SEMPRA
For the period ended Sep 30, 2024. Filed Nov 6, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 6, 2024
SRE$78.17-2.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0001032208-24-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewResults of Operations by RegistrantSempraSDG&ESoCalGasCapital Resources and LiquidityCritical Accounting EstimatesNew Accounting StandardsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-06.
0001032208-24-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewResults of Operations by RegistrantSempraSDG&ESoCalGasCapital Resources and LiquidityCritical Accounting EstimatesNew Accounting StandardsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 502 previous paragraphs and 541 current paragraphs.
215 unchanged; 141 reworded; 171 added; 120 removed; 26 previous and 14 current paragraphs rearranged.
Tables are not compared: 16 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (171)
Current report
Sempra California recorded CPUC-authorized base revenues in the three months and nine months ended September 30, 2024 based on 2023 levels authorized under the 2019 GRC because a final decision in the 2024 GRC remains pending.
Current report
In the three months ended September 30, 2024 compared to the same period in 2023, the decrease in earnings of $43 million (15%) to $247 million was primarily due to:
Current report
▪$38 million lower income tax benefits primarily from flow-through items and the resolution of prior year income tax items
Current report
In the nine months ended September 30, 2024 compared to the same period in 2023, the decrease in earnings of $102 million (8%) to $1.1 billion was primarily due to:
Current report
▪$89 million lower income tax benefits primarily from flow-through items, which includes $25 million related to income tax benefits in 2023 for previously unrecognized income tax benefits pertaining to gas repairs expenditures
Current report
◦annual energy efficiency program performance bonus approved in 2023, but pending PUCT approval in 2024
Current report
◦annual energy efficiency program performance bonus approved in 2023, but pending PUCT approval in 2024
Current report
In the three months ended September 30, 2024 compared to the same period in 2023, the increase in earnings of $7 million (3%) to $230 million was primarily due to:
Current report
▪$12 million from the transportation business driven by lower revenues due to lower rates and higher O&M from a provision for expected credit losses on a customer's past due receivable balance
Current report
▪$9 million from the renewables business driven by lower volumes from wind power generation assets
Current report
In the nine months ended September 30, 2024 compared to the same period in 2023, the decrease in earnings of $94 million (13%) to $652 million was primarily due to:
Current report
▪$11 million from the renewables business driven by lower volumes from wind power generation assets
Current report
▪$29 million higher income tax benefit primarily from outside basis differences
Current report
▪$17 million income tax expense in 2024 from changes to a valuation allowance against certain tax credit carryforwards
Current report
▪$29 million favorable impact from $17 million net investment gains in 2024 compared to $12 million net investment losses in 2023 on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan
Current report
▪$17 million income tax expense in 2024 from changes to a valuation allowance against certain tax credit carryforwards
Current report
▪$30 million favorable impact from $26 million net investment gains in 2024 compared to $4 million net investment losses in 2023 on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan
Current report
▪$160 million decrease in cost of natural gas sold, which we discuss below
Current report
▪$87 million lower revenues associated with refundable programs, which are fully offset in O&M
Current report
▪$74 million lower regulatory revenues in 2024 from adopting a change in tax accounting method for gas repairs expenditures, which are offset in income tax benefit (expense)
Current report
▪$28 million higher revenues from incremental and balanced capital projects, including higher authorized cost of capital
Current report
In the three months ended September 30, 2024 compared to the same period in 2023, Sempra’s cost of natural gas decreased by $161 million to $99 million driven by Sempra California primarily due to lower average natural gas prices.
Current report
▪$183 million lower regulatory revenues in 2024 from adopting a change in tax accounting method for gas repairs expenditures, which are offset in income tax benefit (expense)
Current report
▪$97 million lower revenues associated with refundable programs, which are fully offset in O&M
Current report
▪$53 million lower revenues from lower non-service components of net periodic benefit cost, which fully offsets in other income, net
Current report
▪$77 million higher revenues from incremental and balanced capital projects, including higher authorized cost of capital
Current report
▪$59 million higher CPUC-authorized revenues, including higher authorized cost of capital
Current report
In the nine months ended September 30, 2024 compared to the same period in 2023, Sempra’s cost of natural gas decreased by $2.5 billion to $790 million driven by Sempra California, which included:
Showing the first 40 of 171 passages. Open the source sections for the rest.
Removed paragraphs (120)
Previous report
Sempra California recorded CPUC-authorized base revenues in the three months and six months ended June 30, 2024 based on 2023 levels authorized under the 2019 GRC because a final decision in the 2024 GRC remains pending.
Previous report
In the three months ended June 30, 2024 compared to the same period in 2023, the decrease in earnings of $23 million (7%) to $316 million was primarily due to:
Previous report
▪$37 million lower income tax benefits primarily from flow-through items, which includes $25 million related to income tax benefits in 2023 for previously unrecognized income tax benefits pertaining to gas repairs expenditures
Previous report
In the six months ended June 30, 2024 compared to the same period in 2023, the decrease in earnings of $59 million (6%) to $898 million was primarily due to:
Previous report
▪$13 million from $7 million net income tax expense in 2024 compared to $6 million net income tax benefit in 2023 primarily from the remeasurement of certain deferred income taxes
Previous report
In the six months ended June 30, 2024 compared to the same period in 2023, the decrease in earnings of $101 million (19%) to $422 million was primarily due to:
Previous report
▪$11 million lower income tax expense primarily from the remeasurement of certain deferred income taxes
Previous report
▪$9 million from TdM driven by lower natural gas prices and higher volumes net of unrealized losses in 2024 compared to unrealized gains in 2023 on commodity derivatives due to changes in power and natural gas prices
Previous report
In the three months ended June 30, 2024 compared to the same period in 2023, the decrease in losses of $8 million (8%) to $96 million was primarily due to:
Previous report
▪$31 million from $13 million income tax benefit in 2024 compared to $18 million income tax expense in 2023 from the interim period application of an annual forecasted consolidated ETR
Previous report
▪$11 million lower income tax benefit from the interim period application of an annual forecasted consolidated ETR
Previous report
▪$178 million decrease in cost of natural gas sold, which we discuss below
Previous report
▪$37 million higher revenues from incremental and balanced capital projects, including higher authorized cost of capital
Previous report
▪$15 million higher CPUC-authorized revenues attributable to higher authorized cost of capital
Previous report
In the three months ended June 30, 2024 compared to the same period in 2023, Sempra’s cost of natural gas decreased by $174 million to $137 million driven by Sempra California, which included:
Previous report
▪$109 million lower regulatory revenues in 2024 from adopting a change in tax accounting method for gas repairs expenditures, which are offset in income tax benefit (expense)
Previous report
▪$47 million lower revenues from an $8 million credit in 2024 compared to $39 million cost in 2023 for the non-service components of net periodic benefit cost, which fully offsets in other income, net
Previous report
▪$49 million higher revenues from incremental and balanced capital projects, including higher authorized cost of capital
Previous report
In the six months ended June 30, 2024 compared to the same period in 2023, Sempra’s cost of natural gas decreased by $2.3 billion to $691 million driven by Sempra California, which included:
Previous report
▪$68 million higher cost of electric fuel and purchased power, which we discuss below
Previous report
▪$43 million higher revenues from incremental and balanced capital projects, including higher authorized cost of capital
Previous report
▪$30 million lower ITCs from standalone energy storage projects, which are offset in income tax benefit (expense)
Previous report
▪$35 million lower revenues associated with refundable programs, which are fully offset in O&M
Previous report
▪$5 million lower CPUC-authorized revenues offset by higher authorized cost of capital
Previous report
In the three months ended June 30, 2024 compared to the same period in 2023, Sempra’s cost of electric fuel and purchased power increased by $68 million to $156 million driven by Sempra California, which included:
Previous report
▪$120 million lower sales to the California ISO due to lower market prices
Previous report
▪$37 million higher purchased power primarily due to change in excess capacity sales
Previous report
▪$85 million lower purchased power from the California ISO due to lower market prices
Previous report
▪$66 million higher revenues from incremental and balanced capital projects, including higher authorized cost of capital
Previous report
▪$40 million higher cost of electric fuel and purchased power, which we discuss below
Previous report
▪$5 million higher CPUC-authorized revenues attributable to higher authorized cost of capital
Showing the first 40 of 120 passages. Open the source sections for the rest.
Reworded paragraphs (141)
Previous wording
We discuss herein Sempra’s results of operations and significant changes in earnings (losses), revenues and costs by segment, as well as Parent and other, for the three months (Q2) and six months (YTD) ended June 30, 2024 compared to the same periods in 2023. We also discuss herein the impact of foreign currency and inflation rates on Sempra’s results of operations.
Current wording
We discuss herein Sempra’s results of operations and significant changes in earnings (losses), revenues and costs by segment, as well as Parent and other, for the three months (Q3) and nine months (YTD) ended September 30, 2024 compared to the same periods in 2023. We also discuss herein the impact of foreign currency and inflation rates on Sempra’s results of operations.
Previous wording
▪$26 million higher CPUC base operating margin, net of operating expenses, including higher authorized cost of capital. Sempra California recorded CPUC-authorized revenues based on 2023 authorized levels
Current wording
▪$5 million higher CPUC base operating margin, net of operating expenses, including higher authorized cost of capital. Sempra California recorded CPUC-authorized revenues based on 2023 authorized levels
Previous wording
▪$14 million higher CPUC base operating margin, net of operating expenses, including higher authorized cost of capital. Sempra California recorded CPUC-authorized revenues based on 2023 authorized levels
Current wording
▪$19 million higher CPUC base operating margin, net of operating expenses, including higher authorized cost of capital. Sempra California recorded CPUC-authorized revenues based on 2023 authorized levels
Previous wording
In the three months ended June 30, 2024 compared to the same period in 2023, the increase in earnings of $42 million (26%) to $202 million was primarily due to higher equity earnings from Oncor Holdings driven by:
Current wording
In the three months ended September 30, 2024 compared to the same period in 2023, the decrease in earnings of $44 million (14%) to $261 million was primarily due to lower equity earnings from Oncor Holdings driven by:
Previous wording
In the six months ended June 30, 2024 compared to the same period in 2023, the increase in earnings of $142 million to $385 million was primarily due to higher equity earnings from Oncor Holdings driven by:
Current wording
In the nine months ended September 30, 2024 compared to the same period in 2023, the increase in earnings of $98 million (18%) to $646 million was primarily due to higher equity earnings from Oncor Holdings driven by:
Previous wording
▪$315 million favorable impact from foreign currency and inflation effects on our monetary positions in Mexico, comprised of a $112 million favorable impact in 2024 compared to a $203 million unfavorable impact in 2023
Current wording
▪$31 million favorable impact from foreign currency and inflation effects on our monetary positions in Mexico, comprised of a $67 million favorable impact in 2024 compared to a $36 million favorable impact in 2023
Current wording
▪$18 million higher income tax benefit primarily from outside basis differences
Previous wording
▪$13 million from $3 million net interest income in 2024 compared to $10 million net interest expense in 2023 primarily due to higher capitalization of interest expense on projects under construction
Current wording
▪$7 million favorable impact from $4 million net interest income in 2024 compared to $3 million net interest expense in 2023 primarily due to higher capitalization of interest expense on projects under construction
Previous wording
▪$91 million from asset and supply optimization driven by unrealized losses in 2024 compared to unrealized gains in 2023 on commodity derivatives due to changes in natural gas prices
Current wording
▪$7 million from asset and supply optimization driven by lower natural gas prices, offset by unrealized gains in 2024 compared to unrealized losses in 2023 on commodity derivatives
Previous wording
▪$12 million from TdM driven by unrealized losses in 2024 compared to unrealized gains in 2023 on commodity derivatives due to changes in power and natural gas prices
Current wording
▪$7 million from TdM driven by lower unrealized gains on commodity derivatives due to changes in power and natural gas prices
Previous wording
▪$394 million from asset and supply optimization driven by unrealized losses in 2024 compared to unrealized gains in 2023 on commodity derivatives due to changes in natural gas prices and lower LNG diversion fees
Current wording
▪$401 million from asset and supply optimization driven by unrealized losses in 2024 compared to unrealized gains in 2023 on commodity derivatives due to changes in natural gas prices and lower LNG diversion fees
Previous wording
▪$62 million from the transportation business driven by lower equity earnings and revenues, including the cumulative impact of new tariffs going into effect in June 2023 for certain pipelines in Mexico and a customer’s early termination of firm transportation agreements in 2023
Current wording
▪$74 million from the transportation business driven by lower equity earnings and revenues, including the cumulative impact of new tariffs going into effect in June 2023 for certain pipelines in Mexico and a customer’s early termination of firm transportation agreements in 2023
Previous wording
▪$12 million higher O&M and lower revenues from a provision for expected credit losses on a customer’s past due receivable balance
Current wording
▪$28 million higher O&M and lower revenues from a provision for expected credit losses on a customer’s past due receivable balance
Previous wording
▪$247 million favorable impact from foreign currency and inflation effects on our monetary positions in Mexico, comprised of a $153 million favorable impact in 2024 compared to a $94 million unfavorable impact in 2023
Current wording
▪$346 million favorable impact from foreign currency and inflation effects on our monetary positions in Mexico, comprised of a $179 million favorable impact in 2024 compared to a $167 million unfavorable impact in 2023
Previous wording
▪$54 million from $6 million net interest income in 2024 compared to $48 million net interest expense in 2023 primarily due to higher capitalization of interest expense on projects under construction and $17 million net unrealized losses in 2023 on a contingent interest rate swap related to the PA LNG Phase 1 project
Current wording
▪$61 million favorable impact from $10 million net interest income in 2024 compared to $51 million net interest expense in 2023 primarily due to higher capitalization of interest expense on projects under construction and $17 million net unrealized losses in 2023 on a contingent interest rate swap related to the PA LNG Phase 1 project
Previous wording
In the six months ended June 30, 2024 compared to the same period in 2023, the increase in losses of $40 million (26%) to $191 million was primarily due to:
Current wording
In the three months ended September 30, 2024 compared to the same period in 2023, the increase in losses of $3 million (3%) to $100 million was primarily due to:
Previous wording
In the three months ended June 30, 2024 compared to the same period in 2023, the increase in earnings of $83 million (40%) to $291 million was primarily due to:
Current wording
In the nine months ended September 30, 2024 compared to the same period in 2023, the increase in losses of $43 million (17%) to $291 million was primarily due to:
Previous wording
In the three months ended June 30, 2024 compared to the same period in 2023, Sempra’s natural gas revenues decreased by $166 million (10%) to $1.5 billion driven by Sempra California, which included:
Current wording
In the three months ended September 30, 2024 compared to the same period in 2023, Sempra’s natural gas revenues decreased by $293 million (20%) to $1.2 billion driven by Sempra California, which included:
Current wording
▪$15 million higher CPUC-authorized revenues, including higher authorized cost of capital
Previous wording
In the six months ended June 30, 2024 compared to the same period in 2023, Sempra’s natural gas revenues decreased by $2.5 billion (41%) to $3.6 billion driven by Sempra California, which included:
Current wording
In the nine months ended September 30, 2024 compared to the same period in 2023, Sempra’s natural gas revenues decreased by $2.8 billion (37%) to $4.8 billion driven by Sempra California, which included:
Previous wording
▪$2.3 billion decrease in cost of natural gas sold, which we discuss below
Current wording
▪$2.5 billion decrease in cost of natural gas sold, which we discuss below
Previous wording
In the three months ended June 30, 2024 compared to the same period in 2023, Sempra’s electric revenues increased by $90 million (9%) remaining at $1.1 billion driven by Sempra California, which included:
Current wording
In the three months ended September 30, 2024 compared to the same period in 2023, Sempra’s electric revenues decreased by $181 million (14%) to $1.1 billion driven by Sempra California, which included:
Current wording
▪$227 million lower purchased power primarily due to change in excess capacity sales
Current wording
▪$34 million lower purchased power from the California ISO due to lower market prices
Previous wording
In the six months ended June 30, 2024 compared to the same period in 2023, Sempra’s electric revenues increased by $119 million (6%) to $2.2 billion driven by Sempra California, which included:
Current wording
In the nine months ended September 30, 2024 compared to the same period in 2023, Sempra’s electric revenues decreased by $62 million (2%) remaining at $3.3 billion driven by Sempra California, which included:
Previous wording
▪$36 million higher CPUC-authorized revenues attributable to higher authorized cost of capital
Previous wording
▪$77 million realized gains in 2023 on derivative contracts for fixed-price natural gas, which are entered into to hedge the cost of electric fuel
Current wording
▪$86 million from realized losses in 2024 compared to realized gains in 2023 on derivative contracts for fixed-price natural gas, which are entered into to hedge the cost of electric fuel
Previous wording
In the three months ended June 30, 2024 compared to the same period in 2023, Sempra’s revenues from energy-related businesses decreased by $248 million (40%) to $373 million primarily due to:
Current wording
In the three months ended September 30, 2024 compared to the same period in 2023, Sempra’s revenues from energy-related businesses decreased by $84 million (14%) to $512 million primarily due to:
Previous wording
▪$246 million from asset and supply optimization from contracts to sell natural gas and LNG to third parties, including:
Current wording
▪$40 million from asset and supply optimization from contracts to sell natural gas and LNG to third parties, including:
Previous wording
◦$98 million primarily from lower diversion fees due to lower natural gas prices
Current wording
◦$10 million from lower diversion fees due to lower natural gas prices
Previous wording
▪$10 million lower revenues associated with refundable programs, which are fully offset in O&M
Previous wording
In the three months ended June 30, 2024 compared to the same period in 2023, Sempra’s cost of sales from energy-related businesses decreased by $27 million (33%) to $54 million primarily due to:
Current wording
In the three months ended September 30, 2024 compared to the same period in 2023, Sempra’s cost of sales from energy-related businesses decreased by $29 million (18%) to $134 million primarily due to:
Previous wording
▪$42 million driven by lower natural gas prices related to asset and supply optimization
Current wording
▪$9 million driven by lower natural gas purchases offset by higher LNG purchases related to asset and supply optimization
Showing the first 40 of 141 pairs. Open the source sections for the rest.
Rearranged current paragraphs (14)
Current report — wording carried from elsewhere
◦$108 million from lower diversion fees due to lower natural gas prices
Current report — wording carried from elsewhere
◦$10 million from a provision for expected credit losses on a customer’s past due receivable balance
Current report — wording carried from elsewhere
▪$12 million higher net interest income on regulatory balancing accounts at Sempra California
Current report — wording carried from elsewhere
▪$9 million higher AFUDC equity at Sempra California
Current report — wording carried from elsewhere
▪$6 million higher revenues from transmission operations
Current report — wording carried from elsewhere
▪$227 million lower purchased power primarily due to change in excess capacity sales
Current report — wording carried from elsewhere
▪$34 million lower purchased power from the California ISO due to lower market prices
Current report — wording carried from elsewhere
▪$36 million higher revenues from transmission operations
Current report — wording carried from elsewhere
▪$9 million higher net interest expense
Current report — wording carried from elsewhere
▪$9 million higher net regulatory interest income
Current report — wording carried from elsewhere
▪$17 million higher revenues from incremental and balanced capital projects, including higher authorized cost of capital
Current report — wording carried from elsewhere
▪$2.2 billion decrease in cost of natural gas sold, which we discuss below
Current report — wording carried from elsewhere
▪$1.9 billion lower average natural gas prices
Current report — wording carried from elsewhere
▪$88 million lower expenses associated with refundable programs, which costs are recovered in revenue
Rearranged previous paragraphs (26)
Previous report — wording carried elsewhere
▪$48 million from the transportation business driven by lower equity earnings and revenues, including the cumulative impact of new tariffs going into effect in June 2023 for certain pipelines in Mexico
Previous report — wording carried elsewhere
▪$24 million higher O&M and lower revenues from a provision for expected credit losses on a customer’s past due receivable balance
Previous report — wording carried elsewhere
▪$17 million from higher net interest expense
Previous report — wording carried elsewhere
▪$5 million related to settlement charges from our non-qualified pension plan in 2024
Previous report — wording carried elsewhere
▪$33 million lower regulatory revenues in 2024 from adopting a change in tax accounting method for gas repairs expenditures, which are offset in income tax benefit (expense)
Previous report — wording carried elsewhere
▪$7 million higher revenues associated with refundable programs, which are fully offset in O&M
Previous report — wording carried elsewhere
◦$25 million from a provision for expected credit losses on a customer’s past due receivable balance
Previous report — wording carried elsewhere
•new base rates implemented in May 2023
Previous report — wording carried elsewhere
▪$47 million at TAG Norte from the cumulative impact of new tariffs going into effect in June 2023 offset by income tax benefit in 2024 compared to an income tax expense in 2023
Previous report — wording carried elsewhere
•new base rates implemented in May 2023
Previous report — wording carried elsewhere
▪$8 million higher electric transmission margin
Previous report — wording carried elsewhere
▪$7 million higher net interest expense
Previous report — wording carried elsewhere
▪$18 million higher revenues from transmission operations
Previous report — wording carried elsewhere
▪$88 million lower ITCs from standalone energy storage projects, which are offset in income tax expense
Previous report — wording carried elsewhere
▪$12 million higher revenues from incremental and balanced capital projects, including higher authorized cost of capital
Previous report — wording carried elsewhere
▪$12 million higher revenues from incremental and balanced capital projects, including higher authorized cost of capital
Previous report — wording carried elsewhere
▪$51 million lower volumes driven by weather
Previous report — wording carried elsewhere
▪$33 million lower expenses associated with refundable programs, which costs are recovered in revenue
Previous report — wording carried elsewhere
▪$4 million higher net interest expense
Previous report — wording carried elsewhere
▪$30 million higher CPUC base operating margin, net of higher operating expenses in 2023, including higher authorized cost of capital. SoCalGas recorded CPUC-authorized revenues based on 2023 authorized levels
Previous report — wording carried elsewhere
▪$26 million lower regulatory revenues in 2023 from the recognition of previously unrecognized income tax benefits pertaining to gas repairs expenditures, which are offset in income tax (expense) benefit
Previous report — wording carried elsewhere
▪$2.1 billion decrease in cost of natural gas sold, which we discuss below
Previous report — wording carried elsewhere
▪$84 million lower regulatory revenues in 2024 from adopting a change in tax accounting method for gas repairs expenditures, which are offset in income tax (expense) benefit
Previous report — wording carried elsewhere
▪$26 million lower regulatory revenues in 2023 from the recognition of previously unrecognized income tax benefits pertaining to gas repairs expenditures, which are offset in income tax (expense) benefit
Previous report — wording carried elsewhere
▪$1.7 billion lower average natural gas prices
Previous report — wording carried elsewhere
▪$8 million higher net interest income on regulatory balancing accounts