SAN DIEGO GAS & ELECTRIC CO

There are a number of risks you should understand before making an investment decision in our securities or the securities of our businesses. This summary is not intended to be complete and should only be read together with the information set forth in “Part I – Item 1A. Risk Factors” in this report. If any of these risks occur, Sempra’s and its businesses’ results of operations, financial condition, cash flows and/or prospects could be materially adversely affected, and the trading price of Sempra’s securities and those of its businesses could decline. These risks include the following:

Risks Related to Sempra

▪Sempra’s ability to pay dividends and meet its obligations largely depends on the performance of its subsidiaries and entities accounted for as equity method investments

▪Successfully executing our five-year capital expenditures plan is subject to risks

▪The economic interest, voting rights and market value of our outstanding common stock may be adversely affected by any additional equity securities we may issue

Risks Related to All Sempra Businesses

▪Our infrastructure and its supporting systems subject us to risks

▪We face risks related to severe weather, natural disasters, physical attacks and other similar events

▪We face evolving cybersecurity, technology resiliency and data security and governance risks, including with respect to increasing use of artificial intelligence

▪Our debt service obligations expose us to risks

▪The availability and cost of financing could be negatively affected by market and economic conditions and other factors

▪Credit rating agencies may downgrade our credit ratings or place them on negative outlook, and our efforts to maintain these ratings could require additional equity securities issuances by Sempra or sales of equity interests in subsidiaries or projects in development

▪We face risks related to the evolving regulatory environment, including failures or delays in obtaining and maintaining franchises and other required approvals and potential negative impacts of our legislative and regulatory advocacy efforts

▪We face risks related to environmental and climate change regulation and the costs of the energy transition

▪We are subject to complex tax and accounting requirements that expose us to risks

Risks Related to Sempra California

▪Wildfires in California pose risks to Sempra, SDG&E and SoCalGas

▪The electricity industry is undergoing significant change

▪Natural gas continues to be the subject of political and public debate, including a desire by some to reduce or eliminate reliance on natural gas as an energy source

▪SDG&E and SoCalGas are subject to extensive regulation

Risks Related to Sempra Texas Utilities

▪Ring-fencing measures, governance mechanisms and commitments limit our ability to influence the management, policies and operations of Oncor

▪Changes in the regulation of Oncor or the regulation or operation of the electric utility industry and/or ERCOT market could negatively affect Oncor

▪Oncor’s capital expenditures plan may not be executed as planned or achieve its business objectives

▪Oncor’s capital expenditures plan will result in significant liquidity needs that may necessitate additional investments

Risks Related to Sempra Infrastructure

▪Project development activities may not be successful, projects under construction may not be completed on schedule or within budget, and completed projects may not operate at expected levels or generate expected earnings or cash flows

▪We may not be able to secure, maintain, extend or replace long-term supply, sales or capacity agreements

▪Our international businesses and operations expose us to increased legal, regulatory, tax, economic, geopolitical, credit and management oversight risks and challenges

Risks Related to Planned Sales of Certain Assets and Businesses

▪We may be unable to complete or realize the anticipated benefits from our planned sales of certain of our assets and businesses as part of our capital recycling program

PART I.