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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Recurring Fair Value Measures Table

RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Fair value at December 31, 2018
	Level 1				Level 2				Level 3				Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	407			$	4			$	—			$	411
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	43				10				—				53
Municipal bonds	—				269				—				269
Other securities	—				234				—				234
Total debt securities	43				513				—				556
Total nuclear decommissioning trusts(1)	450				517				—				967
Interest rate and foreign exchange instruments	—				2				—				2
Commodity contracts not subject to rate recovery	—				24				—				24
Effect of netting and allocation of collateral(2)	19				—				—				19
Commodity contracts subject to rate recovery	2				9				278				289
Effect of netting and allocation of collateral(2)	28				—				5				33
Total	$	499			$	552			$	283			$	1,334
Liabilities:
Interest rate and foreign exchange instruments	$	—			$	150			$	—			$	150
Commodity contracts not subject to rate recovery	—				34				—				34
Commodity contracts subject to rate recovery	2				5				99				106
Effect of netting and allocation of collateral(2)	(2		)		—				—				(2		)
Total	$	—			$	189			$	99			$	288
	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 December 31, 2018
	Level 1				Level 2				Level 3					Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	407			$	4			$	—				$	411
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	43				10				—					53
Municipal bonds	—				269				—					269
Other securities	—				234				—					234
Total debt securities	43				513				—					556
Total nuclear decommissioning trusts(1)	450				517				—					967
Commodity contracts subject to rate recovery	1				6				278					285
Effect of netting and allocation of collateral(2)	23				—				5					28
Total	$	474			$	523			$	283				$	1,280
Liabilities:
Interest rate instruments	$	—			$	1			$	—				$	1
Commodity contracts subject to rate recovery	2				—				99					101
Effect of netting and allocation of collateral(2)	(2		)		—				—					(2		)
Total	$	—			$	1			$	99				$	100
	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 December 31, 2018
	Level 1				Level 2				Level 3					Total
Assets:
Commodity contracts subject to rate recovery	$	1			$	3			$	—				$	4
Effect of netting and allocation of collateral(1)	5				—				—					5
Total	$	6			$	3			$	—				$	9
Liabilities:
Commodity contracts subject to rate recovery	$	—			$	5			$	—				$	5
Total	$	—			$	5			$	—				$	5
	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)
	Years ended December 31,
	2018				2017				2016
Balance at January 1	$	(28	)		$	(74	)		$	19
Realized and unrealized gains (losses)	209				34				(120		)
Allocated transmission instruments	10				6				8
Settlements	(12		)		6				19
Balance at December 31	$	179			$	(28	)		$	(74	)
Change in unrealized gains (losses) relating to
instruments still held at December 31	$	183			$	30			$	(101	)

⁽¹⁾

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

Schedule of Auction Price Inputs

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

CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS
Settlement year		Price per MWh							Median price per MWh
2019	$	(8.57	)	to	$	35.21		$	(2.94	)
2018		(7.25	)	to		11.99			0.09
2017		(11.88	)	to		6.93			(0.14	)

The fair value of the net electricity positions classified as Level 3 is derived from a discounted cash flow model using market electricity forward price inputs. The range and weighted-average price of these inputs was as follows:

LONG-TERM, FIXED-PRICE ELECTRICITY POSITIONS PRICE INPUTS
Settlement year		Price per MWh							Weighted-average price per MWh
2018	$	22.20		to	$	76.85		$	42.69
2017		22.55		to		44.10			35.23

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 Consolidated Balance Sheets at December 31, 2018 and 2017:

FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
	December 31, 2018
	Carrying				Fair value
	amount				Level 1				Level 2				Level 3				Total
Sempra Energy Consolidated:
Long-term amounts due from unconsolidated affiliates	$	688			$	—			$	648			$	47			$	695
Long-term amounts due to unconsolidated affiliates	37				—				35				—				35
Total long-term debt(1)(2)	22,067				—				21,274				351				21,625
SDG&E:
Total long-term debt(2)(3)	$	4,996			$	—			$	4,897			$	220			$	5,117
SoCalGas:
Total long-term debt(4)	$	3,459			$	—			$	3,505			$	—			$	3,505
	December 31, 2017
	Carrying				Fair value
	amount				Level 1				Level 2				Level 3				Total
Sempra Energy Consolidated:
Long-term amounts due from unconsolidated affiliates	$	598			$	—			$	510			$	108			$	618
Long-term amounts due to unconsolidated affiliates	35				—				32				—				32
Total long-term debt(1)(2)	17,138				817				17,134				458				18,409
SDG&E:
Total long-term debt(2)(3)	$	4,868			$	—			$	5,073			$	295			$	5,368
SoCalGas:
Total long-term debt(4)	$	3,009			$	—			$	3,192			$	—			$	3,192

⁽¹⁾  Before reductions for unamortized discount (net of premium) and debt issuance costs of $202 million and $143 million at December 31, 2018 and 2017, respectively, and excluding build-to-suit and capital lease obligations of $1,419 million and $877 million at December 31, 2018 and 2017, respectively. We discuss our long-term debt in Note 7.

⁽²⁾  Level 3 instruments include $220 million and $295 million at December 31, 2018 and 2017, respectively, related to Otay Mesa VIE.

⁽³⁾  Before reductions for unamortized discount and debt issuance costs of $49 million and $45 million at December 31, 2018 and 2017, respectively, and excluding capital lease obligations of $1,272 million and $732 million at December 31, 2018 and 2017, respectively.

⁽⁴⁾ 

Before reductions for unamortized discount and debt issuance costs of $32 million and $24 million at December 31, 2018 and 2017, respectively, and excluding capital lease obligations of $3 million and $1 million at December 31, 2018 and 2017, respectively

Fair Value Measurements, Nonrecurring Table

The table below summarizes significant inputs impacting our non-recurring fair value measures. Additional discussions about the related transactions are provided in Note 5, and as applicable, in Note 6.

NON-RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
	Measurement date		Estimated fair value (in millions)			Valuation technique	Fair value hierarchy		% of fair value measurement		Inputs used to develop measurement		Range of inputs (weighted average)
Non-utility natural gas storage assets	December 31, 2018	$	337		(1)	Market approach	Level 2		100%		Assets’ sales prices		100%
Non-utility natural gas storage assets	June 25, 2018	$	190		(1)(2)	Discounted cash flows	Level 3		100%		Storage rates per Dth/month		$0.06 - $0.22 ($0.10)	(3)
											Discount rate		10%	(4)
Certain of our U.S. wind equity method investments	June 25, 2018	$	145		(5)	Discounted cash flows	Level 3		100%		Contracted and observable merchant prices per MWh		$29 - $92	(3)
											Discount rate		8% - 10% (8.7%)	(4)
TdM	June 30, 2017	$	62			Market approach	Level 2		100%		Purchase price offer		100%
TdM	September 29, 2016	$	145			Market approach	Level 2		100%		Purchase price offers		100%
Investment in IEnova Pipelines	September 26, 2016	$	1,144		(6)	Market approach	Level 2		100%		Equity sale price		100%
Investment in Rockies Express	March 29, 2016	$	440			Market approach	Level 2		100%		Equity sale price		100%

⁽¹⁾  Includes Mississippi Hub, Bay Gas and other non-utility assets, which are classified as held for sale at December 31, 2018 with a net carrying value of $323 million, reflecting estimated costs to sell.

⁽²⁾  Includes LA Storage, which continues to be classified as PP&E.

⁽³⁾  Generally, significant increases (decreases) in this input in isolation would result in a significantly higher (lower) fair value measurement.

⁽⁴⁾  An increase in the discount rate would result in a decrease in fair value.

⁽⁵⁾  At December 31, 2018, these U.S. wind equity method investments had a carrying value of $139 million, reflecting subsequent business activity.

⁽⁶⁾ 

Immediately prior to acquiring a 100-percent ownership interest in IEnova Pipelines.

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