View Filing Data

$ 1,219

$ 912

^[1]

Restricted cash

318

131

^[1]

922

891

^[1]

136

141

^[1]

^[1]

Deferred income taxes, net current assets

261

248

^[1]

^[1]

176

258

^[1]

Fixed-price contracts and other derivatives, current assets

^[1]

^[1]

Settlement receivable related to wildfire litigation

^[1]

300

171

192

^[1]

3,426

3,353

^[1]

Restricted cash, noncurrent

^[1]

Regulatory assets arising from pension and other postretirement benefit obligations

885

869

^[1]

Regulatory assets arising from wildfire litigation costs

348

364

^[1]

Nuclear decommissioning trusts

932

934

^[1]

796

769

^[1]

Investment in RBS Sempra Commodities LLP

779

787

^[1]

Other investments

2,163

2,164

^[1]

Goodwill and other intangible assets

537

540

^[1]

630

600

^[1]

7,070

7,054

^[1]

27,556

27,087

^[1]

(7,356)

(7,211)

^[1]

20,200

19,876

^[1]

30,696

30,283

^[1]

Short-term debt

566

158

^[1]

607

755

^[1]

Accounts payable - other

102

109

^[1]

Dividends and interest payable

^[1]

251

188

^[1]

211

311

^[1]

379

241

^[1]

Fixed-price contracts and other derivatives, current liabilities

349

^[1]

106

^[1]

Reserve for wildfire litigation (Note 10)

131

129

^[1]

489

639

^[1]

701

765

^[1]

3,654

3,786

^[1]

Deferred Credits And Other Liabilities [Abstract]

9,174

8,980

^[1]

Pension and other postretirement benefit obligations, net of plan assets

132

154

^[1]

1,114

1,105

^[1]

1,633

1,561

^[1]

Regulatory liabilities arising from removal obligations

^[1]

2,671

2,630

^[1]

Other regulatory liabilities

1,469

1,449

^[1]

130

138

^[1]

Fixed-price contracts and other derivatives, noncurrent liabilities

285

290

^[1]

903

823

^[1]

Contingently redeemable preferred stock of subsidiary

8,386

8,200

^[1]

^[1]

Equity:

2,052

2,036

^[1]

7,472

7,329

^[1]

Deferred compensation

(6)

(8)

^[1]

(332)

(330)

^[1]

Preferred stock of subsidiaries

9,186

9,027

^[1]

100

^[1]

Other noncontrolling interests

117

111

^[1]

9,403

9,238

^[1]

San Diego Gas and Electric Company and Subsidiary [Member]

30,696

30,283

^[1]

272

127

^[1]

Restricted cash

318

116

^[1]

266

248

^[1]

^[1]

^[1]

Deferred income taxes, net current assets

^[1]

113

129

^[1]

Regulatory assets arising from fixed-price contracts and other derivatives - current

^[1]

^[1]

Fixed-price contracts and other derivatives, current assets

^[1]

^[1]

Settlement receivable related to wildfire litigation

^[1]

300

^[1]

1,263

1,248

^[1]

Deferred taxes recoverable in rates

514

502

^[1]

Regulatory assets arising from fixed-price contracts and other derivatives - noncurrent

220

233

^[1]

Regulatory assets arising from pension and other postretirement benefit obligations

285

279

^[1]

Regulatory assets arising from wildfire litigation costs

348

364

^[1]

Nuclear decommissioning trusts

^[1]

796

769

^[1]

^[1]

2,320

2,276

^[1]

11,551

11,247

^[1]

(2,744)

(2,694)

^[1]

8,807

8,553

^[1]

12,390

12,077

^[1]

269

292

^[1]

^[1]

115

^[1]

^[1]

Fixed-price contracts and other derivatives, current liabilities

^[1]

^[1]

Reserve for wildfire litigation (Note 10)

^[1]

489

639

^[1]

168

136

^[1]

1,225

1,383

^[1]

Deferred Credits And Other Liabilities [Abstract]

3,474

3,479

^[1]

Pension and other postretirement benefit obligations, net of plan assets

^[1]

315

309

^[1]

1,073

1,001

^[1]

Regulatory liabilities arising from removal obligations

^[1]

1,443

1,409

^[1]

Fixed-price contracts and other derivatives, noncurrent liabilities

628

619

^[1]

236

248

^[1]

356

283

^[1]

Contingently redeemable preferred stock

4,096

3,915

^[1]

^[1]

Equity:

1,338

1,138

^[1]

2,069

1,980

^[1]

(10)

^[1]

Other noncontrolling interests

3,397

3,108

^[1]

119

113

^[1]

3,516

3,221

^[1]

12,390

12,077

^[1]

417

^[1]

521

534

^[1]

^[1]

383

^[1]

^[1]

105

^[1]

^[1]

^[1]

1,088

1,260

^[1]

Due from unconsolidated affiliate

505

502

^[1]

Regulatory assets arising from pension and other postretirement benefit obligations

596

586

^[1]

124

123

^[1]

^[1]

1,274

1,247

^[1]

9,944

9,826

^[1]

(3,854)

(3,802)

^[1]

6,090

6,024

^[1]

8,452

8,531

^[1]

234

327

^[1]

Accounts payable - other

^[1]

Deferred income taxes, net current liabilities

^[1]

^[1]

^[1]

307

180

^[1]

262

^[1]

Temporary LIFO liquidation

^[1]

187

163

^[1]

1,135

1,294

^[1]

Deferred Credits And Other Liabilities [Abstract]

1,318

1,320

^[1]

Pension and other postretirement benefit obligations, net of plan assets

111

133

^[1]

625

613

^[1]

462

416

^[1]

Regulatory liabilities arising from removal obligations

^[1]

1,216

1,208

^[1]

Deferred taxes refundable in rates

798

788

^[1]

130

138

^[1]

199

180

^[1]

3,566

3,501

^[1]

Equity:

Preferred stock

^[1]

1,462

^[1]

893

876

^[1]

(22)

^[1]

Preferred stock of subsidiaries

2,413

2,396

^[1]

^[1]

2,433

2,416

^[1]

8,452

8,531

^[1]

417

^[1]

521

534

^[1]

^[1]

378

^[1]

^[1]

105

^[1]

^[1]

^[1]

1,078

1,247

^[1]

Regulatory assets arising from pension and other postretirement benefit obligations

596

586

^[1]

124

123

^[1]

^[1]

742

717

^[1]

9,942

9,824

^[1]

(3,854)

(3,802)

^[1]

6,088

6,022

^[1]

7,908

7,986

^[1]

234

327

^[1]

Accounts payable - other

^[1]

Deferred income taxes, net current liabilities

^[1]

^[1]

^[1]

307

180

^[1]

262

^[1]

Temporary LIFO liquidation

^[1]

186

163

^[1]

1,050

1,210

^[1]

Deferred Credits And Other Liabilities [Abstract]

1,318

1,320

^[1]

Pension and other postretirement benefit obligations, net of plan assets

111

133

^[1]

625

613

^[1]

464

418

^[1]

Regulatory liabilities arising from removal obligations

^[1]

1,216

1,208

^[1]

Deferred taxes refundable in rates

798

788

^[1]

130

138

^[1]

198

178

^[1]

3,567

3,501

^[1]

Equity:

Preferred stock

^[1]

866

^[1]

1,107

1,089

^[1]

(22)

^[1]

1,973

1,955

^[1]

1,973

1,955

^[1]

Cost of electric fuel and purchased power

$ 7,908

$ 7,986

^[1]

[1]	Derived from audited financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands

3 Months Ended

Mar. 31, 2011

Mar. 31, 2010

REVENUES

Sempra Utilities

$ 1,881,000,000

$ 1,912,000,000

Sempra Global and parent

553,000,000

622,000,000

Total revenues

2,434,000,000

2,534,000,000

Sempra Utilities [Abstract]

Cost of natural gas

(609,000,000)

(758,000,000)

(171,000,000)

(148,000,000)

Sempra Global And Parent [Abstract]

Cost of natural gas, electric fuel and purchased power

(263,000,000)

(338,000,000)

Other cost of sales

(23,000,000)

(25,000,000)

Litigation expense

(7,000,000)

(168,000,000)

Other operation and maintenance

(632,000,000)

(576,000,000)

Depreciation and amortization

(231,000,000)

(210,000,000)

Franchise fees and other taxes

(95,000,000)

(90,000,000)

Equity earnings, before income tax

1,000,000

15,000,000

43,000,000

8,000,000

Interest income

3,000,000

4,000,000

Income before income taxes and equity earnings of certain unconsolidated subsidiaries

(108,000,000)

(109,000,000)

342,000,000

139,000,000

Equity earnings, net of income tax

(109,000,000)

(58,000,000)

31,000,000

19,000,000

Losses (earnings) attributable to noncontrolling interests

^[1]

264,000,000

100,000,000

(4,000,000)

8,000,000

Preferred dividends of subsidiaries

(2,000,000)

Basic earnings per common share

258,000,000

106,000,000

Basic earnings per common share:

$ 1.07

$ 0.43

Basic earnings per common share, weighted-average number of shares outstanding (thousands)

240,128

246,083

Diluted earnings per common share:

Diluted earnings per common share

$ 1.07

$ 0.42

Diluted earnings per common share, weighted-average number of shares outstanding (thousands)

241,903

250,373

Dividends declared per share of common stock

$ 0.48

$ 0.39

San Diego Gas and Electric Company and Subsidiary [Member]

Utility operating revenues

Electric

665,000,000

563,000,000

Natural gas

175,000,000

179,000,000

Total utility operating revenues

840,000,000

742,000,000

Utility cost of natural gas

83,000,000

89,000,000

Utility cost of electric fuel and purchased power

171,000,000

148,000,000

Utility operation and maintenance

273,000,000

232,000,000

Utility franchise fees and other taxes

103,000,000

92,000,000

47,000,000

43,000,000

Total utility operating expenses

677,000,000

604,000,000

Utility operating income

163,000,000

138,000,000

16,000,000

Income before income taxes and equity earnings of certain unconsolidated subsidiaries

(36,000,000)

(31,000,000)

143,000,000

107,000,000

(49,000,000)

(31,000,000)

Losses (earnings) attributable to noncontrolling interests

94,000,000

76,000,000

(4,000,000)

8,000,000

Preferred dividend requirements

90,000,000

84,000,000

(1,000,000)

Earnings attributable to common shares

89,000,000

83,000,000

Total utility operating revenues

Utility operating revenues

1,056,000,000

1,182,000,000

Utility cost of natural gas

531,000,000

674,000,000

Utility operation and maintenance

288,000,000

261,000,000

Utility franchise fees and other taxes

81,000,000

75,000,000

37,000,000

Total utility operating expenses

937,000,000

1,047,000,000

Utility operating income

119,000,000

135,000,000

3,000,000

4,000,000

Income before income taxes and equity earnings of certain unconsolidated subsidiaries

(17,000,000)

105,000,000

122,000,000

(37,000,000)

(57,000,000)

^[1]

68,000,000

65,000,000

Preferred dividend requirements

68,000,000

65,000,000

(1,000,000)

Earnings attributable to common shares

67,000,000

64,000,000

Total utility operating revenues

Utility operating revenues

1,056,000,000

1,182,000,000

Utility cost of natural gas

531,000,000

674,000,000

Utility operation and maintenance

288,000,000

262,000,000

Utility franchise fees and other taxes

81,000,000

75,000,000

37,000,000

Total utility operating expenses

937,000,000

1,048,000,000

Utility operating income

119,000,000

134,000,000

3,000,000

4,000,000

Income before income taxes and equity earnings of certain unconsolidated subsidiaries

(17,000,000)

105,000,000

121,000,000

(37,000,000)

(56,000,000)

68,000,000

65,000,000

Earnings attributable to common shares

68,000,000

65,000,000

$ 68,000,000

$ 65,000,000

[1]	Before preferred dividends of subsidiaries.

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2011

Mar. 31, 2010

Adjustments to reconcile net income to net cash provided by operating activities:

^[1]

$ 264

$ 100

Depreciation and amortization

231

210

Fixed-price contracts and other derivatives

Equity earnings

(32)

(34)

(9)

Other adjustments to reconcile net income to net cash provided by operating activities

(13)

286

534

(5)

(5)

(8)

805

888

Expenditures for investments

(607)

(446)

(4)

(74)

Distributions from investments

Purchases of nuclear decommissioning and other trust assets

(45)

(44)

Proceeds from sales by nuclear decommissioning and other trusts

Decrease in restricted cash

160

Increase in restricted cash

(320)

(23)

Other cash flows from investing activities

(7)

(756)

(496)

Preferred dividends paid by subsidiaries

Common dividends paid

(94)

(86)

(2)

Issuances of common stock

Repurchases of common stock

(18)

(2)

Issuances of debt (maturities greater than 90 days)

803

Payments on debt (maturities greater than 90 days)

(260)

(507)

Increase (decrease) in short-term debt, net

(192)

294

Other cash flows from financing activities

(3)

Net cash provided by (used in) financing activities

258

(280)

307

112

912

^[2]

110

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

1,219

222

(73)

Dividends declared but not paid

233

191

118

San Diego Gas and Electric Company and Subsidiary [Member]

Adjustments to reconcile net income to net cash provided by operating activities:

103

Fixed-price contracts and other derivatives

(4)

Other adjustments to reconcile net income to net cash provided by operating activities

(12)

241

101

(3)

(8)

501

275

Purchases of nuclear decommissioning and other trust assets

(348)

(290)

(44)

(43)

Proceeds from sales by nuclear decommissioning and other trusts

Increase (decrease) in loans to affiliates, net

Decrease in restricted cash

109

Increase in restricted cash

(311)

(23)

(552)

(300)

Issuances of long-term debt

Capital contribution

200

Preferred dividends paid

(1)

Payments on long-term debt

(3)

Increase (decrease) in short-term debt, net

Net cash provided by (used in) financing activities

196

145

127

^[2]

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

272

(26)

Dividends declared but not paid

145

Adjustments to reconcile net income to net cash provided by operating activities:

^[1]

Other adjustments to reconcile net income to net cash provided by operating activities

(2)

(1)

177

339

(4)

(3)

380

492

Increase (decrease) in loans to affiliates, net

(168)

(114)

(295)

(146)

(463)

(260)

Payments on long-term debt

Common dividends paid

(50)

(100)

Preferred dividends paid

(1)

(250)

Net cash provided by (used in) financing activities

(301)

(101)

(384)

131

417

^[2]

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

180

Dividends declared but not paid

Adjustments to reconcile net income to net cash provided by operating activities:

Other adjustments to reconcile net income to net cash provided by operating activities

(2)

(1)

168

346

(4)

(1)

371

501

Increase (decrease) in loans to affiliates, net

(168)

(114)

(287)

(156)

(455)

(270)

Payments on long-term debt

Common dividends paid

(50)

(100)

(250)

Net cash provided by (used in) financing activities

(300)

(100)

(384)

131

417

^[2]

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

180

Notes to Consolidated Financial Statements [Abstract]

$ 76

$ 52

[1]	Before preferred dividends of subsidiaries.
[2]	Derived from audited financial statements.

OTHER FINANCIAL DATA

3 Months Ended

Mar. 31, 2011

Other Financial Data

NOTE 5. OTHER FINANCIAL DATA

TEMPORARY LIFO LIQUIDATION

SoCalGas values natural gas inventory by the last-in first-out (LIFO) method. As inventories are sold, differences between the LIFO valuation and the estimated replacement cost are reflected in customer rates. Temporary LIFO liquidation represents the difference between the carrying value of natural gas inventory withdrawn during the period for delivery to customers and the projected cost of the replacement of that inventory during summer months.

VARIABLE INTEREST ENTITIES (VIE)

We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based upon qualitative and quantitative analyses, which assess

the purpose and design of the VIE;
the nature of the VIE's risks and the risks we absorb;
the power to direct activities that most significantly impact the economic performance of the VIE; and

the obligation to absorb losses or right to receive benefits that could be significant to the VIE.

SDG&E has agreements under which it purchases power generated by facilities for which it supplies all of the natural gas to fuel the power plant (i.e., tolling agreements). SDG&E's obligation to absorb natural gas costs may be a significant variable interest. In addition, SDG&E has the power to direct the dispatch of electricity generated by these facilities. Based upon our analysis, the ability to direct the dispatch of electricity may have the most significant impacts on the economic performance of the entity owning the generating facility because of the associated exposure to the cost of natural gas, which fuels the plants, and the value of electricity produced. To the extent that SDG&E (1) is obligated to purchase and provide fuel to operate the facility, (2) has the power to direct the dispatch, and (3) purchases all of the output from the facility for a substantial portion of the facility's useful life, SDG&E may be the primary beneficiary of the entity owning the generating facility. SDG&E determines if it is the primary beneficiary in these cases based on the operational characteristics of the facility, including its expected power generation output relative to its capacity to generate and the financial structure of the entity, among other factors. If we determine that SDG&E is the primary beneficiary, Sempra Energy and SDG&E consolidate the entity that owns the facility as a VIE, as we discuss below.

Otay Mesa VIE

SDG&E has a 10-year agreement to purchase power generated at the Otay Mesa Energy Center (OMEC), a 605-MW generating facility that began commercial operations in October 2009. In addition to tolling, the agreement provides SDG&E with the option to purchase the power plant at the end of the contract term in 2019, or upon earlier termination of the purchased-power agreement, at a predetermined price subject to adjustments based on performance of the facility. If SDG&E does not exercise its option, under certain circumstances, it may be required to purchase the power plant at a predetermined price.

The facility owner, Otay Mesa Energy Center LLC (OMEC LLC), is a VIE (Otay Mesa VIE), of which SDG&E is the primary beneficiary. SDG&E has no OMEC LLC voting rights and does not operate OMEC. In addition to the risks absorbed under the tolling agreement, SDG&E absorbs separately through the put option a significant portion of the risk that the value of Otay Mesa VIE could decline. Sempra Energy and SDG&E have consolidated Otay Mesa VIE since the second quarter of 2007. Otay Mesa VIE's equity of $119 million at March 31, 2011 and $113 million at December 31, 2010 is included on the Condensed Consolidated Balance Sheets in Other Noncontrolling Interests for Sempra Energy and in Noncontrolling Interest for SDG&E.

OMEC LLC has a loan outstanding of $362 million at March 31, 2011, the proceeds of which were used for the construction of OMEC. The loan is with third party lenders and is secured by OMEC's property, plant and equipment. SDG&E is not a party to the loan agreement and does not have any additional implicit or explicit financial responsibility to OMEC LLC. The loan fully matures in April 2019 and bears interest at rates varying with market rates. In addition, OMEC LLC has entered into interest rate swap agreements to moderate its exposure to interest rate changes. We provide additional information concerning the interest rate swaps in Note 7.

Other Variable Interest Entities

SDG&E's power procurement is subject to reliability requirements that may require SDG&E to enter into various power purchase arrangements which include variable interests. SDG&E evaluates these contracts to determine if variable interests exist and, based on the qualitative and quantitative analyses described above, if SDG&E, and thereby Sempra Energy, is the primary beneficiary. SDG&E has determined that no contracts, other than that relating to Otay Mesa VIE mentioned above, result in SDG&E being the primary beneficiary as of March 31, 2011. In addition to the tolling agreements described above, other variable interests involve various elements of fuel and power costs, including certain construction costs, tax credits, and other components of cash flow expected to be paid to or received by our counterparties. In most of these cases, the expectation of variability is not substantial, and SDG&E generally does not have the power to direct activities that most significantly impact the economic performance of the other VIEs. If our ongoing evaluation of these VIEs were to conclude that SDG&E becomes the primary beneficiary and consolidation by SDG&E becomes necessary, the effects are not expected to significantly affect the financial position, results of operations, or liquidity of SDG&E. SDG&E is not exposed to losses or gains as a result of these other VIEs, because all such variability would be recovered in rates.

Sempra Energy's other business units also enter into arrangements which could include variable interests. We evaluate these contracts based upon the qualitative and quantitative analyses described above. We have determined that these contracts are not variable interests in a VIE and therefore are not subject to the requirements of GAAP concerning the consolidation of VIEs.

PENSION AND OTHER POSTRETIREMENT BENEFITS

Net Periodic Benefit Cost

The following three tables provide the components of net periodic benefit cost:

NET PERIODIC BENEFIT COST -- SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended March 31,				Three months ended March 31,
	2011		2010		2011		2010
Service cost	$	22	$	22	$	7	$	7
Interest cost		43		43		17		15
Expected return on assets		(37)		(36)		(12)		(12)
Amortization of:
Prior service cost		1		1		―		―
Actuarial loss		9		8		4		2
Regulatory adjustment		(29)		(29)		2		2
Total net periodic benefit cost	$	9	$	9	$	18	$	14

NET PERIODIC BENEFIT COST -- SDG&E
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended March 31,				Three months ended March 31,
	2011		2010		2011		2010
Service cost	$	7	$	7	$	2	$	2
Interest cost		13		12		2		2
Expected return on assets		(12)		(10)		(2)		(2)
Amortization of:
Prior service cost		1		1		1		1
Actuarial loss		2		3		―		―
Regulatory adjustment		(9)		(12)		1		1
Total net periodic benefit cost	$	2	$	1	$	4	$	4

NET PERIODIC BENEFIT COST -- SOCALGAS
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended March 31,				Three months ended March 31,
	2011		2010		2011		2010
Service cost	$	12	$	12	$	5	$	5
Interest cost		25		25		13		12
Expected return on assets		(22)		(23)		(10)		(10)
Amortization of:
Prior service cost (credit)		1		1		(1)		(1)
Actuarial loss		4		3		5		2
Regulatory adjustment		(20)		(17)		1		1
Total net periodic benefit cost	$	―	$	1	$	13	$	9

Benefit Plan Contributions

The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2011:

	Sempra Energy
(Dollars in millions)	Consolidated		SDG&E		SoCalGas
Contributions through March 31, 2011:
Pension plans	$	11	$	―	$	1
Other postretirement benefit plans		19		4		14
Total expected contributions in 2011:
Pension plans	$	266	$	82	$	118
Other postretirement benefit plans		76		16		55

EARNINGS PER SHARE

The following table provides the per share computations for our earnings for the three months ended March 31, 2011 and 2010. Basic earnings per common share (EPS) is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.

EARNINGS PER SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
	Three months ended March 31,
	2011		2010
Numerator:
Earnings/Income attributable to common shareholders	$	258	$	106

Denominator:
Weighted-average common shares outstanding for basic EPS		240,128		246,083
Dilutive effect of stock options, restricted stock awards and restricted stock units		1,775		4,290
Weighted-average common shares outstanding for diluted EPS		241,903		250,373

Earnings per share:
Basic	$	1.07	$	0.43
Diluted	$	1.07	$	0.42

The dilution from common stock options is based on the treasury stock method. Under this method, proceeds based on the exercise price plus unearned compensation and windfall tax benefits and minus tax shortfalls are assumed to be used to repurchase shares on the open market at the average market price for the period. The windfall tax benefits are tax deductions we would receive upon the assumed exercise of stock options in excess of the deferred income taxes we recorded related to the compensation expense on the stock options. Tax shortfalls occur when the assumed tax deductions are less than recorded deferred income taxes. The calculation excludes options for which the exercise price on common stock was greater than the average market price during the period. We had 2,120,225 and 2,180,900 such stock options outstanding during the three months ended March 31, 2011 and 2010, respectively.

We had 10,800 and 9,900 stock options outstanding during the three months ended March 31, 2011 and 2010, respectively, that were antidilutive because of the unearned compensation and windfall tax benefits included in the assumed proceeds under the treasury stock method.

The dilution from unvested restricted stock awards (RSAs) and restricted stock units (RSUs) is also based on the treasury stock method. Assumed proceeds equal to the unearned compensation and windfall tax benefits and minus tax shortfalls related to the awards and units are assumed to be used to repurchase shares on the open market at the average market price for the period. The windfall tax benefits or tax shortfalls are the difference between tax deductions we would receive upon the assumed vesting of RSAs or RSUs and the deferred income taxes we recorded related to the compensation expense on such awards and units. During the three months ended March 31, 2011, we had 997,609 RSUs that were antidilutive because of the unearned compensation and windfall tax benefits included in the assumed proceeds under the treasury stock method. There were no such antidilutive RSUs for the three months ended March 31, 2010 and no such antidilutive RSAs for the three months ended March 31, 2011 or 2010.

Because our RSAs and RSUs are performance based, they are included in potential dilutive shares at zero to 100 percent and zero to 150 percent, respectively, to the extent that they currently meet the performance requirements for vesting, subject to the application of the treasury stock method. For the three months ended March 31, 2011, 762,592 shares related to RSU grants were excluded from potential dilutive shares, as the performance goal had not been met for these grants. The remaining 1,597,632 shares related to RSU grants were included at 70 to 88 percent, and 26,733 shares related to the RSA grants were included at 100 percent. For the three months ended March 31, 2010, 2,353,535 shares related to RSU grants were included in potential dilutive shares at 150 percent, and 850,349 shares related to RSA grants were included at 100 percent based on the applicable performance threshold.

COMMON STOCK REPURCHASE PROGRAM

In September 2010, we entered into a share repurchase program under which we prepaid $500 million to repurchase shares of our common stock in a share forward transaction. The program was completed in March 2011 with a total of 9,574,435 shares repurchased at an average price of $52.22 per share. Our outstanding shares used to calculate earnings per share were reduced by the number of shares repurchased when they were delivered to us, and the $500 million purchase price was recorded as a reduction in shareholders' equity upon its prepayment. We received 5,670,006 shares during the quarter ended September 30, 2010; 2,407,994 shares on October 4, 2010 and 1,496,435 shares on March 22, 2011. We discuss the repurchase program further in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report.

SHARE-BASED COMPENSATION

We discuss our share-based compensation plans in Note 9 of the Notes to Consolidated Financial Statements in the Annual Report. We recorded share-based compensation expense, net of income taxes, of $6 million and $7 million for the three months ended March 31, 2011 and 2010, respectively. Pursuant to our share-based compensation plans, we granted 999,200 restricted stock units and 11,876 restricted stock awards during the three months ended March 31, 2011, primarily in January.

CAPITALIZED FINANCING COSTS

Capitalized financing costs include capitalized interest costs and, at the Sempra Utilities, an allowance for funds used during construction (AFUDC) related to both debt and equity financing of construction projects. The following table shows capitalized financing costs for the three months ended March 31, 2011 and 2010.

CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Three months ended March 31,
	2011		2010
Sempra Energy Consolidated:
AFUDC related to debt	$	8	$	5
AFUDC related to equity		19		13
Other capitalized financing costs		6		7
Total Sempra Energy Consolidated	$	33	$	25
SDG&E:
AFUDC related to debt	$	6	$	3
AFUDC related to equity		15		9
Total SDG&E	$	21	$	12
SoCalGas:
AFUDC related to debt	$	2	$	2
AFUDC related to equity		4		4
Total SoCalGas	$	6	$	6

COMPREHENSIVE INCOME

The following table provides a reconciliation of net income to comprehensive income.

COMPREHENSIVE INCOME
(Dollars in millions)
		Three months ended March 31,
		2011						2010
		Share-		Non-				Share-		Non-
		holders'		controlling		Total		holders'		controlling		Total
		Equity(1)		Interests		Equity		Equity(1)		Interests		Equity
Sempra Energy Consolidated:
Net income (loss)(2)		$	260	$	4	$	264	$	108	$	(8)	$	100
Foreign currency translation
adjustments			(6)		―		(6)		(4)		―		(4)
Financial instruments			2		1		3		―		2		2
Net actuarial gain			2		―		2		1		―		1
Comprehensive income (loss)		$	258	$	5	$	263	$	105	$	(6)	$	99
SDG&E:
Net income (loss)		$	90	$	4	$	94	$	84	$	(8)	$	76
Financial instruments			―		1		1		―		2		2
Comprehensive income (loss)		$	90	$	5	$	95	$	84	$	(6)	$	78
PE:
Net income(2)		$	68	$	―	$	68	$	65	$	―	$	65
Comprehensive income		$	68	$	―	$	68	$	65	$	―	$	65
SoCalGas:
Net income		$	68	$	―	$	68	$	65	$	―	$	65
Comprehensive income		$	68	$	―	$	68	$	65	$	―	$	65
(1)	Shareholders' equity of Sempra Energy Consolidated, SDG&E, PE or SoCalGas as indicated in left margin.
(2)	Before preferred dividends of subsidiaries.

The amounts for comprehensive income in the table above are net of income tax expense as follows:

INCOME TAX EXPENSE ASSOCIATED WITH OTHER COMPREHENSIVE INCOME

(Dollars in millions)

Three months ended March 31,

2011

2010

Share-

Non-

Share-

Non-

holders'

controlling

Total

holders'

controlling

Total

Equity

Interests

Equity

Interests

Equity

Sempra Energy Consolidated:

Financial instruments

―

Net actuarial gain

―

Income tax amounts associated with other comprehensive income during the three months ended March 31, 2011 and 2010 at SDG&E, PE and SoCalGas were negligible.

SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

The following two tables provide a reconciliation of Sempra Energy and SDG&E shareholders' equity and noncontrolling interests for the three months ended March 31, 2011 and 2010. There were no changes in the equity of PE's noncontrolling interests for the three months ended March 31, 2011 or 2010.

SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS
(Dollars in millions)
		Sempra
		Energy		Non-
		Shareholders'		controlling		Total
		Equity		Interests		Equity
Balance at December 31, 2010	$	9,027	$	211	$	9,238
Comprehensive income		258		5		263
Share-based compensation expense		11		―		11
Common stock dividends declared		(115)		―		(115)
Preferred dividends of subsidiaries		(2)		―		(2)
Issuance of common stock		15		―		15
Tax benefit related to share-based compensation		2		―		2
Repurchase of common stock		(17)		―		(17)
Common stock released from ESOP		7		―		7
Equity contributed by noncontrolling interests		―		1		1
Balance at March 31, 2011	$	9,186	$	217	$	9,403
Balance at December 31, 2009	$	9,007	$	244	$	9,251
Comprehensive income (loss)		105		(6)		99
Share-based compensation expense		13		―		13
Common stock dividends declared		(96)		―		(96)
Preferred dividends of subsidiaries		(2)		―		(2)
Issuance of common stock		27		―		27
Tax benefit related to share-based compensation		1		―		1
Repurchase of common stock		(2)		―		(2)
Common stock released from ESOP		7		―		7
Distributions to noncontrolling interests		―		(3)		(3)
Balance at March 31, 2010	$	9,060	$	235	$	9,295

SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST
(Dollars in millions)
		SDG&E		Non-
		Shareholder's		controlling		Total
		Equity		Interest		Equity
Balance at December 31, 2010	$	3,108	$	113	$	3,221
Comprehensive income		90		5		95
Preferred stock dividends declared		(1)		―		(1)
Capital contribution		200		―		200
Equity contributed by noncontrolling interest		―		1		1
Balance at March 31, 2011	$	3,397	$	119	$	3,516
Balance at December 31, 2009	$	2,739	$	146	$	2,885
Comprehensive income (loss)		84		(6)		78
Preferred stock dividends declared		(1)		―		(1)
Distributions to noncontrolling interest		―		(2)		(2)
Balance at March 31, 2010	$	2,822	$	138	$	2,960

TRANSACTIONS WITH AFFILIATES

Loans to Unconsolidated Affiliates

Sempra Pipelines & Storage has a U.S. dollar-denominated loan to Camuzzi Gas del Sur S.A., an affiliate of Sempra Pipelines & Storage's Argentine investments, which we discuss in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. The loan has a $29 million balance outstanding at a variable interest rate (7.3 percent as of March 31, 2011). In May 2010, the maturity date of the loan was extended from June 2010 to June 30, 2011. The loan is fully reserved at March 31, 2011.

Investments

Sempra Pipelines & Storage has an investment in bonds issued by Chilquinta Energía S.A. that we discuss in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.

Other Affiliate Transactions

Sempra Energy, SDG&E and SoCalGas provide certain services to each other and are charged an allocable share of the cost of such services. Amounts due to/from affiliates are as follows:

AMOUNTS DUE TO AND FROM AFFILIATES AT SDG&E, PE AND SOCALGAS
(Dollars in millions)
		March 31,		December 31,
		2011		2010
SDG&E
Current:
Due from SoCalGas		$	―	$	11
Due from various affiliates			1		1
		$	1	$	12

Due to Sempra Energy		$	23	$	16
Due to SoCalGas			21		―
		$	44	$	16

Income taxes due from Sempra Energy(1)		$	36	$	25

PE
Current:
Due from Sempra Energy		$	357	$	60
Due from SDG&E			21		―
Due from various affiliates			5		8
		$	383	$	68

Due to affiliate		$	85	$	85
Due to SDG&E			―		11
		$	85	$	96

Income taxes due from Sempra Energy(1)		$	1	$	6

Noncurrent:
Promissory note due from Sempra Energy, variable rate based on
short-term commercial paper rates (0.19% at March 31, 2011)		$	505	$	502

SoCalGas
Current:
Due from Sempra Energy		$	357	$	60
Due from SDG&E			21		―
Due from various affiliates			―		3
		$	378	$	63

Due to SDG&E		$	―	$	11

Income taxes due to Sempra Energy(1)		$	(4)	$	(3)
(1)	SDG&E, PE and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from the companies' having always filed a separate return.

Revenues from unconsolidated affiliates at the Sempra Utilities are as follows:

REVENUES FROM UNCONSOLIDATED AFFILIATES AT THE SEMPRA UTILITIES
(Dollars in millions)

	Three months ended March 31,
	2011		2010
SDG&E	$	2	$	1
SoCalGas		13		11

Transactions with RBS Sempra Commodities

Several of our business units have engaged in transactions with RBS Sempra Commodities. As a result of the divestiture of substantially all of RBS Sempra Commodities' businesses, transactions between our business units and RBS Sempra Commodities will be assigned over time to the buyers of the joint venture businesses. Amounts in our Condensed Consolidated Financial Statements related to these transactions are as follows:

AMOUNTS RECORDED FOR TRANSACTIONS WITH RBS SEMPRA COMMODITIES
(Dollars in millions)

		Three months ended March 31,
		2011		2010
Revenues:
SoCalGas		$	―	$	4
Sempra Generation(1)			9		9
Sempra LNG			36		73
Total revenues		$	45	$	86

Cost of natural gas:
SDG&E		$	―	$	1
SoCalGas			―		12
Sempra Generation			26		16
Sempra Pipelines & Storage			7		9
Sempra LNG			28		67
Total cost of natural gas		$	61	$	105
(1)	Includes amounts in 2010 for Sempra Rockies Marketing, previously reported in the Sempra Commodities segment, as we discuss in Note 11.

		March 31,		December 31,
		2011		2010
Fixed-price contracts and other derivatives - Net Asset (Liability):
Sempra Generation		$	19	$	17
Sempra LNG			(28)		(35)
Total		$	(9)	$	(18)

Due to unconsolidated affiliates:
Sempra Generation		$	7	$	11
Sempra LNG			17		13
Parent and other			11		11
Total		$	35	$	35

Due from unconsolidated affiliates:
SoCalGas		$	―	$	3
Sempra Generation			4		13
Sempra LNG			8		13
Parent and other			5		5
Total		$	17	$	34

OTHER INCOME, NET

Other Income, Net on the Condensed Consolidated Statements of Operations consists of the following:

OTHER INCOME, NET
(Dollars in millions)
		Three months ended March 31,
		2011		2010
Sempra Energy Consolidated:
Allowance for equity funds used during construction		$	19	$	13
Investment gains(1)			8		3
Gains (losses) on interest rate and foreign exchange instruments(2)			10		(9)
Regulatory interest, net			―		(1)
Sundry, net			6		2
Total		$	43	$	8
SDG&E:
Allowance for equity funds used during construction		$	15	$	9
Losses on interest rate instruments(3)			―		(9)
Regulatory interest, net			―		(1)
Sundry, net			1		1
Total		$	16	$	―
SoCalGas and PE:
Allowance for equity funds used during construction		$	4	$	4
Sundry, net			(1)		―
Total at SoCalGas and PE		$	3	$	4
(1)	Represents investment gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans.
(2)	Sempra Energy Consolidated includes Otay Mesa VIE and additional instruments.
(3)	Related to Otay Mesa VIE.

INCOME TAXES

INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
		Three months ended March 31,
		2011				2010
		Income Tax	Effective Income			Income Tax	Effective Income
		Expense	Tax Rate			Expense	Tax Rate
Sempra Energy Consolidated	$	109	32	%	$	58	42	%
SDG&E		49	34			31	29
PE		37	35			57	47
SoCalGas		37	35			56	46

Changes in Effective Income Tax Rates

Sempra Energy Consolidated

The decrease in the effective income tax rate for the three months ended March 31, 2011 was primarily due to:

a $16 million write-down in 2010 of the deferred tax assets related to other postretirement benefits, as a result of a change in U.S. tax law that eliminates a future deduction, starting in 2013, for retiree healthcare funded by the Medicare Part D subsidy;
lower tax expense in 2011 due to Mexican currency translation and inflation adjustments;
higher planned investment tax credits;
higher exclusions from taxable income of the equity portion of AFUDC; and
higher deductions for self-developed software costs; offset by
lower favorable adjustments related to prior years' income tax issues;
higher pretax book income; and

an increase in the amount by which book depreciation for the Sempra Utilities exceeds normalized tax depreciation, which is not treated as a deferred tax asset for ratemaking purposes.

SDG&E

The increase in SDG&E's effective income tax rate for the three months ended March 31, 2011 was primarily due to:

lower favorable adjustments related to prior years' income tax issues; and
higher pretax book income; offset by
a $3 million write-down in 2010 of the deferred tax assets related to other postretirement benefits as a result of a change in U.S. tax law, as we discuss above;
the impact of Otay Mesa VIE, as we discuss below; and

higher exclusions from taxable income of the equity portion of AFUDC.

Results for Sempra Energy Consolidated and SDG&E include Otay Mesa VIE, which is consolidated, and therefore, their effective income tax rates are impacted by the VIE's stand-alone effective income tax rate.

PE and SoCalGas

The decrease in PE's and SoCalGas' effective income tax rates for the three months ended March 31, 2011 was primarily due to:

a $13 million write-down in 2010 of the deferred tax assets related to other postretirement benefits as a result of a change in U.S. tax law, as we discuss above; and
higher deductions for self-developed software costs; offset by

an increase in the amount by which book depreciation exceeds normalized tax depreciation, which is not treated as a deferred tax asset for ratemaking purposes.

INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
		Three months ended March 31,
		2011				2010
		Income Tax	Effective Income			Income Tax	Effective Income
		Expense	Tax Rate			Expense	Tax Rate
Sempra Energy Consolidated	$	109	32	%	$	58	42	%
SDG&E		49	34			31	29
PE		37	35			57	47
SoCalGas		37	35			56	46

DEBT AND CREDIT FACILITIES

3 Months Ended

Mar. 31, 2011

Notes to Consolidated Financial Statements [Abstract]

Debt and Credit Facilities

NOTE 6. DEBT AND CREDIT FACILITIES

Committed Lines of Credit

At March 31, 2011, Sempra Energy Consolidated had $3.8 billion in committed lines of credit to provide liquidity and to support commercial paper and variable-rate demand notes, the major components of which we detail below. Available unused credit on these lines at March 31, 2011 was $2.8 billion.

Sempra Energy

Sempra Energy has a $1 billion, four-year syndicated revolving credit agreement expiring in October 2014. Citibank, N.A. serves as administrative agent for the syndicate of 23 lenders. No single lender has greater than a 7-percent share.

Borrowings bear interest at benchmark rates plus a margin that varies with market index rates and Sempra Energy's credit ratings. The facility requires Sempra Energy to maintain a ratio of total indebtedness to total capitalization (as defined in the agreement) of no more than 65 percent at the end of each quarter. The facility also provides for issuance of up to $400 million of letters of credit on behalf of Sempra Energy with the amount of borrowings otherwise available under the facility reduced by the amount of outstanding letters of credit.

At March 31, 2011, Sempra Energy had $26 million of variable-rate demand notes outstanding supported by the facility.

Sempra Global

Sempra Global has a $2 billion, four-year syndicated revolving credit agreement expiring in October 2014. Citibank, N.A. serves as administrative agent for the syndicate of 23 lenders. No single lender has greater than a 7-percent share.

Sempra Energy guarantees Sempra Global's obligations under the credit facility. Borrowings bear interest at benchmark rates plus a margin that varies with market index rates and Sempra Energy's credit ratings. The facility requires Sempra Energy to maintain a ratio of total indebtedness to total capitalization (as defined in the agreement) of no more than 65 percent at the end of each quarter.

At March 31, 2011, Sempra Global had $766 million of commercial paper outstanding supported by the facility. At March 31, 2011, $200 million of the commercial paper outstanding is classified as long-term debt based on management's intent and ability to maintain this level of borrowing on a long-term basis either supported by this credit facility or by issuing long-term debt.

Sempra Utilities

SDG&E and SoCalGas have a combined $800 million, four-year syndicated revolving credit agreement expiring in October 2014. JPMorgan Chase Bank serves as administrative agent for the syndicate of 22 lenders. No single lender has greater than a 7-percent share. The agreement permits each utility to individually borrow up to $600 million, subject to a combined limit of $800 million for both utilities. It also provides for the issuance of letters of credit on behalf of each utility subject to a combined letter of credit commitment of $200 million for both utilities. The amount of borrowings otherwise available under the facility is reduced by the amount of outstanding letters of credit.

Borrowings under the facility bear interest at benchmark rates plus a margin that varies with market index rates and the borrowing utility's credit ratings. The agreement requires each utility to maintain a ratio of total indebtedness to total capitalization (as defined in the agreement) of no more than 65 percent at the end of each quarter.

Each utility's obligations under the agreement are individual obligations, and a default by one utility would not constitute a default by the other utility or preclude borrowings by, or the issuance of letters of credit on behalf of, the other utility.

At March 31, 2011, SDG&E and SoCalGas had no outstanding borrowings and SDG&E had $237 million of variable-rate demand notes outstanding supported by the facility. Available unused credit on the lines at March 31, 2011 was $363 million at SDG&E and $563 million at SoCalGas; SoCalGas' availability reflects the impact of SDG&E's use of the combined credit available on the line.

GUARANTEES

RBS Sempra Commodities

As we discuss in Note 4, in 2010 and early 2011, Sempra Energy, RBS and RBS Sempra Commodities sold substantially all of the businesses and assets within the partnership in four separate transactions. In connection with each of these transactions, the buyers are, subject to certain qualifications, obligated to replace any guarantees that we have issued in connection with the applicable businesses sold with guarantees of their own. During the process of replacing these guarantees, the buyers are obligated to indemnify us in accordance with the applicable transaction documents for any claims or losses in connection with the guarantees. With respect to the transaction with Noble Group, for those guarantees that Noble Group is not able to replace, we have agreed to allow Noble Group to continue trading under such guarantees until June 1, 2011.

We have indemnified the partnership for certain litigation and tax liabilities related to the businesses purchased by the partnership from us. We recorded these obligations at a fair value of $5 million on April 1, 2008, the date we formed the partnership. This liability was amortized over its expected life.

RBS is obligated to provide RBS Sempra Commodities with certain of its working-capital requirements. We provide back-up guarantees for a portion of RBS Sempra Commodities' remaining trading obligations. Some of these back-up guarantees may continue for a prolonged period of time. RBS has fully indemnified us for any claims or losses in connection with these arrangements, with the exception of those obligations for which JP Morgan has agreed to indemnify us. We discuss the indemnification release in Note 4.

RBS Sempra Commodities' net trading liabilities supported by Sempra Energy's guarantees at March 31, 2011 were $286 million, consisting of guaranteed trading obligations net of collateral. The amount of guaranteed net trading liabilities varies from day to day with the value of the trading obligations and related collateral.

Other Guarantees

Sempra Generation and BP Wind Energy currently hold 50-percent ownership interests in Fowler Ridge II. In August 2010, Fowler Ridge II obtained a $348 million term loan expiring in August 2022. The proceeds were used to return $180 million of each owner's investment in the joint venture. The loan agreement requires Sempra Generation and BP Wind Energy to return cash to the project in the event that the project does not meet certain cash flow criteria or in the event that the project's debt service and operation and maintenance reserve accounts are not maintained at specific thresholds. Sempra Generation recorded a liability of $9 million for the fair value of its obligation associated with the cash flow requirements, which constitutes a guarantee. This liability is being amortized over its expected life. The outstanding loan is not guaranteed by the partners.

WEIGHTED AVERAGE INTEREST RATES

The weighted average interest rates on the total short-term debt outstanding at Sempra Energy were 0.49 percent and 0.46 percent at March 31, 2011 and December 31, 2010, respectively. The weighted average interest rates at both March 31, 2011 and December 31, 2010 include commercial paper borrowings classified as long-term, as we discuss above.

LONG-TERM DEBT

In March 2011, Sempra Energy publicly offered and sold $500 million of 2-percent notes and $300 million of floating rate notes (1.069 percent as of March 31, 2011), both maturing in 2014. The floating rate notes bear interest at a rate equal to the three-month London interbank offered rate (LIBOR) plus 0.76 percent. The interest rate is reset quarterly.

INTEREST RATE SWAPS

We discuss our fair value interest rate swaps and interest rate swaps to hedge cash flows in Note 7.

DERIVATIVE FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2011

Notes to Consolidated Financial Statements [Abstract]

Derivative Financial Instruments

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS

We use derivative instruments primarily to manage exposures arising in the normal course of business. These exposures are commodity market risk and benchmark interest rate risk. We may also manage foreign exchange rate exposures using derivatives. Our use of derivatives for these risks is integrated into the economic management of our anticipated revenues, anticipated expenses, assets and liabilities. Derivatives may be effective in mitigating these risks that could lead to declines in anticipated revenues or increases in anticipated expenses, or that our asset values may fall or our liabilities increase. Accordingly, our derivative activity summarized below generally represents an impact that is intended to offset associated revenues, expenses, assets or liabilities that are not presented below.

We record all derivatives at fair value on the Condensed Consolidated Balance Sheets. We designate each derivative as (1) a cash flow hedge, (2) a fair value hedge, or (3) undesignated. Depending on the applicability of hedge accounting and, for the Sempra Utilities and other operations subject to regulatory accounting, the requirement to pass impacts through to customers, the impact of derivative instruments may be offset in other comprehensive income (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the settlements of derivative instruments as operating activities on the Condensed Consolidated Statements of Cash Flows.

In certain cases, we apply the normal purchase or sale exception to derivative accounting and have other commodity contracts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below.

HEDGE ACCOUNTING

We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that a given future revenue or expense item may vary, and other criteria.

We may designate an interest rate derivative as a fair value hedging instrument if it effectively converts our own debt from a fixed interest rate to a variable rate. The combination of the derivative and debt instruments results in fixing that portion of the fair value of the debt that is related to benchmark interest rates. Designating fair value hedges is dependent on the instrument being used, the effectiveness of the instrument in offsetting changes in the fair value of our debt instruments, and other criteria.

ENERGY DERIVATIVES

Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business.

The Sempra Utilities use natural gas energy derivatives, on their customers' behalf, with the objective of managing price risk and basis risks, and lowering natural gas costs. These derivatives include fixed price natural gas positions, options, and basis risk instruments, which are either exchange-traded or over-the-counter financial instruments. This activity is governed by risk management and transacting activity plans that have been filed with and approved by the CPUC. Natural gas derivative activities are recorded as commodity costs that are offset by regulatory account balances and are recovered in rates. Net commodity cost impacts on the Condensed Consolidated Statements of Operations are reflected in Cost of Electric Fuel and Purchased Power or in Cost of Natural Gas.
SDG&E is allocated and may purchase congestion revenue rights (CRRs), which serve to reduce the regional electricity price volatility risk that may result from local transmission capacity constraints. Unrealized gains and losses do not impact earnings, as they are offset by regulatory account balances. Realized gains and losses associated with CRRs are recorded in Cost of Electric Fuel and Purchased Power, which is recoverable in rates, on the Condensed Consolidated Statements of Operations.
Sempra Generation uses natural gas and electricity instruments to market energy products and optimize the earnings of its power generation fleet. Gains and losses associated with these undesignated derivatives are recognized in Sempra Global and Parent Revenues or in Cost of Natural Gas, Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations.
Sempra LNG and Sempra Pipelines & Storage use natural gas derivatives to market energy products and optimize the earnings of our liquefied natural gas business and Sempra Pipelines & Storage's natural gas storage and transportation assets. Sempra Pipelines & Storage also uses natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its Mexican distribution operations. Sempra Pipelines & Storage's derivatives are either undesignated or are recorded as commodity costs that are offset by regulatory account balances and are recovered in rates. The impacts on earnings are recognized in Sempra Global and Parent Revenues or in Cost of Natural Gas, Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Sempra LNG's derivatives are undesignated, and their impact on earnings is recorded in Sempra Global and Parent Revenues on the Condensed Consolidated Statements of Operations.

From time to time, our various businesses, including the Sempra Utilities, may use other energy derivatives to hedge exposures such as the price of vehicle fuel.

We summarize net energy derivative volumes as of March 31, 2011 and December 31, 2010 as follows:


Business Unit and Commodity		March 31, 2011	December 31, 2010
Sempra Utilities:
SDG&E:
Natural gas		48 million MMBtu	51 million MMBtu	(1)
Congestion revenue rights		17 million MWh	21 million MWh	(2)

Sempra Global:
Sempra Generation - electric power		1 million MWh	1 million MWh
Sempra Pipelines & Storage - natural gas		3 million MMBtu	8 million MMBtu
Sempra LNG - natural gas		6 million MMBtu	7 million MMBtu
(1)	Million British thermal units
(2)	Megawatt hours

In addition to the amounts noted above, we frequently use commodity derivatives to manage risks associated with the physical locations of our customers, assets and other contractual obligations, such as natural gas purchases and sales.

INTEREST RATE DERIVATIVES

We are exposed to interest rates primarily as a result of our current and expected use of financing. We periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. We utilize interest rate swaps typically designated as fair value hedges, as a means to achieve our targeted level of variable rate debt as a percent of total debt. In addition, we may utilize interest rate swaps, which are typically designated as cash flow hedges, to lock in interest rates in anticipation of future financings.

Interest rate derivatives are utilized by the Sempra Utilities as well as by other Sempra Energy subsidiaries. Although the Sempra Utilities generally recover borrowing costs in rates over time, the use of interest rate derivatives is subject to certain regulatory constraints, and the impact of interest rate derivatives may not be recovered from customers as timely as described above with regard to natural gas derivatives. Accordingly, interest rate derivatives are generally accounted for as hedges at the Sempra Utilities, as at the rest of Sempra Energy's subsidiaries. Separately, Otay Mesa VIE has entered into interest rate swap agreements to moderate its exposure to interest rate changes.

The net notional amounts of our interest rate derivatives as of March 31, 2011 and December 31, 2010 were:

		March 31, 2011			December 31, 2010
(Dollars in millions)		Notional Debt		Maturities	Notional Debt		Maturities
Sempra Energy Consolidated(1)		$	15-305	2013-2019	$	215-355	2011-2019
SDG&E(1)			285-362	2019		285-365	2019
SoCalGas			―	―		150	2011
(1)	Includes Otay Mesa VIE. All of SDG&E's interest rate derivatives relate to Otay Mesa VIE.

FINANCIAL STATEMENT PRESENTATION

The following table provides the fair values of derivative instruments, without consideration of margin deposits held or posted, on the Condensed Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010:

DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
		March 31, 2011
									Deferred
									credits
			Current				Current		and other
			assets:				liabilities:		liabilities:
			Fixed-price		Investments		Fixed-price		Fixed-price
			contracts		and other		contracts		contracts
			and other		assets:		and other		and other
Derivatives designated as hedging instruments			derivatives(1)		Sundry		derivatives(2)		derivatives
Sempra Energy Consolidated:
Interest rate instruments		$	6	$	―	$	―	$	(9)

Derivatives not designated as hedging instruments
Sempra Energy Consolidated:
Interest rate instruments(3)		$	9	$	19	$	(25)	$	(49)
Commodity contracts not subject to rate recovery			54		16		(39)		(30)
Associated offsetting commodity contracts			(8)		(2)		8		2
Commodity contracts subject to rate recovery			7		2		(30)		(23)
Associated offsetting commodity contracts			(4)		(1)		4		1
Total		$	58	$	34	$	(82)	$	(99)
SDG&E:
Interest rate instruments(3)		$	―	$	―	$	(17)	$	(36)
Commodity contracts not subject to rate recovery			1		―		―		―
Commodity contracts subject to rate recovery			5		2		(25)		(23)
Associated offsetting commodity contracts			(2)		(1)		2		1
Total		$	4	$	1	$	(40)	$	(58)
SoCalGas:
Commodity contracts not subject to rate recovery		$	2	$	―	$	―	$	―
Commodity contracts subject to rate recovery			2		―		(3)		―
Associated offsetting commodity contracts			(2)		―		2		―
Total		$	2	$	―	$	(1)	$	―

		December 31, 2010
									Deferred
									credits
			Current				Current		and other
			assets:				liabilities:		liabilities:
			Fixed-price		Investments		Fixed-price		Fixed-price
			contracts		and other		contracts		contracts
			and other		assets:		and other		and other
Derivatives designated as hedging instruments			derivatives(1)		Sundry		derivatives(2)		derivatives
Sempra Energy Consolidated:
Interest rate instruments		$	3	$	―	$	―	$	―
SoCalGas:
Interest rate instrument		$	3	$	―	$	―	$	―

Derivatives not designated as hedging instruments
Sempra Energy Consolidated:
Interest rate instruments(3)		$	9	$	22	$	(25)	$	(57)
Commodity contracts not subject to rate recovery			59		20		(44)		(34)
Associated offsetting commodity contracts			(2)		(8)		2		8
Commodity contracts subject to rate recovery			5		―		(43)		(27)
Associated offsetting commodity contracts			(37)		(26)		37		26
Total		$	34	$	8	$	(73)	$	(84)
SDG&E:
Interest rate instruments(3)		$	―	$	―	$	(17)	$	(41)
Commodity contracts not subject to rate recovery			1		―		―		―
Commodity contracts subject to rate recovery			2		―		(35)		(27)
Associated offsetting commodity contracts			(34)		(26)		34		26
Total		$	(31)	$	(26)	$	(18)	$	(42)
SoCalGas:
Commodity contracts not subject to rate recovery		$	1	$	―	$	―	$	―
Commodity contracts subject to rate recovery			3		―		(3)		―
Associated offsetting commodity contracts			(3)		―		3		―
Total		$	1	$	―	$	―	$	―
(1)	Included in Current Assets: Other for SoCalGas.
(2)	Included in Current Liabilities: Other for SoCalGas.
(3)	Includes Otay Mesa VIE. All of SDG&E's amounts relate to Otay Mesa VIE.

The effects of derivative instruments designated as hedges on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2011 and 2010 were:

FAIR VALUE HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
			Gain (loss) on derivatives recognized in earnings
			Three months ended March 31,
		Location	2011		2010
Sempra Energy Consolidated:
Interest rate instruments		Interest Expense	$	3	$	2
Interest rate instruments		Other Income, Net		(5)		(2)
Total(1)			$	(2)	$	―
SoCalGas:
Interest rate instrument		Interest Expense	$	1	$	2
Interest rate instrument		Other Income, Net		(3)		(2)
Total(1)			$	(2)	$	―
(1)	There has been no hedge ineffectiveness on these swaps. Changes in the fair values of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt.

CASH FLOW HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
		Pretax gain (loss) recognized					Gain (loss) reclassified from AOCI
		in OCI (effective portion)					into earnings (effective portion)
		Three months ended March 31,					Three months ended March 31,
		2011		2010		Location	2011		2010
Sempra Energy Consolidated:
Interest rate instruments(1)		$	―	$	―	Interest Expense	$	(2)	$	(3)
Interest rate instruments			1		―	Equity Earnings, Net of Income Tax		(1)		―
Commodity contracts not subject
to rate recovery			―		1	Equity Earnings, Before Income Tax		―		2
Total		$	1	$	1		$	(3)	$	(1)
SDG&E:
Interest rate instruments(1)		$	―	$	―	Interest Expense	$	(1)	$	(2)
SoCalGas:
Interest rate instruments		$	―	$	―	Interest Expense	$	(1)	$	(1)
(1)	Amounts include Otay Mesa VIE. All of SDG&E's interest rate derivative activity relates to Otay Mesa VIE.

Sempra Energy expects that losses of $10 million, which are net of income tax benefit, that are currently recorded in Accumulated Other Comprehensive Income (Loss) related to cash flow hedges will be reclassified into earnings during the next twelve months as the hedged items affect earnings. Actual amounts ultimately reclassified to earnings depend on the commodity prices and interest rates in effect when derivative contracts that are currently outstanding mature.

SDG&E and SoCalGas expect that losses of $4 million and $1 million, respectively, which are net of income tax benefit, that are currently recorded in Accumulated Other Comprehensive Income (Loss) related to these cash flow hedges will be reclassified into earnings during the next twelve months as the hedged items affect earnings.

The effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2011 and 2010 were:

UNDESIGNATED DERIVATIVE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
			Gain (loss) on derivatives recognized in earnings
			Three months ended March 31,
		Location	2011		2010
Sempra Energy Consolidated:
Interest rate and foreign exchange
instruments(1)		Other Income, Net	$	10	$	(9)
Commodity contracts not subject
to rate recovery		Revenues: Sempra Global and Parent		6		15
Commodity contracts not subject		Cost of Natural Gas, Electric
to rate recovery		Fuel and Purchased Power		1		(6)
Commodity contracts not subject
to rate recovery		Other Operation and Maintenance		2		―
Commodity contracts subject		Cost of Electric Fuel
to rate recovery		and Purchased Power		9		(52)
Commodity contracts subject
to rate recovery		Cost of Natural Gas		―		(2)
Commodity contracts subject		Cost of Natural Gas, Electric
to rate recovery		Fuel and Purchased Power		―		(3)
Total			$	28	$	(57)
SDG&E:
Interest rate instruments(1)		Other Income, Net	$	―	$	(9)
Commodity contracts not subject
to rate recovery		Operation and Maintenance		1		―
Commodity contracts subject		Cost of Electric Fuel
to rate recovery		and Purchased Power		9		(52)
Total			$	10	$	(61)
SoCalGas:
Commodity contracts not subject
to rate recovery		Operation and Maintenance	$	1	$	―
Commodity contracts subject
to rate recovery		Cost of Natural Gas		―		(2)
Total			$	1	$	(2)
(1)	Amount for 2010 related to Otay Mesa VIE. Sempra Energy Consolidated also includes additional instruments.

CONTINGENT FEATURES

For Sempra Energy and SDG&E, certain of our derivative instruments contain credit limits which vary depending upon our credit ratings. Generally, these provisions, if applicable, may reduce our credit limit if a specified credit rating agency reduces our ratings. In certain cases, if our credit ratings were to fall below investment grade, the counterparty to these derivative liability instruments could request immediate payment or demand immediate and ongoing full collateralization.

For Sempra Energy, the total fair value of this group of derivative instruments in a net liability position at March 31, 2011 is $5 million. As of March 31, 2011, if the credit ratings of Sempra Energy were reduced below investment grade, $5 million of additional assets could be required to be posted as collateral for these derivative contracts.

For SDG&E, the total fair value of this group of derivative instruments in a net liability position at March 31, 2011 is $2 million. As of March 31, 2011, if the credit ratings of SDG&E were reduced below investment grade, $2 million of additional assets could be required to be posted as collateral for these derivative contracts.

For Sempra Energy, SDG&E, PE and SoCalGas, some of our derivative contracts contain a provision that would permit the counterparty, in certain circumstances, to request adequate assurance of our performance under the contracts. Such additional assurance, if needed, is not material and is not included in the amounts above.

FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2011

Notes to Consolidated Financial Statements [Abstract]

Fair Value Measurements

NOTE 8. FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments

The fair values of certain of our financial instruments (cash, temporary investments, accounts and notes receivable, dividends and accounts payable, short-term debt and customer deposits) approximate their carrying amounts. The following table provides the carrying amounts and fair values of the remaining financial instruments at March 31, 2011 and December 31, 2010:

FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
		March 31, 2011				December 31, 2010
		Carrying		Fair		Carrying		Fair
		Amount		Value		Amount		Value
Sempra Energy Consolidated:
Investments in affordable housing partnerships(1)		$	26	$	56	$	28	$	58
Total long-term debt(2)			8,868		9,320		8,330		8,883
Due to unconsolidated affiliate(3)			2		2		2		2
Preferred stock of subsidiaries			179		163		179		166
SDG&E:
Total long-term debt(4)		$	3,303	$	3,285	$	3,305	$	3,300
Contingently redeemable preferred stock			79		78		79		78
PE and SoCalGas:
Total long-term debt(5)		$	1,312	$	1,353	$	1,566	$	1,638

PE:
Preferred stock		$	80	$	65	$	80	$	68
Preferred stock of subsidiary			20		20		20		20

SoCalGas:
Preferred stock		$	22	$	21	$	22	$	21
(1)	We discuss our investments in affordable housing partnerships in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.
(2)	Before reductions for unamortized discount of $22 million at March 31, 2011 and December 31, 2010, and excluding capital leases of $217 million at March 31, 2011 and $221 million at December 31, 2010, and commercial paper classified as long-term debt of $200 million at March 31, 2011 and $800 million at December 31, 2010. We discuss our long-term debt in Note 6 above and Note 5 of the Notes to Consolidated Financial Statements in the Annual Report.
(3)	Note payable to Chilquinta Energía S.A. due April 1, 2011 is included in Due to Unconsolidated Affiliates, Current at March 31, 2011 and December 31, 2010.
(4)	Before reductions for unamortized discount of $10 million at March 31, 2011 and $9 million at December 31, 2010, and excluding capital leases of $200 million at March 31, 2011 and $202 million at December 31, 2010.
(5)	Before reductions for unamortized discount of $2 million at March 31, 2011 and $3 million at December 31, 2010, and excluding capital leases of $17 million at March 31, 2011 and $19 million at December 31, 2010.

Sempra Energy based the fair values of investments in affordable housing partnerships on the present value of estimated future cash flows, discounted at rates available for similar investments. All entities based the fair values of long-term debt and preferred stock on their quoted market prices or quoted market prices for similar securities.

Nuclear Decommissioning Trusts

We discuss SDG&E's investments in nuclear decommissioning trust funds in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. The following table shows the fair values and gross unrealized gains and losses for the securities held in the trust funds:

NUCLEAR DECOMMISSIONING TRUSTS
(Dollars in millions)
					Gross		Gross		Estimated
					Unrealized		Unrealized		Fair
			Cost		Gains		Losses		Value
As of March 31, 2011:
Debt securities
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies(1)		$	162	$	12	$	(3)	$	171
Municipal bonds(2)			95		2		(3)		94
Other securities(3)			36		3		―		39
Total debt securities			293		17		(6)		304
Equity securities			220		264		(1)		483
Cash and cash equivalents			9		―		―		9
Total		$	522	$	281	$	(7)	$	796
As of December 31, 2010:
Debt securities
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies		$	162	$	14	$	(2)	$	174
Municipal bonds			101		2		(3)		100
Other securities			22		3		―		25
Total debt securities			285		19		(5)		299
Equity securities			219		242		(1)		460
Cash and cash equivalents			10		―		―		10
Total		$	514	$	261	$	(6)	$	769
(1)	Maturity dates are 2011-2040.
(2)	Maturity dates are 2013-2057.
(3)	Maturity dates are 2011-2049.

The following table shows the proceeds from sales of securities in the trusts and gross realized gains and losses on those sales:

SALES OF SECURITIES
(Dollars in millions)
	Three months ended March 31,
	2011		2010
Proceeds from sales	$	42	$	40
Gross realized gains		1		1
Gross realized losses		(1)		(2)

Net unrealized gains (losses) are included in Regulatory Liabilities Arising from Removal Obligations on the Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification.

Derivative Positions Net of Cash Collateral

Each Condensed Consolidated Balance Sheet reflects the offsetting of net derivative positions with fair value amounts for cash collateral with the same counterparty when management believes a legal right of offset exists.

The following table provides the amount of fair value of cash collateral receivables that were not offset in the Condensed Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010:

	March 31,		December 31,
(Dollars in millions)	2011		2010
Sempra Energy Consolidated	$	42	$	32
SDG&E		31		25
SoCalGas		4		3

Fair Value Hierarchy

We discuss the valuation techniques and inputs we use to measure fair value and the definition of the three levels of the fair value hierarchy in Notes 1 and 2 of the Notes to Consolidated Financial Statements in the Annual Report. We have not changed the valuation techniques or inputs we use to measure fair value during the three months ended March 31, 2011.

The three tables below, by level within the fair value hierarchy, set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2011 and December 31, 2010. We also discuss our financial assets and liabilities recorded at fair value on a non-recurring basis. We classify financial assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities, and their placement within the fair value hierarchy levels.

The fair value of commodity derivative assets and liabilities is determined in accordance with our netting policy, as discussed above under "Derivative Positions Net of Cash Collateral."

The determination of fair values, shown in the tables below, incorporates various factors, including but not limited to, the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests).

We provide detail about our financial assets and liabilities that were accounted for at fair value on a recurring basis in Note 11 of the Notes to Consolidated Financial Statements in the Annual Report.

RECURRING FAIR VALUE MEASURES -- SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		At fair value as of March 31, 2011
									Collateral
			Level 1		Level 2		Level 3		netted		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	483	$	―	$	―	$	―	$	483
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			143		28		―		―		171
Municipal bonds			―		94		―		―		94
Other securities			―		39		―		―		39
Total debt securities			143		161		―		―		304
Total nuclear decommissioning trusts(1)			626		161		―		―		787
Interest rate instruments			―		34		―		―		34
Commodity contracts subject to rate recovery			32		1		3		―		36
Commodity contracts not subject to rate recovery			14		56		―		(9)		61
Investments			14		―		―		―		14
Total		$	686	$	252	$	3	$	(9)	$	932
Liabilities:
Interest rate instruments		$	―	$	83	$	―	$	―	$	83
Commodity contracts subject to rate recovery			44		5		―		(44)		5
Commodity contracts not subject to rate recovery			1		58		―		(1)		58
Total		$	45	$	146	$	―	$	(45)	$	146

		At fair value as of December 31, 2010
									Collateral
			Level 1		Level 2		Level 3		netted		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	460	$	―	$	―	$	―	$	460
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			144		30		―		―		174
Municipal bonds			―		100		―		―		100
Other securities			―		25		―		―		25
Total debt securities			144		155		―		―		299
Total nuclear decommissioning trusts(1)			604		155		―		―		759
Interest rate instruments			―		34		―		―		34
Commodity contracts subject to rate recovery			25		1		2		―		28
Commodity contracts not subject to rate recovery			9		66		―		(22)		53
Investments			1		―		―		―		1
Total		$	639	$	256	$	2	$	(22)	$	875
Liabilities:
Interest rate instruments		$	―	$	82	$	―	$	―	$	82
Commodity contracts subject to rate recovery			60		8		―		(60)		8
Commodity contracts not subject to rate recovery			―		67		―		―		67
Total		$	60	$	157	$	―	$	(60)	$	157
(1)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES -- SDG&E
(Dollars in millions)
		At fair value as of March 31, 2011
									Collateral
			Level 1		Level 2		Level 3		netted		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	483	$	―	$	―	$	―	$	483
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			143		28		―		―		171
Municipal bonds			―		94		―		―		94
Other securities			―		39		―		―		39
Total debt securities			143		161		―		―		304
Total nuclear decommissioning trusts(1)			626		161		―		―		787
Commodity contracts subject to rate recovery			30		1		3		―		34
Commodity contracts not subject to rate recovery			2		―		―		―		2
Total		$	658	$	162	$	3	$	―	$	823

Liabilities:
Interest rate instruments		$	―	$	53	$	―	$	―	$	53
Commodity contracts subject to rate recovery			44		2		―		(44)		2
Total		$	44	$	55	$	―	$	(44)	$	55

		At fair value as of December 31, 2010
									Collateral
			Level 1		Level 2		Level 3		netted		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	460	$	―	$	―	$	―	$	460
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			144		30		―		―		174
Municipal bonds			―		100		―		―		100
Other securities			―		25		―		―		25
Total debt securities			144		155		―		―		299
Total nuclear decommissioning trusts(1)			604		155		―		―		759
Commodity contracts subject to rate recovery			24		―		2		―		26
Commodity contracts not subject to rate recovery			2		―		―		―		2
Total		$	630	$	155	$	2	$	―	$	787

Liabilities:
Interest rate instruments		$	―	$	58	$	―	$	―	$	58
Commodity contracts subject to rate recovery			60		2		―		(60)		2
Total		$	60	$	60	$	―	$	(60)	$	60
(1)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES -- SOCALGAS
(Dollars in millions)
	At fair value as of March 31, 2011
								Collateral
		Level 1		Level 2		Level 3		netted		Total
Assets:
Commodity contracts subject to rate recovery	$	2	$	―	$	―	$	―	$	2
Commodity contracts not subject to rate recovery		4		―		―		―		4
Total	$	6	$	―	$	―	$	―	$	6
Liabilities:
Commodity contracts subject to rate recovery	$	―	$	1	$	―	$	―	$	1

	At fair value as of December 31, 2010
								Collateral
		Level 1		Level 2		Level 3		netted		Total
Assets:
Interest rate instruments	$	―	$	3	$	―	$	―	$	3
Commodity contracts subject to rate recovery		1		1		―		―		2
Commodity contracts not subject to rate recovery		3		―		―		―		3
Total	$	4	$	4	$	―	$	―	$	8

There were no transfers into or out of Level 1 or Level 2 for Sempra Energy Consolidated, SDG&E or SoCalGas during the periods presented.

Level 3 Information

The following table sets forth reconciliations of changes in the fair value of net trading and other derivatives classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E:

	Three months ended March 31,
(Dollars in millions)	2011		2010
Balance as of January 1	$	2	$	10
Realized and unrealized gains (losses)		6		(2)
Allocated transmission instruments		1		―
Settlements		(6)		1
Balance as of March 31	$	3	$	9
Change in unrealized gains relating to
instruments still held at March 31	$	―	$	―

There were no transfers into or out of Level 3 during the periods presented.

Level 3 recurring items are related to CRRs. These instruments are recorded at fair value based on the most current annual auction prices published by the California Independent System Operator (ISO). The earnings impact of CRRs are deferred and recorded in regulatory accounts to the extent they are recoverable or refundable through rates. Upon settlement, CRRs are included in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2011 and 2010.

Non-Recurring Fair Value Measures – Sempra Energy Consolidated

We discuss non-recurring fair value measures and the associated accounting impact on our investments in RBS Sempra Commodities and Argentina in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.

SEMPRA UTILITIES' REGULATORY MATTERS

3 Months Ended

Mar. 31, 2011

Notes to Consolidated Financial Statements [Abstract]

Sempra Utilities' Regulatory Matters

NOTE 9. SEMPRA UTILITIES' REGULATORY MATTERS

POWER PROCUREMENT AND RESOURCE PLANNING

Renewable Energy

In 2010, certain California electric retail sellers, including SDG&E, were required to deliver 20 percent of their retail energy sales from renewable energy sources. The rules governing this requirement, administered by both the California Public Utilities Commission (CPUC) and the California Energy Commission (CEC), are known as the Renewables Portfolio Standard (RPS) Program. In April 2011, the Governor of California signed Senate Bill X1 2 (2011 RPS Program) which, when in effect, will supersede the RPS Program and require each California utility to procure 33 percent of its annual electric energy requirements from renewable energy sources by 2020, with an average of 20 percent required from January 1, 2011 to December 31, 2013; 25 percent by December 31, 2016; and 33 percent by December 31, 2020. We expect the 2011 RPS Program to become effective in the second quarter of 2011, and certain implementation details will be addressed by the CPUC.

The 2011 RPS Program contains new flexible compliance mechanisms, more restrictive than the prior mechanisms, that can be used to comply with or meet the 2011 RPS Program mandates in 2011 and beyond. The new mechanisms provide for a CPUC waiver under certain conditions, including: 1) a finding of inadequate transmission or 2) delays in the start-up of commercial operations of renewable energy projects due to permitting or interconnection.

SDG&E continues to procure renewable energy supplies to achieve the 2011 RPS Program requirements. A substantial number of these supply contracts, however, are contingent upon many factors, including:

access to electric transmission infrastructure;
timely regulatory approval of contracted renewable energy projects;
the renewable energy project developers' ability to obtain project financing and permitting; and

successful development and implementation of the renewable energy technologies.

For 2010, SDG&E satisfied its RPS procurement requirements through a combination of contracted deliveries and application of the flexible compliance mechanism, including the application of certain mechanisms that are no longer available under the 2011 RPS Program. For 2011 and beyond, SDG&E believes it will be able to comply with the 2011 RPS Program requirements based on its contracting activity and, if necessary, application of the new flexible compliance mechanisms. SDG&E's failure to comply with the RPS Program requirements could subject it to a CPUC-imposed penalty of 5 cents per kilowatt hour of renewable energy under-delivery.

GENERAL RATE CASE (GRC)

The CPUC uses a general rate case proceeding to prospectively set rates sufficient to allow the Sempra Utilities to recover their reasonable cost of operations and to provide the opportunity to realize their authorized rates of return on their investment. In December 2010, the Sempra Utilities filed their 2012 General Rate Case (GRC) applications to establish their authorized 2012 revenue requirements and the ratemaking mechanisms by which those requirements will change on an annual basis over the subsequent three-year (2013-2015) period. The CPUC issued a ruling in March 2011 setting the proceeding scope and schedule that projected a final CPUC decision around the month of March 2012 and granted the utilities' requests to establish regulatory accounts to allow recovery of their authorized 2012 revenue requirements retroactive to January 1, 2012.

We provide further detail about the GRC applications in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report.

UTILITY INCENTIVE MECHANISMS

The CPUC applies performance-based measures and incentive mechanisms to all California utilities, under which the Sempra Utilities have earnings potential above authorized base margins if they achieve or exceed specific performance and operating goals.

We provide additional information regarding these incentive mechanisms in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report, and updates below.

Natural Gas Procurement

In June 2010, SoCalGas applied to the CPUC for approval of a Gas Cost Incentive Mechanism (GCIM) award of $6 million for natural gas procured for our core customers during the 12-month period ending March 31, 2010. SoCalGas expects a CPUC decision in the third quarter of 2011.

In the first quarter of 2010, SoCalGas recorded a GCIM award of $12 million for SoCalGas' procurement activities during the 12-month period ending March 31, 2009, approved by the CPUC in January 2010.

Energy Efficiency

The CPUC established incentive mechanisms that are based on the effectiveness of energy efficiency and demand side management programs. The Sempra Utilities plan to file requests with the CPUC in June 2011 for any incentive awards for the 2009 program year with a decision expected in 2012. The CPUC is also considering modifications to the incentive mechanism that would apply to the 2012 – 2014 program period. We expect a decision on these program modifications in 2011.

SDG&E REQUEST FOR AUTHORITY TO INVEST IN WIND FARM

In July 2010, SDG&E filed a request with the CPUC seeking authority to make a tax equity investment in the holding company of a wind farm project. In April 2011, SDG&E filed a settlement agreement with the CPUC resolving all issues with the parties in the proceeding. If the CPUC approves the settlement agreement as filed, SDG&E would make an investment, after the wind farm project has met all of the conditions precedent set forth in the definitive documents and upon the initiation of commercial operation of the project, which would be included in the utility's rate base in an amount not to exceed 64.99 percent of the project costs or an aggregate amount of $250 million. SDG&E would also make an incremental investment, to be excluded from the utility's rate base, of no less than 10 percent of the project costs. We expect a CPUC decision on the settlement agreement in mid-2011, and the project to be in commercial operation in the second half of 2012.

INSURANCE COST RECOVERY

SDG&E filed a request with the CPUC in August 2009 seeking authorization to recover higher liability insurance premiums (amounts in excess of those authorized to be recovered in the 2008 GRC), which SDG&E began incurring commencing July 1, 2009, and any losses realized due to higher deductibles associated with the new policies. SDG&E requested a $29 million revenue requirement for the incremental increase in its general liability and wildfire liability insurance premium costs for the 2009/2010 policy period and proposed a mechanism for recovery of future liability insurance costs incurred in the 2010/2011 policy period and the first six months of the 2011/2012 policy period. SDG&E made the filing under the CPUC's rules allowing utilities to seek recovery of significant cost increases incurred between GRC filings resulting from unforeseen circumstances. The CPUC's rules allow a utility to seek recovery of incurred costs that meet certain criteria, subject to a $5 million deductible per event. In December 2010, the CPUC approved SDG&E's request for the $29 million revenue requirement, which was implemented in rates effective January 1, 2011, and authorized SDG&E to request recovery of any incremental insurance premiums for future policy periods, with a $5 million deductible applied to each policy renewal period. SDG&E filed a request in April 2011 for an incremental revenue requirement of $63 million for the 2010/2011 policy period. We expect a CPUC decision on the request in the second half of 2011. SDG&E also plans to file a request in the third quarter of 2011 for any incremental insurance premiums incurred for the first six months of the 2011/2012 policy period.

EXCESS WILDFIRE CLAIMS COST RECOVERY

SDG&E and SoCalGas filed an application, along with other related filings, with the CPUC in August 2009 proposing a new mechanism for the future recovery of all wildfire-related expenses for claims, litigation expenses and insurance premiums that are in excess of amounts authorized by the CPUC for recovery in rates. This application was made jointly with Southern California Edison (SCE) and Pacific Gas & Electric (PG&E). In July 2010, the CPUC approved SDG&E's and SoCalGas' requests for separate regulatory accounts to record the subject expenses while the joint utility application is pending before the CPUC. Several parties protested the original application and, in response, the four utilities jointly submitted an amended application in August 2010. A February 2011 ruling directing the utilities to show cause why the application should not be dismissed was stayed to permit continued settlement discussions between the four utilities and the CPUC and with the other parties to the proceeding.

SDG&E will also seek the recovery of costs incurred by SDG&E for the 2007 wildfire losses that are in excess of amounts recovered from its insurance coverage and other potentially responsible third parties. SDG&E believes that the approval of a new mechanism for cost recovery for future wildfires will provide a framework for discussions on recovery of these costs.

We provide additional information about 2007 wildfire litigation costs and their recovery in Note 10.

NATURAL GAS PIPELINE OPERATIONS SAFETY ASSESSMENTS

As a result of recent natural gas pipeline explosions in the U.S., including the September 2010 rupture in San Bruno, California of a natural gas pipeline owned and operated by PG&E (the San Bruno incident), various regulatory agencies, including the CPUC, are evaluating natural gas pipeline safety regulations, practices and procedures.

In February 2011, the CPUC opened a forward-looking proceeding to examine what changes should be made to existing pipeline safety regulations for California natural gas pipelines. The Sempra Utilities are parties to this proceeding. The CPUC also appointed an independent review panel to make recommendations for possible actions by the CPUC in light of the San Bruno incident. Those recommendations may include changes to design, construction, operation and maintenance practices of natural gas facilities in California. The report of the independent review panel is expected in the second quarter of 2011.

In January 2011, the National Transportation Safety Board (NTSB) issued seven safety recommendations in connection with its investigation into the cause of the San Bruno incident. According to the NTSB, these safety recommendations “were issued to address record-keeping problems that could create conditions in which a pipeline is operated at a higher pressure than the pipe was built to withstand.” In response to a request from the CPUC, each of the Sempra Utilities reviewed its pipeline facilities located or operating in populated or high consequence areas, as defined by the NTSB, to identify those segments that have not had the maximum allowable operating pressure (MAOP) established through prior hydrostatic testing. Federal and state regulations allow natural gas pipelines installed prior to July 1, 1970 to establish MAOPs through prior operating history rather than through a strength test, but strength tests are required on natural gas pipelines installed subsequent to June 30, 1970 as an element in establishing MAOPs.

In response to the CPUC's request, the Sempra Utilities conducted a detailed review of 1,622 miles of pipelines (1,416 miles for SoCalGas and 206 miles for SDG&E) installed in the subject class locations, and on April 15, 2011, the Sempra Utilities submitted a report to the CPUC on the results of their review and the actions they are taking in response to the NTSB recommendations.

The Sempra Utilities' records review process did not reveal any significant concerns with the currently established MAOP for their pipelines, and the Sempra Utilities intend to continue to operate their pipelines in a safe and prudent manner.

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2011

Notes to Consolidated Financial Statements [Abstract]

Commitments and Contingencies

NOTE 10. COMMITMENTS AND CONTINGENCIES

LEGAL PROCEEDINGS

We accrue losses for legal proceedings when it is probable that a loss has been incurred and the amounts of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to estimate with reasonable certainty the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverages and could materially adversely affect our business, cash flows, results of operations, and financial condition.

At March 31, 2011, Sempra Energy's accrued liabilities for material legal proceedings, on a consolidated basis, were $764 million, of which $48 million is for resolved matters. We provide detail regarding the resolved matters in Note 16 of the Notes to Consolidated Financial Statements in the Annual Report. At March 31, 2011, accrued liabilities for material legal proceedings for SDG&E and SoCalGas were $684 million and $25 million, respectively.

At March 31, 2011, liabilities of $683 million at Sempra Energy and SDG&E related to wildfire litigation may be paid using restricted cash of $312 million received in connection with a wildfire litigation settlement discussed below.

SDG&E

2007 Wildfire Litigation

In October 2007, San Diego County experienced several catastrophic wildfires. Reports issued by the California Department of Forestry and Fire Protection (Cal Fire) concluded that two of these fires (the Witch and Rice fires) were SDG&E "power line caused" and that a third fire (the Guejito fire) occurred when a wire securing a Cox Communications' (Cox) fiber optic cable came into contact with an SDG&E power line "causing an arc and starting the fire." Cal Fire reported that the Rice fire burned approximately 9,500 acres and damaged 206 homes and two commercial properties, and the Witch and Guejito fires merged and eventually burned approximately 198,000 acres, resulting in two fatalities, approximately 40 firefighters injured and approximately 1,141 homes destroyed.

A September 2008 staff report issued by the Consumer Protection and Safety Division of the CPUC reached substantially the same conclusions as the Cal Fire reports, but also contended that the power lines involved in the Witch and Rice fires and the lashing wire involved in the Guejito fire were not properly designed, constructed and maintained. In April 2010, proceedings initiated by the CPUC to determine if any of its rules were violated were settled with SDG&E's payment of $14.75 million.

Numerous parties have sued SDG&E and Sempra Energy in San Diego County Superior Court seeking recovery of unspecified amounts of damages, including punitive damages, from the three fires. These include owners and insurers of properties that were destroyed or damaged in the fires and public entities seeking recovery of firefighting, emergency response, and environmental costs. They assert various bases for recovery, including inverse condemnation based upon a California Court of Appeal decision finding that another California investor-owned utility was subject to strict liability, without regard to foreseeability or negligence, for property damages resulting from a wildfire ignited by power lines.

In October 2010, the Court of Appeal affirmed the trial court's ruling that these claims must be pursued in individual lawsuits, rather than as class actions on behalf of all persons who incurred wildfire damages. In February 2011, the California Supreme Court denied a petition for review of the affirmance. The trial court has scheduled a Witch fire and Guejito fire trial to begin in February 2012.

SDG&E filed cross-complaints against Cox seeking indemnification for any liability that SDG&E might incur in connection with the Guejito fire, two SDG&E contractors seeking indemnification in connection with the Witch fire, and one SDG&E contractor seeking indemnification in connection with the Rice fire.

In December 2010, SDG&E and Cox reached an agreement settling SDG&E's claims against Cox and Cox's insurers in the wildfire litigation (Cox Settlement). Among other things, the settlement agreement provides that SDG&E will receive approximately $444 million, which it will use for wildfire related expenditures, and SDG&E will defend and indemnify Cox against all compensatory damage claims and related costs arising out of the wildfires.

At December 31, 2010, the $300 million Settlement Receivable Related to Wildfire Litigation on the Condensed Consolidated Balance Sheets of Sempra Energy and SDG&E represented cash to be received in accordance with the terms of the Cox Settlement in several payments through March 2011 and which was received. Restricted cash of $312 million at March 31, 2011 on the Condensed Consolidated Balance Sheets of Sempra Energy and SDG&E represents amounts received from Cox not yet applied to wildfire related expenditures.

SDG&E has settled substantially all of the 19,000 claims of homeowner insurers relating to the three fires. Under the settlement agreements, SDG&E has paid or will pay 57.5 percent of the approximately $1.6 billion paid or reserved for payment by the insurers to their policyholders and received an assignment of the insurers' claims against other parties potentially responsible for the fires.

The wildfire litigation also includes claims of non-insurer plaintiffs for damage to uninsured and underinsured structures, business interruption, evacuation expenses, agricultural damage, emotional harm, personal injuries and other losses. SDG&E has settled the claims of approximately 1,190 of these plaintiffs. Approximately 1,000 of the approximately 2,000 remaining individual and business plaintiffs have submitted settlement demands and damage estimates totaling approximately $800 million and government entity claims total approximately $140 million. SDG&E expects to receive additional settlement demands and damage estimates as settlement negotiations continue. SDG&E has established reserves for the wildfire litigation as we discuss below.

SDG&E's settlement of claims and defense costs have exceeded its $1.1 billion of liability insurance coverage. It expects that its wildfire reserves and amounts paid to resolve wildfire claims will continue to increase as it obtains additional information; it is presently unable to reasonably estimate the amount or timing of recoveries from other potentially responsible parties, other than Cox.

SDG&E has concluded, however, that it is probable that it will be permitted to recover from its utility customers substantially all reasonably incurred costs of resolving wildfire claims in excess of its liability insurance coverage and any amounts recovered from other potentially responsible parties. Accordingly, although such recovery will require future regulatory actions, as of December 31, 2010 and March 31, 2011, SDG&E recorded a regulatory asset in an amount substantially equal to the aggregate amount it has paid or reserved for payment for the resolution of wildfire claims and related costs in excess of its liability insurance coverage and amounts received or to be received from Cox. SDG&E will increase the regulatory asset as additional amounts are paid or reserves are recorded and reduce it by any amounts recovered from other potentially responsible parties.

As a consequence of the expected recovery of wildfire costs from utility customers, Sempra Energy and SDG&E expect no significant earnings impact from the resolution of the remaining wildfire claims. However, SDG&E's cash flow may be adversely affected due to the timing differences between the resolution of claims and the recoveries from other potentially responsible parties and utility customers, which may extend over a number of years. Also, recovery from customers will require future regulatory actions, and a failure to obtain recovery, or any negative assessment of the likelihood of recovery, would likely have a material adverse effect on Sempra Energy's and SDG&E's cash flows and results of operations.

SDG&E will continue to gather information to evaluate and assess the remaining wildfire claims and the likelihood, amount and timing of related recoveries from other potentially responsible parties and utility customers and will make appropriate adjustments to wildfire reserves and the related regulatory asset as additional information becomes available.

In 2010 and 2011, as liabilities for wildfire litigation have become reasonably estimable in the form of settlement demands, damage estimates, and other damage information, SDG&E has recorded related reserves as a liability. The impact of this liability at December 31, 2010 and March 31, 2011 is offset by (1) current receivables for amounts to be received from Cox (December 31, 2010), (2) $312 million of restricted cash received from Cox (March 31, 2011) and (3) the recognition of a regulatory asset, as discussed above, for reserves in excess of the insurance coverage and the Cox settlement. The impact of the reserves on SDG&E's and Sempra Energy's after-tax earnings for the three months ended March 31, 2011 and 2010, was $1 million and $3 million, respectively. At March 31, 2011, wildfire litigation reserves were $683 million ($489 million in current and $194 million in long-term).

Sunrise Powerlink Electric Transmission Line

SDG&E commenced construction on the Sunrise Powerlink in the fall of 2010. The Sunrise Powerlink is a new 117-mile, 500-kilovolt (kV) electric transmission line that is being built between the Imperial Valley and the San Diego region, along a route that generally runs south of the Anza-Borrego Desert State Park. The current project plan provides for the transmission line to be completed and in-service in the second half of 2012.

The Sunrise Powerlink project was originally approved by the CPUC in December 2008, including approval of the environmental impact review conducted jointly with the Bureau of Land Management (BLM). The CPUC has subsequently denied or dismissed all requests for rehearing of its approval of the project.

In February 2011, the California Supreme Court denied a petition filed jointly by the Utility Consumers' Action Network (UCAN) and the Center for Biological Diversity/Sierra Club (CBD). The petition challenged the CPUC's decision with regard to implementation of the California Environmental Quality Act (CEQA). In addition, in August 2010 the California Court of Appeal denied a petition previously filed by UCAN with the Court of Appeal challenging the CPUC decision on other legal grounds.

In January 2009, the BLM issued its decision approving the portions of the project, route and environmental review within its jurisdiction. The Interior Board of Land Appeals (IBLA) subsequently denied or dismissed all administrative appeals that were filed challenging the BLM's approval of the project.

The CPUC and BLM jointly approved the final Project Modification Report for Sunrise Powerlink in September 2010, accepting all of the proposed modifications to the approved route and finding that no additional environmental review was required. In December 2010, the IBLA dismissed an appeal challenging the BLM's approval of the Project Modification Report. On March 3, 2011, opponents of the Sunrise Powerlink filed a petition for writ of review or mandamus with the California Supreme Court challenging the CPUC's acceptance of the Project Modification Report. The California Supreme Court denied the petition on April 13, 2011.

In February 2010, parties opposed to the project filed a lawsuit in Federal District Court in San Diego seeking declaratory and injunctive relief and alleging that the BLM failed to properly assess the environmental impacts of the approved Sunrise Powerlink route and the related potential development of renewable resources in east San Diego County and Imperial County. The plaintiffs have filed a motion for a preliminary injunction regarding construction on BLM land and the plaintiffs, the federal government and SDG&E have each filed separate motions for summary judgment with the Court.

In July 2010, the United States Forest Service (USFS) issued its decision approving the portions of the project, route and environmental review within its jurisdiction. The USFS has subsequently denied all administrative appeals challenging its approval of the project.

In January 2011, project opponents filed a lawsuit in Federal District Court in San Diego alleging that the federal approvals for construction of the project on USFS land and BLM land violated the National Environmental Policy Act and other federal environmental laws. The lawsuit asks the Court for injunctive relief preventing the USFS and the BLM from approving any ongoing or future construction activities.

On February 7, 2011, opponents of the Sunrise Powerlink filed a lawsuit in California Superior Court in Sacramento, California against the State Water Resources Control Board and SDG&E alleging that the water quality certification issued by the Board under the Federal Clean Water Act violated CEQA. The complaint seeks to have the certification set aside and requests an injunction be issued.

We provide additional information concerning Sunrise Powerlink in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report.

SoCalGas

SoCalGas, along with Monsanto Co., Solutia, Inc., Pharmacia Corp., and Pfizer, Inc., are defendants in two Los Angeles County Superior Court lawsuits filed in April 2011 seeking recovery of unspecified amounts of damages, including punitive damages, as a result of plaintiffs' exposure to PCBs (polychlorinated biphenyls). The lawsuits allege plaintiffs were exposed to PCBs not only through the food chain and other various sources but from PCB-contaminated natural gas pipelines owned and operated by SoCalGas. This contamination allegedly caused plaintiffs to develop cancer and other serious illnesses. Plaintiffs assert various bases for recovery, including negligence and products liability.

Sempra Pipelines & Storage

Liberty Gas Storage, LLC (Liberty) received a demand for arbitration from Williams Midstream Natural Gas Liquids, Inc. in February 2011 related to a sublease agreement. Williams alleges that Liberty was negligent in its attempt to convert certain salt caverns to natural gas storage and seeks damages of $56.7 million. Liberty filed a counterclaim alleging breach of contract in the inducement and seeks damages of more than $215 million. We discuss other matters related to these caverns in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.

Sempra LNG

Sempra LNG has been engaged in a long-running land dispute relating to property adjacent to its Energía Costa Azul liquefied natural gas (LNG) receipt terminal near Ensenada, Mexico. The adjacent property is not required by environmental or other regulatory permits for the operation of the terminal. A claimant to the adjacent property has nonetheless asserted that his health and safety are endangered by the operation of the facility. In June 2010, a Mexican federal appeals court revoked a district court order, issued at the behest of the claimant, directing Mexican regulatory authorities to provisionally suspend authorizations for the operation of the LNG terminal. In February 2011, based on a complaint by the claimant, the new Ensenada Mayor attempted to temporarily close the terminal based on claims of irregularities in municipal permits issued six years earlier. This attempt was promptly countermanded by Mexican federal and Baja California state authorities. No terminal permits or operations were affected as a result of these proceedings or events and the terminal has continued to operate normally.

Sempra LNG expects additional Mexican court proceedings and governmental actions regarding the claimant's assertions as to whether the terminal's permits should be modified or revoked in any manner.

The property claimant has also filed a lawsuit against Sempra Energy in Federal District Court in San Diego seeking compensatory and punitive damages and earnings from the Energía Costa Azul LNG terminal based on his allegations that he was wrongfully evicted from the adjacent property and that he has been harmed by other allegedly improper actions.

Other Litigation

In August 2007, the U.S. Court of Appeals for the Ninth Circuit issued a decision reversing and remanding certain Federal Energy Regulatory Commission (FERC) orders declining to provide refunds regarding short-term bilateral sales up to one month in the Pacific Northwest for the December 2000 to June 2001 time period. The FERC has not yet acted on the court's order. In December 2010, the FERC approved a comprehensive settlement previously reached by Sempra Energy and RBS Sempra Commodities with the State of California. The settlement resolves all issues with regard to sales between the California Department of Water Resources (DWR) and Sempra Commodities (see Note 11) in the Pacific Northwest, but potential claims may exist regarding sales between Sempra Commodities and other buyers in the Pacific Northwest.

Pursuant to the agreements related to the formation of RBS Sempra Commodities, we have indemnified RBS should the liability from the final resolution of these matters be greater than the reserves related to Sempra Commodities. Pursuant to our agreement with the Noble Group, we have also indemnified Noble Americas Gas & Power Corp. and its affiliates for all losses incurred by such parties resulting from these proceedings as related to Sempra Commodities.

Sempra Energy and several subsidiaries, along with three oil and natural gas companies, the City of Beverly Hills, and the Beverly Hills Unified School District, are defendants in a toxic tort lawsuit filed in Los Angeles County Superior Court by approximately 1,000 plaintiffs. This lawsuit claims that various emissions resulted in cancer or fear of cancer. We have submitted the case to our insurers, who have reserved their rights with respect to coverage. In November 2006, the court granted the defendants' summary judgment motions based on lack of medical causation for the 12 initial plaintiffs scheduled to go to trial first. The court also granted summary judgment excluding punitive damages. The court has stayed the case as to the remaining plaintiffs pending the appeal of the rulings. A mediation occurred in June 2010, after which the plaintiffs' counsel agreed to recommend a settlement of the lawsuits as to Sempra Energy and its subsidiaries for an amount that is not significant. Any such settlement will require approval by each of the plaintiffs. If approval is obtained, finalization of the settlement is expected to occur within six months.

We are also defendants in ordinary routine litigation incidental to our businesses, including personal injury, product liability, property damage and other claims. California juries have demonstrated an increasing willingness to grant large awards, including punitive damages, in these cases.

NUCLEAR INSURANCE

SDG&E and the other owners of San Onofre Nuclear Generating Station (SONGS) have insurance to cover claims from nuclear liability incidents arising at SONGS. This insurance provides $375 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides for up to $12.2 billion of secondary financial protection (SFP). If a nuclear liability loss occurring at any U.S. licensed/commercial reactor exceeds the $375 million insurance limit, all nuclear reactor owners could be required to contribute to the SFP. SDG&E's contribution would be up to $47 million. This amount is subject to an annual maximum of $7 million, unless a default occurs by any other SONGS owner. If the SFP is insufficient to cover the liability loss, SDG&E could be subject to an additional assessment.

The SONGS owners, including SDG&E, also have $2.75 billion of nuclear property, decontamination, and debris removal insurance. In addition, the SONGS owners have up to $490 million insurance coverage for outage expenses and replacement power costs due to accidental property damage. This coverage is limited to $3.5 million per week for the first 52 weeks, then $2.8 million per week for up to 110 additional weeks. There is a 12-week waiting period deductible. These insurance coverages are provided through a mutual insurance company. Insured members are subject to retrospective premium assessments. SDG&E could be assessed up to $8.5 million.

The nuclear property insurance program includes an industry aggregate loss limit for non-certified acts of terrorism (as defined by the Terrorism Risk Insurance Act). The industry aggregate loss limit for property claims arising from non-certified acts of terrorism is $3.24 billion. This is the maximum amount that will be paid to insured members who suffer losses or damages from these non-certified terrorist acts.

CONTRACTUAL COMMITMENTS

Sempra Energy Consolidated

In the first quarter of 2011, significant increases in commitments at Sempra Energy were

the issuance of $500 million of 2.0-percent notes and $300 million of floating rate notes, both maturing in 2014, at Sempra Energy;
$62 million for purchased-power contracts at SDG&E;
$23 million for costs related to the replacement of the steam generators and other construction projects at SONGS;
$45 million for electric distribution systems, advanced metering infrastructure and electric generation plant and equipment at SDG&E;
$321 million at SDG&E for engineering, material procurement and construction costs associated with the Sunrise Powerlink project; and
$42 million for construction and infrastructure improvements for natural gas transmission and distribution operations and advanced metering at SoCalGas; offset by
$51 million in reductions at Sempra Generation for natural gas contracts.

We expect future payments for the contractual commitments listed above to be $341 million for 2011, $85 million for 2012, $31 million for 2013, $778 million for 2014, $2 million for 2015 and $57 million thereafter. These amounts include expected interest payments on the notes using the stated interest rate for the fixed-rate notes and forward rates in effect at March 31, 2011 for the floating rate notes.

We discuss reserves for Sempra Energy and SDG&E related to wildfire litigation above in “SDG&E – 2007 Wildfire Litigation.”

We discuss changes to SoCalGas' natural gas purchase and pipeline capacity commitments below.

At March 31, 2011, Sempra LNG has various purchase agreements with major international companies for the supply of LNG to its Energía Costa Azul and Cameron receipt terminals. We discuss these agreements further in Note 16 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra LNG's commitments under all LNG purchase agreements, reflecting the termination effective September 2011 of an LNG supply option agreement by one of the suppliers, changes in forward prices since December 31, 2010, and actual transactions for the first three months of 2011, are expected to decrease by $336 million in 2011, $366 million in 2012, and $145 million in 2013, and to increase by $50 million in 2014, $83 million in 2015 and $2.3 billion thereafter compared to December 31, 2010.

The LNG commitment amounts above are based on Sempra LNG's commitment to accept the maximum possible delivery of cargoes under the agreements. Actual LNG purchases for the three months ended March 31, 2011 have been significantly lower than the maximum amounts possible.

SDG&E

In the first quarter of 2011, significant increases to contractual commitments at SDG&E were $62 million for purchased-power contracts, $23 million for costs related to the replacement of the steam generators and other construction projects at SONGS, $45 million for electric distribution systems, advanced metering infrastructure and electric generation plant and equipment and $321 million for engineering, material procurement and construction costs associated with the Sunrise Powerlink project.

The future payments for these contractual commitments are expected to be $331 million for 2011, $56 million for 2012, $3 million for 2013, $2 million for 2014, $2 million for 2015 and $57 million thereafter.

SoCalGas

In the first quarter of 2011, significant increases to contractual commitments at SoCalGas were $42 million for construction and infrastructure improvements for natural gas transmission and distribution operations and advanced metering at SoCalGas. The future payments for these contractual commitments are expected to be $25 million for 2011, $12 million for 2012 and $5 million for 2013.

SoCalGas' natural gas purchase and pipeline capacity commitments have decreased by $97 million since December 31, 2010. The decrease, primarily due to a reduction of $237 million based on actual transactions for the first quarter of 2011, is offset by new natural gas purchase and pipeline capacity contracts of $140 million. Net future payments are therefore expected to decrease by $114 million for 2011 and to increase by $16 million for 2012 and $1 million for 2014 compared to December 31, 2010.

SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2011

Notes to Consolidated Financial Statements [Abstract]

Segment Information

NOTE 11. SEGMENT INFORMATION

We have five separately managed reportable segments, as follows:

SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County.
SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California.
Sempra Generation develops, owns and operates, or holds interests in, electric power plants and energy projects in Arizona, California, Colorado, Nevada, Indiana, Hawaii and Mexico to serve wholesale electricity markets in the United States and Mexico. Sempra Generation also includes the operating results of Sempra Rockies Marketing, which holds firm service capacity on the Rockies Express Pipeline.
Sempra Pipelines & Storage develops, owns and operates, or holds interests in, natural gas and propane pipelines and natural gas storage facilities in the United States and Mexico, and companies that provide natural gas or electricity services in Argentina, Chile, Mexico and Peru. We are currently pursuing the sale of our interests in the Argentine utilities, which we discuss further in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra Pipelines & Storage also operates a natural gas distribution utility in Alabama.In April 2011, Sempra Pipelines & Storage increased its interests in Chile and Peru, as we discuss in Note 12.
Sempra LNG develops, owns and operates receipt terminals for importing LNG into the U.S. and Mexico, and has supply and marketing agreements to purchase and sell LNG and natural gas.

We evaluate each segment's performance based on its contribution to Sempra Energy's reported earnings. The Sempra Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. The Sempra Utilities' operations are based on rates set by the CPUC and the FERC. We describe the accounting policies of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.

Prior to 2011, our Sempra Commodities segment contained our investment in RBS Sempra Commodities LLP (RBS Sempra Commodities), which held commodities-marketing businesses previously owned by us. Our investment in the partnership is reported on the equity method. We and RBS, our partner in the joint venture, sold substantially all of the partnership's businesses and assets in four separate transactions completed in July, November and December of 2010 and February of 2011. We discuss these transactions and other matters concerning the partnership in Note 4 above and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.

The activity in the partnership no longer meets the quantitative thresholds that require Sempra Commodities to be reported as a reportable segment under applicable generally accepted accounting principles, and we do not consider the remaining wind-down activities of the partnership to be of continuing significance. As a result, effective January 1, 2011, we are reporting the former Sempra Commodities segment in "All other" in the following tables and have restated prior year information to be consistent with this treatment.

Also, in the fourth quarter of 2010, we changed the composition of our reporting segments to include Sempra Rockies Marketing, which was previously included in the Sempra Commodities segment, in the Sempra Generation segment. We have revised segment disclosures for 2010 to reflect this.

The following tables show selected information by segment from our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as "All other" in the following tables consist primarily of parent organizations and the former commodities-marketing businesses.

SEGMENT INFORMATION
(Dollars in millions)
	Three months ended March 31,
	2011				2010
REVENUES
SDG&E	$	840	35	%	$	742	29	%
SoCalGas		1,056	43			1,182	47
Sempra Generation		269	11			318	13
Sempra Pipelines & Storage		109	4			110	4
Sempra LNG		186	8			205	8
Adjustments and eliminations		―	―			3	―
Intersegment revenues(1)		(26)	(1)			(26)	(1)
Total	$	2,434	100	%	$	2,534	100	%
INTEREST EXPENSE
SDG&E	$	36			$	31
SoCalGas		17				17
Sempra Generation		2				4
Sempra Pipelines & Storage		8				9
Sempra LNG		11				12
All other		67				88
Intercompany eliminations		(33)				(52)
Total	$	108			$	109
INTEREST INCOME
Sempra Generation	$	5			$	2
Sempra Pipelines & Storage		2				4
Sempra LNG		1				―
All other		28				50
Intercompany eliminations		(33)				(52)
Total	$	3			$	4
DEPRECIATION AND AMORTIZATION
SDG&E	$	103	44	%	$	92	44	%
SoCalGas		81	35			75	36
Sempra Generation		19	8			15	7
Sempra Pipelines & Storage		13	6			11	5
Sempra LNG		13	6			12	6
All other		2	1			5	2
Total	$	231	100	%	$	210	100	%
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	49			$	31
SoCalGas		37				56
Sempra Generation		22				(38)
Sempra Pipelines & Storage		7				6
Sempra LNG		11				12
All other		(17)				(9)
Total	$	109			$	58

SEGMENT INFORMATION (Continued)
(Dollars in millions)
		Three months ended March 31,
		2011				2010
EQUITY EARNINGS
Earnings recorded before tax:
Sempra Generation		$	1			$	―
Sempra Pipelines & Storage			9				10
All other			(9)				5
Total		$	1			$	15
Earnings recorded net of tax:
Sempra Pipelines & Storage		$	31			$	19
EARNINGS (LOSSES)
SDG&E(2)		$	89	35	%	$	83	78	%
SoCalGas(2)			68	26			65	61
Sempra Generation			44	17			(51)	(48)
Sempra Pipelines & Storage			54	21			38	36
Sempra LNG			33	13			32	30
All other			(30)	(12)			(61)	(57)
Total		$	258	100	%	$	106	100	%
EXPENDITURES FOR PROPERTY PLANT & EQUIPMENT
SDG&E		$	348	57	%	$	290	65	%
SoCalGas			168	28			114	26
Sempra Generation			52	9			4	1
Sempra Pipelines & Storage			36	6			36	8
Sempra LNG			3	―			2	―
Total		$	607	100	%	$	446	100	%
		March 31, 2011				December 31, 2010
ASSETS
SDG&E		$	12,390	40	%	$	12,077	40	%
SoCalGas			7,908	26			7,986	26
Sempra Generation			1,905	6			2,401	8
Sempra Pipelines & Storage			5,722	19			5,175	17
Sempra LNG			2,403	8			2,379	8
All other			1,399	4			1,691	6
Intersegment receivables			(1,031)	(3)			(1,426)	(5)
Total		$	30,696	100	%	$	30,283	100	%
INVESTMENTS IN EQUITY METHOD INVESTEES
Sempra Generation		$	185			$	185
Sempra Pipelines & Storage			1,775				1,777
All other			794				803
Total		$	2,754			$	2,765
(1)	Revenues for reportable segments in 2011 include intersegment revenues of $2 million, $13 million and $11 million for SDG&E, SoCalGas and Sempra Pipelines & Storage, respectively. Revenues for reportable segments in 2010 include intersegment revenues of $1 million, $11 million and $14 million for SDG&E, SoCalGas and Sempra Pipelines & Storage, respectively.
(2)	After preferred dividends.

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2011
Significant Accounting Policies
Inventory Policy Text Block	TEMPORARY LIFO LIQUIDATION SoCalGas values natural gas inventory by the last-in first-out (LIFO) method. As inventories are sold, differences between the LIFO valuation and the estimated replacement cost are reflected in customer rates. Temporary LIFO liquidation represents the difference between the carrying value of natural gas inventory withdrawn during the period for delivery to customers and the projected cost of the replacement of that inventory during summer months.
Property Plant And Equipment Policy Text Block	CAPITALIZED FINANCING COSTS Capitalized financing costs include capitalized interest costs and, at the Sempra Utilities, an allowance for funds used during construction (AFUDC) related to both debt and equity financing of construction projects.
Legal Costs Policy Text Block	NOTE 10. COMMITMENTS AND CONTINGENCIES LEGAL PROCEEDINGS We accrue losses for legal proceedings when it is probable that a loss has been incurred and the amounts of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to estimate with reasonable certainty the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverages and could materially adversely affect our business, cash flows, results of operations, and financial condition.
Derivatives Policy Text Block	NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS We use derivative instruments primarily to manage exposures arising in the normal course of business. These exposures are commodity market risk and benchmark interest rate risk. We may also manage foreign exchange rate exposures using derivatives. Our use of derivatives for these risks is integrated into the economic management of our anticipated revenues, anticipated expenses, assets and liabilities. Derivatives may be effective in mitigating these risks that could lead to declines in anticipated revenues or increases in anticipated expenses, or that our asset values may fall or our liabilities increase. Accordingly, our derivative activity summarized below generally represents an impact that is intended to offset associated revenues, expenses, assets or liabilities that are not presented below. We record all derivatives at fair value on the Condensed Consolidated Balance Sheets. We designate each derivative as (1) a cash flow hedge, (2) a fair value hedge, or (3) undesignated. Depending on the applicability of hedge accounting and, for the Sempra Utilities and other operations subject to regulatory accounting, the requirement to pass impacts through to customers, the impact of derivative instruments may be offset in other comprehensive income (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the settlements of derivative instruments as operating activities on the Condensed Consolidated Statements of Cash Flows. In certain cases, we apply the normal purchase or sale exception to derivative accounting and have other commodity contracts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that a given future revenue or expense item may vary, and other criteria. We may designate an interest rate derivative as a fair value hedging instrument if it effectively converts our own debt from a fixed interest rate to a variable rate. The combination of the derivative and debt instruments results in fixing that portion of the fair value of the debt that is related to benchmark interest rates. Designating fair value hedges is dependent on the instrument being used, the effectiveness of the instrument in offsetting changes in the fair value of our debt instruments, and other criteria. ENERGY DERIVATIVES Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business.
Earnings Per Share Policy Text Block	EARNINGS PER SHARE The following table provides the per share computations for our earnings for the three months ended March 31, 2011 and 2010. Basic earnings per common share (EPS) is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The dilution from unvested restricted stock awards (RSAs) and restricted stock units (RSUs) is also based on the treasury stock method.
Fair Value Measurement Policy Text Block	NOTE 8. FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments The fair values of certain of our financial instruments (cash, temporary investments, accounts and notes receivable, dividends and accounts payable, short-term debt and customer deposits) approximate their carrying amounts.
Segment Policy Text Block	We evaluate each segment's performance based on its contribution to Sempra Energy's reported earnings. The Sempra Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. The Sempra Utilities' operations are based on rates set by the CPUC and the FERC. We describe the accounting policies of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.
New Accounting Standards Policy	NOTE 2. NEW ACCOUNTING STANDARDS There are no recent accounting pronouncements that are anticipated to have an impact on or are related to our financial condition, results of operations, or disclosures.

OTHER FINANCIAL DATA (Tables)

3 Months Ended

Mar. 31, 2011

Other Financial Data (Tables) [Abstract]

Net Periodic Benefit Cost Table

NET PERIODIC BENEFIT COST -- SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended March 31,				Three months ended March 31,
	2011		2010		2011		2010
Service cost	$	22	$	22	$	7	$	7
Interest cost		43		43		17		15
Expected return on assets		(37)		(36)		(12)		(12)
Amortization of:
Prior service cost		1		1		―		―
Actuarial loss		9		8		4		2
Regulatory adjustment		(29)		(29)		2		2
Total net periodic benefit cost	$	9	$	9	$	18	$	14

NET PERIODIC BENEFIT COST -- SDG&E
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended March 31,				Three months ended March 31,
	2011		2010		2011		2010
Service cost	$	7	$	7	$	2	$	2
Interest cost		13		12		2		2
Expected return on assets		(12)		(10)		(2)		(2)
Amortization of:
Prior service cost		1		1		1		1
Actuarial loss		2		3		―		―
Regulatory adjustment		(9)		(12)		1		1
Total net periodic benefit cost	$	2	$	1	$	4	$	4

NET PERIODIC BENEFIT COST -- SOCALGAS
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended March 31,				Three months ended March 31,
	2011		2010		2011		2010
Service cost	$	12	$	12	$	5	$	5
Interest cost		25		25		13		12
Expected return on assets		(22)		(23)		(10)		(10)
Amortization of:
Prior service cost (credit)		1		1		(1)		(1)
Actuarial loss		4		3		5		2
Regulatory adjustment		(20)		(17)		1		1
Total net periodic benefit cost	$	―	$	1	$	13	$	9

Contributions to Benefit Plans Table

	Sempra Energy
(Dollars in millions)	Consolidated		SDG&E		SoCalGas
Contributions through March 31, 2011:
Pension plans	$	11	$	―	$	1
Other postretirement benefit plans		19		4		14
Total expected contributions in 2011:
Pension plans	$	266	$	82	$	118
Other postretirement benefit plans		76		16		55

Earnings Per Share Computations Table

EARNINGS PER SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
	Three months ended March 31,
	2011		2010
Numerator:
Earnings/Income attributable to common shareholders	$	258	$	106

Denominator:
Weighted-average common shares outstanding for basic EPS		240,128		246,083
Dilutive effect of stock options, restricted stock awards and restricted stock units		1,775		4,290
Weighted-average common shares outstanding for diluted EPS		241,903		250,373

Earnings per share:
Basic	$	1.07	$	0.43
Diluted	$	1.07	$	0.42

Capitalized Financing Costs Table

CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Three months ended March 31,
	2011		2010
Sempra Energy Consolidated:
AFUDC related to debt	$	8	$	5
AFUDC related to equity		19		13
Other capitalized financing costs		6		7
Total Sempra Energy Consolidated	$	33	$	25
SDG&E:
AFUDC related to debt	$	6	$	3
AFUDC related to equity		15		9
Total SDG&E	$	21	$	12
SoCalGas:
AFUDC related to debt	$	2	$	2
AFUDC related to equity		4		4
Total SoCalGas	$	6	$	6

Comprehensive Income Table

COMPREHENSIVE INCOME
(Dollars in millions)
		Three months ended March 31,
		2011						2010
		Share-		Non-				Share-		Non-
		holders'		controlling		Total		holders'		controlling		Total
		Equity(1)		Interests		Equity		Equity(1)		Interests		Equity
Sempra Energy Consolidated:
Net income (loss)(2)		$	260	$	4	$	264	$	108	$	(8)	$	100
Foreign currency translation
adjustments			(6)		―		(6)		(4)		―		(4)
Financial instruments			2		1		3		―		2		2
Net actuarial gain			2		―		2		1		―		1
Comprehensive income (loss)		$	258	$	5	$	263	$	105	$	(6)	$	99
SDG&E:
Net income (loss)		$	90	$	4	$	94	$	84	$	(8)	$	76
Financial instruments			―		1		1		―		2		2
Comprehensive income (loss)		$	90	$	5	$	95	$	84	$	(6)	$	78
PE:
Net income(2)		$	68	$	―	$	68	$	65	$	―	$	65
Comprehensive income		$	68	$	―	$	68	$	65	$	―	$	65
SoCalGas:
Net income		$	68	$	―	$	68	$	65	$	―	$	65
Comprehensive income		$	68	$	―	$	68	$	65	$	―	$	65
(1)	Shareholders' equity of Sempra Energy Consolidated, SDG&E, PE or SoCalGas as indicated in left margin.
(2)	Before preferred dividends of subsidiaries.

INCOME TAX EXPENSE ASSOCIATED WITH OTHER COMPREHENSIVE INCOME

(Dollars in millions)

Three months ended March 31,

2011

2010

Share-

Non-

Share-

Non-

holders'

controlling

Total

holders'

controlling

Total

Equity

Interests

Equity

Interests

Equity

Sempra Energy Consolidated:

Financial instruments

―

Net actuarial gain

―

Shareholders' Equity and Noncontrolling Interests Table

SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS
(Dollars in millions)
		Sempra
		Energy		Non-
		Shareholders'		controlling		Total
		Equity		Interests		Equity
Balance at December 31, 2010	$	9,027	$	211	$	9,238
Comprehensive income		258		5		263
Share-based compensation expense		11		―		11
Common stock dividends declared		(115)		―		(115)
Preferred dividends of subsidiaries		(2)		―		(2)
Issuance of common stock		15		―		15
Tax benefit related to share-based compensation		2		―		2
Repurchase of common stock		(17)		―		(17)
Common stock released from ESOP		7		―		7
Equity contributed by noncontrolling interests		―		1		1
Balance at March 31, 2011	$	9,186	$	217	$	9,403
Balance at December 31, 2009	$	9,007	$	244	$	9,251
Comprehensive income (loss)		105		(6)		99
Share-based compensation expense		13		―		13
Common stock dividends declared		(96)		―		(96)
Preferred dividends of subsidiaries		(2)		―		(2)
Issuance of common stock		27		―		27
Tax benefit related to share-based compensation		1		―		1
Repurchase of common stock		(2)		―		(2)
Common stock released from ESOP		7		―		7
Distributions to noncontrolling interests		―		(3)		(3)
Balance at March 31, 2010	$	9,060	$	235	$	9,295

SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST
(Dollars in millions)
		SDG&E		Non-
		Shareholder's		controlling		Total
		Equity		Interest		Equity
Balance at December 31, 2010	$	3,108	$	113	$	3,221
Comprehensive income		90		5		95
Preferred stock dividends declared		(1)		―		(1)
Capital contribution		200		―		200
Equity contributed by noncontrolling interest		―		1		1
Balance at March 31, 2011	$	3,397	$	119	$	3,516
Balance at December 31, 2009	$	2,739	$	146	$	2,885
Comprehensive income (loss)		84		(6)		78
Preferred stock dividends declared		(1)		―		(1)
Distributions to noncontrolling interest		―		(2)		(2)
Balance at March 31, 2010	$	2,822	$	138	$	2,960

Amounts Due To and From Affiliates at SDG&E, PE and SoCalGas Table

AMOUNTS DUE TO AND FROM AFFILIATES AT SDG&E, PE AND SOCALGAS
(Dollars in millions)
		March 31,		December 31,
		2011		2010
SDG&E
Current:
Due from SoCalGas		$	―	$	11
Due from various affiliates			1		1
		$	1	$	12

Due to Sempra Energy		$	23	$	16
Due to SoCalGas			21		―
		$	44	$	16

Income taxes due from Sempra Energy(1)		$	36	$	25

PE
Current:
Due from Sempra Energy		$	357	$	60
Due from SDG&E			21		―
Due from various affiliates			5		8
		$	383	$	68

Due to affiliate		$	85	$	85
Due to SDG&E			―		11
		$	85	$	96

Income taxes due from Sempra Energy(1)		$	1	$	6

Noncurrent:
Promissory note due from Sempra Energy, variable rate based on
short-term commercial paper rates (0.19% at March 31, 2011)		$	505	$	502

SoCalGas
Current:
Due from Sempra Energy		$	357	$	60
Due from SDG&E			21		―
Due from various affiliates			―		3
		$	378	$	63

Due to SDG&E		$	―	$	11

Income taxes due to Sempra Energy(1)		$	(4)	$	(3)
(1)	SDG&E, PE and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from the companies' having always filed a separate return.

Revenues From Unconsolidated Affiliates at the Sempra Utilities Table

REVENUES FROM UNCONSOLIDATED AFFILIATES AT THE SEMPRA UTILITIES
(Dollars in millions)

	Three months ended March 31,
	2011		2010
SDG&E	$	2	$	1
SoCalGas		13		11

Amounts Recorded For Transactions with RBS Sempra Commodities Table

AMOUNTS RECORDED FOR TRANSACTIONS WITH RBS SEMPRA COMMODITIES
(Dollars in millions)

		Three months ended March 31,
		2011		2010
Revenues:
SoCalGas		$	―	$	4
Sempra Generation(1)			9		9
Sempra LNG			36		73
Total revenues		$	45	$	86

Cost of natural gas:
SDG&E		$	―	$	1
SoCalGas			―		12
Sempra Generation			26		16
Sempra Pipelines & Storage			7		9
Sempra LNG			28		67
Total cost of natural gas		$	61	$	105
(1)	Includes amounts in 2010 for Sempra Rockies Marketing, previously reported in the Sempra Commodities segment, as we discuss in Note 11.

		March 31,		December 31,
		2011		2010
Fixed-price contracts and other derivatives - Net Asset (Liability):
Sempra Generation		$	19	$	17
Sempra LNG			(28)		(35)
Total		$	(9)	$	(18)

Due to unconsolidated affiliates:
Sempra Generation		$	7	$	11
Sempra LNG			17		13
Parent and other			11		11
Total		$	35	$	35

Due from unconsolidated affiliates:
SoCalGas		$	―	$	3
Sempra Generation			4		13
Sempra LNG			8		13
Parent and other			5		5
Total		$	17	$	34

Other Income and Expense Table

OTHER INCOME, NET
(Dollars in millions)
		Three months ended March 31,
		2011		2010
Sempra Energy Consolidated:
Allowance for equity funds used during construction		$	19	$	13
Investment gains(1)			8		3
Gains (losses) on interest rate and foreign exchange instruments(2)			10		(9)
Regulatory interest, net			―		(1)
Sundry, net			6		2
Total		$	43	$	8
SDG&E:
Allowance for equity funds used during construction		$	15	$	9
Losses on interest rate instruments(3)			―		(9)
Regulatory interest, net			―		(1)
Sundry, net			1		1
Total		$	16	$	―
SoCalGas and PE:
Allowance for equity funds used during construction		$	4	$	4
Sundry, net			(1)		―
Total at SoCalGas and PE		$	3	$	4
(1)	Represents investment gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans.
(2)	Sempra Energy Consolidated includes Otay Mesa VIE and additional instruments.
(3)	Related to Otay Mesa VIE.

Income Tax Expense and Effective Income Tax Rates Table

INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
		Three months ended March 31,
		2011				2010
		Income Tax	Effective Income			Income Tax	Effective Income
		Expense	Tax Rate			Expense	Tax Rate
Sempra Energy Consolidated	$	109	32	%	$	58	42	%
SDG&E		49	34			31	29
PE		37	35			57	47
SoCalGas		37	35			56	46

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2011

Derivative Financial Instruments (Tables) [Abstract]

Commodity Derivative Volumes Table


Business Unit and Commodity		March 31, 2011	December 31, 2010
Sempra Utilities:
SDG&E:
Natural gas		48 million MMBtu	51 million MMBtu	(1)
Congestion revenue rights		17 million MWh	21 million MWh	(2)

Sempra Global:
Sempra Generation - electric power		1 million MWh	1 million MWh
Sempra Pipelines & Storage - natural gas		3 million MMBtu	8 million MMBtu
Sempra LNG - natural gas		6 million MMBtu	7 million MMBtu
(1)	Million British thermal units
(2)	Megawatt hours

Notional Amounts of Interest Rate Derivatives Table

		March 31, 2011			December 31, 2010
(Dollars in millions)		Notional Debt		Maturities	Notional Debt		Maturities
Sempra Energy Consolidated(1)		$	15-305	2013-2019	$	215-355	2011-2019
SDG&E(1)			285-362	2019		285-365	2019
SoCalGas			―	―		150	2011
(1)	Includes Otay Mesa VIE. All of SDG&E's interest rate derivatives relate to Otay Mesa VIE.

Derivative Instruments on the Condensed Consolidated Balance Sheets Table

DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
		March 31, 2011
									Deferred
									credits
			Current				Current		and other
			assets:				liabilities:		liabilities:
			Fixed-price		Investments		Fixed-price		Fixed-price
			contracts		and other		contracts		contracts
			and other		assets:		and other		and other
Derivatives designated as hedging instruments			derivatives(1)		Sundry		derivatives(2)		derivatives
Sempra Energy Consolidated:
Interest rate instruments		$	6	$	―	$	―	$	(9)

Derivatives not designated as hedging instruments
Sempra Energy Consolidated:
Interest rate instruments(3)		$	9	$	19	$	(25)	$	(49)
Commodity contracts not subject to rate recovery			54		16		(39)		(30)
Associated offsetting commodity contracts			(8)		(2)		8		2
Commodity contracts subject to rate recovery			7		2		(30)		(23)
Associated offsetting commodity contracts			(4)		(1)		4		1
Total		$	58	$	34	$	(82)	$	(99)
SDG&E:
Interest rate instruments(3)		$	―	$	―	$	(17)	$	(36)
Commodity contracts not subject to rate recovery			1		―		―		―
Commodity contracts subject to rate recovery			5		2		(25)		(23)
Associated offsetting commodity contracts			(2)		(1)		2		1
Total		$	4	$	1	$	(40)	$	(58)
SoCalGas:
Commodity contracts not subject to rate recovery		$	2	$	―	$	―	$	―
Commodity contracts subject to rate recovery			2		―		(3)		―
Associated offsetting commodity contracts			(2)		―		2		―
Total		$	2	$	―	$	(1)	$	―

		December 31, 2010
									Deferred
									credits
			Current				Current		and other
			assets:				liabilities:		liabilities:
			Fixed-price		Investments		Fixed-price		Fixed-price
			contracts		and other		contracts		contracts
			and other		assets:		and other		and other
Derivatives designated as hedging instruments			derivatives(1)		Sundry		derivatives(2)		derivatives
Sempra Energy Consolidated:
Interest rate instruments		$	3	$	―	$	―	$	―
SoCalGas:
Interest rate instrument		$	3	$	―	$	―	$	―

Derivatives not designated as hedging instruments
Sempra Energy Consolidated:
Interest rate instruments(3)		$	9	$	22	$	(25)	$	(57)
Commodity contracts not subject to rate recovery			59		20		(44)		(34)
Associated offsetting commodity contracts			(2)		(8)		2		8
Commodity contracts subject to rate recovery			5		―		(43)		(27)
Associated offsetting commodity contracts			(37)		(26)		37		26
Total		$	34	$	8	$	(73)	$	(84)
SDG&E:
Interest rate instruments(3)		$	―	$	―	$	(17)	$	(41)
Commodity contracts not subject to rate recovery			1		―		―		―
Commodity contracts subject to rate recovery			2		―		(35)		(27)
Associated offsetting commodity contracts			(34)		(26)		34		26
Total		$	(31)	$	(26)	$	(18)	$	(42)
SoCalGas:
Commodity contracts not subject to rate recovery		$	1	$	―	$	―	$	―
Commodity contracts subject to rate recovery			3		―		(3)		―
Associated offsetting commodity contracts			(3)		―		3		―
Total		$	1	$	―	$	―	$	―
(1)	Included in Current Assets: Other for SoCalGas.
(2)	Included in Current Liabilities: Other for SoCalGas.
(3)	Includes Otay Mesa VIE. All of SDG&E's amounts relate to Otay Mesa VIE.

Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table

FAIR VALUE HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
			Gain (loss) on derivatives recognized in earnings
			Three months ended March 31,
		Location	2011		2010
Sempra Energy Consolidated:
Interest rate instruments		Interest Expense	$	3	$	2
Interest rate instruments		Other Income, Net		(5)		(2)
Total(1)			$	(2)	$	―
SoCalGas:
Interest rate instrument		Interest Expense	$	1	$	2
Interest rate instrument		Other Income, Net		(3)		(2)
Total(1)			$	(2)	$	―
(1)	There has been no hedge ineffectiveness on these swaps. Changes in the fair values of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt.

Cash Flow Hedge Impact on the Condensed Consolidated Statements of Operations Table

CASH FLOW HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
		Pretax gain (loss) recognized					Gain (loss) reclassified from AOCI
		in OCI (effective portion)					into earnings (effective portion)
		Three months ended March 31,					Three months ended March 31,
		2011		2010		Location	2011		2010
Sempra Energy Consolidated:
Interest rate instruments(1)		$	―	$	―	Interest Expense	$	(2)	$	(3)
Interest rate instruments			1		―	Equity Earnings, Net of Income Tax		(1)		―
Commodity contracts not subject
to rate recovery			―		1	Equity Earnings, Before Income Tax		―		2
Total		$	1	$	1		$	(3)	$	(1)
SDG&E:
Interest rate instruments(1)		$	―	$	―	Interest Expense	$	(1)	$	(2)
SoCalGas:
Interest rate instruments		$	―	$	―	Interest Expense	$	(1)	$	(1)
(1)	Amounts include Otay Mesa VIE. All of SDG&E's interest rate derivative activity relates to Otay Mesa VIE.

Undesignated Derivative Impact on the Condensed Consolidated Statements of Operations Table

UNDESIGNATED DERIVATIVE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
			Gain (loss) on derivatives recognized in earnings
			Three months ended March 31,
		Location	2011		2010
Sempra Energy Consolidated:
Interest rate and foreign exchange
instruments(1)		Other Income, Net	$	10	$	(9)
Commodity contracts not subject
to rate recovery		Revenues: Sempra Global and Parent		6		15
Commodity contracts not subject		Cost of Natural Gas, Electric
to rate recovery		Fuel and Purchased Power		1		(6)
Commodity contracts not subject
to rate recovery		Other Operation and Maintenance		2		―
Commodity contracts subject		Cost of Electric Fuel
to rate recovery		and Purchased Power		9		(52)
Commodity contracts subject
to rate recovery		Cost of Natural Gas		―		(2)
Commodity contracts subject		Cost of Natural Gas, Electric
to rate recovery		Fuel and Purchased Power		―		(3)
Total			$	28	$	(57)
SDG&E:
Interest rate instruments(1)		Other Income, Net	$	―	$	(9)
Commodity contracts not subject
to rate recovery		Operation and Maintenance		1		―
Commodity contracts subject		Cost of Electric Fuel
to rate recovery		and Purchased Power		9		(52)
Total			$	10	$	(61)
SoCalGas:
Commodity contracts not subject
to rate recovery		Operation and Maintenance	$	1	$	―
Commodity contracts subject
to rate recovery		Cost of Natural Gas		―		(2)
Total			$	1	$	(2)
(1)	Amount for 2010 related to Otay Mesa VIE. Sempra Energy Consolidated also includes additional instruments.

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2011

Fair Value Measurements (Tables) [Abstract]

Fair Value of Financial Instruments Table

FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
		March 31, 2011				December 31, 2010
		Carrying		Fair		Carrying		Fair
		Amount		Value		Amount		Value
Sempra Energy Consolidated:
Investments in affordable housing partnerships(1)		$	26	$	56	$	28	$	58
Total long-term debt(2)			8,868		9,320		8,330		8,883
Due to unconsolidated affiliate(3)			2		2		2		2
Preferred stock of subsidiaries			179		163		179		166
SDG&E:
Total long-term debt(4)		$	3,303	$	3,285	$	3,305	$	3,300
Contingently redeemable preferred stock			79		78		79		78
PE and SoCalGas:
Total long-term debt(5)		$	1,312	$	1,353	$	1,566	$	1,638

PE:
Preferred stock		$	80	$	65	$	80	$	68
Preferred stock of subsidiary			20		20		20		20

SoCalGas:
Preferred stock		$	22	$	21	$	22	$	21
(1)	We discuss our investments in affordable housing partnerships in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.
(2)	Before reductions for unamortized discount of $22 million at March 31, 2011 and December 31, 2010, and excluding capital leases of $217 million at March 31, 2011 and $221 million at December 31, 2010, and commercial paper classified as long-term debt of $200 million at March 31, 2011 and $800 million at December 31, 2010. We discuss our long-term debt in Note 6 above and Note 5 of the Notes to Consolidated Financial Statements in the Annual Report.
(3)	Note payable to Chilquinta Energía S.A. due April 1, 2011 is included in Due to Unconsolidated Affiliates, Current at March 31, 2011 and December 31, 2010.
(4)	Before reductions for unamortized discount of $10 million at March 31, 2011 and $9 million at December 31, 2010, and excluding capital leases of $200 million at March 31, 2011 and $202 million at December 31, 2010.
(5)	Before reductions for unamortized discount of $2 million at March 31, 2011 and $3 million at December 31, 2010, and excluding capital leases of $17 million at March 31, 2011 and $19 million at December 31, 2010.

Nuclear Decommissioning Trusts Table

NUCLEAR DECOMMISSIONING TRUSTS
(Dollars in millions)
					Gross		Gross		Estimated
					Unrealized		Unrealized		Fair
			Cost		Gains		Losses		Value
As of March 31, 2011:
Debt securities
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies(1)		$	162	$	12	$	(3)	$	171
Municipal bonds(2)			95		2		(3)		94
Other securities(3)			36		3		―		39
Total debt securities			293		17		(6)		304
Equity securities			220		264		(1)		483
Cash and cash equivalents			9		―		―		9
Total		$	522	$	281	$	(7)	$	796
As of December 31, 2010:
Debt securities
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies		$	162	$	14	$	(2)	$	174
Municipal bonds			101		2		(3)		100
Other securities			22		3		―		25
Total debt securities			285		19		(5)		299
Equity securities			219		242		(1)		460
Cash and cash equivalents			10		―		―		10
Total		$	514	$	261	$	(6)	$	769
(1)	Maturity dates are 2011-2040.
(2)	Maturity dates are 2013-2057.
(3)	Maturity dates are 2011-2049.

Sales of Securities Table

SALES OF SECURITIES
(Dollars in millions)
	Three months ended March 31,
	2011		2010
Proceeds from sales	$	42	$	40
Gross realized gains		1		1
Gross realized losses		(1)		(2)

Fair Value of Cash Collateral Receivables Not Offset on the Condensed Consolidated Balance Sheets Table

	March 31,		December 31,
(Dollars in millions)	2011		2010
Sempra Energy Consolidated	$	42	$	32
SDG&E		31		25
SoCalGas		4		3

Recurring Fair Value Measures Table

RECURRING FAIR VALUE MEASURES -- SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		At fair value as of March 31, 2011
									Collateral
			Level 1		Level 2		Level 3		netted		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	483	$	―	$	―	$	―	$	483
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			143		28		―		―		171
Municipal bonds			―		94		―		―		94
Other securities			―		39		―		―		39
Total debt securities			143		161		―		―		304
Total nuclear decommissioning trusts(1)			626		161		―		―		787
Interest rate instruments			―		34		―		―		34
Commodity contracts subject to rate recovery			32		1		3		―		36
Commodity contracts not subject to rate recovery			14		56		―		(9)		61
Investments			14		―		―		―		14
Total		$	686	$	252	$	3	$	(9)	$	932
Liabilities:
Interest rate instruments		$	―	$	83	$	―	$	―	$	83
Commodity contracts subject to rate recovery			44		5		―		(44)		5
Commodity contracts not subject to rate recovery			1		58		―		(1)		58
Total		$	45	$	146	$	―	$	(45)	$	146

		At fair value as of December 31, 2010
									Collateral
			Level 1		Level 2		Level 3		netted		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	460	$	―	$	―	$	―	$	460
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			144		30		―		―		174
Municipal bonds			―		100		―		―		100
Other securities			―		25		―		―		25
Total debt securities			144		155		―		―		299
Total nuclear decommissioning trusts(1)			604		155		―		―		759
Interest rate instruments			―		34		―		―		34
Commodity contracts subject to rate recovery			25		1		2		―		28
Commodity contracts not subject to rate recovery			9		66		―		(22)		53
Investments			1		―		―		―		1
Total		$	639	$	256	$	2	$	(22)	$	875
Liabilities:
Interest rate instruments		$	―	$	82	$	―	$	―	$	82
Commodity contracts subject to rate recovery			60		8		―		(60)		8
Commodity contracts not subject to rate recovery			―		67		―		―		67
Total		$	60	$	157	$	―	$	(60)	$	157
(1)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES -- SDG&E
(Dollars in millions)
		At fair value as of March 31, 2011
									Collateral
			Level 1		Level 2		Level 3		netted		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	483	$	―	$	―	$	―	$	483
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			143		28		―		―		171
Municipal bonds			―		94		―		―		94
Other securities			―		39		―		―		39
Total debt securities			143		161		―		―		304
Total nuclear decommissioning trusts(1)			626		161		―		―		787
Commodity contracts subject to rate recovery			30		1		3		―		34
Commodity contracts not subject to rate recovery			2		―		―		―		2
Total		$	658	$	162	$	3	$	―	$	823

Liabilities:
Interest rate instruments		$	―	$	53	$	―	$	―	$	53
Commodity contracts subject to rate recovery			44		2		―		(44)		2
Total		$	44	$	55	$	―	$	(44)	$	55

		At fair value as of December 31, 2010
									Collateral
			Level 1		Level 2		Level 3		netted		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	460	$	―	$	―	$	―	$	460
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			144		30		―		―		174
Municipal bonds			―		100		―		―		100
Other securities			―		25		―		―		25
Total debt securities			144		155		―		―		299
Total nuclear decommissioning trusts(1)			604		155		―		―		759
Commodity contracts subject to rate recovery			24		―		2		―		26
Commodity contracts not subject to rate recovery			2		―		―		―		2
Total		$	630	$	155	$	2	$	―	$	787

Liabilities:
Interest rate instruments		$	―	$	58	$	―	$	―	$	58
Commodity contracts subject to rate recovery			60		2		―		(60)		2
Total		$	60	$	60	$	―	$	(60)	$	60
(1)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES -- SOCALGAS
(Dollars in millions)
	At fair value as of March 31, 2011
								Collateral
		Level 1		Level 2		Level 3		netted		Total
Assets:
Commodity contracts subject to rate recovery	$	2	$	―	$	―	$	―	$	2
Commodity contracts not subject to rate recovery		4		―		―		―		4
Total	$	6	$	―	$	―	$	―	$	6
Liabilities:
Commodity contracts subject to rate recovery	$	―	$	1	$	―	$	―	$	1

	At fair value as of December 31, 2010
								Collateral
		Level 1		Level 2		Level 3		netted		Total
Assets:
Interest rate instruments	$	―	$	3	$	―	$	―	$	3
Commodity contracts subject to rate recovery		1		1		―		―		2
Commodity contracts not subject to rate recovery		3		―		―		―		3
Total	$	4	$	4	$	―	$	―	$	8

Recurring Fair Value Measures Level 3 Rollforward Table

	Three months ended March 31,
(Dollars in millions)	2011		2010
Balance as of January 1	$	2	$	10
Realized and unrealized gains (losses)		6		(2)
Allocated transmission instruments		1		―
Settlements		(6)		1
Balance as of March 31	$	3	$	9
Change in unrealized gains relating to
instruments still held at March 31	$	―	$	―

OTHER FINANCIAL DATA - PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
Pension Benefits
Net Periodic Benefit Cost
Service cost	$ 22	$ 22
Interest cost	43	43
Expected return on assets	(37)	(36)
Amortization of prior service cost	1	1
Amortization of actuarial loss	9	8
Regulatory adjustment	(29)	(29)
Total net periodic benefit cost	9	9
Pension and Other Postretirement Benefit Contributions [Abstract]
Contributions to pension plans	11
Expected contributions to pension and other postretirement benefit plans	266
Pension Benefits \| San Diego Gas and Electric Company and Subsidiary [Member]
Net Periodic Benefit Cost
Service cost	7	7
Interest cost	13	12
Expected return on assets	(12)	(10)
Amortization of prior service cost	1	1
Amortization of actuarial loss	2	3
Regulatory adjustment	(9)	(12)
Total net periodic benefit cost	2	1
Pension and Other Postretirement Benefit Contributions [Abstract]
Expected contributions to pension and other postretirement benefit plans	82
Pension Benefits \| Southern California Gas Company [Member]
Net Periodic Benefit Cost
Service cost	12	12
Interest cost	25	25
Expected return on assets	(22)	(23)
Amortization of prior service cost	1	1
Amortization of actuarial loss	4	3
Regulatory adjustment	(20)	(17)
Total net periodic benefit cost		1
Pension and Other Postretirement Benefit Contributions [Abstract]
Contributions to pension plans	1
Expected contributions to pension and other postretirement benefit plans	118
Other Postretirement Benefits
Net Periodic Benefit Cost
Service cost	7	7
Interest cost	17	15
Expected return on assets	(12)	(12)
Amortization of actuarial loss	4	2
Regulatory adjustment	2	2
Total net periodic benefit cost	18	14
Pension and Other Postretirement Benefit Contributions [Abstract]
Contributions to other postretirement benefit plans	19
Expected contributions to pension and other postretirement benefit plans	76
Other Postretirement Benefits \| San Diego Gas and Electric Company and Subsidiary [Member]
Net Periodic Benefit Cost
Service cost	2	2
Interest cost	2	2
Expected return on assets	(2)	(2)
Amortization of prior service cost	1	1
Regulatory adjustment	1	1
Total net periodic benefit cost	4	4
Pension and Other Postretirement Benefit Contributions [Abstract]
Contributions to other postretirement benefit plans	4
Expected contributions to pension and other postretirement benefit plans	16
Other Postretirement Benefits \| Southern California Gas Company [Member]
Net Periodic Benefit Cost
Service cost	5	5
Interest cost	13	12
Expected return on assets	(10)	(10)
Amortization of prior service cost	(1)	(1)
Amortization of actuarial loss	5	2
Regulatory adjustment	1	1
Total net periodic benefit cost	13	$ 9
Pension and Other Postretirement Benefit Contributions [Abstract]
Contributions to other postretirement benefit plans	14
Expected contributions to pension and other postretirement benefit plans	$ 55

OTHER FINANCIAL DATA - EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
Earnings Per Share Numerator [Abstract]
Earnings	$ 258,000,000	$ 106,000,000
Earnings Per Share Denominator [Abstract]
Weighted-average common shares outstanding for basic EPS	240,128,000	246,083,000
Weighted-average common shares outstanding for diluted EPS	241,903,000	250,373,000
Earnings Per Share [Abstract]
Basic earnings per common share	$ 1.07	$ 0.43
Diluted earnings per common share	$ 1.07	$ 0.42
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		2,180,900
Restricted Stock Units Member
Schedule Of Performance Based Restricted Shares [Line Items]
Contractual vesting percentage minimum	0.00%
Contractual vesting percentage maximum	150.00%
Estimated vesting percentage minimum	70.00%
Estimated vesting percentage maximum	88.00%
Estimated vesting percentage		150.00%
Shares excluded from potential dilutive shares	762,592
Shares included from potential dilutive shares	1,597,632	2,353,535
Restricted Stock Awards Member
Schedule Of Performance Based Restricted Shares [Line Items]
Contractual vesting percentage minimum	0.00%
Contractual vesting percentage maximum	100.00%
Estimated vesting percentage	100.00%	100.00%
Shares included from potential dilutive shares	26,733	850,349
San Diego Gas and Electric Company and Subsidiary [Member]
Earnings Per Share Numerator [Abstract]
Earnings	$ 90,000,000	$ 84,000,000
Pacific Enterprises [Member]
Earnings Per Share Numerator [Abstract]
Earnings	68,000,000	65,000,000
Southern California Gas Company [Member]
Earnings Per Share Numerator [Abstract]
Earnings	$ 68,000,000	$ 65,000,000
Out Of The Money Stock Options [Member]
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	2,120,225
In The Money Stock Options
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	10,800	9,900
Restricted Stock Units
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	997,609

OTHER FINANCIAL DATA - COMPREHENSIVE INCOME AND EQUITY (Details) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2011

Mar. 31, 2010

Comprehensive Income And Equity Disclosure [Line Items]

$ 9,238

^[1]

$ 9,251

Foreign currency translation adjustments

^[2]

264

100

(6)

(4)

Net actuarial gain

Share-based compensation expense

263

Common stock dividends declared

(115)

(96)

Preferred dividends of subsidiaries

(2)

Issuance of common stock

Repurchases of common stock

(17)

(2)

Common stock released from ESOP

(3)

Other Comprehensive Income (Loss), Tax [Abstract]

9,403

9,295

Financial instruments, income tax expense (benefit)

Net actuarial gain, income tax expense (benefit)

San Diego Gas and Electric Company and Subsidiary [Member]

Comprehensive Income And Equity Disclosure [Line Items]

3,221

^[1]

2,885

Preferred stock dividends declared

(1)

Capital contribution

200

(2)

3,516

2,960

Comprehensive Income And Equity Disclosure [Line Items]

^[1]

2,416

^[2]

2,433

Comprehensive Income And Equity Disclosure [Line Items]

^[1]

1,955

Total Shareholders' Equity

1,973

Comprehensive Income And Equity Disclosure [Line Items]

9,027

9,007

Foreign currency translation adjustments

^[2],[3]

260

108

^[3]

(6)

(4)

^[3]

Net actuarial gain

^[3]

Share-based compensation expense

^[3]

258

105

Common stock dividends declared

(115)

(96)

Preferred dividends of subsidiaries

(2)

Issuance of common stock

Repurchases of common stock

(17)

(2)

Common stock released from ESOP

Other Comprehensive Income (Loss), Tax [Abstract]

9,186

9,060

Financial instruments, income tax expense (benefit)

Net actuarial gain, income tax expense (benefit)

Total Shareholders' Equity | San Diego Gas and Electric Company and Subsidiary [Member]

Comprehensive Income And Equity Disclosure [Line Items]

3,108

2,739

^[3]

Preferred stock dividends declared

^[3]

(1)

Capital contribution

200

Total Shareholders' Equity | Pacific Enterprises [Member]

3,397

2,822

^[2],[3]

Total Shareholders' Equity | Southern California Gas Company [Member]

^[3]

^[3]

Comprehensive Income And Equity Disclosure [Line Items]

^[3]

Noncontrolling Interests

211

244

^[2]

(8)

(6)

(3)

Noncontrolling Interests | San Diego Gas and Electric Company and Subsidiary [Member]

217

235

Comprehensive Income And Equity Disclosure [Line Items]

113

146

(8)

(6)

(2)

$ 119

$ 138

[1]	Derived from audited financial statements.
[2]	Before preferred dividends of subsidiaries.
[3]	Shareholders' equity of Sempra Energy Consolidated, SDG&E, PE or SoCalGas as indicated in left margin.

OTHER FINANCIAL DATA - TRANSACTIONS WITH AFFILIATES (Details) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2011

Mar. 31, 2010

Dec. 31, 2010

Revenues from transactions with RBS Sempra Commodities

$ 45

$ 86

Cost of natural gas from transactions with RBS Sempra Commodities

105

Fixed-price contracts and other derivatives - Net Asset (Liability) - RBS Sempra Commodities

(9)

$ (18)

San Diego Gas and Electric Company and Subsidiary [Member]

Transactions With Affiliates Disclosure [Line Items]

Revenues from unconsolidated affiliates

Transactions With Affiliates Disclosure [Line Items]

383

Interest rate on due from affiliate, noncurrent

$ 85

0.19%

Transactions With Affiliates Disclosure [Line Items]

Revenues from unconsolidated affiliates

$ 378

Due to/from Sempra Energy | San Diego Gas and Electric Company and Subsidiary [Member]

Transactions With Affiliates Disclosure [Line Items]

Income taxes due to (from) Sempra Energy

^[1]

Due to/from Sempra Energy | Pacific Enterprises [Member]

Transactions With Affiliates Disclosure [Line Items]

Income taxes due to (from) Sempra Energy

357

^[1]

Due from affiliate, noncurrent

505

502

Due to/from Sempra Energy | Southern California Gas Company [Member]

Transactions With Affiliates Disclosure [Line Items]

Income taxes due to (from) Sempra Energy

357

^[1]

(4)

(3)

Subsidiary Of Common Parent S D G E [Member] | Pacific Enterprises [Member]

Transactions With Affiliates Disclosure [Line Items]

Subsidiary Of Common Parent S D G E [Member] | Southern California Gas Company [Member]

Transactions With Affiliates Disclosure [Line Items]

Subsdiary Of Common Parent So Cal Gas [Member] | San Diego Gas and Electric Company and Subsidiary [Member]

Transactions With Affiliates Disclosure [Line Items]

Subsidiary Of Common Parent Other Affiliates [Member] | San Diego Gas and Electric Company and Subsidiary [Member]

Transactions With Affiliates Disclosure [Line Items]

Subsidiary Of Common Parent Other Affiliates [Member] | Pacific Enterprises [Member]

Transactions With Affiliates Disclosure [Line Items]

Subsidiary Of Common Parent Other Affiliates [Member] | Southern California Gas Company [Member]

Transactions With Affiliates Disclosure [Line Items]

S D G E Segment [Member]

Cost of natural gas from transactions with RBS Sempra Commodities

So Cal Gas Segment [Member]

Revenues from transactions with RBS Sempra Commodities

Cost of natural gas from transactions with RBS Sempra Commodities

Sempra Generation Segment [Member]

Revenues from transactions with RBS Sempra Commodities

^[2]

Cost of natural gas from transactions with RBS Sempra Commodities

Fixed-price contracts and other derivatives - Net Asset (Liability) - RBS Sempra Commodities

Sempra Pipelines and Storage Segment [Member]

Cost of natural gas from transactions with RBS Sempra Commodities

Sempra L N G Segment [Member]

Revenues from transactions with RBS Sempra Commodities

Cost of natural gas from transactions with RBS Sempra Commodities

$ 67

Fixed-price contracts and other derivatives - Net Asset (Liability) - RBS Sempra Commodities

(28)

(35)

All Other Segments [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

$ 5

[1]	SDG&E, PE and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from the companies' having always filed a separate return.
[2]	Includes amounts in 2010 for Sempra Rockies Marketing, previously reported in the Sempra Commodities segment, as we discuss in Note 11.

DEBT AND CREDIT FACILITIES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2011	Dec. 31, 2010
Line of Credit Facility [Line Items]
Commercial paper noncurrent	$ 200	$ 800
Guarantees [Abstract]
Fair value of indemnity of certain litigation and tax liabilities related to businesses purchased by RBS Sempra Commodities	5
Net trading liabilities of RBS Sempra Commodities supported by Sempra Energy's guarantees	$ 286
Fowler Ridge I I Wind Farm [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage in equity method investee	50.00%
Long-term debt outstanding	$ 348
Proceeds from return of capital	180
Liability for guarantee obligation associated with cash flow requirements	9
Line Of Credit Facility, Sempra Energy Consolidated [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	3,800
Committed lines of credit, remaining borrowing capacity	$ 2,800
Weighted average interest rate on total short-term debt outstanding	0.49%	0.46%
Line Of Credit Facility, Sempra Energy [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	$ 1,000
Committed lines of credit, maximum ratio of indebtedness to total capitalization	65.00%
Committed lines of credit, capacity for issuance of letters of credit	$ 400
Other instruments supported by committed lines of credit	26
Line Of Credit Facility, Sempra Global [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	$ 2,000
Committed lines of credit, maximum ratio of indebtedness to total capitalization	65.00%
Outstanding commercial paper supported by committed lines of credit	$ 766
Commercial paper noncurrent	200
Line Of Credit Facility, Sempra Utilities Combined [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	$ 800
Committed lines of credit, maximum ratio of indebtedness to total capitalization	65.00%
Committed lines of credit, capacity for issuance of letters of credit	$ 200
Line Of Credit Facility, S D G E [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	600
Committed lines of credit, remaining borrowing capacity	363
Other instruments supported by committed lines of credit	237
Line Of Credit Facility, So Cal Gas [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	600
Committed lines of credit, remaining borrowing capacity	563
Parent Company Member \| Other Long Term Debt, Fixed Rate Due 2014 Member
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 500
Debt Instrument, Interest Rate, Stated Percentage	2.00%
Parent Company Member \| Other Long Term Debt, Floating Rate Due 2014 Member
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 300
Debt Instrument, Interest Rate At Period End	1.069%

FAIR VALUE MEASUREMENTS (Details) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2011

Mar. 31, 2010

Dec. 31, 2010

Debt Instrument Unamortized Discount

$ 22

Capital Lease Obligations

217

221

Commercial Paper Noncurrent

200

800

Schedule of Available-for-sale Securities [Line Items]

522

514

281

261

(7)

(6)

Derivative, Fair Value, Gross Amount Not Offset Against Collateral, Net [Line Items]

796

769

Proceeds from sales

$ 40

Gross realized gains

Gross realized losses

(1)

(2)

Fair value of cash collateral receivables not offset against derivatives

Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]

Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies

483

460

171

174

Nuclear decomissioning trusts - Municipal debt securities

100

Nuclear decommissioning trusts - Other debt securities

Nuclear decommissioning trusts - Total debt securities

304

299

^[1]

787

759

Commodity contracts subject to rate recovery, assets

Commodity contracts not subject to rate recovery, assets

Investments

Total fair value of assets measured on a recurring basis

932

875

Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]

Commodity contracts subject to rate recovery, liabilities

Commodity contracts not subject to rate recovery, liabilities

Total fair value of liabilities measured on a recurring basis

146

157

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

Balance at beginning of period

Realized and unrealized gains (losses)

(2)

Allocated transmission instruments

Settlements

(6)

Balance at end of period

$ 9

San Diego Gas and Electric Company and Subsidiary [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Debt Instrument Unamortized Discount

Capital Lease Obligations

200

202

Derivative, Fair Value, Gross Amount Not Offset Against Collateral, Net [Line Items]

Fair value of cash collateral receivables not offset against derivatives

Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]

Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies

483

460

171

174

Nuclear decomissioning trusts - Municipal debt securities

100

Nuclear decommissioning trusts - Other debt securities

Nuclear decommissioning trusts - Total debt securities

304

299

Commodity contracts subject to rate recovery, assets

^[1]

787

759

Commodity contracts not subject to rate recovery, assets

Total fair value of assets measured on a recurring basis

823

787

Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]

Commodity contracts subject to rate recovery, liabilities

Total fair value of liabilities measured on a recurring basis

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Debt Instrument Unamortized Discount

Capital Lease Obligations

Derivative, Fair Value, Gross Amount Not Offset Against Collateral, Net [Line Items]

Fair value of cash collateral receivables not offset against derivatives

Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]

Commodity contracts subject to rate recovery, assets

Commodity contracts not subject to rate recovery, assets

Total fair value of assets measured on a recurring basis

Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]

Commodity contracts subject to rate recovery, liabilities

Total Debt Securities

Schedule of Available-for-sale Securities [Line Items]

293

285

(6)

(5)

Debt Securities Issued By The U.S. Treasury And Other U.S. Government Corporations And Agencies

304

299

Schedule of Available-for-sale Securities [Line Items]

162

^[2]

162

^[2]

(3)

^[2]

(2)

Schedule of Available-for-sale Securities [Line Items]

171

^[2]

174

Municipal Bonds

^[3]

101

^[3]

(3)

^[3]

(3)

Schedule of Available-for-sale Securities [Line Items]

^[3]

100

Other Debt Securities

^[4]

^[4]

Schedule of Available-for-sale Securities [Line Items]

^[4]

Equity Securities

220

219

264

242

(1)

Cash And Cash Equivalents

483

460

Schedule of Available-for-sale Securities [Line Items]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Carrying Amount

Fair value of financial instruments, Investments in affordable housing partnerships

^[5]

Fair value of financial instruments, Total long-term debt

^[6]

8,868

8,330

Fair value of financial instruments, Due to unconsolidated affiliate

^[7]

Fair value of financial instruments, Preferred stock of subsidiaries

179

Carrying Amount | San Diego Gas and Electric Company and Subsidiary [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair value of financial instruments, Total long-term debt

^[8]

3,303

3,305

Fair value of financial instruments, Contingently redeemable preferred stock

Carrying Amount | Pacific Enterprises [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair value of financial instruments, Total long-term debt

1,312

1,566

Fair value of financial instruments, Preferred stock of subsidiaries

Fair value of financial instruments, Preferred stock

Carrying Amount | Southern California Gas Company [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair value of financial instruments, Total long-term debt

^[9]

1,312

1,566

Fair value of financial instruments, Preferred stock

Fair Value

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair value of financial instruments, Investments in affordable housing partnerships

^[5]

Fair value of financial instruments, Total long-term debt

^[6]

9,320

8,883

Fair value of financial instruments, Due to unconsolidated affiliate

^[7]

Fair value of financial instruments, Preferred stock of subsidiaries

163

166

Fair Value | San Diego Gas and Electric Company and Subsidiary [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair value of financial instruments, Total long-term debt

^[8]

3,285

3,300

Fair value of financial instruments, Contingently redeemable preferred stock

Fair Value | Pacific Enterprises [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair value of financial instruments, Total long-term debt

1,353

1,638

Fair value of financial instruments, Preferred stock of subsidiaries

Fair value of financial instruments, Preferred stock

Fair Value | Southern California Gas Company [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair value of financial instruments, Total long-term debt

^[9]

1,353

1,638

Fair value of financial instruments, Preferred stock

Level 1

Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]

Commodity contracts subject to rate recovery, liabilities

Commodity contracts not subject to rate recovery, liabilities

Total fair value of liabilities measured on a recurring basis

Level 1 | San Diego Gas and Electric Company and Subsidiary [Member]

Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]

Commodity contracts subject to rate recovery, liabilities

Total fair value of liabilities measured on a recurring basis

Level 2

Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]

Commodity contracts subject to rate recovery, liabilities

Commodity contracts not subject to rate recovery, liabilities

Total fair value of liabilities measured on a recurring basis

146

157

Level 2 | San Diego Gas and Electric Company and Subsidiary [Member]

Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]

Commodity contracts subject to rate recovery, liabilities

Total fair value of liabilities measured on a recurring basis

Level 2 | Southern California Gas Company [Member]

Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]

Commodity contracts subject to rate recovery, liabilities

Collateral Netted [Member]

Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]

Commodity contracts subject to rate recovery, liabilities

(44)

(60)

Commodity contracts not subject to rate recovery, liabilities

(1)

Total fair value of liabilities measured on a recurring basis

(45)

(60)

Collateral Netted [Member] | San Diego Gas and Electric Company and Subsidiary [Member]

Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]

Commodity contracts subject to rate recovery, liabilities

(44)

(60)

Total fair value of liabilities measured on a recurring basis

(44)

(60)

Level 1

Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]

Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies

483

460

143

144

Nuclear decommissioning trusts - Total debt securities

143

144

Commodity contracts subject to rate recovery, assets

^[1]

626

604

Commodity contracts not subject to rate recovery, assets

Investments

Total fair value of assets measured on a recurring basis

686

639

Level 1 | San Diego Gas and Electric Company and Subsidiary [Member]

Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]

Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies

483

460

143

144

Nuclear decommissioning trusts - Total debt securities

143

144

Commodity contracts subject to rate recovery, assets

^[1]

626

604

Commodity contracts not subject to rate recovery, assets

Total fair value of assets measured on a recurring basis

658

630

Level 1 | Southern California Gas Company [Member]

Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]

Commodity contracts subject to rate recovery, assets

Commodity contracts not subject to rate recovery, assets

Total fair value of assets measured on a recurring basis

Level 2

Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]

Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies

Nuclear decomissioning trusts - Municipal debt securities

100

Nuclear decommissioning trusts - Other debt securities

Nuclear decommissioning trusts - Total debt securities

161

155

^[1]

161

155

Commodity contracts subject to rate recovery, assets

Commodity contracts not subject to rate recovery, assets

Total fair value of assets measured on a recurring basis

252

256

Level 2 | San Diego Gas and Electric Company and Subsidiary [Member]

Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]

Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies

Nuclear decomissioning trusts - Municipal debt securities

100

Nuclear decommissioning trusts - Other debt securities

Nuclear decommissioning trusts - Total debt securities

161

155

Commodity contracts subject to rate recovery, assets

^[1]

161

155

Total fair value of assets measured on a recurring basis

162

155

Level 2 | Southern California Gas Company [Member]

Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]