SAN DIEGO GAS & ELECTRIC CO
For the period ended Mar 31, 2026. Filed May 7, 2026.
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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.
Mar 31, 2026 · Filed May 7, 2026
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 2025-09-30; filed 2025-11-05.
0001032208-25-000065
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 2026-03-31; filed 2026-05-07.
0001032208-26-000030
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 565 previous paragraphs and 363 current paragraphs.
125 unchanged; 126 reworded; 102 added; 295 removed; 19 previous and 10 current paragraphs rearranged.
Tables are not compared: 18 previous and 18 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 (102)
Current report
▪$34 million lower income tax benefits primarily from flow-through items
Current report
▪$38 million higher CPUC base operating margin, net of operating expenses, including $43 million recognition of regulatory revenue reflecting returns on approved WMP capital projects resulting from the 2024 GRC Track 2 FD
Current report
In the three months ended March 31, 2026 compared to the same period in 2025, the increase in earnings of $116 million was primarily due to:
Current report
▪$36 million lower depreciation expense as a result of classifying SI Partners and Ecogas as held for sale in September 2025 and June 2025, respectively
Current report
▪$35 million net income tax benefit in 2026 as a result of classifying SI Partners and Ecogas as held for sale, comprised of the following:
Current report
▪$9 million from revenues in 2025 driven by a contract modification in December 2024 on an LNG storage and regasification agreement that ended in December 2025
Current report
In the three months ended March 31, 2026 compared to the same period in 2025, the increase in losses of $6 million (5%) was primarily due to:
Current report
▪$164 million lower regulatory revenues associated with refundable programs, which are fully offset in O&M
Current report
▪$155 million decrease in cost of natural gas sold, which we discuss below
Current report
▪$29 million lower regulatory revenues associated with the acceleration of self-developed software deductions, which are offset in income tax expense
Current report
▪$9 million lower regulatory revenues primarily from higher gas repairs tax benefits
Current report
In the three months ended March 31, 2026 compared to the same period in 2025, Sempra’s cost of natural gas decreased by $158 million (32%) driven by Sempra California, which included:
Current report
▪$99 million higher revenues from incremental and balanced capital projects, including $59 million recognition of regulatory revenue reflecting returns on approved WMP capital projects resulting from the 2024 GRC Track 2 FD
Current report
▪$33 million higher regulatory revenues from lower ITCs from standalone energy storage projects, which are offset in income tax expense
Current report
▪$21 million increase in cost of electric fuel and purchased power, which we discuss below
Current report
In the three months ended March 31, 2026 compared to the same period in 2025, Sempra’s cost of electric fuel and purchased power increased by $29 million driven by Sempra California, which included:
Current report
▪$42 million lower sales to the California ISO due to lower market prices
Current report
▪$5 million higher purchased power primarily due to tolling agreements offset by lower utility-owned generation costs
Current report
▪$26 million lower purchased power from the California ISO due to lower market prices
Current report
▪$19 million revenues in 2025 driven by a contract modification in December 2024 on an LNG storage and regasification agreement that ended in December 2025
Current report
◦$14 million related to 2025 expected credit losses on a credit support agreement with a third-party financial institution and associated transaction fees
Current report
▪$11 million increase at Parent and other due to a $16 million change in deferred compensation from $7 million expense in 2026 compared to $9 million benefit in 2025
Current report
In the three months ended March 31, 2026 compared to the same period in 2025, Sempra’s depreciation and amortization decreased by $19 million (3%) to $621 million primarily due to:
Current report
▪$73 million lower at Sempra Infrastructure as a result of classifying SI Partners and Ecogas as held for sale in September 2025 and June 2025, respectively
Current report
▪$6 million higher non-service components of net periodic benefit cost at Sempra California
Current report
◦$9 million gains in 2026 on foreign currency derivatives as a result of fluctuation of the Mexican peso
Current report
◦$5 million from a $1 million loss in 2026 compared to $4 million gains in 2025 driven by foreign currency transactional effects
Current report
In the three months ended March 31, 2026 compared to the same period in 2025, Sempra’s interest expense decreased by $51 million (12%) to $382 million due to:
Current report
◦$74 million favorable impact in interest expense from interest rate swaps related to the PA LNG Phase 1 project comprised of:
Showing the first 40 of 102 passages. Open the source sections for the rest.
Removed paragraphs (295)
Previous report
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 three quarters 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 report
In the three months ended September 30, 2025 compared to the same period in 2024, the increase in earnings of $123 million (50%) was primarily due to:
Previous report
▪$92 million higher income tax benefits primarily from flow-through items, including impacts from the election to accelerate self-developed software deductions, and from the resolution of prior year income tax items
Previous report
▪$47 million higher 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 report
In the nine months ended September 30, 2025 compared to the same period in 2024, the increase in earnings of $208 million (18%) was primarily due to:
Previous report
▪$134 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) and impacts from the election to accelerate self-developed software deductions, and from the resolution of prior year income tax items
Previous report
▪$119 million higher CPUC base operating margin, net of operating expenses including higher depreciation and $31 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 report
▪$25 million from disallowed regulatory recovery of COVID-19 costs
Previous report
In the nine months ended September 30, 2025 compared to the same period in 2024, the increase in earnings of $14 million (2%) was primarily due to higher equity earnings from Oncor Holdings driven by:
Previous report
In the three months ended September 30, 2025 compared to the same period in 2024, losses were $580 million compared to earnings of $230 million primarily due to:
Previous report
▪$705 million income tax expense in 2025 to adjust deferred income tax liabilities related to outside basis differences in our investment in SI Partners as a result of management’s decision to classify the asset as held for sale
Previous report
▪$26 million unfavorable impact related to a customer’s early termination of firm transportation agreements, including interest expense
Previous report
▪$18 million lower income tax benefit primarily from outside basis differences
Previous report
In the nine months ended September 30, 2025 compared to the same period in 2024, losses were $362 million compared to earnings of $652 million primarily due to:
Previous report
▪$731 million income tax expense in 2025 as a result of management’s decision to classify SI Partners and Ecogas as held for sale, comprised of the following:
Previous report
◦$705 million income tax expense to adjust deferred income tax liabilities related to outside basis differences in our investment in SI Partners
Previous report
▪$302 million unfavorable impact from foreign currency and inflation effects on our monetary positions in Mexico, comprised of a $122 million unfavorable impact in 2025 compared to a $180 million favorable impact in 2024
Previous report
▪$26 million unfavorable impact related to a customer’s early termination of firm transportation agreements, including interest expense
Previous report
▪$17 million from TdM driven by lower volumes and lower power prices and unrealized losses in 2025 compared to unrealized gains in 2024 on commodity derivatives due to changes in power prices
Previous report
▪$16 million lower income tax benefit primarily from outside basis differences
Previous report
▪$9 million interest expense from unrealized losses in 2025 on interest rate swaps related to the PA LNG Phase 1 project
Previous report
▪$26 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
Previous report
▪$22 million from asset and supply optimization driven by higher optimization of transport and storage contracts and higher LNG diversion fees offset by higher unrealized losses on commodity derivatives due to changes in natural gas prices
Previous report
▪$12 million higher net interest income from a change in the fair value of the Support Agreement and higher capitalization of interest expense in 2025 from projects under construction
Previous report
▪$7 million higher revenues due to the commencement of commercial operations at the Topolobampo marine terminal in June 2024
Previous report
▪$191 million net income tax benefit in 2025 from changes to a valuation allowance against certain tax credit carryforwards offset by changes in state income tax apportionment as a result of management’s decision to classify SI Partners as held for sale
Previous report
▪$22 million income tax benefit in 2025 from the impacts of the OBBBA
Previous report
▪$17 million income tax expense in 2024 from changes to a valuation allowance against certain tax credit carryforwards
Previous report
▪$13 million higher income tax expense from the interim period application of an annual forecasted consolidated ETR
Previous report
▪$11 million preferred deemed dividends related to the notice of redemption of series C preferred stock in September 2025
Previous report
▪$191 million net income tax benefit in 2025 from changes to a valuation allowance against certain tax credit carryforwards offset by changes in state income tax apportionment as a result of management’s decision to classify SI Partners as held for sale
Previous report
▪$22 million income tax benefit in 2025 from the impacts of the OBBBA
Showing the first 40 of 295 passages. Open the source sections for the rest.
Reworded paragraphs (126)
Previous wording
▪Sempra is a California-based holding company with energy infrastructure investments in North America. Our businesses invest in, develop and operate energy infrastructure, and provide electric and gas services to customers.
Current wording
▪Sempra is a holding company whose principal businesses are regulated utilities in California and Texas. Our businesses invest in and operate electric and gas utilities and other energy infrastructure that provide energy services to customers.
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 (Q3) and nine months (YTD) ended September 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.
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, in the three months ended March 31, 2026 compared to the same period in 2025. We also discuss herein the impact of foreign currency and inflation rates on Sempra’s results of operations.
Previous wording
In the three months ended September 30, 2025 compared to the same period in 2024, the decrease in losses of $81 million was primarily due to:
Current wording
In the three months ended March 31, 2026 compared to the same period in 2025, the decrease in earnings of $4 million (1%) was primarily due to:
Previous wording
▪$14 million higher revenues from higher non-service components of net periodic benefit cost, which fully offsets in other income, net
Previous wording
In the three months ended September 30, 2025 compared to the same period in 2024, the increase in earnings of $45 million (17%) was primarily due to higher equity earnings from Oncor Holdings driven by:
Current wording
In the three months ended March 31, 2026 compared to the same period in 2025, the increase in earnings of $25 million (17%) was primarily due to higher equity earnings from Oncor Holdings driven by:
Previous wording
▪$26 million from asset and supply optimization driven by higher optimization of transport and storage contracts offset by unrealized losses on commodity derivatives in 2025 compared to unrealized gains on commodity derivatives in 2024 due to changes in natural gas prices
Current wording
▪$58 million from asset and supply optimization driven by unrealized gains on commodity derivatives in 2026 compared to unrealized losses on commodity derivatives in 2025 due to changes in natural gas prices and higher optimization of transport and storage contracts
Previous wording
◦$705 million income tax expense to adjust deferred income tax liabilities primarily related to outside basis differences in our investment in SI Partners
Current wording
◦$33 million net income tax benefit to adjust deferred income tax liabilities primarily related to outside basis differences in our investment in SI Partners
Previous wording
◦$38 million income tax expense due to the recognition of a Mexican deferred tax liability on our outside basis differences in Ecogas
Current wording
◦$2 million income tax benefit to adjust a Mexican deferred income tax liability on our outside basis difference in Ecogas
Previous wording
▪$100 million unfavorable impact from foreign currency and inflation effects on our monetary positions in Mexico, comprised of a $32 million unfavorable impact in 2025 compared to a $68 million favorable impact in 2024
Current wording
▪$12 million favorable impact from foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated derivatives, comprised of a $19 million favorable impact in 2026 compared to a $7 million favorable impact in 2025
Previous wording
▪$10 million higher O&M in 2025 from higher provisions for expected credit losses
Current wording
▪$11 million higher O&M from changes in provisions for expected credit losses
Previous wording
▪$10 million lower net investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan
Current wording
▪$14 million unfavorable impact from $4 million net investment losses in 2026 compared to $10 million net investment gains in 2025 on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan
Previous wording
Redemption of Series C Preferred Stock
Current wording
▪$11 million preferred dividends in 2025 prior to the redemption of series C preferred stock
Previous wording
The regulatory framework permits SDG&E and SoCalGas to recover certain program expenditures and other costs authorized by the CPUC (referred to as “refundable programs”).
Current wording
The regulatory framework permits SDG&E and SoCalGas to recover certain program expenditures and other costs authorized by the CPUC (referred to as “refundable programs”), which may be subject to reviews for reasonableness.
Previous wording
In the three months ended September 30, 2025 compared to the same period in 2024, Sempra’s natural gas revenues increased by $168 million (14%) driven by Sempra California, which included:
Current wording
In the three months ended March 31, 2026 compared to the same period in 2025, Sempra’s natural gas revenues decreased by $337 million (14%) driven by Sempra California, which included:
Previous wording
Our utilities revenues include electric revenues at Sempra California, substantially all of which is at SDG&E. Intercompany revenues are eliminated in Sempra’s Condensed Consolidated Statements of Operations.
Current wording
Our utilities revenues include electric revenues at Sempra California, substantially all of which are at SDG&E. Intercompany revenues are eliminated in Sempra’s Condensed Consolidated Statements of Operations.
Previous wording
In the three months ended September 30, 2025 compared to the same period in 2024, Sempra’s electric revenues increased by $191 million (18%) driven by Sempra California, which included:
Current wording
In the three months ended March 31, 2026 compared to the same period in 2025, Sempra’s electric revenues increased by $165 million (16%) driven by Sempra California, which included:
Previous wording
▪$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 wording
▪$9 million higher regulatory revenues associated with refundable programs, which are fully offset in O&M
Previous wording
In the three months ended September 30, 2025 compared to the same period in 2024, Sempra’s revenues from energy-related businesses increased by $16 million (3%) primarily due to:
Current wording
In the three months ended March 31, 2026 compared to the same period in 2025, Sempra’s revenues from energy-related businesses increased by $25 million (7%) primarily due to:
Previous wording
▪$39 million from asset and supply optimization from contracts to sell natural gas and LNG to third parties, including:
Current wording
▪$36 million from asset and supply optimization from contracts to sell natural gas and LNG to third parties, including:
Previous wording
◦$60 million from $50 million unrealized losses in 2025 compared to $10 million unrealized gains in 2024 on commodity derivatives
Current wording
◦$80 million from $13 million unrealized gains in 2026 compared to $67 million unrealized losses in 2025 on commodity derivatives
Previous wording
◦$90 million driven by higher natural gas prices and higher volumes associated with optimization of transport and storage contracts
Current wording
◦$41 million driven by lower natural gas prices associated with optimization of transport and storage contracts
Previous wording
In the three months ended September 30, 2025 compared to the same period in 2024, Sempra’s cost of sales from energy-related businesses decreased by $17 million (13%) primarily due to $19 million lower LNG purchases offset by higher natural gas purchases related to asset and supply optimization.
Current wording
In the three months ended March 31, 2026 compared to the same period in 2025, Sempra’s cost of sales from energy-related businesses decreased by $43 million (36%) primarily due to:
Previous wording
In the three months ended September 30, 2025 compared to the same period in 2024, Sempra’s O&M increased by $23 million (2%) primarily due to:
Current wording
In the three months ended March 31, 2026 compared to the same period in 2025, Sempra’s O&M decreased by $101 million (8%) due to:
Previous wording
▪$33 million decrease at Sempra California primarily due to lower non-refundable operating costs
Current wording
▪$159 million decrease at Sempra California primarily due to $155 million lower expenses associated with refundable programs, which costs are recovered in revenue
Previous wording
◦$18 million from higher provisions for expected credit losses
Current wording
◦$22 million from changes in provisions for expected credit losses
Previous wording
◦$8 million higher development costs and certain non-capitalized expenses from projects under construction
Current wording
◦$17 million higher development costs and certain non-capitalized expenses from projects under construction
Current wording
▪$55 million higher at Sempra California due to higher utility plant rate base
Previous wording
In the three months ended September 30, 2025 compared to the same period in 2024, Sempra’s other income, net, decreased by $16 million (25%) to $49 million primarily due to:
Current wording
In the three months ended March 31, 2026 compared to the same period in 2025, Sempra’s other income, net, increased by $9 million (10%) to $100 million primarily due to:
Previous wording
▪$7 million from $3 million gains in 2025 compared to $4 million losses in 2024 from impacts associated with interest rate and foreign exchange instruments and foreign currency transactions driven by other foreign currency transactional effects at Sempra Infrastructure
Current wording
▪$4 million higher net gains from impacts associated with foreign exchange instruments and foreign currency transactions at Sempra Infrastructure, including:
Previous wording
▪$87 million at Sempra Infrastructure primarily from $60 million in unrealized losses in 2025 on interest rate swaps related to the PA LNG Phase 1 project and higher interest expense related to a customer’s early termination of firm transportation agreements offset by higher capitalization of interest expense in 2025 from projects under construction
Previous wording
▪$21 million at Sempra California from higher debt balances from debt issuances
Current wording
▪$19 million at Sempra California from higher debt balances from debt issuances
Previous wording
▪$104 million at Parent and other from higher debt balances from debt issuances offset by higher capitalization of interest expense in 2025 from projects under construction at Sempra Infrastructure
Current wording
▪$17 million at Parent and other from higher debt balances from debt issuances and higher borrowings on commercial paper offset by higher capitalization of interest expense in 2026 from projects under construction at Sempra Infrastructure
Previous wording
◦$705 million income tax expense to adjust deferred income tax liabilities primarily related to outside basis differences in our investment in SI Partners
Current wording
◦$33 million net income tax benefit to adjust deferred income tax liabilities primarily related to outside basis differences in our investment in SI Partners
Previous wording
◦$26 million income tax expense due to the recognition of a deferred tax liability on our outside basis difference in Ecogas
Current wording
◦$3 million income tax benefit to adjust a Mexican deferred tax liability on our outside basis difference in Ecogas
Previous wording
We discuss the impact of foreign currency exchange rates and inflation on income taxes below in “Impact of Foreign Currency and Inflation Rates on Results of Operations.” See Note 1 of the Notes to Condensed Consolidated Financial Statements in this report and Notes 1 and 7 of the Notes to Consolidated Financial Statements in the Annual Report for further details about our accounting for income taxes and items subject to flow-through treatment.
Current wording
We discuss the impact of foreign currency exchange rates and inflation on income taxes below in “Impact of Foreign Currency and Inflation Rates on Results of Operations.” See Note 1 of the Notes to Condensed Consolidated Financial Statements in this report and Notes 1 and 8 of the Notes to Consolidated Financial Statements in the Annual Report for further details about our accounting for income taxes and items subject to flow-through treatment.
Previous wording
In the three months ended September 30, 2025 compared to the same period in 2024, Sempra’s equity earnings increased by $18 million (4%) to $472 million primarily due to:
Current wording
In the three months ended March 31, 2026 compared to the same period in 2025, Sempra’s equity earnings increased by $42 million (13%) to $367 million primarily due to:
Showing the first 40 of 126 pairs. Open the source sections for the rest.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
▪$14 million higher revenues from transmission operations
Current report — wording carried from elsewhere
▪$60 million driven by lower natural gas purchases related to asset and supply optimization
Current report — wording carried from elsewhere
▪$22 million unrealized losses in 2026 on commodity derivatives related to the PA LNG Phase 1 project
Current report — wording carried from elsewhere
▪$9 million higher net interest expense
Current report — wording carried from elsewhere
▪$14 million higher revenues from transmission operations
Current report — wording carried from elsewhere
▪$9 million higher regulatory revenues associated with refundable programs, which are fully offset in O&M
Current report — wording carried from elsewhere
▪$10 million higher revenues from incremental and balanced capital projects
Current report — wording carried from elsewhere
ECA LNG Phase 1’s customers have a termination right under their SPAs if the ECA LNG Phase 1 project does not commence commercial operations under the SPAs by February 24, 2026, subject to certain additional conditions. As of May 7, 2026, no customers have given notice of their intent to terminate the SPAs.
Current report — wording carried from elsewhere
Port Arthur Pipeline Louisiana Connector. SI Partners is constructing the Port Arthur Pipeline Louisiana Connector, a 72-mile pipeline connecting the PA LNG Phase 1 project to Gillis, Louisiana.
Current report — wording carried from elsewhere
We estimate the capital expenditures for the project will be approximately $1 billion, including capitalized interest at the project level and project contingency. The actual amount of capital expenditures may differ substantially from our estimates. The Port Arthur Pipeline Louisiana Connector achieved mechanical completion in January 2026, and we expect it to be ready for service ahead of the PA LNG Phase 1 project’s gas requirements.
Rearranged previous paragraphs (19)
Previous report — wording carried elsewhere
▪$18 million lower volumes driven by weather
Previous report — wording carried elsewhere
▪$51 million from asset and supply optimization from contracts to sell natural gas and LNG to third parties, including:
Previous report — wording carried elsewhere
▪ $28 million increase at Sempra Infrastructure due to:
Previous report — wording carried elsewhere
◦$12 million higher development costs and certain non-capitalized expenses from projects under construction
Previous report — wording carried elsewhere
▪$7 million lower investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan at Parent and other
Previous report — wording carried elsewhere
▪$39 million at Parent and other from higher debt balances from debt issuances
Previous report — wording carried elsewhere
▪$60 million at Sempra California from higher debt balances from debt issuances
Previous report — wording carried elsewhere
◦overall higher revenues primarily attributable to:
Previous report — wording carried elsewhere
•rate updates to reflect increases in invested capital
Previous report — wording carried elsewhere
◦higher interest expense and depreciation expense associated with increases in invested capital
Previous report — wording carried elsewhere
▪$15 million at Oncor Holdings driven by:
Previous report — wording carried elsewhere
◦overall higher revenues primarily attributable to:
Previous report — wording carried elsewhere
•rate updates to reflect increases in invested capital
Previous report — wording carried elsewhere
◦higher interest expense and depreciation expense associated with increases in invested capital
Previous report — wording carried elsewhere
▪$105 million higher average natural gas prices
Previous report — wording carried elsewhere
2024 GRC Track 2. In October 2023, SDG&E submitted a separate request to the CPUC in its 2024 GRC, known as a Track 2 request. This request seeks review and recovery of $1.5 billion of wildfire mitigation plan costs incurred from 2019 through 2022 that were in addition to amounts authorized in the 2019 GRC and not addressed in the 2024 GRC FD. SDG&E expects to receive a proposed decision for its Track 2 request by the end of 2025.
Previous report — wording carried elsewhere
In October 2025, a participating IOU publicly disclosed that it has received, or expects to receive, approximately $1.2 billion in aggregate reimbursements from the Wildfire Fund for eligible claims related to wildfires that occurred in 2019 and 2021. In the three months and nine months ended September 30, 2025, SDG&E reduced its Wildfire Fund asset by recording $2 million of accelerated amortization in O&M on Sempra’s and SDG&E’s Condensed Consolidated Statements of Operations.
Previous report — wording carried elsewhere
Unified Tracker Mechanism. In June 2025, Texas House Bill 5247 was signed into law and became effective. The bill establishes what is known as the UTM, which creates an alternative method, available through 2035, for qualifying electric utilities to apply for interim rate adjustments once annually using a comprehensive regulatory filing for cost recovery of certain transmission and distribution capital expenditures.
Previous report — wording carried elsewhere
Regulatory and Other Actions by the Mexican Government