XML 62 R33.htm IDEA: XBRL DOCUMENT
v3.26.1

SAN ONOFRE NUCLEAR GENERATING STATION | 6 Months Ended
--- | ---
Jun. 30, 2026
Regulated Operations [Abstract] |
SAN ONOFRE NUCLEAR GENERATING STATION | REGULATORY MATTERS We discuss regulatory matters in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report and provide updates to those discussions and information about new regulatory matters below. REGULATORY ASSETS AND LIABILITIES With the exception of regulatory balancing accounts, we generally do not earn a return on our regulatory assets until 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) |  |  |  |  |  |  |  |
(Dollars in millions) |  |  |  |  |  |  |  |
| Sempra |  | SDG&E |  | SoCalGas
| June 30, 2026 |  | December 31, 2025 |  | June 30, 2026 |  | December 31, 2025 |  | June 30, 2026 |  | December 31, 2025
Fixed-price contracts and other derivatives | $ | 13 |  |  | $ | 50 |  |  | $ | (2) |  |  | $ | 7 |  |  | $ | 15 |  |  | $ | 43 |
Deferred income taxes recoverable in rates(1) | 2,574 |  |  | 2,314 |  |  | 1,161 |  |  | 1,098 |  |  | 1,377 |  |  | 1,189 |
Pension and PBOP plan obligations | (557) |  |  | (610) |  |  | 16 |  |  | (1) |  |  | (573) |  |  | (609) |
Employee benefit costs | 18 |  |  | 18 |  |  | 3 |  |  | 3 |  |  | 15 |  |  | 15 |
Removal obligations | (3,671) |  |  | (3,540) |  |  | (3,057) |  |  | (2,913) |  |  | (614) |  |  | (627) |
Environmental costs | 151 |  |  | 152 |  |  | 113 |  |  | 113 |  |  | 38 |  |  | 39 |
Sunrise Powerlink fire mitigation | 123 |  |  | 125 |  |  | 123 |  |  | 125 |  |  | — |  |  | — |
Regulatory balancing accounts(2)(3): |  |  |  |  |  |  |  |  |  |  |
Commodity – electric | 279 |  |  | 186 |  |  | 279 |  |  | 186 |  |  | — |  |  | — |
Commodity – gas, including transportation | 468 |  |  | 173 |  |  | 47 |  |  | 17 |  |  | 421 |  |  | 156 |
Safety and reliability | 916 |  |  | 894 |  |  | 298 |  |  | 286 |  |  | 618 |  |  | 608 |
Public purpose programs | (326) |  |  | (347) |  |  | (128) |  |  | (175) |  |  | (198) |  |  | (172) |
2024 GRC retroactive impacts | 44 |  |  | 299 |  |  | 17 |  |  | 124 |  |  | 27 |  |  | 175 |
Wildfire mitigation plan | 615 |  |  | 530 |  |  | 615 |  |  | 530 |  |  | — |  |  | — |
Liability insurance premium | (51) |  |  | (62) |  |  | (58) |  |  | (53) |  |  | 7 |  |  | (9) |
Other balancing accounts | (237) |  |  | 90 |  |  | (219) |  |  | 4 |  |  | (18) |  |  | 86 |
Other regulatory assets (liabilities), net(3) | 50 |  |  | 104 |  |  | 59 |  |  | 72 |  |  | (9) |  |  | 32 |
Total | $ | 409 |  |  | $ | 376 |  |  | $ | (733) |  |  | $ | (577) |  |  | $ | 1,106 |  |  | $ | 926 |
(1) At June 30, 2026 and December 31, 2025, $56 and $54, respectively, is included in Assets Held for Sale on the Sempra Condensed Consolidated Balance Sheets. (2) At June 30, 2026 and December 31, 2025, the noncurrent portion of regulatory balancing accounts – net undercollected for Sempra is $1,218 and $1,060, respectively, for SDG&E is $528 and $502, respectively, and for SoCalGas is $690 and $558, respectively. (3) Includes regulatory assets earning a return authorized by applicable regulators, which generally approximates the three-month commercial paper rate. Catastrophic Event Memorandum Account In July 2025, the CPUC issued an FD that authorized partial recovery of costs recorded in SoCalGas’ Catastrophic Event Memorandum Account. The FD authorized the recovery of $19 million out of the requested $55 million, denying recovery of COVID-19 costs included in the Catastrophic Event Memorandum Account. The CPUC denied SoCalGas’ request for a rehearing of the FD. In February 2026, SoCalGas filed a petition with the California Court of Appeal. CPUC GRC A CPUC GRC proceeding is designed to set authorized base revenue requirements that are sufficient to allow SDG&E and SoCalGas to recover their reasonable operating costs and to provide the opportunity to realize their authorized rates of return on their capital investments. 2024 GRC In December 2024, the CPUC approved an FD in the 2024 GRC for SDG&E and SoCalGas that authorizes SDG&E’s and SoCalGas’ revenue requirements for 2024 and attrition year adjustments for 2025 through 2027, inclusively. In December 2025, SDG&E and SoCalGas filed a petition for modification of the 2024 GRC, seeking to modify the post-test year mechanism for capital related costs. The petition for modification seeks increases of $55 million, $87 million and $79 million to the approved revenue requirements for SDG&E for 2025, 2026 and 2027, respectively, and increases of $86 million, $122 million and $109 million to the approved revenue requirements for SoCalGas for 2025, 2026 and 2027, respectively. There is no established timeline for the CPUC to act on this filing. 2024 GRC Track 3 In April 2025, SDG&E and SoCalGas each submitted additional requests to the CPUC in the 2024 GRC, known as Track 3 requests. SDG&E submitted a request seeking review and recovery of its WMP costs incurred in 2023 that were in addition to the amounts authorized in the 2019 GRC. In March 2026 and amended in April and May of 2026, SDG&E provided supplemental testimony in its Track 3 request for drone inspection and repair program costs incurred from 2019 through 2022 that were transferred from its Track 2 request as a result of the Track 2 FD. The supplemental testimony seeks review and recovery of $659 million of direct WMP and drone inspection and repair program costs. In June 2026, SDG&E and three of four intervenors filed an offer of settlement with the CPUC addressing recovery of its 2023 WMP costs and 2019-2022 drone inspection and repair program costs. If approved, the settlement would reduce SDG&E’s requested revenue requirement from $766 million to $621 million. The settlement remains subject to CPUC approval, and SDG&E expects to receive an FD in the second half of 2026. Separately, SDG&E and SoCalGas submitted a combined request seeking review and recovery of $240 million of PSEP costs incurred from 2014 through 2019 and $499 million of PSEP costs incurred from 2015 through 2020, respectively. SDG&E and SoCalGas expect to receive an FD for their Track 3 requests related to their PSEP costs in the second half of 2026. Revenue requirements associated with the Track 3 requests have been recorded in regulatory accounts and any disallowances resulting from Track 3 would be recorded as an expense on the Sempra, SDG&E and SoCalGas Condensed Consolidated Statements of Operations. SDG&E and SoCalGas are authorized interim rate recovery of up to 50% of the recorded PSEP regulatory account balance at the end of each year. Such interim rate recovery is subject to refund, contingent on the reasonableness review decision for their Track 3 requests. 2028 GRC In June 2026, SDG&E and SoCalGas filed their 2028 GRC applications requesting CPUC approval of test year revenue requirements for 2028 and attrition year adjustments for 2029 through 2031 as follows:
REQUESTED REVENUE REQUIREMENTS IN 2028 GRC
(Dollars in millions)
| Test year |  | Attrition years adjustment
| 2028 |  | 2029 |  | 2030 |  | 2031
SDG&E | $ | 3,760 |  |  | $ | 327 |  | 8.7 | % |  | $ | 226 |  | 5.5 | % |  | $ | 240 |  | 5.6 | %
SoCalGas | 5,096 |  |  | 315 |  | 6.2 |  |  | 312 |  | 5.8 |  |  | 314 |  | 5.5 |
The requests in the 2028 GRC applications are subject to CPUC approval. SDG&E and SoCalGas expect to receive an FD in the first quarter of 2028 with new rates to be effective in January 2028. CPUC COST OF CAPITAL A CPUC cost of capital proceeding every three years determines a utility’s authorized capital structure and return on rate base. The CPUC applies the CCM in the interim years to consider changes in the cost of capital using changes in interest rates as reflected by the applicable utility bond index published by Moody’s (CCM benchmark rate) for each 12-month period ending September 30 (the measurement period). The index applicable to SDG&E and SoCalGas is based on each utility’s credit rating. The CCM benchmark rate is the basis of comparison to determine if the CCM is triggered in each measurement period, which occurs if the change in the applicable Moody’s utility bond index relative to the CCM benchmark rate is larger than plus or minus 1.00% for the measurement period. Alternatively, each of SDG&E and SoCalGas is permitted to file a cost of capital application to have its cost of capital determined in lieu of the CCM in an interim year in which an extraordinary or catastrophic event materially impacts its cost of capital and affects utilities differently than the market. The following table summarizes the CPUC-approved cost of capital for SDG&E and SoCalGas. The authorized weighting remained unchanged for each of the years presented.
AUTHORIZED COST OF CAPITAL
| Authorized weighting |  | 2026-2028 |  | 2025 |  | 2026-2028 |  | 2025
|  | Return on rate base |  | Weighted return on rate base
SDG&E: |  |  |  |  |  |  |  |  |
Long-Term Debt | 45.25 | % |  | 4.59 | % |  | 4.34 | % |  | 2.08 | % |  | 1.96 | %
Preferred Equity | 2.75 |  |  | 6.22 |  |  | 6.22 |  |  | 0.17 |  |  | 0.17 |
Common Equity | 52.00 |  |  | 9.93 |  |  | 10.23 |  |  | 5.16 |  |  | 5.32 |
| 100.00 | % |  |  |  |  |  | 7.41 | % |  | 7.45 | %
SoCalGas: |  |  |  |  |  |  |  |  |
Long-Term Debt | 45.60 | % |  | 5.02 | % |  | 4.63 | % |  | 2.29 | % |  | 2.11 | %
Preferred Equity | 2.40 |  |  | 6.00 |  |  | 6.00 |  |  | 0.14 |  |  | 0.14 |
Common Equity | 52.00 |  |  | 9.78 |  |  | 10.08 |  |  | 5.09 |  |  | 5.24 |
| 100.00 | % |  |  |  |  |  | 7.52 | % |  | 7.49 | %
FERC RATE MATTERS SDG&E files separately with the FERC for its authorized transmission revenue requirement, ROE and capital structure on FERC-regulated electric transmission operations and assets. TO5 Settlement SDG&E’s TO5 settlement provided for an ROE of 10.60%, consisting of a base ROE of 10.10% plus the California ISO adder. In December 2024, the FERC issued an order, which SDG&E has appealed, finding that SDG&E is not eligible for the California ISO adder and that the TO5 adder refund provision had been triggered, requiring SDG&E to refund customers the California ISO adder retroactively from June 1, 2019. TO6 Settlement In June 2026, the FERC issued an order approving the TO6 offer of settlement. The TO6 settlement is retroactively effective as of June 1, 2025, and remains in effect until terminated by a notice provided in March of any year. Among other things, the settlement increases SDG&E’s authorized base ROE from 10.10% to 10.28% and establishes a hypothetical capital structure with 54% common equity. SDG&E recognized the retroactive impact in the second quarter of 2026. The TO6 settlement does not affect SDG&E’s appeal of the FERC’s disallowance of the inclusion of the California ISO adder. SAN ONOFRE NUCLEAR GENERATING STATION We provide below updates to ongoing matters related to SONGS, a nuclear generating facility near San Clemente, California that permanently ceased operations in June 2013, and in which SDG&E has a 20% ownership interest. We discuss SONGS further in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report. NUCLEAR DECOMMISSIONING AND FUNDING As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison began the decommissioning phase of the plant. Major decommissioning work began in 2020. We expect the majority of the decommissioning work to be completed around 2030. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work for Unit 1 will be completed once Units 2 and 3 are dismantled and the spent fuel is removed from the site. The spent fuel is currently being stored on-site, until the DOE identifies an independent spent fuel storage installation and puts in place a program for the fuel’s disposal. SDG&E is responsible for approximately 20% of the total decommissioning cost. In accordance with state and federal requirements and regulations, SDG&E has assets held in the NDT to fund its share of decommissioning costs for SONGS Units 1, 2 and 3. Amounts that were collected in rates for SONGS’ decommissioning are invested in the NDT, which is comprised of externally managed trust funds. Amounts held by the NDT are invested in accordance with CPUC regulations. SDG&E classifies debt and equity securities held in the NDT as available-for-sale. The NDT assets are presented on the Sempra and SDG&E Condensed Consolidated Balance Sheets at fair value with the offsetting credits recorded in noncurrent Regulatory Liabilities. Except for the use of funds for the planning of decommissioning activities or NDT administrative costs, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs for Units 2 and 3. In January 2026, the CPUC granted SDG&E authorization to access NDT funds of up to $45 million for forecasted 2026 costs. Nuclear Decommissioning Trusts The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT on the Sempra and SDG&E Condensed Consolidated Balance Sheets. We provide additional fair value disclosures for the NDT in Note 9.
NUCLEAR DECOMMISSIONING TRUSTS |  |  |  |  |  |  |
(Dollars in millions) |  |  |  |  |  |  |
| Cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Estimated fair value
| June 30, 2026
Short-term investments, primarily cash equivalents | $ | 19 |  |  | $ | — |  |  | $ | — |  |  | $ | 19 |
Equity securities | 66 |  |  | 239 |  |  | (2) |  |  | 303 |
Debt securities: |  |  |  |  |  |  |
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies(1) | 45 |  |  | 1 |  |  | (1) |  |  | 45 |
Municipal bonds(2) | 301 |  |  | 3 |  |  | (4) |  |  | 300 |
Other securities(3) | 266 |  |  | 2 |  |  | (4) |  |  | 264 |
Total debt securities | 612 |  |  | 6 |  |  | (9) |  |  | 609 |
Receivables (payables), net | (11) |  |  | — |  |  | — |  |  | (11) |
Total | $ | 686 |  |  | $ | 245 |  |  | $ | (11) |  |  | $ | 920 |
| December 31, 2025
Short-term investments, primarily cash equivalents | $ | 12 |  |  | $ | — |  |  | $ | — |  |  | $ | 12 |
Equity securities | 69 |  |  | 221 |  |  | (2) |  |  | 288 |
Debt securities: |  |  |  |  |  |  |
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 46 |  |  | 1 |  |  | — |  |  | 47 |
Municipal bonds | 301 |  |  | 4 |  |  | (5) |  |  | 300 |
Other securities | 253 |  |  | 5 |  |  | (3) |  |  | 255 |
Total debt securities | 600 |  |  | 10 |  |  | (8) |  |  | 602 |
Receivables (payables), net | (3) |  |  | — |  |  | — |  |  | (3) |
Total | $ | 678 |  |  | $ | 231 |  |  | $ | (10) |  |  | $ | 899 |
(1) Maturity dates are 2027-2056. (2) Maturity dates are 2026-2065. (3) Maturity dates are 2026-2071. The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales.
SALES OF SECURITIES IN THE NUCLEAR DECOMMISSIONING TRUSTS
(Dollars in millions)
| Three months ended June 30, |  | Six months ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Proceeds from sales | $ | 225 |  |  | $ | 225 |  |  | $ | 516 |  |  | $ | 499 |
Gross realized gains | 11 |  |  | 21 |  |  | 20 |  |  | 31 |
Gross realized losses | 2 |  |  | 3 |  |  | 4 |  |  | 5 |
Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on Sempra’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. ASSET RETIREMENT OBLIGATION The present value of SDG&E’s ARO related to decommissioning costs for all three SONGS units was $440 million at June 30, 2026 and is based on a cost study prepared in 2024, which is pending CPUC approval. SDG&E expects to receive an FD in the second half of 2026.

X
- Definition The entire disclosure for public utilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 980 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/980/tableOfContent + Details
Name: | us-gaap_PublicUtilitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_RegulatedOperationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration