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REGULATORY MATTERS (Tables) | 12 Months Ended
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Dec. 31, 2023
Regulated Operations [Abstract] |
Schedule of Regulatory Assets | We show the details of regulatory assets and liabilities in the following table and discuss them below. With the exception of regulatory balancing accounts, we generally do not earn a return on our regulatory assets until such time as a related cash expenditure has been made. Upon the occurrence of a cash expenditure associated with a regulatory asset, the related amounts are recoverable through a regulatory account mechanism for which we earn a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate. The periods during which we recognize a regulatory asset while we do not earn a return vary by regulatory asset.
REGULATORY ASSETS (LIABILITIES) AT DECEMBER 31 |  |  |  |  |  |  |  |
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |
| Sempra |  | SDG&E |  | SoCalGas
| 2023 |  | 2022 |  | 2023 |  | 2022 |  | 2023 |  | 2022
Fixed-price contracts and other derivatives | $ | 215 |  |  | $ | (56) |  |  | $ | 14 |  |  | $ | (110) |  |  | $ | 201 |  |  | $ | 54 |
Deferred income taxes recoverable in rates | 1,142 |  |  | 535 |  |  | 626 |  |  | 296 |  |  | 430 |  |  | 161 |
Pension and PBOP plan obligations | (212) |  |  | (159) |  |  | 48 |  |  | 11 |  |  | (260) |  |  | (170) |
Employee benefit costs | 24 |  |  | 29 |  |  | 3 |  |  | 5 |  |  | 21 |  |  | 24 |
Removal obligations | (3,082) |  |  | (2,864) |  |  | (2,468) |  |  | (2,248) |  |  | (614) |  |  | (616) |
Environmental costs | 139 |  |  | 145 |  |  | 105 |  |  | 107 |  |  | 34 |  |  | 38 |
Sunrise Powerlink fire mitigation | 124 |  |  | 123 |  |  | 124 |  |  | 123 |  |  | — |  |  | — |
Regulatory balancing accounts(1)(2): |  |  |  |  |  |  |  |  |  |  |
Commodity – electric | (233) |  |  | 220 |  |  | (233) |  |  | 220 |  |  | — |  |  | — |
Commodity – gas, including transportation | (259) |  |  | (197) |  |  | 52 |  |  | 60 |  |  | (311) |  |  | (257) |
Safety and reliability | 959 |  |  | 682 |  |  | 207 |  |  | 107 |  |  | 752 |  |  | 575 |
Public purpose programs | (273) |  |  | (227) |  |  | (144) |  |  | (69) |  |  | (129) |  |  | (158) |
Wildfire mitigation plan | 685 |  |  | 375 |  |  | 685 |  |  | 375 |  |  | — |  |  | — |
Liability insurance premium | 113 |  |  | 122 |  |  | 90 |  |  | 99 |  |  | 23 |  |  | 23 |
Other balancing accounts | 373 |  |  | 65 |  |  | (152) |  |  | (50) |  |  | 525 |  |  | 115 |
Other regulatory (liabilities) assets, net(2) | (10) |  |  | 301 |  |  | 49 |  |  | 132 |  |  | (58) |  |  | 169 |
Total | $ | (295) |  |  | $ | (906) |  |  | $ | (994) |  |  | $ | (942) |  |  | $ | 614 |  |  | $ | (42) |
(1) At December 31, 2023 and 2022, the noncurrent portion of regulatory balancing accounts – net undercollected for Sempra was $1,913 and $1,254, respectively, for SDG&E was $950 and $562, respectively, and for SoCalGas was $963 and $692, respectively. (2) Includes regulatory assets earning a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate.
Schedule of Regulatory Liabilities | We show the details of regulatory assets and liabilities in the following table and discuss them below. With the exception of regulatory balancing accounts, we generally do not earn a return on our regulatory assets until such time as a related cash expenditure has been made. Upon the occurrence of a cash expenditure associated with a regulatory asset, the related amounts are recoverable through a regulatory account mechanism for which we earn a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate. The periods during which we recognize a regulatory asset while we do not earn a return vary by regulatory asset.
REGULATORY ASSETS (LIABILITIES) AT DECEMBER 31 |  |  |  |  |  |  |  |
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |
| Sempra |  | SDG&E |  | SoCalGas
| 2023 |  | 2022 |  | 2023 |  | 2022 |  | 2023 |  | 2022
Fixed-price contracts and other derivatives | $ | 215 |  |  | $ | (56) |  |  | $ | 14 |  |  | $ | (110) |  |  | $ | 201 |  |  | $ | 54 |
Deferred income taxes recoverable in rates | 1,142 |  |  | 535 |  |  | 626 |  |  | 296 |  |  | 430 |  |  | 161 |
Pension and PBOP plan obligations | (212) |  |  | (159) |  |  | 48 |  |  | 11 |  |  | (260) |  |  | (170) |
Employee benefit costs | 24 |  |  | 29 |  |  | 3 |  |  | 5 |  |  | 21 |  |  | 24 |
Removal obligations | (3,082) |  |  | (2,864) |  |  | (2,468) |  |  | (2,248) |  |  | (614) |  |  | (616) |
Environmental costs | 139 |  |  | 145 |  |  | 105 |  |  | 107 |  |  | 34 |  |  | 38 |
Sunrise Powerlink fire mitigation | 124 |  |  | 123 |  |  | 124 |  |  | 123 |  |  | — |  |  | — |
Regulatory balancing accounts(1)(2): |  |  |  |  |  |  |  |  |  |  |
Commodity – electric | (233) |  |  | 220 |  |  | (233) |  |  | 220 |  |  | — |  |  | — |
Commodity – gas, including transportation | (259) |  |  | (197) |  |  | 52 |  |  | 60 |  |  | (311) |  |  | (257) |
Safety and reliability | 959 |  |  | 682 |  |  | 207 |  |  | 107 |  |  | 752 |  |  | 575 |
Public purpose programs | (273) |  |  | (227) |  |  | (144) |  |  | (69) |  |  | (129) |  |  | (158) |
Wildfire mitigation plan | 685 |  |  | 375 |  |  | 685 |  |  | 375 |  |  | — |  |  | — |
Liability insurance premium | 113 |  |  | 122 |  |  | 90 |  |  | 99 |  |  | 23 |  |  | 23 |
Other balancing accounts | 373 |  |  | 65 |  |  | (152) |  |  | (50) |  |  | 525 |  |  | 115 |
Other regulatory (liabilities) assets, net(2) | (10) |  |  | 301 |  |  | 49 |  |  | 132 |  |  | (58) |  |  | 169 |
Total | $ | (295) |  |  | $ | (906) |  |  | $ | (994) |  |  | $ | (942) |  |  | $ | 614 |  |  | $ | (42) |
(1) At December 31, 2023 and 2022, the noncurrent portion of regulatory balancing accounts – net undercollected for Sempra was $1,913 and $1,254, respectively, for SDG&E was $950 and $562, respectively, and for SoCalGas was $963 and $692, respectively. (2) Includes regulatory assets earning a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate.
Schedule of Regulated Operations | The following table summarizes the location of balances related to the Wildfire Fund on Sempra’s and SDG&E’s Consolidated Balance Sheets.
WILDFIRE FUND
(Dollars in millions)
|  |  |  | December 31,
| Location |  |  | 2023 |  | 2022
Wildfire Fund asset: |  |  |  |  |  |
Current | Prepaid Expenses |  |  | $ | 28 |  |  | $ | 29 |
Noncurrent | Wildfire Fund |  |  | 269 |  |  | 303 |
Wildfire Fund obligation: |  |  |  |  |  |
Current | Other Current Liabilities |  |  | 13 |  |  | 13 |
Noncurrent | Deferred Credits and Other |  |  | 42 |  |  | 53 |
The CPUC approved the following cost of capital for SDG&E and SoCalGas that became effective on January 1, 2020 and remained in effect through December 31, 2022.
AUTHORIZED COST OF CAPITAL FOR 2020 – 2022
SDG&E |  | SoCalGas
Authorized weighting | Return on rate base | Weighted return on rate base |  | Authorized weighting | Return on rate base | Weighted return on rate base
45.25 | % | 4.59 | % | 2.08 | % | Long-Term Debt | 45.60 | % | 4.23 | % | 1.93 | %
2.75 |  | 6.22 |  | 0.17 |  | Preferred Equity | 2.40 |  | 6.00 |  | 0.14 |
52.00 |  | 10.20 |  | 5.30 |  | Common Equity | 52.00 |  | 10.05 |  | 5.23 |
100.00 | % |  | 7.55 | % |  | 100.00 | % |  | 7.30 | %
AUTHORIZED COST OF CAPITAL FOR 2023
SDG&E |  | SoCalGas
Authorized weighting | Return on rate base | Weighted return on rate base(1) |  | Authorized weighting | Return on rate base | Weighted return on rate base
45.25 | % | 4.05 | % | 1.83 | % | Long-Term Debt | 45.60 | % | 4.07 | % | 1.86 | %
2.75 |  | 6.22 |  | 0.17 |  | Preferred Equity | 2.40 |  | 6.00 |  | 0.14 |
52.00 |  | 9.95 |  | 5.17 |  | Common Equity | 52.00 |  | 9.80 |  | 5.10 |
100.00 | % |  | 7.18 | % |  | 100.00 | % |  | 7.10 | %
(1) Total weighted return on rate base does not sum due to rounding differences. For the measurement period that ended on September 30, 2023, SDG&E’s CCM benchmark rate was 4.367% based on Moody’s Baa- utility bond index and SoCalGas’ CCM benchmark rate was 4.074% based on Moody’s A- utility bond index. The actual average rate during the measurement period was 5.777% for SDG&E and 5.472% for SoCalGas. As such, the CCM was triggered for SDG&E and SoCalGas on September 30, 2023. In December 2023, the CPUC approved increases to SDG&E’s and SoCalGas’ authorized rates of return effective January 1, 2024, which will remain in effect through December 31, 2025, subject to the CCM. In January 2024, several parties submitted a request for the CPUC to review such approval.
AUTHORIZED COST OF CAPITAL FOR 2024 – 2025
SDG&E |  | SoCalGas
Authorized weighting | Return on rate base | Weighted return on rate base |  | Authorized weighting | Return on rate base | Weighted return on rate base
45.25 | % | 4.34 | % | 1.96 | % | Long-Term Debt | 45.60 | % | 4.54 | % | 2.07 | %
2.75 |  | 6.22 |  | 0.17 |  | Preferred Equity | 2.40 |  | 6.00 |  | 0.14 |
52.00 |  | 10.65 |  | 5.54 |  | Common Equity | 52.00 |  | 10.50 |  | 5.46 |
100.00 | % |  | 7.67 | % |  | 100.00 | % |  | 7.67 | %

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