SAN DIEGO GAS & ELECTRIC CO

We discuss herein SDG&E’s results of operations and significant changes in earnings, revenues and costs in thethree months (Q2) and six months (YTD) ended June 30, 2026 compared to the same period in 2025.

RESULTS OF OPERATIONS

(Dollars in millions)

In the three months ended June 30, 2026 compared to the same period in 2025, the increase in earnings of $15 million (9%) was primarily due to:

▪$17 million higher CPUC base operating margin, net of operating expenses

▪$13 million higher electric transmission margin, including the favorable impact from the retroactive application of the June 2026 FERC-approved TO6 settlement

▪$8 million higher income tax benefits primarily from flow-through items

▪$9 million higher net interest expense

▪$7 million lower AFUDC equity

In the six months ended June 30, 2026 compared to the same period in 2025, the increase in earnings of $30 million (7%) was primarily due to:

▪$49 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

▪$17 million higher electric transmission margin, including the favorable impact from the retroactive application of the June 2026 FERC-approved TO6 settlement

▪$18 million higher net interest expense

▪$9 million lower AFUDC equity

Electric Revenues and Cost of Electric Fuel and Purchased Power

In the three months ended June 30, 2026 compared to the same period in 2025, SDG&E’s electric revenues increased by $129 million (12%) to $1.2 billion primarily due to:

▪$37 million higher revenues from incremental and balanced capital projects

▪$32 million higher regulatory revenues from lower ITCs from standalone energy storage projects, which are offset in income tax expense

▪$29 million increase in cost of electric fuel and purchased power, which we discuss below

▪$12 million higher revenues from transmission operations, including favorable impact from the retroactive application of the June 2026 FERC-approved TO6 settlement

▪$11 million higher CPUC-authorized base revenues

▪$9 million higher regulatory revenues associated with refundable programs, which are fully offset in O&M

In the three months ended June 30, 2026 compared to the same period in 2025, SDG&E’s cost of electric fuel and purchased power increased by $29 million (27%) to $135 million primarily due to:

▪$27 million higher purchased power primarily due to changes in excess capacity sales offset by lower utility-owned generation costs

▪$10 million lower sales to the California ISO due to lower market prices

▪$7 million lower purchased power from the California ISO due to lower market prices

In the six months ended June 30, 2026 compared to the same period in 2025, SDG&E’s electric revenues increased by $293 million (14%) to $2.4 billion primarily due to:

•$136 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

•$65 million higher regulatory revenues from lower ITCs from standalone energy storage projects, which are offset in income tax expense

▪$50 million increase in cost of electric fuel and purchased power, which we discuss below

▪$26 million higher revenues from transmission operations, including favorable impact from the retroactive application of the June 2026 FERC-approved TO6 settlement

▪$18 million higher regulatory revenues associated with refundable programs, which are fully offset in O&M

▪$17 million higher CPUC-authorized base revenues

▪$10 million lower regulatory revenues associated with the acceleration of self-developed software deductions, which are offset in income tax expense

In the six months ended June 30, 2026 compared to the same period in 2025, SDG&E’s cost of electric fuel and purchased power increased by $50 million (28%) to $229 million primarily due to:

▪$52 million lower sales to the California ISO due to lower market prices

▪$32 million higher purchased power primarily due to changes in excess capacity sales and tolling agreements offset by lower utility-owned generation costs

▪$33 million lower purchased power from the California ISO due to lower market prices

Natural Gas Revenues and Cost of Natural Gas

In the three months ended June 30, 2026 and 2025, SDG&E’s average cost of natural gas per thousand cubic feet was $2.77 and $4.60, respectively. In the six months ended June 30, 2026 and 2025, SDG&E’s average cost of natural gas per thousand cubic feet was $5.13 and $4.86, respectively. The average cost of natural gas sold at SDG&E is impacted by market prices, as well as transportation, tariff and other charges.

In the three months ended June 30, 2026 compared to the same period in 2025, SDG&E’s natural gas revenues decreased by $23 million (10%) to $205 million primarily due to:

▪$22 million decrease in cost of natural gas sold, which we discuss below

▪$5 million lower revenues from incremental and balanced capital projects

▪$5 million higher CPUC-authorized base revenues

In the three months ended June 30, 2026 compared to the same period in 2025, SDG&E’s cost of natural gas decreased by $22 million to $22 million due to:

▪$15 million lower average natural gas prices

▪$7 million lower volumes driven by weather

In the six months ended June 30, 2026 compared to the same period in 2025, SDG&E’s natural gas revenues decreased by $60 million (10%) to $524 million primarily due to:

▪$30 million lower regulatory revenues associated with refundable programs, which are fully offset in O&M

▪$19 million decrease in cost of natural gas sold, which we discuss below

▪$17 million lower revenues from incremental and balanced capital projects

▪$11 million higher regulatory revenues primarily from lower gas repairs tax benefits

▪$6 million higher CPUC-authorized base revenues

In the six months ended June 30, 2026 compared to the same period in 2025, SDG&E’s cost of natural gas decreased by $19 million (15%) to $112 million due to:

▪$25 million lower volumes driven by weather

▪$6 million higher average natural gas prices

In the six months ended June 30, 2026 compared to the same period in 2025, SDG&E’s O&M decreased by $13 million (2%) to $830 million primarily due to lower expenses associated with refundable programs, which costs are recovered in revenue.

Other Income, Net

In the three months ended June 30, 2026 compared to the same period in 2025, SDG&E’s other income, net, decreased by $7 million (23%) to $24 million primarily due to lower AFUDC equity.

In the six months ended June 30, 2026 compared to the same period in 2025, SDG&E’s other income, net, decreased by $9 million (13%) to $62 million primarily due to lower AFUDC equity.

In the three months and six months ended June 30, 2026 compared to the same periods in 2025, SDG&E’s income tax expense increased by $32 million and $87 million, respectively, primarily due to: