v3.6.0.2

DEBT AND CREDIT FACILITIES | 12 Months Ended
--- | ---
Dec. 31, 2016
Debt Disclosure [Abstract] |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES LINES OF CREDIT At December 31, 2016, Sempra Energy Consolidated had an aggregate of $4.3 billion in three primary committed lines of credit for Sempra Energy, Sempra Global and the California Utilities to provide liquidity and to support commercial paper, the principal terms of which we describe below. Available unused credit on these lines at December 31, 2016 was approximately $3 billion. Our foreign operations have additional general purpose credit facilities aggregating $1.7 billion at December 31, 2016. Available unused credit on these lines totaled $1 billion at December 31, 2016.
PRIMARY U.S. COMMITTED LINES OF CREDIT
(Dollars in millions)
|  |  | At December 31, 2016
|  |  | Total facility |  | Commercial paper outstanding |  | Letters of credit outstanding |  | Available unused credit
Sempra Energy(1) |  | $ | 1,000 |  |  | $ | — |  |  | $ | 65 |  |  | $ | 935 |
Sempra Global(2) |  | 2,335 |  |  | 1,181 |  |  | — |  |  | 1,154 |
California Utilities(3): |  |  |  |  |  |  |  |
| SDG&E |  | 750 |  |  | — |  |  | — |  |  | 750 |
| SoCalGas |  | 750 |  |  | 62 |  |  | — |  |  | 688 |
| Less: subject to a combined limit of $1 billion for both utilities |  | (500 | ) |  | — |  |  | — |  |  | (500 | )
|  |  | 1,000 |  |  | 62 |  |  | — |  |  | 938 |
Total |  | $ | 4,335 |  |  | $ | 1,243 |  |  | $ | 65 |  |  | $ | 3,027 |
(1) The facility also provides for issuance of up to $400 million of letters of credit on behalf of Sempra Energy with the amount of borrowings otherwise available under the facility reduced by the amount of outstanding letters of credit. (2) Sempra Energy guarantees Sempra Global’s obligations under the credit facility. (3) The facility also provides for the issuance of letters of credit on behalf of each utility subject to a combined letter of credit commitment of $250 million for both utilities. The amount of borrowings otherwise available under the facility is reduced by the amount of outstanding letters of credit. Related to the committed lines of credit in the table above:
▪ | Each is a 5-year syndicated revolving credit agreement expiring in October 2020.
▪ | Citibank N.A. serves as administrative agent for the Sempra Energy and Sempra Global facilities and JPMorgan Chase Bank, N.A. serves as administrative agent for the California Utilities combined facility.
▪ | Each facility has a syndicate of 21 lenders. No single lender has greater than a 7-percent share in any facility.
▪ | Sempra Energy, SDG&E and SoCalGas must maintain a ratio of indebtedness to total capitalization (as defined in each agreement) of no more than 65 percent at the end of each quarter. Each entity is in compliance with this and all other financial covenants under its respective credit facility at December 31, 2016.
▪ | Borrowings bear interest at benchmark rates plus a margin that varies with Sempra Energy’s credit ratings in the case of the Sempra Energy and Sempra Global lines of credit, and with the borrowing utility’s credit rating in the case of the California Utilities line of credit.
▪ | The California Utilities’ obligations under their agreement are individual obligations, and a default by one utility would not constitute a default by the other utility or preclude borrowings by, or the issuance of letters of credit on behalf of, the other utility.
CREDIT FACILITIES IN SOUTH AMERICA AND MEXICO
(U.S. dollar equivalent in millions)
|  |  |  | At December 31, 2016
|  | Denominated in |  | Total facility |  | Amount outstanding |  | Available unused credit
Sempra South American Utilities(1): |  |  |  |  |  |  |
| Peru(2) | Peruvian sol |  | $ | 392 |  |  | $ | 179 |  | (3) | $ | 213 |
| Chile | Chilean peso |  | 113 |  |  | — |  |  | 113 |
Sempra Mexico: |  |  |  |  |  |  |
| 5-year revolver expiring in August 2020 with a syndicate of eight lenders | U.S. dollar |  | 1,170 |  |  | 446 |  |  | 724 |
Total |  |  | $ | 1,675 |  |  | $ | 625 |  |  | $ | 1,050 |
(1) The credit facilities were entered into to finance working capital and for general corporate purposes and expire between 2017 and 2019. (2) The Peruvian facilities require a debt to equity ratio of no more than 170 percent, with which Peru is in compliance at December 31, 2016. (3) Includes bank guarantees of $18 million. WEIGHTED AVERAGE INTEREST RATES The weighted average interest rates on the total short-term debt at Sempra Energy Consolidated were 1.51 percent and 1.09 percent at December 31, 2016 and 2015, respectively. At December 31, 2016, the weighted average interest rate on total short-term debt at SoCalGas was 0.75 percent. At December 31, 2015, the weighted average interest rate on total short-term debt at SDG&E was 1.01 percent. LONG-TERM DEBT The following tables show the detail and maturities of long-term debt outstanding:
LONG-TERM DEBT
(Dollars in millions)
| December 31,
| 2016 |  | 2015
SDG&E |  |  |
First mortgage bonds (collateralized by plant assets): |  |  |
Bonds at variable rates (1.151% at December 31, 2016) March 9, 2017 | $ | 140 |  |  | $ | 140 |
1.65% July 1, 2018(1) | 161 |  |  | 161 |
3% August 15, 2021 | 350 |  |  | 350 |
1.914% payable 2015 through February 2022 | 197 |  |  | 232 |
3.6% September 1, 2023 | 450 |  |  | 450 |
2.5% May 15, 2026 | 500 |  |  | — |
6% June 1, 2026 | 250 |  |  | 250 |
5% payable 2015 through December 2027(2) | — |  |  | 105 |
5.875% January and February 2034(1) | 176 |  |  | 176 |
5.35% May 15, 2035 | 250 |  |  | 250 |
6.125% September 15, 2037 | 250 |  |  | 250 |
4% May 1, 2039(1) | 75 |  |  | 75 |
6% June 1, 2039 | 300 |  |  | 300 |
5.35% May 15, 2040 | 250 |  |  | 250 |
4.5% August 15, 2040 | 500 |  |  | 500 |
3.95% November 15, 2041 | 250 |  |  | 250 |
4.3% April 1, 2042 | 250 |  |  | 250 |
| 4,349 |  |  | 3,989 |
Other long-term debt: |  |  |  |  |
OMEC LLC variable-rate loan (5.2925% after floating-to-fixed rate swaps effective 2007), |  |  |  |  |
payable 2013 through April 2019 (collateralized by OMEC plant assets) | 305 |  |  | 315 |
Capital lease obligations: |  |  |  |  |
Purchased-power agreements | 239 |  |  | 243 |
Other | 1 |  |  | 1 |
| 545 |  |  | 559 |
| 4,894 |  |  | 4,548 |
Current portion of long-term debt | (191 | ) |  | (50 | )
Unamortized discount on long-term debt | (11 | ) |  | (10 | )
Unamortized debt issuance costs | (34 | ) |  | (33 | )
Total SDG&E | 4,658 |  |  | 4,455 |
SoCalGas |  |  |  |  |
First mortgage bonds (collateralized by plant assets): |  |  |  |  |
5.45% April 15, 2018 | 250 |  |  | 250 |
1.55% June 15, 2018 | 250 |  |  | 250 |
3.15% September 15, 2024 | 500 |  |  | 500 |
3.2% June 15, 2025 | 350 |  |  | 350 |
2.6% June 15, 2026 | 500 |  |  | — |
5.75% November 15, 2035 | 250 |  |  | 250 |
5.125% November 15, 2040 | 300 |  |  | 300 |
3.75% September 15, 2042 | 350 |  |  | 350 |
4.45% March 15, 2044 | 250 |  |  | 250 |
| 3,000 |  |  | 2,500 |
Other long-term debt (uncollateralized): |  |  |  |  |
1.875% Notes payable 2016 through May 2026(1) | 4 |  |  | 8 |
5.67% Notes January 18, 2028 | 5 |  |  | 5 |
Capital lease obligations | — |  |  | 1 |
| 9 |  |  | 14 |
| 3,009 |  |  | 2,514 |
Current portion of long-term debt | — |  |  | (9 | )
Unamortized discount on long-term debt | (7 | ) |  | (7 | )
Unamortized debt issuance costs | (20 | ) |  | (17 | )
Total SoCalGas | 2,982 |  |  | 2,481 |
LONG-TERM DEBT (CONTINUED)
(Dollars in millions)
|  | December 31,
|  | 2016 |  | 2015
Sempra Energy |  |  |  |
Other long-term debt (uncollateralized): |  |  |  |
6.5% Notes June 1, 2016, including $300 at variable rates after fixed-to-floating |  |  |  |
rate swaps effective 2011 (4.77% at December 31, 2015) |  | $ | — |  |  | $ | 750 |
2.3% Notes April 1, 2017 |  | 600 |  |  | 600 |
6.15% Notes June 15, 2018 |  | 500 |  |  | 500 |
9.8% Notes February 15, 2019 |  | 500 |  |  | 500 |
1.625% Notes October 7, 2019 |  | 500 |  |  | — |
2.4% Notes March 15, 2020 |  | 500 |  |  | 500 |
2.85% Notes November 15, 2020 |  | 400 |  |  | 400 |
2.875% Notes October 1, 2022 |  | 500 |  |  | 500 |
4.05% Notes December 1, 2023 |  | 500 |  |  | 500 |
3.55% Notes June 15, 2024 |  | 500 |  |  | 500 |
3.75% Notes November 15, 2025 |  | 350 |  |  | 350 |
6% Notes October 15, 2039 |  | 750 |  |  | 750 |
Market value adjustments for interest rate swaps, net |  | (3 | ) |  | (2 | )
Build-to-suit lease(3) |  | 137 |  |  | 136 |
Sempra South American Utilities |  |  |  |  |  |
Other long-term debt (uncollateralized): |  |  |  |  |  |
Chilquinta Energía – 4.25% Series B Bonds October 30, 2030 |  | 185 |  |  | 170 |
Luz del Sur |  |  |  |  |  |
Bank loans 5.05% to 6.7% payable 2016 through December 2018 |  | 75 |  |  | 136 |
Corporate bonds at 4.75% to 8.75% payable 2014 through September 2029 |  | 346 |  |  | 292 |
Other bonds at 3.77% to 4.61% payable 2020 through May 2022 |  | 7 |  |  | 8 |
Capital lease obligations |  | 6 |  |  | 6 |
Sempra Mexico |  |  |  |  |  |
Other long-term debt (uncollateralized unless otherwise noted): |  |  |  |  |  |
Notes February 8, 2018 at variable rates (2.66% after floating-to-fixed rate cross-currency |  |  |  |  |  |
swaps effective 2013) |  | 63 |  |  | 75 |
6.3% Notes February 2, 2023 (4.12% after cross-currency swap) |  | 189 |  |  | 227 |
Notes at variable rates (4.63% after floating-to-fixed rate swaps effective 2014), |  |  |  |  |  |
payable 2016 through December 2026, collateralized by plant assets |  | 352 |  |  | — |
Bank loans including $254 at a weighted-average fixed rate of 6.67%, $187 at variable rates |  |  |  |
(weighted-average rate of 6.29% after floating-to-fixed rate swaps effective 2014) and $40 at variable |  |  |  |
rates (3.99% at December 31, 2016), payable 2016 through March 2032, collateralized by plant assets |  | 481 |  |  | — |
Sempra Renewables |  |  |  |  |  |
Other long-term debt (collateralized by project assets): |  |  |  |  |  |
Loan at variable rates (2.625% at December 31, 2016) payable 2012 through December 2028 |  |  |  |  |  |
except for $64 at 3.668% after floating-to-fixed rate swaps effective June 2012(1) |  | 84 |  |  | 91 |
Sempra LNG & Midstream |  |  |  |  |  |
First mortgage bonds (Mobile Gas, collateralized by plant assets): |  |  |  |  |  |
4.14% September 30, 2021(2) |  | — |  |  | 20 |
5% September 30, 2031(2) |  | — |  |  | 42 |
Other long-term debt (uncollateralized unless otherwise noted): |  |  |  |  |  |
Notes at 2.87% to 3.51% October 1, 2026(1) |  | 20 |  |  | 19 |
8.45% Notes payable 2012 through December 2017, collateralized by parent guarantee |  | 6 |  |  | 11 |
3.1% Notes December 30, 2018, collateralized by plant assets(1)(2) |  | — |  |  | 5 |
|  | 7,548 |  |  | 7,086 |
Current portion of long-term debt |  | (722 | ) |  | (848 | )
Unamortized discount on long-term debt |  | (10 | ) |  | (10 | )
Unamortized premium on long-term debt |  | 4 |  |  | 5 |
Unamortized debt issuance costs |  | (31 | ) |  | (35 | )
Total other Sempra Energy |  | 6,789 |  |  | 6,198 |
Total Sempra Energy Consolidated |  | $ | 14,429 |  |  | $ | 13,134 |
(1) | Callable long-term debt not subject to make-whole provisions.
(2) | Early redemption or deconsolidated in 2016.
(3) | We discuss this lease in Note 15.
MATURITIES OF LONG-TERM DEBT(1)
(Dollars in millions)
| SDG&E |  | SoCalGas |  | Other Sempra Energy |  | Total Sempra Energy Consolidated
2017 | $ | 186 |  |  | $ | — |  |  | $ | 719 |  |  | $ | 905 |
2018 | 207 |  |  | 500 |  |  | 707 |  |  | 1,414 |
2019 | 321 |  |  | — |  |  | 1,096 |  |  | 1,417 |
2020 | 36 |  |  | — |  |  | 996 |  |  | 1,032 |
2021 | 385 |  |  | — |  |  | 113 |  |  | 498 |
Thereafter | 3,519 |  |  | 2,509 |  |  | 3,777 |  |  | 9,805 |
Total | $ | 4,654 |  |  | $ | 3,009 |  |  | $ | 7,408 |  |  | $ | 15,071 |
(1) | Excludes capital lease obligations, build-to-suit lease, market value adjustments for interest rate swaps, discounts, premiums and debt issuance costs.
Various long-term obligations totaling $6.5 billion at Sempra Energy at December 31, 2016 are unsecured. This includes unsecured long-term obligations totaling $9 million at SoCalGas. There were no unsecured long-term obligations at SDG&E. CALLABLE LONG-TERM DEBT At the option of Sempra Energy, SDG&E and SoCalGas, certain debt at December 31, 2016 is callable subject to premiums:
CALLABLE LONG-TERM DEBT
(Dollars in millions)
| SDG&E |  | SoCalGas |  | Other Sempra Energy |  | Total Sempra Energy Consolidated
Not subject to make-whole provisions | $ | 412 |  |  | $ | 4 |  |  | $ | 104 |  |  | $ | 520 |
Subject to make-whole provisions | 3,797 |  |  | 3,005 |  |  | 6,042 |  |  | 12,844 |
In addition, the OMEC LLC project financing loan discussed in Note 1, with $305 million of outstanding borrowings at December 31, 2016, may be prepaid at the borrowers’ option. FIRST MORTGAGE BOND S The California Utilities issue first mortgage bonds secured by a lien on utility plant. The California Utilities may issue additional first mortgage bonds if in compliance with the provisions of their bond agreements (indentures). These indentures require, among other things, the satisfaction of pro forma earnings-coverage tests on first mortgage bond interest and the availability of sufficient mortgaged property to support the additional bonds, after giving effect to prior bond redemptions. The most restrictive of these tests (the property test) would permit the issuance, subject to CPUC authorization, of an additional $4.5 billion of first mortgage bonds at SDG&E and $0.7 billion at SoCalGas at December 31, 2016. In May 2016, SDG&E publicly offered and sold $500 million of 2.50-percent first mortgage bonds maturing in 2026. SDG&E used the proceeds from the offering to redeem, prior to a scheduled maturity in 2027, $105 million aggregate principal amount of 5-percent, tax-exempt industrial development revenue bonds, to repay outstanding commercial paper and for other general corporate purposes. In June 2016, SoCalGas publicly offered and sold $500 million of 2.60-percent first mortgage bonds maturing in 2026. SoCalGas used the proceeds from the offering to repay outstanding commercial paper and for other general corporate purposes. OTHER LONG-TERM DEBT Sempra Energy In October 2016, Sempra Energy publicly offered and sold $500 million of 1.625-percent, fixed-rate notes maturing in 2019. Sempra Energy used the proceeds from this offering to repay outstanding commercial paper. Sempra South American Utilities Luz del Sur has outstanding corporate bonds and bank loans that are denominated in the local currency. In July 2016, Luz del Sur publicly offered and sold $50 million of corporate bonds at 6.50 percent maturing in 2025. In January 2017, Luz del Sur also publicly issued and sold $50 million of corporate bonds at 6.375 percent, maturing in 2023. Sempra Mexico In September 2016, IEnova completed the acquisition of PEMEX’s 50-percent interest in GdC, as we discuss in Note 3. Pursuant to the agreement, IEnova assumed $364 million of long-term debt, including $49 million classified as current at the acquisition date. Principal and interest payments are due quarterly each year, and the loan fully matures in December 2026. The loan bears interest equal to LIBOR plus a spread of 2 percent to 2.75 percent, which varies over the term of the loan. To moderate exposure to interest rate and associated cash flow variability, GdC entered into floating-to-fixed interest rate swaps of the LIBOR component for the full loan amount, resulting in an all-in fixed rate of 2.63 percent plus the corresponding spread. The loan is collateralized by the TDF S. de R.L. de C.V. liquid petroleum gas pipeline and the San Fernando natural gas pipeline, which are wholly owned by GdC. The loan agreement contains various covenants, including maintaining a certain interest coverage ratio and a minimum members’ equity during the term of the loan. At December 31, 2016, GdC was in compliance with these and all other financial covenants. In December 2016, IEnova completed the acquisition of Ventika, as we discuss in Note 3. Pursuant to the agreement, IEnova assumed $485 million of long-term debt, including $7 million classified as current at the acquisition date, of which $113 million fully matures in March 2024 and $372 million fully matures in March 2032. Principal and interest payments are due quarterly each year. The long-term debt bears interest as follows:
INTEREST RATES ON VENTIKA LOANS AT DECEMBER 31, 2016 |
(Dollars in millions) |  |  |  |  |
|  | Weighted-average
| Amount outstanding | Stated rate |  | Margin(1) | Total rate
Fixed rate loans | $ | 254 |  | 3.64% |  | 3.03% | 6.67%
Variable rate loans, hedged | 187 |  | 3.26% | (2) | 3.03% | 6.29%
Variable rate loans, unhedged | 40 |  | LIBOR |  | 3.03% | 3.99%
Total variable rate loans | 227 |  |  |  |  |
Total long-term debt | $ | 481 |  |  |  |  | 6.30%
(1) Margin varies between 3.03 percent to 3.93 percent over the term of the loan. (2) Fixed LIBOR component after floating-to-fixed interest rate swap. The loans are collateralized by project assets. The loan agreements contain various affirmative, negative and informational covenants. At December 31, 2016, Ventika was in compliance with all the covenants. Sempra LNG & Midstream In September 2016, Sempra LNG & Midstream completed the sale of EnergySouth, the parent company of Mobile Gas and Willmut Gas. Sempra LNG & Midstream received $318 million, net of $2 million cash sold, in cash proceeds, and the buyer assumed debt of $67 million, which included $20 million of 4.14 percent first mortgage bonds and $42 million of 5 percent first mortgage bonds at Mobile Gas, and $5 million of 3.1 percent notes at Willmut Gas. We discuss the sale of EnergySouth in Note 3. INTEREST RATE SWAPS We discuss our fair value and cash flow hedging interest rate swaps in Note 9.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration