SAN DIEGO GAS & ELECTRIC CO
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
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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.
Jun 30, 2025 · Filed Aug 7, 2025
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 2025-03-31; filed 2025-05-08.
0001032208-25-000027
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 2025-06-30; filed 2025-08-07.
0001032208-25-000048
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 356 previous paragraphs and 513 current paragraphs.
199 unchanged; 110 reworded; 176 added; 41 removed; 6 previous and 28 current paragraphs rearranged.
Tables are not compared: 17 previous and 17 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 (176)
Current report
In the three months ended June 30, 2025 compared to the same period in 2024, the decrease in earnings of $57 million (18%) was primarily due to:
Current report
In the six months ended June 30, 2025 compared to the same period in 2024, the increase in earnings of $85 million (9%) was primarily due to:
Current report
▪$72 million higher CPUC base operating margin, net of operating expenses including higher depreciation and $22 million lower authorized cost of capital. In the first three quarters of 2024, Sempra California recorded CPUC-authorized base revenues based on 2023 authorized levels
Current report
▪$42 million higher income tax benefits primarily from flow-through items, including gas repairs tax benefits, which in the first three quarters of 2024 were recorded as a regulatory liability that was released in the fourth quarter of 2024 as a result of the 2024 GRC FD
Current report
In the three months ended June 30, 2025 compared to the same period in 2024, the increase in earnings of $6 million (3%) was primarily due to higher equity earnings from Oncor Holdings driven by:
Current report
In the three months ended June 30, 2025 compared to the same period in 2024, the decrease in earnings of $219 million was primarily due to:
Current report
▪$26 million income tax expense in 2025 due to the recognition of a Mexican deferred tax liability on our outside basis difference in Ecogas as a result of management’s decision to hold the asset for sale
Current report
▪$46 million from asset and supply optimization driven by unrealized gains in 2025 compared to unrealized losses in 2024 on commodity derivatives due to changes in natural gas prices and higher LNG diversion fees
Current report
In the six months ended June 30, 2025 compared to the same period in 2024, the decrease in earnings of $204 million (48%) was primarily due to:
Current report
▪$26 million income tax expense in 2025 due to the recognition of a Mexican deferred tax liability on our outside basis difference in Ecogas as a result of management’s decision to hold the asset for sale
Current report
In the three months ended June 30, 2025 compared to the same period in 2024, the decrease in losses of $18 million (19%) was primarily due to:
Current report
▪$16 million higher income tax benefit from the interim period application of an annual forecasted consolidated ETR
Current report
▪$5 million related to settlement charges from our nonqualified pension plan in 2024
Current report
In the six months ended June 30, 2025 compared to the same period in 2024, the decrease in losses of $3 million (2%) was primarily due to:
Current report
▪$18 million higher income tax benefit from the interim period application of an annual forecasted consolidated ETR
Current report
▪$15 million higher net investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan
Current report
▪$5 million related to settlement charges from our nonqualified pension plan in 2024
Current report
▪$97 million lower revenues associated with refundable programs, which are fully offset in O&M
Current report
▪$70 million lower revenues from incremental and balanced capital projects, including those that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD and lower authorized cost of capital
Current report
▪$7 million lower regulatory revenues, including gas repairs tax benefits, which are offset in income tax expense. Gas repairs tax benefits in the first three quarters of 2024 were recorded as a regulatory liability that was released in the fourth quarter of 2024 as a result of the 2024 GRC FD
Current report
▪$3 million lower revenues associated with impacts resulting from changes in tax laws tracked in the income tax expense memorandum account
Current report
▪$129 million higher CPUC-authorized base revenues, including certain incremental and balanced capital projects that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD offset by $8 million lower authorized cost of capital
Current report
▪$45 million increase in cost of natural gas sold, which we discuss below
Current report
In the three months ended June 30, 2025 compared to the same period in 2024, Sempra’s cost of natural gas increased by $46 million (34%) driven by Sempra California, primarily due to higher average natural gas prices.
Current report
In the six months ended June 30, 2025 compared to the same period in 2024, Sempra’s natural gas revenues increased by $229 million (6%) driven by Sempra California, which included:
Current report
▪$308 million higher CPUC-authorized base revenues, including certain incremental and balanced capital projects that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD offset by $21 million lower authorized cost of capital
Current report
▪$66 million higher revenues associated with refundable programs, which are fully offset in O&M
Current report
▪$141 million lower revenues from incremental and balanced capital projects, including those that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD and lower authorized cost of capital
Current report
▪$14 million decrease in cost of natural gas sold, which we discuss below
Current report
▪$11 million lower revenues associated with impacts resulting from changes in tax laws tracked in the income tax expense memorandum account
Current report
▪$69 million decrease in cost of electric fuel and purchased power, which we discuss below
Current report
▪$28 million lower revenues associated with refundable programs, which are fully offset in O&M
Current report
▪$23 million lower regulatory revenues from higher ITCs from standalone energy storage projects, which are offset in income tax (expense) benefit
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Removed paragraphs (41)
Previous report
In the three months ended March 31, 2025 compared to the same period in 2024, the increase in earnings of $142 million (24%) was primarily due to:
Previous report
▪$62 million higher income tax benefits primarily from flow-through items, including gas repairs tax benefits, which in the first three quarters of 2024 were recorded as a regulatory liability that was released in the fourth quarter of 2024 as a result of the 2024 GRC FD
Previous report
▪$179 million higher CPUC-authorized revenues, including certain incremental and balanced capital projects that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD offset by $13 million lower authorized cost of capital
Previous report
▪$163 million higher revenues associated with refundable programs, which are fully offset in O&M
Previous report
▪$52 million higher regulatory revenues, including gas repairs tax benefits, which are offset in income tax expense. Gas repairs tax benefits in the first three quarters of 2024 were recorded as a regulatory liability that was released in the fourth quarter of 2024 as a result of the 2024 GRC FD
Previous report
▪$71 million lower revenues from incremental and balanced capital projects, including those that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD and lower authorized cost of capital
Previous report
▪$59 million decrease in cost of natural gas sold, which we discuss below
Previous report
In the three months ended March 31, 2025 compared to the same period in 2024, Sempra’s cost of natural gas decreased by $61 million (11%) driven by Sempra California, which included:
Previous report
▪$45 million higher CPUC-authorized revenues, including certain incremental and balanced capital projects that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD offset by $5 million lower authorized cost of capital
Previous report
▪$34 million decrease in cost of electric fuel and purchased power, which we discuss below
Previous report
▪$20 million lower purchased power from the California ISO due to lower market prices
Previous report
▪$6 million at TdM driven by lower volumes, including from a scheduled maintenance outage in March 2025
Previous report
▪$63 million from $10 million income tax benefit in 2025 compared to $53 million income tax expense in 2024 from foreign currency and inflation effects on our monetary positions in Mexico
Previous report
▪higher income tax benefit in 2025 from higher ITCs from standalone energy storage projects
Previous report
In the three months ended March 31, 2025 compared to the same period in 2024, the increase in earnings of $58 million (26%) was primarily due to:
Previous report
▪$50 million higher CPUC base operating margin, net of operating expenses and $5 million lower authorized cost of capital. In the first three quarters of 2024, SDG&E recorded CPUC-authorized base revenues based on 2023 authorized levels
Previous report
▪$45 million higher CPUC-authorized revenues, including certain incremental and balanced capital projects that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD offset by $5 million lower authorized cost of capital
Previous report
▪$34 million decrease in cost of electric fuel and purchased power, which we discuss below
Previous report
In the three months ended March 31, 2025 compared to the same period in 2024, SDG&E’s cost of electric fuel and purchased power decreased by $34 million (32%) to $73 million primarily due to:
Previous report
▪$20 million lower purchased power from the California ISO due to lower market prices
Previous report
▪$15 million decrease in cost of natural gas sold, which we discuss below
Previous report
▪$12 million lower revenues from incremental and balanced capital projects, including those that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD and lower authorized cost of capital
Previous report
▪higher income tax benefit in 2025 from higher ITCs from standalone energy storage projects
Previous report
In the three months ended March 31, 2025 compared to the same period in 2024, the increase in earnings of $84 million (23%) was primarily due to:
Previous report
▪$54 million higher income tax benefits primarily from flow-through items, including gas repairs tax benefits, which in the first three quarters of 2024 were recorded as a regulatory liability that was released in the fourth quarter of 2024 as a result of the 2024 GRC FD
Previous report
▪$147 million higher CPUC-authorized revenues, including certain incremental and balanced capital projects that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD offset by $11 million lower authorized cost of capital
Previous report
▪$146 million higher revenues associated with refundable programs, which are fully offset in O&M
Previous report
▪$59 million lower revenues from incremental and balanced capital projects, including those that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD and lower authorized cost of capital
Previous report
▪$50 million decrease in cost of natural gas sold, which we discuss below
Previous report
In the three months ended March 31, 2025 compared to the same period in 2024, SoCalGas’ cost of natural gas decreased by $50 million (11%) to $415 million primarily due to:
Previous report
In April 2025, the CPUC issued a proposed decision that authorizes partial recovery of costs recorded in SoCalGas’ Catastrophic Event Memorandum Account and COVID-19 Pandemic Protections Memorandum Account. The decision authorizes the recovery of $19 million out of the requested $58 million. SoCalGas will continue to pursue recovery of all the costs and will be filing comments in May 2025. A final decision may be issued in June 2025.
Previous report
SoCalGas has mechanisms available for potential recovery of costs associated with declared disasters, such as the LA Fires, including through insurance and customer rates. Failure by SoCalGas to timely recover all or a substantial portion of its costs related to the LA Fires or any conclusion that such recovery is no longer probable could have a material adverse effect on SoCalGas’ and Sempra’s results of operations, financial condition, cash flows and/or prospects.
Previous report
Oncor is currently contemplating filing a base rate review in the second quarter of 2025 using a historical test year of 2024.
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Reworded paragraphs (110)
Previous wording
We discuss herein Sempra’s results of operations and significant changes in earnings, revenues and costs by segment, as well as Parent and other, for the three months ended March 31, 2025 compared to the same period in 2024. 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, revenues and costs by segment, as well as Parent and other, for the three months (Q2) and six months (YTD) ended June 30, 2025 compared to the same periods in 2024. We also discuss herein the impact of foreign currency and inflation rates on Sempra’s results of operations.
Previous wording
Due to the delay in the issuance of the CPUC’s final decision in the SDG&E and SoCalGas 2024 GRC, Sempra California recorded revenues in the first three quarters of 2024 based on levels authorized for 2023 under the 2019 GRC. In December 2024, the CPUC approved an FD in the 2024 GRC, effective retroactive to January 1, 2024, for which Sempra California recorded the retroactive impacts in the fourth quarter of 2024. Sempra California’s authorized base revenues in the first quarter of 2025 are based on the revenues authorized for the 2024 test year plus the amount authorized for attrition for 2025. We provide additional information on the 2024 GRC FD in Note 4 of the Notes to Condensed Consolidated Financial Statements in this report and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.
Current wording
Due to the delay in the issuance of the CPUC’s FD in the SDG&E and SoCalGas 2024 GRC, Sempra California recorded revenues in the first three quarters of 2024 based on levels authorized for 2023 under the 2019 GRC. In December 2024, the CPUC approved an FD in the 2024 GRC, effective retroactive to January 1, 2024, for which Sempra California recorded the retroactive impacts in the fourth quarter of 2024. Sempra California’s authorized base revenues in the first half of 2025 are based on the revenues authorized for the 2024 test year plus the amount authorized for attrition for 2025. We provide additional information on the 2024 GRC FD in Note 4 of the Notes to Condensed Consolidated Financial Statements in this report and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.
Previous wording
▪$6 million at TAG Norte from lower income tax expense primarily from foreign currency and inflation effects
Current wording
▪$20 million lower income tax benefits primarily from flow-through items, including gas repairs tax benefits, which in the first three quarters of 2024 were recorded as a regulatory liability that was released in the fourth quarter of 2024 as a result of the 2024 GRC FD
Previous wording
In the three months ended March 31, 2025 compared to the same period in 2024, the increase in losses of $15 million (16%) was primarily due to $17 million higher net interest expense.
Previous wording
▪$88 million higher CPUC base operating margin, net of operating expenses and $13 million lower authorized cost of capital. In the first three quarters of 2024, Sempra California recorded CPUC-authorized base revenues based on 2023 authorized levels
Current wording
▪$16 million lower CPUC base operating margin, net of operating expenses including higher depreciation and $9 million lower authorized cost of capital. In the first three quarters of 2024, Sempra California recorded CPUC-authorized base revenues based on 2023 authorized levels
Previous wording
▪$32 million higher CPUC-authorized revenues, including certain incremental and balanced capital projects that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD offset by $2 million lower authorized cost of capital
Previous wording
In the three months ended March 31, 2025 compared to the same period in 2024, the decrease in earnings of $37 million (20%) was primarily due to lower equity earnings from Oncor Holdings driven by:
Current wording
In the six months ended June 30, 2025 compared to the same period in 2024, the decrease in earnings of $31 million (8%) was primarily due to lower equity earnings from Oncor Holdings driven by:
Previous wording
▪$49 million favorable impact from foreign currency and inflation effects on our monetary positions in Mexico, comprised of an $8 million favorable impact in 2025 compared to a $41 million unfavorable impact in 2024
Current wording
▪$251 million unfavorable impact from foreign currency and inflation effects on our monetary positions in Mexico, comprised of an $98 million unfavorable impact in 2025 compared to a $153 million favorable impact in 2024
Previous wording
▪$12 million from TdM driven by lower unrealized gains on commodity derivatives due to changes in power prices and lower volumes, including from a scheduled maintenance outage in March 2025
Current wording
▪$15 million from TdM driven by unrealized losses in 2025 compared to unrealized gains in 2024 on commodity derivatives due to changes in power prices
Previous wording
▪$9 million in interest expense from unrealized losses in 2025 on interest rate swaps related to the PA LNG Phase 1 project
Current wording
▪$8 million interest expense from unrealized losses in 2025 on interest rate swaps related to the PA LNG Phase 1 project
Previous wording
▪$50 million from asset and supply optimization driven by lower optimization of transport and storage contracts and higher unrealized losses on commodity derivatives due to changes in natural gas prices
Current wording
▪$4 million from asset and supply optimization driven by lower optimization of transport and storage contracts offset by unrealized gains in 2025 compared to unrealized losses in 2024 on commodity derivatives due to changes in natural gas prices and higher LNG diversion fees
Previous wording
▪$20 million lower O&M in 2025 from lower provisions for expected credit losses
Current wording
▪$16 million lower O&M in 2025 from lower provisions for expected credit losses
Previous wording
▪$10 million in interest income from an increase in the fair value of the Support Agreement
Current wording
▪$10 million interest income from a change in the fair value of the Support Agreement
Previous wording
▪$7 million higher regulatory revenues, including gas repairs tax benefits, which are offset in income tax expense. Gas repairs tax benefits in the first three quarters of 2024 were recorded as a regulatory liability that was released in the fourth quarter of 2024 as a result of the 2024 GRC FD
Current wording
▪$7 million higher revenues due to the commencement of commercial operations at Topolobampo marine terminal in June 2024
Current wording
▪$15 million higher net investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan
Previous wording
In the three months ended March 31, 2025 compared to the same period in 2024, Sempra’s natural gas revenues increased by $253 million (12%) driven by Sempra California, which included:
Current wording
In the three months ended June 30, 2025 compared to the same period in 2024, Sempra’s natural gas revenues decreased by $24 million (2%) driven by Sempra California, which included:
Previous wording
In the three months ended March 31, 2025 compared to the same period in 2024, SDG&E’s cost of natural gas decreased by $15 million (15%) to $87 million primarily due to lower average natural gas prices.
Current wording
In the six months ended June 30, 2025 compared to the same period in 2024, Sempra’s cost of natural gas decreased by $15 million (2%) driven by Sempra California, which included:
Previous wording
In the three months ended March 31, 2025 compared to the same period in 2024, Sempra’s electric revenues increased by $3 million driven by Sempra California, which included:
Current wording
In the three months ended June 30, 2025 compared to the same period in 2024, Sempra’s electric revenues decreased by $113 million (10%) driven by Sempra California, which included:
Previous wording
In the three months ended March 31, 2025 compared to the same period in 2024, Sempra’s cost of electric fuel and purchased power decreased by $37 million (42%) driven by Sempra California, which included:
Current wording
In the three months ended June 30, 2025 compared to the same period in 2024, Sempra’s cost of electric fuel and purchased power decreased by $65 million (42%) driven by Sempra California, which included:
Previous wording
▪$44 million lower regulatory revenues from higher ITCs from standalone energy storage projects, which are offset in income tax expense
Current wording
▪$44 million lower purchased power primarily due to change in excess capacity sales and lower renewable energy costs
Previous wording
▪$9 million higher revenues from incremental and balanced capital projects offset by certain projects that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD and lower authorized cost of capital
Current wording
▪$14 million higher revenues from incremental and balanced capital projects offset by certain projects that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD and lower authorized cost of capital
Previous wording
▪$15 million lower sales to the California ISO due to lower market prices
Current wording
▪$15 million lower sales to the California ISO due to decreased utility-owned generator availability
Previous wording
In the three months ended March 31, 2025 compared to the same period in 2024, Sempra’s revenues from energy-related businesses decreased by $94 million (20%) primarily due to:
Current wording
In the three months ended June 30, 2025 compared to the same period in 2024, Sempra’s revenues from energy-related businesses increased by $126 million (34%) primarily due to:
Previous wording
▪$92 million from asset and supply optimization from contracts to sell natural gas and LNG to third parties, including:
Current wording
▪$104 million from asset and supply optimization from contracts to sell natural gas and LNG to third parties, including:
Previous wording
◦$45 million higher unrealized losses on commodity derivatives
Previous wording
◦$45 million from lower optimization of transport and storage contracts primarily due to changes in natural gas prices
Current wording
◦$38 million from lower optimization of transport and storage contracts primarily due to changes in natural gas prices
Previous wording
▪$16 million from TdM mainly due to lower volumes, including from a scheduled maintenance outage in March 2025
Previous wording
In the three months ended March 31, 2025 compared to the same period in 2024, Sempra’s cost of sales from energy-related businesses increased by $10 million (9%) primarily due to:
Current wording
In the six months ended June 30, 2025 compared to the same period in 2024, Sempra’s cost of sales from energy-related businesses increased by $41 million (25%) primarily due to:
Previous wording
▪$15 million driven by higher natural gas purchases related to asset and supply optimization
Current wording
▪$43 million driven by higher natural gas purchases related to asset and supply optimization
Previous wording
In the three months ended March 31, 2025 compared to the same period in 2024, Sempra’s O&M increased by $131 million (11%) primarily due to:
Current wording
In the three months ended June 30, 2025 compared to the same period in 2024, Sempra’s O&M decreased by $94 million (7%) primarily due to:
Previous wording
◦$180 million higher expenses associated with refundable programs, which costs are recovered in revenue
Current wording
◦$55 million higher expenses associated with refundable programs, which costs are recovered in revenue
Previous wording
▪$25 million decrease at Parent and other primarily due to a $19 million change in deferred compensation from a $9 million benefit in 2025 compared to $10 million expense in 2024
Current wording
▪$16 million decrease at Parent and other primarily due to lower deferred compensation expense
Previous wording
◦$7 million higher development costs and certain non-capitalized expenses from projects under construction
Current wording
◦$4 million higher development costs and certain non-capitalized expenses from projects under construction
Previous wording
In the three months ended March 31, 2025 compared to the same period in 2024, Sempra’s other income, net, decreased by $8 million (8%) to $91 million primarily due to:
Current wording
In the three months ended June 30, 2025 compared to the same period in 2024, Sempra’s other income, net, increased by $29 million to $59 million primarily due to:
Previous wording
▪$14 million lower investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan at Parent and other
Current wording
▪$20 million higher investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan at Parent and other
Previous wording
▪$4 million higher AFUDC equity primarily at Sempra Infrastructure
Current wording
▪$8 million higher AFUDC equity primarily at Sempra Infrastructure
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Rearranged current paragraphs (28)
Current report — wording carried from elsewhere
▪$9 million higher revenues driven by satisfaction of performance obligations related to customer payments received in advance from a contract modification in December 2024 on an LNG storage and regasification agreement
Current report — wording carried from elsewhere
▪$202 million unfavorable impact from foreign currency and inflation effects on our monetary positions in Mexico, comprised of an $90 million unfavorable impact in 2025 compared to a $112 million favorable impact in 2024
Current report — wording carried from elsewhere
▪$7 million higher revenues from transmission operations
Current report — wording carried from elsewhere
▪$14 million higher revenues in 2025 due to the commencement of commercial operations at the Topolobampo marine terminal in June 2024
Current report — wording carried from elsewhere
▪$12 million from asset and supply optimization from contracts to sell natural gas and LNG to third parties, including:
Current report — wording carried from elsewhere
▪$106 million decrease at Sempra California due to:
Current report — wording carried from elsewhere
▪$12 million higher AFUDC equity primarily at Sempra Infrastructure
Current report — wording carried from elsewhere
▪$6 million higher investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan at Parent and other
Current report — wording carried from elsewhere
▪$34 million at Parent and other from higher debt balances from debt issuances
Current report — wording carried from elsewhere
▪$39 million at Sempra California from higher debt balances from debt issuances
Current report — wording carried from elsewhere
◦overall higher revenues primarily attributable to:
Current report — wording carried from elsewhere
•rate updates to reflect increases in invested capital
Current report — wording carried from elsewhere
◦higher interest expense and depreciation expense associated with increases in invested capital
Current report — wording carried from elsewhere
▪$30 million at Oncor Holdings driven by:
Current report — wording carried from elsewhere
◦higher interest expense and depreciation expense associated with increases in invested capital
Current report — wording carried from elsewhere
◦overall higher revenues primarily attributable to:
Current report — wording carried from elsewhere
•rate updates to reflect increases in invested capital
Current report — wording carried from elsewhere
▪$17 million at Cameron LNG JV primarily from higher maintenance revenues and lower interest expense
Current report — wording carried from elsewhere
In the three months ended June 30, 2025 compared to the same period in 2024, Sempra’s earnings attributable to NCI decreased by $100 million to $46 million primarily due to a decrease in SI Partners subsidiaries’ net income driven by foreign currency and inflation effects on our monetary positions in Mexico.
Current report — wording carried from elsewhere
▪$7 million higher income tax benefits primarily from flow-through items, including gas repairs tax benefits, which in the first three quarters of 2024 were recorded as a regulatory liability that was released in the fourth quarter of 2024 as a result of the 2024 GRC FD
Current report — wording carried from elsewhere
▪$23 million lower regulatory revenues from higher ITCs from standalone energy storage projects, which are offset in income tax expense
Current report — wording carried from elsewhere
▪$7 million higher revenues from transmission operations
Current report — wording carried from elsewhere
▪$8 million higher regulatory revenues, including gas repairs tax benefits, which are offset in income tax expense. Gas repairs tax benefits in the first three quarters of 2024 were recorded as a regulatory liability that was released in the fourth quarter of 2024 as a result of the 2024 GRC FD
Current report — wording carried from elsewhere
▪$14 million lower revenues from incremental and balanced capital projects, including those that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD and lower authorized cost of capital
Current report — wording carried from elsewhere
▪$8 million lower regulatory revenues, including gas repairs tax benefits, which are offset in income tax expense. Gas repairs tax benefits in the first three quarters of 2024 were recorded as a regulatory liability that was released in the fourth quarter of 2024 as a result of the 2024 GRC FD
Current report — wording carried from elsewhere
▪$47 million higher expenses associated with refundable programs, which costs are recovered in revenue
Current report — wording carried from elsewhere
If any California electric IOUs’ assets are determined to be a cause of fires, including fires of the size and scope of the LA Fires, payments of claims associated with those events could have a material adverse effect on the Wildfire Fund, including potentially exhausting the fund, and on SDG&E’s and Sempra’s financial condition and results of operations up to the carrying value of our Wildfire Fund asset, with additional potential material exposure if SDG&E’s equipment is determined to be a cause of a fire. Moreover, in the event that the Wildfire Fund is materially diminished, exhausted or terminated, SDG&E would lose the protection afforded by the Wildfire Fund, and as a consequence, a fire in SDG&E’s service territory could have a material adverse effect on SDG&E’s and Sempra’s results of operations, financial condition, cash flows and/or prospects.
Current report — wording carried from elsewhere
In July 2024, Sempra Infrastructure entered into an $8.2 billion EPC contract with Bechtel for the proposed PA LNG Phase 2 project. The EPC contract contemplates the construction of two liquefaction trains capable of producing approximately 13 Mtpa, an additional LNG storage tank and marine berth and associated loading facilities and related infrastructure necessary to provide liquefaction services. In June 2025, we amended and restated the EPC contract to reflect an estimated price of approximately $8.7 billion, subject to adjustments. The price is subject to increase if certain limited notices to proceed and the full notice to proceed are not issued, each by specified dates. We have no obligation to move forward on the EPC contract, and we may release Bechtel to perform portions of the work pursuant to limited notices to proceed.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
▪$6 million higher net interest expense
Previous report — wording carried elsewhere
▪$6 million higher revenues from transmission operations
Previous report — wording carried elsewhere
▪$44 million lower regulatory revenues from higher ITCs from standalone energy storage projects, which are offset in income tax expense
Previous report — wording carried elsewhere
▪$26 million lower purchased power primarily due to change in excess capacity sales
Previous report — wording carried elsewhere
▪$34 million higher expenses associated with refundable programs, which costs are recovered in revenue
Previous report — wording carried elsewhere
▪higher income tax benefits from flow-through items