SEMPRA On January As of July 15, 2021, we had converted, pursuant to either early conversions at the election of the holder or the mandatory SEMPRA SERIES C PREFERRED STOCK In June 2020, we issued 900,000 shares of our 4.875% fixed-rate reset cumulative redeemable perpetual preferred stock, series Liquidation Preference Each share of series Redemption at the The shares of Dividends ▪we have earnings; ▪the payment of such dividends is then permitted under California law; ▪such dividends are authorized or declared; and ▪any agreements to which we are a party prohibit the current payment of dividends, including any agreement relating to our indebtedness. We accrue dividends on the
Voting Rights The holders of F-125 amendments to the terms of the series C preferred stock, in certain other limited circumstances entitled to elect two directors who satisfy certain requirements to fill such two newly created directorships. This voting right Ranking ▪senior to our common stock and each other class or series of our capital stock established in the future, unless the terms of such capital stock expressly provide otherwise; ▪on parity with each class or series of our capital stock established in the future, if the terms of such capital stock provide that it ranks on parity with the series C preferred stock; ▪junior to each class or series of our capital stock established in the future, if the terms of such capital stock provide that it ranks senior to the series C preferred stock; ▪junior to our existing and future indebtedness and other liabilities; and ▪structurally subordinated to all existing and future indebtedness and other liabilities of our subsidiaries and capital stock of our subsidiaries held by third parties. SOCALGAS PREFERRED STOCK SoCalGas is authorized to issue up to an aggregate of 11 million shares of preferred stock, series preferred stock and preference stock. The table below presents preferred stock outstanding at SoCalGas:
None of SoCalGas’ outstanding preferred stock is callable, and no shares are subject to mandatory redemption. All outstanding shares have one vote per share, cumulative preferences as to dividends and liquidation preferences of $25 per share plus any unpaid dividends. In addition to the outstanding preferred stock above, SoCalGas’ articles of incorporation authorize 5 million shares of series preferred stock and 5 million shares of preference stock, both without par value and with cumulative preferences as to dividends and liquidation value. The preference stock would rank junior to all series of preferred stock and series preferred stock. Other rights and privileges of any new series of such stock would be established by the SoCalGas board of directors at the time of issuance. NOTE 14. SEMPRA SEMPRA On On July 6, 2020, our board of directors authorized the repurchase of shares of our common stock at any time and from time to time in an aggregate amount not to exceed the lesser of $2 billion or amounts spent to purchase no more than 25 million shares. No shares were repurchased under this authorization in 2020. Beginning on November 17, 2021, we executed a series of open market repurchases for which we paid $300 million to repurchase shares of our common stock in the open market. The repurchases were completed on December 7, 2021 with an aggregate of 2,422,758 shares of Sempra common stock repurchased at a weighted-average purchase price of $123.83 per share, excluding commissions. On January 11, 2022, we entered into an ASR program under which we prepaid $200 million to repurchase shares of our common stock in a share forward SETTLEMENT OF FORWARD SALE AGREEMENTS In In 2019, we F-127 Table of EARNINGS PER COMMON SHARE Basic EPS is calculated by dividing earnings attributable to common shares (from both continuing and discontinued operations) by the weighted-average number of common shares outstanding for the
(2)Due to market fluctuations of both Sempra common stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 10, dilutive RSUs may vary widely from period-to-period.
The potentially dilutive impact from stock options F-128 The potentially dilutive impact from the forward sale of our common stock pursuant to the forward sale agreements that we discuss above is reflected in our diluted EPS calculation using the treasury stock method. We The potentially dilutive impact from our mandatory convertible preferred stock We are authorized to issue 750 million shares of no par value common stock. The following table provides common stock activity for the last three years.
(2) Participants in the Direct Stock Purchase Plan may reinvest dividends to purchase newly issued shares. (3) In 2021 and 2020, includes shares repurchased under the repurchase programs that we discuss above. Generally, we purchase shares of our common stock or units from LTIP participants who elect to sell to us a sufficient number of vested RSUs to meet minimum statutory tax withholding requirements.
NOTE 15. SAN ONOFRE NUCLEAR GENERATING STATION SDG&E has a SDG&E, and each of the other owners, holds its undivided interest as a tenant in common in the property. Each owner is responsible for financing its share of costs. SDG&E’s share of operating expenses is included in NUCLEAR DECOMMISSIONING AND FUNDING As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison began the decommissioning phase of the plant. Major decommissioning work began in 2020. We expect the majority of the decommissioning work to take approximately 10 years. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work for Unit 1 will be F-129 on-site, until the DOE identifies a The Samuel Lawrence Foundation filed a writ petition under the California Coastal Act in LA Superior Court in December 2019 seeking to invalidate the coastal development permit and to obtain injunctive relief to stop decommissioning work. The petition was denied in September 2021. In December 2021, the foundation filed a notice of appeal. In September 2020, the foundation filed another writ petition under the California Coastal Act in LA Superior Court seeking to set aside the CCC’s July 2020 approval of the inspection and maintenance plan for the SONGS’ canisters and to obtain injunctive relief to stop decommissioning work. In December 2021, the foundation filed a request for dismissal. To date, decommissioning work has not been interrupted as a result of these writ petitions. In accordance with state and federal requirements and regulations, SDG&E has assets held in the NDT to fund its share of decommissioning costs for SONGS Units 1, 2 and 3. In The final regulations F-130 Nuclear Decommissioning Trusts The following table shows the fair values and gross unrealized gains and losses for the securities held in the
(1) (2)Maturity dates are 2022-2056.
The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales.
F-131
Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on ASSET RETIREMENT OBLIGATION The present value of SDG&E’s ARO related to decommissioning costs for U.S. DEPARTMENT OF ENERGY NUCLEAR FUEL DISPOSAL Spent nuclear fuel from SONGS is currently stored on-site in an ISFSI licensed by the The Nuclear Waste Policy Act of 1982 made the DOE responsible for accepting, transporting, and disposing of spent nuclear fuel. However, it is uncertain when the DOE will begin accepting spent nuclear fuel from SONGS. This delay NUCLEAR INSURANCE SDG&E and the other owners of SONGS have insurance to cover claims from nuclear liability incidents arising at SONGS. Currently, this insurance provides $450 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides an additional $110 million of coverage. If a nuclear liability loss occurs at SONGS and exceeds the $450 million insurance limit, this additional coverage would be available to provide a total of $560 million in coverage limits per incident. The SONGS owners The nuclear property insurance program includes an industry aggregate loss limit for non-certified acts of terrorism (as defined by the Terrorism Risk Insurance Act) of $3.24 billion. This is the maximum amount that will be paid to insured members who suffer losses or damages from these non-certified terrorist acts. NOTE 16. COMMITMENTS AND CONTINGENCIES LEGAL PROCEEDINGS We accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to reasonably estimate the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed, and in some cases have exceeded, applicable insurance coverage and could materially adversely affect our business, F-132 At December 31, SoCalGas Aliso Canyon Natural Gas Storage Facility Gas Leak Civil In chemicals released during the Leak. The complaints against SoCalGas and Sempra On September 26, 2021, SoCalGas In January 2017, 2 consolidated class action complaints were filed against SoCalGas and Sempra, 1 on behalf of a putative class of persons and businesses who own or lease real property within a five-mile radius of the well (the Property Class Action), and a second on behalf of a putative class of all persons and entities conducting business within five miles of the facility (the Business Class Action). The Property Class Action asserts claims for strict liability for ultra-hazardous activities, negligence, negligence per se, violation of the California Unfair Competition Law, trespass, permanent and continuing public and private nuisance, and inverse condemnation. The Business Class Action asserts a claim for violation of the California Unfair Competition Law. Both complaints seek compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees. On September 26, 2021, SoCalGas and Sempra entered into an agreement to settle the Property Class Action for a total amount of $40 million. If, following a fairness hearing at which any objections to the settlement will be heard, the LA Superior Court gives final approval of the settlement, the agreement provides for a release of SoCalGas, Sempra and their respective affiliates from all claims related to the Leak by all property class members who do not opt out of the class. Members of the property class who opt out of the settlement will have the right to pursue their claims on an individual basis. F-133 On September 27, 2021, SoCalGas and Sempra entered into an agreement to settle the individual claims of the named plaintiffs in the Business Class Action for a total amount of $100,000 in exchange for a dismissal and release of SoCalGas, Sempra and their respective affiliates from all claims related to the Leak. The complaint was dismissed in January 2022. The Third Amended Consolidated Master Case Complaint for Individual Actions includes claims for violation of Proposition 65 seeking penalties for alleged violation of requirements to warn about certain chemical exposures as a result of the Leak. On November 4, 2021, SoCalGas entered into an agreement to settle these claims for a payment of approximately $2 million; in addition, SoCalGas agreed to implement certain measures to reduce emissions at the Aliso Canyon natural gas storage facility and to provide warnings to residents if benzene measured at the facility’s fence line exceeds certain levels. In January 2022, the LA Superior Court entered a consent judgment resolving the Proposition 65 claims. In October 2018 and October 2020, five property developers (the Developer Plaintiffs) filed complaints against SoCalGas and Sempra alleging causes of action for strict liability, negligence per se, negligence, negligent interference, continuing nuisance, permanent nuisance, inverse condemnation and violation of the California Unfair Competition Law and California Public Utilities Code section 2106, as well as claims for negligence against certain directors of SoCalGas. The complaints seek compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees. In October 2021, the claims against the individual SoCalGas directors were dismissed. In January 2022, SoCalGas and Sempra entered into an agreement to settle the claims of one of the Developer Plaintiffs, and its complaint was dismissed. An adverse ruling in any of the lawsuits in the Individual Plaintiff Litigation filed by plaintiffs who do not agree to settle, any lawsuits filed by property class members who opt out of the Property Class Action settlement or by members of the putative Business Class Action could have a material adverse effect on SoCalGas’ and Sempra’s results of operations, financial condition, cash flows and/or prospects. In addition, there can be no assurance that the conditions to resolve the Individual Plaintiff Litigation will be satisfied or that the LA Superior Court will approve the settlement for the Property Class Action. In addition, a federal securities class action alleging violation of the federal securities laws Civil Litigation – Unresolved Litigation. The claims of F-134 disposition of In November 2020, the CPUC issued a decision on the interim range of At December 31, 2021, the Aliso Canyon natural gas storage facility had a net book value of Cost Estimate, Accounting Impact and Insurance. SoCalGas As a result of entering into the agreements described Except for the amounts paid or estimated to settle certain F-135 lawsuits and other potential costs that we currently do not anticipate incurring or that we cannot reasonably estimate. Sempra Infrastructure Energía Costa Azul We describe below certain land and ▪A claimant to the adjacent property filed complaints in the federal Agrarian Court challenging the refusal of SEDATU in 2006 to issue ▪In a separate proceeding, the claimant filed suit to reinitiate an administrative procedure at SEDATU to obtain the property title that was previously dismissed. In April 2021, the Agrarian Court ordered that the administrative procedure be restarted. In addition, four cases involving two adjacent areas of real property on which part of the ECA Regas Facility is situated, each brought by a single plaintiff or her descendants, remain pending against the facility, as follows: ▪The first disputed area is subject to a claim in the federal Agrarian Court that has been ongoing since 2006, in which the plaintiff seeks to annul the property title for a portion of the land on which the ECA Regas Facility is situated and to obtain possession of a different parcel that allegedly overlaps with the site of the ECA Regas Facility. The proceeding, which seeks an order that SEDATU annul the ECA Regas Facility’s competing property title, was initiated in 2006 and, in July 2021, a decision was issued in favor of the ECA Regas Facility. The plaintiff appealed, and in February 2022, the appellate court confirmed the ruling in favor the ECA Regas Facility and dismissed the appeal. F-136 ▪The second disputed area is one parcel adjacent to the ECA Regas Facility that allegedly overlaps with land on which the ECA Regas Facility is situated, which is subject to a claim in the federal Agrarian Court and two claims in Mexican civil courts. The ECA Regas Facility first bought the property from the federal government in 2003; however, to resolve an ownership controversy, in 2008, the ECA Regas Facility reached a financial settlement with the plaintiff to eliminate an adverse claim to our title. Nevertheless, the plaintiff sued in 2013 for the nullity of both titles. The Agrarian Court ruled in favor of the plaintiff in May 2021, nullifying the first property title. Sempra Infrastructure appealed the ruling in July 2021, which is pending resolution. The ECA Regas Facility continues to hold the second property title to the land. The two civil court proceedings, which seek to invalidate the contract by which the ECA Regas Facility purchased for the second time the applicable parcel of land on which the ECA Regas Facility is situated on the grounds that the purchase price was allegedly unfair, are progressing at different stages. In the first civil case, initiated in 2013, the court ruled in favor of the ECA Regas Facility, and the final decision was affirmed on a federal appeal. The descendants of the same plaintiff filed the second civil case in 2019, which was dismissed by the court. However, the dismissal has been appealed, which is pending the appellate court’s ruling. Certain of these land disputes involve land on which portions of the ECA LNG liquefaction facilities, including ECA LNG Phase 1 currently under construction, are proposed to be Environmental and Social Impact Permits. Several administrative challenges are pending ▪In the first case, the court issued a provisional injunction in September 2018. In December 2018, ASEA approved modifications to the environmental permit that facilitate the development of the proposed natural gas liquefaction facility in two phases. In May 2019, the court canceled the provisional injunction. The claimant appealed the court’s decision canceling the injunction, but was not successful. The claimant’s underlying challenge to the permits remains pending. ▪In the second case, the initial request for a provisional injunction was denied. That decision was reversed on ▪In the third case, a group of residents filed a complaint in June 2021 against various federal and state authorities alleging deficiencies in the public consultation process for the issuance of the permits. The request for an initial injunction was denied and the claimants have appealed, which is pending the appellate court’s ruling. Customer Dispute. In May 2020, the two third-party capacity customers at the ECA Regas Facility, Shell Mexico and Gazprom, asserted that a 2019 update of the general terms and conditions for service at the facility, as approved by the CRE, resulted in a breach of contract by Sempra Infrastructure and a force majeure event. Citing these circumstances, the customers subsequently stopped making payments of amounts due under their respective LNG F-137 Sonora Pipeline Guaymas-El Oro Following the start of commercial operations of the Guaymas-El Oro segment, Sempra Infrastructure reported damage to the Guaymas-El Oro segment of the Sonora pipeline in the Yaqui territory that has made that section inoperable since August 2017 and, as a result, Sempra Infrastructure declared a force majeure event. In 2017, an appellate court ruled that the scope of the 2016 suspension order encompassed the wider Yaqui Sempra Infrastructure exercised its rights under the contract, which payments In July 2019, the CFE filed a request for arbitration generally to nullify certain contract terms that provide for fixed capacity payments in instances of force majeure and made a demand for substantial damages in connection with the force majeure event. In September 2019, the arbitration process ended when Sempra Infrastructure and the CFE reached an agreement to restart natural gas transportation service on the earlier of completion of repair of the damaged pipeline or January 15, 2020, and to modify the tariff structure and extend the term of the contract by 10 years. Subsequently, Sempra Infrastructure and the CFE agreed to extend the service start date multiple times, most recently to March 14, 2022. Under the revised agreement, the CFE will resume making payments only when the damaged section of the Guaymas-El Oro segment of the Sonora pipeline is repaired. If the pipeline is not repaired by March 14, 2022, and the parties do not agree on a new service start date, Sempra Infrastructure retains the right to terminate the contract and seek to recover its reasonable and documented costs and lost profits. Discussions with the CFE regarding the future of the pipeline, including the potential re-routing of a portion of the pipeline, are underway in accordance with a non-binding MOU announced in January 2022 that, among other matters, addresses efforts to restart service on the pipeline. Sempra Infrastructure intends to enter into a definitive agreement with respect to the pipeline in the first quarter of 2022. At December 31, 2021, Sempra Infrastructure had $432 million in PP&E, net, related to the Guaymas-El Oro segment of the Sonora pipeline, which could be subject to impairment if Sempra Infrastructure is unable to make such repairs (which have not commenced) or re-route a portion of the pipeline (which has not been agreed to by the parties, but is subject to negotiation pursuant to a non-binding MOU, as described above) and resume operations in the Guaymas-El Oro segment of the Sonora pipeline or if Sempra Infrastructure terminates the contract and is unable to obtain recovery, which in each case could have a material adverse effect on Sempra’s business, results of operations, financial condition, cash flows and/or prospects. Sasabe-Puerto Libertad-Guaymas Segment. In June 2014, Sempra Infrastructure and a landowner agreed to enter into a voluntary right-of-way easement agreement for the construction and operation of a seven-mile section of the 314-mile Sasabe-Puerto Libertad-Guaymas segment of the Sonora natural gas pipeline F-138 Regulatory and Other Actions by the Mexican Government We describe below certain actions by the Mexican government that could have a material impact on the energy sector in Mexico. Sempra Infrastructure and other parties affected by these resolutions, orders, decrees, regulations and proposed amendments to Mexican law have challenged them by filing amparo and other claims, some of which have been granted injunctive relief. The court-ordered injunctions or suspensions provide temporary relief until Mexico’s federal district court or Supreme Court ultimately resolves the amparo and other claims. If passed in its current form, the proposed constitutional reform described below introduces significant changes to the legal and economic principles underlying the country’s energy reform of 2013, generating imminent risks for private investments in this sector. An unfavorable decision on one or more of these amparo or other challenges, the potential for extended disputes, or if passed in its current form, the proposed constitutional reform may impact our ability to operate our facilities at existing levels or at all, may result in increased costs for Sempra Infrastructure and its customers, may adversely affect our ability to develop new projects, and may negatively impact our ability to recover the carrying values of our investments in Mexico, any of which may have a material adverse effect on our business, results of operations, financial condition, cash flows and/or prospects. Transmission Rates for Legacy Generation Facilities. In May 2020, the CRE approved an update to the transmission rates included in legacy renewable and cogeneration energy contracts based on the claim that the legacy transmission rates did not reflect fair and proportional costs for providing the applicable services and, therefore, created inequitable competitive conditions. Three of Sempra Infrastructure’s renewable energy facilities (Don Diego Solar, Border Solar and Ventika) are currently holders of contracts with such legacy rates, and under the terms of these contracts any increases in the transmission rates would be passed through directly to their customers. These renewable energy facilities have obtained injunctive relief but are required to guarantee the difference in tariffs, which could be material, until the claims are definitively resolved by the courts. The three facilities obtained favorable resolutions from a lower court and the CRE has appealed one of these decisions. Offtakers of Legacy Generation Permits. In October 2020, the CRE approved a resolution to amend the rules for the inclusion of new offtakers of legacy generation and self-supply permits (the Offtaker Resolution), which became effective immediately. The Offtaker Resolution prohibits self-supply permit holders from adding new offtakers that were not included in the original development or expansion plans, making modifications to the amount of energy allocated to the named offtakers, and including load centers that have entered into a supply arrangement under Mexico’s Electricity Industry Law. Don Diego Solar, Border Solar and Ventika are holders of self-supply permits and are impacted by the Offtaker Resolution. In January 2022, Don Diego Solar and Border Solar obtained a favorable resolution from a Mexican federal district court that we expect the CRE will appeal. If Sempra Infrastructure is not able to obtain legal protection for these impacted facilities, Sempra Infrastructure expects it will sell Border Solar’s capacity and a portion of Don Diego Solar’s capacity affected by the Offtaker Resolution into the spot market. Currently, prices in the spot market are significantly lower than the fixed prices in the PPAs that were entered into through self-supply permits. At December 31, 2021, Sempra Infrastructure had $14 million in other intangible assets, net, related to these self-supply permits previously granted by the CRE and impacted by the Offtaker Resolution that could be subject to impairment if Sempra Infrastructure is unable to obtain adequate legal protection. Sempra Infrastructure has filed lawsuits against the Offtaker Resolution and received injunctive relief pending final resolution. Amendments to Mexico’s Electricity Industry Law. In March 2021, the Mexican government published a decree with amendments to Mexico’s Electricity Industry Law that include some public policy changes, including establishing priority of dispatch for CFE plants over privately owned plants. According to the decree, these amendments were to become effective on March 10, 2021, and SENER, the CRE and CENACE were to have 180 calendar days to modify, as necessary, all resolutions, policies, criteria, manuals and other regulations applicable to the power industry to conform with this decree. However, a Mexican court issued a suspension of the amendments on March 19, 2021, and it is expected that Mexico’s Supreme Court will ultimately settle the matter. If the proposed amendments are affirmed by the Supreme Court, the CRE may be required to revoke self-supply permits granted under the former electricity law, which were grandfathered when the new Electricity Industry Law was enacted, under a legal standard that is ambiguous and not well defined under the law. Amendments to Mexico’s Hydrocarbons Law. In May 2021, amendments to Mexico’s Hydrocarbons Law were published and became effective. The amendments grant SENER and the CRE additional powers to suspend and revoke permits related to the midstream and downstream sectors. Suspension of permits will be determined by SENER or the CRE when a danger to national security, energy security, or to the national economy is foreseen. Likewise, new grounds for the revocation of permits are in place if the permit holder (i) carries out its activity with illegally imported products; (ii) fails, on more than one occasion, to comply with the provisions applicable to quantity, quality and measurement of the products; or (iii) modifies the technical conditions of its infrastructure without authorization. Additionally, in the case of existing permits, authorities will revoke those permits that fail to comply with the minimum storage requirements established by SENER or fail to comply with requirements or violate provisions established by the amended Hydrocarbons Law. All of Sempra Infrastructure’s facilities participating in the hydrocarbons sector filed lawsuits against the initiative to reform the Hydrocarbons Law and received injunctive relief pending a F-139 final resolution by the courts. In May 2021, a Mexican district court ordered the suspension of several of the provisions of the amendments with general application across the sector. In 2021, district courts issued judgments that the amendments do not affect the interests of the companies at this time and, as a result, dismissed the amparo lawsuits filed by several companies in the market, including three of the five lawsuits filed by Sempra Infrastructure. These judgments have been appealed and the granted suspensions will remain valid until the lawsuits are definitively resolved. Amendments to Mexico’s General Foreign Trade Rules. In June 2021, amendments to Mexico’s General Foreign Trade Rules went into effect, which establish that only state-owned companies may import and export hydrocarbons, refined products, petrochemicals, and biofuels through channels other than those authorized (LDA authorization). These amendments prevent non-state-owned companies from (i) obtaining LDA authorizations, which affect new projects that have not obtained such approval, and (ii) renewing existing LDA authorizations, which affect operational projects and those under construction. The ECA Regas Facility and the Veracruz terminal have LDA authorizations that are valid through 2023 and, as a preventive measure, have filed amparo claims to challenge the newly introduced barrier to renewing their existing LDA authorizations. In order to start operations at terminals currently under construction or in development in the vicinity of Topolobampo, Manzanillo and Ensenada, including the proposed ECA LNG liquefaction projects, Sempra Infrastructure filed amparo claims to challenge such amendments that prevent them from obtaining LDA authorizations in the future. In October and November of 2021, the Mexican government published new General Foreign Trade Rules in which private companies are allowed to obtain LDA authorizations and, as a consequence, the amparo claims filed by the ECA Regas Facility and the Veracruz terminal have been dismissed by the courts, while the appropriate court is being determined to hear the amparo claim for future LDA authorizations. There can be no assurance that new or renewed LDA authorizations will be obtained in a timely manner or at all. Proposed Constitutional Reform in Mexico. In September 2021, the President of Mexico presented a constitutional reform initiative with the stated goal of preserving energy security and self-sufficiency, and a continuous supply of electricity to the country’s population, as a condition for guaranteeing national security and the human right to a decent life. The CRE and the National Commission of Hydrocarbons would be dissolved, and their functions would be carried out by SENER. CENACE would be reinstated to the CFE, and the CFE would be responsible for generating, conducting, transforming, distributing and supplying electricity, and would be the only entity allowed to commercialize electric energy in Mexico. Electricity generation permits and contracts for the sale of electricity and RECs to the CFE, including permits at all of Sempra Infrastructure’s operational power generation facilities, would be canceled. The public electricity supply service would be provided exclusively by the CFE, which may acquire up to 46% of required energy from the private sector. Only certain private power plants would be permitted to continue generating electricity and compete to offer the CFE the lowest production costs. The initiative must first be submitted to a vote and approved in the respective plenary sessions of the Chamber of Deputies and the Chamber of Senators in Mexico. Additionally, the initiative must be approved by a two-thirds vote of Mexico’s Federal Congress and by the majority of the legislatures of the Mexican States and published in the Federal Official Gazette to be in force. Sempra Infrastructure is following this legislative procedure while assessing alternatives for its project companies. If passed in its current form, the initiative could have a material adverse effect on our business, results of operations, financial condition, cash flows and/or prospects, our ability to recover the carrying values of our investments in Mexico, and our ability to operate existing facilities and develop new energy projects in the country. Other Litigation RBS Sempra Sempra holds an F-140 (approximately $61 million in U.S. dollars at December 31, Asbestos Claims Against EFH Subsidiaries Certain EFH subsidiaries that we acquired as part of the Ordinary Course Litigation We are also defendants in ordinary routine litigation incidental to our businesses, including personal injury, employment litigation, product liability, property damage and other claims. Juries have demonstrated an increasing willingness to grant large awards, including punitive damages, in these types of cases. LEASES A lease exists when a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. We determine if an arrangement is or contains a lease at inception of the contract. Some of our lease agreements contain nonlease components, which represent activities that transfer a separate good or service to the lessee. As the lessee for both operating and finance leases, we have elected to combine lease and nonlease components as a single lease component for real estate, fleet vehicles, power generating facilities, and pipelines, whereby fixed or in-substance fixed payments allocable to the nonlease component are accounted for as part of the related lease liability and ROU asset. As the lessor, we have elected to combine lease and nonlease components as a single lease component for real estate, power generating facilities and liquid fuels terminals if the timing and pattern of transfer of the lease and nonlease components are the same and the lease component would be classified as an operating lease if accounted for separately. Lessee Accounting We have operating and finance leases for real and personal property (including office space, land, fleet vehicles, machinery and equipment, warehouses and other operational facilities) and PPAs with renewable energy, energy storage and peaker plant facilities. Some of our leases include options to extend the lease terms for up to 20 years, or to terminate the lease within one year. Our lease liabilities and ROU assets are based on lease terms that may include such options when it is reasonably certain that we will exercise the option. Certain of our contracts are short-term leases, which have a lease term of 12 months or less at lease commencement. We do not recognize a lease liability or ROU asset arising from short-term leases for all existing classes of underlying assets. In such cases, we recognize short-term lease costs on a straight-line basis over the lease term. Our short-term lease costs for the period reasonably reflect our short-term lease commitments. F-141 Certain of our leases contain escalation clauses requiring annual increases in rent ranging from 2% to 5% or based on the Consumer Price Index. The rentals payable under these leases may increase by a fixed amount each year or by a percentage of a base year. Variable lease payments that are based on an index or rate are included in the initial measurement of our lease liability and ROU asset based on the index or rate at lease commencement and are not remeasured because of changes to the index or rate. Rather, changes to the index or rate are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred. Similarly, PPAs for the purchase of renewable energy at SDG&E require lease payments based on a stated rate per MWh produced by the facilities, and we are required to purchase substantially all the output from the facilities. SDG&E is required to pay additional amounts for capacity charges and actual purchases of energy that exceed the minimum energy commitments. Under these contracts, we do not recognize a lease liability or ROU asset for leases for which there are no fixed lease payments. Rather, these variable lease payments are recognized separately as variable lease costs. SDG&E estimates these variable lease payments to be $297 million in 2022, $296 million in 2023, $297 million in 2024, $296 million in 2025, $290 million in 2026 and $2,779 million thereafter. As of the lease commencement date, we recognize a lease liability for our obligation to make future lease payments, which we initially measure at present value using our incremental borrowing rate at the date of lease commencement, unless the rate implicit in the lease is readily determinable. We determine our incremental borrowing rate based on the rate of interest that we would have to pay to borrow, on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. We also record a corresponding ROU asset, initially equal to the lease liability and adjusted for lease payments made at or before lease commencement, lease incentives, and any initial direct costs. We test ROU assets for recoverability whenever events or changes in circumstances have occurred that may affect the recoverability or the estimated useful lives of the ROU assets. For our operating leases, our non-regulated entities recognize a single lease cost on a straight-line basis over the lease term in operating expenses. SDG&E and SoCalGas recognize this single lease cost on a basis that is consistent with the recovery of such costs in accordance with U.S. GAAP governing rate-regulated operations. For our finance leases, the interest expense on the lease liability and amortization of the ROU asset are accounted for separately. Our non-regulated entities use the effective interest rate method to account for the imputed interest on the lease liability and amortize the ROU asset on a straight-line basis over the lease term. SDG&E and SoCalGas recognize amortization of the ROU asset on a basis that is consistent with the recovery of such costs in accordance with U.S. GAAP governing rate-regulated operations. Our leases do not contain any material residual value guarantees, restrictions or covenants. Classification of ROU assets and lease liabilities and the weighted-average remaining lease term and discount rate associated with operating and finance leases are summarized in the table below. F-142
F-143 The components of lease costs were as follows:
(1) Includes costs capitalized in PP&E. (2) Included in O&M, except for $22 at Sempra, $21 at SDG&E and $1 at SoCalGas in 2021, $18 at Sempra and SDG&E in 2020, and $15 at Sempra and SDG&E in 2019, which is included in Depreciation and Amortization Expense. (3) Short-term leases with variable lease costs are recorded and presented as variable lease costs. Cash paid for amounts included in the measurement of lease liabilities and supplemental noncash information were as follows:
The table below presents the maturity analysis of our lease liabilities and reconciliation to the present value of lease liabilities: F-144
(1) Includes $9 in each of 2022 through 2026 and $87 thereafter related to purchased-power contracts. (2) Substantially all amounts are related to purchased-power contracts. Leases That Have Not Yet Commenced SDG&E has entered into three energy storage tolling agreements, of which SDG&E expects two will commence in the third quarter of 2022 and one will commence in the second quarter of 2023. SDG&E expects to account for these agreements as operating leases upon commencement and expects the future minimum lease payments to be $8 million in 2022, $17 million in 2023, $18 million in each of 2024 through 2026 and $101 million thereafter until expiration at various dates from 2032 through 2033. SoCalGas has entered into a fleet vehicle agreement, which SoCalGas expects will commence in May 2022. SoCalGas expects to account for the agreement as a finance lease upon commencement and expects the future minimum lease payments to be $1 million in 2022 and $2 million in each of 2023 through 2026 and $6 million thereafter until expiration in 2029. Lessor Accounting Sempra Infrastructure is a lessor for certain of its natural gas and ethane pipelines, compressor stations, LPG storage facilities, a rail facility and liquid fuels terminals, which we account for as operating or sales-type leases. These leases expire at various dates from 2022 through 2041. Over the lease term, we monitor the underlying assets in operating leases for impairment, and we evaluate the net investment in sales-type leases for expected credit losses. Sempra Infrastructure expects to continue to derive value from the underlying assets associated with its pipelines following the end of their respective lease terms based on the expected remaining useful life, expected market conditions and plans to re-market and re-contract the underlying assets. Generally, we recognize operating lease income on a straight-line basis over the lease term, and sales-type lease income based on the effective interest method over the lease term. Certain of our leases contain rate adjustments or are based on foreign currency exchange rates that may result in lease payments received that vary in amount from one period to the next. In July 2021, a rail facility agreement commenced, which Sempra Infrastructure is accounting for as a sales-type lease. The rail facility is being used by the lessee to transport liquid fuels out of the Veracruz terminal. The lessee has the right to direct the use of the rail facility and will obtain substantially all of the economic benefits of the rail facility. At lease commencement, Sempra Infrastructure derecognized the $44 million carrying value of the rail facility from PP&E and recognized a net investment in sales-type lease asset of $62 million and a selling profit of $18 million. The agreement expires in 2041 and will automatically renew for successive five-year terms unless written notice is provided by Sempra Infrastructure or the lessee. Fixed lease payments are payable in the first five years of the agreement, which the lessee is required to pay even in the event of lease termination. F-145
(1) Included in Machinery and Equipment — Pipelines and Storage within the major functional categories of PP&E. (2) Includes $9 in Other Current Assets and $46 in Other Long-Term Assets on the Consolidated Balance Sheet.
(1) Included in Revenues: Energy-Related Businesses on the Consolidated Statements of Operations. CONTRACTUAL COMMITMENTS Natural Gas Contracts SoCalGas has SoCalGas transports natural gas primarily under long-term firm interstate pipeline capacity agreements that provide for annual reservation charges, which are recovered in rates. SoCalGas has commitments with interstate pipeline companies for firm pipeline capacity under contracts that expire at various dates through Sempra F-146 Payments on our natural gas portfolio needs. At December 31,
Total payments under natural gas contracts and natural gas storage and transportation contracts as well as payments to meet additional portfolio needs at Sempra
LNG Purchase Agreement Sempra At December 31,
Actual LNG purchases were approximately $27 million in Purchased-Power Contracts For
▪Other SDG&E-owned generation and tolling contracts expiring on various dates through 2039: 46% F-147 ▪Spot market sales: (6)% Payments on our purchased-power contracts could exceed the based on energy needs. At December 31,
Payments on these contracts represent capacity charges and minimum energy and transmission purchases that exceed the minimum commitment. SDG&E
Construction and Development Projects Sempra SDG&E At December 31, ▪$4 million for infrastructure improvements for electric and natural gas transmission and distribution systems; and ▪$23 million related to spent fuel management at SONGS. SDG&E expects future payments under these contractual commitments to be Sempra At December 31,
Sempra OTHER COMMITMENTS SDG&E We discuss nuclear insurance and nuclear fuel disposal related to SONGS in Note 15. Fire Mitigation Fund In connection with the completion of the Sunrise Powerlink project in 2012, the CPUC required that SDG&E establish a fire mitigation fund to minimize the risk of fire as well as reduce the potential wildfire impact on residences and structures near the Sunrise Powerlink. The future payments for these contractual commitments, for which a liability has been recorded, are expected F-148 to be Franchise Agreements Two lawsuits have been filed in the California Superior Court challenging the City’s process for its award of the natural gas and electric franchises and seeking to declare the franchise agreements null and void. Sempra Additional consideration for a 2006 comprehensive legal settlement with the State of California to resolve the Continental Forge litigation included an agreement that, for a period of 18 years beginning in 2011, Sempra ENVIRONMENTAL ISSUES Our operations are subject to federal, state and local environmental laws. We also are subject to regulations related to hazardous wastes, air and water quality, land use, solid waste disposal and the protection of wildlife. These laws and regulations require that we investigate and correct the effects of the release or disposal of materials at sites associated with our past and our present operations. These sites include those at which we have been identified as a PRP under the federal Superfund laws and similar state laws. In addition, we are required to obtain numerous governmental permits, licenses and other approvals to construct facilities and operate our businesses. The related costs of environmental monitoring, pollution control equipment, cleanup costs, and emissions fees are significant. Increasing national and international concerns regarding global warming and mercury, carbon dioxide, nitrogen oxide and sulfur dioxide emissions could result in requirements for additional pollution control equipment or significant emissions fees or taxes that could adversely affect Sempra We disclose any proceeding under environmental laws to which a government authority is a party when the potential monetary sanctions, exclusive of interest and costs, exceed the lesser of $1 million or 1% of current assets, which was $44 million for Sempra, $14 million for SDG&E and $16 million for SoCalGas at December 31, 2021. We discuss environmental matters related to the natural gas leak at SoCalGas’ Aliso Canyon natural gas storage facility above in “Legal Proceedings – SoCalGas – Aliso Canyon Natural Gas Storage Facility Gas Leak.” F-149 Other Environmental Issues We generally capitalize the significant costs we incur to mitigate or prevent future environmental contamination or extend the life, increase the capacity, or improve the safety or efficiency of property used in current operations. The following table shows our capital expenditures (including construction work in progress) in order to comply with environmental laws and regulations:
We have not identified any significant environmental issues outside the U.S. At The environmental issues currently facing us, except for those related to the The table below shows the status at December 31,
We record environmental liabilities F-150 The following table shows our accrued liabilities for environmental matters at December 31,
(1) Sites for which we have been identified as a PRP. (2) Includes $5, $2 and $3 classified as current liabilities, and $52, $16 and $35 classified as noncurrent liabilities on Sempra’s, SDG&E’s and SoCalGas’ Consolidated Balance Sheets, respectively. (3) Does not include SDG&E’s liability for SONGS marine environment mitigation. (4) Does not include SoCalGas’ liability for environmental matters for the Leak. We discuss matters related to the Leak above in “Legal Proceedings – SoCalGas – Aliso Canyon Natural Gas Storage Facility Gas Leak.” In connection with the issuance of operating permits, SDG&E and the other owners of SONGS previously reached an agreement with the CCC to mitigate the damage to the marine environment caused by the cooling-water discharge from SONGS during its operation. SONGS’ early retirement, described in Note 15, We expect future payments related to our environmental liabilities on NOTE 17. SEGMENT INFORMATION We have ▪SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County. ▪SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California. ▪Sempra Texas Utilities holds our investment in Oncor Holdings, which owns an 80.25% interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern, western and panhandle regions of Texas; and our indirect, 50% interest in Sharyland Holdings, which owns Sharyland Utilities, a regulated electric transmission utility serving customers near the Texas-Mexico border. ▪Sempra Infrastructure includes the operating companies of our subsidiary, SI Partners, as well as a holding company and certain services companies. Sempra Infrastructure develops, builds, operates and invests in energy infrastructure to help enable the energy transition in North American markets and globally. Sempra Infrastructure owns an 80% interest in SI Partners, which held a 100% ownership interest in Sempra LNG Holding, LP and a 99.9% ownership interest in IEnova at December 31, 2021. In April 2019, Sempra Renewables completed the sale of its remaining wind assets and investments. Upon completion of this sale, remaining nominal business activities at Sempra Renewables were subsumed into Parent and other and the Sempra Renewables segment ceased to exist. The tables below include amounts from Sempra Renewables up until cessation of the segment. As we discuss in Note 5, the financial information related to our businesses that constituted the Sempra South American Utilities segment is presented as discontinued operations for all periods presented. The information in the tables below excludes amounts from discontinued operations unless otherwise noted. We completed the sales of our discontinued operations in the second quarter of 2020. We evaluate each segment’s performance based on its contribution to F-151 The cost of common services shared by the business segments is assigned directly or allocated based on various cost factors, depending on the nature of the service provided. Interest income and expense is recorded on intercompany loans. The loan balances and related interest are eliminated in consolidation. The following tables show selected information by segment from our Consolidated Statements of Operations and Consolidated Balance Sheets. We provide information about our equity method investments by segment in Note F-152
F-153
(1)Revenues for reportable segments include intersegment revenues of $10, $98, and $55 for 2021; $5, $88, and $(3) for 2020; and $5, $69, and $11 for 2019 for SDG&E, SoCalGas, and Sempra Infrastructure, respectively. (2)Includes net PP&E and investments. F-154
S-1
See Notes to Condensed Financial Information of Parent.
See Notes to Condensed Financial Information of Parent. S-3
See Notes to Condensed Financial Information of Parent. S-4
See Notes to Condensed Financial Information of Parent. S-5 NOTES TO CONDENSED FINANCIAL INFORMATION OF PARENT NOTE 1. BASIS OF PRESENTATION The condensed financial information of Sempra Energy has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04. We apply the same accounting policies as in the financial statements of Sempra, NOTE 2. NEW ACCOUNTING STANDARDS We describe below and in Note 2 of the Notes to Consolidated Financial Statements recent pronouncements that have had ASU 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”: ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. In addition to other changes, this standard amends ASC 470-20, “Debt with Conversion and Other Options,” by removing the accounting models for instruments with beneficial and cash conversion features. The standard also amends certain guidance in ASC 260, “Earnings Per Share,” for the computation of EPS for convertible instruments and contracts on an entity’s own equity. For public entities, ASU 2020-06 is
NOTE 3. DEBT AND CREDIT FACILITY SHORT-TERM DEBT Committed Line of Credit At December 31, 2021, Sempra Energy had an aggregate capacity of $4.4 billion under two primary committed lines of credit and available unused credit of $3.1 billion, which provide liquidity and support its commercial paper program. The amount of commercial paper outstanding, before reduction of any unamortized discount, and any letters of credit outstanding is reflected as a reduction to the available unused credit. The principal terms of Sempra Energy’s committed lines of credit include the following: ▪Each facility has a syndicate of 23 lenders. No single lender has greater than a 6% share in the facility. ▪One facility provides for the issuance of $200 million of letters of credit. Subject to obtaining commitments from existing or new lenders and satisfaction of other specified conditions, Sempra Energy has the right to increase its letter of credit commitment to $500 million. No letters of credit were outstanding at December 31, 2021. ▪Borrowings bear interest at a benchmark rate plus a margin that varies with Sempra Energy’s credit rating. ▪Sempra Energy must maintain a ratio of indebtedness to total capitalization (as defined in its credit facility) of no more than 65% at the end of each quarter. At December 31, 2021, Sempra Energy was in compliance with this ratio under credit facility. S-6 LONG-TERM DEBT The following table shows the detail and maturities of long-term debt outstanding:
At December 31, 2021, long-term debt Additional information on Sempra Energy’s long-term debt is provided in Note 7 of the Notes to Consolidated Financial Statements. S-7 NOTE 4. COMMITMENTS AND CONTINGENCIES Sempra Energy has an operating lease commitment related to its corporate headquarters building of approximately $279 million. Sempra Energy expects payments for its operating lease to be $11 million in 2022, $12 million in each of 2023 through 2026 and $220 million thereafter. For other contingencies and guarantees related to Sempra Energy, refer to Notes S-8 |