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FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended
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Sep. 30, 2023
Fair Value Disclosures [Abstract] |
Recurring Fair Value Measures |
RECURRING FAIR VALUE MEASURES – SEMPRA
(Dollars in millions)
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| Fair value at September 30, 2023
Assets: |  |  |  |  |  |  |
Nuclear decommissioning trusts: |  |  |  |  |  |  |
Short-term investments, primarily cash equivalents | $ | 21 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 24 |
Equity securities | 291 |  |  | 4 |  |  | — |  |  | 295 |
Debt securities: |  |  |  |  |  |  |
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 27 |  |  | 16 |  |  | — |  |  | 43 |
Municipal bonds | — |  |  | 260 |  |  | — |  |  | 260 |
Other securities | — |  |  | 216 |  |  | — |  |  | 216 |
Total debt securities | 27 |  |  | 492 |  |  | — |  |  | 519 |
Total nuclear decommissioning trusts(1) | 339 |  |  | 499 |  |  | — |  |  | 838 |
Short-term investments held in Rabbi Trust | 62 |  |  | — |  |  | — |  |  | 62 |
Interest rate instruments | — |  |  | 378 |  |  | — |  |  | 378 |
Foreign exchange instruments | — |  |  | 1 |  |  | — |  |  | 1 |
Commodity contracts not subject to rate recovery | — |  |  | 12 |  |  | — |  |  | 12 |
Effect of netting and allocation of collateral(2) | 89 |  |  | — |  |  | — |  |  | 89 |
Commodity contracts subject to rate recovery | — |  |  | — |  |  | 18 |  |  | 18 |
Effect of netting and allocation of collateral(2) | 76 |  |  | — |  |  | 6 |  |  | 82 |
Support Agreement, net of related guarantee fees | — |  |  | — |  |  | 18 |  |  | 18 |
Total | $ | 566 |  |  | $ | 890 |  |  | $ | 42 |  |  | $ | 1,498 |
Liabilities: |  |  |  |  |  |  |
Foreign exchange instruments | $ | — |  |  | $ | 8 |  |  | $ | — |  |  | $ | 8 |
Commodity contracts not subject to rate recovery | — |  |  | 13 |  |  | — |  |  | 13 |
Commodity contracts subject to rate recovery | 2 |  |  | 156 |  |  | — |  |  | 158 |
Effect of netting and allocation of collateral(2) | (1) |  |  | — |  |  | — |  |  | (1) |
Total | $ | 1 |  |  | $ | 177 |  |  | $ | — |  |  | $ | 178 |
(1) Excludes receivables (payables), net. (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 – SEMPRA (CONTINUED)
(Dollars in millions)
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| Fair value at December 31, 2022
Assets: |  |  |  |  |  |  |
Nuclear decommissioning trusts: |  |  |  |  |  |  |
Short-term investments, primarily cash equivalents | $ | 10 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 11 |
Equity securities | 293 |  |  | 4 |  |  | — |  |  | 297 |
Debt securities: |  |  |  |  |  |  |
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 27 |  |  | 13 |  |  | — |  |  | 40 |
Municipal bonds | — |  |  | 270 |  |  | — |  |  | 270 |
Other securities | — |  |  | 227 |  |  | — |  |  | 227 |
Total debt securities | 27 |  |  | 510 |  |  | — |  |  | 537 |
Total nuclear decommissioning trusts(1) | 330 |  |  | 515 |  |  | — |  |  | 845 |
Short-term investments held in Rabbi Trust | 55 |  |  | — |  |  | — |  |  | 55 |
Interest rate instruments | — |  |  | 76 |  |  | — |  |  | 76 |
Commodity contracts not subject to rate recovery | — |  |  | 273 |  |  | — |  |  | 273 |
Effect of netting and allocation of collateral(2) | 451 |  |  | — |  |  | — |  |  | 451 |
Commodity contracts subject to rate recovery | 82 |  |  | 19 |  |  | 35 |  |  | 136 |
Effect of netting and allocation of collateral(2) | 12 |  |  | — |  |  | 6 |  |  | 18 |
Support Agreement, net of related guarantee fees | — |  |  | — |  |  | 17 |  |  | 17 |
Total | $ | 930 |  |  | $ | 883 |  |  | $ | 58 |  |  | $ | 1,871 |
Liabilities: |  |  |  |  |  |  |
Foreign exchange instruments | $ | — |  |  | $ | 8 |  |  | $ | — |  |  | $ | 8 |
Interest rate and foreign exchange instruments | — |  |  | 105 |  |  | — |  |  | 105 |
Commodity contracts not subject to rate recovery | — |  |  | 191 |  |  | — |  |  | 191 |
Commodity contracts subject to rate recovery | — |  |  | 70 |  |  | — |  |  | 70 |
Total | $ | — |  |  | $ | 374 |  |  | $ | — |  |  | $ | 374 |
1) Excludes receivables (payables), net. (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)
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| Fair value at September 30, 2023
Assets: |  |  |  |  |  |  |
Nuclear decommissioning trusts: |  |  |  |  |  |  |
Short-term investments, primarily cash equivalents | $ | 21 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 24 |
Equity securities | 291 |  |  | 4 |  |  | — |  |  | 295 |
Debt securities: |  |  |  |  |  |  |
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 27 |  |  | 16 |  |  | — |  |  | 43 |
Municipal bonds | — |  |  | 260 |  |  | — |  |  | 260 |
Other securities | — |  |  | 216 |  |  | — |  |  | 216 |
Total debt securities | 27 |  |  | 492 |  |  | — |  |  | 519 |
Total nuclear decommissioning trusts(1) | 339 |  |  | 499 |  |  | — |  |  | 838 |
Commodity contracts subject to rate recovery | — |  |  | — |  |  | 18 |  |  | 18 |
Effect of netting and allocation of collateral(2) | 74 |  |  | — |  |  | 6 |  |  | 80 |
Total | $ | 413 |  |  | $ | 499 |  |  | $ | 24 |  |  | $ | 936 |
Liabilities: |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
Effect of netting and allocation of collateral(2) | (1) |  |  | — |  |  | — |  |  | (1) |
Total | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
| Fair value at December 31, 2022
Assets: |  |  |  |  |  |  |
Nuclear decommissioning trusts: |  |  |  |  |  |  |
Short-term investments, primarily cash equivalents | $ | 10 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 11 |
Equity securities | 293 |  |  | 4 |  |  | — |  |  | 297 |
Debt securities: |  |  |  |  |  |  |
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 27 |  |  | 13 |  |  | — |  |  | 40 |
Municipal bonds | — |  |  | 270 |  |  | — |  |  | 270 |
Other securities | — |  |  | 227 |  |  | — |  |  | 227 |
Total debt securities | 27 |  |  | 510 |  |  | — |  |  | 537 |
Total nuclear decommissioning trusts(1) | 330 |  |  | 515 |  |  | — |  |  | 845 |
Commodity contracts subject to rate recovery | 82 |  |  | 3 |  |  | 35 |  |  | 120 |
Effect of netting and allocation of collateral(2) | 11 |  |  | — |  |  | 6 |  |  | 17 |
Total | $ | 423 |  |  | $ | 518 |  |  | $ | 41 |  |  | $ | 982 |
Liabilities: |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |
Total | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |
(1) Excludes receivables (payables), net. (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)
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| Fair value at September 30, 2023
Assets: |  |  |  |  |  |  |
Effect of netting and allocation of collateral(1) | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
Total | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
Liabilities: |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | $ | — |  |  | $ | 156 |  |  | $ | — |  |  | $ | 156 |
Total | $ | — |  |  | $ | 156 |  |  | $ | — |  |  | $ | 156 |
| Fair value at December 31, 2022
Assets: |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | $ | — |  |  | $ | 16 |  |  | $ | — |  |  | $ | 16 |
Effect of netting and allocation of collateral(1) | 1 |  |  | — |  |  | — |  |  | 1 |
Total | $ | 1 |  |  | $ | 16 |  |  | $ | — |  |  | $ | 17 |
Liabilities: |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | $ | — |  |  | $ | 69 |  |  | $ | — |  |  | $ | 69 |
Total | $ | — |  |  | $ | 69 |  |  | $ | — |  |  | $ | 69 |
(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 | The table below 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 and SDG&E.
LEVEL 3 RECONCILIATIONS(1)
(Dollars in millions)
| Three months ended September 30,
| 2023 |  | 2022
Balance at July 1 | $ | 20 |  |  | $ | 33 |
Realized and unrealized losses | (2) |  |  | (35) |
Allocated transmission instruments | 1 |  |  | 2 |
Settlements | (1) |  |  | 33 |
Balance at September 30 | $ | 18 |  |  | $ | 33 |
Change in unrealized gains relating to instruments still held at September 30 | $ | 1 |  |  | $ | 3 |
| Nine months ended September 30,
| 2023 |  | 2022
Balance at January 1 | $ | 35 |  |  | $ | 54 |
Realized and unrealized losses | (10) |  |  | (58) |
Allocated transmission instruments | (1) |  |  | (4) |
Settlements | (6) |  |  | 41 |
Balance at September 30 | $ | 18 |  |  | $ | 33 |
Change in unrealized losses relating to instruments still held at September 30 | $ | (8) |  |  | $ | (15) |
(1) Excludes the effect of the contractual ability to settle contracts under master netting agreements. The table below sets forth reconciliations of changes in the fair value of Sempra’s Support Agreement for the benefit of CFIN classified as Level 3 in the fair value hierarchy for Sempra.
LEVEL 3 RECONCILIATIONS
(Dollars in millions)
| Three months ended September 30,
| 2023 |  | 2022
Balance at July 1 | $ | 23 |  |  | $ | 16 |
Realized and unrealized (losses) gains(1) | (3) |  |  | 2 |
Settlements | (2) |  |  | (2) |
Balance at September 30(2) | $ | 18 |  |  | $ | 16 |
Change in unrealized (losses) gains relating to instruments still held at September 30 | $ | (2) |  |  | $ | 2 |
| Nine months ended September 30,
| 2023 |  | 2022
Balance at January 1 | $ | 17 |  |  | $ | 7 |
Realized and unrealized gains(1) | 7 |  |  | 16 |
Settlements | (6) |  |  | (7) |
Balance at September 30(2) | $ | 18 |  |  | $ | 16 |
Change in unrealized gains relating to instruments still held at September 30 | $ | 7 |  |  | $ | 15 |
(1) Net gains are included in Interest Income and net losses are included in Interest Expense on Sempra’s Condensed Consolidated Statements of Operations. (2) Includes $7 in Other Current Assets and $11 in Other Long-term Assets at September 30, 2023 on Sempra’s Condensed Consolidated Balance Sheet.
Schedule of Fair Value 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
2023 | $ | (3.09) |  | to | $ | 10.71 |  |  | $ | (0.56) |
2022 | (3.67) |  | to | 6.96 |  |  | (0.70) |
Fair Value of Financial Instruments | 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.
FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
| Carrying amount |  | Fair value
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total
| September 30, 2023
Sempra: |  |  |  |  |  |  |  |  |
Long-term note receivable(1) | $ | 330 |  |  | $ | — |  |  | $ | — |  |  | $ | 295 |  |  | $ | 295 |
Long-term amounts due to unconsolidated affiliates | 308 |  |  | — |  |  | 269 |  |  | — |  |  | 269 |
Total long-term debt(2) | 27,657 |  |  | — |  |  | 23,765 |  |  | — |  |  | 23,765 |
SDG&E: |  |  |  |  |  |  |  |  |
Total long-term debt(3) | $ | 8,750 |  |  | $ | — |  |  | $ | 7,202 |  |  | $ | — |  |  | $ | 7,202 |
SoCalGas: |  |  |  |  |  |  |  |  |
Total long-term debt(4) | $ | 6,759 |  |  | $ | — |  |  | $ | 5,953 |  |  | $ | — |  |  | $ | 5,953 |
| December 31, 2022
Sempra: |  |  |  |  |  |  |  |  |
Long-term note receivable(1) | $ | 318 |  |  | $ | — |  |  | $ | — |  |  | $ | 286 |  |  | $ | 286 |
Long-term amounts due to unconsolidated affiliates | 301 |  |  | — |  |  | 263 |  |  | — |  |  | 263 |
Total long-term debt(2) | 24,513 |  |  | — |  |  | 21,549 |  |  | — |  |  | 21,549 |
SDG&E: |  |  |  |  |  |  |  |  |
Total long-term debt(3) | $ | 7,800 |  |  | $ | — |  |  | $ | 6,726 |  |  | $ | — |  |  | $ | 6,726 |
SoCalGas: |  |  |  |  |  |  |  |  |
Total long-term debt(4) | $ | 6,059 |  |  | $ | — |  |  | $ | 5,538 |  |  | $ | — |  |  | $ | 5,538 |
(1) Before allowances for credit losses of $6 and $7 at September 30, 2023 and December 31, 2022, respectively. Excludes unamortized transaction costs of $4 and $5 at September 30, 2023 and December 31, 2022, respectively. (2) Before reductions of unamortized discount and debt issuance costs of $326 and $289 at September 30, 2023 and December 31, 2022, respectively, and excluding finance lease obligations of $1,346 and $1,343 at September 30, 2023 and December 31, 2022, respectively. (3) Before reductions of unamortized discount and debt issuance costs of $90 and $70 at September 30, 2023 and December 31, 2022, respectively, and excluding finance lease obligations of $1,234 and $1,256 at September 30, 2023 and December 31, 2022, respectively. (4) Before reductions of unamortized discount and debt issuance costs of $57 and $48 at September 30, 2023 and December 31, 2022, respectively, and excluding finance lease obligations of $112 and $87 at September 30, 2023 and December 31, 2022, respectively.

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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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