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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended
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Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Commodity Derivative Volumes Table | The following table summarizes net energy derivative volumes.
NET ENERGY DERIVATIVE VOLUMES
(Quantities in millions)
Commodity | Unit of measure |  | March 31, 2019 |  | December 31, 2018
Sempra Energy Consolidated: |  |  |  |  |
Natural gas | MMBtu |  | 33 |  |  | 35 |
Electricity | MWh |  | 2 |  |  | 2 |
Congestion revenue rights | MWh |  | 50 |  |  | 52 |
SDG&E: |  |  |  |  |
Natural gas | MMBtu |  | 32 |  |  | 33 |
Electricity | MWh |  | 2 |  |  | 2 |
Congestion revenue rights | MWh |  | 50 |  |  | 52 |
Notional Amounts of Derivatives Table | The following table presents the net notional amounts of our foreign currency derivatives, excluding JVs.
FOREIGN CURRENCY DERIVATIVES
(Dollars in millions)
| March 31, 2019 |  | December 31, 2018
| Notional amount |  | Maturities |  | Notional amount |  | Maturities
Sempra Energy Consolidated: |  |  |  |  |  |  |
Cross-currency swaps | $ | 306 |  |  | 2019-2023 |  | $ | 306 |  |  | 2019-2023
Other foreign currency derivatives | 1,084 |  |  | 2019-2020 |  | 1,158 |  |  | 2019-2020
The following table presents the net notional amounts of our interest rate derivatives, excluding JVs.
INTEREST RATE DERIVATIVES
(Dollars in millions)
| March 31, 2019 |  | December 31, 2018
| Notional debt |  | Maturities |  | Notional debt |  | Maturities
Sempra Energy Consolidated: |  |  |  |  |  |  |
Cash flow hedges(1) | $ | 1,430 |  |  | 2019-2032 |  | $ | 594 |  |  | 2019-2032
SDG&E: |  |  |  |  |  |  |
Cash flow hedge(1) | 142 |  |  | 2019 |  | 142 |  |  | 2019
(1) | Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. In December 2018, OMEC LLC entered into new floating-to-fixed interest rate swaps with notional amounts of $159 million effective April 30, 2019 through October 31, 2019, and a swaption with a notional amount of $142 million effective October 31, 2019 through October 31, 2023.
Derivative Instruments on the Condensed Consolidated Balance Sheets Table | The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets, including the amount of cash collateral receivables that were not offset, as the cash collateral was in excess of liability positions.
DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
| March 31, 2019
| Current assets: Other(1) |  | Other assets: Sundry |  | Current liabilities: Other |  | Deferred credits and other liabilities: Deferred credits and other
Sempra Energy Consolidated: |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Interest rate and foreign exchange instruments(2) | $ | — |  |  | $ | — |  |  | $ | (5 | ) |  | $ | (146 | )
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Foreign exchange instruments | 12 |  |  | — |  |  | — |  |  | — |
Commodity contracts not subject to rate recovery | 58 |  |  | 6 |  |  | (65 | ) |  | (5 | )
Associated offsetting commodity contracts | (47 | ) |  | (2 | ) |  | 47 |  |  | 2 |
Commodity contracts subject to rate recovery | 50 |  |  | 236 |  |  | (41 | ) |  | (65 | )
Associated offsetting commodity contracts | (5 | ) |  | (2 | ) |  | 5 |  |  | 2 |
Associated offsetting cash collateral | — |  |  | — |  |  | 3 |  |  | 3 |
Net amounts presented on the balance sheet | 68 |  |  | 238 |  |  | (56 | ) |  | (209 | )
Additional cash collateral for commodity contracts not subject to rate recovery | 25 |  |  | — |  |  | — |  |  | — |
Additional cash collateral for commodity contracts subject to rate recovery | 26 |  |  | — |  |  | — |  |  | — |
Total(3) | $ | 119 |  |  | $ | 238 |  |  | $ | (56 | ) |  | $ | (209 | )
SDG&E: |  |  |  |  |  |  |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | $ | 45 |  |  | $ | 234 |  |  | $ | (37 | ) |  | $ | (65 | )
Associated offsetting commodity contracts | (5 | ) |  | (2 | ) |  | 5 |  |  | 2 |
Associated offsetting cash collateral | — |  |  | — |  |  | 3 |  |  | 3 |
Net amounts presented on the balance sheet | 40 |  |  | 232 |  |  | (29 | ) |  | (60 | )
Additional cash collateral for commodity contracts subject to rate recovery | 25 |  |  | — |  |  | — |  |  | — |
Total(3) | $ | 65 |  |  | $ | 232 |  |  | $ | (29 | ) |  | $ | (60 | )
SoCalGas: |  |  |  |  |  |  |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | $ | 5 |  |  | $ | 2 |  |  | $ | (4 | ) |  | $ | — |
Net amounts presented on the balance sheet | 5 |  |  | 2 |  |  | (4 | ) |  | — |
Additional cash collateral for commodity contracts subject to rate recovery | 1 |  |  | — |  |  | — |  |  | — |
Total | $ | 6 |  |  | $ | 2 |  |  | $ | (4 | ) |  | $ | — |
(1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Includes a negligible amount for Otay Mesa VIE. (3) Normal purchase contracts previously measured at fair value are excluded.
DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
| December 31, 2018
| Current assets: Other(1) |  | Other assets: Sundry |  | Current liabilities: Other |  | Deferred credits and other liabilities: Deferred credits and other
Sempra Energy Consolidated: |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Interest rate and foreign exchange instruments(2) | $ | 2 |  |  | $ | — |  |  | $ | (3 | ) |  | $ | (147 | )
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Commodity contracts not subject to rate recovery | 153 |  |  | 7 |  |  | (164 | ) |  | (6 | )
Associated offsetting commodity contracts | (133 | ) |  | (3 | ) |  | 133 |  |  | 3 |
Commodity contracts subject to rate recovery | 64 |  |  | 233 |  |  | (42 | ) |  | (72 | )
Associated offsetting commodity contracts | (6 | ) |  | (2 | ) |  | 6 |  |  | 2 |
Associated offsetting cash collateral | — |  |  | — |  |  | — |  |  | 2 |
Net amounts presented on the balance sheet | 80 |  |  | 235 |  |  | (70 | ) |  | (218 | )
Additional cash collateral for commodity contracts not subject to rate recovery | 19 |  |  | — |  |  | — |  |  | — |
Additional cash collateral for commodity contracts subject to rate recovery | 33 |  |  | — |  |  | — |  |  | — |
Total(3) | $ | 132 |  |  | $ | 235 |  |  | $ | (70 | ) |  | $ | (218 | )
SDG&E: |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Interest rate instruments(2) | $ | — |  |  | $ | — |  |  | $ | (1 | ) |  | $ | — |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | 60 |  |  | 233 |  |  | (37 | ) |  | (72 | )
Associated offsetting commodity contracts | (6 | ) |  | (2 | ) |  | 6 |  |  | 2 |
Associated offsetting cash collateral | — |  |  | — |  |  | — |  |  | 2 |
Net amounts presented on the balance sheet | 54 |  |  | 231 |  |  | (32 | ) |  | (68 | )
Additional cash collateral for commodity contracts subject to rate recovery | 28 |  |  | — |  |  | — |  |  | — |
Total(3) | $ | 82 |  |  | $ | 231 |  |  | $ | (32 | ) |  | $ | (68 | )
SoCalGas: |  |  |  |  |  |  |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | $ | 4 |  |  | $ | — |  |  | $ | (5 | ) |  | $ | — |
Net amounts presented on the balance sheet | 4 |  |  | — |  |  | (5 | ) |  | — |
Additional cash collateral for commodity contracts subject to rate recovery | 5 |  |  | — |  |  | — |  |  | — |
Total | $ | 9 |  |  | $ | — |  |  | $ | (5 | ) |  | $ | — |
(1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. (3) Normal purchase contracts previously measured at fair value are excluded.
Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table | The table below includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI:
CASH FLOW HEDGE IMPACTS
(Dollars in millions)
| Pretax gain (loss) recognized in OCI |  |  |  | Pretax gain (loss) reclassified from AOCI into earnings
| Three months ended March 31, |  |  |  | Three months ended March 31,
| 2019 |  | 2018 |  | Location |  | 2019 |  | 2018
Sempra Energy Consolidated: |  |  |  |  |  |  |  |  |
Interest rate and foreign exchange instruments(1) | $ | (3 | ) |  | $ | 54 |  |  | Interest Expense |  | $ | (1 | ) |  | $ | 2 |
|  |  |  |  | Other Income, Net |  | 3 |  |  | 18 |
Interest rate and foreign exchange instruments | (68 | ) |  | 70 |  |  | Equity Earnings (Losses) |  | (1 | ) |  | (4 | )
Foreign exchange instruments | (3 | ) |  | (7 | ) |  | Revenues: Energy- Related Businesses |  | (1 | ) |  | — |
Total | $ | (74 | ) |  | $ | 117 |  |  |  |  | $ | — |  |  | $ | 16 |
SDG&E: |  |  |  |  |  |  |  |  |
Interest rate instruments(1) | $ | — |  |  | $ | 1 |  |  | Interest Expense |  | $ | (1 | ) |  | $ | (3 | )
(1) | Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE.
Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table | The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations.
UNDESIGNATED DERIVATIVE IMPACTS
(Dollars in millions)
|  | Pretax gain (loss) on derivatives recognized in earnings
|  | Three months ended March 31,
| Location | 2019 |  | 2018
Sempra Energy Consolidated: |  |  |  |
Foreign exchange instruments | Other Income, Net | $ | 10 |  |  | $ | 44 |
Commodity contracts not subject to rate recovery | Revenues: Energy-Related Businesses | — |  |  | (9 | )
Commodity contracts subject to rate recovery | Cost of Electric Fuel and Purchased Power | 2 |  |  | 2 |
Commodity contracts subject to rate recovery | Cost of Natural Gas | 2 |  |  | 1 |
Total |  | $ | 14 |  |  | $ | 38 |
SDG&E: |  |  |  |
Commodity contracts subject to rate recovery | Cost of Electric Fuel and Purchased Power | $ | 2 |  |  | $ | 2 |
SoCalGas: |  |  |  |
Commodity contracts subject to rate recovery | Cost of Natural Gas | $ | 2 |  |  | $ | 1 |

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