FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Auction Price Inputs [Table Text Block]

For the CRRs settling from January 1 to December 31, the auction price inputs, at a given location, are in the following ranges for the years indicated below:



CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS

Settlement year	Price per MWh
2018	$	(7.25	)	to	$	11.99
2017	(11.88		)	to	6.93

Recurring Fair Value Measures Table



RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Fair value at March 31, 2018
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	486		$	5	$	—	$	491
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	35			9		—		44
Municipal bonds	—			247		—		247
Other securities	—			216		—		216
Total debt securities	35			472		—		507
Total nuclear decommissioning trusts⁽¹⁾	521			477		—		998
Interest rate and foreign exchange instruments	—			46		—		46
Commodity contracts not subject to rate recovery	4			8		—		12
Effect of netting and allocation of collateral⁽²⁾	21			—		—		21
Commodity contracts subject to rate recovery	—			2		118		120
Effect of netting and allocation of collateral⁽²⁾	9			—		5		14
Total	$	555		$	533	$	123	$	1,211

Liabilities:
Interest rate and foreign exchange instruments	$	—		$	134	$	—	$	134
Commodity contracts not subject to rate recovery	7			3		—		10
Commodity contracts subject to rate recovery	23			3		157		183
Effect of netting and allocation of collateral⁽²⁾	(23		)	—		—		(23		)
Total	$	7		$	140	$	157	$	304

	Fair value at December 31, 2017
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	491		$	5	$	—	$	496
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	45			9		—		54
Municipal bonds	—			250		—		250
Other securities	—			217		—		217
Total debt securities	45			476		—		521
Total nuclear decommissioning trusts⁽¹⁾	536			481		—		1,017
Interest rate and foreign exchange instruments	—			7		—		7
Commodity contracts not subject to rate recovery	5			12		—		17
Effect of netting and allocation of collateral⁽²⁾	2			—		—		2
Commodity contracts subject to rate recovery	—			2		126		128
Effect of netting and allocation of collateral⁽²⁾	12			—		5		17
Total	$	555		$	502	$	131	$	1,188

Liabilities:
Interest rate and foreign exchange instruments	$	—		$	217	$	—	$	217
Commodity contracts not subject to rate recovery	—			6		—		6
Commodity contracts subject to rate recovery	23			7		154		184
Effect of netting and allocation of collateral⁽²⁾	(23		)	—		—		(23		)
Total	$	—		$	230	$	154	$	384


⁽¹⁾	Excludes cash balances and cash equivalents.


⁽²⁾	Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.



RECURRING FAIR VALUE MEASURES – SDG&E
(Dollars in millions)
	Fair value at March 31, 2018
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	486		$	5	$	—	$	491
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	35			9		—		44
Municipal bonds	—			247		—		247
Other securities	—			216		—		216
Total debt securities	35			472		—		507
Total nuclear decommissioning trusts⁽¹⁾	521			477		—		998
Commodity contracts subject to rate recovery	—			—		118		118
Effect of netting and allocation of collateral⁽²⁾	7			—		5		12
Total	$	528		$	477	$	123	$	1,128

Liabilities:
Interest rate instruments	$	—		$	9	$	—	$	9
Commodity contracts subject to rate recovery	23			2		157		182
Effect of netting and allocation of collateral⁽²⁾	(23		)	—		—		(23		)
Total	$	—		$	11	$	157	$	168

	Fair value at December 31, 2017
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	491		$	5	$	—	$	496
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	45			9		—		54
Municipal bonds	—			250		—		250
Other securities	—			217		—		217
Total debt securities	45			476		—		521
Total nuclear decommissioning trusts⁽¹⁾	536			481		—		1,017
Commodity contracts subject to rate recovery	—			—		126		126
Effect of netting and allocation of collateral⁽²⁾	11			—		5		16
Total	$	547		$	481	$	131	$	1,159

Liabilities:
Interest rate instruments	$	—		$	13	$	—	$	13
Commodity contracts subject to rate recovery	23			5		154		182
Effect of netting and allocation of collateral⁽²⁾	(23		)	—		—		(23		)
Total	$	—		$	18	$	154	$	172


⁽¹⁾	Excludes cash balances and cash equivalents.


⁽²⁾	Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.



RECURRING FAIR VALUE MEASURES – SOCALGAS
(Dollars in millions)
	Fair value at March 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Commodity contracts subject to rate recovery	$	—	$	2	$	—	$	2
Effect of netting and allocation of collateral⁽¹⁾	2		—		—		2
Total	$	2	$	2	$	—	$	4

Liabilities:
Commodity contracts subject to rate recovery	$	—	$	1	$	—	$	1
Total	$	—	$	1	$	—	$	1

	Fair value at December 31, 2017
	Level 1		Level 2		Level 3		Total
Assets:
Commodity contracts subject to rate recovery	$	—	$	2	$	—	$	2
Effect of netting and allocation of collateral⁽¹⁾	1		—		—		1
Total	$	1	$	2	$	—	$	3

Liabilities:
Commodity contracts subject to rate recovery	$	—	$	2	$	—	$	2
Total	$	—	$	2	$	—	$	2

⁽¹⁾

Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.

Recurring Fair Value Measures Level 3 Rollforward Table

The following table sets forth reconciliations of changes in the fair value of CRRs and long-term, fixed-price electricity positions classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E:



LEVEL 3 RECONCILIATIONS⁽¹⁾
(Dollars in millions)
	Three months ended March 31,
	2018			2017
Balance at January 1	$	(28	)	$	(74	)
Realized and unrealized gains (losses)	4			(13		)
Allocated transmission instruments	3			—
Settlements	(19		)	(9		)
Balance at March 31	$	(40	)	$	(96	)
Change in unrealized losses relating to instruments still held at March 31	$	(8	)	$	(16	)

⁽¹⁾ Excludes the effect of contractual ability to settle contracts under master netting agreements.

Fair Value of Financial Instruments Table

The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets at March 31, 2018 and December 31, 2017:



FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
	March 31, 2018
	Carrying amount		Fair value
	Carrying amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Long-term amounts due from unconsolidated affiliates⁽¹⁾	$	627	$	—	$	606	$	41	$	647
Long-term amounts due to unconsolidated affiliates⁽²⁾	35		—		32		—		32
Total long-term debt⁽³⁾⁽⁴⁾	22,063		790		21,254		456		22,500
SDG&E:
Total long-term debt⁽⁴⁾⁽⁵⁾	$	4,848	$	—	$	4,892	$	292	$	5,184
SoCalGas:
Total long-term debt⁽⁶⁾	$	3,009	$	—	$	3,102	$	—	$	3,102

	December 31, 2017
	Carrying amount		Fair value
	Carrying amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Long-term amounts due from unconsolidated affiliates⁽¹⁾	$	604	$	—	$	528	$	96	$	624
Long-term amounts due to unconsolidated affiliates⁽²⁾	35		—		32		—		32
Total long-term debt⁽³⁾⁽⁴⁾	17,138		817		17,134		458		18,409
SDG&E:
Total long-term debt⁽⁴⁾⁽⁵⁾	$	4,868	$	—	$	5,073	$	295	$	5,368
SoCalGas:
Total long-term debt⁽⁶⁾	$	3,009	$	—	$	3,192	$	—	$	3,192


⁽¹⁾	Excluding accumulated interest outstanding of $35 million and $29 million at March 31, 2018 and December 31, 2017, respectively, and excluding foreign currency translation of $4 million and $35 million on a Mexican peso-denominated loan at March 31, 2018 and December 31, 2017, respectively.


⁽²⁾	Excluding negligible interest outstanding at March 31, 2018 and December 31, 2017.

⁽³⁾

Before reductions for unamortized discount (net of premium) and debt issuance costs of $206 million and $143 million at March 31, 2018 and December 31, 2017, respectively, and excluding build-to-suit and capital lease obligations of $877 million at both March 31, 2018 and December 31, 2017. We discuss our long-term debt in Note 7 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report.


⁽⁴⁾	Level 3 instruments include $292 million and $295 million at March 31, 2018 and December 31, 2017, respectively, related to Otay Mesa VIE.


⁽⁵⁾	Before reductions for unamortized discount and debt issuance costs of $45 million at both March 31, 2018 and December 31, 2017, and excluding capital lease obligations of $730 million and $732 million at March 31, 2018 and December 31, 2017, respectively.


⁽⁶⁾	Before reductions for unamortized discount and debt issuance costs of $24 million at both March 31, 2018 and December 31, 2017, and excluding capital lease obligations of $4 million and $1 million at March 31, 2018 and December 31, 2017, respectively.