UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 |
Commission File No. |
Exact Name of Registrants as Specified in their Charters,
Address and Telephone Number |
State of Incorporation | I.R.S. Employer Identification Nos. | |||||||||||||||||
1-14201 | SEMPRA ENERGY |
|
California | 33-0732627 | ||||||||||||||||
488 8th Avenue | ||||||||||||||||||||
San Diego, California 92101
|
||||||||||||||||||||
(619) 696-2000
|
||||||||||||||||||||
1-03779 | SAN DIEGO GAS & ELECTRIC COMPANY |
|
California | 95-1184800 | ||||||||||||||||
8326 Century Park Court | ||||||||||||||||||||
San Diego, California 92123
|
||||||||||||||||||||
(619) 696-2000
|
||||||||||||||||||||
1-01402 | SOUTHERN CALIFORNIA GAS COMPANY |
|
California | 95-1240705 | ||||||||||||||||
555 West Fifth Street | ||||||||||||||||||||
Los Angeles, California 90013
|
||||||||||||||||||||
(213) 244-1200
|
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: | ||||||||
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
SEMPRA ENERGY: | ||||||||
Common Stock, without par value | SRE | New York Stock Exchange | ||||||
6.75% Mandatory Convertible Preferred Stock, Series B, $100 liquidation preference | SREPRB | New York Stock Exchange | ||||||
5.75% Junior Subordinated Notes Due 2079, $25 par value | SREA | New York Stock Exchange | ||||||
SAN DIEGO GAS & ELECTRIC COMPANY: | ||||||||
None | ||||||||
SOUTHERN CALIFORNIA GAS COMPANY: | ||||||||
None | ||||||||
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: | ||
Title of Each Class | ||
SEMPRA ENERGY: | ||
None | ||
SAN DIEGO GAS & ELECTRIC COMPANY: | ||
None | ||
SOUTHERN CALIFORNIA GAS COMPANY: | ||
6% Preferred Stock, $25 par value | ||
6% Preferred Stock, Series A, $25 par value |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||||||
Sempra Energy | ☐ | |||||||
San Diego Gas & Electric Company | ☐ | |||||||
Southern California Gas Company | ☐ | |||||||
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act by the registered public accounting firm that prepared or issued its audit report. | ||||||||
Sempra Energy |
☒
|
|||||||
San Diego Gas & Electric Company |
☒
|
|||||||
Southern California Gas Company |
☒
|
|||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | ||||||||
Sempra Energy |
Yes ☐
|
No ☒
|
||||||
San Diego Gas & Electric Company |
Yes ☐
|
No ☒
|
||||||
Southern California Gas Company |
Yes ☐
|
No ☒
|
Common Stock outstanding, without par value, as of February 22, 2021:
|
Sempra Energy |
302,591,374 shares
|
||||
San Diego Gas & Electric Company | Wholly owned by Enova Corporation, which is wholly owned by Sempra Energy | ||||
Southern California Gas Company | Wholly owned by Pacific Enterprises, which is wholly owned by Sempra Energy | ||||
SAN DIEGO GAS & ELECTRIC COMPANY MEETS THE CONDITIONS OF GENERAL INSTRUCTIONS I(1)(a) AND (b) OF FORM 10-K AND IS THEREFORE FILING THIS REPORT WITH A REDUCED DISCLOSURE FORMAT AS PERMITTED BY GENERAL INSTRUCTION I(2). |
DOCUMENTS INCORPORATED BY REFERENCE: | ||
Portions of the Sempra Energy proxy statement to be filed for its May 2021 annual meeting of shareholders are incorporated by reference into Part III of this annual report on Form 10-K.
|
||
Portions of the Southern California Gas Company information statement to be filed for its June 2021 annual meeting of shareholders are incorporated by reference into Part III of this annual report on Form 10-K.
|
||
SEMPRA ENERGY FORM 10-K | ||||||||
SAN DIEGO GAS & ELECTRIC COMPANY FORM 10-K | ||||||||
SOUTHERN CALIFORNIA GAS COMPANY FORM 10-K | ||||||||
TABLE OF CONTENTS | ||||||||
Page | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
PART III |
|
|||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
PART IV | ||||||||
Item 15. | ||||||||
Item 16. | ||||||||
GLOSSARY | |||||
2016 GRC FD | final decision in the California Utilities’ 2016 General Rate Case | ||||
2019 GRC FD | final decision in the California Utilities’ 2019 General Rate Case | ||||
AB | California Assembly Bill | ||||
AFUDC | allowance for funds used during construction | ||||
AMP | Arrearage Management Payment Plan | ||||
AOCI | accumulated other comprehensive income (loss) | ||||
ARO | asset retirement obligation | ||||
ASC | Accounting Standards Codification | ||||
ASR | accelerated share repurchase | ||||
ASU | Accounting Standards Update | ||||
Bay Gas | Bay Gas Storage Company, Ltd. | ||||
Bcf | billion cubic feet | ||||
Bechtel | Bechtel Oil, Gas and Chemicals, Inc. | ||||
Blade | Blade Energy Partners | ||||
bps | basis points | ||||
Cal PA | California Public Advocates Office | ||||
CalGEM | California Geologic Energy Management Division (formerly known as Division of Oil, Gas, and Geothermal Resources or DOGGR) | ||||
California Utilities | San Diego Gas & Electric Company and Southern California Gas Company, collectively | ||||
Cameron LNG JV | Cameron LNG Holdings, LLC | ||||
CARB | California Air Resources Board | ||||
CCA | Community Choice Aggregation | ||||
CCC | California Coastal Commission | ||||
CCM | cost of capital adjustment mechanism | ||||
CEC | California Energy Commission | ||||
CENACE | Centro Nacional de Control de Energía (Mexico’s National Center for Energy Control) | ||||
CENAGAS | Centro Nacional de Control de Gas | ||||
CFE | Comisión Federal de Electricidad (Mexico’s Federal Electricity Commission) | ||||
CFIN | Cameron LNG FINCO, LLC, a wholly owned and unconsolidated affiliate of Cameron LNG JV | ||||
Chilquinta Energía | Chilquinta Energía, S.A. and its subsidiaries | ||||
CNBV | Comisión Nacional Bancaria y de Valores (Mexico’s National Banking and Securities Commission) | ||||
COFECE | Comisión Federal de Competencia Económica (Mexico’s Competition Commission) | ||||
COVID-19 | coronavirus disease 2019 | ||||
CPUC | California Public Utilities Commission | ||||
CRE | Comisión Reguladora de Energía (Mexico’s Energy Regulatory Commission) | ||||
CRR | congestion revenue right | ||||
DA | Direct Access | ||||
DEN | Ductos y Energéticos del Norte, S. de R.L. de C.V. | ||||
DOE | U.S. Department of Energy | ||||
DOT | U.S. Department of Transportation | ||||
DWR | California Department of Water Resources | ||||
ECA LNG | ECA LNG Phase 1 and ECA LNG Phase 2, collectively | ||||
ECA LNG Phase 1 | ECA LNG Holdings B.V. | ||||
ECA LNG Phase 2 | ECA LNG II Holdings B.V. | ||||
ECA Regas Facility | Energía Costa Azul, S. de R.L. de C.V. LNG regasification facility | ||||
Ecogas | Ecogas México, S. de R.L. de C.V. | ||||
Edison | Southern California Edison Company, a subsidiary of Edison International | ||||
EFH | Energy Future Holdings Corp. (renamed Sempra Texas Holdings Corp.) | ||||
Eletrans | Eletrans S.A., Eletrans II S.A. and Eletrans III S.A., collectively | ||||
EMA | energy management agreement | ||||
Enova | Enova Corporation | ||||
EPA | U.S. Environmental Protection Agency | ||||
EPC | engineering, procurement and construction | ||||
EPS | earnings per common share | ||||
GLOSSARY (CONTINUED) | |||||
ERCOT | Electric Reliability Council of Texas, Inc., the independent system operator and the regional coordinator of various electricity systems within Texas | ||||
ERR | eligible renewable energy resource | ||||
ESJ | Energía Sierra Juárez, S. de R.L. de C.V. | ||||
ETR | effective income tax rate | ||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||
FERC | Federal Energy Regulatory Commission | ||||
Fitch | Fitch Ratings | ||||
FTA | Free Trade Agreement | ||||
Gazprom | Gazprom Marketing & Trading Mexico S. de R.L. de C.V. | ||||
GCIM | Gas Cost Incentive Mechanism | ||||
GHG | greenhouse gas | ||||
GRC | General Rate Case | ||||
HMRC | United Kingdom’s Revenue and Customs Department | ||||
IEnova | Infraestructura Energética Nova, S.A.B. de C.V. | ||||
IEnova Pipelines | IEnova Pipelines, S. de R.L. de C.V. | ||||
IMG JV | Infraestructura Marina del Golfo | ||||
InfraREIT | InfraREIT, Inc. | ||||
IOU | investor-owned utility | ||||
IRC | U.S. Internal Revenue Code of 1986 (as amended) | ||||
IRS | Internal Revenue Service | ||||
ISFSI | independent spent fuel storage installation | ||||
ISO | Independent System Operator | ||||
JV | joint venture | ||||
kV | kilovolt | ||||
kW | kilowatt | ||||
kWh | kilowatt hour | ||||
LA Storage | LA Storage, LLC | ||||
LA Superior Court | Los Angeles County Superior Court | ||||
Leak | the leak at the SoCalGas Aliso Canyon natural gas storage facility injection-and-withdrawal well, SS25, discovered by SoCalGas on October 23, 2015 | ||||
LIBOR | London Interbank Offered Rate | ||||
LNG | liquefied natural gas | ||||
LPG | liquid petroleum gas | ||||
LTIP | long-term incentive plan | ||||
Luz del Sur | Luz del Sur S.A.A. and its subsidiaries | ||||
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||
Mexican Stock Exchange | Bolsa Mexicana de Valores, S.A.B. de C.V., or BMV | ||||
Mississippi Hub | Mississippi Hub, LLC | ||||
MMBtu | million British thermal units (of natural gas) | ||||
MMcf | million cubic feet | ||||
Moody’s | Moody’s Investors Service, Inc. | ||||
MOU | Memorandum of Understanding | ||||
Mtpa | million tonnes per annum | ||||
MW | megawatt | ||||
MWh | megawatt hour | ||||
NAV | net asset value | ||||
NCI | noncontrolling interest(s) | ||||
NDT | nuclear decommissioning trusts | ||||
NEIL | Nuclear Electric Insurance Limited | ||||
NEM | net energy metering | ||||
NOL | net operating loss | ||||
NRC | Nuclear Regulatory Commission | ||||
NYSE | New York Stock Exchange |
GLOSSARY (CONTINUED) | |||||
O&M | operation and maintenance expense | ||||
OCI | other comprehensive income (loss) | ||||
OII | Order Instituting Investigation | ||||
OIR | Order Instituting a Rulemaking | ||||
OMEC | Otay Mesa Energy Center | ||||
OMEC LLC | Otay Mesa Energy Center LLC | ||||
Oncor | Oncor Electric Delivery Company LLC | ||||
Oncor Holdings | Oncor Electric Delivery Holdings Company LLC | ||||
OSC | Order to Show Cause | ||||
Otay Mesa VIE | OMEC LLC VIE | ||||
PBOP | postretirement benefits other than pension | ||||
PE | Pacific Enterprises | ||||
PEMEX | Petróleos Mexicanos (Mexican state-owned oil company) | ||||
PG&E | Pacific Gas and Electric Company | ||||
PHMSA | Pipeline and Hazardous Materials Safety Administration | ||||
PP&E | property, plant and equipment | ||||
PPA | power purchase agreement | ||||
PRP | Potentially Responsible Party | ||||
PSEP | Pipeline Safety Enhancement Plan | ||||
PUCT | Public Utility Commission of Texas | ||||
PURA | Public Utility Regulatory Act | ||||
RBS | The Royal Bank of Scotland plc | ||||
RBS SEE | RBS Sempra Energy Europe | ||||
RBS Sempra Commodities | RBS Sempra Commodities LLP | ||||
REC | renewable energy certificate | ||||
ROE | return on equity | ||||
ROU | right-of-use | ||||
RPS | Renewables Portfolio Standard | ||||
RSU | restricted stock unit | ||||
S&P | Standard & Poor’s | ||||
Saavi Energía | Saavi Energía S. de R.L. de C.V. | ||||
SB | California Senate Bill | ||||
SCAQMD | South Coast Air Quality Management District | ||||
SDG&E | San Diego Gas & Electric Company | ||||
SDTS | Sharyland Distribution & Transmission Services, L.L.C. (a subsidiary of InfraREIT) | ||||
SEC | U.S. Securities and Exchange Commission | ||||
SED | Safety and Enforcement Division of the CPUC | ||||
SEDATU | Secretaría de Desarrollo Agrario, Territorial y Urbano (Mexican agency in charge of agriculture, land and urban development) | ||||
Sempra Global | holding company for most of Sempra Energy’s subsidiaries not subject to California or Texas utility regulation | ||||
SENER | Secretaría de Energía de México (Mexico’s Ministry of Energy) | ||||
series A preferred stock | 6% mandatory convertible preferred stock, series A | ||||
series B preferred stock | 6.75% mandatory convertible preferred stock, series B | ||||
series C preferred stock | Sempra Energy’s 4.875% fixed-rate reset cumulative redeemable perpetual preferred stock, series C | ||||
Sharyland Holdings | Sharyland Holdings, L.P. | ||||
Sharyland Utilities | Sharyland Utilities, L.L.C. | ||||
Shell Mexico | Shell México Gas Natural, S. de R.L. de C.V. | ||||
SoCalGas | Southern California Gas Company | ||||
SONGS | San Onofre Nuclear Generating Station | ||||
SONGS OII | CPUC’s Order Instituting Investigation into the SONGS Outage | ||||
STIH | Sempra Texas Intermediate Holding Company LLC | ||||
Support Agreement | support agreement, dated July 28, 2020, between Sempra Energy and Sumitomo Mitsui Banking Corporation | ||||
TAG JV | TAG Norte Holding, S. de R.L. de C.V. | ||||
Tangguh PSC | Tangguh PSC Contractors | ||||
TC Energy | TC Energy Corporation (formerly known as TransCanada Corporation) |
GLOSSARY (CONTINUED) | |||||
TCJA | Tax Cuts and Jobs Act of 2017 | ||||
TdM | Termoeléctrica de Mexicali | ||||
TechnipFMC | TP Oil & Gas Mexico, S. De R.L. De C.V., an affiliate of TechnipFMC plc | ||||
Tecnored | Tecnored S.A. | ||||
Tecsur | Tecsur S.A. | ||||
TO4 | Electric Transmission Owner Formula Rate, effective through December 31, 2018 | ||||
TO5 | Electric Transmission Owner Formula Rate, new application | ||||
TTHC | Texas Transmission Holdings Corporation | ||||
TTI | Texas Transmission Investment LLC | ||||
TURN | The Utility Reform Network | ||||
U.S. GAAP | accounting principles generally accepted in the United States of America | ||||
USMCA | United States-Mexico-Canada Agreement | ||||
VaR | value at risk | ||||
VAT | value-added tax | ||||
Ventika | Ventika, S.A.P.I. de C.V. and Ventika II, S.A.P.I. de C.V., collectively | ||||
VIE | variable interest entity | ||||
Wildfire Fund | the fund established pursuant to AB 1054 | ||||
Wildfire Legislation | AB 1054 and AB 111 |
SDG&E – ELECTRIC RESOURCES(1)
|
|||||||||||
Contract | Net operating | ||||||||||
expiration date | capacity (MW) | % of total | |||||||||
Owned generation facilities, natural gas(2)
|
1,204 | 23 | % | ||||||||
Purchased-power contracts: | |||||||||||
Renewables: | |||||||||||
Wind | 2023 to 2035 | 1,131 | 22 | ||||||||
Solar | 2030 to 2041 | 1,326 | 26 | ||||||||
Other | 2022 and thereafter | 203 | 4 | ||||||||
Tolling and other | 2022 to 2042 | 1,292 | 25 | ||||||||
Total | 5,156 | 100 | % |
SDG&E – ELECTRIC CUSTOMER METERS AND VOLUMES
|
|||||||||||||||||
Customer meter count |
Volumes(1)
(millions of kWh)
|
||||||||||||||||
December 31, | Years ended December 31, | ||||||||||||||||
2020 | 2020 | 2019 | 2018 | ||||||||||||||
Residential | 1,317,080 | 6,606 | 5,982 | 6,336 | |||||||||||||
Commercial | 151,210 | 5,873 | 6,295 | 6,539 | |||||||||||||
Industrial | 370 | 1,842 | 2,044 | 2,169 | |||||||||||||
Street and highway lighting | 2,090 | 77 | 76 | 81 | |||||||||||||
1,470,750 | 14,398 | 14,397 | 15,125 | ||||||||||||||
CCA and DA | 12,480 | 3,482 | 3,549 | 3,628 | |||||||||||||
Total | 1,483,230 | 17,880 | 17,946 | 18,753 |
CALIFORNIA UTILITIES – NATURAL GAS CUSTOMER METERS AND VOLUMES | |||||||||||||||||
Customer meter count |
Volumes (Bcf)(1)
|
||||||||||||||||
December 31, | Years ended December 31, | ||||||||||||||||
2020 | 2020 | 2019 | 2018 | ||||||||||||||
SDG&E: | |||||||||||||||||
Residential
|
869,520 | ||||||||||||||||
Commercial
|
28,690 | ||||||||||||||||
Electric generation and transportation
|
2,870 | ||||||||||||||||
Natural gas sales
|
43 | 45 | 40 | ||||||||||||||
Transportation
|
40 | 26 | 28 | ||||||||||||||
Total
|
901,080 | 83 | 71 | 68 | |||||||||||||
SoCalGas: | |||||||||||||||||
Residential
|
5,792,600 | ||||||||||||||||
Commercial
|
248,720 | ||||||||||||||||
Industrial
|
24,880 | ||||||||||||||||
Electric generation and wholesale
|
40 | ||||||||||||||||
Natural gas sales
|
312 | 329 | 297 | ||||||||||||||
Transportation
|
572 | 547 | 553 | ||||||||||||||
Total
|
6,066,240 | 884 | 876 | 850 |
IENOVA – RENEWABLE POWER GENERATION | |||||||||||
Location | Contract expiration date | Nameplate capacity (MW) | |||||||||
Wind power generation facilities: | |||||||||||
ESJ – first phase(1)
|
Tecate, Baja California | 2035 | 155 | ||||||||
ESJ – second phase(1)(2)
|
Tecate, Baja California | 2041 | 108 | ||||||||
Ventika(3)
|
Nuevo León
|
2036 | 252 | ||||||||
Solar power generation facilities: | |||||||||||
Border(4)
|
Chihuahua | 2032 and 2037 | 150 | ||||||||
Don Diego | Sonora | 2036 and 2037 | 125 | ||||||||
Pima | Sonora | 2039 | 110 | ||||||||
Rumorosa | Baja California | 2034 | 41 | ||||||||
Tepezalá | Aguascalientes | 2034 | 100 | ||||||||
Total | 1,041 |
INFORMATION ABOUT EXECUTIVE OFFICERS AT SEMPRA ENERGY | |||||||||||
Name |
Age(1)
|
Positions held over last five years | Time in position | ||||||||
Jeffrey W. Martin | 59 | Chairman | December 2018 to present | ||||||||
Chief Executive Officer | May 2018 to present | ||||||||||
President | March 2020 to present | ||||||||||
Executive Vice President and Chief Financial Officer | January 2017 to April 2018 | ||||||||||
Chairman, SDG&E | November 2015 to December 2016 | ||||||||||
President, SDG&E | October 2015 to December 2016 | ||||||||||
Chief Executive Officer, SDG&E | January 2014 to December 2016 | ||||||||||
Kevin C. Sagara | 59 | Executive Vice President and Group President | June 2020 to present | ||||||||
Chief Executive Officer, SDG&E | September 2018 to June 2020 | ||||||||||
President, Sempra Renewables | October 2013 to September 2018 | ||||||||||
Trevor I. Mihalik | 54 | Executive Vice President and Chief Financial Officer | May 2018 to present | ||||||||
Senior Vice President | December 2013 to April 2018 | ||||||||||
Controller and Chief Accounting Officer | July 2012 to April 2018 | ||||||||||
Peter R. Wall | 49 | Senior Vice President | April 2020 to present | ||||||||
Controller and Chief Accounting Officer | May 2018 to present | ||||||||||
Vice President | May 2018 to April 2020 | ||||||||||
Vice President and Chief Financial Officer, Sempra Infrastructure | January 2017 to April 2018 | ||||||||||
Vice President and Chief Financial Officer, Sempra U.S. Gas & Power | March 2015 to December 2016 |
INFORMATION ABOUT EXECUTIVE OFFICERS AT SOCALGAS | |||||||||||
Name |
Age(1)
|
Positions held over last five years | Time in position | ||||||||
Scott D. Drury | 55 | Chief Executive Officer | August 2020 to present | ||||||||
President, SDG&E | January 2017 to July 2020 | ||||||||||
Chief Energy Supply Officer, SDG&E | June 2015 to December 2016 | ||||||||||
Maryam S. Brown | 45 | President | March 2019 to present | ||||||||
Vice President of Federal Government Affairs, Sempra Energy | September 2016 to March 2019 | ||||||||||
Senior Energy and Environment Counsel, Office of the Speaker of the U.S. House of Representatives | December 2012 to September 2016 | ||||||||||
Jimmie I. Cho | 56 | Chief Operating Officer | January 2019 to present | ||||||||
Senior Vice President of Customer Services and Gas Distribution
Operations
|
April 2018 to January 2019 | ||||||||||
Senior Vice President of Gas Distribution Operations, SDG&E
|
April 2018 to January 2019 | ||||||||||
Senior Vice President of Gas Engineering and Distribution Operations,
SoCalGas and SDG&E
|
October 2017 to April 2018 | ||||||||||
Senior Vice President of Gas Operations and System Integrity, SoCalGas and SDG&E
|
June 2014 to October 2017 | ||||||||||
Mia L. DeMontigny | 48 |
Vice President and Chief Financial Officer, Controller, Chief Accounting Officer and Treasurer
|
June 2019 to present | ||||||||
Assistant Controller, Sempra Energy | August 2015 to June 2019 | ||||||||||
David J. Barrett | 56 |
Vice President and General Counsel
|
January 2019 to present | ||||||||
Associate General Counsel of Gas Infrastructure, Sempra Energy | June 2018 to January 2019 | ||||||||||
Assistant General Counsel of Gas Infrastructure, Sempra Energy | February 2017 to June 2018 | ||||||||||
Assistant General Counsel of Real Estate and Environmental, SDG&E | October 2010 to February 2017 | ||||||||||
Jeffery L. Walker | 60 | Senior Vice President, Chief Administrative and Diversity Officer | November 2020 to present | ||||||||
Vice President, Customer Solutions | March 2019 to November 2020 | ||||||||||
Director of Special Projects | January 2019 to March 2019 | ||||||||||
Director, SoCalGas Advanced Meter | January 2014 to January 2019 |
NUMBER OF EMPLOYEES | |||||||||||||||||
Number of employees | % of employees covered under collective bargaining agreements | % of employees covered under collective bargaining agreements expiring within one year | |||||||||||||||
Sempra Energy Consolidated(1)
|
14,706 | 41 | % | 32 | % | ||||||||||||
SDG&E | 4,595 | 29 | % | — | % | ||||||||||||
SoCalGas | 7,851 | 59 | % | 59 | % |
FIVE-YEAR SUMMARY OF SELECTED FINANCIAL DATA – SEMPRA ENERGY CONSOLIDATED
|
|||||||||||||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||||||||||
At December 31 or for the years then ended | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Utilities | |||||||||||||||||||||||||||||
Natural gas | $ | 5,411 | $ | 5,185 | $ | 4,540 | $ | 4,361 | $ | 4,050 | |||||||||||||||||||
Electric | 4,614 | 4,263 | 3,999 | 3,929 | 3,748 | ||||||||||||||||||||||||
Energy-related businesses | 1,345 | 1,381 | 1,563 | 1,350 | 829 | ||||||||||||||||||||||||
Total revenues | $ | 11,370 | $ | 10,829 | $ | 10,102 | $ | 9,640 | $ | 8,627 | |||||||||||||||||||
Income from continuing operations, net of income tax | $ | 2,255 | $ | 1,999 | $ | 938 | $ | 382 | $ | 1,292 | |||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | 1,850 | 363 | 188 | (31) | 227 | ||||||||||||||||||||||||
Net income | 4,105 | 2,362 | 1,126 | 351 | 1,519 | ||||||||||||||||||||||||
Earnings attributable to noncontrolling interests | (172) | (164) | (76) | (94) | (148) | ||||||||||||||||||||||||
Preferred dividends | (168) | (142) | (125) | — | — | ||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | (1) | (1) | ||||||||||||||||||||||||
Earnings attributable to common shares | $ | 3,764 | $ | 2,055 | $ | 924 | $ | 256 | $ | 1,370 | |||||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||||||
Earnings from continuing operations | $ | 6.61 | $ | 6.22 | $ | 2.86 | $ | 1.25 | $ | 4.66 | |||||||||||||||||||
Earnings (losses) from discontinued operations | $ | 6.32 | $ | 1.18 | $ | 0.59 | $ | (0.23) | $ | 0.82 | |||||||||||||||||||
Earnings | $ | 12.93 | $ | 7.40 | $ | 3.45 | $ | 1.02 | $ | 5.48 | |||||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||||||
Earnings from continuing operations | $ | 6.58 | $ | 6.13 | $ | 2.84 | $ | 1.24 | $ | 4.65 | |||||||||||||||||||
Earnings (losses) from discontinued operations | $ | 6.30 | $ | 1.16 | $ | 0.58 | $ | (0.23) | $ | 0.81 | |||||||||||||||||||
Earnings | $ | 12.88 | $ | 7.29 | $ | 3.42 | $ | 1.01 | $ | 5.46 | |||||||||||||||||||
Dividends declared per common share | $ | 4.18 | $ | 3.87 | $ | 3.58 | $ | 3.29 | $ | 3.02 | |||||||||||||||||||
Effective income tax rate | 14 | % | 18 | % | (10) | % | 73 | % | 22 | % | |||||||||||||||||||
Weighted-average rate base: | |||||||||||||||||||||||||||||
SDG&E | $ | 11,109 | $ | 10,467 | $ | 9,619 | $ | 8,549 | $ | 8,019 | |||||||||||||||||||
SoCalGas | $ | 8,228 | $ | 7,401 | $ | 6,413 | $ | 5,493 | $ | 4,775 | |||||||||||||||||||
AT DECEMBER 31 | |||||||||||||||||||||||||||||
Current assets | $ | 4,511 | $ | 3,339 | $ | 3,645 | $ | 3,341 | $ | 3,110 | |||||||||||||||||||
Total assets | $ | 66,623 | $ | 65,665 | $ | 60,638 | $ | 50,454 | $ | 47,786 | |||||||||||||||||||
Current liabilities | $ | 6,839 | $ | 9,150 | $ | 7,523 | $ | 6,635 | $ | 5,927 | |||||||||||||||||||
Short-term debt(1)
|
$ | 2,425 | $ | 5,031 | $ | 3,668 | $ | 2,790 | $ | 2,542 | |||||||||||||||||||
Long-term debt and finance leases (excludes current portion)(2)
|
$ | 21,781 | $ | 20,785 | $ | 20,903 | $ | 15,829 | $ | 13,865 | |||||||||||||||||||
Sempra Energy shareholders’ equity | $ | 23,373 | $ | 19,929 | $ | 17,138 | $ | 12,670 | $ | 12,951 | |||||||||||||||||||
Common shares outstanding | 288.5 | 291.7 | 273.8 | 251.4 | 250.2 | ||||||||||||||||||||||||
Book value per common share | $ | 70.11 | $ | 60.58 | $ | 54.35 | $ | 50.40 | $ | 51.77 |
FIVE-YEAR SUMMARIES OF SELECTED FINANCIAL DATA – SDG&E AND SOCALGAS
|
|||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
At December 31 or for the years then ended | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
SDG&E: | |||||||||||||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||||||||||||
Operating revenues | $ | 5,313 | $ | 4,925 | $ | 4,568 | $ | 4,476 | $ | 4,253 | |||||||||||||||||||
Operating income | 1,373 | 1,313 | 1,010 | 709 | 976 | ||||||||||||||||||||||||
Earnings attributable to common shares | 824 | 767 | 669 | 407 | 570 | ||||||||||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||||||||||||
Total assets | $ | 22,311 | $ | 20,560 | $ | 19,225 | $ | 17,844 | $ | 17,719 | |||||||||||||||||||
Short-term debt(1)
|
611 | 136 | 372 | 473 | 191 | ||||||||||||||||||||||||
Long-term debt and finance leases (excludes current portion) | 6,866 | 6,306 | 6,138 | 5,335 | 4,658 | ||||||||||||||||||||||||
SDG&E shareholder’s equity | 7,730 | 7,100 | 6,015 | 5,598 | 5,641 | ||||||||||||||||||||||||
SoCalGas: | |||||||||||||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||||||||||||
Operating revenues | $ | 4,748 | $ | 4,525 | $ | 3,962 | $ | 3,785 | $ | 3,471 | |||||||||||||||||||
Operating income | 785 | 956 | 591 | 627 | 551 | ||||||||||||||||||||||||
Dividends on preferred stock | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||
Earnings attributable to common shares | 504 | 641 | 400 | 396 | 349 | ||||||||||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||||||||||||
Total assets | $ | 18,460 | $ | 17,077 | $ | 15,389 | $ | 14,159 | $ | 13,424 | |||||||||||||||||||
Short-term debt(1)
|
123 | 636 | 259 | 617 | 62 | ||||||||||||||||||||||||
Long-term debt and finance leases (excludes current portion) | 4,763 | 3,788 | 3,427 | 2,485 | 2,982 | ||||||||||||||||||||||||
SoCalGas shareholders’ equity | 5,144 | 4,748 | 4,258 | 3,907 | 3,510 |
SEMPRA ENERGY EARNINGS (LOSSES) BY SEGMENT | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
SDG&E | $ | 824 | $ | 767 | $ | 669 | |||||||||||
SoCalGas | 504 | 641 | 400 | ||||||||||||||
Sempra Texas Utilities | 579 | 528 | 371 | ||||||||||||||
Sempra Mexico | 259 | 253 | 237 | ||||||||||||||
Sempra LNG | 320 | (6) | (617) | ||||||||||||||
Sempra Renewables | — | 59 | 328 | ||||||||||||||
Parent and other(1)
|
(562) | (515) | (620) | ||||||||||||||
Discontinued operations | 1,840 | 328 | 156 | ||||||||||||||
Earnings attributable to common shares | $ | 3,764 | $ | 2,055 | $ | 924 |
UTILITIES REVENUES AND COST OF SALES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Natural gas revenues: | |||||||||||||||||
SoCalGas | $ | 4,748 | $ | 4,525 | $ | 3,962 | |||||||||||
SDG&E | 694 | 658 | 565 | ||||||||||||||
Sempra Mexico | 58 | 73 | 78 | ||||||||||||||
Eliminations and adjustments | (89) | (71) | (65) | ||||||||||||||
Total
|
5,411 | 5,185 | 4,540 | ||||||||||||||
Electric revenues: | |||||||||||||||||
SDG&E | 4,619 | 4,267 | 4,003 | ||||||||||||||
Eliminations and adjustments | (5) | (4) | (4) | ||||||||||||||
Total
|
4,614 | 4,263 | 3,999 | ||||||||||||||
Total utilities revenues | $ | 10,025 | $ | 9,448 | $ | 8,539 | |||||||||||
Cost of natural gas(1):
|
|||||||||||||||||
SoCalGas | $ | 783 | $ | 977 | $ | 1,048 | |||||||||||
SDG&E | 162 | 176 | 152 | ||||||||||||||
Sempra Mexico | 12 | 14 | 21 | ||||||||||||||
Eliminations and adjustments | (32) | (28) | (13) | ||||||||||||||
Total
|
$ | 925 | $ | 1,139 | $ | 1,208 | |||||||||||
Cost of electric fuel and purchased power(1):
|
|||||||||||||||||
SDG&E | $ | 1,191 | $ | 1,194 | $ | 1,370 | |||||||||||
Eliminations and adjustments | (4) | (6) | (12) | ||||||||||||||
Total
|
$ | 1,187 | $ | 1,188 | $ | 1,358 |
CALIFORNIA UTILITIES AVERAGE COST OF NATURAL GAS | |||||||||||||||||
(Dollars per thousand cubic feet) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
SoCalGas | $ | 2.59 | $ | 3.07 | $ | 3.58 | |||||||||||
SDG&E | 3.74 | 3.91 | 3.81 |
ENERGY-RELATED BUSINESSES: REVENUES AND COST OF SALES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
REVENUES | |||||||||||||||||
Sempra Mexico | $ | 1,198 | $ | 1,302 | $ | 1,298 | |||||||||||
Sempra LNG | 374 | 410 | 472 | ||||||||||||||
Sempra Renewables | — | 10 | 124 | ||||||||||||||
Parent and other(1)
|
(227) | (341) | (331) | ||||||||||||||
Total revenues | $ | 1,345 | $ | 1,381 | $ | 1,563 | |||||||||||
COST OF SALES(2)
|
|||||||||||||||||
Sempra Mexico | $ | 283 | $ | 373 | $ | 363 | |||||||||||
Sempra LNG | 218 | 299 | 313 | ||||||||||||||
Parent and other(1)
|
(225) | (328) | (319) | ||||||||||||||
Total cost of sales | $ | 276 | $ | 344 | $ | 357 |
OPERATION AND MAINTENANCE | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
SDG&E(1)
|
$ | 1,454 | $ | 1,175 | $ | 1,058 | |||||||||||
SoCalGas | 2,029 | 1,780 | 1,613 | ||||||||||||||
Sempra Mexico | 279 | 256 | 239 | ||||||||||||||
Sempra LNG | 159 | 156 | 123 | ||||||||||||||
Sempra Renewables | — | 18 | 89 | ||||||||||||||
Parent and other(2)
|
19 | 81 | 28 | ||||||||||||||
Total operation and maintenance | $ | 3,940 | $ | 3,466 | $ | 3,150 |
INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||
Income tax expense (benefit) from continuing operations | $ | 249 | $ | 315 | $ | (49) | |||||||||||
Income from continuing operations before income taxes and equity earnings | $ | 1,489 | $ | 1,734 | $ | 714 | |||||||||||
Equity earnings (losses), before income tax(1)
|
294 | 30 | (236) | ||||||||||||||
Pretax income | $ | 1,783 | $ | 1,764 | $ | 478 | |||||||||||
Effective income tax rate | 14 | % | 18 | % | (10) | % | |||||||||||
SDG&E: | |||||||||||||||||
Income tax expense | $ | 190 | $ | 171 | $ | 173 | |||||||||||
Income before income taxes | $ | 1,014 | $ | 945 | $ | 849 | |||||||||||
Effective income tax rate | 19 | % | 18 | % | 20 | % | |||||||||||
SoCalGas: | |||||||||||||||||
Income tax expense | $ | 96 | $ | 120 | $ | 92 | |||||||||||
Income before income taxes | $ | 601 | $ | 762 | $ | 493 | |||||||||||
Effective income tax rate | 16 | % | 16 | % | 19 | % |
TRANSACTIONAL (LOSSES) GAINS FROM FOREIGN CURRENCY AND INFLATION | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Total reported amounts |
Transactional
(losses) gains included in reported amounts |
||||||||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Other (expense) income, net | $ | (48) | $ | 77 | $ | 58 | $ | (92) | $ | 55 | $ | (1) | |||||||||||||||||||||||
Income tax (expense) benefit | (249) | (315) | 49 | 44 | (71) | (26) | |||||||||||||||||||||||||||||
Equity earnings | 1,015 | 580 | 175 | 43 | (47) | (14) | |||||||||||||||||||||||||||||
Income from continuing operations, net of income tax | 2,255 | 1,999 | 938 | 8 | (70) | (41) | |||||||||||||||||||||||||||||
Income from discontinued operations, net of income tax | 1,850 | 363 | 188 | 15 | 2 | 6 | |||||||||||||||||||||||||||||
Earnings attributable to common shares | 3,764 | 2,055 | 924 | (1) | (39) | (21) |
AVAILABLE FUNDS AT DECEMBER 31, 2020 | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Sempra Energy
Consolidated |
SDG&E | SoCalGas | |||||||||||||||
Unrestricted cash and cash equivalents(1)
|
$ | 960 | $ | 262 | $ | 4 | |||||||||||
Available unused credit(2)(3)
|
7,700 | 1,500 | 637 |
COMMERCIAL PAPER STATISTICS | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | ||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Amount outstanding at period end | $ | 113 | $ | 2,334 | $ | — | $ | 80 | $ | 113 | $ | 630 | ||||||||
Weighted-average interest rate at period end | 0.14 | % | 2.06 | % | — | % | 1.97 | % | 0.14 | % | 1.86 | % | ||||||||
Daily weighted-average outstanding balance | $ | 2,282 | $ | 2,774 | $ | 198 | $ | 288 | $ | 373 | $ | 322 | ||||||||
Daily weighted-average yield | 1.61 | % | 2.48 | % | 1.50 | % | 2.65 | % | 0.44 | % | 2.23 | % | ||||||||
Maximum daily amount outstanding | $ | 2,495 | $ | 3,243 | $ | 263 | $ | 417 | $ | 635 | $ | 642 |
LONG-TERM DEBT ISSUANCES AND PAYMENTS | ||||||||||||||
(Dollars in millions) | ||||||||||||||
Issuances: | Amount at issuance | Maturity | ||||||||||||
SDG&E variable rate 364-day term loan | $ | 200 | 2021 | |||||||||||
SDG&E variable rate revolving line of credit | 200 | 2024 | ||||||||||||
SDG&E 1.70% first mortgage bonds | 800 | 2030 | ||||||||||||
SDG&E 3.32% first mortgage bonds | 400 | 2050 | ||||||||||||
SoCalGas senior unsecured variable rate notes | 300 | 2023 | ||||||||||||
SoCalGas 2.55% first mortgage bonds | 650 | 2030 | ||||||||||||
Sempra Mexico 2.38% bank loans | 100 | 2034 | ||||||||||||
Sempra Mexico 2.90% bank loans | 241 | 2034 | ||||||||||||
Sempra Mexico 4.75% senior unsecured notes | 800 | 2051 | ||||||||||||
Sempra LNG variable rate notes | 17 | 2025 | ||||||||||||
Payments: | Payments | Maturity | ||||||||||||
Sempra Energy 2.4% notes | $ | 500 | 2020 | |||||||||||
Sempra Energy 2.4% notes | 500 | 2020 | ||||||||||||
Sempra Energy 2.85% notes | 400 | 2020 | ||||||||||||
Sempra Energy variable rate notes | 700 | 2021 | ||||||||||||
SDG&E 1.914% amortizing first mortgage bonds | 36 | 2020 | ||||||||||||
SDG&E variable rate revolving line of credit | 200 | 2024 | ||||||||||||
SDG&E 5.875% first mortgage bonds | 176 | 2034 | ||||||||||||
SDG&E 4% first mortgage bonds | 75 | 2039 | ||||||||||||
Sempra Mexico amortizing variable rate notes | 41 | 2020 | ||||||||||||
Sempra Mexico amortizing fixed and variable rate bank loans | 25 | 2020 |
CREDIT RATINGS AT DECEMBER 31, 2020 | |||||||||||||||||
Sempra Energy | SDG&E | SoCalGas | |||||||||||||||
Moody’s | Baa2 with a stable outlook | Baa1 with a positive outlook | A2 with a stable outlook | ||||||||||||||
S&P | BBB+ with a negative outlook | BBB+ with a negative outlook | A with a negative outlook | ||||||||||||||
Fitch | BBB+ with a stable outlook | BBB+ with a stable outlook | A with a stable outlook |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Years ended December 31, | Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||||
2020 | $ | 2,591 | $ | 1,389 | $ | 1,526 | ||||||||||||||
2019 | 3,088 | 1,090 | 868 | |||||||||||||||||
Change | $ | (497) | $ | 299 | $ | 658 | ||||||||||||||
Change in intercompany activities with discontinued operations (including $403 dividends received from our South American businesses in 2019) | $ | (378) | ||||||||||||||||||
Net increase in Insurance Receivable for Aliso Canyon primarily due to $132 higher accruals and $94 lower insurance proceeds received | (228) | $ | (228) | |||||||||||||||||
Change in accounts receivable | (224) | $ | (119) | (28) | ||||||||||||||||
Release of a regulatory liability related to 2016-2018 income tax expense forecasting differences | (175) | (86) | (89) | |||||||||||||||||
Change in bad debt regulatory assets | (84) | (51) | (33) | |||||||||||||||||
TCJA revenue amortization | (82) | (44) | (38) | |||||||||||||||||
Increase in prepaid insurance premiums | (24) | |||||||||||||||||||
Net increase in Reserves for Aliso Canyon Costs, current and noncurrent, due to $450 higher accruals and $129 lower payments | 579 | 579 | ||||||||||||||||||
Distributions of earnings from Cameron LNG JV in 2020 | 365 | |||||||||||||||||||
Change in net undercollected regulatory balancing accounts (including long-term amounts in regulatory assets) | 352 | 29 | 323 | |||||||||||||||||
SDG&E’s initial shareholder contribution to the Wildfire Fund in September 2019 | 323 | 323 | ||||||||||||||||||
Decrease in funding for the Rabbi Trust | 141 | |||||||||||||||||||
Higher net margin posted at Sempra LNG’s marketing operations | 109 | |||||||||||||||||||
Change in income taxes receivable/payable, net | 72 | 255 | 345 | |||||||||||||||||
Change in accounts payable | 61 | 71 | ||||||||||||||||||
Higher distributions of earnings from Oncor Holdings | 39 | |||||||||||||||||||
Higher (lower) net income, adjusted for noncash items included in earnings | 39 | 35 | (258) | |||||||||||||||||
Other | 35 | (19) | 14 | |||||||||||||||||
Change in net cash flows from discontinued operations primarily due to $1,161 income taxes paid related to the sale of our South American businesses | (1,441) | |||||||||||||||||||
$ | (497) | $ | 299 | $ | 658 |
CASH FLOWS FROM OPERATING ACTIVITIES (CONTINUED) | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Years ended December 31, | Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||||
2019 | $ | 3,088 | $ | 1,090 | $ | 868 | ||||||||||||||
2018 | 3,516 | 1,584 | 1,013 | |||||||||||||||||
Change | $ | (428) | $ | (494) | $ | (145) | ||||||||||||||
Change in net undercollected regulatory balancing accounts (including long-term amounts in regulatory assets)
|
$ | (513) | $ | (254) | $ | (259) | ||||||||||||||
SDG&E’s initial shareholder contribution to the Wildfire Fund in September 2019 | (323) | (323) | ||||||||||||||||||
Change in income taxes receivable/payable, net, primarily due to higher payments | (254) | (149) | (170) | |||||||||||||||||
Net decrease in Reserve for Aliso Canyon Costs due to $119 higher payments and $81 lower accruals
|
(200) | (200) | ||||||||||||||||||
Deferred revenue due to the TCJA at the California Utilities in 2018 | (123) | (62) | (61) | |||||||||||||||||
Cash payments for operating leases in 2019 | (101) | (33) | (27) | |||||||||||||||||
Decrease in interest payable primarily due to higher payments | (86) | |||||||||||||||||||
Higher contributions to Rabbi Trust | (81) | |||||||||||||||||||
Higher net income, adjusted for noncash items included in earnings | 442 | 266 | 336 | |||||||||||||||||
Change in intercompany activities with discontinued operations (including $334 higher dividends received from our South American businesses) | 308 | |||||||||||||||||||
Change in long-term GHG obligations | 185 | 174 | ||||||||||||||||||
Net decrease in Insurance Receivable for Aliso Canyon Costs due to $84 higher insurance proceeds received and $81 lower accruals
|
165 | 165 | ||||||||||||||||||
Higher distributions of earnings from Oncor Holdings | 97 | |||||||||||||||||||
Change in accounts payable
|
(78) | |||||||||||||||||||
Lower (higher) purchases of GHG allowances
|
50 | (43) | ||||||||||||||||||
Other | (38) | 11 | 18 | |||||||||||||||||
Change in net cash flows from discontinued operations | 94 | |||||||||||||||||||
$ | (428) | $ | (494) | $ | (145) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Years ended December 31, | Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||||
2020 | $ | 553 | $ | (1,934) | $ | (1,843) | ||||||||||||||
2019 | (4,593) | (1,522) | (1,438) | |||||||||||||||||
Change | $ | 5,146 | $ | (412) | $ | (405) | ||||||||||||||
Contributions to Oncor Holdings to fund Oncor’s purchase of InfraREIT in May 2019 | $ | 1,067 | ||||||||||||||||||
Distribution from Cameron LNG JV in 2020 | 753 | |||||||||||||||||||
Contributions to Peruvian businesses in discontinued operations in 2019 | 583 | |||||||||||||||||||
Contributions to Chilean businesses in discontinued operations in 2019 | 394 | |||||||||||||||||||
Acquisition of investment in Sharyland Holdings in May 2019 | 95 | |||||||||||||||||||
Increase in capital expenditures | (968) | $ | (420) | $ | (404) | |||||||||||||||
Dividends received from Peruvian businesses in discontinued operations in 2019 | (583) | |||||||||||||||||||
Net proceeds from the April 2019 sale of Sempra Renewables’ wind assets and investments | (569) | |||||||||||||||||||
Dividends received from Chilean businesses in discontinued operations in 2019 | (394) | |||||||||||||||||||
Net proceeds from the February 2019 sale of Sempra LNG’s non-utility natural gas storage assets | (322) | |||||||||||||||||||
Loan to ESJ JV in 2020 | (85) | |||||||||||||||||||
Other | (8) | 8 | (1) | |||||||||||||||||
Change in net cash flows from discontinued operations mainly due to $5,766 proceeds, net of transaction costs, offset by $502 cash sold from the sale of our South American businesses | 5,183 | |||||||||||||||||||
$ | 5,146 | $ | (412) | $ | (405) | |||||||||||||||
2019 | $ | (4,593) | $ | (1,522) | $ | (1,438) | ||||||||||||||
2018 | (12,470) | (1,542) | (1,531) | |||||||||||||||||
Change | $ | 7,877 | $ | 20 | $ | 93 | ||||||||||||||
Acquisition of investment in Oncor Holdings in March 2018 | $ | 9,556 | ||||||||||||||||||
Dividends received from Peruvian businesses in discontinued operations in 2019 | 583 | |||||||||||||||||||
Dividends received from Chilean businesses in discontinued operations in 2019 | 394 | |||||||||||||||||||
Net proceeds from sale of Sempra LNG’s non-utility natural gas storage assets
|
322 | |||||||||||||||||||
Lower expenditures for investments in Cameron LNG JV and IMG JV | 245 | |||||||||||||||||||
Lower advances to unconsolidated affiliates | 79 | |||||||||||||||||||
Higher contributions to Oncor Holdings primarily to fund Oncor’s purchase of InfraREIT in May 2019
|
(1,357) | |||||||||||||||||||
Lower net proceeds from sale of certain Sempra Renewables’ assets and investments ($569 in 2019 and $1,571 in 2018)
|
(1,002) | |||||||||||||||||||
Contributions to Peruvian businesses in discontinued operations in 2019 | (583) | |||||||||||||||||||
Contributions to Chilean businesses in discontinued operations in 2019 | (394) | |||||||||||||||||||
(Increase) decrease in capital expenditures | (164) | $ | 20 | $ | 99 | |||||||||||||||
Acquisition of investment in Sharyland Holdings in May 2019 | (95) | |||||||||||||||||||
Other | 40 | (6) | ||||||||||||||||||
Change in net cash flows from discontinued operations | 253 | |||||||||||||||||||
$ | 7,877 | $ | 20 | $ | 93 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Years ended December 31, | Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||||
2020 | $ | (2,373) | $ | 797 | $ | 311 | ||||||||||||||
2019 | 1,475 | 405 | 562 | |||||||||||||||||
Change | $ | (3,848) | $ | 392 | $ | (251) | ||||||||||||||
Change in short-term debt, net | $ | (2,415) | $ | 131 | $ | (891) | ||||||||||||||
Net proceeds from issuances of common stock from settlement of forward sale agreements in 2019 | (1,794) | |||||||||||||||||||
Higher payments for commercial paper and other short-term debt with maturities greater than 90 days
|
(1,341) | |||||||||||||||||||
Higher payments on long-term debt and finance leases | (856) | (236) | (6) | |||||||||||||||||
Repurchase of common stock under ASR program in 2020 | (500) | |||||||||||||||||||
Higher repurchases of IEnova stock held by NCI | (221) | |||||||||||||||||||
Lower issuances of short-term debt with maturities greater than 90 days | (213) | |||||||||||||||||||
(Higher) lower common dividends paid | (181) | (200) | 50 | |||||||||||||||||
Capital contribution from OMEC LLC in 2019 to repay OMEC’s loan | (175) | (175) | ||||||||||||||||||
Lower advances from unconsolidated affiliates | (91) | |||||||||||||||||||
Equity contribution from Sempra Energy to fund initial shareholder contribution to the Wildfire Fund in September 2019 | (322) | |||||||||||||||||||
Higher issuances of long-term debt | 1,968 | 1,198 | 600 | |||||||||||||||||
Net proceeds from issuance of series C preferred stock | 891 | |||||||||||||||||||
Change in intercompany activities with discontinued operations primarily related to intercompany loans in 2019 | 266 | |||||||||||||||||||
Other | 21 | (4) | (4) | |||||||||||||||||
Change in net cash flows from discontinued operations primarily from a $250 intercompany loan and $60 net increase in short-term debt in 2020 and $977 equity contribution from Sempra Energy, offset by $1,380 common dividends paid in 2019 | 793 | |||||||||||||||||||
$ | (3,848) | $ | 392 | $ | (251) | |||||||||||||||
2019 | $ | 1,475 | $ | 405 | $ | 562 | ||||||||||||||
2018 | 8,850 | (34) | 528 | |||||||||||||||||
Change | $ | (7,375) | $ | 439 | $ | 34 | ||||||||||||||
Higher issuances of long-term debt in 2018, including increases at Sempra Energy Consolidated primarily to fund the March 2018 acquisition of investment in Oncor Holdings and at SDG&E from issuance of a new loan by OMEC LLC to partially repay OMEC’s project financing loan
|
$ | (4,826) | $ | (218) | $ | (600) | ||||||||||||||
Net proceeds from 2018 issuances of mandatory convertible preferred stock | (2,258) | |||||||||||||||||||
Lower net proceeds from issuances of common stock primarily related to settlements of forward sale agreements
|
(442) | |||||||||||||||||||
(Higher) lower payments on long-term debt and finance leases | (217) | 218 | 494 | |||||||||||||||||
(Higher) lower common dividends paid | (169) | 250 | (100) | |||||||||||||||||
Change in intercompany activities with discontinued operations primarily related to intercompany loans
|
(157) | |||||||||||||||||||
Higher payments for commercial paper and other short-term debt with maturities greater than 90 days
|
(108) | |||||||||||||||||||
Increase (decrease) in short-term debt, net | 740 | (249) | 234 | |||||||||||||||||
Higher issuances of commercial paper and other short-term debt with maturities greater than 90 days
|
195 | |||||||||||||||||||
Advances from unconsolidated affiliates | 155 | |||||||||||||||||||
Higher capital contributions from OMEC LLC to repay OMEC’s loan
|
110 | 110 | ||||||||||||||||||
Equity contribution from Sempra Energy to fund initial shareholder contribution to the Wildfire Fund in September 2019 | 322 | |||||||||||||||||||
Other | (31) | 6 | 6 | |||||||||||||||||
Change in net cash flows from discontinued operations primarily from $1,311 common dividends paid offset by $977 equity contributions received in 2019 | (367) | |||||||||||||||||||
$ | (7,375) | $ | 439 | $ | 34 |
EXPENDITURES FOR PP&E | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
SDG&E | $ | 1,942 | $ | 1,522 | $ | 1,542 | |||||||||||
SoCalGas | 1,843 | 1,439 | 1,538 | ||||||||||||||
Sempra Mexico | 611 | 624 | 368 | ||||||||||||||
Sempra LNG | 268 | 112 | 31 | ||||||||||||||
Sempra Renewables | — | 2 | 51 | ||||||||||||||
Parent and other | 12 | 9 | 14 | ||||||||||||||
Total | $ | 4,676 | $ | 3,708 | $ | 3,544 |
FUTURE CAPITAL EXPENDITURES AND INVESTMENTS | |||||
(Dollars in millions) | |||||
Year ended December 31, 2021 | |||||
SDG&E | $ | 2,400 | |||
SoCalGas | 2,000 | ||||
Sempra Texas Utilities | 200 | ||||
Sempra Mexico | 400 | ||||
Sempra LNG | 800 | ||||
Total | $ | 5,800 |
TOTAL CAPITALIZATION AND DEBT-TO-CAPITALIZATION RATIOS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Sempra Energy | |||||||||||||||||
Consolidated | SDG&E | SoCalGas | |||||||||||||||
December 31, 2020 | |||||||||||||||||
Total capitalization | $ | 49,140 | $ | 15,207 | $ | 10,030 | |||||||||||
Debt-to-capitalization ratio | 49 | % | 49 | % | 49 | % | |||||||||||
December 31, 2019 | |||||||||||||||||
Total capitalization | $ | 47,621 | $ | 13,542 | $ | 9,172 | |||||||||||
Debt-to-capitalization ratio | 54 | % | 48 | % | 48 | % |
UNDISCOUNTED PRINCIPAL CONTRACTUAL COMMITMENTS – SEMPRA ENERGY CONSOLIDATED | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
2021 | 2022 and 2023 | 2024 and 2025 | Thereafter | Total | |||||||||||||||||||||||||
Long-term debt | $ | 1,504 | $ | 2,632 | $ | 1,875 | $ | 16,248 | $ | 22,259 | |||||||||||||||||||
Interest on long-term debt(1)
|
845 | 1,614 | 1,442 | 11,111 | 15,012 | ||||||||||||||||||||||||
Operating leases | 73 | 119 | 91 | 415 | 698 | ||||||||||||||||||||||||
Finance leases | 206 | 406 | 391 | 2,465 | 3,468 | ||||||||||||||||||||||||
Purchased-power contracts – fixed payments
|
222 | 381 | 233 | 794 | 1,630 | ||||||||||||||||||||||||
Purchased-power contracts – estimated variable payments
|
363 | 726 | 724 | 3,610 | 5,423 | ||||||||||||||||||||||||
Natural gas contracts(2)
|
280 | 422 | 319 | 1,032 | 2,053 | ||||||||||||||||||||||||
LNG contract(3)
|
320 | 811 | 776 | 1,452 | 3,359 | ||||||||||||||||||||||||
Construction commitments | 525 | 41 | 32 | 98 | 696 | ||||||||||||||||||||||||
SONGS decommissioning | 110 | 146 | 89 | 697 | 1,042 | ||||||||||||||||||||||||
Other asset retirement obligations | 66 | 146 | 154 | 11,768 | 12,134 | ||||||||||||||||||||||||
Sunrise Powerlink wildfire mitigation fund | 4 | 8 | 8 | 279 | 299 | ||||||||||||||||||||||||
Pension and other postretirement benefit obligations(4)
|
251 | 461 | 477 | 922 | 2,111 | ||||||||||||||||||||||||
Wildfire Fund obligation | 13 | 26 | 26 | 38 | 103 | ||||||||||||||||||||||||
Environmental commitments(5)
|
12 | 19 | 9 | 58 | 98 | ||||||||||||||||||||||||
Other | 70 | 44 | 24 | 98 | 236 | ||||||||||||||||||||||||
Total | $ | 4,864 | $ | 8,002 | $ | 6,670 | $ | 51,085 | $ | 70,621 |
UNDISCOUNTED PRINCIPAL CONTRACTUAL COMMITMENTS – SDG&E | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
2021 | 2022 and 2023 | 2024 and 2025 | Thereafter | Total | |||||||||||||||||||||||||
Long-term debt | $ | 585 | $ | 468 | $ | — | $ | 5,200 | $ | 6,253 | |||||||||||||||||||
Interest on long-term debt(1)
|
230 | 438 | 411 | 2,875 | 3,954 | ||||||||||||||||||||||||
Operating leases | 30 | 39 | 20 | 22 | 111 | ||||||||||||||||||||||||
Finance leases | 194 | 388 | 374 | 2,453 | 3,409 | ||||||||||||||||||||||||
Purchased-power contracts – fixed payments
|
222 | 381 | 233 | 794 | 1,630 | ||||||||||||||||||||||||
Purchased-power contracts – estimated variable payments
|
363 | 726 | 724 | 3,610 | 5,423 | ||||||||||||||||||||||||
Construction commitments | 2 | 2 | 2 | 19 | 25 | ||||||||||||||||||||||||
SONGS decommissioning | 110 | 146 | 89 | 697 | 1,042 | ||||||||||||||||||||||||
Other asset retirement obligations | 7 | 12 | 14 | 1,250 | 1,283 | ||||||||||||||||||||||||
Sunrise Powerlink wildfire mitigation fund | 4 | 8 | 8 | 279 | 299 | ||||||||||||||||||||||||
Pension and other postretirement benefit obligations(2)
|
54 | 106 | 58 | 92 | 310 | ||||||||||||||||||||||||
Wildfire Fund obligation | 13 | 26 | 26 | 38 | 103 | ||||||||||||||||||||||||
Environmental commitments | 2 | 4 | 4 | 46 | 56 | ||||||||||||||||||||||||
Other | 4 | 7 | 7 | 48 | 66 | ||||||||||||||||||||||||
Total | $ | 1,820 | $ | 2,751 | $ | 1,970 | $ | 17,423 | $ | 23,964 |
UNDISCOUNTED PRINCIPAL CONTRACTUAL COMMITMENTS – SOCALGAS | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
2021 | 2022 and 2023 | 2024 and 2025 | Thereafter | Total | |||||||||||||||||||||||||
Long-term debt | $ | — | $ | 300 | $ | 850 | $ | 3,609 | $ | 4,759 | |||||||||||||||||||
Interest on long-term debt(1)
|
167 | 334 | 303 | 2,115 | 2,919 | ||||||||||||||||||||||||
Natural gas contracts | 175 | 249 | 171 | 359 | 954 | ||||||||||||||||||||||||
Operating leases | 19 | 30 | 20 | 8 | 77 | ||||||||||||||||||||||||
Finance leases | 12 | 18 | 17 | 12 | 59 | ||||||||||||||||||||||||
Environmental commitments(2)
|
10 | 15 | 5 | 11 | 41 | ||||||||||||||||||||||||
Pension and other postretirement benefit obligations(3)
|
158 | 306 | 378 | 731 | 1,573 | ||||||||||||||||||||||||
Asset retirement obligations | 59 | 134 | 140 | 10,240 | 10,573 | ||||||||||||||||||||||||
Other | 2 | 4 | 4 | 34 | 44 | ||||||||||||||||||||||||
Total | $ | 602 | $ | 1,390 | $ | 1,888 | $ | 17,119 | $ | 20,999 |
NOMINAL AMOUNT OF DEBT(1)
|
|||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | Sempra Energy Consolidated | SDG&E | SoCalGas | ||||||||||||||||||||||||||||||
Short-term: | |||||||||||||||||||||||||||||||||||
California Utilities
|
$ | 113 | $ | — | $ | 113 | $ | 710 | $ | 80 | $ | 630 | |||||||||||||||||||||||
Other
|
772 | — | — | 2,798 | — | — | |||||||||||||||||||||||||||||
Long-term: | |||||||||||||||||||||||||||||||||||
California Utilities fixed-rate
|
$ | 10,512 | $ | 6,053 | $ | 4,459 | $ | 8,949 | $ | 5,140 | $ | 3,809 | |||||||||||||||||||||||
California Utilities variable-rate
|
500 | 200 | 300 | — | — | — | |||||||||||||||||||||||||||||
Other fixed-rate
|
11,204 | — | — | 11,561 | — | — | |||||||||||||||||||||||||||||
Other variable-rate
|
51 | — | — | 746 | — | — |
HYPOTHETICAL EFFECTS FROM 10% STRENGTHENING OF U.S. DOLLAR (1)
|
|||||
(Dollars in millions) | |||||
Hypothetical effects | |||||
Translation of 2020 earnings to U.S. dollars(2)
|
$ | (2) | |||
Transactional exposure(3)
|
115 | ||||
Translation of net assets of foreign subsidiaries and investment in foreign entities(4)
|
(17) |
EQUITY COMPENSATION PLANS | |||||||||||||||||
Equity compensation plans approved by shareholders |
Number of shares to be issued upon exercise of outstanding options, warrants and rights(1)
|
Weighted-average exercise price of outstanding options, warrants and rights(2)
|
Number of additional shares remaining available for future issuance(3)
|
||||||||||||||
2013 LTIP | 1,087,964 | $ | 106.76 | — | |||||||||||||
2019 LTIP | 514,969 | $ | 149.12 | 6,927,284 |
PRINCIPAL ACCOUNTANT FEES | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||||||||||||||||||||||||||
Fees | Percent of total | Fees | Percent of total | Fees | Percent of total | ||||||||||||||||||||||||||||||||||||
2020: | |||||||||||||||||||||||||||||||||||||||||
Audit fees: | |||||||||||||||||||||||||||||||||||||||||
Consolidated financial statements, internal controls audits and subsidiary audits
|
$ | 9,145 | $ | 2,469 | $ | 3,023 | |||||||||||||||||||||||||||||||||||
Regulatory filings and related services | 827 | 100 | 55 | ||||||||||||||||||||||||||||||||||||||
Total audit fees | 9,972 | 82 | % | 2,569 | 86 | % | 3,078 | 90 | % | ||||||||||||||||||||||||||||||||
Audit-related fees: | |||||||||||||||||||||||||||||||||||||||||
Employee benefit plan audits | 505 | 183 | 307 | ||||||||||||||||||||||||||||||||||||||
Other audit-related services(1)
|
1,494 | 137 | — | ||||||||||||||||||||||||||||||||||||||
Total audit-related fees | 1,999 | 17 | 320 | 11 | 307 | 9 | |||||||||||||||||||||||||||||||||||
Tax fees(2)
|
156 | 1 | 111 | 3 | 32 | 1 | |||||||||||||||||||||||||||||||||||
All other fees(3)
|
22 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total fees | $ | 12,149 | 100 | % | $ | 3,000 | 100 | % | $ | 3,417 | 100 | % | |||||||||||||||||||||||||||||
2019: | |||||||||||||||||||||||||||||||||||||||||
Audit fees: | |||||||||||||||||||||||||||||||||||||||||
Consolidated financial statements, internal controls audits and subsidiary audits
|
$ | 10,568 | $ | 2,804 | $ | 2,789 | |||||||||||||||||||||||||||||||||||
Regulatory filings and related services | 466 | 45 | 45 | ||||||||||||||||||||||||||||||||||||||
Total audit fees | 11,034 | 87 | % | 2,849 | 89 | % | 2,834 | 91 | % | ||||||||||||||||||||||||||||||||
Audit-related fees: | |||||||||||||||||||||||||||||||||||||||||
Employee benefit plan audits | 517 | 162 | 286 | ||||||||||||||||||||||||||||||||||||||
Other audit-related services(1)
|
883 | 99 | 10 | ||||||||||||||||||||||||||||||||||||||
Total audit-related fees | 1,400 | 11 | 261 | 8 | 296 | 9 | |||||||||||||||||||||||||||||||||||
Tax fees(2)
|
74 | 1 | 73 | 3 | — | — | |||||||||||||||||||||||||||||||||||
All other fees(3)
|
74 | 1 | 15 | — | — | — | |||||||||||||||||||||||||||||||||||
Total fees | $ | 12,582 | 100 | % | $ | 3,198 | 100 | % | $ | 3,130 | 100 | % |
EXHIBIT INDEX (CONTINUED) | ||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | Form or Registration Statement No. | Exhibit or Appendix | Filing Date | |||||||||||||||
4.12 | 8-K | 4.1 | 06/09/17 | |||||||||||||||||
4.13 | 8-K | 4.1 | 10/13/17 | |||||||||||||||||
4.14 | 8-K | 4.1 | 01/12/18 | |||||||||||||||||
4.15 | 8-K | 4.2 | 06/26/19 | |||||||||||||||||
4.16 | 8-K | 4.1 | 06/26/19 | |||||||||||||||||
Southern California Gas Company
|
||||||||||||||||||||
4.17 | 10-K | 3.01 | 03/28/97 | |||||||||||||||||
4.18 | 10-K | 4.9 | 02/27/20 | |||||||||||||||||
Sempra Energy / San Diego Gas & Electric Company
|
||||||||||||||||||||
4.19 | Mortgage and Deed of Trust dated July 1, 1940. | 2-4769 | B-3 | (1) | ||||||||||||||||
4.20 | Second Supplemental Indenture dated as of March 1, 1948. | 2-7418 | B-5B | (1) | ||||||||||||||||
4.21 | Ninth Supplemental Indenture dated as of August 1, 1968. | 333-52150 | 4.5 | (1) | ||||||||||||||||
4.22 | Tenth Supplemental Indenture dated as of December 1, 1968. | 2-36042 | 2-K | (1) | ||||||||||||||||
4.23 | Sixteenth Supplemental Indenture dated August 28, 1975. | 33-34017 | 4.2 | (1) | ||||||||||||||||
4.24 | 8-K | 4.1 | 05/19/05 | |||||||||||||||||
4.25 | 8-K | 4.1 | 06/08/06 | |||||||||||||||||
4.26 | 8-K | 4.1 | 09/20/07 | |||||||||||||||||
4.27 | 8-K | 4.1 | 05/15/09 | |||||||||||||||||
4.28 | 8-K | 4.1 | 05/13/10 | |||||||||||||||||
4.29 | 8-K | 4.1 | 08/26/10 | |||||||||||||||||
4.30 | 8-K | 4.1 | 08/18/11 | |||||||||||||||||
4.31 | 8-K | 4.1 | 11/17/11 | |||||||||||||||||
4.32 | 8-K | 4.1 | 03/23/12 | |||||||||||||||||
4.33 | 8-K | 4.1 | 09/09/13 | |||||||||||||||||
4.34 | 8-K | 4.2 | 03/12/15 | |||||||||||||||||
4.35 | 8-K | 4.1 | 05/19/16 | |||||||||||||||||
4.36 | 8-K | 4.1 | 06/08/17 | |||||||||||||||||
EXHIBIT INDEX (CONTINUED) | ||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | Form or Registration Statement No. | Exhibit or Appendix | Filing Date | |||||||||||||||
4.37 | 8-K | 4.1 | 05/17/18 | |||||||||||||||||
4.38 | 8-K | 4.1 | 05/31/19 | |||||||||||||||||
4.39 | 8-K | 4.1 | 04/07/20 | |||||||||||||||||
4.40 | 8-K | 4.1 | 09/28/20 | |||||||||||||||||
Sempra Energy / Southern California Gas Company
|
||||||||||||||||||||
4.41 | First Mortgage Indenture of Southern California Gas Company to American Trust Company dated October 1, 1940. | 2-4504 | B-4 | (1) | ||||||||||||||||
4.42 | Supplemental Indenture of Southern California Gas Company to American Trust Company dated as of August 1, 1955. | 2-11997 | 4.07 | (1) | ||||||||||||||||
4.43 | 10-K | 4.09 | 02/23/07 | |||||||||||||||||
4.44 | 10-K | 4.10 | 02/23/07 | |||||||||||||||||
4.45 | Supplemental Indenture of Southern California Gas Company to Wells Fargo Bank, National Association dated as of August 1, 1972. | 2-59832 | 2.19 | (1) | ||||||||||||||||
4.46 | Supplemental Indenture of Southern California Gas Company to Wells Fargo Bank, National Association dated as of May 1, 1976. | 2-56034 | 2.20 | (1) | ||||||||||||||||
4.47 | Supplemental Indenture of Southern California Gas Company to Wells Fargo Bank, National Association dated as of September 15, 1981. | 333-70654 | 4.24 | (1) | ||||||||||||||||
4.48 | 8-K | 4.1 | 11/18/05 | |||||||||||||||||
4.49 | 8-K | 4.1 | 11/18/10 | |||||||||||||||||
4.50 | 8-K | 4.1 | 09/21/12 | |||||||||||||||||
4.51 | 8-K | 4.1 | 03/13/14 | |||||||||||||||||
4.52 | 8-K | 4.1 | 09/11/14 | |||||||||||||||||
4.53 | 8-K | 4.2 | 06/18/15 | |||||||||||||||||
4.54 | 8-K | 4.1 | 06/03/16 | |||||||||||||||||
4.55 | 8-K | 4.1 | 05/15/18 | |||||||||||||||||
4.56 | 8-K | 4.1 | 09/24/18 | |||||||||||||||||
4.57 | 8-K | 4.1 | 06/04/19 | |||||||||||||||||
EXHIBIT INDEX (CONTINUED) | ||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | Form or Registration Statement No. | Exhibit or Appendix | Filing Date | |||||||||||||||
10.10 | 10-K | 10.5 | 02/27/20 | |||||||||||||||||
10.11 | 10-K | 10.6 | 02/27/20 | |||||||||||||||||
10.12 | 10-Q | 10.1 | 11/05/20 | |||||||||||||||||
10.13 | 10-K | 10.7 | 02/27/20 | |||||||||||||||||
10.14 | 10-K | 10.8 | 02/27/20 | |||||||||||||||||
10.15 | 10-K | 10.9 | 02/27/20 | |||||||||||||||||
10.16 | DEF 14A | E | 03/22/19 | |||||||||||||||||
10.17 | 10-Q | 10.2 | 08/02/19 | |||||||||||||||||
10.18 | 10-Q | 10.5 | 08/02/19 | |||||||||||||||||
10.19 | 10-Q | 10.1 | 05/07/19 | |||||||||||||||||
10.20 | 10-Q | 10.2 | 05/07/19 | |||||||||||||||||
10.21 | 10-Q | 10.3 | 05/07/19 | |||||||||||||||||
10.22 | 10-Q | 10.4 | 05/07/19 | |||||||||||||||||
10.23 | 10-Q | 10.5 | 05/07/19 | |||||||||||||||||
10.24 | 10-Q | 10.1 | 05/04/16 | |||||||||||||||||
10.25 | 10-K | 10.19 | 02/27/14 | |||||||||||||||||
10.26 | X | |||||||||||||||||||
10.27 | 10-K | 10.5 | 02/26/16 | |||||||||||||||||
10.28 | 10-Q | 10.8 | 05/07/18 | |||||||||||||||||
EXHIBIT INDEX (CONTINUED) | ||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed or Furnished Herewith | Form or Registration Statement No. | Exhibit or Appendix | Filing Date | |||||||||||||||
10.29 | 10-Q | 10.9 | 05/07/18 | |||||||||||||||||
10.30 | 10-Q | 10.10 | 05/07/18 | |||||||||||||||||
10.31 | 10-Q | 10.11 | 05/07/18 | |||||||||||||||||
10.32 | 10-Q | 10.12 | 05/07/18 | |||||||||||||||||
10.33 | X | |||||||||||||||||||
10.34 | 10-Q | 10.13 | 05/07/18 | |||||||||||||||||
10.35 | 10-K | 10.28 | 02/28/17 | |||||||||||||||||
10.36 | 10-K | 10.28 | 02/26/16 | |||||||||||||||||
10.37 | 10-K | 10.29 | 02/26/16 | |||||||||||||||||
10.38 | 10-K | 10.43 | 02/26/15 | |||||||||||||||||
10.39 | 10-K | 10.31 | 02/26/16 | |||||||||||||||||
10.40 | 10-K | 10.22 | 02/26/13 | |||||||||||||||||
10.41 | 10-K | 10.35 | 02/27/20 | |||||||||||||||||
10.42 | 10-Q | 10.2 | 08/07/08 | |||||||||||||||||
Sempra Energy
|
||||||||||||||||||||
10.43 | 10-Q | 10.3 | 08/02/19 | |||||||||||||||||
10.44 | 10-Q | 10.4 | 08/02/19 | |||||||||||||||||
10.45 | 10-K | 10.09 | 02/26/03 | |||||||||||||||||
10.46 | 10-K | 10.50 | 02/27/18 | |||||||||||||||||
10.47 | 10-Q | 10.7 | 08/07/08 | |||||||||||||||||
10.48 | 10-Q | 10.7 | 05/07/18 | |||||||||||||||||
Pursuant to the requirements of the Securities Exchange Act of 1934 (the Act), this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated. | ||||||||
Name/Title | Signature | Date | ||||||
Principal Executive Officer:
J. Walker Martin
Chief Executive Officer and President
|
/s/ J. Walker Martin | February 25, 2021 | ||||||
Principal Financial Officer:
Trevor I. Mihalik
Executive Vice President and Chief Financial Officer
|
/s/ Trevor I. Mihalik | February 25, 2021 | ||||||
Principal Accounting Officer:
Peter R. Wall
Senior Vice President, Controller and Chief Accounting Officer
|
/s/ Peter R. Wall | February 25, 2021 | ||||||
Directors: | ||||||||
J. Walker Martin, Chairman | /s/ J. Walker Martin | February 25, 2021 | ||||||
Alan L. Boeckmann, Director | /s/ Alan L. Boeckmann | February 25, 2021 | ||||||
Kathleen L. Brown, Director | /s/ Kathleen L. Brown | February 25, 2021 | ||||||
Andrés Conesa, Director | /s/ Andrés Conesa | February 25, 2021 | ||||||
Maria Contreras-Sweet, Director | /s/ Maria Contreras-Sweet | February 25, 2021 | ||||||
Pablo A. Ferrero, Director | /s/ Pablo A. Ferrero | February 25, 2021 | ||||||
William D. Jones, Director | /s/ William D. Jones | February 25, 2021 | ||||||
Bethany J. Mayer, Director | /s/ Bethany J. Mayer | February 25, 2021 | ||||||
Michael N. Mears, Director | /s/ Michael N. Mears | February 25, 2021 | ||||||
Jack T. Taylor, Director | /s/ Jack T. Taylor | February 25, 2021 | ||||||
Cynthia L. Walker, Director | /s/ Cynthia L. Walker | February 25, 2021 | ||||||
Cynthia J. Warner, Director | /s/ Cynthia J. Warner | February 25, 2021 | ||||||
James C. Yardley, Director | /s/ James C. Yardley | February 25, 2021 |
San Diego Gas & Electric Company: | |||||
SIGNATURES | |||||
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | |||||
SAN DIEGO GAS & ELECTRIC COMPANY,
(Registrant) |
|||||
By: /s/ Caroline A. Winn | |||||
Caroline A. Winn
Chief Executive Officer |
|||||
Date: February 25, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 (the Act), this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated. | ||||||||
Name/Title | Signature | Date | ||||||
Principal Executive Officer:
Caroline A. Winn
Chief Executive Officer
|
/s/ Caroline A. Winn | February 25, 2021 | ||||||
Principal Financial Officer:
Bruce A. Folkmann
President and Chief Financial Officer
|
/s/ Bruce A. Folkmann | February 25, 2021 | ||||||
Principal Accounting Officer:
Valerie A. Bille
Vice President, Controller and Chief Accounting Officer
|
/s/ Valerie A. Bille | February 25, 2021 | ||||||
Directors: | ||||||||
Kevin C. Sagara, Non-Executive Chairman | /s/ Kevin C. Sagara | February 25, 2021 | ||||||
Robert J. Borthwick, Director | /s/ Robert J. Borthwick | February 25, 2021 | ||||||
Erbin B. Keith, Director | /s/ Erbin B. Keith | February 25, 2021 | ||||||
Trevor I. Mihalik, Director | /s/ Trevor I. Mihalik | February 25, 2021 | ||||||
Caroline A. Winn, Director | /s/ Caroline A. Winn | February 25, 2021 |
Southern California Gas Company:
|
|||||
SIGNATURES | |||||
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | |||||
SOUTHERN CALIFORNIA GAS COMPANY,
(Registrant) |
|||||
By: /s/ Scott D. Drury | |||||
Scott D. Drury
Chief Executive Officer |
|||||
Date: February 25, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated. | ||||||||
Name/Title | Signature | Date | ||||||
Principal Executive Officer:
Scott D. Drury
Chief Executive Officer
|
/s/ Scott D. Drury |
February 25, 2021 | ||||||
Principal Financial and Accounting Officer:
Mia L. DeMontigny
Vice President, Controller, Chief Financial Officer and Chief Accounting Officer
|
/s/ Mia L. DeMontigny |
February 25, 2021 | ||||||
Directors: | ||||||||
Kevin C. Sagara, Non-Executive Chairman | /s/ Kevin C. Sagara | February 25, 2021 | ||||||
Scott D. Drury, Director | /s/ Scott D. Drury | February 25, 2021 | ||||||
Lisa Larroque Alexander, Director | /s/ Lisa Larroque Alexander | February 25, 2021 | ||||||
Trevor I. Mihalik, Director | /s/ Trevor I. Mihalik | February 25, 2021 |
SEMPRA ENERGY
|
|||||||||||
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
|
|||||||||||
Consolidated Financial Statements: | Sempra Energy |
San Diego
Gas & Electric Company
|
Southern California Gas Company | ||||||||
Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018 | |||||||||||
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2020, 2019 and 2018 | |||||||||||
Consolidated Balance Sheets at December 31, 2020 and 2019 | |||||||||||
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018 | |||||||||||
Consolidated Statements of Changes in Equity for the years ended December 31, 2020, 2019 and 2018 | N/A | ||||||||||
Statements of Changes in Shareholders’ Equity for the years ended December 31, 2020, 2019 and 2018 | N/A | N/A | |||||||||
SEMPRA ENERGY | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(Dollars in millions, except per share amounts; shares in thousands) | ||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
REVENUES | ||||||||||||||||||||
Utilities | $ | 10,025 | $ | 9,448 | $ | 8,539 | ||||||||||||||
Energy-related businesses | 1,345 | 1,381 | 1,563 | |||||||||||||||||
Total revenues | 11,370 | 10,829 | 10,102 | |||||||||||||||||
EXPENSES AND OTHER INCOME | ||||||||||||||||||||
Utilities: | ||||||||||||||||||||
Cost of natural gas | (925) | (1,139) | (1,208) | |||||||||||||||||
Cost of electric fuel and purchased power | (1,187) | (1,188) | (1,358) | |||||||||||||||||
Energy-related businesses cost of sales | (276) | (344) | (357) | |||||||||||||||||
Operation and maintenance | (3,940) | (3,466) | (3,150) | |||||||||||||||||
Aliso Canyon litigation and regulatory matters | (307) | — | — | |||||||||||||||||
Depreciation and amortization | (1,666) | (1,569) | (1,491) | |||||||||||||||||
Franchise fees and other taxes | (543) | (496) | (472) | |||||||||||||||||
Impairment losses | (1) | (43) | (1,122) | |||||||||||||||||
(Loss) gain on sale of assets | (3) | 63 | 513 | |||||||||||||||||
Other (expense) income, net | (48) | 77 | 58 | |||||||||||||||||
Interest income | 96 | 87 | 85 | |||||||||||||||||
Interest expense | (1,081) | (1,077) | (886) | |||||||||||||||||
Income from continuing operations before income taxes and equity earnings | 1,489 | 1,734 | 714 | |||||||||||||||||
Income tax (expense) benefit | (249) | (315) | 49 | |||||||||||||||||
Equity earnings | 1,015 | 580 | 175 | |||||||||||||||||
Income from continuing operations, net of income tax | 2,255 | 1,999 | 938 | |||||||||||||||||
Income from discontinued operations, net of income tax | 1,850 | 363 | 188 | |||||||||||||||||
Net income | 4,105 | 2,362 | 1,126 | |||||||||||||||||
Earnings attributable to noncontrolling interests | (172) | (164) | (76) | |||||||||||||||||
Preferred dividends | (168) | (142) | (125) | |||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | |||||||||||||||||
Earnings attributable to common shares | $ | 3,764 | $ | 2,055 | $ | 924 | ||||||||||||||
Basic EPS: | ||||||||||||||||||||
Earnings from continuing operations | $ | 6.61 | $ | 6.22 | $ | 2.86 | ||||||||||||||
Earnings from discontinued operations | $ | 6.32 | $ | 1.18 | $ | 0.59 | ||||||||||||||
Earnings | $ | 12.93 | $ | 7.40 | $ | 3.45 | ||||||||||||||
Weighted-average common shares outstanding | 291,077 | 277,904 | 268,072 | |||||||||||||||||
Diluted EPS: | ||||||||||||||||||||
Earnings from continuing operations | $ | 6.58 | $ | 6.13 | $ | 2.84 | ||||||||||||||
Earnings from discontinued operations | $ | 6.30 | $ | 1.16 | $ | 0.58 | ||||||||||||||
Earnings | $ | 12.88 | $ | 7.29 | $ | 3.42 | ||||||||||||||
Weighted-average common shares outstanding | 292,252 | 282,033 | 269,852 |
SEMPRA ENERGY | |||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Years ended December 31, 2020, 2019 and 2018 | |||||||||||||||||||||||||||||
Sempra Energy shareholders’ equity | |||||||||||||||||||||||||||||
Pretax amount | Income tax (expense) benefit | Net-of-tax amount | Noncontrolling interests (after tax) | Total | |||||||||||||||||||||||||
2020: | |||||||||||||||||||||||||||||
Net income | $ | 5,368 | $ | (1,435) | $ | 3,933 | $ | 172 | $ | 4,105 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | 547 | — | 547 | (12) | 535 | ||||||||||||||||||||||||
Financial instruments | (146) | 33 | (113) | (12) | (125) | ||||||||||||||||||||||||
Pension and other postretirement benefits | 11 | 1 | 12 | — | 12 | ||||||||||||||||||||||||
Total other comprehensive income (loss) | 412 | 34 | 446 | (24) | 422 | ||||||||||||||||||||||||
Comprehensive income | 5,780 | (1,401) | 4,379 | 148 | 4,527 | ||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | — | (1) | — | (1) | ||||||||||||||||||||||||
Comprehensive income, after
preferred dividends of subsidiary |
$ | 5,779 | $ | (1,401) | $ | 4,378 | $ | 148 | $ | 4,526 | |||||||||||||||||||
2019: | |||||||||||||||||||||||||||||
Net income | $ | 2,585 | $ | (387) | $ | 2,198 | $ | 164 | $ | 2,362 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | (43) | — | (43) | 3 | (40) | ||||||||||||||||||||||||
Financial instruments | (161) | 53 | (108) | (10) | (118) | ||||||||||||||||||||||||
Pension and other postretirement benefits | 25 | (7) | 18 | — | 18 | ||||||||||||||||||||||||
Total other comprehensive loss | (179) | 46 | (133) | (7) | (140) | ||||||||||||||||||||||||
Comprehensive income | 2,406 | (341) | 2,065 | 157 | 2,222 | ||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | — | (1) | — | (1) | ||||||||||||||||||||||||
Comprehensive income, after
preferred dividends of subsidiary |
$ | 2,405 | $ | (341) | $ | 2,064 | $ | 157 | $ | 2,221 | |||||||||||||||||||
2018: | |||||||||||||||||||||||||||||
Net income | $ | 1,146 | $ | (96) | $ | 1,050 | $ | 76 | $ | 1,126 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | (144) | — | (144) | (11) | (155) | ||||||||||||||||||||||||
Financial instruments | 64 | (21) | 43 | 13 | 56 | ||||||||||||||||||||||||
Pension and other postretirement benefits | (38) | 4 | (34) | — | (34) | ||||||||||||||||||||||||
Total other comprehensive (loss) income | (118) | (17) | (135) | 2 | (133) | ||||||||||||||||||||||||
Comprehensive income | 1,028 | (113) | 915 | 78 | 993 | ||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | — | (1) | — | (1) | ||||||||||||||||||||||||
Comprehensive income, after
preferred dividends of subsidiary |
$ | 1,027 | $ | (113) | $ | 914 | $ | 78 | $ | 992 |
SEMPRA ENERGY | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 960 | $ | 108 | |||||||
Restricted cash | 22 | 31 | |||||||||
Accounts receivable – trade, net | 1,578 | 1,261 | |||||||||
Accounts receivable – other, net | 403 | 455 | |||||||||
Due from unconsolidated affiliates | 20 | 32 | |||||||||
Income taxes receivable | 113 | 112 | |||||||||
Inventories | 308 | 277 | |||||||||
Regulatory assets | 190 | 222 | |||||||||
Greenhouse gas allowances | 553 | 72 | |||||||||
Assets held for sale in discontinued operations | — | 445 | |||||||||
Other current assets | 364 | 324 | |||||||||
Total current assets | 4,511 | 3,339 | |||||||||
Other assets: | |||||||||||
Restricted cash | 3 | 3 | |||||||||
Due from unconsolidated affiliates | 780 | 742 | |||||||||
Regulatory assets | 1,822 | 1,930 | |||||||||
Nuclear decommissioning trusts | 1,019 | 1,082 | |||||||||
Investment in Oncor Holdings | 12,440 | 11,519 | |||||||||
Other investments | 1,388 | 2,103 | |||||||||
Goodwill | 1,602 | 1,602 | |||||||||
Other intangible assets | 202 | 213 | |||||||||
Dedicated assets in support of certain benefit plans | 512 | 488 | |||||||||
Insurance receivable for Aliso Canyon costs | 445 | 339 | |||||||||
Deferred income taxes | 136 | 155 | |||||||||
Greenhouse gas allowances | 101 | 470 | |||||||||
Right-of-use assets – operating leases | 543 | 591 | |||||||||
Wildfire fund | 363 | 392 | |||||||||
Assets held for sale in discontinued operations | — | 3,513 | |||||||||
Other long-term assets | 753 | 732 | |||||||||
Total other assets | 22,109 | 25,874 | |||||||||
Property, plant and equipment: | |||||||||||
Property, plant and equipment | 53,928 | 49,329 | |||||||||
Less accumulated depreciation and amortization | (13,925) | (12,877) | |||||||||
Property, plant and equipment, net | 40,003 | 36,452 | |||||||||
Total assets | $ | 66,623 | $ | 65,665 |
SEMPRA ENERGY | |||||||||||
CONSOLIDATED BALANCE SHEETS (CONTINUED) | |||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term debt | $ | 885 | $ | 3,505 | |||||||
Accounts payable – trade | 1,359 | 1,234 | |||||||||
Accounts payable – other | 154 | 179 | |||||||||
Due to unconsolidated affiliates | 45 | 5 | |||||||||
Dividends and interest payable | 551 | 515 | |||||||||
Accrued compensation and benefits | 446 | 476 | |||||||||
Regulatory liabilities | 140 | 319 | |||||||||
Current portion of long-term debt and finance leases | 1,540 | 1,526 | |||||||||
Reserve for Aliso Canyon costs | 150 | 9 | |||||||||
Greenhouse gas obligations | 553 | 72 | |||||||||
Liabilities held for sale in discontinued operations | — | 444 | |||||||||
Other current liabilities | 1,016 | 866 | |||||||||
Total current liabilities | 6,839 | 9,150 | |||||||||
Long-term debt and finance leases | 21,781 | 20,785 | |||||||||
Deferred credits and other liabilities: | |||||||||||
Due to unconsolidated affiliates | 234 | 195 | |||||||||
Pension and other postretirement benefit plan obligations, net of plan assets | 1,059 | 1,067 | |||||||||
Deferred income taxes | 2,871 | 2,577 | |||||||||
Regulatory liabilities | 3,372 | 3,741 | |||||||||
Reserve for Aliso Canyon costs | 301 | 7 | |||||||||
Asset retirement obligations | 3,113 | 2,923 | |||||||||
Greenhouse gas obligations | — | 301 | |||||||||
Liabilities held for sale in discontinued operations | — | 1,052 | |||||||||
Deferred credits and other | 2,119 | 2,062 | |||||||||
Total deferred credits and other liabilities | 13,069 | 13,925 | |||||||||
Commitments and contingencies (Note 16) | |||||||||||
Equity: | |||||||||||
Preferred stock (50 million shares authorized):
|
|||||||||||
Mandatory convertible preferred stock, series A
(17.25 million shares outstanding)
|
1,693 | 1,693 | |||||||||
Mandatory convertible preferred stock, series B
(5.75 million shares outstanding)
|
565 | 565 | |||||||||
Preferred stock, series C
(0.9 million shares outstanding)
|
889 | — | |||||||||
Common stock (750 million shares authorized; 288 million and 292 million shares
outstanding at December 31, 2020 and 2019, respectively; no par value)
|
7,053 | 7,480 | |||||||||
Retained earnings | 13,673 | 11,130 | |||||||||
Accumulated other comprehensive income (loss) | (500) | (939) | |||||||||
Total Sempra Energy shareholders’ equity | 23,373 | 19,929 | |||||||||
Preferred stock of subsidiary | 20 | 20 | |||||||||
Other noncontrolling interests | 1,541 | 1,856 | |||||||||
Total equity | 24,934 | 21,805 | |||||||||
Total liabilities and equity | $ | 66,623 | $ | 65,665 |
SEMPRA ENERGY | |||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net income | $ | 4,105 | $ | 2,362 | $ | 1,126 | |||||||||||
Less: Income from discontinued operations, net of income tax | (1,850) | (363) | (188) | ||||||||||||||
Income from continuing operations, net of income tax | 2,255 | 1,999 | 938 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 1,666 | 1,569 | 1,491 | ||||||||||||||
Deferred income taxes and investment tax credits | 159 | 189 | (242) | ||||||||||||||
Impairment losses | 1 | 43 | 1,122 | ||||||||||||||
Loss (gain) on sale of assets | 3 | (63) | (513) | ||||||||||||||
Equity earnings | (1,015) | (580) | (175) | ||||||||||||||
Foreign currency transaction losses (gains), net | 25 | (21) | 6 | ||||||||||||||
Share-based compensation expense | 71 | 75 | 83 | ||||||||||||||
Other | 132 | 47 | 106 | ||||||||||||||
Net change in other working capital components: | |||||||||||||||||
Accounts receivable | (315) | (91) | (145) | ||||||||||||||
Income taxes receivable/payable, net | (94) | (166) | 88 | ||||||||||||||
Inventories | (35) | (22) | 32 | ||||||||||||||
Other current assets | 38 | (88) | (79) | ||||||||||||||
Accounts payable | 73 | 12 | 96 | ||||||||||||||
Regulatory balancing accounts | (231) | 13 | 263 | ||||||||||||||
Reserve for Aliso Canyon costs | 141 | (144) | 56 | ||||||||||||||
Other current liabilities | (127) | (99) | 52 | ||||||||||||||
Intercompany activities with discontinued operations, net | — | 378 | 70 | ||||||||||||||
Distributions from investments | 651 | 247 | 202 | ||||||||||||||
Insurance receivable for Aliso Canyon costs | (106) | 122 | (43) | ||||||||||||||
Wildfire fund, current and noncurrent | — | (323) | — | ||||||||||||||
Reserve for Aliso Canyon costs, noncurrent | 294 | — | — | ||||||||||||||
Changes in other noncurrent assets and liabilities, net | 56 | (399) | (188) | ||||||||||||||
Net cash provided by continuing operations | 3,642 | 2,698 | 3,220 | ||||||||||||||
Net cash (used in) provided by discontinued operations | (1,051) | 390 | 296 | ||||||||||||||
Net cash provided by operating activities | 2,591 | 3,088 | 3,516 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||
Expenditures for property, plant and equipment | (4,676) | (3,708) | (3,544) | ||||||||||||||
Expenditures for investments and acquisitions | (652) | (1,797) | (10,168) | ||||||||||||||
Proceeds from sale of assets | 19 | 899 | 1,580 | ||||||||||||||
Distributions from investments | 761 | 9 | 10 | ||||||||||||||
Purchases of nuclear decommissioning trust assets | (1,439) | (914) | (890) | ||||||||||||||
Proceeds from sales of nuclear decommissioning trust assets | 1,439 | 914 | 890 | ||||||||||||||
Advances to unconsolidated affiliates | (92) | (16) | (95) | ||||||||||||||
Repayments of advances to unconsolidated affiliates | 7 | 3 | 3 | ||||||||||||||
Intercompany activities with discontinued operations, net | — | 8 | (22) | ||||||||||||||
Other | 15 | 21 | 31 | ||||||||||||||
Net cash used in continuing operations | (4,618) | (4,581) | (12,205) | ||||||||||||||
Net cash provided by (used in) discontinued operations | 5,171 | (12) | (265) | ||||||||||||||
Net cash provided by (used in) investing activities | 553 | (4,593) | (12,470) |
SEMPRA ENERGY | |||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Common dividends paid | (1,174) | (993) | (877) | ||||||||||||||
Preferred dividends paid | (157) | (142) | (89) | ||||||||||||||
Issuances of preferred stock, net | 891 | — | 2,258 | ||||||||||||||
Issuances of common stock, net | 11 | 1,830 | 2,272 | ||||||||||||||
Repurchases of common stock | (566) | (26) | (21) | ||||||||||||||
Issuances of debt (maturities greater than 90 days) | 6,051 | 4,296 | 8,927 | ||||||||||||||
Payments on debt (maturities greater than 90 days) and finance leases | (5,864) | (3,667) | (3,342) | ||||||||||||||
(Decrease) increase in short-term debt, net | (1,759) | 656 | (84) | ||||||||||||||
Advances from unconsolidated affiliates | 64 | 155 | — | ||||||||||||||
Proceeds from sale of noncontrolling interests, net | 26 | 5 | 90 | ||||||||||||||
Purchases of noncontrolling interests | (248) | (30) | (7) | ||||||||||||||
Contributions from (distributions to) noncontrolling interests, net | 1 | 98 | (26) | ||||||||||||||
Intercompany activities with discontinued operations, net | — | (266) | (109) | ||||||||||||||
Other | (50) | (49) | (117) | ||||||||||||||
Net cash (used in) provided by continuing operations | (2,774) | 1,867 | 8,875 | ||||||||||||||
Net cash provided by (used in) discontinued operations | 401 | (392) | (25) | ||||||||||||||
Net cash (used in) provided by financing activities | (2,373) | 1,475 | 8,850 | ||||||||||||||
Effect of exchange rate changes in continuing operations | — | — | (2) | ||||||||||||||
Effect of exchange rate changes in discontinued operations | (3) | 1 | (12) | ||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3) | 1 | (14) | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash, including discontinued operations | 768 | (29) | (118) | ||||||||||||||
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 | 217 | 246 | 364 | ||||||||||||||
Cash, cash equivalents and restricted cash, including discontinued operations, December 31 | $ | 985 | $ | 217 | $ | 246 | |||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||||||||
Interest payments, net of amounts capitalized | $ | 1,046 | $ | 1,051 | $ | 773 | |||||||||||
Income tax payments, including discontinued operations, net of refunds | 1,385 | 360 | 174 | ||||||||||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||||||||||||||
Acquisitions: | |||||||||||||||||
Assets acquired | $ | — | $ | — | $ | 9,670 | |||||||||||
Liabilities assumed | — | — | (102) | ||||||||||||||
Cash paid | $ | — | $ | — | $ | 9,568 | |||||||||||
Accrued interest receivable from unconsolidated affiliate | $ | — | $ | 55 | $ | 62 | |||||||||||
Accrued capital expenditures | 535 | 515 | 425 | ||||||||||||||
Accrued commercial paper proceeds | — | 67 | — | ||||||||||||||
Increase in finance lease obligations for investment in property, plant and equipment | 77 | 38 | 556 | ||||||||||||||
Increase in ARO for investment in PP&E | 142 | 36 | 78 | ||||||||||||||
Equitization of long-term debt for deficit held by NCI | 22 | — | — | ||||||||||||||
Contribution to Cameron LNG JV | 50 | — | — | ||||||||||||||
Distribution from Cameron LNG JV | 50 | — | — | ||||||||||||||
Preferred dividends declared but not paid | 47 | 36 | 36 | ||||||||||||||
Common dividends issued in stock | 22 | 55 | 54 | ||||||||||||||
Common dividends declared but not paid | 301 | 283 | 245 |
SEMPRA ENERGY | |||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
Years ended December 31, 2020, 2019 and 2018 | |||||||||||||||||||||||||||||||||||||||||
Preferred stock |
Common
stock |
Retained
earnings |
Accumulated
other comprehensive income (loss) |
Sempra
Energy shareholders' equity |
Non-
controlling interests |
Total
equity |
|||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | — | $ | 3,149 | $ | 10,147 | $ | (626) | $ | 12,670 | $ | 2,470 | $ | 15,140 | |||||||||||||||||||||||||||
Adoption of ASU 2017-12 | 2 | (3) | (1) | (1) | |||||||||||||||||||||||||||||||||||||
Adjusted balance as of December 31, 2017 | — | 3,149 | 10,149 | (629) | 12,669 | 2,470 | 15,139 | ||||||||||||||||||||||||||||||||||
Net income | 1,050 | 1,050 | 76 | 1,126 | |||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | (135) | (135) | 2 | (133) | |||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 83 | 83 | 83 | ||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Series A preferred stock ($6.10/share)
|
(105) | (105) | (105) | ||||||||||||||||||||||||||||||||||||||
Series B preferred stock ($3.41/share)
|
(20) | (20) | (20) | ||||||||||||||||||||||||||||||||||||||
Common stock ($3.58/share)
|
(969) | (969) | (969) | ||||||||||||||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||
Issuance of series A preferred stock | 1,693 | 1,693 | 1,693 | ||||||||||||||||||||||||||||||||||||||
Issuance of series B preferred stock | 565 | 565 | 565 | ||||||||||||||||||||||||||||||||||||||
Issuances of common stock | 2,326 | 2,326 | 2,326 | ||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (21) | (21) | (21) | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||||||||||||||||
Contributions | 66 | 66 | |||||||||||||||||||||||||||||||||||||||
Distributions | (110) | (110) | |||||||||||||||||||||||||||||||||||||||
Purchases | (1) | (1) | (7) | (8) | |||||||||||||||||||||||||||||||||||||
Sales, net of offering costs | 4 | 4 | 86 | 90 | |||||||||||||||||||||||||||||||||||||
Acquisition | 13 | 13 | |||||||||||||||||||||||||||||||||||||||
Deconsolidations | (486) | (486) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 2,258 | 5,540 | 10,104 | (764) | 17,138 | 2,110 | 19,248 | ||||||||||||||||||||||||||||||||||
Adoption of ASU 2016-02 | 17 | 17 | 17 | ||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2018-02 | 40 | (42) | (2) | (2) | |||||||||||||||||||||||||||||||||||||
Adjusted balance as of December 31, 2018 | 2,258 | 5,540 | 10,161 | (806) | 17,153 | 2,110 | 19,263 | ||||||||||||||||||||||||||||||||||
Net income | 2,198 | 2,198 | 164 | 2,362 | |||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (133) | (133) | (7) | (140) | |||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 75 | 75 | 75 | ||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Series A preferred stock ($6.00/share)
|
(103) | (103) | (103) | ||||||||||||||||||||||||||||||||||||||
Series B preferred stock ($6.75/share)
|
(39) | (39) | (39) | ||||||||||||||||||||||||||||||||||||||
Common stock ($3.87/share)
|
(1,086) | (1,086) | (1,086) | ||||||||||||||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||
Issuances of common stock | 1,885 | 1,885 | 1,885 | ||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (26) | (26) | (26) | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||||||||||||||||
Contributions | 175 | 175 | |||||||||||||||||||||||||||||||||||||||
Distributions | 5 | 5 | (103) | (98) | |||||||||||||||||||||||||||||||||||||
Purchases | (3) | (3) | (27) | (30) | |||||||||||||||||||||||||||||||||||||
Sale | 4 | 4 | 1 | 5 | |||||||||||||||||||||||||||||||||||||
Acquisition | 3 | 3 | |||||||||||||||||||||||||||||||||||||||
Deconsolidations | (440) | (440) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 2,258 | 7,480 | 11,130 | (939) | 19,929 | 1,876 | 21,805 |
SEMPRA ENERGY | |||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED) | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
Years ended December 31, 2020, 2019 and 2018 | |||||||||||||||||||||||||||||||||||||||||
Preferred stock |
Common
stock |
Retained
earnings |
Accumulated
other comprehensive income (loss) |
Sempra
Energy shareholders' equity |
Non-
controlling interests |
Total
equity |
|||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 2,258 | 7,480 | 11,130 | (939) | 19,929 | 1,876 | 21,805 | ||||||||||||||||||||||||||||||||||
Adoption of ASU 2016-13 | (7) | (7) | (2) | (9) | |||||||||||||||||||||||||||||||||||||
Adjusted balance as of December 31, 2019 | 2,258 | 7,480 | 11,123 | (939) | 19,922 | 1,874 | 21,796 | ||||||||||||||||||||||||||||||||||
Net income | 3,933 | 3,933 | 172 | 4,105 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 446 | 446 | (24) | 422 | |||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 71 | 71 | 71 | ||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Series A preferred stock ($6.00/share)
|
(104) | (104) | (104) | ||||||||||||||||||||||||||||||||||||||
Series B preferred stock ($6.75/share)
|
(39) | (39) | (39) | ||||||||||||||||||||||||||||||||||||||
Series C preferred stock ($27.90/share)
|
(25) | (25) | (25) | ||||||||||||||||||||||||||||||||||||||
Common stock ($4.18/share)
|
(1,214) | (1,214) | (1,214) | ||||||||||||||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||
Issuances of series C preferred stock | 889 | 889 | 889 | ||||||||||||||||||||||||||||||||||||||
Issuances of common stock | 33 | 33 | 33 | ||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (566) | (566) | (566) | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||||||||||||||||
Contributions | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Distributions | (1) | (1) | |||||||||||||||||||||||||||||||||||||||
Purchases | 34 | (7) | 27 | (275) | (248) | ||||||||||||||||||||||||||||||||||||
Sale | 1 | 1 | 27 | 28 | |||||||||||||||||||||||||||||||||||||
Acquisition | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Equitization of long-term debt for
deficit held by NCI
|
22 | 22 | |||||||||||||||||||||||||||||||||||||||
Deconsolidation | (236) | (236) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 3,147 | $ | 7,053 | $ | 13,673 | $ | (500) | $ | 23,373 | $ | 1,561 | $ | 24,934 |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Operating revenues | |||||||||||||||||
Electric | $ | 4,619 | $ | 4,267 | $ | 4,003 | |||||||||||
Natural gas | 694 | 658 | 565 | ||||||||||||||
Total operating revenues | 5,313 | 4,925 | 4,568 | ||||||||||||||
Operating expenses | |||||||||||||||||
Cost of electric fuel and purchased power | 1,191 | 1,194 | 1,370 | ||||||||||||||
Cost of natural gas | 162 | 176 | 152 | ||||||||||||||
Operation and maintenance | 1,455 | 1,181 | 1,058 | ||||||||||||||
Depreciation and amortization | 801 | 760 | 688 | ||||||||||||||
Franchise fees and other taxes | 331 | 301 | 290 | ||||||||||||||
Total operating expenses | 3,940 | 3,612 | 3,558 | ||||||||||||||
Operating income | 1,373 | 1,313 | 1,010 | ||||||||||||||
Other income, net | 52 | 39 | 56 | ||||||||||||||
Interest income | 2 | 4 | 4 | ||||||||||||||
Interest expense | (413) | (411) | (221) | ||||||||||||||
Income before income taxes | 1,014 | 945 | 849 | ||||||||||||||
Income tax expense | (190) | (171) | (173) | ||||||||||||||
Net income | 824 | 774 | 676 | ||||||||||||||
Earnings attributable to noncontrolling interest | — | (7) | (7) | ||||||||||||||
Earnings attributable to common shares | $ | 824 | $ | 767 | $ | 669 |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Years ended December 31, 2020, 2019 and 2018 | |||||||||||||||||||||||||||||
SDG&E shareholder's equity | |||||||||||||||||||||||||||||
Pretax
amount |
Income tax
(expense) benefit |
Net-of-tax
amount |
Noncontrolling
interest (after tax) |
Total | |||||||||||||||||||||||||
2020: | |||||||||||||||||||||||||||||
Net income | $ | 1,014 | $ | (190) | $ | 824 | $ | — | $ | 824 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Pension and other postretirement benefits | 8 | (2) | 6 | — | 6 | ||||||||||||||||||||||||
Total other comprehensive income | 8 | (2) | 6 | — | 6 | ||||||||||||||||||||||||
Comprehensive income | $ | 1,022 | $ | (192) | $ | 830 | $ | — | $ | 830 | |||||||||||||||||||
2019: | |||||||||||||||||||||||||||||
Net income | $ | 938 | $ | (171) | $ | 767 | $ | 7 | $ | 774 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Financial instruments | — | — | — | 2 | 2 | ||||||||||||||||||||||||
Pension and other postretirement benefits | (6) | 2 | (4) | — | (4) | ||||||||||||||||||||||||
Total other comprehensive (loss) income | (6) | 2 | (4) | 2 | (2) | ||||||||||||||||||||||||
Comprehensive income | $ | 932 | $ | (169) | $ | 763 | $ | 9 | $ | 772 | |||||||||||||||||||
2018: | |||||||||||||||||||||||||||||
Net income | $ | 842 | $ | (173) | $ | 669 | $ | 7 | $ | 676 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Financial instruments | — | — | — | 8 | 8 | ||||||||||||||||||||||||
Pension and other postretirement benefits | (2) | — | (2) | — | (2) | ||||||||||||||||||||||||
Total other comprehensive (loss) income | (2) | — | (2) | 8 | 6 | ||||||||||||||||||||||||
Comprehensive income | $ | 840 | $ | (173) | $ | 667 | $ | 15 | $ | 682 |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 262 | $ | 10 | |||||||
Accounts receivable – trade, net | 573 | 398 | |||||||||
Accounts receivable – other, net | 143 | 119 | |||||||||
Income taxes receivable, net | — | 128 | |||||||||
Inventories | 104 | 94 | |||||||||
Prepaid expenses | 153 | 120 | |||||||||
Regulatory assets | 174 | 209 | |||||||||
Fixed-price contracts and other derivatives | 56 | 43 | |||||||||
Greenhouse gas allowances | 113 | 13 | |||||||||
Other current assets | 22 | 24 | |||||||||
Total current assets | 1,600 | 1,158 | |||||||||
Other assets: | |||||||||||
Regulatory assets | 534 | 440 | |||||||||
Nuclear decommissioning trusts | 1,019 | 1,082 | |||||||||
Greenhouse gas allowances | 83 | 189 | |||||||||
Right-of-use assets – operating leases | 102 | 130 | |||||||||
Wildfire fund | 363 | 392 | |||||||||
Other long-term assets | 189 | 202 | |||||||||
Total other assets | 2,290 | 2,435 | |||||||||
Property, plant and equipment: | |||||||||||
Property, plant and equipment | 24,436 | 22,504 | |||||||||
Less accumulated depreciation and amortization | (6,015) | (5,537) | |||||||||
Property, plant and equipment, net | 18,421 | 16,967 | |||||||||
Total assets | $ | 22,311 | $ | 20,560 |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||
CONSOLIDATED BALANCE SHEETS (CONTINUED) | |||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term debt | $ | — | $ | 80 | |||||||
Accounts payable | 553 | 496 | |||||||||
Due to unconsolidated affiliates | 64 | 53 | |||||||||
Interest payable | 46 | 43 | |||||||||
Accrued compensation and benefits | 135 | 138 | |||||||||
Accrued franchise fees | 56 | 53 | |||||||||
Regulatory liabilities | 61 | 76 | |||||||||
Current portion of long-term debt and finance leases | 611 | 56 | |||||||||
Customer deposits | 56 | 74 | |||||||||
Greenhouse gas obligations | 113 | 13 | |||||||||
Asset retirement obligations | 117 | 95 | |||||||||
Other current liabilities | 199 | 133 | |||||||||
Total current liabilities | 2,011 | 1,310 | |||||||||
Long-term debt and finance leases | 6,866 | 6,306 | |||||||||
Deferred credits and other liabilities: | |||||||||||
Pension obligation, net of plan assets | 92 | 153 | |||||||||
Deferred income taxes | 2,019 | 1,848 | |||||||||
Deferred investment tax credits | 13 | 14 | |||||||||
Regulatory liabilities | 2,195 | 2,319 | |||||||||
Asset retirement obligations | 759 | 771 | |||||||||
Greenhouse gas obligations | — | 62 | |||||||||
Deferred credits and other | 626 | 677 | |||||||||
Total deferred credits and other liabilities | 5,704 | 5,844 | |||||||||
Commitments and contingencies (Note 16) | |||||||||||
Shareholder’s Equity: | |||||||||||
Preferred stock (45 million shares authorized; none issued)
|
— | — | |||||||||
Common stock (255 million shares authorized; 117 million shares outstanding;
no par value)
|
1,660 | 1,660 | |||||||||
Retained earnings | 6,080 | 5,456 | |||||||||
Accumulated other comprehensive income (loss) | (10) | (16) | |||||||||
Total shareholder’s equity | 7,730 | 7,100 | |||||||||
Total liabilities and shareholder’s equity | $ | 22,311 | $ | 20,560 |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net income | $ | 824 | $ | 774 | $ | 676 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 801 | 760 | 688 | ||||||||||||||
Deferred income taxes and investment tax credits | 35 | 105 | 39 | ||||||||||||||
Other | 27 | 13 | (17) | ||||||||||||||
Net change in other working capital components: | |||||||||||||||||
Accounts receivable | (134) | (15) | 30 | ||||||||||||||
Due to/from affiliates, net | 11 | (8) | (2) | ||||||||||||||
Income taxes receivable/payable, net | 129 | (126) | 23 | ||||||||||||||
Inventories | (10) | 4 | 3 | ||||||||||||||
Other current assets | 4 | (19) | (6) | ||||||||||||||
Accounts payable | 31 | 32 | (1) | ||||||||||||||
Regulatory balancing accounts | (71) | (101) | 138 | ||||||||||||||
Other current liabilities | (100) | 4 | 4 | ||||||||||||||
Wildfire fund, current and noncurrent | — | (323) | — | ||||||||||||||
Changes in other noncurrent assets and liabilities, net | (158) | (10) | 9 | ||||||||||||||
Net cash provided by operating activities | 1,389 | 1,090 | 1,584 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||
Expenditures for property, plant and equipment | (1,942) | (1,522) | (1,542) | ||||||||||||||
Decrease in cash from deconsolidation of Otay Mesa VIE | — | (8) | — | ||||||||||||||
Purchases of nuclear decommissioning trust assets | (1,439) | (914) | (890) | ||||||||||||||
Proceeds from sales of nuclear decommissioning trust assets | 1,439 | 914 | 890 | ||||||||||||||
Other | 8 | 8 | — | ||||||||||||||
Net cash used in investing activities | (1,934) | (1,522) | (1,542) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Common dividends paid | (200) | — | (250) | ||||||||||||||
Equity contribution from Sempra Energy | — | 322 | — | ||||||||||||||
Issuances of debt (maturities greater than 90 days) | 1,598 | 400 | 618 | ||||||||||||||
Payments on debt (maturities greater than 90 days) and finance leases | (510) | (274) | (492) | ||||||||||||||
(Decrease) increase in short-term debt, net | (80) | (211) | 38 | ||||||||||||||
Contributions from noncontrolling interest, net | — | 172 | 57 | ||||||||||||||
Debt issuance costs | (11) | (4) | (5) | ||||||||||||||
Net cash provided by (used in) financing activities | 797 | 405 | (34) | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 252 | (27) | 8 | ||||||||||||||
Cash, cash equivalents and restricted cash, January 1 | 10 | 37 | 29 | ||||||||||||||
Cash, cash equivalents and restricted cash, December 31 | $ | 262 | $ | 10 | $ | 37 | |||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||||||||
Interest payments, net of amounts capitalized | $ | 404 | $ | 405 | $ | 214 | |||||||||||
Income tax payments, net of refunds | 25 | 191 | 112 | ||||||||||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||||||||||||||
Accrued capital expenditures | $ | 199 | $ | 174 | $ | 159 | |||||||||||
Increase in finance lease obligations for investment in property, plant and equipment | 30 | 16 | 550 | ||||||||||||||
Increase (decrease) in ARO for investment in PP&E | 31 | (1) | 35 |
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Years ended December 31, 2020, 2019 and 2018 | |||||||||||||||||||||||||||||||||||
Common
stock |
Retained
earnings |
Accumulated
other comprehensive income (loss) |
SDG&E
shareholder's equity |
Noncontrolling
interest |
Total
equity |
||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 1,338 | $ | 4,268 | $ | (8) | $ | 5,598 | $ | 28 | $ | 5,626 | |||||||||||||||||||||||
Net income | 669 | 669 | 7 | 676 | |||||||||||||||||||||||||||||||
Other comprehensive (loss) income | (2) | (2) | 8 | 6 | |||||||||||||||||||||||||||||||
Common stock dividends declared ($2.14/share)
|
(250) | (250) | (250) | ||||||||||||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||||||||||
Contributions | 65 | 65 | |||||||||||||||||||||||||||||||||
Distributions | (8) | (8) | |||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 1,338 | 4,687 | (10) | 6,015 | 100 | 6,115 | |||||||||||||||||||||||||||||
Adoption of ASU 2018-02 | 2 | (2) | — | — | |||||||||||||||||||||||||||||||
Adjusted balance at December 31, 2018 | 1,338 | 4,689 | (12) | 6,015 | 100 | 6,115 | |||||||||||||||||||||||||||||
Net income | 767 | 767 | 7 | 774 | |||||||||||||||||||||||||||||||
Other comprehensive (loss) income | (4) | (4) | 2 | (2) | |||||||||||||||||||||||||||||||
Equity contribution from Sempra Energy | 322 | 322 | 322 | ||||||||||||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||||||||||
Contributions | 175 | 175 | |||||||||||||||||||||||||||||||||
Distributions | (3) | (3) | |||||||||||||||||||||||||||||||||
Deconsolidation | (281) | (281) | |||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 1,660 | 5,456 | (16) | 7,100 | — | 7,100 | |||||||||||||||||||||||||||||
Net income | 824 | 824 | — | 824 | |||||||||||||||||||||||||||||||
Other comprehensive income | 6 | 6 | — | 6 | |||||||||||||||||||||||||||||||
Common stock dividends declared ($1.72/share)
|
(200) | (200) | (200) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 1,660 | $ | 6,080 | $ | (10) | $ | 7,730 | $ | — | $ | 7,730 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||||||||
STATEMENTS OF OPERATIONS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Operating revenues | $ | 4,748 | $ | 4,525 | $ | 3,962 | |||||||||||
Operating expenses | |||||||||||||||||
Cost of natural gas | 783 | 977 | 1,048 | ||||||||||||||
Operation and maintenance | 2,029 | 1,780 | 1,613 | ||||||||||||||
Aliso Canyon litigation and regulatory matters | 307 | — | — | ||||||||||||||
Depreciation and amortization | 654 | 602 | 556 | ||||||||||||||
Franchise fees and other taxes | 190 | 173 | 154 | ||||||||||||||
Impairment losses | — | 37 | — | ||||||||||||||
Total operating expenses | 3,963 | 3,569 | 3,371 | ||||||||||||||
Operating income | 785 | 956 | 591 | ||||||||||||||
Other (expense) income, net | (28) | (55) | 15 | ||||||||||||||
Interest income | 2 | 2 | 2 | ||||||||||||||
Interest expense | (158) | (141) | (115) | ||||||||||||||
Income before income taxes | 601 | 762 | 493 | ||||||||||||||
Income tax expense | (96) | (120) | (92) | ||||||||||||||
Net income | 505 | 642 | 401 | ||||||||||||||
Preferred dividends | (1) | (1) | (1) | ||||||||||||||
Earnings attributable to common shares | $ | 504 | $ | 641 | $ | 400 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, 2020, 2019 and 2018 | |||||||||||||||||
Pretax
amount |
Income tax (expense) benefit |
Net-of-tax
amount |
|||||||||||||||
2020: | |||||||||||||||||
Net income | $ | 601 | $ | (96) | $ | 505 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Pension and other postretirement benefits | (12) | 4 | (8) | ||||||||||||||
Total other comprehensive loss | (12) | 4 | (8) | ||||||||||||||
Comprehensive income | $ | 589 | $ | (92) | $ | 497 | |||||||||||
2019: | |||||||||||||||||
Net income | $ | 762 | $ | (120) | $ | 642 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Financial instruments | 1 | — | 1 | ||||||||||||||
Pension and other postretirement benefits | 1 | (1) | — | ||||||||||||||
Total other comprehensive income | 2 | (1) | 1 | ||||||||||||||
Comprehensive income | $ | 764 | $ | (121) | $ | 643 | |||||||||||
2018: | |||||||||||||||||
Net income | $ | 493 | $ | (92) | $ | 401 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Financial instruments | 1 | — | 1 | ||||||||||||||
Total other comprehensive income | 1 | — | 1 | ||||||||||||||
Comprehensive income | $ | 494 | $ | (92) | $ | 402 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||
BALANCE SHEETS | |||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 4 | $ | 10 | |||||||
Accounts receivable – trade, net | 786 | 710 | |||||||||
Accounts receivable – other, net | 64 | 87 | |||||||||
Due from unconsolidated affiliates | 22 | 11 | |||||||||
Income taxes receivable, net | — | 161 | |||||||||
Inventories | 153 | 136 | |||||||||
Regulatory assets | 16 | 7 | |||||||||
Greenhouse gas allowances | 390 | 52 | |||||||||
Other current assets | 47 | 44 | |||||||||
Total current assets | 1,482 | 1,218 | |||||||||
Other assets: | |||||||||||
Regulatory assets | 1,208 | 1,407 | |||||||||
Insurance receivable for Aliso Canyon costs | 445 | 339 | |||||||||
Greenhouse gas allowances | 9 | 248 | |||||||||
Right-of-use assets – operating leases | 74 | 94 | |||||||||
Other long-term assets | 499 | 447 | |||||||||
Total other assets | 2,235 | 2,535 | |||||||||
Property, plant and equipment: | |||||||||||
Property, plant and equipment | 21,180 | 19,362 | |||||||||
Less accumulated depreciation and amortization | (6,437) | (6,038) | |||||||||
Property, plant and equipment, net | 14,743 | 13,324 | |||||||||
Total assets | $ | 18,460 | $ | 17,077 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||
BALANCE SHEETS (CONTINUED) | |||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term debt | $ | 113 | $ | 630 | |||||||
Accounts payable – trade | 600 | 545 | |||||||||
Accounts payable – other | 122 | 110 | |||||||||
Due to unconsolidated affiliates | 31 | 47 | |||||||||
Accrued compensation and benefits | 189 | 182 | |||||||||
Regulatory liabilities | 79 | 243 | |||||||||
Current portion of long-term debt and finance leases | 10 | 6 | |||||||||
Customer deposits | 48 | 71 | |||||||||
Reserve for Aliso Canyon costs | 150 | 9 | |||||||||
Greenhouse gas obligations | 390 | 52 | |||||||||
Asset retirement obligations | 59 | 65 | |||||||||
Other current liabilities | 291 | 222 | |||||||||
Total current liabilities | 2,082 | 2,182 | |||||||||
Long-term debt and finance leases | 4,763 | 3,788 | |||||||||
Deferred credits and other liabilities: | |||||||||||
Pension obligation, net of plan assets | 853 | 785 | |||||||||
Deferred income taxes | 1,406 | 1,403 | |||||||||
Deferred investment tax credits | 8 | 7 | |||||||||
Regulatory liabilities | 1,177 | 1,422 | |||||||||
Reserve for Aliso Canyon costs | 301 | 7 | |||||||||
Asset retirement obligations | 2,309 | 2,112 | |||||||||
Greenhouse gas obligations | — | 208 | |||||||||
Deferred credits and other | 417 | 415 | |||||||||
Total deferred credits and other liabilities | 6,471 | 6,359 | |||||||||
Commitments and contingencies (Note 16) | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock (11 million shares authorized; 1 million shares outstanding)
|
22 | 22 | |||||||||
Common stock (100 million shares authorized; 91 million shares outstanding; no par value)
|
866 | 866 | |||||||||
Retained earnings | 4,287 | 3,883 | |||||||||
Accumulated other comprehensive income (loss) | (31) | (23) | |||||||||
Total shareholders’ equity | 5,144 | 4,748 | |||||||||
Total liabilities and shareholders’ equity | $ | 18,460 | $ | 17,077 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net income | $ | 505 | $ | 642 | $ | 401 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 654 | 602 | 556 | ||||||||||||||
Deferred income taxes and investment tax credits | (112) | 88 | 78 | ||||||||||||||
Impairment losses | — | 37 | — | ||||||||||||||
Other | 59 | (5) | (7) | ||||||||||||||
Net change in working capital components: | |||||||||||||||||
Accounts receivable | (101) | (73) | (87) | ||||||||||||||
Due to/from affiliates, net | (27) | (1) | (10) | ||||||||||||||
Income taxes receivable/payable, net | 189 | (156) | 14 | ||||||||||||||
Inventories | (19) | 1 | (2) | ||||||||||||||
Other current assets | (12) | (9) | 11 | ||||||||||||||
Accounts payable | 64 | (7) | 71 | ||||||||||||||
Regulatory balancing accounts | (160) | 114 | 125 | ||||||||||||||
Reserve for Aliso Canyon costs | 141 | (144) | 56 | ||||||||||||||
Other current liabilities | (21) | (21) | (6) | ||||||||||||||
Insurance receivable for Aliso Canyon costs | (106) | 122 | (43) | ||||||||||||||
Reserve for Aliso Canyon costs, noncurrent | 294 | — | — | ||||||||||||||
Changes in other noncurrent assets and liabilities, net | 178 | (322) | (144) | ||||||||||||||
Net cash provided by operating activities | 1,526 | 868 | 1,013 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||
Expenditures for property, plant and equipment | (1,843) | (1,439) | (1,538) | ||||||||||||||
Other | — | 1 | 7 | ||||||||||||||
Net cash used in investing activities | (1,843) | (1,438) | (1,531) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Common dividends paid | (100) | (150) | (50) | ||||||||||||||
Preferred dividends paid | (1) | (1) | (1) | ||||||||||||||
Issuances of debt (maturities greater than 90 days) | 949 | 349 | 949 | ||||||||||||||
Payments on debt (maturities greater than 90 days) and finance leases | (12) | (6) | (500) | ||||||||||||||
(Decrease) increase in short-term debt, net | (517) | 374 | 140 | ||||||||||||||
Debt issuance costs | (8) | (4) | (10) | ||||||||||||||
Net cash provided by financing activities | 311 | 562 | 528 | ||||||||||||||
(Decrease) increase in cash and cash equivalents | (6) | (8) | 10 | ||||||||||||||
Cash and cash equivalents, January 1 | 10 | 18 | 8 | ||||||||||||||
Cash and cash equivalents, December 31 | $ | 4 | $ | 10 | $ | 18 | |||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||||||||
Interest payments, net of amounts capitalized | $ | 146 | $ | 126 | $ | 105 | |||||||||||
Income tax payments, net of refunds | 19 | 188 | — | ||||||||||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||||||||||||||
Accrued capital expenditures | $ | 208 | $ | 205 | $ | 191 | |||||||||||
Increase in finance lease obligations for investment in property, plant and equipment | 47 | 22 | 6 | ||||||||||||||
Increase in ARO for investment in PP&E | 107 | 35 | 35 |
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||||||||||||||||||||
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Years ended December 31, 2020, 2019 and 2018 | |||||||||||||||||||||||||||||
Preferred
stock |
Common
stock |
Retained
earnings |
Accumulated
other comprehensive income (loss) |
Total
shareholders’ equity |
|||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 22 | $ | 866 | $ | 3,040 | $ | (21) | $ | 3,907 | |||||||||||||||||||
Net income | 401 | 401 | |||||||||||||||||||||||||||
Other comprehensive income | 1 | 1 | |||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||
Preferred stock ($1.50/share)
|
(1) | (1) | |||||||||||||||||||||||||||
Common stock ($0.55/share)
|
(50) | (50) | |||||||||||||||||||||||||||
Balance at December 31, 2018 | 22 | 866 | 3,390 | (20) | 4,258 | ||||||||||||||||||||||||
Adoption of ASU 2018-02 | 2 | (4) | (2) | ||||||||||||||||||||||||||
Adjusted balance as of December 31, 2018 | 22 | 866 | 3,392 | (24) | 4,256 | ||||||||||||||||||||||||
Net income | 642 | 642 | |||||||||||||||||||||||||||
Other comprehensive income | 1 | 1 | |||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||
Preferred stock ($1.50/share)
|
(1) | (1) | |||||||||||||||||||||||||||
Common stock ($1.64/share)
|
(150) | (150) | |||||||||||||||||||||||||||
Balance at December 31, 2019 | 22 | 866 | 3,883 | (23) | 4,748 | ||||||||||||||||||||||||
Net income | 505 | 505 | |||||||||||||||||||||||||||
Other comprehensive loss | (8) | (8) | |||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||
Preferred stock ($1.50/share)
|
(1) | (1) | |||||||||||||||||||||||||||
Common stock ($1.10/share)
|
(100) | (100) | |||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 22 | $ | 866 | $ | 4,287 | $ | (31) | $ | 5,144 |
TRADE AND OTHER ACCOUNTS RECEIVABLE – ALLOWANCES FOR CREDIT LOSSES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||
Allowances for credit losses at January 1 | $ | 29 | $ | 21 | $ | 25 | |||||||||||
Incremental allowance upon adoption of ASU 2016-13 | 1 | — | — | ||||||||||||||
Provisions for expected credit losses | 124 | 22 | 10 | ||||||||||||||
Write-offs | (16) | (14) | (14) | ||||||||||||||
Allowances for credit losses at December 31(1)
|
$ | 138 | $ | 29 | $ | 21 | |||||||||||
SDG&E: | |||||||||||||||||
Allowances for credit losses at January 1 | $ | 14 | $ | 11 | $ | 9 | |||||||||||
Provisions for expected credit losses | 65 | 10 | 9 | ||||||||||||||
Write-offs | (10) | (7) | (7) | ||||||||||||||
Allowances for credit losses at December 31(2)
|
$ | 69 | $ | 14 | $ | 11 | |||||||||||
SoCalGas: | |||||||||||||||||
Allowances for credit losses at January 1 | $ | 15 | $ | 10 | $ | 16 | |||||||||||
Provisions for expected credit losses | 59 | 12 | 1 | ||||||||||||||
Write-offs | (6) | (7) | (7) | ||||||||||||||
Allowances for credit losses at December 31(3)
|
$ | 68 | $ | 15 | $ | 10 |
AMOUNTS DUE FROM UNCONSOLIDATED AFFILIATES – ALLOWANCES FOR CREDIT LOSSES | |||||
(Dollars in millions) | |||||
Sempra
Energy
Consolidated(1)
|
|||||
Allowances for credit losses at January 1, 2020 | $ | — | |||
Allowance established upon adoption of ASU 2016-13 | 6 | ||||
Reduction to expected credit losses | (3) | ||||
Allowances for credit losses at December 31, 2020 | $ | 3 |
INVENTORY BALANCES AT DECEMBER 31 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Natural gas | LNG | Materials and supplies | Total | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
Sempra Energy Consolidated | $ | 118 | $ | 110 | $ | 7 | $ | 9 | $ | 183 | $ | 158 | $ | 308 | $ | 277 | |||||||||||||||||||||||||||||||
SDG&E | — | 1 | — | — | 104 | 93 | 104 | 94 | |||||||||||||||||||||||||||||||||||||||
SoCalGas | 94 | 90 | — | — | 59 | 46 | 153 | 136 | |||||||||||||||||||||||||||||||||||||||
WILDFIRE FUND | ||||||||||||||
(Dollars in millions) | ||||||||||||||
December 31, | ||||||||||||||
Location | 2020 | 2019 | ||||||||||||
Wildfire Fund asset: | ||||||||||||||
Current |
Other Current Assets(1)
|
$ | 29 | $ | 29 | |||||||||
Noncurrent | Wildfire Fund | 363 | 392 | |||||||||||
Wildfire Fund obligation: | ||||||||||||||
Current | Other Current Liabilities | $ | 13 | $ | 13 | |||||||||
Noncurrent | Deferred Credits and Other | 75 | 86 | |||||||||||
Years ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Amortization of Wildfire Fund asset | Operation and Maintenance | $ | 29 | $ | 12 | |||||||||
Accretion of Wildfire Fund obligation | Operation and Maintenance | 2 | 1 |
PROPERTY, PLANT AND EQUIPMENT BY MAJOR FUNCTIONAL CATEGORY | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
December 31, |
Depreciation rates for years ended
December 31, |
||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||
SDG&E: | |||||||||||||||||||||||||||||
Natural gas operations | $ | 2,805 | $ | 2,534 | 2.51 | % | 2.47 | % | 2.44 | % | |||||||||||||||||||
Electric distribution | 8,592 | 7,985 | 3.90 | 3.94 | 3.91 | ||||||||||||||||||||||||
Electric transmission(1)
|
7,156 | 6,577 | 3.10 | 2.79 | 2.76 | ||||||||||||||||||||||||
Electric generation | 2,440 | 2,415 | 4.56 | 4.50 | 4.12 | ||||||||||||||||||||||||
Other electric | 1,743 | 1,492 | 6.92 | 6.61 | 6.43 | ||||||||||||||||||||||||
Construction work in progress(1)
|
1,700 | 1,501 |
NA
|
NA
|
NA
|
||||||||||||||||||||||||
Total SDG&E | 24,436 | 22,504 | |||||||||||||||||||||||||||
SoCalGas: | |||||||||||||||||||||||||||||
Natural gas operations | 19,961 | 18,370 | 3.63 | 3.60 | 3.60 | ||||||||||||||||||||||||
Other non-utility | 45 | 34 | 3.80 | 5.08 | 5.39 | ||||||||||||||||||||||||
Construction work in progress | 1,174 | 958 |
NA
|
NA
|
NA
|
||||||||||||||||||||||||
Total SoCalGas | 21,180 | 19,362 | |||||||||||||||||||||||||||
Other operating units and parent(2):
|
Estimated useful lives | Weighted-average useful life | |||||||||||||||||||||||||||
Land and land rights | 283 | 278 |
16 to 50 years(3)
|
31 | |||||||||||||||||||||||||
Machinery and equipment: | |||||||||||||||||||||||||||||
Generating plants | 1,288 | 1,154 |
11 to 25 years
|
22 | |||||||||||||||||||||||||
LNG terminals | 1,138 | 1,134 |
43 years
|
43 | |||||||||||||||||||||||||
Pipelines and storage | 3,482 | 3,596 |
5 to 50 years
|
44 | |||||||||||||||||||||||||
Other | 359 | 180 |
1 to 50 years
|
14 | |||||||||||||||||||||||||
Construction work in progress | 1,514 | 895 | NA | NA | |||||||||||||||||||||||||
Other | 248 | 226 |
4 to 50 years
|
23 | |||||||||||||||||||||||||
8,312 | 7,463 | ||||||||||||||||||||||||||||
Total Sempra Energy Consolidated | $ | 53,928 | $ | 49,329 |
DEPRECIATION EXPENSE | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated | $ | 1,646 | $ | 1,551 | $ | 1,470 | |||||||||||
SDG&E | 797 | 757 | 686 | ||||||||||||||
SoCalGas | 649 | 598 | 553 |
ACCUMULATED DEPRECIATION AND AMORTIZATION | |||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
SDG&E: | |||||||||||
Accumulated depreciation: | |||||||||||
Natural gas operations | $ | 870 | $ | 832 | |||||||
Electric transmission, distribution and generation(1)
|
5,145 | 4,705 | |||||||||
Total SDG&E | 6,015 | 5,537 | |||||||||
SoCalGas: | |||||||||||
Accumulated depreciation: | |||||||||||
Natural gas operations | 6,422 | 6,023 | |||||||||
Other non-utility | 15 | 15 | |||||||||
Total SoCalGas | 6,437 | 6,038 | |||||||||
Other operating units and parent and other: | |||||||||||
Accumulated depreciation – other(2)
|
1,473 | 1,302 | |||||||||
Total Sempra Energy Consolidated | $ | 13,925 | $ | 12,877 |
CAPITALIZED FINANCING COSTS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated | $ | 202 | $ | 183 | $ | 193 | |||||||||||
SDG&E | 104 | 75 | 82 | ||||||||||||||
SoCalGas | 55 | 47 | 48 |
OTHER INTANGIBLE ASSETS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Amortization period
(years) |
December 31, | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
Renewable energy transmission and consumption permit | 19 | $ | 154 | $ | 154 | ||||||||||||
O&M agreement | 23 | 66 | 66 | ||||||||||||||
Other |
10 years to indefinite
|
30 | 30 | ||||||||||||||
250 | 250 | ||||||||||||||||
Less accumulated amortization: | |||||||||||||||||
Renewable energy transmission and consumption permit | (32) | (24) | |||||||||||||||
O&M agreement | (9) | (6) | |||||||||||||||
Other | (7) | (7) | |||||||||||||||
(48) | (37) | ||||||||||||||||
$ | 202 | $ | 213 |
CHANGES IN ASSET RETIREMENT OBLIGATIONS | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Sempra Energy
Consolidated |
SDG&E | SoCalGas | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Balance as of January 1(1)
|
$ | 3,083 | $ | 2,972 | $ | 866 | $ | 874 | $ | 2,177 | $ | 2,063 | |||||||||||||||||||||||
Accretion expense | 127 | 123 | 39 | 39 | 86 | 81 | |||||||||||||||||||||||||||||
Liabilities incurred | 2 | 2 | — | — | — | — | |||||||||||||||||||||||||||||
Deconsolidation | — | (2) | — | (2) | — | — | |||||||||||||||||||||||||||||
Payments | (63) | (46) | (60) | (44) | (2) | (2) | |||||||||||||||||||||||||||||
Revisions | 140 | 34 | 31 | (1) | 107 | 35 | |||||||||||||||||||||||||||||
Balance at December 31(1)
|
$ | 3,289 | $ | 3,083 | $ | 876 | $ | 866 | $ | 2,368 | $ | 2,177 |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
|
|||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Foreign
currency translation adjustments |
Financial
instruments |
Pension
and other postretirement benefits |
Total
accumulated other comprehensive income (loss) |
||||||||||||||||||||
Sempra Energy Consolidated(2):
|
|||||||||||||||||||||||
Balance as of December 31, 2017 | $ | (420) | $ | (122) | $ | (84) | $ | (626) | |||||||||||||||
Adoption of ASU 2017-12 | — | (3) | — | (3) | |||||||||||||||||||
OCI before reclassifications | (144) | 40 | (52) | (156) | |||||||||||||||||||
Amounts reclassified from AOCI | — | 3 | 18 | 21 | |||||||||||||||||||
Net OCI | (144) | 43 | (34) | (135) | |||||||||||||||||||
Balance as of December 31, 2018 | (564) | (82) | (118) | (764) | |||||||||||||||||||
Adoption of ASU 2018-02 | — | (25) | (17) | (42) | |||||||||||||||||||
OCI before reclassifications(3)
|
(43) | (116) | (18) | (177) | |||||||||||||||||||
Amounts reclassified from AOCI(3)
|
— | 8 | 36 | 44 | |||||||||||||||||||
Net OCI | (43) | (108) | 18 | (133) | |||||||||||||||||||
Balance as of December 31, 2019 | (607) | (215) | (117) | (939) | |||||||||||||||||||
OCI before reclassifications(3)
|
(102) | (163) | (26) | (291) | |||||||||||||||||||
Amounts reclassified from AOCI(3)
|
645 | 47 | 38 | 730 | |||||||||||||||||||
Net OCI(4)
|
543 | (116) | 12 | 439 | |||||||||||||||||||
Balance as of December 31, 2020 | $ | (64) | $ | (331) | $ | (105) | $ | (500) | |||||||||||||||
SDG&E: | |||||||||||||||||||||||
Balance as of December 31, 2017 | $ | (8) | $ | (8) | |||||||||||||||||||
OCI before reclassifications | (6) | (6) | |||||||||||||||||||||
Amounts reclassified from AOCI | 4 | 4 | |||||||||||||||||||||
Net OCI | (2) | (2) | |||||||||||||||||||||
Balance as of December 31, 2018 | (10) | (10) | |||||||||||||||||||||
Adoption of ASU 2018-02 | (2) | (2) | |||||||||||||||||||||
OCI before reclassifications | (5) | (5) | |||||||||||||||||||||
Amounts reclassified from AOCI | 1 | 1 | |||||||||||||||||||||
Net OCI | (4) | (4) | |||||||||||||||||||||
Balance as of December 31, 2019 | (16) | (16) | |||||||||||||||||||||
OCI before reclassifications(3)
|
(4) | (4) | |||||||||||||||||||||
Amounts reclassified from AOCI(3)
|
10 | 10 | |||||||||||||||||||||
Net OCI | 6 | 6 | |||||||||||||||||||||
Balance as of December 31, 2020 | $ | (10) | $ | (10) | |||||||||||||||||||
SoCalGas: | |||||||||||||||||||||||
Balance as of December 31, 2017 | $ | (13) | $ | (8) | $ | (21) | |||||||||||||||||
OCI before reclassifications | — | (1) | (1) | ||||||||||||||||||||
Amounts reclassified from AOCI | 1 | 1 | 2 | ||||||||||||||||||||
Net OCI | 1 | — | 1 | ||||||||||||||||||||
Balance as of December 31, 2018 | (12) | (8) | (20) | ||||||||||||||||||||
Adoption of ASU 2018-02 | (2) | (2) | (4) | ||||||||||||||||||||
OCI before reclassifications(3)
|
— | (4) | (4) | ||||||||||||||||||||
Amounts reclassified from AOCI(3)
|
1 | 4 | 5 | ||||||||||||||||||||
Net OCI | 1 | — | 1 | ||||||||||||||||||||
Balance as of December 31, 2019 | (13) | (10) | (23) | ||||||||||||||||||||
OCI before reclassifications(3)
|
— | (10) | (10) | ||||||||||||||||||||
Amounts reclassified from AOCI | — | 2 | 2 | ||||||||||||||||||||
Net OCI | — | (8) | (8) | ||||||||||||||||||||
Balance as of December 31, 2020 | $ | (13) | $ | (18) | $ | (31) |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Details about accumulated
other comprehensive income (loss) components |
Amounts reclassified from accumulated
other comprehensive income (loss) |
Affected line item on
Consolidated Statements of Operations |
|||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||||||||
Foreign currency translation adjustments | $ | 645 | $ | — | $ | — |
Income from Discontinued Operations,
Net of Income Tax
|
||||||||||||||||
Financial instruments: | |||||||||||||||||||||||
Interest rate instruments | $ | — | $ | 10 | $ | 9 | (Loss) Gain on Sale of Assets | ||||||||||||||||
Interest rate instruments(1)
|
10 | 3 | 1 | Interest Expense | |||||||||||||||||||
Interest rate instruments | 46 | 3 | 9 | Equity Earnings | |||||||||||||||||||
Foreign exchange instruments | (1) | 2 | (1) | Revenues: Energy-Related Businesses | |||||||||||||||||||
Interest rate and foreign exchange instruments | 1 | — | (1) | Interest Expense | |||||||||||||||||||
11 | (9) | (2) | Other (Expense) Income, Net | ||||||||||||||||||||
Foreign exchange instruments | — | 2 | (2) | Equity Earnings | |||||||||||||||||||
Total before income tax | 67 | 11 | 13 | ||||||||||||||||||||
(19) | (2) | (4) | Income Tax (Expense) Benefit | ||||||||||||||||||||
Net of income tax | 48 | 9 | 9 | ||||||||||||||||||||
(1) | (1) | (6) | Earnings Attributable to Noncontrolling Interests | ||||||||||||||||||||
$ | 47 | $ | 8 | $ | 3 | ||||||||||||||||||
Pension and other postretirement benefits(2):
|
|||||||||||||||||||||||
Amortization of actuarial loss | $ | 8 | $ | 12 | $ | 11 | Other (Expense) Income, Net | ||||||||||||||||
Amortization of actuarial loss | 6 | 1 | 1 |
Income from Discontinued Operations,
Net of Income Tax
|
|||||||||||||||||||
Amortization of prior service cost | 4 | 3 | 2 | Other (Expense) Income, Net | |||||||||||||||||||
Settlement charges | 22 | 28 | 12 | Other (Expense) Income, Net | |||||||||||||||||||
Total before income tax | 40 | 44 | 26 | ||||||||||||||||||||
(2) | — | — |
Income from Discontinued Operations,
Net of Income Tax
|
||||||||||||||||||||
(9) | (12) | (8) | Income Tax (Expense) Benefit | ||||||||||||||||||||
Net of income tax | $ | 29 | $ | 32 | $ | 18 | |||||||||||||||||
Total reclassifications for the period, net of tax | $ | 721 | $ | 40 | $ | 21 | |||||||||||||||||
SDG&E: | |||||||||||||||||||||||
Financial instruments: | |||||||||||||||||||||||
Interest rate instruments(1)
|
$ | — | $ | 3 | $ | 7 | Interest Expense | ||||||||||||||||
— | (3) | (7) | Earnings Attributable to Noncontrolling Interest | ||||||||||||||||||||
$ | — | $ | — | $ | — | ||||||||||||||||||
Pension and other postretirement benefits(2):
|
|||||||||||||||||||||||
Amortization of actuarial loss | $ | 1 | $ | — | $ | 1 | Other Income, Net | ||||||||||||||||
Amortization of prior service cost | 1 | 1 | — | Other Income, Net | |||||||||||||||||||
Settlement charges | — | — | 4 | Other Income, Net | |||||||||||||||||||
Total before income tax | 2 | 1 | 5 | ||||||||||||||||||||
(1) | — | (1) | Income Tax Expense | ||||||||||||||||||||
Net of income tax | $ | 1 | $ | 1 | $ | 4 | |||||||||||||||||
Total reclassifications for the period, net of tax | $ | 1 | $ | 1 | $ | 4 | |||||||||||||||||
SoCalGas: | |||||||||||||||||||||||
Financial instruments: | |||||||||||||||||||||||
Interest rate instruments | $ | — | $ | 1 | $ | 1 | Interest Expense | ||||||||||||||||
Pension and other postretirement benefits(2):
|
|||||||||||||||||||||||
Amortization of actuarial loss | $ | 1 | $ | 1 | $ | — | Other (Expense) Income, Net | ||||||||||||||||
Amortization of prior service cost | 1 | — | 1 | Other (Expense) Income, Net | |||||||||||||||||||
Total before income tax | 2 | 1 | 1 | ||||||||||||||||||||
— | (1) | — | Income Tax Expense | ||||||||||||||||||||
Net of income tax | $ | 2 | $ | — | $ | 1 | |||||||||||||||||
Total reclassifications for the period, net of tax | $ | 2 | $ | 1 | $ | 2 |
OTHER NONCONTROLLING INTERESTS | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Percent ownership held by noncontrolling interests |
Equity (deficit) held by
noncontrolling interests |
||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Sempra Mexico: | |||||||||||||||||||||||
IEnova | 29.8 | % | 33.4 | % | $ | 1,487 | $ | 1,608 | |||||||||||||||
IEnova subsidiaries(1)
|
17.5 |
10.0 - 46.3
|
7 | 15 | |||||||||||||||||||
Sempra LNG: | |||||||||||||||||||||||
Liberty Gas Storage, LLC | — | 24.6 | — | (13) | |||||||||||||||||||
ECA LNG Phase 1 | 29.0 | 16.7 | 46 | 12 | |||||||||||||||||||
Parent and other: | |||||||||||||||||||||||
PXiSE Energy Solutions, LLC | 20.0 | 20.0 | 1 | 1 | |||||||||||||||||||
Discontinued Operations: | |||||||||||||||||||||||
Chilquinta Energía subsidiaries(1)
|
— |
19.7 - 43.4
|
— | 23 | |||||||||||||||||||
Luz del Sur | — | 16.4 | — | 205 | |||||||||||||||||||
Tecsur | — | 9.8 | — | 5 | |||||||||||||||||||
Total Sempra Energy | $ | 1,541 | $ | 1,856 |
AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES | |||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Sempra Energy Consolidated: | |||||||||||
Total due from various unconsolidated affiliates – current | $ | 20 | $ | 32 | |||||||
Sempra Mexico(1):
|
|||||||||||
ESJ – Note due December 31, 2022, net of negligible allowance for credit losses at December 31, 2020(2)
|
$ | 85 | $ | — | |||||||
IMG JV – Note due March 15, 2022, net of allowance for credit losses of $3 at December 31, 2020(3)
|
695 | 742 | |||||||||
Total due from unconsolidated affiliates – noncurrent | $ | 780 | $ | 742 | |||||||
Sempra Mexico – TAG Pipelines Norte, S. de R.L. de C.V. – Note due December 20, 2021(1)(4)
|
$ | (41) | $ | — | |||||||
Various affiliates | (4) | (5) | |||||||||
Total due to unconsolidated affiliates – current | $ | (45) | $ | (5) | |||||||
Sempra Mexico(1):
|
|||||||||||
TAG Pipelines Norte, S. de R.L. de C.V. | |||||||||||
Note due December 20, 2021(4)
|
$ | — | $ | (39) | |||||||
5.5% Note due January 9, 2024(5)
|
(68) | — | |||||||||
TAG JV – 5.74% Note due December 17, 2029(5)
|
(166) | (156) | |||||||||
Total due to unconsolidated affiliates – noncurrent | $ | (234) | $ | (195) | |||||||
SDG&E: | |||||||||||
Sempra Energy | $ | (38) | $ | (37) | |||||||
SoCalGas | (21) | (10) | |||||||||
Various affiliates | (5) | (6) | |||||||||
Total due to unconsolidated affiliates – current | $ | (64) | $ | (53) | |||||||
Income taxes due from Sempra Energy(6)
|
$ | — | $ | 130 | |||||||
SoCalGas: | |||||||||||
SDG&E | $ | 21 | $ | 10 | |||||||
Various affiliates | 1 | 1 | |||||||||
Total due from unconsolidated affiliates – current | $ | 22 | $ | 11 | |||||||
Sempra Energy | $ | (31) | $ | (45) | |||||||
Various affiliates | — | (2) | |||||||||
Total due to unconsolidated affiliates – current | $ | (31) | $ | (47) | |||||||
Income taxes due (to) from Sempra Energy(6)
|
$ | (37) | $ | 152 |
INCOME STATEMENT IMPACT FROM UNCONSOLIDATED AFFILIATES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated | |||||||||||||||||
Revenue | $ | 37 | $ | 52 | $ | 64 | |||||||||||
Cost of Sales | 45 | 50 | 46 | ||||||||||||||
Interest Income | 56 | 74 | 62 | ||||||||||||||
Interest Expense | 14 | 2 | 2 | ||||||||||||||
SDG&E: | |||||||||||||||||
Revenue | $ | 6 | $ | 6 | $ | 5 | |||||||||||
Cost of Sales | 79 | 74 | 73 | ||||||||||||||
SoCalGas: | |||||||||||||||||
Revenue | $ | 88 | $ | 69 | $ | 64 | |||||||||||
Cost of Sales | — | 8 | — |
OTHER (EXPENSE) INCOME, NET | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||
Allowance for equity funds used during construction | $ | 128 | $ | 94 | $ | 98 | |||||||||||
Investment gains (losses)(1)
|
41 | 61 | (6) | ||||||||||||||
(Losses) gains on interest rate and foreign exchange instruments, net | (67) | 34 | 7 | ||||||||||||||
Foreign currency transaction (losses) gains, net(2)
|
(25) | 21 | (6) | ||||||||||||||
Non-service component of net periodic benefit cost | (102) | (132) | (35) | ||||||||||||||
Fine related to Energy Efficiency Program Inquiry | (6) | — | — | ||||||||||||||
Penalties related to billing practices OII | — | (8) | — | ||||||||||||||
Interest on regulatory balancing accounts, net | 14 | 14 | 2 | ||||||||||||||
Sundry, net | (31) | (7) | (2) | ||||||||||||||
Total | $ | (48) | $ | 77 | $ | 58 | |||||||||||
SDG&E: | |||||||||||||||||
Allowance for equity funds used during construction | $ | 79 | $ | 56 | $ | 61 | |||||||||||
Non-service component of net periodic benefit cost | (20) | (20) | (6) | ||||||||||||||
Fine related to Energy Efficiency Program Inquiry | (6) | — | — | ||||||||||||||
Interest on regulatory balancing accounts, net | 9 | 13 | 4 | ||||||||||||||
Sundry, net | (10) | (10) | (3) | ||||||||||||||
Total | $ | 52 | $ | 39 | $ | 56 | |||||||||||
SoCalGas: | |||||||||||||||||
Allowance for equity funds used during construction | $ | 41 | $ | 34 | $ | 36 | |||||||||||
Non-service component of net periodic benefit cost | (54) | (72) | (10) | ||||||||||||||
Penalties related to billing practices OII | — | (8) | — | ||||||||||||||
Interest on regulatory balancing accounts, net | 5 | 1 | (2) | ||||||||||||||
Sundry, net | (20) | (10) | (9) | ||||||||||||||
Total | $ | (28) | $ | (55) | $ | 15 |
IMPACT FROM ADOPTION OF ASU 2016-13 | |||||
(Dollars in millions) | |||||
Sempra Energy Consolidated | |||||
Accounts receivable – trade, net | $ | (1) | |||
Due from unconsolidated affiliates – noncurrent | (6) | ||||
Deferred income tax assets | 4 | ||||
Other current liabilities | 4 | ||||
Deferred credits and other | 2 | ||||
Retained earnings | (7) | ||||
Other noncontrolling interests | (2) |
DISAGGREGATED REVENUES | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
SDG&E | SoCalGas | Sempra Mexico | Sempra LNG | Sempra Renewables | Consolidating adjustments and Parent and other | Sempra Energy Consolidated | |||||||||||||||||||||||||||||||||||
Year ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
By major service line: | |||||||||||||||||||||||||||||||||||||||||
Utilities | $ | 4,920 | $ | 4,571 | $ | 58 | $ | — | $ | — | $ | (94) | $ | 9,455 | |||||||||||||||||||||||||||
Energy-related businesses | — | — | 834 | 92 | — | (71) | 855 | ||||||||||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,920 | $ | 4,571 | $ | 892 | $ | 92 | $ | — | $ | (165) | $ | 10,310 | |||||||||||||||||||||||||||
By market: | |||||||||||||||||||||||||||||||||||||||||
Gas | $ | 692 | $ | 4,571 | $ | 603 | $ | 86 | $ | — | $ | (156) | $ | 5,796 | |||||||||||||||||||||||||||
Electric | 4,228 | — | 289 | 6 | — | (9) | 4,514 | ||||||||||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,920 | $ | 4,571 | $ | 892 | $ | 92 | $ | — | $ | (165) | $ | 10,310 | |||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,920 | $ | 4,571 | $ | 892 | $ | 92 | $ | — | $ | (165) | $ | 10,310 | |||||||||||||||||||||||||||
Utilities regulatory revenues | 393 | 177 | — | — | — | — | 570 | ||||||||||||||||||||||||||||||||||
Other revenues | — | — | 364 | 282 | — | (156) | 490 | ||||||||||||||||||||||||||||||||||
Total revenues | $ | 5,313 | $ | 4,748 | $ | 1,256 | $ | 374 | $ | — | $ | (321) | $ | 11,370 | |||||||||||||||||||||||||||
Year ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
By major service line: | |||||||||||||||||||||||||||||||||||||||||
Utilities | $ | 4,819 | $ | 4,367 | $ | 73 | $ | — | $ | — | $ | (75) | $ | 9,184 | |||||||||||||||||||||||||||
Energy-related businesses | — | — | 919 | 176 | 5 | (143) | 957 | ||||||||||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,819 | $ | 4,367 | $ | 992 | $ | 176 | $ | 5 | $ | (218) | $ | 10,141 | |||||||||||||||||||||||||||
By market: | |||||||||||||||||||||||||||||||||||||||||
Gas | $ | 587 | $ | 4,367 | $ | 680 | $ | 170 | $ | — | $ | (208) | $ | 5,596 | |||||||||||||||||||||||||||
Electric | 4,232 | — | 312 | 6 | 5 | (10) | 4,545 | ||||||||||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,819 | $ | 4,367 | $ | 992 | $ | 176 | $ | 5 | $ | (218) | $ | 10,141 | |||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,819 | $ | 4,367 | $ | 992 | $ | 176 | $ | 5 | $ | (218) | $ | 10,141 | |||||||||||||||||||||||||||
Utilities regulatory revenues | 106 | 158 | — | — | — | — | 264 | ||||||||||||||||||||||||||||||||||
Other revenues | — | — | 383 | 234 | 5 | (198) | 424 | ||||||||||||||||||||||||||||||||||
Total revenues | $ | 4,925 | $ | 4,525 | $ | 1,375 | $ | 410 | $ | 10 | $ | (416) | $ | 10,829 | |||||||||||||||||||||||||||
Year ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
By major service line: | |||||||||||||||||||||||||||||||||||||||||
Utilities | $ | 4,788 | $ | 3,577 | $ | 78 | $ | — | $ | — | $ | (69) | $ | 8,374 | |||||||||||||||||||||||||||
Energy-related businesses | — | — | 941 | 232 | 46 | (146) | 1,073 | ||||||||||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,788 | $ | 3,577 | $ | 1,019 | $ | 232 | $ | 46 | $ | (215) | $ | 9,447 | |||||||||||||||||||||||||||
By market: | |||||||||||||||||||||||||||||||||||||||||
Gas | $ | 491 | $ | 3,577 | $ | 711 | $ | 224 | $ | — | $ | (203) | $ | 4,800 | |||||||||||||||||||||||||||
Electric | 4,297 | — | 308 | 8 | 46 | (12) | 4,647 | ||||||||||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,788 | $ | 3,577 | $ | 1,019 | $ | 232 | $ | 46 | $ | (215) | $ | 9,447 | |||||||||||||||||||||||||||
Revenues from contracts with customers | $ | 4,788 | $ | 3,577 | $ | 1,019 | $ | 232 | $ | 46 | $ | (215) | $ | 9,447 | |||||||||||||||||||||||||||
Utilities regulatory revenues | (220) | 385 | — | — | — | — | 165 | ||||||||||||||||||||||||||||||||||
Other revenues | — | — | 357 | 240 | 78 | (185) | 490 | ||||||||||||||||||||||||||||||||||
Total revenues | $ | 4,568 | $ | 3,962 | $ | 1,376 | $ | 472 | $ | 124 | $ | (400) | $ | 10,102 |
REMAINING PERFORMANCE OBLIGATIONS(1)
|
||||||||
(Dollars in millions) | ||||||||
Sempra Energy Consolidated | SDG&E | |||||||
2021 | $ | 387 | $ | 4 | ||||
2022 | 406 | 4 | ||||||
2023 | 407 | 4 | ||||||
2024 | 348 | 4 | ||||||
2025 | 351 | 4 | ||||||
Thereafter | 4,361 | 67 | ||||||
Total revenues to be recognized
|
$ | 6,260 | $ | 87 |
CONTRACT LIABILITIES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||
Contract liabilities at January 1 | $ | (163) | $ | (70) | $ | — | |||||||||||
Adoption of ASC 606 | — | — | (61) | ||||||||||||||
Revenue from performance obligations satisfied during reporting period | 4 | 2 | 7 | ||||||||||||||
Payments received in advance | (48) | (95) | (16) | ||||||||||||||
Contract liabilities at December 31(1)
|
$ | (207) | $ | (163) | $ | (70) | |||||||||||
SDG&E: | |||||||||||||||||
Contract liabilities at January 1 | $ | (91) | $ | — | |||||||||||||
Revenue from performance obligations satisfied during reporting period | 4 | 1 | |||||||||||||||
Payments received in advance | — | (92) | |||||||||||||||
Contract liabilities at December 31(2)
|
$ | (87) | $ | (91) |
REGULATORY ASSETS (LIABILITIES) | |||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
SDG&E: | |||||||||||
Fixed-price contracts and other derivatives | $ | (53) | $ | 8 | |||||||
Deferred income taxes recoverable (refundable) in rates | 22 | (108) | |||||||||
Pension and other postretirement benefit plan obligations | 50 | 103 | |||||||||
Removal obligations | (2,121) | (2,056) | |||||||||
Environmental costs | 56 | 45 | |||||||||
Sunrise Powerlink fire mitigation | 121 | 121 | |||||||||
Regulatory balancing accounts(1)(2)
|
|||||||||||
Commodity – electric | 72 | 102 | |||||||||
Gas transportation | 35 | 22 | |||||||||
Safety and reliability | 67 | 77 | |||||||||
Public purpose programs | (158) | (124) | |||||||||
2019 GRC retroactive impacts | 56 | 111 | |||||||||
Other balancing accounts | 233 | 106 | |||||||||
Other regulatory assets (liabilities), net(2)
|
72 | (153) | |||||||||
Total SDG&E | (1,548) | (1,746) | |||||||||
SoCalGas: | |||||||||||
Deferred income taxes refundable in rates | (82) | (203) | |||||||||
Pension and other postretirement benefit plan obligations | 417 | 400 | |||||||||
Employee benefit costs | 37 | 44 | |||||||||
Removal obligations | (685) | (728) | |||||||||
Environmental costs | 36 | 40 | |||||||||
Regulatory balancing accounts(1)(2)
|
|||||||||||
Commodity – gas, including transportation | (56) | (118) | |||||||||
Safety and reliability | 335 | 295 | |||||||||
Public purpose programs | (253) | (273) | |||||||||
2019 GRC retroactive impacts | 202 | 400 | |||||||||
Other balancing accounts | (58) | (7) | |||||||||
Other regulatory assets (liabilities), net(2)
|
75 | (101) | |||||||||
Total SoCalGas | (32) | (251) | |||||||||
Sempra Mexico: | |||||||||||
Deferred income taxes recoverable in rates | 80 | 83 | |||||||||
Other regulatory assets | — | 6 | |||||||||
Total Sempra Energy Consolidated | $ | (1,500) | $ | (1,908) |
AUTHORIZED REVENUE REQUIREMENT INCREASES FOR 2020 AND 2021 | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
2020 increase from 2019 | 2021 increase from 2020 | ||||||||||||||||||||||
Revenue increase | Percent increase | Revenue increase | Percent increase | ||||||||||||||||||||
SDG&E: | |||||||||||||||||||||||
O&M | $ | 20 | 2.64 | % | $ | 19 | 2.47 | % | |||||||||||||||
Capital-related costs | 114 | 9.74 | 83 | 6.47 | |||||||||||||||||||
Total increase | $ | 134 | 6.74 | $ | 102 | 4.83 | |||||||||||||||||
SoCalGas: | |||||||||||||||||||||||
O&M | $ | 36 | 2.64 | % | $ | 34 | 2.40 | % | |||||||||||||||
Capital-related costs | 184 | 14.36 | 116 | 7.93 | |||||||||||||||||||
Total increase | $ | 220 | 7.92 | $ | 150 | 5.00 |
CPUC AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE | ||||||||||||||||||||
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 | % |
PURCHASE PRICE ALLOCATION | ||||||||
(Dollars in millions) | ||||||||
At March 9, 2018(1)
|
||||||||
Assets acquired: | ||||||||
Accounts receivable – other, net | $ | 1 | ||||||
Due from unconsolidated affiliates | 46 | |||||||
Investment in Oncor Holdings | 9,227 | |||||||
Deferred income tax assets | 287 | |||||||
Other noncurrent assets | 109 | |||||||
Total assets acquired | 9,670 | |||||||
Liabilities assumed: | ||||||||
Other current liabilities | 23 | |||||||
Pension and other postretirement benefit plan obligations | 21 | |||||||
Deferred credits and other | 58 | |||||||
Total liabilities assumed | 102 | |||||||
Net assets acquired | $ | 9,568 | ||||||
Total purchase price paid | $ | 9,568 |
DECONSOLIDATION OF SUBSIDIARIES | ||||||||
(Dollars in millions) | ||||||||
Certain subsidiaries of Sempra Renewables | ||||||||
At December 13, 2018 | ||||||||
Proceeds from sale, net of transaction costs | $ | 1,585 | ||||||
Cash | (7) | |||||||
Restricted cash | (7) | |||||||
Other current assets | (14) | |||||||
Property, plant and equipment, net | (1,303) | |||||||
Other investments | (329) | |||||||
Other long-term assets | (24) | |||||||
Current liabilities | 8 | |||||||
Long-term debt | 70 | |||||||
Asset retirement obligations | 52 | |||||||
Other long-term liabilities | 5 | |||||||
Noncontrolling interests | 486 | |||||||
Accumulated other comprehensive income | (9) | |||||||
Gain on sale | $ | 513 |
DISCONTINUED OPERATIONS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020(1)
|
2019 | 2018 | |||||||||||||||
Revenues | $ | 570 | $ | 1,614 | $ | 1,585 | |||||||||||
Cost of sales | (364) | (1,012) | (1,041) | ||||||||||||||
Gain on sale of discontinued operations | 2,899 | — | — | ||||||||||||||
Operating expenses | (66) | (159) | (206) | ||||||||||||||
Interest and other | (3) | (11) | (6) | ||||||||||||||
Income before income taxes and equity earnings | 3,036 | 432 | 332 | ||||||||||||||
Income tax expense | (1,186) | (72) | (145) | ||||||||||||||
Equity earnings | — | 3 | 1 | ||||||||||||||
Income from discontinued operations, net of income tax | 1,850 | 363 | 188 | ||||||||||||||
Earnings attributable to noncontrolling interests
|
(10) | (35) | (32) | ||||||||||||||
Earnings from discontinued operations attributable to common shares | $ | 1,840 | $ | 328 | $ | 156 |
ASSETS HELD FOR SALE IN DISCONTINUED OPERATIONS | |||||
(Dollars in millions) | |||||
December 31, 2019 | |||||
Cash and cash equivalents | $ | 74 | |||
Restricted cash(1)
|
1 | ||||
Accounts receivable, net | 303 | ||||
Due from unconsolidated affiliates | 2 | ||||
Inventories | 36 | ||||
Other current assets | 29 | ||||
Current assets | $ | 445 | |||
Due from unconsolidated affiliates | $ | 54 | |||
Goodwill and other intangible assets | 801 | ||||
Property, plant and equipment, net | 2,618 | ||||
Other noncurrent assets | 40 | ||||
Noncurrent assets | $ | 3,513 | |||
Short-term debt | $ | 52 | |||
Accounts payable | 201 | ||||
Current portion of long-term debt and finance leases | 85 | ||||
Other current liabilities | 106 | ||||
Current liabilities | $ | 444 | |||
Long-term debt and finance leases
|
$ | 702 | |||
Deferred income taxes | 284 | ||||
Other noncurrent liabilities | 66 | ||||
Noncurrent liabilities | $ | 1,052 |
EARNINGS (LOSSES) FROM EQUITY METHOD INVESTMENTS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
EARNINGS (LOSSES) RECORDED BEFORE INCOME TAX(1):
|
|||||||||||||||||
Sempra Texas Utilities: | |||||||||||||||||
Sharyland Holdings | $ | 3 | $ | 2 | $ | — | |||||||||||
Sempra LNG: | |||||||||||||||||
Cameron LNG JV | 391 | 24 | — | ||||||||||||||
Sempra Renewables: | |||||||||||||||||
Wind: | |||||||||||||||||
Auwahi Wind | — | — | 3 | ||||||||||||||
Broken Bow 2 Wind | — | — | (2) | ||||||||||||||
Cedar Creek 2 Wind | — | — | (1) | ||||||||||||||
Flat Ridge 2 Wind(2)
|
— | (3) | (178) | ||||||||||||||
Fowler Ridge 2 Wind | — | 5 | 3 | ||||||||||||||
Mehoopany Wind(2)
|
— | 1 | (30) | ||||||||||||||
Solar: | |||||||||||||||||
California solar partnership | — | — | 8 | ||||||||||||||
Copper Mountain Solar 2 | — | — | 5 | ||||||||||||||
Copper Mountain Solar 3 | — | — | 8 | ||||||||||||||
Mesquite Solar 1 | — | — | 18 | ||||||||||||||
Other | — | 2 | (3) | ||||||||||||||
Parent and other: | |||||||||||||||||
RBS Sempra Commodities(2)
|
(100) | — | (67) | ||||||||||||||
Other | — | (1) | — | ||||||||||||||
294 | 30 | (236) | |||||||||||||||
EARNINGS RECORDED NET OF INCOME TAX: | |||||||||||||||||
Sempra Texas Utilities: | |||||||||||||||||
Oncor Holdings | 577 | 526 | 371 | ||||||||||||||
Sempra Mexico: | |||||||||||||||||
ESJ | 5 | 2 | 2 | ||||||||||||||
IMG JV | 103 | 9 | 29 | ||||||||||||||
TAG JV | 36 | 13 | 9 | ||||||||||||||
721 | 550 | 411 | |||||||||||||||
Total | $ | 1,015 | $ | 580 | $ | 175 |
DISTRIBUTIONS FROM INVESTMENTS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Texas Utilities | $ | 286 | $ | 246 | $ | 149 | |||||||||||
Sempra Mexico | 8 | 2 | — | ||||||||||||||
Sempra LNG | 1,168 | — | — | ||||||||||||||
Sempra Renewables | — | 1 | 63 | ||||||||||||||
Parent and other | — | 7 | — | ||||||||||||||
Total | $ | 1,462 | $ | 256 | $ | 212 |
SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Year ended December 31, | March 9 - December 31, | ||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Operating revenues | $ | 4,511 | $ | 4,347 | $ | 3,347 | |||||||||||
Operating expense | (3,224) | (3,135) | (2,434) | ||||||||||||||
Income from operations | 1,287 | 1,212 | 913 | ||||||||||||||
Interest expense | (405) | (375) | (285) | ||||||||||||||
Income tax expense | (146) | (131) | (119) | ||||||||||||||
Net income | 703 | 643 | 455 | ||||||||||||||
Noncontrolling interest held by TTI | (141) | (129) | (94) | ||||||||||||||
Earnings attributable to Sempra Energy | 562 | 514 | 360 | ||||||||||||||
At December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Current assets | $ | 1,045 | $ | 913 | |||||||||||||
Noncurrent assets | 28,022 | 26,012 | |||||||||||||||
Current liabilities | 1,120 | 1,626 | |||||||||||||||
Noncurrent liabilities | 15,611 | 14,125 | |||||||||||||||
Noncontrolling interest held by TTI | 2,737 | 2,473 |
SUMMARIZED FINANCIAL INFORMATION – OTHER EQUITY METHOD INVESTMENTS
|
|||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 |
2019(1)
|
2018(2)
|
|||||||||||||||
Gross revenues | $ | 2,341 | $ | 798 | $ | 706 | |||||||||||
Operating expense | (706) | (372) | (609) | ||||||||||||||
Income from operations | 1,635 | 426 | 97 | ||||||||||||||
Interest expense | (514) | (401) | (322) | ||||||||||||||
Net income (loss)/Earnings (losses)(3)
|
1,132 | 85 | (36) |
At December 31, | |||||||||||||||||
2020 |
2019(1)
|
||||||||||||||||
Current assets | $ | 1,035 | $ | 1,124 | |||||||||||||
Noncurrent assets | 15,304 | 15,039 | |||||||||||||||
Current liabilities | 1,342 | 1,232 | |||||||||||||||
Noncurrent liabilities | 12,863 | 11,438 |
PRIMARY U.S. COMMITTED LINES OF CREDIT | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
At December 31, 2020 | |||||||||||||||||||||||
Total facility |
Commercial
paper
outstanding(1)
|
Available unused credit | |||||||||||||||||||||
Sempra Energy(2)
|
$ | 1,250 | $ | — | 1,250 | ||||||||||||||||||
Sempra Global | 3,185 | — | 3,185 | ||||||||||||||||||||
SDG&E(3)
|
1,500 | — | 1,500 | ||||||||||||||||||||
SoCalGas(3)(4)
|
750 | (113) | 637 | ||||||||||||||||||||
Total
|
$ | 6,685 | $ | (113) | $ | 6,572 |
FOREIGN COMMITTED LINES OF CREDIT | |||||||||||||||||||||||
(U.S. dollar equivalent in millions) | |||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Expiration date of facility | Total facility | Amounts outstanding | Available unused credit | ||||||||||||||||||||
February 2024(1)
|
$ | 1,500 | $ | (392) | $ | 1,108 | |||||||||||||||||
September 2021(2)
|
280 | (280) | — | ||||||||||||||||||||
Total
|
$ | 1,780 | $ | (672) | $ | 1,108 |
WEIGHTED-AVERAGE INTEREST RATES | |||||||||||||||||
December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Sempra Energy Consolidated | 0.83 | % | 2.31 | % | |||||||||||||
SDG&E | — | 1.97 | |||||||||||||||
SoCalGas | 0.14 | 1.86 |
LONG-TERM DEBT AND FINANCE LEASES | |||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
SDG&E: | |||||||||||
First mortgage bonds (collateralized by plant assets): | |||||||||||
3% August 15, 2021
|
$ | 350 | $ | 350 | |||||||
1.914% payable 2015 through February 2022
|
53 | 89 | |||||||||
3.6% September 1, 2023
|
450 | 450 | |||||||||
2.5% May 15, 2026
|
500 | 500 | |||||||||
6% June 1, 2026
|
250 | 250 | |||||||||
1.7% October 1, 2030
|
800 | — | |||||||||
5.875% January and February 2034(1)
|
— | 176 | |||||||||
5.35% May 15, 2035
|
250 | 250 | |||||||||
6.125% September 15, 2037
|
250 | 250 | |||||||||
4% May 1, 2039(1)
|
— | 75 | |||||||||
6% June 1, 2039
|
300 | 300 | |||||||||
5.35% May 15, 2040
|
250 | 250 | |||||||||
4.5% August 15, 2040
|
500 | 500 | |||||||||
3.95% November 15, 2041
|
250 | 250 | |||||||||
4.3% April 1, 2042
|
250 | 250 | |||||||||
3.75% June 1, 2047
|
400 | 400 | |||||||||
4.15% May 15, 2048
|
400 | 400 | |||||||||
4.1% June 15, 2049
|
400 | 400 | |||||||||
3.32% April 15, 2050
|
400 | — | |||||||||
6,053 | 5,140 | ||||||||||
Other long-term debt (uncollateralized): | |||||||||||
Variable rate (0.95% at December 31, 2020) 364-day term loan March 18, 2021(1)
|
200 | — | |||||||||
Finance lease obligations: | |||||||||||
Purchased-power contracts | 1,237 | 1,255 | |||||||||
Other | 39 | 15 | |||||||||
1,476 | 1,270 | ||||||||||
7,529 | 6,410 | ||||||||||
Current portion of long-term debt | (611) | (56) | |||||||||
Unamortized discount on long-term debt | (13) | (12) | |||||||||
Unamortized debt issuance costs | (39) | (36) | |||||||||
Total SDG&E
|
6,866 | 6,306 | |||||||||
SoCalGas: |
|
|
|||||||||
First mortgage bonds (collateralized by plant assets): | |||||||||||
3.15% September 15, 2024
|
$ | 500 | $ | 500 | |||||||
3.2% June 15, 2025
|
350 | 350 | |||||||||
2.6% June 15, 2026
|
500 | 500 | |||||||||
2.55% February 1, 2030
|
650 | — | |||||||||
5.75% November 15, 2035
|
250 | 250 | |||||||||
5.125% November 15, 2040
|
300 | 300 | |||||||||
3.75% September 15, 2042
|
350 | 350 | |||||||||
4.45% March 15, 2044
|
250 | 250 | |||||||||
4.125% June 1, 2048
|
400 | 400 | |||||||||
4.3% January 15, 2049
|
550 | 550 | |||||||||
3.95% February 15, 2050
|
350 | 350 | |||||||||
4,450 | 3,800 | ||||||||||
Other long-term debt (uncollateralized): |
|
|
|||||||||
Notes at variable rates (0.57% at December 31, 2020) September 14, 2023(1)
|
300 | — | |||||||||
1.875% Notes May 14, 2026(1)
|
4 | 4 | |||||||||
5.67% Notes January 18, 2028
|
5 | 5 | |||||||||
Finance lease obligations | 54 | 19 | |||||||||
363 | 28 | ||||||||||
4,813 | 3,828 | ||||||||||
Current portion of long-term debt | (10) | (6) | |||||||||
Unamortized discount on long-term debt | (8) | (7) | |||||||||
Unamortized debt issuance costs | (32) | (27) | |||||||||
Total SoCalGas
|
4,763 | 3,788 |
LONG-TERM DEBT AND FINANCE LEASES (CONTINUED) | |||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Sempra Energy: | |||||||||||
Other long-term debt (uncollateralized): | |||||||||||
2.4% Notes February 1, 2020
|
— | 500 | |||||||||
2.4% Notes March 15, 2020
|
— | 500 | |||||||||
2.85% Notes November 15, 2020
|
— | 400 | |||||||||
Notes at variable rates (2.50% at December 31, 2019) January 15, 2021(1)
|
— | 700 | |||||||||
Notes at variable rates (3.069% after floating-to-fixed rate swaps effective 2019) March 15, 2021
|
850 | 850 | |||||||||
2.875% Notes October 1, 2022
|
500 | 500 | |||||||||
2.9% Notes February 1, 2023
|
500 | 500 | |||||||||
4.05% Notes December 1, 2023
|
500 | 500 | |||||||||
3.55% Notes June 15, 2024
|
500 | 500 | |||||||||
3.75% Notes November 15, 2025
|
350 | 350 | |||||||||
3.25% Notes June 15, 2027
|
750 | 750 | |||||||||
3.4% Notes February 1, 2028
|
1,000 | 1,000 | |||||||||
3.8% Notes February 1, 2038
|
1,000 | 1,000 | |||||||||
6% Notes October 15, 2039
|
750 | 750 | |||||||||
4% Notes February 1, 2048
|
800 | 800 | |||||||||
5.75% Junior Subordinated Notes July 1, 2079(1)
|
758 | 758 | |||||||||
Sempra Mexico | |||||||||||
Other long-term debt (uncollateralized unless otherwise noted): | |||||||||||
6.3% Notes February 2, 2023 (4.124% after cross-currency swap effective 2013)
|
197 | 207 | |||||||||
Notes at variable rates (4.88% after floating-to-fixed rate swaps effective 2014),
payable 2016 through December 2026, collateralized by plant assets
|
196 | 237 | |||||||||
3.75% Notes January 14, 2028
|
300 | 300 | |||||||||
Bank loans including $234 at a weighted-average fixed rate of 6.87%, $130 at variable rates
(weighted-average rate of 6.54% after floating-to-fixed rate swaps effective 2014) and $34 at variable
rates (3.45% at December 31, 2020), payable 2016 through March 2032, collateralized by plant assets
|
398 | 423 | |||||||||
4.875% Notes January 14, 2048
|
540 | 540 | |||||||||
Loan at variable rates (5.75% at December 31, 2019) July 31, 2028(1)
|
— | 11 | |||||||||
Loan at variable rates (4.0275% after floating-to-fixed rate swap effective 2019)
payable 2022 through November 2034(1)
|
200 | 200 | |||||||||
4.75% notes January 15, 2051
|
800 | — | |||||||||
Loan at variable rates (2.38% after floating-to-fixed rate swap effective 2020)
payable November 2034(1)
|
100 | — | |||||||||
2.90% loan November 15, 2034(1)
|
241 | — | |||||||||
Sempra LNG | |||||||||||
Other long-term debt (uncollateralized): | |||||||||||
Notes at 2.87% to 3.51% October 1, 2026(1)
|
— | 22 | |||||||||
Loan at variable rates (2.82% at December 31, 2020) December 9, 2025(1)
|
17 | — | |||||||||
11,247 | 12,298 | ||||||||||
Current portion of long-term debt | (919) | (1,464) | |||||||||
Unamortized discount on long-term debt | (55) | (35) | |||||||||
Unamortized debt issuance costs | (121) | (108) | |||||||||
Total other Sempra Energy | 10,152 | 10,691 | |||||||||
Total Sempra Energy Consolidated
|
$ | 21,781 | $ | 20,785 |
MATURITIES OF LONG-TERM DEBT(1)
|
|||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
SDG&E | SoCalGas |
Other
Sempra
Energy
|
Total
Sempra
Energy
Consolidated
|
||||||||||||||||||||
2021 | $ | 585 | $ | — | $ | 919 | $ | 1,504 | |||||||||||||||
2022 | 18 | — | 583 | 601 | |||||||||||||||||||
2023 | 450 | 300 | 1,281 | 2,031 | |||||||||||||||||||
2024 | — | 500 | 564 | 1,064 | |||||||||||||||||||
2025 | — | 350 | 461 | 811 | |||||||||||||||||||
Thereafter | 5,200 | 3,609 | 7,439 | 16,248 | |||||||||||||||||||
Total | $ | 6,253 | $ | 4,759 | $ | 11,247 | $ | 22,259 |
CALLABLE LONG-TERM DEBT | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
SDG&E | SoCalGas |
Other
Sempra Energy |
Total
Sempra Energy Consolidated |
||||||||||||||||||||
Not subject to make-whole provisions | $ | 200 | $ | 304 | $ | 1,299 | $ | 1,803 | |||||||||||||||
Subject to make-whole provisions | 6,053 | 4,450 | 8,503 | 19,006 |
INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||
Income tax expense (benefit) from continuing operations | $ | 249 | $ | 315 | $ | (49) | |||||||||||
Income from continuing operations before income taxes and equity earnings | $ | 1,489 | $ | 1,734 | $ | 714 | |||||||||||
Equity earnings (losses), before income tax(1)
|
294 | 30 | (236) | ||||||||||||||
Pretax income | $ | 1,783 | $ | 1,764 | $ | 478 | |||||||||||
Effective income tax rate | 14 | % | 18 | % | (10) | % | |||||||||||
SDG&E: | |||||||||||||||||
Income tax expense | $ | 190 | $ | 171 | $ | 173 | |||||||||||
Income before income taxes | $ | 1,014 | $ | 945 | $ | 849 | |||||||||||
Effective income tax rate | 19 | % | 18 | % | 20 | % | |||||||||||
SoCalGas: | |||||||||||||||||
Income tax expense | $ | 96 | $ | 120 | $ | 92 | |||||||||||
Income before income taxes | $ | 601 | $ | 762 | $ | 493 | |||||||||||
Effective income tax rate | 16 | % | 16 | % | 19 | % |
RECONCILIATION OF FEDERAL INCOME TAX RATES TO EFFECTIVE INCOME TAX RATES | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||
U.S. federal statutory income tax rate | 21 | % | 21 | % | 21 | % | |||||||||||
Utility depreciation | 3 | 3 | 12 | ||||||||||||||
Non-U.S. earnings taxed at rates different from the U.S. statutory income tax rate(1)
|
2 | 3 | 10 | ||||||||||||||
State income taxes, net of federal income tax benefit | 1 | 2 | (8) | ||||||||||||||
Impairment losses | 1 | — | (32) | ||||||||||||||
Effects of the TCJA | — | — | 9 | ||||||||||||||
Unrecognized income tax benefits | — | — | 4 | ||||||||||||||
Noncontrolling interests in tax equity arrangements | — | — | 3 | ||||||||||||||
Resolution of prior years’ income tax items | — | — | (1) | ||||||||||||||
Excess deferred income taxes outside of ratemaking | — | (4) | — | ||||||||||||||
Compensation-related items | (1) | — | 3 | ||||||||||||||
Valuation allowances | (1) | — | — | ||||||||||||||
Allowance for equity funds used during construction | (1) | (1) | (4) | ||||||||||||||
Amortization of excess deferred income taxes | (1) | (1) | (4) | ||||||||||||||
Tax credits | (1) | (2) | (10) | ||||||||||||||
Foreign exchange and inflation effects(2)
|
(3) | 4 | 6 | ||||||||||||||
Utility self-developed software expenditures | (3) | (2) | (7) | ||||||||||||||
Utility repairs expenditures | (4) | (3) | (13) | ||||||||||||||
Other, net | 1 | (2) | 1 | ||||||||||||||
Effective income tax rate | 14 | % | 18 | % | (10) | % | |||||||||||
SDG&E: | |||||||||||||||||
U.S. federal statutory income tax rate | 21 | % | 21 | % | 21 | % | |||||||||||
State income taxes, net of federal income tax benefit | 5 | 6 | 5 | ||||||||||||||
Depreciation | 3 | 3 | 3 | ||||||||||||||
Excess deferred income taxes outside of ratemaking | — | (3) | — | ||||||||||||||
Amortization of excess deferred income taxes | (1) | (1) | (1) | ||||||||||||||
Allowance for equity funds used during construction | (2) | (1) | (2) | ||||||||||||||
Repairs expenditures | (3) | (3) | (3) | ||||||||||||||
Self-developed software expenditures | (4) | (3) | (2) | ||||||||||||||
Other, net | — | (1) | (1) | ||||||||||||||
Effective income tax rate | 19 | % | 18 | % | 20 | % | |||||||||||
SoCalGas: | |||||||||||||||||
U.S. federal statutory income tax rate | 21 | % | 21 | % | 21 | % | |||||||||||
Depreciation | 5 | 4 | 7 | ||||||||||||||
State income taxes, net of federal income tax benefit | 2 | 4 | 2 | ||||||||||||||
Nondeductible expenditures | 2 | — | — | ||||||||||||||
Unrecognized income tax benefits | — | — | 4 | ||||||||||||||
Compensation-related items | — | — | 1 | ||||||||||||||
Resolution of prior years’ income tax items | — | — | (1) | ||||||||||||||
Excess deferred income taxes outside of ratemaking | — | (5) | — | ||||||||||||||
Allowance for equity funds used during construction | (1) | (1) | (2) | ||||||||||||||
Amortization of excess deferred income taxes | (1) | (1) | (2) | ||||||||||||||
Self-developed software expenditures | (4) | (2) | (3) | ||||||||||||||
Repairs expenditures | (7) | (4) | (7) | ||||||||||||||
Other, net | (1) | — | (1) | ||||||||||||||
Effective income tax rate | 16 | % | 16 | % | 19 | % |
PRETAX INCOME – SEMPRA ENERGY CONSOLIDATED | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
By geographic components: | |||||||||||||||||
U.S. | $ | 1,461 | $ | 1,191 | $ | (102) | |||||||||||
Non-U.S. | 322 | 573 | 580 | ||||||||||||||
Total(1)
|
$ | 1,783 | $ | 1,764 | $ | 478 |
INCOME TAX EXPENSE (BENEFIT) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||
Current: | |||||||||||||||||
U.S. federal | $ | — | $ | — | $ | (1) | |||||||||||
U.S. state | (22) | (14) | 67 | ||||||||||||||
Non-U.S. | 112 | 140 | 127 | ||||||||||||||
Total | 90 | 126 | 193 | ||||||||||||||
Deferred: | |||||||||||||||||
U.S. federal | 157 | 87 | (121) | ||||||||||||||
U.S. state | 36 | 21 | (183) | ||||||||||||||
Non-U.S. | (34) | 84 | 66 | ||||||||||||||
Total | 159 | 192 | (238) | ||||||||||||||
Deferred investment tax credits | — | (3) | (4) | ||||||||||||||
Total income tax expense (benefit) | $ | 249 | $ | 315 | $ | (49) | |||||||||||
SDG&E: | |||||||||||||||||
Current: | |||||||||||||||||
U.S. federal | $ | 121 | $ | 35 | $ | 104 | |||||||||||
U.S. state | 34 | 31 | 30 | ||||||||||||||
Total | 155 | 66 | 134 | ||||||||||||||
Deferred: | |||||||||||||||||
U.S. federal | 11 | 75 | 17 | ||||||||||||||
U.S. state | 25 | 32 | 24 | ||||||||||||||
Total | 36 | 107 | 41 | ||||||||||||||
Deferred investment tax credits | (1) | (2) | (2) | ||||||||||||||
Total income tax expense | $ | 190 | $ | 171 | $ | 173 | |||||||||||
SoCalGas: | |||||||||||||||||
Current: | |||||||||||||||||
U.S. federal | $ | 163 | $ | 8 | $ | 4 | |||||||||||
U.S. state | 45 | 24 | 10 | ||||||||||||||
Total | 208 | 32 | 14 | ||||||||||||||
Deferred: | |||||||||||||||||
U.S. federal | (85) | 79 | 78 | ||||||||||||||
U.S. state | (28) | 10 | 2 | ||||||||||||||
Total | (113) | 89 | 80 | ||||||||||||||
Deferred investment tax credits | 1 | (1) | (2) | ||||||||||||||
Total income tax expense | $ | 96 | $ | 120 | $ | 92 |
DEFERRED INCOME TAXES – SEMPRA ENERGY CONSOLIDATED
|
|||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Deferred income tax liabilities: | |||||||||||
Differences in financial and tax bases of fixed assets, investments and other assets(1)
|
$ | 4,891 | $ | 4,052 | |||||||
U.S. state and non-U.S. withholding tax on repatriation of foreign earnings | 46 | 153 | |||||||||
Regulatory balancing accounts | 587 | 468 | |||||||||
Right-of-use assets – operating leases | 144 | 131 | |||||||||
Property taxes | 51 | 44 | |||||||||
Other deferred income tax liabilities | 40 | 93 | |||||||||
Total deferred income tax liabilities | 5,759 | 4,941 | |||||||||
Deferred income tax assets: | |||||||||||
Tax credits | 1,161 | 1,136 | |||||||||
Net operating losses | 1,299 | 911 | |||||||||
Postretirement benefits | 162 | 200 | |||||||||
Compensation-related items | 169 | 161 | |||||||||
Operating lease liabilities | 125 | 131 | |||||||||
Other deferred income tax assets | 152 | 72 | |||||||||
Accrued expenses not yet deductible | 130 | 52 | |||||||||
Deferred income tax assets before valuation allowances | 3,198 | 2,663 | |||||||||
Less: valuation allowances | 174 | 144 | |||||||||
Total deferred income tax assets | 3,024 | 2,519 | |||||||||
Net deferred income tax liability(2)
|
$ | 2,735 | $ | 2,422 |
DEFERRED INCOME TAXES – SDG&E AND SOCALGAS
|
|||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
SDG&E | SoCalGas | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Deferred income tax liabilities: | |||||||||||||||||||||||
Differences in financial and tax bases of utility plant and
other assets
|
$ | 1,833 | $ | 1,735 | $ | 1,322 | $ | 1,246 | |||||||||||||||
Regulatory balancing accounts | 224 | 141 | 362 | 327 | |||||||||||||||||||
Right-of-use assets – operating leases | 28 | 32 | 21 | 22 | |||||||||||||||||||
Property taxes | 34 | 30 | 17 | 14 | |||||||||||||||||||
Other | 2 | 14 | 1 | 1 | |||||||||||||||||||
Total deferred income tax liabilities | 2,121 | 1,952 | 1,723 | 1,610 | |||||||||||||||||||
Deferred income tax assets: | |||||||||||||||||||||||
Tax credits | 5 | 6 | 3 | 3 | |||||||||||||||||||
Postretirement benefits | 14 | 37 | 123 | 120 | |||||||||||||||||||
Compensation-related items | 12 | 6 | 36 | 25 | |||||||||||||||||||
Operating lease liabilities | 28 | 32 | 21 | 22 | |||||||||||||||||||
Bad debt allowance | 18 | 3 | 15 | 1 | |||||||||||||||||||
State income taxes | 8 | 7 | 11 | 8 | |||||||||||||||||||
Accrued expenses not yet deductible | 14 | 9 | 93 | 15 | |||||||||||||||||||
Other | 3 | 4 | 15 | 13 | |||||||||||||||||||
Total deferred income tax assets | 102 | 104 | 317 | 207 | |||||||||||||||||||
Net deferred income tax liability | $ | 2,019 | $ | 1,848 | $ | 1,406 | $ | 1,403 |
NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS | ||||||||
(Dollars in millions) | ||||||||
Unused amount at December 31, 2020 | Year expiration begins | |||||||
Sempra Energy Consolidated: | ||||||||
U.S. federal: | ||||||||
NOLs(1)
|
$ | 5,284 | 2031 | |||||
General business tax credits(1)
|
428 | 2032 | ||||||
Foreign tax credits(2)
|
694 | 2024 | ||||||
U.S. state(2):
|
||||||||
NOLs
|
3,047 | 2021 | ||||||
General business tax credits
|
39 | 2021 | ||||||
Non-U.S.(2) – NOLs
|
126 | 2021 | ||||||
VALUATION ALLOWANCES | |||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Sempra Energy Consolidated: | |||||||||||
U.S. federal
|
$ | 118 | $ | 90 | |||||||
U.S. state
|
32 | 33 | |||||||||
Non-U.S.
|
24 | 21 | |||||||||
$ | 174 | $ | 144 |
RECONCILIATION OF UNRECOGNIZED INCOME TAX BENEFITS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||
Balance at January 1 | $ | 93 | $ | 119 | $ | 89 | |||||||||||
Increase in prior period tax positions | 3 | 5 | 7 | ||||||||||||||
Decrease in prior period tax positions | (1) | — | (1) | ||||||||||||||
Increase in current period tax positions | 4 | 2 | 24 | ||||||||||||||
Settlements with taxing authorities | — | (32) | — | ||||||||||||||
Expiration of statutes of limitations | — | (1) | — | ||||||||||||||
Balance at December 31 | $ | 99 | $ | 93 | $ | 119 | |||||||||||
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
|
|||||||||||||||||
decrease the effective tax rate(1)
|
$ | (87) | $ | (81) | $ | (107) | |||||||||||
increase the effective tax rate(1)
|
31 | 27 | 24 | ||||||||||||||
SDG&E: | |||||||||||||||||
Balance at January 1 | $ | 12 | $ | 11 | $ | 10 | |||||||||||
Increase in prior period tax positions | 1 | 1 | 1 | ||||||||||||||
Balance at December 31 | $ | 13 | $ | 12 | $ | 11 | |||||||||||
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
|
|||||||||||||||||
decrease the effective tax rate(1)
|
$ | (10) | $ | (9) | $ | (9) | |||||||||||
increase the effective tax rate(1)
|
1 | 1 | 1 | ||||||||||||||
SoCalGas: | |||||||||||||||||
Balance at January 1 | $ | 64 | $ | 61 | $ | 35 | |||||||||||
Increase in prior period tax positions | 1 | 1 | 2 | ||||||||||||||
Increase in current period tax positions | 3 | 2 | 24 | ||||||||||||||
Balance at December 31 | $ | 68 | $ | 64 | $ | 61 | |||||||||||
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
|
|||||||||||||||||
decrease the effective tax rate(1)
|
$ | (59) | $ | (55) | $ | (51) | |||||||||||
increase the effective tax rate(1)
|
30 | 26 | 23 |
POSSIBLE DECREASES IN UNRECOGNIZED INCOME TAX BENEFITS WITHIN 12 MONTHS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
At December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||
Expiration of statutes of limitations on tax assessments | $ | — | $ | — | $ | (1) | |||||||||||
Potential resolution of audit issues with various U.S. federal, state and local
and non-U.S. taxing authorities
|
(8) | (8) | (40) | ||||||||||||||
$ | (8) | $ | (8) | $ | (41) | ||||||||||||
SDG&E: | |||||||||||||||||
Potential resolution of audit issues with various U.S. federal, state and local
taxing authorities
|
$ | (6) | $ | (6) | $ | (6) | |||||||||||
SoCalGas: | |||||||||||||||||
Potential resolution of audit issues with various U.S. federal, state and local
taxing authorities
|
$ | (2) | $ | (2) | $ | (2) |
PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS | |||||||||||||||||||||||
SEMPRA ENERGY CONSOLIDATED | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Pension benefits |
Other postretirement
benefits
|
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
CHANGE IN PROJECTED BENEFIT OBLIGATION | |||||||||||||||||||||||
Net obligation at January 1 | $ | 3,768 | $ | 3,339 | $ | 913 | $ | 868 | |||||||||||||||
Service cost | 129 | 110 | 18 | 17 | |||||||||||||||||||
Interest cost | 129 | 139 | 33 | 36 | |||||||||||||||||||
Contributions from plan participants | — | — | 22 | 21 | |||||||||||||||||||
Actuarial loss | 351 | 445 | 79 | 45 | |||||||||||||||||||
Plan amendments | — | 5 | — | — | |||||||||||||||||||
Benefit payments | (93) | (93) | (74) | (72) | |||||||||||||||||||
Settlements | (207) | (177) | (2) | (2) | |||||||||||||||||||
Net obligation at December 31 | 4,077 | 3,768 | 989 | 913 | |||||||||||||||||||
CHANGE IN PLAN ASSETS | |||||||||||||||||||||||
Fair value of plan assets at January 1 | 2,662 | 2,160 | 1,281 | 1,108 | |||||||||||||||||||
Actual return on plan assets | 350 | 496 | 164 | 218 | |||||||||||||||||||
Employer contributions | 290 | 276 | 8 | 8 | |||||||||||||||||||
Contributions from plan participants | — | — | 22 | 21 | |||||||||||||||||||
Benefit payments | (93) | (93) | (74) | (72) | |||||||||||||||||||
Settlements | (207) | (177) | (2) | (2) | |||||||||||||||||||
Fair value of plan assets at December 31 | 3,002 | 2,662 | 1,399 | 1,281 | |||||||||||||||||||
Funded status at December 31 | $ | (1,075) | $ | (1,106) | $ | 410 | $ | 368 | |||||||||||||||
Net recorded (liability) asset at December 31 | $ | (1,075) | $ | (1,106) | $ | 410 | $ | 368 |
PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS | |||||||||||||||||||||||
SAN DIEGO GAS & ELECTRIC COMPANY | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Pension benefits |
Other postretirement
benefits |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
CHANGE IN PROJECTED BENEFIT OBLIGATION | |||||||||||||||||||||||
Net obligation at January 1 | $ | 895 | $ | 814 | $ | 177 | $ | 170 | |||||||||||||||
Service cost | 31 | 30 | 4 | 4 | |||||||||||||||||||
Interest cost | 30 | 34 | 6 | 7 | |||||||||||||||||||
Contributions from plan participants | — | — | 8 | 7 | |||||||||||||||||||
Actuarial loss | 37 | 61 | 17 | 7 | |||||||||||||||||||
Plan amendments | — | 3 | — | — | |||||||||||||||||||
Benefit payments | (18) | (18) | (20) | (18) | |||||||||||||||||||
Settlements | (52) | (39) | — | — | |||||||||||||||||||
Transfer of liability from other plans | (10) | 10 | 1 | — | |||||||||||||||||||
Net obligation at December 31 | 913 | 895 | 193 | 177 | |||||||||||||||||||
CHANGE IN PLAN ASSETS | |||||||||||||||||||||||
Fair value of plan assets at January 1 | 739 | 600 | 197 | 172 | |||||||||||||||||||
Actual return on plan assets | 94 | 135 | 26 | 36 | |||||||||||||||||||
Employer contributions | 52 | 52 | 1 | — | |||||||||||||||||||
Contributions from plan participants | — | — | 8 | 7 | |||||||||||||||||||
Benefit payments | (18) | (18) | (20) | (18) | |||||||||||||||||||
Settlements | (52) | (39) | — | — | |||||||||||||||||||
Transfer of assets from other plans | 4 | 9 | 1 | — | |||||||||||||||||||
Fair value of plan assets at December 31 | 819 | 739 | 213 | 197 | |||||||||||||||||||
Funded status at December 31 | $ | (94) | $ | (156) | $ | 20 | $ | 20 | |||||||||||||||
Net recorded (liability) asset at December 31 | $ | (94) | $ | (156) | $ | 20 | $ | 20 |
PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS | |||||||||||||||||||||||
SOUTHERN CALIFORNIA GAS COMPANY | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Pension benefits |
Other postretirement
benefits |
||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
CHANGE IN PROJECTED BENEFIT OBLIGATION | |||||||||||||||||||||||
Net obligation at January 1 | $ | 2,526 | $ | 2,148 | $ | 688 | $ | 646 | |||||||||||||||
Service cost | 86 | 68 | 14 | 12 | |||||||||||||||||||
Interest cost | 88 | 91 | 25 | 27 | |||||||||||||||||||
Contributions from plan participants | — | — | 14 | 13 | |||||||||||||||||||
Actuarial loss | 282 | 345 | 57 | 39 | |||||||||||||||||||
Plan amendments | — | 2 | — | — | |||||||||||||||||||
Benefit payments | (60) | (59) | (49) | (49) | |||||||||||||||||||
Settlements | (105) | (65) | — | — | |||||||||||||||||||
Transfer of liability to other plans | 12 | (4) | — | — | |||||||||||||||||||
Net obligation at December 31 | 2,829 | 2,526 | 749 | 688 | |||||||||||||||||||
CHANGE IN PLAN ASSETS | |||||||||||||||||||||||
Fair value of plan assets at January 1 | 1,737 | 1,385 | 1,059 | 916 | |||||||||||||||||||
Actual return on plan assets | 243 | 320 | 134 | 178 | |||||||||||||||||||
Employer contributions | 152 | 152 | 1 | 1 | |||||||||||||||||||
Contributions from plan participants | — | — | 14 | 13 | |||||||||||||||||||
Benefit payments | (60) | (59) | (49) | (49) | |||||||||||||||||||
Settlements | (105) | (65) | — | — | |||||||||||||||||||
Transfer of assets from other plans | 2 | 4 | — | — | |||||||||||||||||||
Fair value of plan assets at December 31 | 1,969 | 1,737 | 1,159 | 1,059 | |||||||||||||||||||
Funded status at December 31 | $ | (860) | $ | (789) | $ | 410 | $ | 371 | |||||||||||||||
Net recorded (liability) asset at December 31 | $ | (860) | $ | (789) | $ | 410 | $ | 371 |
PENSION AND OTHER POSTRETIREMENT BENEFIT OBLIGATIONS, NET OF PLAN ASSETS | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Pension benefits |
Other postretirement
benefits |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||||||||
Noncurrent assets | $ | — | $ | — | $ | 430 | $ | 391 | |||||||||||||||
Current liabilities | (35) | (59) | (1) | (3) | |||||||||||||||||||
Noncurrent liabilities | (1,040) | (1,047) | (19) | (20) | |||||||||||||||||||
Net recorded (liability) asset | $ | (1,075) | $ | (1,106) | $ | 410 | $ | 368 | |||||||||||||||
SDG&E: | |||||||||||||||||||||||
Noncurrent assets | $ | — | $ | — | $ | 20 | $ | 20 | |||||||||||||||
Current liabilities | (2) | (3) | — | — | |||||||||||||||||||
Noncurrent liabilities | (92) | (153) | — | — | |||||||||||||||||||
Net recorded (liability) asset | $ | (94) | $ | (156) | $ | 20 | $ | 20 | |||||||||||||||
SoCalGas: | |||||||||||||||||||||||
Noncurrent assets | $ | — | $ | — | $ | 410 | $ | 371 | |||||||||||||||
Current liabilities | (7) | (4) | — | — | |||||||||||||||||||
Noncurrent liabilities | (853) | (785) | — | — | |||||||||||||||||||
Net recorded (liability) asset | $ | (860) | $ | (789) | $ | 410 | $ | 371 |
OBLIGATIONS OF FUNDED PENSION PLANS | |||||||||||
(Dollars in millions) | |||||||||||
2020 | 2019 | ||||||||||
Sempra Energy Consolidated: | |||||||||||
Projected benefit obligation | $ | 3,679 | $ | 3,578 | |||||||
Accumulated benefit obligation | 3,265 | 3,229 | |||||||||
Fair value of plan assets | 2,788 | 2,662 | |||||||||
SDG&E: | |||||||||||
Projected benefit obligation | $ | 887 | $ | 861 | |||||||
Accumulated benefit obligation | 834 | 818 | |||||||||
Fair value of plan assets | 819 | 739 | |||||||||
SoCalGas: | |||||||||||
Projected benefit obligation | $ | 2,792 | $ | 2,505 | |||||||
Accumulated benefit obligation | 2,431 | 2,208 | |||||||||
Fair value of plan assets | 1,969 | 1,737 |
OBLIGATIONS OF UNFUNDED PENSION PLANS | |||||||||||
(Dollars in millions) | |||||||||||
2020 | 2019 | ||||||||||
Sempra Energy Consolidated: | |||||||||||
Projected benefit obligation | $ | 184 | $ | 190 | |||||||
Accumulated benefit obligation | 146 | 158 | |||||||||
SDG&E: | |||||||||||
Projected benefit obligation | $ | 26 | $ | 34 | |||||||
Accumulated benefit obligation | 22 | 27 | |||||||||
SoCalGas: | |||||||||||
Projected benefit obligation | $ | 37 | $ | 21 | |||||||
Accumulated benefit obligation | 31 | 17 |
OBLIGATIONS OF FUNDED OTHER POSTRETIREMENT BENEFIT PLANS | |||||||||||
(Dollars in millions) | |||||||||||
2020 | 2019 | ||||||||||
Sempra Energy Consolidated: | |||||||||||
Accumulated postretirement benefit obligation | $ | 33 | $ | 32 | |||||||
Fair value of plan assets | 27 | 25 |
OBLIGATIONS OF UNFUNDED OTHER POSTRETIREMENT BENEFIT PLANS | |||||||||||
(Dollars in millions) | |||||||||||
2020 | 2019 | ||||||||||
Sempra Energy Consolidated: | |||||||||||
Accumulated postretirement benefit obligation | $ | 14 | $ | 16 |
WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATION | |||||||||||||||||||||||
AT DECEMBER 31 | |||||||||||||||||||||||
Pension benefits | Other postretirement benefits | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||||||||
Discount rate | 2.78 | % | 3.49 | % | 2.88 | % | 3.54 | % | |||||||||||||||
Interest crediting rate(1)(2)
|
1.62 | 2.28 | 1.62 | 2.28 | |||||||||||||||||||
Rate of compensation increase |
2.70-10.00
|
2.70-10.00
|
2.70-10.00
|
2.70-10.00
|
|||||||||||||||||||
SDG&E: | |||||||||||||||||||||||
Discount rate | 2.73 | % | 3.44 | % | 2.85 | % | 3.55 | % | |||||||||||||||
Interest crediting rate(1)(2)
|
1.62 | 2.28 | 1.62 | 2.28 | |||||||||||||||||||
Rate of compensation increase |
2.70-10.00
|
2.70-10.00
|
2.70-10.00
|
2.70-10.00
|
|||||||||||||||||||
SoCalGas: | |||||||||||||||||||||||
Discount rate | 2.79 | % | 3.50 | % | 2.90 | % | 3.55 | % | |||||||||||||||
Interest crediting rate(1)(2)
|
1.62 | 2.28 | 1.62 | 2.28 | |||||||||||||||||||
Rate of compensation increase |
2.70-10.00
|
2.70-10.00
|
2.70-10.00
|
2.70-10.00
|
WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE NET PERIODIC BENEFIT COST | |||||||||||||||||||||||||||||||||||
YEARS ENDED DECEMBER 31 | |||||||||||||||||||||||||||||||||||
Pension benefits | Other postretirement benefits | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||||||||||||||||||||
Discount rate | 3.49 | % | 4.29 | % | 3.64 | % | 3.54 | % | 4.29 | % | 3.68 | % | |||||||||||||||||||||||
Expected return on plan assets | 7.00 | 7.00 | 7.00 | 4.64 | 6.48 | 6.49 | |||||||||||||||||||||||||||||
Interest crediting rate(1)(2)
|
2.28 | 3.36 | 2.80 | 2.28 | 3.36 | 2.80 | |||||||||||||||||||||||||||||
Rate of compensation increase |
2.70-10.00
|
2.00-10.00
|
2.00-10.00
|
2.70-10.00
|
2.00-10.00
|
2.00-10.00
|
|||||||||||||||||||||||||||||
SDG&E: | |||||||||||||||||||||||||||||||||||
Discount rate | 3.44 | % | 4.29 | % | 3.64 | % | 3.55 | % | 4.30 | % | 3.65 | % | |||||||||||||||||||||||
Expected return on plan assets | 7.00 | 7.00 | 7.00 | 5.51 | 6.92 | 6.94 | |||||||||||||||||||||||||||||
Interest crediting rate(1)(2)
|
2.28 | 3.36 | 2.80 | 2.28 | 3.36 | 2.80 | |||||||||||||||||||||||||||||
Rate of compensation increase |
2.70-10.00
|
2.00-10.00
|
2.00-10.00
|
2.70-10.00
|
2.00-10.00
|
2.00-10.00
|
|||||||||||||||||||||||||||||
SoCalGas: | |||||||||||||||||||||||||||||||||||
Discount rate | 3.50 | % | 4.30 | % | 3.65 | % | 3.55 | % | 4.30 | % | 3.70 | % | |||||||||||||||||||||||
Expected return on plan assets | 7.00 | 7.00 | 7.00 | 4.41 | 6.38 | 6.38 | |||||||||||||||||||||||||||||
Interest crediting rate(1)(2)
|
2.28 | 3.36 | 2.80 | 2.28 | 3.36 | 2.80 | |||||||||||||||||||||||||||||
Rate of compensation increase |
2.70-10.00
|
2.00-10.00
|
2.00-10.00
|
2.70-10.00
|
2.00-10.00
|
2.00-10.00
|
ASSUMED HEALTH CARE COST TREND RATES | |||||||||||||||||||||||||||||||||||
AT DECEMBER 31 | |||||||||||||||||||||||||||||||||||
Other postretirement benefit plans | |||||||||||||||||||||||||||||||||||
Pre-65 retirees | Retirees aged 65 years and older | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 6.00 | % | 6.25 | % | 6.50 | % | 4.75 | % | 4.75 | % | 4.75 | % | |||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend) | 4.75 | % | 4.75 | % | 4.75 | % | 4.50 | % | 4.50 | % | 4.50 | % | |||||||||||||||||||||||
Year the rate reaches the ultimate trend | 2025 | 2025 | 2025 | 2022 | 2022 | 2022 |
FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF OTHER POSTRETIREMENT BENEFIT PLANS
|
|||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Fair value at December 31, 2020
|
|||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
SDG&E: | |||||||||||||||||
Equity securities: | |||||||||||||||||
Domestic | $ | 17 | $ | — | $ | 17 | |||||||||||
International | 11 | — | 11 | ||||||||||||||
Registered investment companies | 80 | — | 80 | ||||||||||||||
Fixed income securities: | |||||||||||||||||
Domestic government and government agencies | 38 | 2 | 40 | ||||||||||||||
Domestic corporate bonds | — | 8 | 8 | ||||||||||||||
International corporate bonds | — | 1 | 1 | ||||||||||||||
Registered investment companies | — | 7 | 7 | ||||||||||||||
Total investment assets in the fair value hierarchy | 146 | 18 | 164 | ||||||||||||||
Accounts receivable/payable, net | (2) | ||||||||||||||||
Investments measured at NAV – Common/collective trusts | 51 | ||||||||||||||||
Total investment assets | 213 | ||||||||||||||||
SoCalGas: | |||||||||||||||||
Cash and cash equivalents | 1 | — | 1 | ||||||||||||||
Equity securities: | |||||||||||||||||
Domestic | 76 | — | 76 | ||||||||||||||
International | 46 | — | 46 | ||||||||||||||
Registered investment companies | 61 | — | 61 | ||||||||||||||
Fixed income securities: | |||||||||||||||||
Domestic government and government agencies | 273 | 25 | 298 | ||||||||||||||
International government bonds | 1 | 14 | 15 | ||||||||||||||
Domestic corporate bonds | — | 349 | 349 | ||||||||||||||
International corporate bonds | — | 42 | 42 | ||||||||||||||
Registered investment companies | — | 81 | 81 | ||||||||||||||
Derivative financial instruments | 1 | — | 1 | ||||||||||||||
Total investment assets in the fair value hierarchy | 459 | 511 | 970 | ||||||||||||||
Investments measured at NAV: | |||||||||||||||||
Common/collective trusts | 188 | ||||||||||||||||
Venture capital funds and real estate funds | 1 | ||||||||||||||||
Total investment assets | 1,159 | ||||||||||||||||
Other Sempra Energy: | |||||||||||||||||
Equity securities: | |||||||||||||||||
Domestic | 10 | — | 10 | ||||||||||||||
International | 6 | — | 6 | ||||||||||||||
Registered investment companies | 1 | — | 1 | ||||||||||||||
Fixed income securities: | |||||||||||||||||
Domestic government and government agencies | 2 | — | 2 | ||||||||||||||
Domestic corporate bonds | — | 4 | 4 | ||||||||||||||
International corporate bonds | — | 1 | 1 | ||||||||||||||
Registered investment companies | — | (1) | (1) | ||||||||||||||
Total investment assets in the fair value hierarchy | 19 | 4 | 23 | ||||||||||||||
Investments measured at NAV – Common/collective trusts | 4 | ||||||||||||||||
Total other Sempra Energy investment assets | 27 | ||||||||||||||||
Total Sempra Energy Consolidated investment assets in the fair value hierarchy | $ | 624 | $ | 533 | |||||||||||||
Total Sempra Energy Consolidated investment assets | $ | 1,399 |
FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF OTHER POSTRETIREMENT BENEFIT PLANS
|
|||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Fair value at December 31, 2019
|
|||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
SDG&E: | |||||||||||||||||
Equity securities: | |||||||||||||||||
Domestic | $ | 21 | $ | — | $ | 21 | |||||||||||
International | 13 | — | 13 | ||||||||||||||
Registered investment companies | 68 | — | 68 | ||||||||||||||
Fixed income securities: | |||||||||||||||||
Domestic government and government agencies | 32 | 1 | 33 | ||||||||||||||
Domestic corporate bonds | — | 8 | 8 | ||||||||||||||
International corporate bonds | — | 1 | 1 | ||||||||||||||
Registered investment companies | — | 8 | 8 | ||||||||||||||
Total investment assets in the fair value hierarchy | 134 | 18 | 152 | ||||||||||||||
Accounts receivable/payable, net | (2) | ||||||||||||||||
Investments measured at NAV – Common/collective trusts | 47 | ||||||||||||||||
Total investment assets | 197 | ||||||||||||||||
SoCalGas: | |||||||||||||||||
Cash and cash equivalents | 3 | — | 3 | ||||||||||||||
Equity securities: | |||||||||||||||||
Domestic | 78 | — | 78 | ||||||||||||||
International | 48 | — | 48 | ||||||||||||||
Registered investment companies | 52 | — | 52 | ||||||||||||||
Fixed income securities: | |||||||||||||||||
Domestic government and government agencies | 267 | 21 | 288 | ||||||||||||||
International government bonds | 1 | 10 | 11 | ||||||||||||||
Domestic corporate bonds | — | 309 | 309 | ||||||||||||||
International corporate bonds | — | 40 | 40 | ||||||||||||||
Registered investment companies | — | 75 | 75 | ||||||||||||||
Derivative financial instruments | 3 | — | 3 | ||||||||||||||
Total investment assets in the fair value hierarchy | 452 | 455 | 907 | ||||||||||||||
Accounts receivable/payable, net | (5) | ||||||||||||||||
Investments measured at NAV – Common/collective trusts | 157 | ||||||||||||||||
Total investment assets | 1,059 | ||||||||||||||||
Other Sempra Energy: | |||||||||||||||||
Equity securities: | |||||||||||||||||
Domestic | 9 | — | 9 | ||||||||||||||
International | 4 | — | 4 | ||||||||||||||
Fixed income securities: | |||||||||||||||||
Domestic government and government agencies | 3 | 1 | 4 | ||||||||||||||
Domestic corporate bonds | — | 3 | 3 | ||||||||||||||
International corporate bonds | — | 1 | 1 | ||||||||||||||
Total investment assets in the fair value hierarchy | 16 | 5 | 21 | ||||||||||||||
Investments measured at NAV – Common/collective trusts | 4 | ||||||||||||||||
Total other Sempra Energy investment assets | 25 | ||||||||||||||||
Total Sempra Energy Consolidated investment assets in the fair value hierarchy | $ | 602 | $ | 478 | |||||||||||||
Total Sempra Energy Consolidated investment assets | $ | 1,281 |
EXPECTED CONTRIBUTIONS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||
Pension plans | $ | 246 | $ | 53 | $ | 157 | |||||||||||
Other postretirement benefit plans | 5 | 1 | 1 |
EXPECTED BENEFIT PAYMENTS | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||||||||||||||||||||
Pension benefits | Other postretirement benefits | Pension benefits | Other postretirement benefits | Pension benefits | Other postretirement benefits | ||||||||||||||||||||||||||||||
2021 | $ | 389 | $ | 47 | $ | 112 | $ | 10 | $ | 226 | $ | 34 | |||||||||||||||||||||||
2022 | 268 | 47 | 68 | 10 | 172 | 34 | |||||||||||||||||||||||||||||
2023 | 255 | 48 | 65 | 10 | 166 | 35 | |||||||||||||||||||||||||||||
2024 | 246 | 48 | 61 | 10 | 159 | 35 | |||||||||||||||||||||||||||||
2025 | 239 | 47 | 60 | 10 | 157 | 35 | |||||||||||||||||||||||||||||
2026-2030 | 1,130 | 235 | 263 | 47 | 752 | 172 |
EMPLOYER CONTRIBUTIONS TO SAVINGS PLANS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated | $ | 47 | $ | 44 | $ | 43 | |||||||||||
SDG&E | 16 | 15 | 15 | ||||||||||||||
SoCalGas | 25 | 24 | 23 |
SHARE-BASED COMPENSATION EXPENSE | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||
Share-based compensation expense, before income taxes(1)
|
$ | 62 | $ | 66 | $ | 76 | |||||||||||
Income tax benefit(1)
|
(17) | (18) | (21) | ||||||||||||||
$ | 45 | $ | 48 | $ | 55 | ||||||||||||
Capitalized share-based compensation cost | $ | 11 | $ | 11 | $ | 10 | |||||||||||
Excess income tax deficiency | $ | 19 | $ | 4 | $ | 15 | |||||||||||
SDG&E: | |||||||||||||||||
Share-based compensation expense, before income taxes | $ | 11 | $ | 10 | $ | 12 | |||||||||||
Income tax benefit | (3) | (3) | (3) | ||||||||||||||
$ | 8 | $ | 7 | $ | 9 | ||||||||||||
Capitalized share-based compensation cost | $ | 7 | $ | 6 | $ | 6 | |||||||||||
Excess income tax deficiency | $ | 3 | $ | 1 | $ | 3 | |||||||||||
SoCalGas: | |||||||||||||||||
Share-based compensation expense, before income taxes | $ | 14 | $ | 15 | $ | 16 | |||||||||||
Income tax benefit | (4) | (4) | (5) | ||||||||||||||
$ | 10 | $ | 11 | $ | 11 | ||||||||||||
Capitalized share-based compensation cost | $ | 4 | $ | 5 | $ | 4 | |||||||||||
Excess income tax deficiency | $ | 3 | $ | 1 | $ | 2 |
KEY ASSUMPTIONS FOR STOCK OPTIONS GRANTED | |||||||||||
Years ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Stock price volatility | 18.78 | % | 18.63 | % | |||||||
Expected term | 5.34 years | 5.34 years | |||||||||
Risk-free rate of return | 1.68 | % | 2.49 | % | |||||||
Annual dividend yield | 2.60 | % | 3.35 | % |
NONQUALIFIED STOCK OPTIONS | |||||||||||||||||||||||
Common shares under options | Weighted- average exercise price | Weighted- average remaining contractual term (in years) | Aggregate intrinsic value (in millions) | ||||||||||||||||||||
Outstanding at January 1, 2020 | 247,577 | $ | 105.86 | ||||||||||||||||||||
Granted | 154,860 | $ | 149.12 | ||||||||||||||||||||
Exercised | (4,400) | $ | 55.90 | ||||||||||||||||||||
Forfeited/canceled | (32,642) | $ | 149.12 | ||||||||||||||||||||
Outstanding at December 31, 2020 | 365,395 | $ | 120.93 | 8.34 | $ | 2 | |||||||||||||||||
Vested or expected to vest at December 31, 2020 | 349,596 | $ | 120.28 | 8.32 | $ | 2 | |||||||||||||||||
Exercisable at December 31, 2020 | 81,061 | $ | 106.76 | 8.00 | $ | 2 |
KEY ASSUMPTIONS FOR RSUs GRANTED | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Stock price volatility | 16.35 | % | 17.74 | % | 17.46 | % | |||||||||||
Risk-free rate of return | 1.55 | % | 2.46 | % | 2.00 | % |
RESTRICTED STOCK UNITS | |||||||||||||||||||||||
Performance-based
restricted stock units
|
Service-based
restricted stock units
|
||||||||||||||||||||||
Units |
Weighted- average
grant-date
fair value
|
Units |
Weighted- average
grant-date
fair value
|
||||||||||||||||||||
Nonvested at January 1, 2020 | 1,086,981 | $ | 109.85 | 415,787 | $ | 119.96 | |||||||||||||||||
Granted | 265,236 | $ | 155.62 | 165,847 | $ | 138.91 | |||||||||||||||||
Vested | (403,302) | $ | 110.45 | (230,612) | $ | 112.11 | |||||||||||||||||
Forfeited | (54,954) | $ | 134.90 | (7,445) | $ | 140.18 | |||||||||||||||||
Nonvested at December 31, 2020(1)
|
893,961 | $ | 121.61 | 343,577 | $ | 121.59 | |||||||||||||||||
Expected to vest at December 31, 2020 | 882,903 | $ | 121.45 | 339,025 | $ | 121.46 |
NET ENERGY DERIVATIVE VOLUMES | |||||||||||||||||
(Quantities in millions) | |||||||||||||||||
December 31, | |||||||||||||||||
Commodity | Unit of measure | 2020 | 2019 | ||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||
Natural gas | MMBtu | 5 | 32 | ||||||||||||||
Electricity | MWh | 1 | 2 | ||||||||||||||
Congestion revenue rights | MWh | 43 | 48 | ||||||||||||||
SDG&E: | |||||||||||||||||
Natural gas | MMBtu | 16 | 37 | ||||||||||||||
Electricity | MWh | 1 | 2 | ||||||||||||||
Congestion revenue rights | MWh | 43 | 48 | ||||||||||||||
SoCalGas: | |||||||||||||||||
Natural gas | MMBtu | 1 | 2 | ||||||||||||||
INTEREST RATE DERIVATIVES | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Notional debt | Maturities | Notional debt | Maturities | ||||||||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||||||||
Cash flow hedges | $ | 1,486 | 2021-2034 | $ | 1,445 | 2020-2034 | |||||||||||||||||
FOREIGN CURRENCY DERIVATIVES | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Notional amount | Maturities | Notional amount | Maturities | ||||||||||||||||||||
Sempra Energy Consolidated:
|
|||||||||||||||||||||||
Cross-currency swaps | $ | 306 | 2021-2023 | $ | 306 | 2020-2023 | |||||||||||||||||
Other foreign currency derivatives | 1,764 | 2021-2022 | 1,796 | 2020-2021 |
DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Other current
assets(1)
|
Other long-term assets |
Other current
liabilities
|
Deferred credits and other | ||||||||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Interest rate and foreign exchange instruments | $ | — | $ | 1 | $ | (26) | $ | (160) | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Foreign exchange instruments | 24 | — | — | — | |||||||||||||||||||
Commodity contracts not subject to rate recovery | 82 | 17 | (95) | (16) | |||||||||||||||||||
Associated offsetting commodity contracts | (82) | (13) | 82 | 13 | |||||||||||||||||||
Commodity contracts subject to rate recovery | 35 | 95 | (35) | (25) | |||||||||||||||||||
Associated offsetting commodity contracts | (2) | — | 2 | — | |||||||||||||||||||
Net amounts presented on the balance sheet | 57 | 100 | (72) | (188) | |||||||||||||||||||
Additional cash collateral for commodity contracts
not subject to rate recovery
|
21 | — | — | — | |||||||||||||||||||
Additional cash collateral for commodity contracts
subject to rate recovery
|
30 | — | — | — | |||||||||||||||||||
Total(2)
|
$ | 108 | $ | 100 | $ | (72) | $ | (188) | |||||||||||||||
SDG&E: | |||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Commodity contracts subject to rate recovery | $ | 32 | $ | 95 | $ | (28) | $ | (25) | |||||||||||||||
Associated offsetting commodity contracts | (1) | — | 1 | — | |||||||||||||||||||
Net amounts presented on the balance sheet | 31 | 95 | (27) | (25) | |||||||||||||||||||
Additional cash collateral for commodity contracts
subject to rate recovery
|
24 | — | — | — | |||||||||||||||||||
Total(2)
|
$ | 55 | $ | 95 | $ | (27) | $ | (25) | |||||||||||||||
SoCalGas: | |||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Commodity contracts subject to rate recovery | $ | 3 | $ | — | $ | (7) | $ | — | |||||||||||||||
Associated offsetting commodity contracts | (1) | — | 1 | — | |||||||||||||||||||
Net amounts presented on the balance sheet | 2 | — | (6) | — | |||||||||||||||||||
Additional cash collateral for commodity contracts
subject to rate recovery
|
6 | — | — | — | |||||||||||||||||||
Total | $ | 8 | $ | — | $ | (6) | $ | — |
DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Other current
assets(1) |
Other long-term assets |
Other current
liabilities |
Deferred credits and other | ||||||||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Interest rate and foreign exchange instruments | $ | — | $ | 3 | $ | (17) | $ | (140) | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Foreign exchange instruments | 41 | — | (20) | — | |||||||||||||||||||
Associated offsetting foreign exchange instruments | (20) | — | 20 | — | |||||||||||||||||||
Commodity contracts not subject to rate recovery | 34 | 11 | (41) | (10) | |||||||||||||||||||
Associated offsetting commodity contracts | (32) | (2) | 32 | 2 | |||||||||||||||||||
Commodity contracts subject to rate recovery | 41 | 76 | (47) | (47) | |||||||||||||||||||
Associated offsetting commodity contracts | (6) | (3) | 6 | 3 | |||||||||||||||||||
Associated offsetting cash collateral | — | — | 14 | — | |||||||||||||||||||
Net amounts presented on the balance sheet | 58 | 85 | (53) | (192) | |||||||||||||||||||
Additional cash collateral for commodity contracts
not subject to rate recovery
|
43 | — | — | — | |||||||||||||||||||
Additional cash collateral for commodity contracts
subject to rate recovery
|
25 | — | — | — | |||||||||||||||||||
Total(2)
|
$ | 126 | $ | 85 | $ | (53) | $ | (192) | |||||||||||||||
SDG&E: | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Commodity contracts subject to rate recovery | 30 | 76 | (41) | (47) | |||||||||||||||||||
Associated offsetting commodity contracts | (4) | (3) | 4 | 3 | |||||||||||||||||||
Associated offsetting cash collateral | — | — | 14 | — | |||||||||||||||||||
Net amounts presented on the balance sheet | 26 | 73 | (23) | (44) | |||||||||||||||||||
Additional cash collateral for commodity contracts
subject to rate recovery
|
16 | — | — | — | |||||||||||||||||||
Total(2)
|
$ | 42 | $ | 73 | $ | (23) | $ | (44) | |||||||||||||||
SoCalGas: | |||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Commodity contracts subject to rate recovery | $ | 11 | $ | — | $ | (6) | $ | — | |||||||||||||||
Associated offsetting commodity contracts | (2) | — | 2 | — | |||||||||||||||||||
Net amounts presented on the balance sheet | 9 | — | (4) | — | |||||||||||||||||||
Additional cash collateral for commodity contracts
subject to rate recovery
|
9 | — | — | — | |||||||||||||||||||
Total | $ | 18 | $ | — | $ | (4) | $ | — |
UNDESIGNATED DERIVATIVE IMPACTS | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Pretax gain (loss) on derivatives recognized in earnings | ||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||
Location | 2020 | 2019 | 2018 | |||||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||||
Commodity contracts not subject
to rate recovery
|
Revenues: Energy-Related
Businesses
|
$ | 17 | $ | 12 | $ | 26 | |||||||||||||
Commodity contracts subject
to rate recovery
|
Cost of Natural Gas | (7) | 3 | 5 | ||||||||||||||||
Commodity contracts subject
to rate recovery
|
Cost of Electric Fuel
and Purchased Power
|
88 | (140) | 279 | ||||||||||||||||
Foreign exchange instruments | Other (Expense) Income, Net | (56) | 25 | 3 | ||||||||||||||||
Total | $ | 42 | $ | (100) | $ | 313 | ||||||||||||||
SDG&E: | ||||||||||||||||||||
Commodity contracts subject
to rate recovery
|
Cost of Electric Fuel
and Purchased Power
|
$ | 88 | $ | (140) | $ | 279 | |||||||||||||
SoCalGas: | ||||||||||||||||||||
Commodity contracts subject
to rate recovery
|
Cost of Natural Gas | $ | (7) | $ | 3 | $ | 5 |
RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
|
|||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Fair value at December 31, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Nuclear decommissioning trusts:
|
|||||||||||||||||||||||
Equity securities
|
$ | 358 | $ | 6 | $ | — | $ | 364 | |||||||||||||||
Debt securities:
|
|||||||||||||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies
|
41 | 24 | — | 65 | |||||||||||||||||||
Municipal bonds
|
— | 326 | — | 326 | |||||||||||||||||||
Other securities
|
— | 270 | — | 270 | |||||||||||||||||||
Total debt securities
|
41 | 620 | — | 661 | |||||||||||||||||||
Total nuclear decommissioning trusts(1)
|
399 | 626 | — | 1,025 | |||||||||||||||||||
Interest rate and foreign exchange instruments
|
— | 25 | — | 25 | |||||||||||||||||||
Commodity contracts not subject to rate recovery
|
— | 4 | — | 4 | |||||||||||||||||||
Effect of netting and allocation of collateral(2)
|
21 | — | — | 21 | |||||||||||||||||||
Commodity contracts subject to rate recovery
|
6 | 1 | 121 | 128 | |||||||||||||||||||
Effect of netting and allocation of collateral(2)
|
19 | 5 | 6 | 30 | |||||||||||||||||||
Support Agreement, net of related guarantee fees | — | — | 7 | 7 | |||||||||||||||||||
Total | $ | 445 | $ | 661 | $ | 134 | $ | 1,240 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest rate and foreign exchange instruments
|
$ | — | $ | 186 | $ | — | $ | 186 | |||||||||||||||
Commodity contracts not subject to rate recovery
|
— | 16 | — | 16 | |||||||||||||||||||
Commodity contracts subject to rate recovery
|
— | 6 | 52 | 58 | |||||||||||||||||||
Support Agreement, net of related guarantee fees | — | — | 4 | 4 | |||||||||||||||||||
Total | $ | — | $ | 208 | $ | 56 | $ | 264 | |||||||||||||||
Fair value at December 31, 2019 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Nuclear decommissioning trusts:
|
|||||||||||||||||||||||
Equity securities
|
$ | 503 | $ | 6 | $ | — | $ | 509 | |||||||||||||||
Debt securities:
|
|||||||||||||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies
|
46 | 11 | — | 57 | |||||||||||||||||||
Municipal bonds
|
— | 282 | — | 282 | |||||||||||||||||||
Other securities
|
— | 226 | — | 226 | |||||||||||||||||||
Total debt securities
|
46 | 519 | — | 565 | |||||||||||||||||||
Total nuclear decommissioning trusts(1)
|
549 | 525 | — | 1,074 | |||||||||||||||||||
Interest rate and foreign exchange instruments
|
— | 24 | — | 24 | |||||||||||||||||||
Commodity contracts not subject to rate recovery
|
— | 11 | — | 11 | |||||||||||||||||||
Effect of netting and allocation of collateral(2)
|
43 | — | — | 43 | |||||||||||||||||||
Commodity contracts subject to rate recovery
|
5 | 8 | 95 | 108 | |||||||||||||||||||
Effect of netting and allocation of collateral(2)
|
11 | 8 | 6 | 25 | |||||||||||||||||||
Total | $ | 608 | $ | 576 | $ | 101 | $ | 1,285 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest rate and foreign exchange instruments
|
$ | — | $ | 157 | $ | — | $ | 157 | |||||||||||||||
Commodity contracts not subject to rate recovery
|
— | 17 | — | 17 | |||||||||||||||||||
Commodity contracts subject to rate recovery
|
14 | 4 | 67 | 85 | |||||||||||||||||||
Effect of netting and allocation of collateral(2)
|
(14) | — | — | (14) | |||||||||||||||||||
Total | $ | — | $ | 178 | $ | 67 | $ | 245 |
RECURRING FAIR VALUE MEASURES – SDG&E
|
|||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Fair value at December 31, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Nuclear decommissioning trusts:
|
|||||||||||||||||||||||
Equity securities
|
$ | 358 | $ | 6 | $ | — | $ | 364 | |||||||||||||||
Debt securities:
|
|||||||||||||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies
|
41 | 24 | — | 65 | |||||||||||||||||||
Municipal bonds
|
— | 326 | — | 326 | |||||||||||||||||||
Other securities
|
— | 270 | — | 270 | |||||||||||||||||||
Total debt securities
|
41 | 620 | — | 661 | |||||||||||||||||||
Total nuclear decommissioning trusts(1)
|
399 | 626 | — | 1,025 | |||||||||||||||||||
Commodity contracts subject to rate recovery
|
5 | — | 121 | 126 | |||||||||||||||||||
Effect of netting and allocation of collateral(2)
|
18 | — | 6 | 24 | |||||||||||||||||||
Total | $ | 422 | $ | 626 | $ | 127 | $ | 1,175 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Commodity contracts subject to rate recovery
|
$ | — | $ | — | $ | 52 | $ | 52 | |||||||||||||||
Total | $ | — | $ | — | $ | 52 | $ | 52 | |||||||||||||||
Fair value at December 31, 2019 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Nuclear decommissioning trusts:
|
|||||||||||||||||||||||
Equity securities
|
$ | 503 | $ | 6 | $ | — | $ | 509 | |||||||||||||||
Debt securities:
|
|||||||||||||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies
|
46 | 11 | — | 57 | |||||||||||||||||||
Municipal bonds
|
— | 282 | — | 282 | |||||||||||||||||||
Other securities
|
— | 226 | — | 226 | |||||||||||||||||||
Total debt securities
|
46 | 519 | — | 565 | |||||||||||||||||||
Total nuclear decommissioning trusts(1)
|
549 | 525 | — | 1,074 | |||||||||||||||||||
Commodity contracts subject to rate recovery
|
1 | 3 | 95 | 99 | |||||||||||||||||||
Effect of netting and allocation of collateral(2)
|
10 | — | 6 | 16 | |||||||||||||||||||
Total | $ | 560 | $ | 528 | $ | 101 | $ | 1,189 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Commodity contracts subject to rate recovery
|
$ | 14 | $ | — | $ | 67 | $ | 81 | |||||||||||||||
Effect of netting and allocation of collateral(2)
|
(14) | — | — | (14) | |||||||||||||||||||
Total | $ | — | $ | — | $ | 67 | $ | 67 |
RECURRING FAIR VALUE MEASURES – SOCALGAS
|
|||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Fair value at December 31, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Commodity contracts subject to rate recovery
|
$ | 1 | $ | 1 | $ | — | $ | 2 | |||||||||||||||
Effect of netting and allocation of collateral(1)
|
1 | 5 | — | 6 | |||||||||||||||||||
Total | $ | 2 | $ | 6 | $ | — | $ | 8 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Commodity contracts subject to rate recovery
|
$ | — | $ | 6 | $ | — | $ | 6 | |||||||||||||||
Total | $ | — | $ | 6 | $ | — | $ | 6 | |||||||||||||||
Fair value at December 31, 2019 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Commodity contracts subject to rate recovery
|
$ | 4 | $ | 5 | $ | — | $ | 9 | |||||||||||||||
Effect of netting and allocation of collateral(1)
|
1 | 8 | — | 9 | |||||||||||||||||||
Total | $ | 5 | $ | 13 | $ | — | $ | 18 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Commodity contracts subject to rate recovery
|
$ | — | $ | 4 | $ | — | $ | 4 | |||||||||||||||
Total | $ | — | $ | 4 | $ | — | $ | 4 |
LEVEL 3 RECONCILIATIONS(1)
|
|||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Balance at January 1 | $ | 28 | $ | 179 | $ | (28) | |||||||||||
Realized and unrealized gains (losses) | 19 | (184) | 209 | ||||||||||||||
Allocated transmission instruments | 6 | 6 | 10 | ||||||||||||||
Settlements | 16 | 27 | (12) | ||||||||||||||
Balance at December 31 | $ | 69 | $ | 28 | $ | 179 | |||||||||||
Change in unrealized gains (losses) relating to
instruments still held at December 31
|
$ | 34 | $ | (139) | $ | 183 |
CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS | |||||||||||||||||||||||
Settlement year | Price per MWh | Median price per MWh | |||||||||||||||||||||
2021 | $ | (1.81) | to | $ | 14.11 | $ | (0.12) | ||||||||||||||||
2020 | (3.77) | to | 6.03 | (1.58) | |||||||||||||||||||
2019 | (8.57) | to | 35.21 | (2.94) |
LONG-TERM, FIXED-PRICE ELECTRICITY POSITIONS PRICE INPUTS | |||||||||||||||||||||||
Settlement year | Price per MWh | Weighted-average price per MWh | |||||||||||||||||||||
2020 | $ | 19.60 | to | $ | 78.10 | $ | 39.71 | ||||||||||||||||
2019 | 21.00 | to | 61.15 | 37.92 |
LEVEL 3 RECONCILIATION | |||||||||||
(Dollars in millions) | |||||||||||
Year ended
December 31, 2020 |
|||||||||||
Balance at January 1 | $ | — | |||||||||
Realized and unrealized gains(1)
|
6 | ||||||||||
Settlements | (3) | ||||||||||
Balance at December 31(2)
|
$ | 3 | |||||||||
Change in unrealized gains (losses) relating to instruments still held at December 31 | $ | 3 | |||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Carrying | Fair value | ||||||||||||||||||||||||||||
amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||||||||||||||
Long-term amounts due from unconsolidated affiliates(1)
|
$ | 786 | $ | — | $ | 817 | $ | — | $ | 817 | |||||||||||||||||||
Long-term amounts due to unconsolidated affiliates
|
275 | — | 266 | — | 266 | ||||||||||||||||||||||||
Total long-term debt(2)
|
22,259 | — | 25,478 | — | 25,478 | ||||||||||||||||||||||||
SDG&E: | |||||||||||||||||||||||||||||
Total long-term debt(3)
|
$ | 6,253 | $ | — | $ | 7,384 | $ | — | $ | 7,384 | |||||||||||||||||||
SoCalGas: | |||||||||||||||||||||||||||||
Total long-term debt(4)
|
$ | 4,759 | $ | — | $ | 5,655 | $ | — | $ | 5,655 | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Carrying | Fair value | ||||||||||||||||||||||||||||
amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Sempra Energy Consolidated: | |||||||||||||||||||||||||||||
Long-term amounts due from unconsolidated affiliates
|
$ | 742 | $ | — | $ | 759 | $ | — | $ | 759 | |||||||||||||||||||
Long-term amounts due to unconsolidated affiliates
|
195 | — | 184 | — | 184 | ||||||||||||||||||||||||
Total long-term debt(2)
|
21,247 | — | 22,638 | 26 | 22,664 | ||||||||||||||||||||||||
SDG&E: | |||||||||||||||||||||||||||||
Total long-term debt(3)
|
$ | 5,140 | $ | — | $ | 5,662 | $ | — | $ | 5,662 | |||||||||||||||||||
SoCalGas: | |||||||||||||||||||||||||||||
Total long-term debt(4)
|
$ | 3,809 | $ | — | $ | 4,189 | $ | — | $ | 4,189 |
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 | Market approach | Level 2 | 100% | Assets’ sales prices | 100% | ||||||||||||||||||||||||||||||
Non-utility natural gas storage assets | June 25, 2018 | $ | 190 | Discounted cash flows | Level 3 | 100% | Storage rates per dekatherm per month |
$0.06 - $0.22 $(0.10)
|
(1)
|
|||||||||||||||||||||||||||||
Discount rate
|
10% |
(2)
|
||||||||||||||||||||||||||||||||||||
Certain of our U.S. wind equity method investments | June 25, 2018 | $ | 145 | Discounted cash flows | Level 3 | 100% |
Contracted and observable merchant prices per MWh
|
$29 - $92
|
(1)
|
|||||||||||||||||||||||||||||
Discount rate
|
8% - 10% (8.7%)
|
(2)
|
CONVERSION RATES | ||||||||
Applicable market value per share of
our common stock |
Conversion rate (number of shares of our common stock to be received upon conversion of each share of series B preferred stock) | |||||||
Series B preferred stock | ||||||||
Greater than $136.50 (which is the threshold appreciation price)
|
0.7326 shares (approximately equal to $100.00 divided by the threshold appreciation price)
|
|||||||
Equal to or less than $136.50 but greater than or equal to $113.75
|
Between 0.7326 and 0.8791 shares, determined by dividing $100.00 by the applicable market value of our common stock
|
|||||||
Less than $113.75 (which is the initial price)
|
0.8791 shares (approximately equal to $100.00 divided by the initial price)
|
PREFERRED STOCK OUTSTANDING | |||||||||||
(Dollars in millions, except per share amounts) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
$25 par value, authorized 1,000,000 shares:
|
|||||||||||
6% Series, 79,011 shares outstanding
|
$ | 3 | $ | 3 | |||||||
6% Series A, 783,032 shares outstanding
|
19 | 19 | |||||||||
SoCalGas - Total preferred stock | 22 | 22 | |||||||||
Less: 50,970 shares of the 6% Series outstanding owned by PE
|
(2) | (2) | |||||||||
Sempra Energy - Total preferred stock of subsidiary | $ | 20 | $ | 20 |
EARNINGS PER COMMON SHARE COMPUTATIONS | |||||||||||||||||
(Dollars in millions, except per share amounts; shares in thousands) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Numerator for continuing operations: | |||||||||||||||||
Income from continuing operations, net of income tax | $ | 2,255 | $ | 1,999 | $ | 938 | |||||||||||
Earnings attributable to noncontrolling interests | (162) | (129) | (44) | ||||||||||||||
Preferred dividends | (168) | (142) | (125) | ||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||
Earnings from continuing operations attributable to common shares | $ | 1,924 | $ | 1,727 | $ | 768 | |||||||||||
Numerator for discontinued operations: | |||||||||||||||||
Income from discontinued operations, net of income tax | $ | 1,850 | $ | 363 | $ | 188 | |||||||||||
Earnings attributable to noncontrolling interests | (10) | (35) | (32) | ||||||||||||||
Earnings from discontinued operations attributable to common shares | $ | 1,840 | $ | 328 | $ | 156 | |||||||||||
Numerator for earnings: | |||||||||||||||||
Earnings attributable to common shares | $ | 3,764 | $ | 2,055 | $ | 924 | |||||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares outstanding for basic EPS(1)
|
291,077 | 277,904 | 268,072 | ||||||||||||||
Dilutive effect of stock options and RSUs(2)
|
1,175 | 1,585 | 919 | ||||||||||||||
Dilutive effect of common shares sold forward | — | 2,544 | 861 | ||||||||||||||
Weighted-average common shares outstanding for diluted EPS | 292,252 | 282,033 | 269,852 | ||||||||||||||
Basic EPS: | |||||||||||||||||
Earnings from continuing operations | $ | 6.61 | $ | 6.22 | $ | 2.86 | |||||||||||
Earnings from discontinued operations | $ | 6.32 | $ | 1.18 | $ | 0.59 | |||||||||||
Earnings | $ | 12.93 | $ | 7.40 | $ | 3.45 | |||||||||||
Diluted EPS: | |||||||||||||||||
Earnings from continuing operations | $ | 6.58 | $ | 6.13 | $ | 2.84 | |||||||||||
Earnings from discontinued operations | $ | 6.30 | $ | 1.16 | $ | 0.58 | |||||||||||
Earnings | $ | 12.88 | $ | 7.29 | $ | 3.42 |
COMMON STOCK ACTIVITY | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Common shares outstanding, January 1 | 291,712,925 | 273,769,513 | 251,358,977 | ||||||||||||||
Shares issued under forward sale agreements | — | 16,906,185 | 21,175,473 | ||||||||||||||
RSUs vesting(1)
|
896,839 | 463,012 | 509,042 | ||||||||||||||
Stock options exercised | 4,400 | 52,540 | 138,861 | ||||||||||||||
Savings plan issuance | 201,431 | 475,774 | 553,036 | ||||||||||||||
Common stock investment plan(2)
|
42,955 | 199,253 | 231,242 | ||||||||||||||
Issuance of RSUs held in our Deferred Compensation Plan | 103,552 | 59,470 | 3,357 | ||||||||||||||
Shares repurchased(3)
|
(4,491,858) | (212,822) | (200,475) | ||||||||||||||
Common shares outstanding, December 31 | 288,470,244 | 291,712,925 | 273,769,513 |
NUCLEAR DECOMMISSIONING TRUSTS | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Cost |
Gross
unrealized gains |
Gross
unrealized losses |
Estimated
fair value |
||||||||||||||||||||
At December 31, 2020: | |||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies(1)
|
$ | 64 | $ | 1 | $ | — | $ | 65 | |||||||||||||||
Municipal bonds(2)
|
308 | 18 | — | 326 | |||||||||||||||||||
Other securities(3)
|
253 | 17 | — | 270 | |||||||||||||||||||
Total debt securities | 625 | 36 | — | 661 | |||||||||||||||||||
Equity securities | 112 | 254 | (2) | 364 | |||||||||||||||||||
Cash and cash equivalents | 3 | — | — | 3 | |||||||||||||||||||
Receivables (payables), net | (9) | — | — | (9) | |||||||||||||||||||
Total | $ | 731 | $ | 290 | $ | (2) | $ | 1,019 | |||||||||||||||
At December 31, 2019: | |||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies
|
$ | 57 | $ | — | $ | — | $ | 57 | |||||||||||||||
Municipal bonds | 270 | 12 | — | 282 | |||||||||||||||||||
Other securities | 218 | 9 | (1) | 226 | |||||||||||||||||||
Total debt securities | 545 | 21 | (1) | 565 | |||||||||||||||||||
Equity securities | 176 | 339 | (6) | 509 | |||||||||||||||||||
Cash and cash equivalents | 16 | — | — | 16 | |||||||||||||||||||
Receivables (payables), net | (8) | — | — | (8) | |||||||||||||||||||
Total | $ | 729 | $ | 360 | $ | (7) | $ | 1,082 |
SALES OF SECURITIES IN THE NDT | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Proceeds from sales | $ | 1,439 | $ | 914 | $ | 890 | |||||||||||
Gross realized gains | 156 | 24 | 42 | ||||||||||||||
Gross realized losses | (17) | (5) | (10) |
LESSEE INFORMATION ON THE CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Right-of-use assets: | |||||||||||||||||||||||||||||||||||
Operating leases: | |||||||||||||||||||||||||||||||||||
Right-of-use assets
|
$ | 543 | $ | 591 | $ | 102 | $ | 130 | $ | 74 | $ | 94 | |||||||||||||||||||||||
Finance leases: | |||||||||||||||||||||||||||||||||||
Property, plant and equipment
|
1,429 | 1,353 | 1,356 | 1,326 | 73 | 27 | |||||||||||||||||||||||||||||
Accumulated depreciation
|
(99) | (64) | (80) | (57) | (19) | (7) | |||||||||||||||||||||||||||||
Property, plant and equipment, net
|
1,330 | 1,289 | 1,276 | 1,269 | 54 | 20 | |||||||||||||||||||||||||||||
Total right-of-use assets | $ | 1,873 | $ | 1,880 | $ | 1,378 | $ | 1,399 | $ | 128 | $ | 114 | |||||||||||||||||||||||
Lease liabilities: | |||||||||||||||||||||||||||||||||||
Operating leases: | |||||||||||||||||||||||||||||||||||
Other current liabilities
|
$ | 52 | $ | 52 | $ | 27 | $ | 27 | $ | 18 | $ | 18 | |||||||||||||||||||||||
Deferred credits and other
|
407 | 445 | 73 | 102 | 56 | 75 | |||||||||||||||||||||||||||||
459 | 497 | 100 | 129 | 74 | 93 | ||||||||||||||||||||||||||||||
Finance leases: | |||||||||||||||||||||||||||||||||||
Current portion of long-term debt and finance leases
|
36 | 26 | 26 | 20 | 10 | 6 | |||||||||||||||||||||||||||||
Long-term debt and finance leases
|
1,294 | 1,263 | 1,250 | 1,250 | 44 | 13 | |||||||||||||||||||||||||||||
1,330 | 1,289 | 1,276 | 1,270 | 54 | 19 | ||||||||||||||||||||||||||||||
Total lease liabilities | $ | 1,789 | $ | 1,786 | $ | 1,376 | $ | 1,399 | $ | 128 | $ | 112 | |||||||||||||||||||||||
Weighted-average remaining lease term (in years): | |||||||||||||||||||||||||||||||||||
Operating leases
|
13 | 13 | 6 | 6 | 5 | 6 | |||||||||||||||||||||||||||||
Finance leases
|
18 | 19 | 19 | 20 | 7 | 6 | |||||||||||||||||||||||||||||
Weighted-average discount rate: | |||||||||||||||||||||||||||||||||||
Operating leases | 5.81 | % | 6.01 | % | 3.62 | % | 3.55 | % | 2.03 | % | 3.73 | % | |||||||||||||||||||||||
Finance leases
|
14.45 | % | 14.76 | % | 14.65 | % | 14.83 | % | 2.83 | % | 3.23 | % |
LESSEE INFORMATION ON THE CONSOLIDATED STATEMENTS OF OPERATIONS(1)
|
|||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Operating lease costs | $ | 92 | $ | 96 | $ | 31 | $ | 33 | $ | 24 | $ | 27 | |||||||||||||||||||||||
Finance lease costs: | |||||||||||||||||||||||||||||||||||
Amortization of ROU assets(2)
|
35 | 24 | 23 | 18 | 12 | 6 | |||||||||||||||||||||||||||||
Interest on lease liabilities
|
188 | 173 | 186 | 173 | 2 | — | |||||||||||||||||||||||||||||
Total finance lease costs
|
223 | 197 | 209 | 191 | 14 | 6 | |||||||||||||||||||||||||||||
Short-term lease costs(3)
|
7 | 6 | 3 | 2 | — | — | |||||||||||||||||||||||||||||
Variable lease costs(3)
|
477 | 482 | 467 | 471 | 10 | 10 | |||||||||||||||||||||||||||||
Total lease costs
|
$ | 799 | $ | 781 | $ | 710 | $ | 697 | $ | 48 | $ | 43 |
LESSEE INFORMATION ON THE CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||||||||||||||||||||
Years ended December 31 | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||||||||||||||
Cash paid for operating leases
|
$ | 79 | $ | 101 | $ | 31 | $ | 33 | $ | 24 | $ | 27 | |||||||||||||||||||||||
Cash paid for finance leases
|
173 | 173 | 171 | 173 | 2 | — | |||||||||||||||||||||||||||||
Financing activities: | |||||||||||||||||||||||||||||||||||
Cash paid for finance leases
|
35 | 24 | 23 | 18 | 12 | 6 | |||||||||||||||||||||||||||||
Increase (decrease) in operating lease obligations for right-of-use assets
|
20 | 585 | (1) | 158 | 1 | 118 | |||||||||||||||||||||||||||||
Increase in finance lease obligations for investment in
PP&E
|
77 | 38 | 30 | 16 | 47 | 22 |
LESSEE MATURITY ANALYSIS OF LIABILITIES | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Sempra Energy Consolidated | SDG&E | SoCalGas | |||||||||||||||||||||||||||||||||
Operating leases |
Finance leases(1)
|
Operating leases |
Finance leases(1)
|
Operating leases | Finance leases | ||||||||||||||||||||||||||||||
2021 | $ | 73 | $ | 206 | $ | 30 | $ | 194 | $ | 19 | $ | 12 | |||||||||||||||||||||||
2022 | 64 | 203 | 22 | 194 | 17 | 9 | |||||||||||||||||||||||||||||
2023 | 55 | 203 | 17 | 194 | 13 | 9 | |||||||||||||||||||||||||||||
2024 | 51 | 198 | 15 | 189 | 11 | 9 | |||||||||||||||||||||||||||||
2025 | 40 | 193 | 5 | 185 | 9 | 8 | |||||||||||||||||||||||||||||
Thereafter | 415 | 2,465 | 22 | 2,453 | 8 | 12 | |||||||||||||||||||||||||||||
Total undiscounted lease payments
|
698 | 3,468 | 111 | 3,409 | 77 | 59 | |||||||||||||||||||||||||||||
Less: imputed interest | (239) | (2,138) | (11) | (2,133) | (3) | (5) | |||||||||||||||||||||||||||||
Total lease liabilities
|
459 | 1,330 | 100 | 1,276 | 74 | 54 | |||||||||||||||||||||||||||||
Less: current lease liabilities | (52) | (36) | (27) | (26) | (18) | (10) | |||||||||||||||||||||||||||||
Long-term lease liabilities
|
$ | 407 | $ | 1,294 | $ | 73 | $ | 1,250 | $ | 56 | $ | 44 |
RENT EXPENSE – OPERATING LEASES | |||||
(Dollars in millions) | |||||
Year ended December 31, 2018 | |||||
Sempra Energy Consolidated | $ | 122 | |||
SDG&E | 27 | ||||
SoCalGas | 41 |
LESSOR INFORMATION – SEMPRA ENERGY | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Assets subject to operating leases: | |||||||||||||||||
Property, plant and equipment(1)
|
$ | 1,092 | $ | 1,038 | |||||||||||||
Accumulated depreciation | (228) | (179) | |||||||||||||||
Property, plant and equipment, net
|
$ | 864 | $ | 859 | |||||||||||||
December 31, 2020 | |||||||||||||||||
Maturity analysis of operating lease payments: | |||||||||||||||||
2021 | $ | 207 | |||||||||||||||
2022 | 202 | ||||||||||||||||
2023 | 202 | ||||||||||||||||
2024 | 202 | ||||||||||||||||
2025 | 202 | ||||||||||||||||
Thereafter | 2,344 | ||||||||||||||||
Total undiscounted cash flows
|
$ | 3,359 |
LESSOR INFORMATION ON THE CONSOLIDATED STATEMENTS OF OPERATIONS – SEMPRA ENERGY
|
|||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Fixed lease payments | $ | 195 | $ | 200 | $ | 194 | |||||||||||
Variable lease payments | 1 | 6 | 72 | ||||||||||||||
Total revenues from operating leases(1)
|
$ | 196 | $ | 206 | $ | 266 | |||||||||||
Depreciation expense | $ | 39 | $ | 38 | $ | 72 |
FUTURE MINIMUM PAYMENTS – SEMPRA ENERGY CONSOLIDATED | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Storage and
transportation |
Natural gas(1)
|
Total(1)
|
|||||||||||||||
2021 | $ | 216 | $ | 61 | $ | 277 | |||||||||||
2022 | 203 | 13 | 216 | ||||||||||||||
2023 | 189 | 12 | 201 | ||||||||||||||
2024 | 166 | 12 | 178 | ||||||||||||||
2025 | 131 | 6 | 137 | ||||||||||||||
Thereafter | 1,014 | — | 1,014 | ||||||||||||||
Total minimum payments | $ | 1,919 | $ | 104 | $ | 2,023 |
FUTURE MINIMUM PAYMENTS – SOCALGAS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Transportation | Natural gas | Total | |||||||||||||||
2021 | $ | 134 | $ | 41 | $ | 175 | |||||||||||
2022 | 126 | — | 126 | ||||||||||||||
2023 | 123 | — | 123 | ||||||||||||||
2024 | 103 | — | 103 | ||||||||||||||
2025 | 68 | — | 68 | ||||||||||||||
Thereafter | 359 | — | 359 | ||||||||||||||
Total minimum payments | $ | 913 | $ | 41 | $ | 954 |
PAYMENTS UNDER NATURAL GAS CONTRACTS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated | $ | 989 | $ | 1,326 | $ | 1,345 | |||||||||||
SoCalGas | 935 | 1,181 | 1,169 |
LNG COMMITMENT AMOUNTS | |||||
(Dollars in millions) | |||||
2021 | $ | 320 | |||
2022 | 422 | ||||
2023 | 389 | ||||
2024 | 386 | ||||
2025 | 390 | ||||
Thereafter | 1,452 | ||||
Total | $ | 3,359 |
FUTURE MINIMUM PAYMENTS – PURCHASED-POWER CONTRACTS | |||||
(Dollars in millions) | |||||
2021 | $ | 222 | |||
2022 | 208 | ||||
2023 | 173 | ||||
2024 | 145 | ||||
2025 | 88 | ||||
Thereafter | 794 | ||||
Total minimum payments(1)
|
$ | 1,630 |
CAPITAL EXPENDITURES FOR ENVIRONMENTAL ISSUES | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Sempra Energy Consolidated | $ | 76 | $ | 80 | $ | 100 | |||||||||||
SDG&E | 39 | 39 | 38 | ||||||||||||||
SoCalGas | 37 | 41 | 62 |
STATUS OF ENVIRONMENTAL SITES | |||||||||||
# Sites
complete(1)
|
# Sites
in process |
||||||||||
SDG&E: | |||||||||||
Manufactured-gas sites | 3 | — | |||||||||
Third-party waste-disposal sites | 2 | 1 | |||||||||
SoCalGas: | |||||||||||
Manufactured-gas sites | 39 | 3 | |||||||||
Third-party waste-disposal sites | 5 | 2 |
SEGMENT INFORMATION | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
REVENUES | |||||||||||||||||
SDG&E | $ | 5,313 | $ | 4,925 | $ | 4,568 | |||||||||||
SoCalGas | 4,748 | 4,525 | 3,962 | ||||||||||||||
Sempra Mexico | 1,256 | 1,375 | 1,376 | ||||||||||||||
Sempra LNG | 374 | 410 | 472 | ||||||||||||||
Sempra Renewables | — | 10 | 124 | ||||||||||||||
All other | 2 | 3 | — | ||||||||||||||
Adjustments and eliminations | (3) | (3) | (3) | ||||||||||||||
Intersegment revenues(1)
|
(320) | (416) | (397) | ||||||||||||||
Total | $ | 11,370 | $ | 10,829 | $ | 10,102 | |||||||||||
INTEREST EXPENSE | |||||||||||||||||
SDG&E(2)
|
$ | 413 | $ | 411 | $ | 221 | |||||||||||
SoCalGas | 158 | 141 | 115 | ||||||||||||||
Sempra Mexico | 132 | 119 | 120 | ||||||||||||||
Sempra LNG | 43 | 35 | 21 | ||||||||||||||
Sempra Renewables | — | 3 | 19 | ||||||||||||||
All other | 389 | 450 | 496 | ||||||||||||||
Intercompany eliminations | (54) | (82) | (106) | ||||||||||||||
Total | $ | 1,081 | $ | 1,077 | $ | 886 | |||||||||||
INTEREST INCOME | |||||||||||||||||
SDG&E | $ | 2 | $ | 4 | $ | 4 | |||||||||||
SoCalGas | 2 | 2 | 2 | ||||||||||||||
Sempra Mexico | 60 | 78 | 65 | ||||||||||||||
Sempra LNG | 81 | 61 | 49 | ||||||||||||||
Sempra Renewables | — | 11 | 12 | ||||||||||||||
All other | 7 | 4 | 14 | ||||||||||||||
Intercompany eliminations | (56) | (73) | (61) | ||||||||||||||
Total | $ | 96 | $ | 87 | $ | 85 | |||||||||||
DEPRECIATION AND AMORTIZATION | |||||||||||||||||
SDG&E | $ | 801 | $ | 760 | $ | 688 | |||||||||||
SoCalGas | 654 | 602 | 556 | ||||||||||||||
Sempra Mexico | 189 | 183 | 175 | ||||||||||||||
Sempra LNG | 9 | 10 | 26 | ||||||||||||||
Sempra Renewables | — | — | 27 | ||||||||||||||
All other | 13 | 14 | 19 | ||||||||||||||
Total | $ | 1,666 | $ | 1,569 | $ | 1,491 | |||||||||||
INCOME TAX EXPENSE (BENEFIT) | |||||||||||||||||
SDG&E | $ | 190 | $ | 171 | $ | 173 | |||||||||||
SoCalGas | 96 | 120 | 92 | ||||||||||||||
Sempra Texas Utilities | 1 | — | — | ||||||||||||||
Sempra Mexico | 57 | 227 | 185 | ||||||||||||||
Sempra LNG | 92 | (5) | (435) | ||||||||||||||
Sempra Renewables | — | 4 | 71 | ||||||||||||||
All other | (187) | (202) | (135) | ||||||||||||||
Total | $ | 249 | $ | 315 | $ | (49) |
SEGMENT INFORMATION (CONTINUED) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31 or at December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | |||||||||||||||||
SDG&E | $ | 824 | $ | 767 | $ | 669 | |||||||||||
SoCalGas | 504 | 641 | 400 | ||||||||||||||
Sempra Texas Utilities | 579 | 528 | 371 | ||||||||||||||
Sempra Mexico | 259 | 253 | 237 | ||||||||||||||
Sempra LNG | 320 | (6) | (617) | ||||||||||||||
Sempra Renewables | — | 59 | 328 | ||||||||||||||
Discontinued operations | 1,840 | 328 | 156 | ||||||||||||||
All other | (562) | (515) | (620) | ||||||||||||||
Total | $ | 3,764 | $ | 2,055 | $ | 924 | |||||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | |||||||||||||||||
SDG&E | $ | 1,942 | $ | 1,522 | $ | 1,542 | |||||||||||
SoCalGas | 1,843 | 1,439 | 1,538 | ||||||||||||||
Sempra Mexico | 611 | 624 | 368 | ||||||||||||||
Sempra LNG | 268 | 112 | 31 | ||||||||||||||
Sempra Renewables | — | 2 | 51 | ||||||||||||||
All other | 12 | 9 | 14 | ||||||||||||||
Total | $ | 4,676 | $ | 3,708 | $ | 3,544 | |||||||||||
ASSETS | |||||||||||||||||
SDG&E | $ | 22,311 | $ | 20,560 | $ | 19,225 | |||||||||||
SoCalGas | 18,460 | 17,077 | 15,389 | ||||||||||||||
Sempra Texas Utilities | 12,542 | 11,619 | 9,652 | ||||||||||||||
Sempra Mexico | 10,752 | 9,938 | 9,165 | ||||||||||||||
Sempra LNG | 2,205 | 3,901 | 4,060 | ||||||||||||||
Sempra Renewables | — | — | 2,549 | ||||||||||||||
Discontinued operations | — | 3,958 | 3,718 | ||||||||||||||
All other | 1,209 | 749 | 1,070 | ||||||||||||||
Intersegment receivables | (856) | (2,137) | (4,190) | ||||||||||||||
Total | $ | 66,623 | $ | 65,665 | $ | 60,638 | |||||||||||
GEOGRAPHIC INFORMATION | |||||||||||||||||
Long-lived assets(3):
|
|||||||||||||||||
United States | $ | 46,902 | $ | 43,719 | $ | 40,611 | |||||||||||
Mexico | 6,929 | 6,355 | 5,800 | ||||||||||||||
Total | $ | 53,831 | $ | 50,074 | $ | 46,411 | |||||||||||
Revenues(4):
|
|||||||||||||||||
United States | $ | 10,205 | $ | 9,574 | $ | 8,840 | |||||||||||
Mexico | 1,165 | 1,255 | 1,262 | ||||||||||||||
Total | $ | 11,370 | $ | 10,829 | $ | 10,102 |
SEMPRA ENERGY | |||||||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||||
Quarters ended | |||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||||||||
2020: | |||||||||||||||||||||||
Revenues | $ | 3,029 | $ | 2,526 | $ | 2,644 | $ | 3,171 | |||||||||||||||
Expenses and other income | $ | 2,632 | $ | 2,063 | $ | 2,443 | $ | 2,743 | |||||||||||||||
Income from continuing operations, net of income tax | $ | 867 | $ | 528 | $ | 428 | $ | 432 | |||||||||||||||
Income (loss) from discontinued operations, net of income tax | 80 | 1,777 | (7) | — | |||||||||||||||||||
Net income | $ | 947 | $ | 2,305 | $ | 421 | $ | 432 | |||||||||||||||
Earnings attributable to common shares | $ | 760 | $ | 2,239 | $ | 351 | $ | 414 | |||||||||||||||
Basic EPS(1):
|
|||||||||||||||||||||||
Earnings from continuing operations | $ | 2.35 | $ | 1.58 | $ | 1.23 | $ | 1.43 | |||||||||||||||
Earnings (losses) from discontinued operations | $ | 0.25 | $ | 6.06 | $ | (0.02) | $ | — | |||||||||||||||
Earnings | $ | 2.60 | $ | 7.64 | $ | 1.21 | $ | 1.43 | |||||||||||||||
Weighted-average common shares outstanding | 292.8 | 293.1 | 289.5 | 289.0 | |||||||||||||||||||
Diluted EPS(1):
|
|||||||||||||||||||||||
Earnings from continuing operations(2)
|
$ | 2.30 | $ | 1.58 | $ | 1.23 | $ | 1.43 | |||||||||||||||
Earnings (losses) from discontinued operations | $ | 0.23 | $ | 6.03 | $ | (0.02) | $ | — | |||||||||||||||
Earnings(2)
|
$ | 2.53 | $ | 7.61 | $ | 1.21 | $ | 1.43 | |||||||||||||||
Weighted-average common shares outstanding | 313.9 | 294.2 | 290.6 | 290.2 | |||||||||||||||||||
2019: | |||||||||||||||||||||||
Revenues | $ | 2,898 | $ | 2,230 | $ | 2,758 | $ | 2,943 | |||||||||||||||
Expenses and other income | $ | 2,397 | $ | 1,944 | $ | 2,310 | $ | 2,444 | |||||||||||||||
Income from continuing operations, net of income tax | $ | 560 | $ | 357 | $ | 653 | $ | 429 | |||||||||||||||
(Loss) income from discontinued operations, net of income tax | (42) | 78 | 256 | 71 | |||||||||||||||||||
Net income | $ | 518 | $ | 435 | $ | 909 | $ | 500 | |||||||||||||||
Earnings attributable to common shares | $ | 441 | $ | 354 | $ | 813 | $ | 447 | |||||||||||||||
Basic EPS(1):
|
|||||||||||||||||||||||
Earnings from continuing operations | $ | 1.79 | $ | 1.03 | $ | 2.04 | $ | 1.36 | |||||||||||||||
(Losses) earnings from discontinued operations | $ | (0.19) | $ | 0.26 | $ | 0.89 | $ | 0.21 | |||||||||||||||
Earnings | $ | 1.60 | $ | 1.29 | $ | 2.93 | $ | 1.57 | |||||||||||||||
Weighted-average common shares outstanding | 274.7 | 275.0 | 277.4 | 284.6 | |||||||||||||||||||
Diluted EPS(1):
|
|||||||||||||||||||||||
Earnings from continuing operations(2)
|
$ | 1.78 | $ | 1.01 | $ | 2.00 | $ | 1.34 | |||||||||||||||
(Losses) earnings from discontinued operations | $ | (0.19) | $ | 0.25 | $ | 0.84 | $ | 0.21 | |||||||||||||||
Earnings(2)
|
$ | 1.59 | $ | 1.26 | $ | 2.84 | $ | 1.55 | |||||||||||||||
Weighted-average common shares outstanding | 277.2 | 279.6 | 295.8 | 288.8 |
SDG&E | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Quarters ended | |||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||||||||
2020: | |||||||||||||||||||||||
Operating revenues | $ | 1,269 | $ | 1,235 | $ | 1,472 | $ | 1,337 | |||||||||||||||
Operating expenses | 880 | 887 | 1,157 | 1,016 | |||||||||||||||||||
Operating income | $ | 389 | $ | 348 | $ | 315 | $ | 321 | |||||||||||||||
Net income/Earnings attributable to common shares | $ | 262 | $ | 193 | $ | 178 | $ | 191 | |||||||||||||||
2019: | |||||||||||||||||||||||
Operating revenues | $ | 1,145 | $ | 1,094 | $ | 1,427 | $ | 1,259 | |||||||||||||||
Operating expenses | 883 | 831 | 1,004 | 894 | |||||||||||||||||||
Operating income | $ | 262 | $ | 263 | $ | 423 | $ | 365 | |||||||||||||||
Net income | $ | 177 | $ | 146 | $ | 266 | $ | 185 | |||||||||||||||
Earnings attributable to noncontrolling interest | (1) | (3) | (3) | — | |||||||||||||||||||
Earnings attributable to common shares | $ | 176 | $ | 143 | $ | 263 | $ | 185 |
SOCALGAS | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Quarters ended | |||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||||||||
2020: | |||||||||||||||||||||||
Operating revenues | $ | 1,395 | $ | 1,010 | $ | 842 | $ | 1,501 | |||||||||||||||
Operating expenses | 1,031 | 773 | 826 | 1,333 | |||||||||||||||||||
Operating income | $ | 364 | $ | 237 | $ | 16 | $ | 168 | |||||||||||||||
Net income (loss) | $ | 303 | $ | 147 | $ | (24) | $ | 79 | |||||||||||||||
Dividends on preferred stock | — | (1) | — | — | |||||||||||||||||||
Earnings (losses) attributable to common shares | $ | 303 | $ | 146 | $ | (24) | $ | 79 | |||||||||||||||
2019: | |||||||||||||||||||||||
Operating revenues | $ | 1,361 | $ | 806 | $ | 975 | $ | 1,383 | |||||||||||||||
Operating expenses | 1,060 | 747 | 762 | 1,000 | |||||||||||||||||||
Operating income | $ | 301 | $ | 59 | $ | 213 | $ | 383 | |||||||||||||||
Net income | $ | 264 | $ | 31 | $ | 143 | $ | 204 | |||||||||||||||
Dividends on preferred stock | — | (1) | — | — | |||||||||||||||||||
Earnings attributable to common shares | $ | 264 | $ | 30 | $ | 143 | $ | 204 |
SCHEDULE I – SEMPRA ENERGY
|
|||||
INDEX TO CONDENSED FINANCIAL INFORMATION OF PARENT
|
|||||
SEMPRA ENERGY | |||||||||||||||||
CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||||||
(Dollars in millions, except per share amounts; shares in thousands) | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Interest income | $ | 4 | $ | 3 | $ | 14 | |||||||||||
Interest expense | (495) | (521) | (495) | ||||||||||||||
Operating expenses | (86) | (124) | (82) | ||||||||||||||
Other (expense) income, net | (38) | 59 | (16) | ||||||||||||||
Income tax benefit | 176 | 163 | 154 | ||||||||||||||
Loss before equity in earnings of subsidiaries | (439) | (420) | (425) | ||||||||||||||
Equity in earnings of subsidiaries, net of income taxes | 4,371 | 2,617 | 1,474 | ||||||||||||||
Net income | 3,932 | 2,197 | 1,049 | ||||||||||||||
Preferred dividends | (168) | (142) | (125) | ||||||||||||||
Earnings | $ | 3,764 | $ | 2,055 | $ | 924 | |||||||||||
Basic EPS: | |||||||||||||||||
Earnings | $ | 12.93 | $ | 7.40 | $ | 3.45 | |||||||||||
Weighted-average common shares outstanding | 291,077 | 277,904 | 268,072 | ||||||||||||||
Diluted EPS: | |||||||||||||||||
Earnings | $ | 12.88 | $ | 7.29 | $ | 3.42 | |||||||||||
Weighted-average common shares outstanding | 292,252 | 282,033 | 269,852 |
SEMPRA ENERGY | |||||||||||||||||
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Years ended December 31, 2020, 2019 and 2018 | |||||||||||||||||
Pretax
amount |
Income tax
benefit (expense)
|
Net-of-tax
amount |
|||||||||||||||
2020: | |||||||||||||||||
Net income | $ | 3,756 | $ | 176 | $ | 3,932 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Foreign currency translation adjustments | 547 | — | 547 | ||||||||||||||
Financial instruments | (146) | 33 | (113) | ||||||||||||||
Pension and other postretirement benefits | 11 | 1 | 12 | ||||||||||||||
Total other comprehensive income | 412 | 34 | 446 | ||||||||||||||
Comprehensive income | $ | 4,168 | $ | 210 | $ | 4,378 | |||||||||||
2019: | |||||||||||||||||
Net income | $ | 2,034 | $ | 163 | $ | 2,197 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Foreign currency translation adjustments | (43) | — | (43) | ||||||||||||||
Financial instruments | (161) | 53 | (108) | ||||||||||||||
Pension and other postretirement benefits | 25 | (7) | 18 | ||||||||||||||
Total other comprehensive loss | (179) | 46 | (133) | ||||||||||||||
Comprehensive income | $ | 1,855 | $ | 209 | $ | 2,064 | |||||||||||
2018: | |||||||||||||||||
Net income | $ | 895 | $ | 154 | $ | 1,049 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Foreign currency translation adjustments | (144) | — | (144) | ||||||||||||||
Financial instruments | 64 | (21) | 43 | ||||||||||||||
Pension and other postretirement benefits | (38) | 4 | (34) | ||||||||||||||
Total other comprehensive loss | (118) | (17) | (135) | ||||||||||||||
Comprehensive income | $ | 777 | $ | 137 | $ | 914 |
SEMPRA ENERGY | |||||||||||
CONDENSED BALANCE SHEETS | |||||||||||
(Dollars in millions) | |||||||||||
December 31,
2020 |
December 31,
2019 |
||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 366 | $ | 6 | |||||||
Due from affiliates | 58 | 98 | |||||||||
Income taxes receivable, net | 42 | — | |||||||||
Other current assets | 26 | 34 | |||||||||
Total current assets | 492 | 138 | |||||||||
Investments in subsidiaries | 33,898 | 32,604 | |||||||||
Due from affiliates | 1 | 3 | |||||||||
Deferred income taxes | 2,187 | 1,766 | |||||||||
Other long-term assets | 717 | 682 | |||||||||
Total assets | $ | 37,295 | $ | 35,193 | |||||||
Liabilities and shareholders’ equity: | |||||||||||
Current portion of long-term debt | $ | 850 | $ | 1,399 | |||||||
Due to affiliates | 224 | 369 | |||||||||
Income taxes payable, net | — | 274 | |||||||||
Other current liabilities | 536 | 561 | |||||||||
Total current liabilities | 1,610 | 2,603 | |||||||||
Long-term debt | 7,317 | 8,856 | |||||||||
Due to affiliates | 4,375 | 3,138 | |||||||||
Other long-term liabilities | 620 | 667 | |||||||||
Commitments and contingencies (Note 4) | |||||||||||
Shareholders’ equity | 23,373 | 19,929 | |||||||||
Total liabilities and shareholders’ equity | $ | 37,295 | $ | 35,193 |
LONG-TERM DEBT | |||||||||||
(Dollars in millions) | |||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
2.4% Notes February 1, 2020
|
$ | — | $ | 500 | |||||||
2.4% Notes March 15, 2020
|
— | 500 | |||||||||
2.85% Notes November 15, 2020
|
— | 400 | |||||||||
Notes at variable rates (2.50% at December 31, 2019) January 15, 2021(1)
|
— | 700 | |||||||||
Notes at variable rates (3.069% after floating-to-fixed rate swaps effective 2019) March 15, 2021
|
850 | 850 | |||||||||
2.875% Notes October 1, 2022
|
500 | 500 | |||||||||
2.9% Notes February 1, 2023
|
500 | 500 | |||||||||
4.05% Notes December 1, 2023
|
500 | 500 | |||||||||
3.55% Notes June 15, 2024
|
500 | 500 | |||||||||
3.75% Notes November 15, 2025
|
350 | 350 | |||||||||
3.25% Notes June 15, 2027
|
750 | 750 | |||||||||
3.4% Notes February 1, 2028
|
1,000 | 1,000 | |||||||||
3.8% Notes February 1, 2038
|
1,000 | 1,000 | |||||||||
6% Notes October 15, 2039
|
750 | 750 | |||||||||
4% Notes February 1, 2048
|
800 | 800 | |||||||||
5.75% Junior Subordinated Notes July 1, 2079(1)
|
758 | 758 | |||||||||
8,258 | 10,358 | ||||||||||
Current portion of long-term debt | (850) | (1,399) | |||||||||
Unamortized discount on long-term debt | (32) | (35) | |||||||||
Unamortized debt issuance costs | (59) | (68) | |||||||||
Total long-term debt | $ | 7,317 | $ | 8,856 |
Applicable market value per share of
our common stock |
Conversion rate (number of shares of common stock to be received
upon conversion of each share of preferred stock) |
|||||||
Series A preferred stock
|
||||||||
Greater than $129.668 (which is the adjusted threshold appreciation price)
|
0.7712 shares (the minimum conversion rate, approximately equal to $100.00 divided by the adjusted threshold appreciation price)
|
|||||||
Equal to or less than $129.668 but greater than or equal to $105.8425
|
Between 0.7712 and 0.9448 shares, determined by dividing $100.00 by the applicable market value of our common stock
|
|||||||
Less than $105.8425 (which is the adjusted initial price)
|
0.9448 shares (approximately equal to $100.00 divided by the adjusted initial price)
|
|||||||
Series B preferred stock
|
||||||||
Greater than $136.50 (which is the threshold appreciation price)
|
0.7326 shares (the minimum conversion rate, approximately equal to $100.00 divided by the threshold appreciation price)
|
|||||||
Equal to or less than $136.50 but greater than or equal to $113.75
|
Between 0.7326 and 0.8791 shares, determined by dividing $100.00 by the applicable market value of our common stock
|
|||||||
Less than $113.75 (which is the initial price)
|
0.8791 shares (approximately equal to $100.00 divided by the initial price)
|
1.1 | |||||||||||
1.2 | |||||||||||
1.3 | |||||||||||
1.4 | |||||||||||
2.1 | |||||||||||
2.2 | |||||||||||
2.3 | |||||||||||
2.4 | |||||||||||
2.5 | |||||||||||
2.6 | |||||||||||
2.7 | |||||||||||
2.8 | |||||||||||
2.9 | |||||||||||
2.10 | |||||||||||
2.11 | |||||||||||
2.12 | |||||||||||
2.13 | |||||||||||
2.14 | |||||||||||
2.15 | |||||||||||
2.16 | |||||||||||
2.17 | |||||||||||
2.18 | |||||||||||
2.19 | |||||||||||
2.20 | |||||||||||
2.21 | |||||||||||
2.22 | |||||||||||
2.23 | |||||||||||
2.24 | |||||||||||
2.25 | |||||||||||
2.26 | |||||||||||
2.27 | |||||||||||
2.28 | |||||||||||
2.29 | |||||||||||
2.30 | |||||||||||
3.1 | |||||||||||
3.2 | |||||||||||
3.3 | |||||||||||
3.4 | |||||||||||
3.5 | |||||||||||
3.6 | |||||||||||
3.7 | |||||||||||
3.8 |
3.9 | |||||||||||
3.10 | |||||||||||
3.11 | |||||||||||
3.12 | |||||||||||
3.13 | |||||||||||
3.14 | |||||||||||
3.15 | |||||||||||
3.16 | |||||||||||
4.1 | |||||||||||
4.2 | |||||||||||
4.3 | |||||||||||
4.4 | |||||||||||
5.1 | |||||||||||
5.2 | |||||||||||
6.1 | |||||||||||
6.2 | |||||||||||
6.3 | |||||||||||
6.4 | |||||||||||
6.5 | |||||||||||
6.6 | |||||||||||
6.7 | |||||||||||
6.8 | |||||||||||
6.9 | |||||||||||
6.10 | |||||||||||
6.11 | |||||||||||
6.12 | |||||||||||
7.1 | |||||||||||
7.2 | |||||||||||
7.3 | |||||||||||
7.4 | |||||||||||
7.5 | |||||||||||
7.6 | |||||||||||
8.1 | |||||||||||
8.2 | |||||||||||
8.3 | |||||||||||
8.4 | |||||||||||
8.5 | |||||||||||
8.6 | |||||||||||
8.7 | |||||||||||
8.8 |
8.9 | |||||||||||
8.10 | |||||||||||
8.11 | |||||||||||
8.12 | |||||||||||
9.1 | |||||||||||
9.2 | |||||||||||
9.3 | |||||||||||
9.4 | |||||||||||
9.5 | |||||||||||
9.6 | |||||||||||
9.7 | |||||||||||
9.8 | |||||||||||
9.9 | |||||||||||
9.10 | |||||||||||
9.11 | |||||||||||
9.12 | |||||||||||
10.1 | |||||||||||
10.2 | |||||||||||
10.3 | |||||||||||
10.4 | |||||||||||
10.5 | |||||||||||
10.6 | |||||||||||
11.1 | |||||||||||
11.2 | |||||||||||
11.3 | |||||||||||
12.1 | |||||||||||
12.2 | |||||||||||
12.3 | |||||||||||
12.4 | |||||||||||
12.5 | |||||||||||
12.6 | |||||||||||
13.1 | |||||||||||
13.2 | |||||||||||
14.1 | |||||||||||
14.2 | |||||||||||
14.3 | |||||||||||
14.4 | |||||||||||
14.5 | |||||||||||
14.6 |
19.2 | |||||||||||
19.3 | |||||||||||
19.4 | |||||||||||
19.5 | |||||||||||
19.6 | |||||||||||
19.7 | |||||||||||
19.8 | |||||||||||
19.9 | |||||||||||
20.1 | |||||||||||
20.2 | |||||||||||
20.3 | |||||||||||
20.4 | |||||||||||
20.5 | |||||||||||
20.6 | |||||||||||
20.7 | |||||||||||
20.8 | |||||||||||
20.9 | |||||||||||
21.1 | |||||||||||
21.2 | |||||||||||
21.3 | |||||||||||
21.4 | |||||||||||
22.1 | |||||||||||
22.2 | |||||||||||
22.3 | |||||||||||
23.1 | |||||||||||
23.2 | |||||||||||
23.3 | |||||||||||
23.4 | |||||||||||
23.5 | |||||||||||
23.6 | |||||||||||
23.7 | |||||||||||
23.8 | |||||||||||
23.9 | |||||||||||
23.10 | |||||||||||
23.11 | |||||||||||
23.12 | |||||||||||
23.13 | |||||||||||
23.14 | |||||||||||
23.15 |
23.16 | |||||||||||
23.17 |
If to Contractor: | Bechtel Oil, Gas and Chemicals, Inc. | ||||||||||
3000 Post Oak Blvd. | |||||||||||
Houston, TX 77056 | |||||||||||
E-mail: [###]@bechtel.com | |||||||||||
Attn: Walker Kimball | |||||||||||
With a copy to: | Bechtel Oil, Gas and Chemicals, Inc. | ||||||||||
3000 Post Oak Blvd. | |||||||||||
Houston, TX 77056 | |||||||||||
E-mail: [###]@bechtel.com | |||||||||||
Attn: Manager of Legal | |||||||||||
If to Owner: | Port Arthur LNG, LLC | ||||||||||
1500 Post Oak Blvd., Suite 1000 | |||||||||||
Houston, TX 77056 | |||||||||||
E-mail: [###]@sempraglobal.com | |||||||||||
Attn: Karim El Kheiashy | |||||||||||
With a copy to: | Sempra Energy LNG | ||||||||||
488 8th Avenue | |||||||||||
San Diego, CA 92101 | |||||||||||
E-mail: [###]@sempraglobal.com | |||||||||||
Attn: Martin Hupka | |||||||||||
If to Common Facilities Owner: | PALNG Common Facilities Company, LLC | ||||||||||
1500 Post Oak Blvd., Suite 1000 | |||||||||||
Houston, TX 77056 | |||||||||||
E-mail: [###]@sempraglobal.com | |||||||||||
Attn: Karim El Kheiashy | |||||||||||
With a copy to: | Sempra Energy LNG | ||||||||||
488 8th Avenue | |||||||||||
San Diego, CA 92101 | |||||||||||
E-mail: [###]@sempraglobal.com | |||||||||||
Attn: Martin Hupka | |||||||||||
1.0 |
A-3
|
||||||||||
2.0 |
A-4
|
||||||||||
2.1 |
A-4
|
||||||||||
3.0 |
A-7
|
||||||||||
4.0 |
A-7
|
||||||||||
4.1 |
A-7
|
||||||||||
4.2 |
A-12
|
||||||||||
4.3 |
A-13
|
||||||||||
4.4 |
A-13
|
||||||||||
4.5 |
A-13
|
||||||||||
4.6 |
A-14
|
||||||||||
4.7 |
A-15
|
||||||||||
4.8 |
A-17
|
||||||||||
4.9 |
A-20
|
||||||||||
4.10 |
A-24
|
||||||||||
4.11 |
A-38
|
||||||||||
4.12 |
A-42
|
||||||||||
4.13 |
A-46
|
||||||||||
4.14 |
A-47
|
||||||||||
4.15 |
A-48
|
||||||||||
4.16 |
A-48
|
||||||||||
4.17 |
A-51
|
||||||||||
4.18 |
A-52
|
||||||||||
5.0 |
A-52
|
||||||||||
5.1 |
A-52
|
||||||||||
5.2 |
A-53
|
||||||||||
5.3 |
A-53
|
||||||||||
5.4 |
A-53
|
||||||||||
6.0 |
A-53
|
||||||||||
6.1 |
A-53
|
||||||||||
6.2 |
A-54
|
||||||||||
6.3 |
A-54
|
||||||||||
6.4 |
A-54
|
||||||||||
6.5 |
A-55
|
||||||||||
6.6 |
A-55
|
||||||||||
6.7 |
A-56
|
||||||||||
7.0 |
A-56
|
||||||||||
7.1 |
A-57
|
||||||||||
7.2 |
A-57
|
||||||||||
7.3 |
A-57
|
||||||||||
7.4 |
A-59
|
7.5 |
A-59
|
||||||||||
7.6 |
A-60
|
||||||||||
7.7 |
A-61
|
||||||||||
7.8 |
A-62
|
||||||||||
7.9 |
A-62
|
||||||||||
7.10 |
A-62
|
||||||||||
7.11 |
A-63
|
||||||||||
7.12 |
A-64
|
||||||||||
7.13 |
A-65
|
||||||||||
7.14 |
A-65
|
||||||||||
7.15 |
A-66
|
||||||||||
7.16 |
A-66
|
||||||||||
7.17 |
A-66
|
||||||||||
8.0 |
A-66
|
||||||||||
8.1 |
A-67
|
||||||||||
8.2 |
A-68
|
||||||||||
9.0 |
A-68
|
||||||||||
10.0 |
A-68
|
||||||||||
11.0 |
A-69
|
||||||||||
12.0 |
A-69
|
||||||||||
13.0 |
A-70
|
||||||||||
Attachments: | |||||||||||
ATTACHMENT A-1 - CONTRACTOR DELIVERABLES | |||||||||||
ATTACHMENT A-2 - PORT ARTHUR LIQUEFACTION PROJECT ENVIRONMENTAL PLAN | |||||||||||
ATTACHMENT A-3 - MASTER DOCUMENT INDEX |
Equipment
|
||
Infrastructure-All Systems
|
||
Fiber Optic Cable and Copper Cable
|
||
Conduit/Cable Tray
|
||
All Electrical Installations
|
||
All mechanical and civil works and installations related to Telecommunication systems
|
||
UPS and batteries
|
||
All Junction Boxes (indoors and outdoors)
|
||
Fiber Optic Patch panels
|
||
Cat6 Patch Panels
|
||
Racks/Enclosures including electrical power
|
||
Engineering and Deliverables
|
||
Telephone VoIP system
|
||
IP PBX
|
||
VoIP Switches
|
||
VoIP Servers
|
||
VoIP Phones (/Prefabricated Power Houses and Building)
|
||
Ethernet RJ45 Sockets (wall jacks) for all buildings
|
||
Conference Phones
|
||
Conference Room Equipment
|
||
Engineering and Deliverables (with input from Owner for Owner’s supplied equipment)
|
||
Networking Devices for LAN
|
||
Core Switches
|
||
Distribution Switches
|
||
Access Switches
|
||
Switches with SFP ports and STP pluggable connectors
|
||
Cisco Wireless Access Points (WAPs)
|
||
WAP Controllers
|
||
Firewalls for all Telecommunications systems provided by Contractor that interfaces with Business LAN
|
||
Racks/Enclosures for Owner use (with input from Owner)
|
||
Rack Mounted Power Distribution Units/Strips (PDUs)
|
Equipment
|
||
Ethernet RJ45 Sockets (wall jacks, floor, ceiling for WAP and conference rooms, etc.)
|
||
Ethernet and Fiber Optic patch cable to networking devices
|
||
Master telecom GPS clock with antenna installation, software and synchronization of systems provided by Contractor
|
||
Engineering and Deliverables (with input from Owner for Owner’s supplied equipment)
|
||
Hot Lines
|
||
Hotlines and Associate Equipment
|
||
Engineering and Deliverables
|
||
CCTV
|
||
All CCTV cameras
|
||
Printers for the security CCTV system
|
||
Servers with redundant power supply and redundant storage units
|
||
Workstations for Operations (Process CCTV)
|
||
Workstations for Security and CCTV
|
||
Software Licenses
|
||
Engineering and Deliverables
|
||
PAGA
|
||
PAGA System
|
||
Speakers/beacons outdoor
|
||
Speakers indoor
|
||
PAGA access panels
|
||
Engineering and Deliverables
|
||
Access Control/Security System
|
||
Core Switches
|
||
Distribution Switches
|
||
Access Switches
|
||
Switches with SFP ports and STP pluggable connectors
|
||
Access control panels
|
||
Magnetic or strike locks for doors
|
||
Cards Readers
|
||
Servers and Workstations and Monitors for Access Control
|
||
Automated personnel turnstiles
|
||
Intercommunications stations
|
||
Engineering and Deliverables
|
||
Intrusion Detection System
|
||
Fiber optic intrusion detection system
|
||
Engineering and Deliverables
|
||
Permanent Radio System
|
||
Radio Tower
|
||
Antennas and Repeaters
|
||
Radio system components
|
Equipment
|
||
Radios Handhelds with batteries, batteries chargers and accessories
|
||
Fixed Radios (for Operations)
|
||
Fixed Marine Radios
|
||
Engineering and Deliverables
|
Sempra Energy: | <SIGNATURE> | |||||||
|
<NAME> | |||||||
Title: | <CEO or CHRO (however designated)> | |||||||
Award: |
You have been granted a nonqualified stock option award under Sempra Energy’s <YEAR> Long Term Incentive Plan (the “Plan”). The award consists of an option to purchase the number of shares of Sempra Energy Common Stock (“Common Stock”) set forth on the Cover Page/Summary to this Award Agreement. ˙Capitalized terms used in this Award Agreement and not defined shall have the meaning set forth in the Plan.
Unless and until it is vested, your option will be subject to forfeiture and vesting conditions.
Subject to the provisions below relating to the treatment of your option in connection with a Change in Control (as defined in the Plan), your option will vest as described herein.
Subject to certain exceptions set forth herein, your option will also be forfeited if your employment terminates before it vests.
See “Vesting/Forfeiture,” ”Termination of Employment” and “Transfer Restrictions” below.
|
||||
Vesting/Forfeiture:
|
Your option vests (becomes exercisable) in equal annual cumulative installments over a three-year period. Each installment is one-third of the original number of shares covered by your option and an installment vests on each of the first three anniversaries of the Grant Date shown on the Cover Page/Summary to this Award Agreement. Once an installment of your option becomes exercisable, it will remain exercisable until it is exercised or your option expires. Any unvested portion of the option will be forfeited in accordance with this Award Agreement. | ||||
Term:
|
Your option will expire at the close of business at Sempra Energy headquarters on the day before the 10th anniversary of the Grant Date shown on the cover sheet and, except as otherwise provided, is subject to earlier expiration or termination (as described below) if your employment terminates. | ||||
Termination of Employment:
Termination:
|
|||||
If your employment with Sempra Energy and its Subsidiaries terminates for any reason prior to the vesting of your option (other than under the circumstances set forth below), any unvested portion of your option will be forfeited effective immediately after your termination; provided, however, that the Compensation Committee in its sole discretion may determine that all or a portion of your option will not be forfeited but will be vested as of your termination of employment (subject to Code Section 409A requirements and the terms of the Plan). Except as provided below, the vested portion of your option will expire at the close of business at Sempra Energy’s headquarters on the 90th day after your employment terminates or, if earlier, on the ten-year expiration date of the option. The option will not continue to vest after your termination of employment except as provided below or as provided by the Compensation Committee and will be exercisable only as to the number of shares for which it was exercisable on the date of your termination.
|
|||||
Change in Control: | The terms of the Plan relating to treatment of awards in the event of a Change in Control shall apply to your option in the event of a Change in Control. | ||||
Restrictions on Exercise: | You will not be permitted to exercise your option at any time at which Sempra Energy determines that the issuance of shares may violate any law, regulation or Sempra Energy policy. | ||||
Exercise of Option/Tax Withholding: | You may exercise your option, to the extent vested, prior to the date on which the option expires. Exercise shall be done in accordance with policies and procedures established by Sempra Energy. Upon exercise, Sempra Energy or its Subsidiary is required to withhold taxes. Unless you instruct otherwise and pay or make arrangements satisfactory to Sempra Energy to pay the exercise price and the taxes (which can be accomplished through a broker assisted cashless exercise), upon exercise, Sempra Energy will withhold a sufficient number of shares of common stock that you otherwise would be entitled to receive upon exercise to pay the exercise price for the shares with respect to which the option is exercised and to cover the minimum required withholding taxes and will transfer to you only the remaining balance of the shares with respect to which the option is exercised. | ||||
Transfer Restrictions: | Prior to your death, your option may only be exercised by you. You may not sell or otherwise transfer or assign your option. You may, however, dispose of your option in your will. If someone wants to exercise your option after your death, that person must prove to Sempra Energy’s satisfaction that he or she is entitled to do so. | ||||
Restrictions on Resale: | You agree not to sell any option shares at a time when applicable laws, regulations or Sempra Energy policies prohibit a sale. | ||||
Recoupment (“Clawback”) Policy:
|
The Company shall require the forfeiture, recovery or reimbursement of awards or compensation under the Plan and this award as (i) required by applicable law, or (ii) required under any policy implemented or maintained by the Company pursuant to any applicable rules or requirements of a national securities exchange or national securities association on which any securities of the Company are listed. The Company reserves the right to recoup compensation paid if it determines that the results on which the compensation was paid were not actually achieved.
|
||||
The Compensation Committee may, in its sole discretion, require the recovery or reimbursement of long-term incentive compensation awards from any employee whose fraudulent or intentional misconduct materially affects the operations or financial results of the Company or any of its Subsidiaries. | |||||
Retention Rights: | Neither your option nor this Award Agreement gives you the right to be retained by Sempra Energy or any of its Subsidiaries in any capacity and your employer reserves the right to terminate your employment at any time, with or without cause. The value of the shares subject to your option will not be included as compensation or earnings for purposes of any other benefit plan offered by Sempra Energy or any of its Subsidiaries. |
No Shareholder Rights: | You have no rights as a shareholder of Sempra Energy until your option shares have been issued. No adjustments are made for dividends or other rights if the applicable record date occurs before your option shares are issued. | ||||
Nonqualified Stock Option: | This option is not intended to be an incentive stock option under section 422 of the Code. | ||||
Applicable Law: | This Award Agreement will be interpreted and enforced under the laws of the State of California. | ||||
Further Actions: |
You agree to take all actions and execute all documents appropriate to carry out the provisions of this Award Agreement.
You shall be deemed to have accepted this award unless you affirmatively reject it in writing addressed to the Corporate Secretary of the Company no later than 90 days following the Date of Award.
You also appoint as your attorney-in-fact each individual who at the time of so acting is the Secretary or an Assistant Secretary of Sempra Energy with full authority to effect any transfer of any shares of Common Stock distributable to you pursuant to the option, including any transfer to pay withholding taxes, that is authorized by this Award Agreement.
|
||||
Other Agreements: | In the event of any conflict between the terms of this Award Agreement and any written employment, severance or other employment-related agreement between you and Sempra Energy, the terms of this Award Agreement, or the terms of such other agreement, whichever are more favorable to you, shall prevail. In the event of a conflict between the terms of this Award Agreement and the Plan, the Plan document shall prevail. |
Vesting/Forfeiture of Restricted Stock Units: | |||||||||||||||||||||||
Subject to certain exceptions set forth in the Award Agreement, your restricted stock units (including units attributable to reinvested dividend equivalents) will vest only in the event, and to the extent, that the Compensation Committee determines and certifies that Sempra Energy has met the specified Earnings Per Share Growth performance, as described below, for the performance period beginning on January 1, <YEAR> and ending December 31, <YEAR>. Any vesting will occur immediately following such determination and certification. Any restricted stock units that do not vest with the Compensation Committee's determination and certification (or otherwise in accordance with the Award Agreement) will be forfeited. All determinations of the Compensation Committee as to the level of Earnings Per Share Growth and the number of your restricted stock units (and accompanying dividend equivalents) that vest is final and binding. | |||||||||||||||||||||||
Transfer Restrictions: | |||||||||||||||||||||||
Your restricted stock units may not be sold or otherwise transferred and will remain subject to forfeiture conditions until they vest. | |||||||||||||||||||||||
Termination of Employment: | |||||||||||||||||||||||
Subject to certain exceptions set forth in the Award Agreement, your restricted stock units will be forfeited if your employment terminates. | |||||||||||||||||||||||
Dividend Equivalents: | |||||||||||||||||||||||
You also have been awarded dividend equivalents with respect to your restricted stock units. Your dividend equivalents represent the right to receive additional shares of Common Stock in the future, subject to the terms and conditions of your award. Your dividend equivalents will be determined based on the dividends that you would have received had you held shares of Common Stock equal to the vested number of your restricted stock units from the date of your award to the date of the distribution of shares of Common Stock following the vesting of your restricted stock units, and assuming that the dividends were reinvested in Common Stock (and any dividends on such shares were reinvested in Common Stock). The dividends will be deemed reinvested in Common Stock in the same manner as dividends reinvested pursuant to the terms of the Sempra Energy Direct Stock Purchase Plan (also known as the Sempra Energy Dividend Reinvestment Plan). Your dividend equivalents will be subject to the same transfer restrictions and forfeiture and vesting conditions as the shares represented by your restricted stock units. | |||||||||||||||||||||||
Distribution of Shares: | |||||||||||||||||||||||
Shares of Common Stock will be distributed to you to the extent your restricted stock units (and accompanying dividend equivalents) vest. Except as provided otherwise in the Award Agreement, the shares will be distributed to you after the completion of the performance period ending on December 31, <YEAR> and the Compensation Committee’s determination and certification of Earnings Per Share Growth performance for the performance period. The shares of Common Stock will include the additional shares to be distributed pursuant to your vested dividend equivalents.
|
|||||||||||||||||||||||
Taxes: | |||||||||||||||||||||||
Upon distribution of shares of Common Stock to you, you will be subject to income taxes on the value of the distributed shares at the time of distribution and must pay applicable withholding taxes. | |||||||||||||||||||||||
By your acceptance of this award, you agree to all of the terms and conditions set forth in this Cover Page/Summary, the Award Agreement and the Plan. You will be deemed to have accepted this award unless you affirmatively reject the award in accordance with the procedures described herein.
|
|||||||||||||||||||||||
Sempra Energy: | <SIGNATURE> | ||||||||||||||||||||||
Title:
|
<NAME>
<CEO or CHRO (however designated)>
|
Award: |
You have been granted a performance-based restricted stock unit award under Sempra Energy’s <YEAR> Long Term Incentive Plan (the “Plan”). The award consists of the number of restricted stock units set forth on the Cover Page/Summary to this Award Agreement, and dividend equivalents with respect to the restricted stock units (described below). Capitalized terms used in this Award Agreement and not defined shall have the meaning set forth in the Plan.
Your restricted stock units represent the right to receive shares of Common Stock in the future, subject to the terms and conditions of your award. Your restricted stock units are not shares of Common Stock.
Each restricted stock unit initially represents the right to receive one share of Common Stock upon the vesting of the unit.
Unless and until they vest, your restricted stock units and any dividend equivalents will be subject to transfer restrictions and forfeiture and vesting conditions.
Subject to the provisions below relating to the treatment of your restricted stock units in connection with a Change in Control, your restricted stock units (and dividend equivalents) will vest only in the event, and only to the extent, that the Compensation Committee of Sempra Energy's Board of Directors (the “Compensation Committee”) determines and certifies that Sempra Energy has met the Earnings Per Share Growth performance for the performance period beginning January 1, <YEAR> and ending on December 31, <YEAR> as described below. Any restricted stock units (and dividend equivalents) that do not vest will be forfeited.
Subject to certain exceptions set forth herein, your restricted stock units (and dividend equivalents) will be forfeited if your employment terminates before they vest; provided, however, that the Compensation Committee, in its sole discretion, may determine that all or a portion of such restricted stock units (and dividend equivalents) will not be forfeited but will continue to be subject to transfer restrictions and other vesting conditions applicable under this Award Agreement (subject to Code Section 409A requirements and the terms of the Plan).
See “Vesting/Forfeiture,” “Transfer Restrictions,” and “Termination of Employment” below.
|
Vesting/Forfeiture: |
Subject to the provisions below relating to the treatment of your restricted stock units in connection with a Change in Control, your restricted stock units (and dividend equivalents) will vest only in the event, and to the extent, that the Compensation Committee determines and certifies that the Earnings Per Share Growth performance for the performance period has been met. Any vesting will occur immediately following such determination and certification. The Compensation Committee retains sole and exclusive authority to determine the level of Earnings Per Share Growth and the number of your restricted stock units (and accompanying dividend equivalentS) that vest. THE DETERMINATION OF THE COMPENSATION COMMITTEE AS TO ALL MATTERS RELATING TO THIS AWARD IS FINAL AND BINDING.
Earnings Per Share Growth is determined based upon the compound annual growth rate (CAGR) of Sempra Energy’s fiscal <YEAR> and fiscal <YEAR> earnings per share, subject to adjustments by the Compensation Committee in its sole discretion. For purposes of this calculation, (i) the starting point to calculate Earnings Per Share Growth shall be Sempra Energy’s <YEAR> earnings per share, (ii) the ending point to calculate Earnings Per Share Growth shall be Sempra Energy’s <YEAR> earnings per share and (iii) earnings per share shall be calculated using weighted average shares outstanding (WASO) for fiscal <YEAR> and fiscal <YEAR>, as diluted to reflect outstanding stock options and RSUs (Diluted WASO). For fiscal <YEAR>, earnings per share shall exclude the effect of any common stock buybacks not contemplated in Sempra Energy’s most recent financial plans publicly communicated prior to the Date of Award. For the avoidance of doubt, Diluted WASO shall include the impact of any compensation or incentive plan transactions that reduce diluted WASO including, without limitation, transactions from tax withholding obligations and expirations or forfeitures of stock options and restricted stock units.
The calculation of the Earnings component of Earnings Per Share is intended to be consistent with the calculation of Earnings under the Sempra Energy annual incentive plans. Adjustments to Earnings are intended to be generally consistent with the adjustments applied under the Sempra Energy annual incentive plans, but the Compensation Committee, in its sole discretion, shall determine what adjustments shall apply for purposes of calculating Earnings Per Share Growth. The Compensation Committee in its sole discretion shall determine the extent to which the Earnings Per Share Growth performance has been achieved and the number of restricted stock units (and accompanying dividend equivalents) that vest.
The percentage of your target number of restricted stock units that vest will be determined as follows:
|
Earnings Per Share Growth
<YEAR> - <YEAR>
|
Percentage of Target Number of Restricted Stock Units that Vest | ||||
<PERCENTAGE> | 200% | ||||
<PERCENTAGE> | 150% | ||||
<PERCENTAGE> | 100% | ||||
<PERCENTAGE> | 25% | ||||
Below <PERCENTAGE> | 0% |
If Earnings Per Share Growth as determined by the Compensation Committee does not equal a growth rate level shown in the above table, the percentage of your target number of restricted stock units that vest will be determined by a linear interpolation between the next lowest percentage shown in the table and the next highest percentage shown on the table.
If the Earnings Per Share Growth is at or above <PERCENTAGE>, 200% of your target number of restricted stock units will vest.
If the Earnings Per Share Growth is below <PERCENTAGE>, none of your restricted stock units will vest.
|
As soon as reasonably practicable following the end of the performance period, the Compensation Committee will determine and certify the extent to which Sempra Energy has met the Earnings Per Share Growth performance and the extent to which, if any, your restricted stock units have then vested and any such vesting shall occur immediately following such determination and certification by the Compensation Committee. You will receive the number of shares of Common Stock equal to the number of your vested restricted stock units after the Compensation Committee’s determination and certification. Also, you will receive the number of shares of Common Stock equal to your vested dividend equivalents after the Compensation Committee’s determination and certification. Certificates for the shares will be transferred to your brokerage account unless you specifically instruct otherwise. When the shares of Common Stock are issued to you, your restricted stock units (vested and unvested) and your dividend equivalents will terminate.
|
||||||||
Transfer Restrictions: | You may not sell or otherwise transfer or assign your restricted stock units (or your dividend equivalents). | |||||||
Dividend Equivalents & Capitalization Adjustments: |
You also have been awarded dividend equivalents with respect to your restricted stock units. Your dividend equivalents represent the right to receive additional shares of Common Stock in the future, subject to the terms and conditions of your award. Your dividend equivalents will be determined based on the dividends that you would have received had you held shares of Common Stock equal to the vested number of your restricted stock units from the date of your award to the date of the distribution of shares of Common Stock following the vesting of your restricted stock units, and assuming that the dividends were reinvested in Common Stock (and any dividends on such shares were reinvested in Common Stock). The dividends will be deemed reinvested in Common Stock in the same manner as dividends reinvested pursuant to the terms of the Sempra Energy Direct Stock Purchase Plan (also known as the Sempra Energy Dividend Reinvestment Plan).
Your dividend equivalents will be subject to the same transfer restrictions and forfeiture and vesting conditions as your restricted stock units. They will vest when and to the extent that your restricted stock units vest.
Also, your restricted stock units (and dividend equivalents), including the terms and conditions thereof, will, in the sole discretion of the Compensation Committee, be substituted or adjusted, as applicable, in accordance with the terms and conditions of the Plan. Any additional restricted stock units (and dividend equivalents) awarded to you as a result of such substitution or adjustment also will be subject to the same transfer restrictions, forfeiture and vesting conditions and other terms and conditions that are applicable to your restricted stock units (and dividend equivalents).
|
|||||||
No Shareholder Rights: | Your restricted stock units (and dividend equivalents) are not shares of Common Stock. You will have no rights as a shareholder unless and until shares of Common Stock are issued to you following the vesting of your restricted stock units (and dividend equivalents) as provided in this Award Agreement and the Plan. | |||||||
Distribution of Shares:
|
As described in “Vesting/Forfeiture” above, the Compensation Committee will determine and certify the extent to which Sempra Energy has met the performance criteria and the extent, if any, as to which your restricted stock units (and dividend equivalents) have then vested in accordance with the terms of the award.
You will receive the number of shares of Common Stock equal to the number of your restricted stock units that have vested. However, in no event will you receive under this award, and other awards granted to you under the Plan in the same fiscal year of Sempra Energy, more than the maximum number of shares of Common Stock permitted under the Plan. Also, you will receive the number of shares of Common Stock equal to your vested dividend equivalents after the Compensation Committee’s determination and certification.
You will receive the shares as soon as reasonably practicable following the Compensation Committee’s determination and certification (and in no event later than March 15, <YEAR>). Once you receive the shares of Common Stock, your vested and unvested restricted stock units (and dividend equivalents) will terminate.
|
|||||||
Termination of Employment: | |||||
Termination: |
If your employment with Sempra Energy and its Subsidiaries terminates for any reason prior to the vesting of your restricted stock units (and dividend equivalents) (other than under the circumstances set forth in the following provisions of this section), all of your restricted stock units (and dividend equivalents) will be forfeited. Subject to the provisions below relating to the treatment of your restricted stock units in connection with a Change in Control, the vesting of your restricted stock units (and dividend equivalents) does not occur until the date of the Compensation Committee’s determination and certification described above.
If your employment terminates prior to a Change in Control, other than by termination for cause, and you had both completed at least five years of continuous service with Sempra Energy and its Subsidiaries AND met any of the following conditions:
1.)your employment terminates on or after December 31, <YEAR> and at the date of termination you had attained age 55; or
2.)your employment terminates on or after November 30, <YEAR> and at the date of termination you had attained age 62; or
3.)at the date of termination you had attained age 65 and you were an officer subject to the company’s mandatory retirement policy;
your restricted stock units (and dividend equivalents) will not be forfeited but will continue to be subject to the transfer restrictions and vesting conditions and other terms and conditions of this Award Agreement (subject to Code Section 409A requirements and the terms of the Plan).
If your employment terminates by reason of your death prior to the vesting of your restricted stock units and your award would otherwise be forfeited (for example, you do not meet the age and service conditions described above), your award will be deemed forfeited immediately prior to the date and time it would otherwise vest, unless, and to the extent that, prior to the date and time that the restricted stock units would otherwise vest, the Compensation Committee, in its sole discretion, takes action to waive the service requirement described above.
If your employment terminates and your restricted stock units (and dividend equivalents) would otherwise be forfeited, the Compensation Committee, in its sole discretion, may determine prior to such termination that all or a portion of such restricted stock units (and dividend equivalents) will not be forfeited but will continue to be subject to the transfer restrictions and vesting conditions and other terms and conditions of this Award Agreement (subject to Code Section 409A requirements and the terms of the Plan).
|
Termination for Cause: |
If your employment with Sempra Energy and its Subsidiaries terminates for cause, or your employment would have been subject to termination for cause, prior to the vesting of your restricted stock units (and dividend equivalents), all of your restricted stock units (and dividend equivalents) will be forfeited.
Prior to the consummation of a Change in Control, a termination for cause is (i) the willful failure by you to substantially perform your duties with the Company (other than any such failure resulting from your incapacity due to physical or mental illness), (ii) the grossly negligent performance of such obligations referenced in clause (i) of this definition, (iii) your gross insubordination; and/or (iv) your commission of one or more acts of moral turpitude that constitute a violation of applicable law (including but not limited to a felony) which have or result in an adverse effect on the Company, monetarily or otherwise, or one or more significant acts of dishonesty. For purposes of clause (i), no act, or failure to act, on your part shall be deemed “willful” unless done, or omitted to be done, by you not in good faith and without reasonable belief that your act, or failure to act, was in the best interests of the Company. If your restricted stock units remain outstanding following a Change in Control pursuant to a Replacement Award, a termination for cause following such Change in Control shall be determined in accordance with the provisions of the Plan that define “Cause”, including reasonable notice and, if possible, a reasonable opportunity to cure as provided therein.
|
||||
Taxes: | |||||
Withholding Taxes: | When you become subject to withholding taxes upon distribution of the shares of Common Stock or otherwise, Sempra Energy or its Subsidiary is required to withhold taxes. Unless you instruct otherwise and pay or make arrangements satisfactory to Sempra Energy to pay these taxes, upon the distribution of your shares, Sempra Energy will withhold a sufficient number of shares of common stock that you would otherwise be entitled to receive to cover the minimum required withholding taxes and transfer to you only the remaining balance of your shares. In the event that, following a Change in Control, your restricted stock units become eligible for a distribution upon your Retirement by reason of your combined age and service, your restricted stock units may become subject to employment tax withholding prior to the distribution of shares with respect to such units. | ||||
Code Section 409A:
|
Your restricted stock units are subject to provisions of the Plan which set forth terms to comply with Code Section 409A. | ||||
Recoupment (“Clawback”) Policy: |
The Company shall require the forfeiture, recovery or reimbursement of awards or compensation under the Plan and this award as (i) required by applicable law, or (ii) required under any policy implemented or maintained by the Company pursuant to any applicable rules or requirements of a national securities exchange or national securities association on which any securities of the Company are listed. The Company reserves the right to recoup compensation paid if it determines that the results on which the compensation was paid were not actually achieved.
The Compensation Committee may, in its sole discretion, require the recovery or reimbursement of long-term incentive compensation awards from any employee whose fraudulent or intentional misconduct materially affects the operations or financial results of the Company or its Subsidiaries.
|
||||
Retention Rights: | Neither your restricted stock unit award nor this Award Agreement gives you any right to be retained by Sempra Energy or any of its Subsidiaries in any capacity and your employer reserves the right to terminate your employment at any time, with or without cause. The value of your award will not be included as compensation or earnings for purposes of any other benefit plan offered by Sempra Energy or any of its Subsidiaries. |
Change in Control: |
In the event of a Change in Control, the following terms shall apply:
▪If (i) you have achieved age 55 and have completed at least five years of continuous service with Sempra Energy and its Subsidiaries as of the date of a Change in Control and your restricted stock units have not been forfeited prior to the Change in Control, (ii) your outstanding restricted stock units as of the date of a Change in Control are not subject to a “substantial risk of forfeiture” within the meaning of Code Section 409A and/or (iii) your outstanding restricted stock units are not assumed or substituted with one or more Replacement Awards (as defined in the Plan), then in each case your outstanding restricted stock units and any associated dividend equivalents will vest immediately prior to the Change in Control with the applicable performance goals deemed to have been achieved at the greater of target level as of the date of such vesting or the actual performance level had the performance period ended on the last day of the calendar year immediately preceding the date of the Change in Control. If the foregoing terms apply, immediately prior to the date of the Change in Control you will receive a number of shares of Common Stock equal to the number of your restricted stock units and dividend equivalents that have vested.
▪If your outstanding restricted stock awards are assumed or substituted with one or more Replacement Awards, then, except as provided otherwise in an individual severance agreement or employment agreement to which you are a party, the terms set forth in the Plan shall apply with respect to such Replacement Award following the Change in Control. If the foregoing terms apply and the Replacement Award vests upon your separation from service or death, on such date, you will receive a number of shares or other property in settlement of the Replacement Awards.
|
||||
Further Actions: |
You agree to take all actions and execute all documents appropriate to carry out the provisions of this Award Agreement.
You shall be deemed to have accepted this award unless you affirmatively reject it in writing addressed to the Corporate Secretary of the Company no later than 90 days following the Date of Award.
You also appoint as your attorney-in-fact each individual who at the time of so acting is the Secretary or an Assistant Secretary of Sempra Energy with full authority to effect any transfer of any shares of Common Stock distributable to you, including any transfer to pay withholding taxes, that is authorized by this Award Agreement.
|
||||
Applicable Law: | This Award Agreement will be interpreted and enforced under the laws of the State of California. | ||||
Other Agreements: | In the event of any conflict between the terms of this Award Agreement and any written employment, severance or other employment-related agreement between you and Sempra Energy, the terms of this Award Agreement, or the terms of such other agreement, whichever are more favorable to you, shall prevail, provided that in each case a conflict shall be resolved in a manner consistent with the intent that your restricted stock units comply with Code Section 409A. In the event of a conflict between the terms of this Award Agreement and the Plan, the Plan document shall prevail. |
Vesting/Forfeiture of Restricted Stock Units: | |||||||||||
Subject to certain exceptions set forth in the Award Agreement, your restricted stock units (including units attributable to reinvested dividend equivalents) will vest only in the event, and to the extent, that the Compensation Committee determines and certifies that Sempra Energy has met the specified total shareholder return performance criteria for the performance period beginning on January 1, <YEAR> and ending on the close of trading on the first New York Stock Exchange trading day of <YEAR> [or such other performance period beginning and ending on the dates determined by the Compensation Committee]. Any vesting will occur immediately following such determination and certification. Any restricted stock units that do not vest with the Compensation Committee's determination and certification (or otherwise in accordance with the Award Agreement) will be forfeited. All determinations of the Compensation Committee as to total shareholder return (as described below) and the number of your restricted stock units (and accompanying dividend equivalents) that vest is final and binding. | |||||||||||
Transfer Restrictions: | |||||||||||
Your restricted stock units may not be sold or otherwise transferred and will remain subject to forfeiture conditions until they vest. | |||||||||||
Termination of Employment: | |||||||||||
Subject to certain exceptions set forth in the Award Agreement, your restricted stock units will be forfeited if your employment terminates. | |||||||||||
Dividend Equivalents: | |||||||||||
You also have been awarded dividend equivalents with respect to your restricted stock units. Your dividend equivalents represent the right to receive additional shares of Common Stock in the future, subject to the terms and conditions of your award. Your dividend equivalents will be determined based on the dividends that you would have received had you held shares of Common Stock equal to the vested number of your restricted stock units from the date of your award to the date of the distribution of shares of Common Stock following the vesting of your restricted stock units, and assuming that the dividends were reinvested in Common Stock (and any dividends on such shares were reinvested in Common Stock). The dividends will be deemed reinvested in Common Stock in the same manner as dividends reinvested pursuant to the terms of the Sempra Energy Direct Stock Purchase Plan (also known as the Sempra Energy Dividend Reinvestment Plan). Your dividend equivalents will be subject to the same transfer restrictions and forfeiture and vesting conditions as the shares represented by your restricted stock units. | |||||||||||
Distribution of Shares: | |||||||||||
Shares of Common Stock will be distributed to you to the extent your restricted stock units (and accompanying dividend equivalents) vest. Except as provided otherwise in the Award Agreement, the shares will be distributed to you after the completion of the performance period ending on the close of trading on the first New York Stock Exchange trading day of <YEAR> [or the end of the performance period determined by the Compensation Committee] and the Compensation Committee’s determination and certification of Sempra Energy’s total shareholder return for the performance period. The shares of Common Stock will include the additional shares to be distributed pursuant to your vested dividend equivalents.
|
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Taxes: | |||||||||||
Upon distribution of shares of Common Stock to you, you will be subject to income taxes on the value of the distributed shares at the time of distribution and must pay applicable withholding taxes. | |||||||||||
By your acceptance of this award, you agree to all of the terms and conditions set forth in this Cover Page/Summary, the Award Agreement and the Plan. You will be deemed to have accepted this award unless you affirmatively reject the award in accordance with the procedures described herein.
|
|||||||||||
Sempra Energy: | <SIGNATURE> | ||||||||||
Title:
|
<NAME>
<CEO or CHRO (however designated)>
|
Award:
|
You have been granted a performance-based restricted stock unit award under Sempra Energy’s <YEAR> Long Term Incentive Plan (the “Plan”). The award consists of the number of restricted stock units set forth on the Cover Page/Summary to this Award Agreement, and dividend equivalents with respect to the restricted stock units (described below). Capitalized terms used in this Award Agreement and not defined shall have the meaning set forth in the Plan.
Your restricted stock units represent the right to receive shares of Common Stock in the future, subject to the terms and conditions of your award. Your restricted stock units are not shares of Common Stock.
Each restricted stock unit initially represents the right to receive one share of Common Stock upon the vesting of the unit.
Unless and until they vest, your restricted stock units and any dividend equivalents will be subject to transfer restrictions and forfeiture and vesting conditions.
Subject to the provisions below relating to the treatment of your restricted stock units in connection with a Change in Control, your restricted stock units (and dividend equivalents) will vest only in the event, and only to the extent, that the Compensation Committee of Sempra Energy's Board of Directors (the “Compensation Committee”) determines and certifies that Sempra Energy has met specified total shareholder return criteria for the performance period beginning January 1, <YEAR> and ending on the close of trading on the first New York Stock Exchange trading day of <YEAR> [or such other performance period beginning and ending on the dates determined by the Compensation Committee]. Any restricted stock units (and dividend equivalents) that do not vest will be forfeited.
Subject to certain exceptions set forth herein, your restricted stock units (and dividend equivalents) will be forfeited if your employment terminates before they vest; provided, however, that the Compensation Committee, in its sole discretion, may determine that all or a portion of such restricted stock units (and dividend equivalents) will not be forfeited but will continue to be subject to transfer restrictions and other vesting conditions applicable under this Award Agreement (subject to Code Section 409A requirements and the terms of the Plan).
See “Vesting/Forfeiture,” “Transfer Restrictions,” and “Termination of Employment” below.
|
Vesting/Forfeiture: |
Subject to the provisions below relating to the treatment of your restricted stock units in connection with a Change in Control, your restricted stock units (and dividend equivalents) will vest only in the event, and to the extent, that the Compensation Committee determines and certifies that Sempra Energy has met the following total shareholder return performance criteria for the performance period beginning on January 1, <YEAR> and ending on the close of trading on the first New York Stock Exchange trading day of <YEAR> [or such other performance period beginning and ending on the dates determined by the Compensation Committee]. Any vesting will occur immediately following such determination and certification. THE DETERMINATION OF THE COMPENSATION COMMITTEE AS TO TOTAL SHAREHOLDER RETURN PERFORMANCE AND THE NUMBER OF RESTRICTED STOCK UNITS (AND ACCOMPANYING DIVIDEND EQUIVALENTS) THAT VEST IS FINAL AND BINDING.
▪The percentage of your target number of restricted stock units that vest will be determined as follows, based on the percentile ranking for the performance period (as measured based on the thirty-day average closing stock price immediately preceding the start of the performance period compared to the thirty-day average closing stock price immediately preceding the end of the performance period) of Sempra Energy’s cumulative total shareholder return (consisting of per share appreciation in Common Stock plus reinvested dividends and other distributions paid on Common Stock) among the companies (ranked by cumulative total shareholder returns) in the S&P 500 Index, as determined and certified by the Compensation Committee, subject to adjustment as described below. For the avoidance of doubt, the thirty-day average preceding the beginning of the performance period shall be based on the thirty calendar days prior to and excluding January 1, <YEAR> and the thirty day average preceding the end of the performance period shall be based on the thirty calendar days prior to and including the first NYSE trading day of <YEAR> [or such other performance period beginning and ending on the dates determined by the Compensation Committee].
|
Sempra Energy
Total Shareholder Return Percentile Ranking |
Percentage of Target
Number of Restricted Stock Units that Vest |
|||||||
90th
|
200% | |||||||
80th
|
175% | |||||||
70th
|
150% | |||||||
60th
|
125% | |||||||
50th
|
100% | |||||||
40th
|
70% | |||||||
35th
|
55% | |||||||
30th
|
40% | |||||||
25th
|
25% | |||||||
Below 25th
|
0% |
If the percentile ranking does not equal a ranking shown in the above table, the percentage of your target number of restricted stock units that vest will be determined by a linear interpolation between the next lowest percentile shown in the table and the next highest percentile shown on the table.
◦If the percentile ranking is at or above the 90th percentile, 200% of your target number of restricted stock units will vest.
◦If the percentile ranking is below the 25th percentile, none of your restricted stock units will vest.
As soon as reasonably practicable following the end of the performance period, the Compensation Committee will determine and certify the extent to which Sempra Energy has met the total shareholder return performance criteria and the extent to which, if any, your restricted stock units have then vested and any such vesting shall occur immediately following such determination and certification by the Compensation Committee. You will receive the number of shares of Common Stock equal to the number of your vested restricted stock units after the Compensation Committee’s determination and certification. Also, you will receive the number of shares of Common Stock equal to your vested dividend equivalents after the Compensation Committee’s determination and certification. Certificates for the shares will be transferred to your brokerage account unless you specifically instruct otherwise. When the shares of Common Stock are issued to you, your restricted stock units (vested and unvested) and your dividend equivalents will terminate.
|
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Transfer Restrictions: | You may not sell or otherwise transfer or assign your restricted stock units (or your dividend equivalents). | ||||
Dividend Equivalents & Capitalization Adjustments: |
You also have been awarded dividend equivalents with respect to your restricted stock units. Your dividend equivalents represent the right to receive additional shares of Common Stock in the future, subject to the terms and conditions of your award. Your dividend equivalents will be determined based on the dividends that you would have received had you held shares of Common Stock equal to the vested number of your restricted stock units from the date of your award to the date of the distribution of shares of Common Stock following the vesting of your restricted stock units, and assuming that the dividends were reinvested in Common Stock (and any dividends on such shares were reinvested in Common Stock). The dividends will be deemed reinvested in Common Stock in the same manner as dividends reinvested pursuant to the terms of the Sempra Energy Direct Stock Purchase Plan (also known as the Sempra Energy Dividend Reinvestment Plan).
Your dividend equivalents will be subject to the same transfer restrictions and forfeiture and vesting conditions as your restricted stock units. They will vest when and to the extent that your restricted stock units vest.
Also, your restricted stock units (and dividend equivalents), including the terms and conditions thereof, will, in the sole discretion of the Compensation Committee, be substituted or adjusted, as applicable, in accordance with the terms and conditions of the Plan. Any additional restricted stock units (and dividend equivalents) awarded to you as a result of such substitution or adjustment also will be subject to the same transfer restrictions, forfeiture and vesting conditions and other terms and conditions that are applicable to your restricted stock units (and dividend equivalents).
|
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No Shareholder Rights: | Your restricted stock units (and dividend equivalents) are not shares of Common Stock. You will have no rights as a shareholder unless and until shares of Common Stock are issued to you following the vesting of your restricted stock units (and dividend equivalents) as provided in this Award Agreement and the Plan. |
Distribution of Shares: |
As described in “Vesting/Forfeiture” above, the Compensation Committee will determine and certify the extent to which Sempra Energy has met the performance criteria and the extent, if any, as to which your restricted stock units (and dividend equivalents) have then vested in accordance with the terms of the award.
|
||||
You will receive the number of shares of Common Stock equal to the number of your restricted stock units that have vested. However, in no event will you receive under this award, and other awards granted to you under the Plan in the same fiscal year of Sempra Energy, more than the maximum number of shares of Common Stock permitted under the Plan. Also, you will receive the number of shares of Common Stock equal to your vested dividend equivalents after the Compensation Committee’s determination and certification.
|
|||||
You will receive the shares as soon as reasonably practicable following the Compensation Committee’s determination and certification (and in no event later than March 15, <YEAR>). Once you receive the shares of Common Stock, your vested and unvested restricted stock units (and dividend equivalents) will terminate. | |||||
Termination of Employment: | |||||
Termination: |
If your employment with Sempra Energy and its Subsidiaries terminates for any reason prior to the vesting of your restricted stock units (and dividend equivalents) (other than under the circumstances set forth in the following provisions of this section), all of your restricted stock units (and dividend equivalents) will be forfeited. Subject to the provisions below relating to the treatment of your restricted stock units in connection with a Change in Control, the vesting of your restricted stock units (and dividend equivalents) does not occur until the date of the Compensation Committee’s determination and certification described above.
If your employment terminates prior to a Change in Control, other than by termination for cause, and you had both completed at least five years of continuous service with Sempra Energy and its Subsidiaries AND met any of the following conditions:
1.)your employment terminates on or after December 31, <YEAR> and at the date of termination you had attained age 55; or
2.)your employment terminates on or after November 30, <YEAR> and at the date of termination you had attained age 62; or
3.)at the date of termination you had attained age 65 and you were an officer subject to the company’s mandatory retirement policy;
your restricted stock units (and dividend equivalents) will not be forfeited but will continue to be subject to the transfer restrictions and vesting conditions and other terms and conditions of this Award Agreement (subject to Code Section 409A requirements and the terms of the Plan).
If your employment terminates by reason of your death prior to the vesting of your restricted stock units and your award would otherwise be forfeited (for example, you do not meet the age and service conditions described above), your award will be deemed forfeited immediately prior to the date and time it would otherwise vest, unless, and to the extent that, prior to the date and time that the restricted stock units would otherwise vest, the Compensation Committee, in its sole discretion, takes action to waive the service requirement described above.
If your employment terminates and your restricted stock units (and dividend equivalents) would otherwise be forfeited, the Compensation Committee, in its sole discretion, may determine prior to such termination that all or a portion of such restricted stock units (and dividend equivalents) will not be forfeited but will continue to be subject to the transfer restrictions and vesting conditions and other terms and conditions of this Award Agreement (subject to Code Section 409A requirements and the terms of the Plan).
|
Termination for Cause: |
If your employment with Sempra Energy and its Subsidiaries terminates for cause, or your employment would have been subject to termination for cause, prior to the vesting of your restricted stock units (and dividend equivalents), all of your restricted stock units (and dividend equivalents) will be forfeited.
Prior to the consummation of a Change in Control, a termination for cause is (i) the willful failure by you to substantially perform your duties with the Company (other than any such failure resulting from your incapacity due to physical or mental illness), (ii) the grossly negligent performance of such obligations referenced in clause (i) of this definition, (iii) your gross insubordination; and/or (iv) your commission of one or more acts of moral turpitude that constitute a violation of applicable law (including but not limited to a felony) which have or result in an adverse effect on the Company, monetarily or otherwise, or one or more significant acts of dishonesty. For purposes of clause (i), no act, or failure to act, on your part shall be deemed “willful” unless done, or omitted to be done, by you not in good faith and without reasonable belief that your act, or failure to act, was in the best interests of the Company. If your restricted stock units remain outstanding following a Change in Control pursuant to a Replacement Award, a termination for cause following such Change in Control shall be determined in accordance with the provisions of the Plan that define “Cause”, including reasonable notice and, if possible, a reasonable opportunity to cure as provided therein.
|
||||
Taxes: | |||||
Withholding Taxes: | When you become subject to withholding taxes upon distribution of the shares of Common Stock or otherwise, Sempra Energy or its Subsidiary is required to withhold taxes. Unless you instruct otherwise and pay or make arrangements satisfactory to Sempra Energy to pay these taxes, upon the distribution of your shares, Sempra Energy will withhold a sufficient number of shares of common stock that you would otherwise be entitled to receive to cover the minimum required withholding taxes and transfer to you only the remaining balance of your shares. In the event that, following a Change in Control, your restricted stock units become eligible for a distribution upon your Retirement by reason of your combined age and service, your restricted stock units may become subject to employment tax withholding prior to the distribution of shares with respect to such units. | ||||
Code Section 409A:
|
Your restricted stock units are subject to provisions of the Plan which set forth terms to comply with Code Section 409A. | ||||
Recoupment (“Clawback”) Policy: |
The Company shall require the forfeiture, recovery or reimbursement of awards or compensation under the Plan and this award as (i) required by applicable law, or (ii) required under any policy implemented or maintained by the Company pursuant to any applicable rules or requirements of a national securities exchange or national securities association on which any securities of the Company are listed. The Company reserves the right to recoup compensation paid if it determines that the results on which the compensation was paid were not actually achieved.
The Compensation Committee may, in its sole discretion, require the recovery or reimbursement of long-term incentive compensation awards from any employee whose fraudulent or intentional misconduct materially affects the operations or financial results of the Company or its Subsidiaries.
|
||||
Retention Rights: | Neither your restricted stock unit award nor this Award Agreement gives you any right to be retained by Sempra Energy or any of its Subsidiaries in any capacity and your employer reserves the right to terminate your employment at any time, with or without cause. The value of your award will not be included as compensation or earnings for purposes of any other benefit plan offered by Sempra Energy or any of its Subsidiaries. |
Change in Control: |
In the event of a Change in Control, the following terms shall apply:
▪If (i) you have achieved age 55 and have completed at least five years of continuous service with Sempra Energy and its Subsidiaries as of the date of a Change in Control and your restricted stock units have not been forfeited prior to the Change in Control, (ii) your outstanding restricted stock units as of the date of a Change in Control are not subject to a “substantial risk of forfeiture” within the meaning of Code Section 409A, and/or (iii) your outstanding restricted stock units are not assumed or substituted with one or more Replacement Awards (as defined in the Plan), then in each case your outstanding restricted stock units and any associated dividend equivalents will vest immediately prior to the Change in Control with the applicable performance goals deemed to have been achieved at the greater of target level as of the date of such vesting or the actual performance level had the performance period ended on the date of the Change in Control. If the foregoing terms apply, immediately prior to the date of the Change in Control you will receive a number of shares of Common Stock equal to the number of your restricted stock units and dividend equivalents that have vested.
▪If your outstanding restricted stock awards are assumed or substituted with one or more Replacement Awards, then, except as provided otherwise in an individual severance agreement or employment agreement to which you are a party, the terms set forth in the Plan shall apply with respect to such Replacement Award following the Change in Control. If the foregoing terms apply and the Replacement Award vests upon your separation from service or death, on such date, you will receive a number of shares or other property in settlement of the Replacement Awards.
|
||||
Further Actions: |
You agree to take all actions and execute all documents appropriate to carry out the provisions of this Award Agreement.
You shall be deemed to have accepted this award unless you affirmatively reject it in writing addressed to the Corporate Secretary of the Company no later than 90 days following the Date of Award.
You also appoint as your attorney-in-fact each individual who at the time of so acting is the Secretary or an Assistant Secretary of Sempra Energy with full authority to effect any transfer of any shares of Common Stock distributable to you, including any transfer to pay withholding taxes, that is authorized by this Award Agreement.
|
||||
Applicable Law: | This Award Agreement will be interpreted and enforced under the laws of the State of California. | ||||
Other Agreements: | In the event of any conflict between the terms of this Award Agreement and any written employment, severance or other employment-related agreement between you and Sempra Energy, the terms of this Award Agreement, or the terms of such other agreement, whichever are more favorable to you, shall prevail, provided that in each case a conflict shall be resolved in a manner consistent with the intent that your restricted stock units comply with Code Section 409A. In the event of a conflict between the terms of this Award Agreement and the Plan, the Plan document shall prevail. |
Vesting/Forfeiture of Restricted Stock Units: | |||||||||||
Subject to certain exceptions set forth in the Award Agreement, your restricted stock units (including units attributable to reinvested dividend equivalents) will vest only in the event, and to the extent, that the Compensation Committee determines and certifies that Sempra Energy has met the specified total shareholder return performance criteria for the performance period beginning on January 1, <YEAR> and ending on the close of trading on the first New York Stock Exchange trading day of <YEAR> [or such other performance period beginning and ending on the dates determined by the Compensation Committee]. Any vesting will occur immediately following such determination and certification. Any restricted stock units that do not vest with the Compensation Committee's determination and certification (or otherwise in accordance with the Award Agreement) will be forfeited. All determinations of the Compensation Committee as to total shareholder return (as described below) and the number of your restricted stock units (and accompanying dividend equivalents) that vest is final and binding. | |||||||||||
Transfer Restrictions: | |||||||||||
Your restricted stock units may not be sold or otherwise transferred and will remain subject to forfeiture conditions until they vest. | |||||||||||
Termination of Employment: | |||||||||||
Subject to certain exceptions set forth in the Award Agreement, your restricted stock units will be forfeited if your employment terminates. | |||||||||||
Dividend Equivalents: | |||||||||||
You also have been awarded dividend equivalents with respect to your restricted stock units. Your dividend equivalents represent the right to receive additional shares of Common Stock in the future, subject to the terms and conditions of your award. Your dividend equivalents will be determined based on the dividends that you would have received had you held shares of Common Stock equal to the vested number of your restricted stock units from the date of your award to the date of the distribution of shares of Common Stock following the vesting of your restricted stock units, and assuming that the dividends were reinvested in Common Stock (and any dividends on such shares were reinvested in Common Stock). The dividends will be deemed reinvested in Common Stock in the same manner as dividends reinvested pursuant to the terms of the Sempra Energy Direct Stock Purchase Plan (also known as the Sempra Energy Dividend Reinvestment Plan). Your dividend equivalents will be subject to the same transfer restrictions and forfeiture and vesting conditions as the shares represented by your restricted stock units. | |||||||||||
Distribution of Shares: | |||||||||||
Shares of Common Stock will be distributed to you to the extent your restricted stock units (and accompanying dividend equivalents) vest. Except as provided otherwise in the Award Agreement, the shares will be distributed to you after the completion of the performance period ending on the close of trading on the first New York Stock Exchange trading day of <YEAR> [or the end of the performance period determined by the Compensation Committee] and the Compensation Committee’s determination and certification of Sempra Energy’s total shareholder return for the performance period. The shares of Common Stock will include the additional shares to be distributed pursuant to your vested dividend equivalents.
|
|||||||||||
Taxes: | |||||||||||
Upon distribution of shares of Common Stock to you, you will be subject to income taxes on the value of the distributed shares at the time of distribution and must pay applicable withholding taxes. |
By your acceptance of this award, you agree to all of the terms and conditions set forth in this Cover Page/Summary, the Award Agreement and the Plan. You will be deemed to have accepted this award unless you affirmatively reject the award in accordance with the procedures described herein.
|
|||||||||||
Sempra Energy: | <SIGNATURE> | ||||||||||
Title:
|
<NAME>
<CEO or CHRO (however designated)>
|
Award:
|
You have been granted a performance-based restricted stock unit award under Sempra Energy’s <YEAR> Long Term Incentive Plan (the “Plan”). The award consists of the number of restricted stock units set forth on the Cover Page/Summary to this Award Agreement, and dividend equivalents with respect to the restricted stock units (described below). Capitalized terms used in this Award Agreement and not defined shall have the meaning set forth in the Plan.
Your restricted stock units represent the right to receive shares of Common Stock in the future, subject to the terms and conditions of your award. Your restricted stock units are not shares of Common Stock.
Each restricted stock unit initially represents the right to receive one share of Common Stock upon the vesting of the unit.
Unless and until they vest, your restricted stock units and any dividend equivalents will be subject to transfer restrictions and forfeiture and vesting conditions.
Subject to the provisions below relating to the treatment of your restricted stock units in connection with a Change in Control, your restricted stock units (and dividend equivalents) will vest only in the event, and only to the extent, that the Compensation Committee of Sempra Energy's Board of Directors (the “Compensation Committee”) determines and certifies that Sempra Energy has met specified total shareholder return criteria for the performance period beginning January 1, <YEAR> and ending on the close of trading on the first New York Stock Exchange trading day of <YEAR> [or such other performance period beginning and ending on the dates determined by the Compensation Committee]. Any restricted stock units (and dividend equivalents) that do not vest will be forfeited.
Subject to certain exceptions set forth herein, your restricted stock units (and dividend equivalents) will be forfeited if your employment terminates before they vest; provided, however, that the Compensation Committee, in its sole discretion, may determine that all or a portion of such restricted stock units (and dividend equivalents) will not be forfeited but will continue to be subject to transfer restrictions and other vesting conditions applicable under this Award Agreement (subject to Code Section 409A requirements and the terms of the Plan).
See “Vesting/Forfeiture,” “Transfer Restrictions,” and “Termination of Employment” below.
|
Vesting/Forfeiture: |
Subject to the provisions below relating to the treatment of your restricted stock units in connection with a Change in Control, your restricted stock units (and dividend equivalents) will vest only in the event, and to the extent, that the Compensation Committee determines and certifies that Sempra Energy has met the following total shareholder return performance criteria for the performance period beginning on January 1, <YEAR> and ending on the close of trading on the first New York Stock Exchange trading day of <YEAR> [or such other performance period beginning and ending on the dates determined by the Compensation Committee]. Any vesting will occur immediately following such determination and certification. THE DETERMINATION OF THE COMPENSATION COMMITTEE AS TO TOTAL SHAREHOLDER RETURN PERFORMANCE AND THE NUMBER OF RESTRICTED STOCK UNITS (AND ACCOMPANYING DIVIDEND EQUIVALENTS) THAT VEST IS FINAL AND BINDING.
|
||||
•The percentage of your target number of restricted stock units that vest will be determined as follows, based on the percentile ranking for the performance period (as measured based on the thirty-day average closing stock price immediately preceding the start of the performance period compared to the thirty-day average closing stock price immediately preceding the end of the performance period) of Sempra Energy’s cumulative total shareholder return (consisting of per share appreciation in Common Stock plus reinvested dividends and other distributions paid on Common Stock) among the companies (ranked by cumulative total shareholder returns) in the S&P 500 Utilities Index (excluding water companies), as determined and certified by the Compensation Committee, subject to adjustment as described below. For the avoidance of doubt, the thirty-day average preceding the beginning of the performance period shall be based on the thirty calendar days prior to and excluding January 1, <YEAR> and the thirty day average preceding the end of the performance period shall be based on the thirty calendar days prior to and including the first NYSE trading day of <YEAR> [or such other performance period beginning and ending on the dates determined by the Compensation Committee].
|
Sempra Energy
Total Shareholder Return Percentile Ranking |
Percentage of Target
Number of Restricted Stock Units that Vest |
|||||||
90th
|
200% | |||||||
80th
|
175% | |||||||
70th
|
150% | |||||||
60th
|
125% | |||||||
50th
|
100% | |||||||
40th
|
70% | |||||||
35th
|
55% | |||||||
30th
|
40% | |||||||
25th
|
25% | |||||||
Below 25th
|
0% |
If the percentile ranking does not equal a ranking shown in the above table, the percentage of your target number of restricted stock units that vest will be determined by a linear interpolation between the next lowest percentile shown in the table and the next highest percentile shown on the table.
•If the percentile ranking is at or above the 90th percentile, 200% of your target number of restricted stock units will vest.
•If the percentile ranking is below the 25th percentile, none of your restricted stock units will vest.
As soon as reasonably practicable following the end of the performance period, the Compensation Committee will determine and certify the extent to which Sempra Energy has met the total shareholder return performance criteria and the extent to which, if any, your restricted stock units have then vested and any such vesting shall occur immediately following such determination and certification by the Compensation Committee. You will receive the number of shares of Common Stock equal to the number of your vested restricted stock units after the Compensation Committee’s determination and certification. Also, you will receive the number of shares of Common Stock equal to your vested dividend equivalents after the Compensation Committee’s determination and certification. Certificates for the shares will be transferred to your brokerage account unless you specifically instruct otherwise. When the shares of Common Stock are issued to you, your restricted stock units (vested and unvested) and your dividend equivalents will terminate.
|
|||||
Transfer Restrictions: | You may not sell or otherwise transfer or assign your restricted stock units (or your dividend equivalents). | ||||
Dividend Equivalents & Capitalization Adjustments: |
You also have been awarded dividend equivalents with respect to your restricted stock units. Your dividend equivalents represent the right to receive additional shares of Common Stock in the future, subject to the terms and conditions of your award. Your dividend equivalents will be determined based on the dividends that you would have received had you held shares of Common Stock equal to the vested number of your restricted stock units from the date of your award to the date of the distribution of shares of Common Stock following the vesting of your restricted stock units, and assuming that the dividends were reinvested in Common Stock (and any dividends on such shares were reinvested in Common Stock). The dividends will be deemed reinvested in Common Stock in the same manner as dividends reinvested pursuant to the terms of the Sempra Energy Direct Stock Purchase Plan (also known as the Sempra Energy Dividend Reinvestment Plan).
Your dividend equivalents will be subject to the same transfer restrictions and forfeiture and vesting conditions as your restricted stock units. They will vest when and to the extent that your restricted stock units vest.
Also, your restricted stock units (and dividend equivalents), including the terms and conditions thereof, will, in the sole discretion of the Compensation Committee, be substituted or adjusted, as applicable, in accordance with the terms and conditions of the Plan. Any additional restricted stock units (and dividend equivalents) awarded to you as a result of such substitution or adjustment also will be subject to the same transfer restrictions, forfeiture and vesting conditions and other terms and conditions that are applicable to your restricted stock units (and dividend equivalents).
|
||||
No Shareholder Rights: | Your restricted stock units (and dividend equivalents) are not shares of Common Stock. You will have no rights as a shareholder unless and until shares of Common Stock are issued to you following the vesting of your restricted stock units (and dividend equivalents) as provided in this Award Agreement and the Plan. | ||||
Distribution of Shares: |
As described in “Vesting/Forfeiture” above, the Compensation Committee will determine and certify the extent to which Sempra Energy has met the performance criteria and the extent, if any, as to which your restricted stock units (and dividend equivalents) have then vested in accordance with the terms of the award.
You will receive the number of shares of Common Stock equal to the number of your restricted stock units that have vested. However, in no event will you receive under this award, and other awards granted to you under the Plan in the same fiscal year of Sempra Energy, more than the maximum number of shares of Common Stock permitted under the Plan. Also, you will receive the number of shares of Common Stock equal to your vested dividend equivalents after the Compensation Committee’s determination and certification.
You will receive the shares as soon as reasonably practicable following the Compensation Committee’s determination and certification (and in no event later than March 15, <YEAR>). Once you receive the shares of Common Stock, your vested and unvested restricted stock units (and dividend equivalents) will terminate.
|
Termination of Employment: | |||||
Termination: |
If your employment with Sempra Energy and its Subsidiaries terminates for any reason prior to the vesting of your restricted stock units (and dividend equivalents) (other than under the circumstances set forth in the following provisions of this section), all of your restricted stock units (and dividend equivalents) will be forfeited. Subject to the provisions below relating to the treatment of your restricted stock units in connection with a Change in Control, the vesting of your restricted stock units (and dividend equivalents) does not occur until the date of the Compensation Committee’s determination and certification described above.
If your employment terminates prior to a Change in Control, other than by termination for cause, and you had both completed at least five years of continuous service with Sempra Energy and its Subsidiaries AND met any of the following conditions:
1.)your employment terminates on or after December 31, <YEAR> and at the date of termination you had attained age 55; or
2.)your employment terminates on or after November 30, <YEAR> and at the date of termination you had attained age 62; or
3.)at the date of termination you had attained age 65 and you were an officer subject to the company’s mandatory retirement policy;
your restricted stock units (and dividend equivalents) will not be forfeited but will continue to be subject to the transfer restrictions and vesting conditions and other terms and conditions of this Award Agreement (subject to Code Section 409A requirements and the terms of the Plan).
If your employment terminates by reason of your death prior to the vesting of your restricted stock units and your award would otherwise be forfeited (for example, you do not meet the age and service conditions described above), your award will be deemed forfeited immediately prior to the date and time it would otherwise vest, unless, and to the extent that, prior to the date and time that the restricted stock units would otherwise vest, the Compensation Committee, in its sole discretion, takes action to waive the service requirement described above.
If your employment terminates and your restricted stock units (and dividend equivalents) would otherwise be forfeited, the Compensation Committee, in its sole discretion, may determine prior to such termination that all or a portion of such restricted stock units (and dividend equivalents) will not be forfeited but will continue to be subject to the transfer restrictions and vesting conditions and other terms and conditions of this Award Agreement (subject to Code Section 409A requirements and the terms of the Plan).
|
Termination for Cause:
|
If your employment with Sempra Energy and its Subsidiaries terminates for cause, or your employment would have been subject to termination for cause, prior to the vesting of your restricted stock units (and dividend equivalents), all of your restricted stock units (and dividend equivalents) will be forfeited.
Prior to the consummation of a Change in Control, a termination for cause is (i) the willful failure by you to substantially perform your duties with the Company (other than any such failure resulting from your incapacity due to physical or mental illness), (ii) the grossly negligent performance of such obligations referenced in clause (i) of this definition, (iii) your gross insubordination; and/or (iv) your commission of one or more acts of moral turpitude that constitute a violation of applicable law (including but not limited to a felony) which have or result in an adverse effect on the Company, monetarily or otherwise, or one or more significant acts of dishonesty. For purposes of clause (i), no act, or failure to act, on your part shall be deemed “willful” unless done, or omitted to be done, by you not in good faith and without reasonable belief that your act, or failure to act, was in the best interests of the Company. If your restricted stock units remain outstanding following a Change in Control pursuant to a Replacement Award, a termination for cause following such Change in Control shall be determined in accordance with the provisions of the Plan that define “Cause”, including reasonable notice and, if possible, a reasonable opportunity to cure as provided therein.
|
||||
Taxes:
|
|||||
Withholding Taxes: | When you become subject to withholding taxes upon distribution of the shares of Common Stock or otherwise, Sempra Energy or its Subsidiary is required to withhold taxes. Unless you instruct otherwise and pay or make arrangements satisfactory to Sempra Energy to pay these taxes, upon the distribution of your shares, Sempra Energy will withhold a sufficient number of shares of common stock that you would otherwise be entitled to receive to cover the minimum required withholding taxes and transfer to you only the remaining balance of your shares. In the event that, following a Change in Control, your restricted stock units become eligible for a distribution upon your Retirement by reason of your combined age and service, your restricted stock units may become subject to employment tax withholding prior to the distribution of shares with respect to such units. | ||||
Code Section 409A:
|
Your restricted stock units are subject to provisions of the Plan which set forth terms to comply with Code Section 409A. |
Recoupment (“Clawback”) Policy: |
The Company shall require the forfeiture, recovery or reimbursement of awards or compensation under the Plan and this award as (i) required by applicable law, or (ii) required under any policy implemented or maintained by the Company pursuant to any applicable rules or requirements of a national securities exchange or national securities association on which any securities of the Company are listed. The Company reserves the right to recoup compensation paid if it determines that the results on which the compensation was paid were not actually achieved.
The Compensation Committee may, in its sole discretion, require the recovery or reimbursement of long-term incentive compensation awards from any employee whose fraudulent or intentional misconduct materially affects the operations or financial results of the Company or its Subsidiaries.
|
||||
Retention Rights: | Neither your restricted stock unit award nor this Award Agreement gives you any right to be retained by Sempra Energy or any of its Subsidiaries in any capacity and your employer reserves the right to terminate your employment at any time, with or without cause. The value of your award will not be included as compensation or earnings for purposes of any other benefit plan offered by Sempra Energy or any of its Subsidiaries. | ||||
Change in Control: |
In the event of a Change in Control, the following terms shall apply:
•If (i) you have achieved age 55 and have completed at least five years of continuous service with Sempra Energy and its Subsidiaries as of the date of a Change in Control and your restricted stock units have not been forfeited prior to the Change in Control, (ii) your outstanding restricted stock units as of the date of a Change in Control are not subject to a “substantial risk of forfeiture” within the meaning of Code Section 409A, and/or (iii) your outstanding restricted stock units are not assumed or substituted with one or more Replacement Awards (as defined in the Plan), then in each case your outstanding restricted stock units and any associated dividend equivalents will vest immediately prior to the Change in Control with the applicable performance goals deemed to have been achieved at the greater of target level as of the date of such vesting or the actual performance level had the performance period ended on the date of the Change in Control. If the foregoing terms apply, immediately prior to the date of the Change in Control you will receive a number of shares of Common Stock equal to the number of your restricted stock units and dividend equivalents that have vested.
•If your outstanding restricted stock awards are assumed or substituted with one or more Replacement Awards, then, except as provided otherwise in an individual severance agreement or employment agreement to which you are a party, the terms set forth in the Plan shall apply with respect to such Replacement Award following the Change in Control. If the foregoing terms apply and the Replacement Award vests upon your separation from service or death, on such date, you will receive a number of shares or other property in settlement of the Replacement Awards.
|
||||
Further Actions: |
You agree to take all actions and execute all documents appropriate to carry out the provisions of this Award Agreement.
You shall be deemed to have accepted this award unless you affirmatively reject it in writing addressed to the Corporate Secretary of the Company no later than 90 days following the Date of Award.
You also appoint as your attorney-in-fact each individual who at the time of so acting is the Secretary or an Assistant Secretary of Sempra Energy with full authority to effect any transfer of any shares of Common Stock distributable to you, including any transfer to pay withholding taxes, that is authorized by this Award Agreement.
|
||||
Applicable Law: | This Award Agreement will be interpreted and enforced under the laws of the State of California. |
Other Agreements: | In the event of any conflict between the terms of this Award Agreement and any written employment, severance or other employment-related agreement between you and Sempra Energy, the terms of this Award Agreement, or the terms of such other agreement, whichever are more favorable to you, shall prevail, provided that in each case a conflict shall be resolved in a manner consistent with the intent that your restricted stock units comply with Code Section 409A. In the event of a conflict between the terms of this Award Agreement and the Plan, the Plan document shall prevail. |
ARTICLE I. TITLE AND DEFINITIONS | ||||||||
1.1 Title.
|
||||||||
1.2 Definitions.
|
||||||||
ARTICLE II. PARTICIPATION | ||||||||
2.1 Commencement of Participation
|
||||||||
2.2 Newly Appointed or Elected Directors
|
9
|
|||||||
ARTICLE III. CONTRIBUTIONS |
9
|
|||||||
3.1 Elections to Defer Compensation
|
9 | |||||||
3.2 Distribution Elections.
|
||||||||
3.3 Employer Matching Contributions
|
17
|
|||||||
3.4 FICA and Other Taxes.
|
18
|
|||||||
ARTICLE IV. INVESTMENTS | ||||||||
4.1 Measurement Funds.
|
||||||||
4.2 Investment Elections.
|
19
|
|||||||
4.3 Compliance with Section 16 of the Exchange Act.
|
20
|
|||||||
ARTICLE V. ACCOUNTS |
21
|
|||||||
5.1 Accounts.
|
21
|
|||||||
5.2 Subaccounts.
|
||||||||
ARTICLE VI. VESTING |
22
|
|||||||
ARTICLE VII. DISTRIBUTIONS
|
23
|
|||||||
7.1 Distribution of Accounts.
|
23
|
|||||||
7.2 Hardship Distribution.
|
25
|
|||||||
7.3 Effect of a Change in Control.
|
26
|
|||||||
7.4 Inability to Locate Participant.
|
27
|
|||||||
7.5 Prohibition on Acceleration of Distributions.
|
27
|
|||||||
7.6 Distributions Pursuant To QDROs.
|
27
|
|||||||
ARTICLE VIII. ADMINISTRATION
|
28
|
|||||||
8.1 Committee.
|
28
|
|||||||
8.2 Administrator.
|
28
|
8.3 Committee Action.
|
28
|
|||||||
8.4 Powers and Duties of the Committee.
|
28
|
|||||||
8.5 Construction and Interpretation.
|
29
|
|||||||
8.6 Information.
|
29
|
|||||||
8.7 Compensation, Expenses and Indemnity.
|
29
|
|||||||
8.8 Quarterly Statements.
|
30
|
|||||||
8.9 Disputes.
|
30
|
|||||||
ARTICLE IX. MISCELLANEOUS |
31
|
|||||||
9.1 Unsecured General Creditor.
|
31
|
|||||||
9.2 Restriction Against Assignment.
|
31
|
|||||||
9.3 Amendment, Modification, Suspension or Termination.
|
32
|
|||||||
9.4 Designation of Beneficiary.
|
32
|
|||||||
9.5 Insurance.
|
33
|
|||||||
9.6 Governing Law.
|
33
|
|||||||
9.7 Receipt of Release.
|
33
|
|||||||
9.8 Payments Subject to Section 162(m) of the Code
|
33
|
|||||||
9.9 Payments on Behalf of Persons Under Incapacity.
|
34
|
|||||||
9.10 Limitation of Rights
|
34
|
|||||||
9.11 Exempt ERISA Plan
|
34
|
|||||||
9.12 Notice
|
34
|
|||||||
9.13 Errors and Misstatements
|
35
|
|||||||
9.14 Pronouns and Plurality
|
35
|
|||||||
9.15 Severability
|
35
|
|||||||
9.16 Status
|
35
|
|||||||
9.17 Headings.
|
35
|
|||||||
ARTICLE X. Employees of Sempra Energy Trading Corporation and Sempra Energy Solutions
LLC |
35
|
|||||||
ARTICLE XI. SECTION 409A OF THE CODE |
37
|
SEMPRA ENERGY | |||||
/s/ G. Joyce Rowland
|
|||||
G. Joyce Rowland
|
|||||
Senior Vice President and Chief Culture Officer
|
|||||
April 15, 2019 | |||||
Date | |||||
EXECUTIVE | |||||
/s/ Jeffery L. Walker
|
|||||
Jeffery L. Walker
|
|||||
Vice President – Customer Solutions
|
|||||
April 15, 2019 | |||||
Date | |||||
Exhibit 21.1 | ||||||||
Sempra Energy | ||||||||
Schedule of Certain Subsidiaries | ||||||||
at December 31, 2020 | ||||||||
Subsidiary | State of Incorporation or Other Jurisdiction | |||||||
Infraestructura Energética Nova, S.A.B. | Mexico | |||||||
San Diego Gas & Electric Company | California | |||||||
Sempra Texas Intermediate Holding Company LLC | Delaware | |||||||
Southern California Gas Company | California |
February 25, 2021 | /s/ J. Walker Martin | ||||
J. Walker Martin | |||||
Chief Executive Officer |
February 25, 2021 | /s/ Trevor I. Mihalik | ||||
Trevor I. Mihalik | |||||
Chief Financial Officer |
February 25, 2021 | /s/ Caroline A. Winn | ||||
Caroline A. Winn | |||||
Chief Executive Officer |
February 25, 2021 | /s/ Bruce A. Folkmann | ||||
Bruce A. Folkmann | |||||
Chief Financial Officer |
February 25, 2021 | /s/ Scott D. Drury | ||||
Scott D. Drury | |||||
Chief Executive Officer |
February 25, 2021 | /s/ Mia L. DeMontigny | ||||
Mia L. DeMontigny | |||||
Chief Financial Officer |
February 25, 2021 | /s/ J. Walker Martin | ||||
J. Walker Martin | |||||
Chief Executive Officer |
February 25, 2021 | /s/ Trevor I. Mihalik | ||||
Trevor I. Mihalik | |||||
Chief Financial Officer |
February 25, 2021 | /s/ Caroline A. Winn | ||||
Caroline A. Winn | |||||
Chief Executive Officer |
February 25, 2021 | /s/ Bruce A. Folkmann | ||||
Bruce A. Folkmann | |||||
Chief Financial Officer |
February 25, 2021 | /s/ Scott D. Drury | ||||
Scott D. Drury | |||||
Chief Executive Officer |
February 25, 2021 | /s/ Mia L. DeMontigny | ||||
Mia L. DeMontigny | |||||
Chief Financial Officer |
When the following terms and abbreviations appear in the text of this report, they have the meanings indicated below. | |||||||||||||||||
acquisition accounting | The acquisition method of accounting for a business combination as prescribed by GAAP, whereby the cost or “acquisition price” of a business combination, including the amount paid for the equity and direct transaction costs, are allocated to identifiable assets and liabilities (including intangible assets) based upon their fair values. The excess of the purchase price over the fair values of assets and liabilities is recorded as goodwill | ||||||||||||||||
AMS | Advanced metering system | ||||||||||||||||
ASU | Accounting Standards Update | ||||||||||||||||
CARES Act | Federal “Coronavirus Aid, Relief, and Economic Security” Act, enacted on March 27, 2020, as amended | ||||||||||||||||
Code | The Internal Revenue Code of 1986, as amended | ||||||||||||||||
COVID-19 | Coronavirus Disease 2019, the disease caused by the novel strain of coronavirus reported to have surfaced in late 2019 | ||||||||||||||||
CP Notes | Unsecured commercial paper notes issued under Oncor’s CP Program | ||||||||||||||||
CP Program | Commercial paper program | ||||||||||||||||
Credit Facility | Revolving Credit Agreement, dated as of November 17, 2017, among Oncor, as borrower, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent and swingline lender, and the fronting banks from time to time party thereto, as amended | ||||||||||||||||
DCRF | Distribution cost recovery factor | ||||||||||||||||
Deed of Trust | Deed of Trust, Security Agreement and Fixture Filing, dated as of May 15, 2008, made by Oncor to and for the benefit of The Bank of New York Mellon Trust Company, N.A. (as successor to The Bank of New York Mellon, formerly The Bank of New York), as collateral agent, as amended | ||||||||||||||||
Disinterested Director | Refers to a member of our and Oncor’s board of directors who is a “disinterested director” pursuant to each company’s limited liability company agreement. The limited liability company agreements of Oncor and Oncor Holdings provide that disinterested directors shall (i) be independent directors in all material respects under the rules of the New York Stock Exchange in relation to Sempra or its subsidiaries and affiliated entities and any entity with a direct or indirect ownership interest in Oncor or Oncor Holdings, and (ii) shall have no material relationship with Sempra or its subsidiaries or affiliated entities or any entity with a direct or indirect ownership interest in Oncor or Oncor Holdings, currently or within the previous ten years | ||||||||||||||||
EECRF | Energy efficiency cost recovery factor | ||||||||||||||||
EFH Bankruptcy Proceedings | Refers to voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code filed in U.S. Bankruptcy Court for the District of Delaware on April 29, 2014 by EFH Corp. and the substantial majority of its direct and indirect subsidiaries. The Oncor Ring-Fenced Entities were not parties to the EFH Bankruptcy Proceedings | ||||||||||||||||
EFH Corp. | Refers to Energy Future Holdings Corp., a holding company, and/or its subsidiaries, depending on context. Renamed Sempra Texas Holdings Corp. upon closing of the Sempra Acquisition |
EFIH | Refers to Energy Future Intermediate Holding Company LLC, a direct, wholly owned subsidiary of EFH Corp. and the direct parent of Oncor Holdings. Renamed Sempra Texas Intermediate Holding Company LLC upon closing of the Sempra Acquisition | ||||||||||||||||
ERCOT | Electric Reliability Council of Texas, Inc., the independent system operator and the regional coordinator of various electricity systems within Texas | ||||||||||||||||
ERISA | Employee Retirement Income Security Act of 1974, as amended | ||||||||||||||||
FASB | Financial Accounting Standards Board | ||||||||||||||||
FERC | U.S. Federal Energy Regulatory Commission | ||||||||||||||||
Fitch | Fitch Ratings, Ltd. (a credit rating agency) | ||||||||||||||||
GAAP | Generally accepted accounting principles of the U.S. | ||||||||||||||||
InfraREIT | InfraREIT, Inc., which was merged with and into a wholly owned subsidiary of Oncor on May 16, 2019 in the InfraREIT Acquisition, with the surviving entity being a wholly owned subsidiary of Oncor renamed Oncor NTU Holdings Company LLC | ||||||||||||||||
InfraREIT Acquisition | Refers to Oncor’s acquisition of all of the equity interests of InfraREIT and InfraREIT Partners on May 16, 2019 pursuant to the transactions contemplated by the InfraREIT Merger Agreement and the SDTS-SU Asset Exchange | ||||||||||||||||
InfraREIT Merger Agreement | Refers to the Agreement and Plan of Merger, dated as of October 18, 2018, among Oncor, 1912 Merger Sub LLC (a wholly owned, subsidiary of Oncor), Oncor T&D Partners, LP (a wholly owned indirect subsidiary of Oncor), InfraREIT and InfraREIT Partners, which was completed on May 16, 2019 | ||||||||||||||||
InfraREIT Partners | InfraREIT Partners, LP, a subsidiary of InfraREIT, which, as a result of the InfraREIT Acquisition, became an indirect wholly owned subsidiary of Oncor and was renamed Oncor NTU Partnership LP | ||||||||||||||||
IRS | U.S. Internal Revenue Service | ||||||||||||||||
kV | Kilovolts | ||||||||||||||||
kWh | Kilowatt-hours | ||||||||||||||||
LIBOR | London Interbank Offered Rate, an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market | ||||||||||||||||
LP&L | Lubbock Power & Light | ||||||||||||||||
Moody’s | Moody’s Investors Service, Inc. (a credit rating agency) | ||||||||||||||||
MW | Megawatts | ||||||||||||||||
MWh | Megawatt-hours | ||||||||||||||||
NERC | North American Electric Reliability Corporation | ||||||||||||||||
Note Purchase Agreement | Refers to the Note Purchase Agreement, dated May 6, 2019, pursuant to which Oncor issued its 3.86% Senior Notes, Series A, due December 3, 2025 and 3.86% Senior Notes, Series B, due January 14, 2026 | ||||||||||||||||
NTU | Oncor Electric Delivery Company NTU LLC (formerly SDTS until the closing of the InfraREIT Acquisition), a wholly owned, indirect subsidiary of Oncor acquired as part of the InfraREIT Acquisition | ||||||||||||||||
Oncor | Oncor Electric Delivery Company LLC, a direct, majority-owned subsidiary of Oncor Holdings | ||||||||||||||||
Oncor Holdings
|
Oncor Electric Delivery Holdings Company LLC, the direct majority owner (80.25% equity interest) of Oncor. Oncor Holdings is wholly owned by STIH | ||||||||||||||||
Oncor OPEB Plans | Refers to plans sponsored by Oncor that offer certain postretirement health care and life insurance benefits to eligible current and former Oncor employees, certain eligible current and former EFH Corp. and Vistra employees, and their eligible dependents | ||||||||||||||||
Oncor Retirement Plan | Refers to a defined benefit pension plan sponsored by Oncor |
Oncor Ring-Fenced Entities | Refers to Oncor Holdings and its direct and indirect subsidiaries, including Oncor and Oncor’s direct and indirect subsidiaries | ||||||||||||||||
OPEB | Other postretirement employee benefits | ||||||||||||||||
PUCT | Public Utility Commission of Texas | ||||||||||||||||
PURA | Texas Public Utility Regulatory Act | ||||||||||||||||
REP | Retail electric provider | ||||||||||||||||
ROU | Right-of-use | ||||||||||||||||
S&P | S&P Global Ratings, a division of S&P Global Inc. (a credit rating agency) | ||||||||||||||||
SDTS | Sharyland Distribution & Transmission Services, L.L.C., an indirect subsidiary of InfraREIT, which was renamed Oncor Electric Delivery Company NTU LLC in connection with the InfraREIT Acquisition | ||||||||||||||||
SDTS-SU Asset Exchange | Refers to the transactions contemplated by the Agreement and Plan of Merger, dated as of October 18, 2018, by and among SU, SDTS and Oncor pursuant to which SU and SDTS exchanged certain assets as a condition to the closing of the transactions contemplated by the InfraREIT Merger Agreement | ||||||||||||||||
Sempra | Sempra Energy | ||||||||||||||||
Sempra Acquisition | Refers to the transactions contemplated by the plan of reorganization confirmed in the EFH Bankruptcy Proceedings and that certain Agreement and Plan of Merger, dated as of August 21, 2017, by and among EFH Corp., EFIH, Sempra and one of Sempra’s wholly owned subsidiaries, pursuant to which Sempra indirectly acquired the 80.03% of Oncor’s membership interests owned indirectly by EFH Corp. and EFIH. The transactions closed March 9, 2018 | ||||||||||||||||
Sempra-Sharyland Transaction | Refers to Sempra’s May 16, 2019 acquisition of an indirect 50% ownership interest in Sharyland Holdings, L.P. | ||||||||||||||||
Sempra Order | Refers to the final order issued by the PUCT in PUCT Docket No. 47675 approving the Sempra Acquisition | ||||||||||||||||
Sharyland | Refers to Sharyland Utilities, L.L.C. (formerly SU), a subsidiary of Sharyland Holdings, L.P | ||||||||||||||||
Sponsor Group | Refers collectively to certain investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P., TPG Global, LLC and GS Capital Partners, an affiliate of Goldman, Sachs & Co., that controlled Texas Holdings | ||||||||||||||||
STH | Refers to Sempra Texas Holdings Corp., a Texas corporation (formerly EFH Corp. prior to the closing of the Sempra Acquisition), which is wholly owned by Sempra and the direct parent of STIH | ||||||||||||||||
STIH | Refers to Sempra Texas Intermediate Holding Company LLC., a Delaware limited liability company (formerly EFIH prior to the closing of the Sempra Acquisition), and the sole member of Oncor Holdings following the Sempra Acquisition | ||||||||||||||||
SU | Refers to Sharyland Utilities, L.P., which was converted into Sharyland on May 16, 2019 | ||||||||||||||||
Supplemental Retirement Plan | Refers to the Oncor Supplemental Retirement Plan | ||||||||||||||||
TCJA | “Tax Cuts and Jobs Act,” enacted on December 22, 2017 | ||||||||||||||||
TCOS | Transmission cost of service | ||||||||||||||||
TCRF | Transmission cost recovery factor | ||||||||||||||||
Texas Holdings |
Refers to Texas Energy Future Holdings Limited Partnership, a limited partnership controlled by the Sponsor Group that owned substantially all of the common stock of EFH Corp. prior to the closing of the Sempra Acquisition
|
||||||||||||||||
Texas margin tax | A privilege tax imposed on taxable entities chartered/organized or doing business in the State of Texas that, for accounting purposes, is reported as an income tax |
Texas Transmission | Refers to Texas Transmission Investment LLC, a limited liability company that owns a 19.75% equity interest in Oncor. Texas Transmission is an entity indirectly owned by OMERS Administration Corporation (acting through its infrastructure investment entity, OMERS Infrastructure Management Inc.) and GIC Private Limited | ||||||||||||||||
U.S. | United States of America | ||||||||||||||||
Vistra | Refers to Vistra Energy Corp., and/or its subsidiaries, depending on context, formerly a subsidiary of EFH Corp. until October 2016 | ||||||||||||||||
Vistra Retirement Plan | Refers to a defined benefit pension plan sponsored by an affiliate of Vistra |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Operating revenues (Note 3) | $ | 4,511 | $ | 4,347 | $ | 4,101 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Wholesale transmission service | 975 | 1,005 | 962 | ||||||||||||||||||||||||||
Operation and maintenance (Note 12) | 925 | 899 | 875 | ||||||||||||||||||||||||||
Depreciation and amortization | 786 | 723 | 671 | ||||||||||||||||||||||||||
Income taxes (Notes 1, 4 and 12) | 149 | 138 | 152 | ||||||||||||||||||||||||||
Taxes other than amounts related to income taxes | 538 | 508 | 496 | ||||||||||||||||||||||||||
Total operating expenses | 3,373 | 3,273 | 3,156 | ||||||||||||||||||||||||||
Operating income | 1,138 | 1,074 | 945 | ||||||||||||||||||||||||||
Other deductions and (income) - net (Note 13) | 33 | 63 | 84 | ||||||||||||||||||||||||||
Nonoperating income tax benefit (Note 4) | (3) | (7) | (10) | ||||||||||||||||||||||||||
Interest expense and related charges (Note 13) | 405 | 375 | 351 | ||||||||||||||||||||||||||
Net income | 703 | 643 | 520 | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (141) | (129) | (107) | ||||||||||||||||||||||||||
Net income attributable to Oncor Holdings | $ | 562 | $ | 514 | $ | 413 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Net income | $ | 703 | $ | 643 | $ | 520 | |||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Cash flow hedges – derivative value net gain (loss) recognized in net income (net of tax expense (benefit) of ($5), $- and $1) (Notes 1 and 8) | (21) | 2 | 2 | ||||||||||||||||||||||||||
Defined benefit pension plans (net of tax expense of $2, $4 and $6) (Notes 8 and 10) | 7 | 22 | (25) | ||||||||||||||||||||||||||
Total other comprehensive income (loss) | (14) | 24 | (23) | ||||||||||||||||||||||||||
Comprehensive income | 689 | 667 | 497 | ||||||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | (139) | (134) | (95) | ||||||||||||||||||||||||||
Comprehensive income attributable to Oncor Holdings | $ | 550 | $ | 533 | $ | 402 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Cash flows — operating activities: | |||||||||||||||||||||||||||||
Net income | $ | 703 | $ | 643 | $ | 520 | |||||||||||||||||||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||||||||||||||||||||
Depreciation and amortization, including regulatory amortization | 866 | 806 | 777 | ||||||||||||||||||||||||||
Deferred income taxes – net | 47 | 58 | 29 | ||||||||||||||||||||||||||
Other – net | (1) | (4) | (3) | ||||||||||||||||||||||||||
Changes in operating assets and liabilities: | - | ||||||||||||||||||||||||||||
Accounts receivable — trade | (78) | (53) | 68 | ||||||||||||||||||||||||||
Inventories | 4 | (30) | (25) | ||||||||||||||||||||||||||
Accounts payable — trade | (29) | 21 | 30 | ||||||||||||||||||||||||||
Regulatory accounts related to reconcilable tariffs (Note 2) | 33 | (44) | 66 | ||||||||||||||||||||||||||
Other — assets | (78) | (208) | 28 | ||||||||||||||||||||||||||
Other — liabilities | 58 | 76 | (26) | ||||||||||||||||||||||||||
Cash provided by operating activities | 1,525 | 1,265 | 1,464 | ||||||||||||||||||||||||||
Cash flows — financing activities: | |||||||||||||||||||||||||||||
Issuances of long-term debt (Note 6) | 1,810 | 2,460 | 1,150 | ||||||||||||||||||||||||||
Repayments of long-term debt (Note 6) | (1,164) | (1,094) | (825) | ||||||||||||||||||||||||||
Proceeds of business acquisition bridge loan | - | 600 | - | ||||||||||||||||||||||||||
Repayment of business acquisition bridge loan | - | (600) | - | ||||||||||||||||||||||||||
Net increase (decrease) in short-term borrowings (Note 5) | 24 | (882) | (137) | ||||||||||||||||||||||||||
Equity contribution from member | 632 | 1,587 | 256 | ||||||||||||||||||||||||||
Equity contribution from noncontrolling interest | 156 | 391 | 54 | ||||||||||||||||||||||||||
Distributions to member (Note 8) | (286) | (246) | (149) | ||||||||||||||||||||||||||
Distributions to noncontrolling interests | (70) | (63) | (42) | ||||||||||||||||||||||||||
Purchase of 0.22% interest in Oncor from noncontrolling interest | - | - | (26) | ||||||||||||||||||||||||||
Debt discount, financing and reacquisition costs – net | (54) | (39) | (14) | ||||||||||||||||||||||||||
Cash provided by financing activities | 1,048 | 2,114 | 267 | ||||||||||||||||||||||||||
Cash flows — investing activities: | |||||||||||||||||||||||||||||
Capital expenditures (Note 12) | (2,540) | (2,097) | (1,767) | ||||||||||||||||||||||||||
Business acquisition (Note 14) | - | (1,324) | - | ||||||||||||||||||||||||||
Expenditures for third party in joint project | (96) | - | - | ||||||||||||||||||||||||||
Reimbursement from third party in joint project | 66 | - | - | ||||||||||||||||||||||||||
Other – net | 20 | 43 | 18 | ||||||||||||||||||||||||||
Cash used in investing activities | (2,550) | (3,378) | (1,749) | ||||||||||||||||||||||||||
Net change in cash and cash equivalents | 23 | 1 | (18) | ||||||||||||||||||||||||||
Cash and cash equivalents — beginning balance | 4 | 3 | 21 | ||||||||||||||||||||||||||
Cash and cash equivalents — ending balance | $ | 27 | $ | 4 | $ | 3 |
At December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 27 | $ | 4 | ||||||||||||||||
Trade accounts receivable – net (Note 13) | 760 | 661 | ||||||||||||||||||
Income taxes receivable from member (Note 12) | 14 | 4 | ||||||||||||||||||
Materials and supplies inventories — at average cost | 144 | 148 | ||||||||||||||||||
Prepayments and other current assets | 100 | 96 | ||||||||||||||||||
Total current assets | 1,045 | 913 | ||||||||||||||||||
Investments and other property (Note 13) | 142 | 133 | ||||||||||||||||||
Property, plant and equipment – net (Note 13) | 21,225 | 19,370 | ||||||||||||||||||
Goodwill (Notes 1 and 13) | 4,628 | 4,628 | ||||||||||||||||||
Regulatory assets (Note 2) | 1,779 | 1,775 | ||||||||||||||||||
Operating lease ROU, third-party joint project and other assets (Notes 1 and 7) | 248 | 106 | ||||||||||||||||||
Total assets | $ | 29,067 | $ | 26,925 | ||||||||||||||||
LIABILITIES AND MEMBERSHIP INTERESTS | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Short-term borrowings (Note 5) | $ | 70 | $ | 46 | ||||||||||||||||
Long-term debt due currently (Note 6) | - | 608 | ||||||||||||||||||
Trade accounts payable | 392 | 394 | ||||||||||||||||||
Income taxes payable to member (Note 12) | 23 | 22 | ||||||||||||||||||
Accrued taxes other than income taxes | 269 | 236 | ||||||||||||||||||
Accrued interest | 87 | 83 | ||||||||||||||||||
Operating lease and other current liabilities (Note 7) | 279 | 237 | ||||||||||||||||||
Total current liabilities | 1,120 | 1,626 | ||||||||||||||||||
Long-term debt, less amounts due currently (Note 6) | 9,229 | 8,017 | ||||||||||||||||||
Accumulated deferred income taxes (Notes 1, 4 and 12) | 1,312 | 1,223 | ||||||||||||||||||
Regulatory liabilities (Note 2) | 2,855 | 2,793 | ||||||||||||||||||
Employee benefit obligations (Note 10) | 1,808 | 1,834 | ||||||||||||||||||
Operating lease, third-party joint project and other obligations (Note 13) | 407 | 258 | ||||||||||||||||||
Total liabilities | 16,731 | 15,751 | ||||||||||||||||||
Commitments and contingencies (Note 7) | ||||||||||||||||||||
Membership interests (Note 8): | ||||||||||||||||||||
Capital account | 9,701 | 8,793 | ||||||||||||||||||
Accumulated other comprehensive loss | (102) | (92) | ||||||||||||||||||
Oncor Holdings membership interest | 9,599 | 8,701 | ||||||||||||||||||
Noncontrolling interests in subsidiary | 2,737 | 2,473 | ||||||||||||||||||
Total membership interests | 12,336 | 11,174 | ||||||||||||||||||
Total liabilities and membership interests | $ | 29,067 | $ | 26,925 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Oncor Holdings Membership Interests (Note 8) | |||||||||||||||||||||||||||||
Capital account: | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 8,793 | $ | 6,920 | $ | 6,411 | |||||||||||||||||||||||
Net income attributable to Oncor Holdings | 562 | 514 | 413 | ||||||||||||||||||||||||||
Distributions to member | (286) | (246) | (149) | ||||||||||||||||||||||||||
Fair value of purchase of 0.22% interest in Oncor from noncontrolling interest over carrying value | - | - | (11) | ||||||||||||||||||||||||||
Equity contribution from member | 632 | 1,587 | 256 | ||||||||||||||||||||||||||
ASU 2018-02 stranded tax effects (Note 1) | - | 18 | - | ||||||||||||||||||||||||||
Balance at end of period | 9,701 | 8,793 | 6,920 | ||||||||||||||||||||||||||
Accumulated other comprehensive income (loss), net of tax effects: | |||||||||||||||||||||||||||||
Balance at beginning of period | (92) | (92) | (81) | ||||||||||||||||||||||||||
Net effects of cash flow hedges (net of tax expense (benefit) of ($4), $- and $1) | (16) | 1 | 2 | ||||||||||||||||||||||||||
Defined benefit pension plans (net of tax of $-, $4 and $3) | 6 | 17 | (13) | ||||||||||||||||||||||||||
ASU 2018-02 stranded tax effects (Note 1) | - | (18) | - | ||||||||||||||||||||||||||
Balance at end of period | (102) | (92) | (92) | ||||||||||||||||||||||||||
Oncor Holdings membership interests at end of period | $ | 9,599 | $ | 8,701 | $ | 6,828 | |||||||||||||||||||||||
Noncontrolling interests in subsidiary (Note 9): | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,473 | $ | 1,951 | $ | 1,822 | |||||||||||||||||||||||
Net income attributable to noncontrolling interests | 141 | 129 | 107 | ||||||||||||||||||||||||||
Distributions to noncontrolling interests | (70) | (63) | (42) | ||||||||||||||||||||||||||
Purchase of 0.22% interest in Oncor from noncontrolling interest | - | - | (15) | ||||||||||||||||||||||||||
Equity contribution from noncontrolling interests | 156 | 391 | 54 | ||||||||||||||||||||||||||
Change related to future tax distributions from Oncor | 39 | 60 | 37 | ||||||||||||||||||||||||||
Net effects of cash flow hedges (net of tax expense (benefit) of ($1), $- and $-) | (4) | - | - | ||||||||||||||||||||||||||
Defined benefit pension plans (net of tax expense of $-, $- and $9) | 2 | 6 | (12) | ||||||||||||||||||||||||||
ASU 2018-02 stranded tax effects (Note 1) | - | (1) | - | ||||||||||||||||||||||||||
Noncontrolling interests in subsidiary at end of period | $ | 2,737 | $ | 2,473 | $ | 1,951 | |||||||||||||||||||||||
Total membership interests at end of period | $ | 12,336 | $ | 11,174 | $ | 8,779 |
Remaining Rate Recovery/Amortization Period at | At December 31, | ||||||||||||||||||||||||||||||||||
December 31, 2020 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Regulatory assets: | |||||||||||||||||||||||||||||||||||
Employee retirement liability (a)(b)(c) | To be determined | $ | 672 | $ | 623 | ||||||||||||||||||||||||||||||
Employee retirement costs being amortized | 7 years | 227 | 262 | ||||||||||||||||||||||||||||||||
Employee retirement costs incurred since the last rate review period (b) | To be determined | 67 | 79 | ||||||||||||||||||||||||||||||||
Self-insurance reserve (primarily storm recovery costs) being amortized | 7 years | 266 | 309 | ||||||||||||||||||||||||||||||||
Self-insurance reserve incurred since the last rate review period (primarily storm related) (b) | To be determined | 256 | 238 | ||||||||||||||||||||||||||||||||
Debt reacquisition costs | Lives of related debt | 25 | 29 | ||||||||||||||||||||||||||||||||
Under-recovered AMS costs | 7 years | 149 | 170 | ||||||||||||||||||||||||||||||||
Energy efficiency performance bonus (a) | 1 year or less | 14 | 9 | ||||||||||||||||||||||||||||||||
Wholesale distribution substation service | To be determined | 55 | 34 | ||||||||||||||||||||||||||||||||
Unrecovered expenses related to COVID-19 (d) | To be determined | 27 | - | ||||||||||||||||||||||||||||||||
Other regulatory assets | Various | 21 | 22 | ||||||||||||||||||||||||||||||||
Total regulatory assets | 1,779 | 1,775 | |||||||||||||||||||||||||||||||||
Regulatory liabilities: | |||||||||||||||||||||||||||||||||||
Estimated net removal costs | Lives of related assets | 1,262 | 1,178 | ||||||||||||||||||||||||||||||||
Excess deferred taxes | Primarily over lives of related assets | 1,508 | 1,574 | ||||||||||||||||||||||||||||||||
Over-recovered wholesale transmission service expense (a) | 1 year or less | 52 | 30 | ||||||||||||||||||||||||||||||||
Unamortized gain on reacquisition of debt | Lives of related debt | 27 | - | ||||||||||||||||||||||||||||||||
Other regulatory liabilities | Various | 6 | 11 | ||||||||||||||||||||||||||||||||
Total regulatory liabilities | 2,855 | 2,793 | |||||||||||||||||||||||||||||||||
Net regulatory assets (liabilities) | $ | (1,076) | $ | (1,018) |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Operating revenues | ||||||||||||||||||||
Revenues contributing to earnings: | ||||||||||||||||||||
Distribution base revenues | $ | 2,156 | $ | 2,143 | ||||||||||||||||
Transmission base revenues (TCOS revenues) | ||||||||||||||||||||
Billed to third-party wholesale customers | 803 | 681 | ||||||||||||||||||
Billed to REPs serving Oncor distribution customers, through TCRF | 446 | 391 | ||||||||||||||||||
Total transmission base revenues | 1,249 | 1,072 | ||||||||||||||||||
Other miscellaneous revenues | 87 | 77 | ||||||||||||||||||
Total revenues contributing to earnings | 3,492 | 3,292 | ||||||||||||||||||
Revenues collected for pass-through expenses: | ||||||||||||||||||||
TCRF – third-party wholesale transmission service | 975 | 1,005 | ||||||||||||||||||
EECRF | 44 | 50 | ||||||||||||||||||
Revenues collected for pass-through expenses | 1,019 | 1,055 | ||||||||||||||||||
Total operating revenues | $ | 4,511 | $ | 4,347 |
At December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Deferred Tax Assets: | ||||||||||||||||||||
Section 704c income | $ | 211 | $ | 199 | ||||||||||||||||
Total | 211 | 199 | ||||||||||||||||||
Deferred Tax Liabilities: | ||||||||||||||||||||
Partnership outside basis difference | 85 | 85 | ||||||||||||||||||
Basis difference in partnership | 1,438 | 1,337 | ||||||||||||||||||
Total | 1,523 | 1,422 | ||||||||||||||||||
Deferred tax liability - net | $ | 1,312 | $ | 1,223 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Reported in operating expenses: | |||||||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||||||
U.S. federal | $ | 101 | $ | 69 | $ | 112 | |||||||||||||||||||||||
State | 22 | 22 | 21 | ||||||||||||||||||||||||||
Deferred U.S. federal | 27 | 49 | 21 | ||||||||||||||||||||||||||
Amortization of investment tax credits | (1) | (2) | (2) | ||||||||||||||||||||||||||
Total reported in operating expenses | 149 | 138 | 152 | ||||||||||||||||||||||||||
Reported in other income and deductions: | |||||||||||||||||||||||||||||
Current U.S. federal | (23) | (16) | (18) | ||||||||||||||||||||||||||
Deferred U.S. federal | 20 | 9 | 8 | ||||||||||||||||||||||||||
Total reported in other income and deductions | (3) | (7) | (10) | ||||||||||||||||||||||||||
Total provision for income taxes | $ | 146 | $ | 131 | $ | 142 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Income before income taxes | $ | 849 | $ | 774 | $ | 662 | |||||||||||||||||||||||
Income taxes at the U.S. federal statutory rate of 21% | $ | 178 | $ | 163 | $ | 139 | |||||||||||||||||||||||
Amortization of investment tax credits – net of deferred tax effect | (1) | (2) | (2) | ||||||||||||||||||||||||||
Amortization of excess deferred taxes | (52) | (52) | (18) | ||||||||||||||||||||||||||
Texas margin tax, net of federal tax benefit | 18 | 17 | 17 | ||||||||||||||||||||||||||
Other | 3 | 5 | 6 | ||||||||||||||||||||||||||
Income tax expense | $ | 146 | $ | 131 | $ | 142 | |||||||||||||||||||||||
Effective rate | 17.2% | 16.9% | 21.5% |
At December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Total credit facility borrowing capacity | $ | 2,000 | $ | 2,000 | ||||||||||||||||
Commercial paper outstanding (a) | (70) | (46) | ||||||||||||||||||
Credit facility outstanding (b) | - | - | ||||||||||||||||||
Letters of credit outstanding (c) | (9) | (10) | ||||||||||||||||||
Available unused credit | $ | 1,921 | $ | 1,944 |
December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Fixed Rate Secured: | ||||||||||||||||||||
5.75% Senior Notes due September 30, 2020 | $ | - | $ | 126 | ||||||||||||||||
8.50% Senior Notes, Series C, due December 30, 2020 | - | 14 | ||||||||||||||||||
4.10% Senior Notes, due June 1, 2022 | 400 | 400 | ||||||||||||||||||
7.00% Debentures due September 1, 2022 | 482 | 482 | ||||||||||||||||||
2.75% Senior Notes due June 1, 2024 | 500 | 500 | ||||||||||||||||||
2.95% Senior Notes due April 1, 2025 | 350 | 350 | ||||||||||||||||||
0.55% Senior Notes due October 1, 2025 | 450 | - | ||||||||||||||||||
3.86% Senior Notes, Series A, due December 3, 2025 | 174 | 174 | ||||||||||||||||||
3.86% Senior Notes, Series B, due January 14, 2026 | 38 | 38 | ||||||||||||||||||
3.70% Senior Notes due November 15, 2028 | 650 | 650 | ||||||||||||||||||
5.75% Senior Notes due March 15, 2029 | 318 | 318 | ||||||||||||||||||
7.25% Senior Notes, Series B, due December 30, 2029 | - | 36 | ||||||||||||||||||
2.75% Senior Notes due May 15, 2030 | 400 | - | ||||||||||||||||||
6.47% Senior Notes, Series A, due September 30, 2030 | - | 83 | ||||||||||||||||||
7.00% Senior Notes due May 1, 2032 | 494 | 500 | ||||||||||||||||||
7.25% Senior Notes due January 15, 2033 | 323 | 350 | ||||||||||||||||||
7.50% Senior Notes due September 1, 2038 | 300 | 300 | ||||||||||||||||||
5.25% Senior Notes due September 30, 2040 | 475 | 475 | ||||||||||||||||||
4.55% Senior Notes due December 1, 2041 | 400 | 400 | ||||||||||||||||||
5.30% Senior Notes due June 1, 2042 | 348 | 500 | ||||||||||||||||||
3.75% Senior Notes due April 1, 2045 | 550 | 550 | ||||||||||||||||||
3.80% Senior Notes due September 30, 2047 | 325 | 325 | ||||||||||||||||||
4.10% Senior Notes due November 15, 2048 | 450 | 450 | ||||||||||||||||||
3.80% Senior Notes, due June 1, 2049 | 500 | 500 | ||||||||||||||||||
3.10% Senior Notes, due September 15, 2049 | 700 | 700 | ||||||||||||||||||
3.70% Senior Notes due May 15, 2050 | 400 | - | ||||||||||||||||||
5.35% Senior Notes due October 1, 2052 | 300 | - | ||||||||||||||||||
Secured long-term debt | 9,327 | 8,221 | ||||||||||||||||||
Variable Rate Unsecured: | ||||||||||||||||||||
Term loan credit agreement maturing October 6, 2020 | - | 460 | ||||||||||||||||||
Total long-term debt | 9,327 | 8,681 | ||||||||||||||||||
Unamortized discount and debt issuance costs | (98) | (56) | ||||||||||||||||||
Less amount due currently | - | (608) | ||||||||||||||||||
Long-term debt, less amounts due currently | $ | 9,229 | $ | 8,017 |
Year | Amount | ||||||||||
2021 | $ | - | |||||||||
2022 | 882 | ||||||||||
2023 | - | ||||||||||
2024 | 500 | ||||||||||
2025 | 974 | ||||||||||
Thereafter | 6,971 | ||||||||||
Unamortized discount and debt issuance costs | (98) | ||||||||||
Total | $ | 9,229 |
At December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Operating Leases: | |||||||||||||||||
ROU assets: | |||||||||||||||||
Operating lease ROU, third-party joint project and other assets | $ | 132 | $ | 92 | |||||||||||||
Lease liabilities: | |||||||||||||||||
Operating lease and other current liabilities | $ | 29 | $ | 26 | |||||||||||||
Operating lease, third-party joint project and other obligations | 124 | 66 | |||||||||||||||
Total operating lease liabilities | $ | 153 | $ | 92 | |||||||||||||
Weighted-average remaining lease term (in years) | 7 | 4 | |||||||||||||||
Weighted-average discount rate | 2.8% | 3.3% |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Operating lease cost: | |||||||||||||||||
Operating lease costs (including amounts allocated to property, plant and equipment) | $ | 42 | $ | 40 | |||||||||||||
Short-term lease costs | 10 | 34 | |||||||||||||||
Total operating lease costs | $ | 52 | $ | 74 | |||||||||||||
Operating lease payments: | |||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 35 | $ | 32 | |||||||||||||
Year | Amount | ||||||||||
2021 | $ | 33 | |||||||||
2022 | 30 | ||||||||||
2023 | 23 | ||||||||||
2024 | 17 | ||||||||||
2025 | 9 | ||||||||||
Thereafter | 58 | ||||||||||
Total undiscounted lease payments | 170 | ||||||||||
Less imputed interest | (17) | ||||||||||
Total operating lease obligations | $ | 153 |
Received | Amount | ||||||||||
December 23, 2020 | $ | 290 | |||||||||
December 22, 2020 | 70 | ||||||||||
October 27, 2020 | 62 | ||||||||||
July 28, 2020 | 70 | ||||||||||
April 27, 2020 | 70 | ||||||||||
February 18, 2020 | 70 | ||||||||||
$ | 632 |
Declaration Date | Payment Date | Amount | |||||||||||||||
October 28, 2020 | October 29, 2020 | $ | 66 | ||||||||||||||
July 29, 2020 | July 30, 2020 | 74 | |||||||||||||||
April 29, 2020 | April 30, 2020 | 73 | |||||||||||||||
February 19, 2020 | February 20, 2020 | 73 | |||||||||||||||
$ | 286 |
Declaration Date | Payment Date | Amount | |||||||||||||||
October 29, 2019 | October 31, 2019 | $ | 85 | ||||||||||||||
July 30, 2019 | July 31, 2019 | 53 | |||||||||||||||
May 1, 2019 | May 2, 2019 | 54 | |||||||||||||||
February 20, 2019 | February 22, 2019 | 54 | |||||||||||||||
$ | 246 |
Cash Flow Hedges – Interest Rate Swap | Defined Benefit Pension and OPEB Plans | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
Balance at December 31, 2017 | $ | (14) | $ | (67) | $ | (81) | ||||||||||||||||||||
Defined benefit pension plans | - | (13) | (13) | |||||||||||||||||||||||
Cash flow hedge amounts reclassified from AOCI and reported in interest expense and related charges | 2 | - | 2 | |||||||||||||||||||||||
Balance at December 31, 2018 | $ | (12) | $ | (80) | $ | (92) | ||||||||||||||||||||
Defined benefit pension plans | - | 17 | 17 | |||||||||||||||||||||||
Cash flow hedge amounts reclassified from AOCI and reported in interest expense and related charges | 1 | - | 1 | |||||||||||||||||||||||
ASU 2018-02 stranded tax effects | (4) | (14) | (18) | |||||||||||||||||||||||
Balance at December 31, 2019 | $ | (15) | $ | (77) | $ | (92) | ||||||||||||||||||||
Defined benefit pension plans | - | 6 | 6 | |||||||||||||||||||||||
Cash flow hedge amounts reclassified from AOCI and reported in interest expense and related charges | (16) | - | (16) | |||||||||||||||||||||||
Balance at December 31, 2020 | $ | (31) | $ | (71) | $ | (102) |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Pension costs | $ | 71 | $ | 63 | $ | 77 | |||||||||||||||||||||||
OPEB costs | 19 | 41 | 70 | ||||||||||||||||||||||||||
Total benefit costs | 90 | 104 | 147 | ||||||||||||||||||||||||||
Less amounts recognized principally as property or a regulatory asset | (13) | (27) | (69) | ||||||||||||||||||||||||||
Net amounts recognized as operation and maintenance expense or other deductions | $ | 77 | $ | 77 | $ | 78 |
Pension Plans | OPEB Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions Used to Determine Net Periodic Pension and OPEB Costs: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 3.13% | 4.18% | 3.54% | 3.29% | 4.41% | 3.73% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | 4.94% | 5.42% | 5.11% | 5.90% | 6.19% | 6.20% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Rate of compensation increase | 4.64% | 4.53% | 4.46% | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Pension and OPEB Costs: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 29 | $ | 25 | $ | 27 | $ | 6 | $ | 6 | $ | 8 | ||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 103 | 128 | 121 | 32 | 43 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on assets | (109) | (119) | (120) | (8) | (7) | (9) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost (credit) | - | - | - | (20) | (20) | (30) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net loss | 48 | 29 | 49 | 10 | 19 | 57 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Curtailment cost (credit) | - | - | - | (1) | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic pension and OPEB costs | $ | 71 | $ | 63 | $ | 77 | $ | 19 | $ | 41 | $ | 70 | ||||||||||||||||||||||||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized as Regulatory Assets or in Other Comprehensive Income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Curtailment | $ | - | $ | - | $ | - | $ | 2 | $ | - | $ | - | ||||||||||||||||||||||||||||||||||||||||||||
Net loss (gain) | 61 | - | 67 | 14 | (22) | (177) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net loss | (48) | (29) | (49) | (10) | (19) | (57) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service (cost) credit | - | - | - | 20 | 20 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total recognized as regulatory assets or other comprehensive income | 13 | (29) | 18 | 26 | (21) | (204) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total recognized in net periodic pension and OPEB costs and as regulatory assets or other comprehensive income | $ | 84 | $ | 34 | $ | 95 | $ | 45 | $ | 20 | $ | (134) |
Pension Plans | OPEB Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions Used to Determine Benefit Obligations at Period End: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 2.40% | 3.13% | 4.18% | 2.58% | 3.29% | 4.41% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Rate of compensation increase | 4.80% | 4.64% | 4.53% | - | - | - |
Pension Plans | OPEB Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Projected Benefit Obligation: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 3,400 | $ | 3,162 | $ | 999 | $ | 1,006 | |||||||||||||||||||||||||||||||||||||||||||||
Service cost | 29 | 25 | 6 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 103 | 128 | 32 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||
Participant contributions | - | - | 18 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 302 | 367 | 20 | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (165) | (164) | (63) | (70) | |||||||||||||||||||||||||||||||||||||||||||||||||
Curtailment | - | - | 1 | - | |||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | (73) | (118) | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation at end of year | $ | 3,596 | $ | 3,400 | $ | 1,013 | $ | 999 | |||||||||||||||||||||||||||||||||||||||||||||
Accumulated benefit obligation at end of year | $ | 3,433 | $ | 3,283 | $ | - | $ | - | |||||||||||||||||||||||||||||||||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of assets at beginning of year | $ | 2,494 | $ | 2,249 | $ | 141 | $ | 132 | |||||||||||||||||||||||||||||||||||||||||||||
Actual return on assets | 350 | 486 | 14 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||
Employer contributions | 134 | 41 | 35 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||||
Participant contributions | - | - | 18 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (165) | (164) | (63) | (70) | |||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | (73) | (118) | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of assets at end of year | $ | 2,740 | $ | 2,494 | $ | 145 | $ | 141 | |||||||||||||||||||||||||||||||||||||||||||||
Funded Status: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation at end of year | $ | (3,596) | $ | (3,400) | $ | (1,013) | $ | (999) | |||||||||||||||||||||||||||||||||||||||||||||
Fair value of assets at end of year | 2,740 | 2,494 | 145 | 141 | |||||||||||||||||||||||||||||||||||||||||||||||||
Funded status at end of year | $ | (856) | $ | (906) | $ | (868) | $ | (858) |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Assumed Health Care Cost Trend Rates – Not Medicare Eligible: | ||||||||||||||||||||
Health care cost trend rate assumed for next year | 6.90% | 7.20% | ||||||||||||||||||
Rate to which the cost trend is expected to decline (the ultimate trend rate) | 4.50% | 4.50% | ||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2029 | 2029 | ||||||||||||||||||
Assumed Health Care Cost Trend Rates – Medicare Eligible: | ||||||||||||||||||||
Health care cost trend rate assumed for next year | 7.80% | 8.00% | ||||||||||||||||||
Rate to which the cost trend is expected to decline (the ultimate trend rate) | 4.50% | 4.50% | ||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2030 | 2029 |
At December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Pension Plans with PBO and ABO in Excess of Plan Assets (a): | ||||||||||||||||||||
Projected benefit obligations | $ | 3,596 | $ | 3,400 | ||||||||||||||||
Accumulated benefit obligations | 3,433 | 3,283 | ||||||||||||||||||
Plan assets | 2,740 | 2,494 |
At December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
OPEB Plans with APBO in Excess of Plan Assets | ||||||||||||||||||||
Accumulated postretirement benefit obligations | $ | 1,013 | $ | 999 | ||||||||||||||||
Plan assets | 145 | 141 |
Target Allocation Ranges | ||||||||||||||||||||
Asset Category | Recoverable | Non-recoverable | ||||||||||||||||||
International equities | 13% - 21% | 6% - 12% | ||||||||||||||||||
U.S. equities | 16% - 24% | 8% - 14% | ||||||||||||||||||
Real estate | 3% - 7% | - | ||||||||||||||||||
Credit strategies | 5% - 10% | 5% - 9% | ||||||||||||||||||
Fixed income | 45% - 55% | 68% - 78% |
At December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 220 | $ | 1 | $ | - | $ | 221 | ||||||||||||||||||||||||||||||
International | 330 | 1 | - | 331 | ||||||||||||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||||||||
Corporate bonds (a) | - | 910 | - | 910 | ||||||||||||||||||||||||||||||||||
U.S. Treasuries | - | 46 | - | 46 | ||||||||||||||||||||||||||||||||||
Other (b) | - | 57 | - | 57 | ||||||||||||||||||||||||||||||||||
Total assets in the fair value hierarchy | $ | 550 | $ | 1,015 | $ | - | 1,565 | |||||||||||||||||||||||||||||||
Total assets measured at net asset value (c) | 1,175 | |||||||||||||||||||||||||||||||||||||
Total fair value of plan assets | $ | 2,740 | ||||||||||||||||||||||||||||||||||||
At December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 194 | $ | 2 | $ | - | $ | 196 | ||||||||||||||||||||||||||||||
International | 290 | 1 | - | 291 | ||||||||||||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||||||||
Corporate bonds (a) | - | 908 | - | 908 | ||||||||||||||||||||||||||||||||||
U.S. Treasuries | - | 147 | - | 147 | ||||||||||||||||||||||||||||||||||
Other (b) | - | 63 | - | 63 | ||||||||||||||||||||||||||||||||||
Real estate | - | - | 3 | 3 | ||||||||||||||||||||||||||||||||||
Total assets in the fair value hierarchy | $ | 484 | $ | 1,121 | $ | 3 | 1,608 | |||||||||||||||||||||||||||||||
Total assets measured at net asset value (c) | 886 | |||||||||||||||||||||||||||||||||||||
Total fair value of plan assets | $ | 2,494 |
At December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||||||||
Interest-bearing cash | $ | 9 | $ | - | $ | - | $ | 9 | ||||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||||
U.S. | 24 | - | - | 24 | ||||||||||||||||||||||||||||||||||
International | 25 | - | - | 25 | ||||||||||||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||||||||
Corporate bonds (a) | - | 34 | - | 34 | ||||||||||||||||||||||||||||||||||
U.S. Treasuries | - | 1 | - | 1 | ||||||||||||||||||||||||||||||||||
Other (b) | 19 | 3 | - | 22 | ||||||||||||||||||||||||||||||||||
Total assets in the fair value hierarchy | $ | 77 | $ | 38 | $ | - | 115 | |||||||||||||||||||||||||||||||
Total assets measured at net asset value (c) | 30 | |||||||||||||||||||||||||||||||||||||
Total fair value of plan assets | $ | 145 | ||||||||||||||||||||||||||||||||||||
At December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||||||||
Interest-bearing cash | $ | 6 | $ | - | $ | - | $ | 6 | ||||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||||
U.S. | 24 | - | - | 24 | ||||||||||||||||||||||||||||||||||
International | 28 | - | - | 28 | ||||||||||||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||||||||
Corporate bonds (a) | - | 31 | - | 31 | ||||||||||||||||||||||||||||||||||
U.S. Treasuries | - | 3 | - | 3 | ||||||||||||||||||||||||||||||||||
Other (b) | 22 | 2 | - | 24 | ||||||||||||||||||||||||||||||||||
Total assets in the fair value hierarchy | $ | 80 | $ | 36 | $ | - | 116 | |||||||||||||||||||||||||||||||
Total assets measured at net asset value (c) | 25 | |||||||||||||||||||||||||||||||||||||
Total fair value of plan assets | $ | 141 |
Pension Plans | Oncor OPEB Plans | |||||||||||||||||||||||||
Asset Class | Expected Long-Term Rate of Return | Asset Class | Expected Long-Term Rate of Return | |||||||||||||||||||||||
International equity securities | 7.58% | 401(h) accounts | 5.59% | |||||||||||||||||||||||
U.S. equity securities | 6.50% | Life insurance VEBA | 5.10% | |||||||||||||||||||||||
Real estate | 5.60% | Union VEBA | 5.10% | |||||||||||||||||||||||
Credit strategies | 3.90% | Non-union VEBA | 1.10% | |||||||||||||||||||||||
Fixed income securities | 2.32% | Shared retiree VEBA | 1.10% | |||||||||||||||||||||||
Weighted average (a) | 4.57% | Weighted average | 5.24% |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Pension plans contributions | $ | 134 | $ | 41 | $ | 82 | |||||||||||||||||||||||
Oncor OPEB Plans contributions | 35 | 35 | 41 | ||||||||||||||||||||||||||
Total contributions | $ | 169 | $ | 76 | $ | 123 |
2021 | 2022 | 2023 | 2024 | 2025 | 2026-30 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pension plans | $ | 186 | $ | 189 | $ | 192 | $ | 195 | $ | 197 | $ | 975 | ||||||||||||||||||||||||||||||||||||||||||||
Oncor OPEB Plans | $ | 49 | $ | 51 | $ | 52 | $ | 53 | $ | 54 | $ | 271 |
At December 31, | At December 31, | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
Federal income taxes payable (receivable) | $ | (14) | $ | (4) | |||||||||||||
Texas margin tax payable | 23 | 22 | |||||||||||||||
Total payable (receivable) | $ | 9 | $ | 18 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
STH | STH | STH | EFH Corp. | Total | |||||||||||||||||||||||||||||||||||||||||||
Federal income taxes | $ | 70 | $ | 54 | $ | 77 | $ | (19) | $ | 58 | |||||||||||||||||||||||||||||||||||||
Texas margin tax | 22 | 22 | 21 | - | 21 | ||||||||||||||||||||||||||||||||||||||||||
Total payments (receipts) | $ | 92 | $ | 76 | $ | 98 | $ | (19) | $ | 79 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Professional fees | $ | 6 | $ | 10 | $ | 12 | |||||||||||||||||||||||
Sempra Acquisition related costs | - | - | 12 | ||||||||||||||||||||||||||
InfraREIT Acquisition related costs | - | 9 | - | ||||||||||||||||||||||||||
Recoverable Pension and OPEB - non-service costs | 55 | 57 | 53 | ||||||||||||||||||||||||||
Non-recoverable pension and OPEB | 4 | 4 | 6 | ||||||||||||||||||||||||||
AFUDC equity income | (29) | (10) | - | ||||||||||||||||||||||||||
Interest income | (4) | (5) | (1) | ||||||||||||||||||||||||||
Other | 1 | (2) | 2 | ||||||||||||||||||||||||||
Total other deductions and (income) - net | $ | 33 | $ | 63 | $ | 84 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Interest | $ | 413 | $ | 382 | $ | 358 | |||||||||||||||||||||||
Amortization of debt issuance costs and discounts | 11 | 9 | 6 | ||||||||||||||||||||||||||
Less AFUDC – capitalized interest portion | (19) | (16) | (13) | ||||||||||||||||||||||||||
Total interest expense and related charges | $ | 405 | $ | 375 | $ | 351 |
At December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Gross trade accounts and other receivables | $ | 767 | $ | 666 | ||||||||||||||||
Allowance for uncollectible accounts | (7) | (5) | ||||||||||||||||||
Trade accounts receivable – net | $ | 760 | $ | 661 |
At December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Assets related to employee benefit plans | $ | 124 | $ | 119 | ||||||||||||||||
Land | 16 | 12 | ||||||||||||||||||
Other | 2 | 2 | ||||||||||||||||||
Total investments and other property | $ | 142 | $ | 133 |
Composite Depreciation Rate/ | At December 31, | |||||||||||||||||||||||||
Avg. Life at December 31, 2020 | 2020 | 2019 | ||||||||||||||||||||||||
Assets in service: | ||||||||||||||||||||||||||
Distribution | 2.5% / 39.4 years | $ | 14,937 | $ | 14,007 | |||||||||||||||||||||
Transmission | 2.9% / 34.8 years | 12,156 | 11,094 | |||||||||||||||||||||||
Other assets | 6.7% / 14.9 years | 1,855 | 1,648 | |||||||||||||||||||||||
Total | 28,948 | 26,749 | ||||||||||||||||||||||||
Less accumulated depreciation | 8,336 | 7,986 | ||||||||||||||||||||||||
Net of accumulated depreciation | 20,612 | 18,763 | ||||||||||||||||||||||||
Construction work in progress | 593 | 585 | ||||||||||||||||||||||||
Held for future use | 20 | 22 | ||||||||||||||||||||||||
Property, plant and equipment – net | $ | 21,225 | $ | 19,370 |
At December 31, 2020 | At December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross | Gross | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Amortization | Net | Amount | Amortization | Net | |||||||||||||||||||||||||||||||||||||||||||||||||||
Identifiable intangible assets subject to amortization: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Land easements | $ | 623 | $ | 112 | $ | 511 | $ | 575 | $ | 107 | $ | 468 | ||||||||||||||||||||||||||||||||||||||||||||
Capitalized software | 1,027 | 484 | 543 | 933 | 430 | 503 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,650 | $ | 596 | $ | 1,054 | $ | 1,508 | $ | 537 | $ | 971 |
Year | Amortization Expense | ||||||||||
2021 | $ | 68 | |||||||||
2022 | 68 | ||||||||||
2023 | 68 | ||||||||||
2024 | 67 | ||||||||||
2025 | 67 |
At December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Liabilities related to tax sharing agreement with noncontrolling interest | $ | 102 | $ | 112 | ||||||||||||||||
Operating lease liabilities (Notes 1 and 7) | 124 | 66 | ||||||||||||||||||
Investment tax credits | 5 | 6 | ||||||||||||||||||
Third-party joint project obligation (Note 1) (a) | 100 | 4 | ||||||||||||||||||
Other | 76 | 70 | ||||||||||||||||||
Total operating lease, third-party joint project and other obligations | $ | 407 | $ | 258 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Cash payments related to: | |||||||||||||||||||||||||||||
Interest | $ | 406 | $ | 368 | $ | 368 | |||||||||||||||||||||||
Less capitalized interest | (19) | (16) | (13) | ||||||||||||||||||||||||||
Interest payments (net of amounts capitalized) | $ | 387 | $ | 352 | $ | 355 | |||||||||||||||||||||||
Income taxes: | |||||||||||||||||||||||||||||
Federal | $ | 87 | $ | 65 | $ | 68 | |||||||||||||||||||||||
State | 22 | 22 | 21 | ||||||||||||||||||||||||||
Total payments (refunds) of income taxes | $ | 109 | $ | 87 | $ | 89 | |||||||||||||||||||||||
Noncash increase in operating lease obligation for ROU assets | $ | 72 | $ | 38 | $ | - | |||||||||||||||||||||||
Noncash investing and financing activity: | |||||||||||||||||||||||||||||
Acquisition (a): | |||||||||||||||||||||||||||||
Assets acquired | $ | - | $ | 2,547 | $ | - | |||||||||||||||||||||||
Liabilities assumed | - | (1,223) | - | ||||||||||||||||||||||||||
Cash paid | $ | - | $ | 1,324 | $ | - | |||||||||||||||||||||||
Debt exchange (b): | |||||||||||||||||||||||||||||
Debt issued in debt exchange offering | $ | 300 | $ | - | $ | - | |||||||||||||||||||||||
Debt exchanged in debt exchange offering | (300) | - | - | ||||||||||||||||||||||||||
$ | - | $ | - | $ | - | ||||||||||||||||||||||||
Noncash construction expenditures (c) | $ | 254 | $ | 278 | $ | 174 |
Purchase of outstanding InfraREIT shares and units | $ | 1,275 | |||||||||
Certain transaction costs of InfraREIT paid by Oncor through June 30, 2019 (a) | 53 | ||||||||||
Total purchase price paid through June 30, 2019 | 1,328 | ||||||||||
Adjustments made in the period from June 30, 2019 through March 31, 2020 | (4) | ||||||||||
Total purchase price paid | $ | 1,324 |
Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Oncor Consolidated Pro Forma Revenues | $ | 4,431 | $ | 4,318 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Income tax expense | $ | (9) | $ | (8) | $ | (24) | |||||||||||||||||||||||
Equity in earnings of subsidiary | 571 | 522 | 437 | ||||||||||||||||||||||||||
Net Income | 562 | 514 | 413 | ||||||||||||||||||||||||||
Other comprehensive income (net of tax (benefit) expense of ($3), $4 and ($3)) | (12) | 19 | (11) | ||||||||||||||||||||||||||
Comprehensive income | $ | 550 | $ | 533 | $ | 402 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Cash provided by operating activities | $ | 286 | $ | 246 | $ | 149 | |||||||||||||||||||||||
Cash used in financing activities - distributions paid to member | (286) | (246) | (149) | ||||||||||||||||||||||||||
Net change in cash and cash equivalents | - | - | - | ||||||||||||||||||||||||||
Cash and cash equivalents - beginning balance | - | - | - | ||||||||||||||||||||||||||
Cash and cash equivalents - ending balance | $ | - | $ | - | $ | - |
At December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Income taxes receivable from member - current | 8 | 1 | ||||||||||||||||||
Investments - noncurrent | 9,568 | 8,698 | ||||||||||||||||||
Accumulated deferred income taxes | 126 | 114 | ||||||||||||||||||
Total assets | $ | 9,702 | $ | 8,813 | ||||||||||||||||
LIABILITIES AND MEMBERSHIP INTERESTS | ||||||||||||||||||||
Other noncurrent liabilities and deferred credits | 103 | 112 | ||||||||||||||||||
Total liabilities | 103 | 112 | ||||||||||||||||||
Membership interests | 9,599 | 8,701 | ||||||||||||||||||
Total liabilities and membership interests | $ | 9,702 | $ | 8,813 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||||||
Distributions received, subsequently paid as federal income taxes recognized as operating activities | $ | - | $ | 10 | $ | 18 | |||||||||||||||||||||||
Distributions received, subsequently paid as a distribution recognized as financing activities | 286 | 246 | 149 | ||||||||||||||||||||||||||
Total distributions from Oncor | $ | 286 | $ | 256 | $ | 167 |