View Filing Data

$ 570,000,000

$ 904,000,000

Trade accounts receivable

11,000,000

24,000,000

1,242,000,000

1,308,000,000

Other accounts and notes receivable, net

152,000,000

214,000,000

Due from affiliates

38,000,000

4,000,000

Income taxes receivable

45,000,000

85,000,000

Deferred income taxes, net current assets

305,000,000

301,000,000

Regulatory balancing accounts - undercollected

396,000,000

287,000,000

746,000,000

556,000,000

Fixed-price contracts and other derivatives, current assets

93,000,000

106,000,000

Asset held for sale, power plant

293,000,000

293,000,000

208,000,000

Investments And Other Assets [Abstract]

4,184,000,000

3,997,000,000

Regulatory Assets, Noncurrent

29,000,000

25,000,000

Due from affiliaties

188,000,000

14,000,000

3,031,000,000

2,548,000,000

Nuclear decommissioning trusts

1,131,000,000

1,034,000,000

Other investments

2,848,000,000

1,575,000,000

Goodwill

931,000,000

1,024,000,000

Other intangible assets

415,000,000

426,000,000

Assets held in trust

512,000,000

506,000,000

Total investments and other assets

561,000,000

635,000,000

9,646,000,000

7,787,000,000

Property, plant and equipment:

Less accumulated depreciation and amortization

35,407,000,000

34,407,000,000

(9,505,000,000)

(8,947,000,000)

25,902,000,000

25,460,000,000

Dividends and interest payable

39,732,000,000

37,244,000,000

Current liabilities:

Short-term debt

1,733,000,000

545,000,000

Accounts payable - trade

1,198,000,000

1,088,000,000

Accounts payable - other

155,000,000

127,000,000

Due to affiliaties

2,000,000

282,000,000

271,000,000

Regulatory balancing accounts - overcollected

91,000,000

Accrued compensation and benefits

373,000,000

376,000,000

Fixed-price contracts and other derivatives, current liabilities

469,000,000

1,147,000,000

55,000,000

Customer deposits

153,000,000

154,000,000

649,000,000

515,000,000

5,069,000,000

4,369,000,000

Deferred Credits and Other Liabilities [Abstract]

12,167,000,000

11,253,000,000

Customer advances for construction

144,000,000

155,000,000

Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent

1,064,000,000

667,000,000

Deferred income taxes, net noncurrent liabilities

3,003,000,000

2,804,000,000

Deferred investment tax credits

37,000,000

42,000,000

Regulatory liabilities arising from removal obligations

2,741,000,000

2,623,000,000

Asset retirement obligations

2,048,000,000

2,084,000,000

Fixed-price contracts and other derivatives, noncurrent liabilities

255,000,000

228,000,000

Total deferred credits and other liabilities

1,104,000,000

1,169,000,000

10,396,000,000

9,772,000,000

Equity:

Common stock

2,484,000,000

2,409,000,000

Retained earnings

9,339,000,000

8,827,000,000

Accumulated other comprehensive income (loss)

^[1]

(497,000,000)

(228,000,000)

Total shareholders' equity

11,326,000,000

11,008,000,000

Preferred stock of subsidiaries

20,000,000

Other noncontrolling interests

754,000,000

822,000,000

Total equity

12,100,000,000

11,850,000,000

39,732,000,000

37,244,000,000

Current assets:

8,000,000

27,000,000

Trade accounts receivable

8,000,000

6,000,000

285,000,000

266,000,000

Other accounts and notes receivable, net

35,000,000

28,000,000

Due from affiliates

1,000,000

Income taxes receivable

32,000,000

Deferred income taxes, net current assets

103,000,000

Regulatory balancing accounts - undercollected

73,000,000

86,000,000

711,000,000

556,000,000

Regulatory Assets, Current

54,000,000

29,000,000

Fixed-price contracts and other derivatives, current assets

44,000,000

61,000,000

125,000,000

75,000,000

Investments And Other Assets [Abstract]

1,344,000,000

1,270,000,000

Deferred taxes recoverable in rates

11,000,000

25,000,000

824,000,000

788,000,000

Regulatory Assets, Noncurrent

1,086,000,000

1,160,000,000

Nuclear decommissioning trusts

1,131,000,000

1,034,000,000

Total investments and other assets

282,000,000

254,000,000

3,334,000,000

3,261,000,000

Property, plant and equipment:

Less accumulated depreciation and amortization

15,478,000,000

14,346,000,000

(3,860,000,000)

(3,500,000,000)

11,618,000,000

10,846,000,000

Deferred income taxes, net current liabilities

16,296,000,000

15,377,000,000

Current liabilities:

Short-term debt

246,000,000

59,000,000

Accounts payable - trade

441,000,000

420,000,000

Due to affiliaties

21,000,000

39,000,000

Income taxes payable

30,000,000

53,000,000

Dividends and interest payable

40,000,000

39,000,000

Accrued compensation and benefits

124,000,000

113,000,000

Fixed-price contracts and other derivatives, current liabilities

365,000,000

29,000,000

40,000,000

38,000,000

AssetRetirementObligationCurrent

120,000,000

51,000,000

Customer deposits

71,000,000

237,000,000

220,000,000

1,788,000,000

1,079,000,000

Deferred Credits and Other Liabilities [Abstract]

4,319,000,000

4,525,000,000

Customer advances for construction

41,000,000

34,000,000

Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent

216,000,000

132,000,000

Deferred income taxes, net noncurrent liabilities

2,121,000,000

2,021,000,000

Deferred investment tax credits

22,000,000

24,000,000

Regulatory liabilities arising from removal obligations

1,557,000,000

1,403,000,000

Asset retirement obligations

754,000,000

861,000,000

Fixed-price contracts and other derivatives, noncurrent liabilities

153,000,000

175,000,000

Total deferred credits and other liabilities

333,000,000

404,000,000

5,197,000,000

5,054,000,000

Equity:

Common stock

1,338,000,000

Retained earnings

3,606,000,000

3,299,000,000

Accumulated other comprehensive income (loss)

^[1]

(12,000,000)

(9,000,000)

Total shareholders' equity

4,932,000,000

4,628,000,000

Other noncontrolling interests

60,000,000

91,000,000

Total equity

4,992,000,000

4,719,000,000

16,296,000,000

15,377,000,000

Current assets:

Trade accounts receivable

85,000,000

27,000,000

586,000,000

595,000,000

Other accounts and notes receivable, net

51,000,000

97,000,000

Due from affiliates

4,000,000

21,000,000

Income taxes receivable

5,000,000

25,000,000

Regulatory balancing accounts - undercollected

181,000,000

69,000,000

35,000,000

Regulatory Assets, Current

5,000,000

36,000,000

34,000,000

Investments And Other Assets [Abstract]

988,000,000

873,000,000

Regulatory assets arising from pension obligations

617,000,000

326,000,000

Regulatory Assets, Noncurrent

472,000,000

262,000,000

Other post retirement benefit assets, net of plan liabilities

4,000,000

95,000,000

Total investments and other assets

136,000,000

124,000,000

1,229,000,000

807,000,000

Property, plant and equipment:

Less accumulated depreciation and amortization

12,886,000,000

11,831,000,000

(4,642,000,000)

(4,364,000,000)

8,244,000,000

7,467,000,000

Deferred income taxes, net current liabilities

10,461,000,000

9,147,000,000

Current liabilities:

Short-term debt

50,000,000

42,000,000

Accounts payable - trade

532,000,000

346,000,000

Accounts payable - other

88,000,000

79,000,000

Due to affiliaties

13,000,000

16,000,000

53,000,000

45,000,000

Regulatory balancing accounts - overcollected

91,000,000

Accrued compensation and benefits

129,000,000

141,000,000

252,000,000

Customer deposits

75,000,000

149,000,000

125,000,000

1,089,000,000

1,212,000,000

Deferred Credits and Other Liabilities [Abstract]

1,906,000,000

1,159,000,000

Customer advances for construction

102,000,000

108,000,000

Pension obligation, net of plan assets

633,000,000

339,000,000

Deferred income taxes, net noncurrent liabilities

1,212,000,000

993,000,000

Deferred investment tax credits

16,000,000

18,000,000

Regulatory liabilities arising from removal obligations

1,167,000,000

1,205,000,000

Asset retirement obligations

1,255,000,000

1,182,000,000

Total deferred credits and other liabilities

300,000,000

382,000,000

4,685,000,000

4,227,000,000

Equity:

Preferred stock

22,000,000

Common stock

866,000,000

Retained earnings

1,911,000,000

1,679,000,000

Accumulated other comprehensive income (loss)

^[1]

(18,000,000)

Total shareholders' equity

2,781,000,000

2,549,000,000

Total equity

2,781,000,000

2,549,000,000

Notes to Consolidated Financial Statements [Abstract]

$ 10,461,000,000

$ 9,147,000,000

[1]	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013
Property, plant and equipment related to VIE	$ 410	$ 438
Long-term debt related to VIE	$ 315	$ 325
Shareholders' equity:
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares outstanding	246,330,884	244,461,327
San Diego Gas and Electric Company [Member]
Property, plant and equipment related to VIE	$ 410	$ 438
Long-term debt related to VIE	$ 315	$ 325
Shareholders' equity:
Preferred stock, shares authorized	45,000,000
Common stock, shares authorized	255,000,000	255,000,000
Common stock, shares outstanding	117,000,000	117,000,000
Southern California Gas Company [Member]
Shareholders' equity:
Preferred stock, shares authorized	1,000,000
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	91,000,000	91,000,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
REVENUES
Utilities	$ 9,758	$ 9,309	$ 8,441
Energy-related businesses	1,277	1,248	1,206
Total revenues	11,035	10,557	9,647
Utilities [Abstract]
Cost of natural gas	(1,758)	(1,646)	(1,290)
Cost of electric fuel and purchased power	(2,281)	(1,932)	(1,760)
Energy-related businesses [Abstract]
Cost of natural gas, electric fuel and purchased power	(552)	(435)	(481)
Other cost of sales	(163)	(178)	(159)
Sempra Global And Parent [Abstract]
Operation and maintenance	2,935	2,995	2,956
Depreciation and amortization	(1,156)	(1,113)	(1,090)
Loss from plant closure	(6)	(200)	0
Franchise fees and other taxes	(408)	(374)	(359)
Gains on sale of equity interests and assets	62	114	7
Equity Earnings (Losses) [Abstract]
Equity (losses) earnings, other	81	31	(319)
Other income (expense), net	137	140	172
Interest income	22	20	24
Interest expense	(554)	(559)	(493)
Income before income taxes and equity earnings of certain unconsolidated subsidiaries	1,524	1,430	943
Income tax (expense) benefit	(300)	(366)	(59)
Equity earnings, net of income tax	38	24	36
Net income	1,262	1,088	920
Losses (earnings) attributable to noncontrolling interests	(100)	(79)	(55)
Call premium on preferred stock of subsidiary	0	(3)	0
Preferred dividends of subsidiaries	(1)	(5)	(6)
Earnings	$ 1,161	$ 1,001	$ 859
Basic earnings per common share:
Basic earnings per common share	$ 4.72	$ 4.1	$ 3.56
Basic earnings per common share, weighted-average number of shares outstanding (thousands)	245,891	243,863	241,347
Diluted earnings per common share:
Diluted earnings per common share	$ 4.63	$ 4.01	$ 3.48
Diluted earnings per common share, weighted-average number of shares outstanding (thousands)	250,655	249,332	246,693
San Diego Gas and Electric Company [Member]
Utility operating revenues
Electric	$ 3,785	$ 3,537	$ 3,226
Natural gas	544	529	468
Total utility operating revenues	4,329	4,066	3,694
Utility operating expenses
Utility cost of natural gas	208	204	151
Utility cost of electric fuel and purchased power	1,309	1,019	892
Utility operation and maintenance	1,076	1,157	1,154
Utility depreciation and amortization	530	494	490
Utility franchise fees and other taxes	241	210	198
Plant closure loss	6	200	0
Total utility operating expenses	3,370	3,284	2,885
Utility operating income	959	782	809
Equity Earnings (Losses) [Abstract]
Other income (expense), net	40	40	69
Interest income	0	1	0
Interest expense	(202)	(197)	(173)
Income before income taxes and equity earnings of certain unconsolidated subsidiaries	797	626	705
Income tax (expense) benefit	(270)	(191)	(190)
Net income	527	435	515
Losses (earnings) attributable to noncontrolling interests	(20)	(24)	(26)
Earnings	507	411	489
Call premium on preferred stock	0	(3)	0
Preferred stock requirements	0	(4)	(5)
Earnings attributable to common shares	507	404	484
Southern California Gas Company [Member]
Utility operating revenues
Total utility operating revenues	3,855	3,736	3,282
Utility operating expenses
Utility cost of natural gas	1,449	1,362	1,074
Utility operation and maintenance	1,321	1,324	1,304
Utility depreciation and amortization	431	383	362
Utility franchise fees and other taxes	133	128	122
Total utility operating expenses	3,334	3,197	2,862
Utility operating income	521	539	420
Equity Earnings (Losses) [Abstract]
Other income (expense), net	20	11	17
Interest expense	(69)	(69)	(68)
Income before income taxes and equity earnings of certain unconsolidated subsidiaries	472	481	369
Income tax (expense) benefit	(139)	(116)	(79)
Net income	333	365	290
Earnings	333	365	290
Preferred stock requirements	(1)	(1)	(1)
Earnings attributable to common shares	$ 332	$ 364	$ 289

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Net income	$ 1,262	$ 1,088	$ 920
Comprehensive income, net of income tax
Other Comprehensive Income (Loss), Net of Tax, Total	(290)	140	117
Preferred dividends of subsidiaries	(1)	(5)	(6)
San Diego Gas and Electric Company [Member]
Net income	527	435	515
Comprehensive income, net of income tax
Other Comprehensive Income (Loss), Net of Tax, Total	(1)	19	(12)
Southern California Gas Company [Member]
Net income	333	365	290
Comprehensive income, net of income tax
Other Comprehensive Income (Loss), Net of Tax, Total			3
Before-Tax Amount [Member]
Net income	1,462	1,375	924
Comprehensive income, net of income tax
Foreign currency translation adjustments	(193)	111	119
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	(20)	47	(4)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(106)	13	(6)
Other Comprehensive Income (Loss), Net of Tax, Total	(319)	171	109
Total comprehensive income	1,143	1,546	1,033
Preferred dividends of subsidiaries	(1)	(5)	(6)
Total comprehensive income, after preferred dividends of subsidiaries	1,142	1,541	1,027
Before-Tax Amount [Member] \| San Diego Gas and Electric Company [Member]
Net income	777	602	679
Comprehensive income, net of income tax
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	(5)	3	(1)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	0	0	0
Other Comprehensive Income (Loss), Net of Tax, Total	(5)	3	(1)
Total comprehensive income	772	605	678
Before-Tax Amount [Member] \| Southern California Gas Company [Member]
Net income	472	481	369
Comprehensive income, net of income tax
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax		(2)	5
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax		1	2
Other Comprehensive Income (Loss), Net of Tax, Total		(1)	7
Total comprehensive income	472	480	376
Income Tax (Expense) Benefit [Member]
Net income	(300)	(366)	(59)
Comprehensive income, net of income tax
Foreign currency translation adjustments	0	0	0
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	8	(19)	2
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	42	(4)	2
Other Comprehensive Income (Loss), Net of Tax, Total	50	(23)	4
Total comprehensive income	(250)	(389)	(55)
Preferred dividends of subsidiaries	0	0	0
Total comprehensive income, after preferred dividends of subsidiaries	(250)	(389)	(55)
Income Tax (Expense) Benefit [Member] \| San Diego Gas and Electric Company [Member]
Net income	(270)	(191)	(190)
Comprehensive income, net of income tax
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	2	(1)	0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	0	0	0
Other Comprehensive Income (Loss), Net of Tax, Total	2	(1)	0
Total comprehensive income	(268)	(192)	(190)
Income Tax (Expense) Benefit [Member] \| Southern California Gas Company [Member]
Net income	(139)	(116)	(79)
Comprehensive income, net of income tax
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax		1	(3)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax		0	(1)
Other Comprehensive Income (Loss), Net of Tax, Total		1	(4)
Total comprehensive income	(139)	(115)	(83)
Net-Of-Tax Amount [Member]
Net income	1,162	1,009	865
Comprehensive income, net of income tax
Foreign currency translation adjustments	(193)	111	119
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	(12)	28	(2)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(64)	9	(4)
Other Comprehensive Income (Loss), Net of Tax, Total	(269)	148	113
Total comprehensive income	893	1,157	978
Preferred dividends of subsidiaries	(1)	(5)	(6)
Total comprehensive income, after preferred dividends of subsidiaries	892	1,152	972
Net-Of-Tax Amount [Member] \| San Diego Gas and Electric Company [Member]
Net income	507	411	489
Comprehensive income, net of income tax
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	(3)	2	(1)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	0	0	0
Other Comprehensive Income (Loss), Net of Tax, Total	(3)	2	(1)
Total comprehensive income	504	413	488
Net-Of-Tax Amount [Member] \| Southern California Gas Company [Member]
Net income	333	365	290
Comprehensive income, net of income tax
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax		(1)	2
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax		1	1
Other Comprehensive Income (Loss), Net of Tax, Total		0	3
Total comprehensive income	333	365	293
Noncontrolling Interests [Domain]
Net income	100	79	55
Comprehensive income, net of income tax
Foreign currency translation adjustments	(20)	(27)	15
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	0	0	0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(1)	19	(11)
Other Comprehensive Income (Loss), Net of Tax, Total	(21)	(8)	4
Total comprehensive income	79	71	59
Preferred dividends of subsidiaries	0	0	0
Total comprehensive income, after preferred dividends of subsidiaries	79	71	59
Noncontrolling Interests [Domain] \| San Diego Gas and Electric Company [Member]
Net income	20	24	26
Comprehensive income, net of income tax
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	0	0	0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	2	17	(11)
Other Comprehensive Income (Loss), Net of Tax, Total	2	17	(11)
Total comprehensive income	22	41	15
Total Equity [Member]
Net income	1,262	1,088	920
Comprehensive income, net of income tax
Foreign currency translation adjustments	(213)	84	134
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	(12)	28	(2)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(65)	28	(15)
Other Comprehensive Income (Loss), Net of Tax, Total	(290)	140	117
Total comprehensive income	972	1,228	1,037
Preferred dividends of subsidiaries	(1)	(5)	(6)
Total comprehensive income, after preferred dividends of subsidiaries	971	1,223	1,031
Total Equity [Member] \| San Diego Gas and Electric Company [Member]
Net income	527	435	515
Comprehensive income, net of income tax
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	(3)	2	(1)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	2	17	(11)
Other Comprehensive Income (Loss), Net of Tax, Total	(1)	19	(12)
Total comprehensive income	$ 526	$ 454	$ 503

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,262,000,000	$ 1,088,000,000	$ 920,000,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,156,000,000	1,113,000,000	1,090,000,000
Deferred income taxes and investment tax credits	146,000,000	334,000,000	(43,000,000)
Gains on sale of assets	(62,000,000)	(114,000,000)	(7,000,000)
Loss from plant closure	6,000,000	200,000,000	0
Equity earnings	(119,000,000)	(55,000,000)	324,000,000
Fixed-price contracts and other derivatives	(25,000,000)	(21,000,000)	(26,000,000)
Other adjustments to reconcile net income to net cash provided by operating activities	108,000,000	13,000,000	41,000,000
Net change in other working capital components [Abstract]
Net change in accounts and notes receivable	44,000,000	(273,000,000)	36,000,000
Net change in income taxes, net	62,000,000	(38,000,000)	(29,000,000)
Net change in inventories	(133,000,000)	116,000,000	(78,000,000)
Net change in other current assets	(10,000,000)	15,000,000	180,000,000
Net change in regulatory balancing accounts	(317,000,000)	(198,000,000)	(291,000,000)
Net change in regulatory assets and liabilities	8,000,000	1,000,000	(6,000,000)
Net change in accounts payable	109,000,000	(28,000,000)	3,000,000
Net change in other current liabilities	(138,000,000)	(215,000,000)	(445,000,000)
Net change in other working capital components	(375,000,000)	(620,000,000)	(630,000,000)
Changes in other assets	19,000,000	(171,000,000)	219,000,000
Changes in other liabilities	45,000,000	17,000,000	130,000,000
Net cash provided by (used in) operating activities	2,161,000,000	1,784,000,000	2,018,000,000
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(3,123,000,000)	(2,572,000,000)	(2,956,000,000)
Expeditures for investments and acquisition of businesses, net of cash acquired	(240,000,000)	(22,000,000)	(445,000,000)
Proceeds from sale of assets	149,000,000	570,000,000	74,000,000
Proceeds from U.S. Treasury grants	0	238,000,000	0
Distributions from investments	13,000,000	152,000,000	207,000,000
Purchases of nuclear decommissioning and other trust assets	(613,000,000)	(697,000,000)	(738,000,000)
Proceeds from sales by nuclear decommissioning and other trusts	601,000,000	695,000,000	733,000,000
Decrease in restricted cash	155,000,000	329,000,000	196,000,000
Increase in restricted cash	(152,000,000)	(356,000,000)	(218,000,000)
Advances to unconsolidated affiliates	(185,000,000)	(14,000,000)	0
Decrease (increase) in notes receivable to unconsolidated affiliates, net	18,000,000	0	0
Other cash flows from investing activities	35,000,000	(12,000,000)	(11,000,000)
Net cash provided by (used in) investing activities	(3,342,000,000)	(1,689,000,000)	(3,158,000,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid	(598,000,000)	(606,000,000)	(550,000,000)
Preferred dividends paid by subsidiaries	(1,000,000)	(5,000,000)	(6,000,000)
Redemptions of preferred stock of subsidiary	0	(82,000,000)	0
Issuances of common stock	56,000,000	62,000,000	78,000,000
Repurchases of common stock	(38,000,000)	(45,000,000)	(16,000,000)
Issuances of debt (maturities greater than 90 days)	3,272,000,000	2,081,000,000	3,097,000,000
Payments on long-term debt	(2,034,000,000)	(1,788,000,000)	(1,112,000,000)
Proceeds from sale of noncontrolling interest, net of offering costs.	0	574,000,000	0
Increase (decrease) in short-term debt, net	412,000,000	256,000,000	(47,000,000)
Distributions to noncontrolling interests	(104,000,000)	(69,000,000)	(61,000,000)
Purchase of noncontrolling interests	(74,000,000)	0	(7,000,000)
Other cash flows from financing activities	(37,000,000)	(40,000,000)	(21,000,000)
Net cash provided by (used in) financing activities	854,000,000	338,000,000	1,355,000,000
Effect of exchange rate changes on cash and cash equivalents	(7,000,000)	(4,000,000)	8,000,000
Increase (decrease) in cash and cash equivalents	(334,000,000)	429,000,000	223,000,000
Cash and cash equivalents, beginning of period	904,000,000	475,000,000	252,000,000
Cash and cash equivalents, end of period	570,000,000	904,000,000	475,000,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized	536,000,000	544,000,000	458,000,000
Income tax payments, net of refunds	102,000,000	120,000,000	130,000,000
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Nuclear facility plant reclassified to regulatory asset, net of depreciation and amortization	0	512,000,000	0
Accrued capital expenditures	433,000,000	437,000,000	357,000,000
Capital expenditures recoverable by U. S. Treasury grants receivable	0	3,000,000	213,000,000
Sequestration of U.S. Treasury grants receivable	0	(23,000,000)	0
Dividends declared but not paid	166,000,000	157,000,000	150,000,000
Increase in capital lease obligations for investment in property, plant and equipment	60,000,000	0	0
Financing of build-to-suit property	61,000,000	14,000,000	0
Acquisition Of Business [Abstract]
Assets acquired	0	13,000,000	29,000,000
Cash paid, net of cash acquired	0	(11,000,000)	(19,000,000)
Liabilities assumed	0	2,000,000	10,000,000
San Diego Gas and Electric Company [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	527,000,000	435,000,000	515,000,000
Adjustments to reconcile net income to net cash provided by operating activities:
Utility depreciation and amortization	530,000,000	494,000,000	490,000,000
Deferred income taxes and investment tax credits	223,000,000	171,000,000	285,000,000
Adjustment To Utility Loss From Plant Closure	6,000,000	200,000,000	0
Fixed-price contracts and other derivatives	(6,000,000)	(8,000,000)	(12,000,000)
Other adjustments to reconcile net income to net cash provided by operating activities	(23,000,000)	(37,000,000)	(63,000,000)
Net change in other working capital components [Abstract]
Net change in accounts and notes receivable	(47,000,000)	(40,000,000)	12,000,000
Net change in due to/from affiliates, net	(10,000,000)	38,000,000	29,000,000
Net change in income taxes, net	35,000,000	(50,000,000)	85,000,000
Net change in inventories	4,000,000	(14,000,000)	0
Net change in other current assets	(16,000,000)	7,000,000	208,000,000
Net change in regulatory balancing accounts	(208,000,000)	(140,000,000)	(322,000,000)
Net change in accounts payable	(23,000,000)	50,000,000	(42,000,000)
Net change in interest payable	0	4,000,000	5,000,000
Net change in other current liabilities	(104,000,000)	(260,000,000)	(419,000,000)
Net change in other working capital components	(369,000,000)	(405,000,000)	(444,000,000)
Changes in other assets	191,000,000	(150,000,000)	201,000,000
Changes in other liabilities	18,000,000	19,000,000	129,000,000
Net cash provided by (used in) operating activities	1,097,000,000	719,000,000	1,101,000,000
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(1,100,000,000)	(978,000,000)	(1,237,000,000)
Proceeds from sale of assets	0	11,000,000	0
Purchases of nuclear decommissioning trust assets	(609,000,000)	(692,000,000)	(732,000,000)
Proceeds from sales by nuclear decommissioning trusts	601,000,000	685,000,000	723,000,000
Decrease in restricted cash	96,000,000	82,000,000	92,000,000
Increase in restricted cash	(84,000,000)	(81,000,000)	(81,000,000)
Other cash flows from investing activities	(30,000,000)	0	0
Net cash provided by (used in) investing activities	(1,126,000,000)	(973,000,000)	(1,235,000,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid	(200,000,000)	0	0
Preferred dividends paid	0	(5,000,000)	(5,000,000)
Redemptions of preferred stock of subsidiary	0	(82,000,000)	0
Issuances of long-term debt	100,000,000	450,000,000	249,000,000
Payments on long-term debt	(24,000,000)	(199,000,000)	(10,000,000)
Increase (decrease) in short-term debt, net	187,000,000	59,000,000	0
Distributions to noncontrolling interests	(53,000,000)	(26,000,000)	(40,000,000)
Other cash flows from financing activities	0	(3,000,000)	(2,000,000)
Net cash provided by (used in) financing activities	10,000,000	194,000,000	192,000,000
Increase (decrease) in cash and cash equivalents	(19,000,000)	(60,000,000)	58,000,000
Cash and cash equivalents, beginning of period	27,000,000	87,000,000	29,000,000
Cash and cash equivalents, end of period	8,000,000	27,000,000	87,000,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized	196,000,000	187,000,000	162,000,000
Income tax payments, net of refunds	(4,000,000)	84,000,000	(242,000,000)
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Nuclear facility plant reclassified to regulatory asset, net of depreciation and amortization	0	512,000,000	0
Accrued capital expenditures	217,000,000	182,000,000	153,000,000
Dividends declared but not paid	0	0	1,000,000
Increase in capital lease obligations for investment in property, plant and equipment	60,000,000	0	0
Southern California Gas Company [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	333,000,000	365,000,000	290,000,000
Adjustments to reconcile net income to net cash provided by operating activities:
Utility depreciation and amortization	431,000,000	383,000,000	362,000,000
Deferred income taxes and investment tax credits	130,000,000	117,000,000	128,000,000
Other adjustments to reconcile net income to net cash provided by operating activities	(7,000,000)	(5,000,000)	(12,000,000)
Net change in other working capital components [Abstract]
Net change in accounts and notes receivable	30,000,000	(113,000,000)	37,000,000
Net change in due to/from affiliates, net	(1,000,000)	(57,000,000)	51,000,000
Net change in income taxes, net	17,000,000	51,000,000	(83,000,000)
Net change in inventories	(113,000,000)	82,000,000	(1,000,000)
Net change in other current assets	(3,000,000)	3,000,000	(6,000,000)
Net change in regulatory balancing accounts	(109,000,000)	(58,000,000)	31,000,000
Net change in accounts payable	156,000,000	(54,000,000)	54,000,000
Net change in customer deposits	0	(1,000,000)	1,000,000
Net change in other current liabilities	3,000,000	24,000,000	(24,000,000)
Net change in other working capital components	(20,000,000)	(123,000,000)	60,000,000
Changes in other assets	(131,000,000)	(52,000,000)	14,000,000
Changes in other liabilities	29,000,000	(4,000,000)	4,000,000
Net cash provided by (used in) operating activities	765,000,000	681,000,000	846,000,000
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(1,104,000,000)	(762,000,000)	(639,000,000)
Decrease (increase) in notes receivable to unconsolidated affiliates, net	0	34,000,000	(4,000,000)
Net cash provided by (used in) investing activities	(1,104,000,000)	(728,000,000)	(643,000,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid	(100,000,000)	(50,000,000)	(250,000,000)
Preferred dividends paid	(1,000,000)	(1,000,000)	(1,000,000)
Issuances of long-term debt	747,000,000	0	348,000,000
Payments on long-term debt	(250,000,000)	0	(250,000,000)
Increase (decrease) in short-term debt, net	8,000,000	42,000,000	0
Debt issuance costs	(7,000,000)	0	(3,000,000)
Net cash provided by (used in) financing activities	397,000,000	(9,000,000)	(156,000,000)
Increase (decrease) in cash and cash equivalents	58,000,000	(56,000,000)	47,000,000
Cash and cash equivalents, beginning of period	27,000,000	83,000,000	36,000,000
Cash and cash equivalents, end of period	85,000,000	27,000,000	83,000,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized	62,000,000	65,000,000	62,000,000
Income tax payments, net of refunds	(10,000,000)	(52,000,000)	16,000,000
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures	$ 168,000,000	$ 130,000,000	$ 115,000,000

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions	Total	San Diego Gas and Electric Company [Member]	Southern California Gas Company [Member]	Preferred Stock Southern California Gas Company [Member]	Common Stock	Common Stock San Diego Gas and Electric Company [Member]	Common Stock Southern California Gas Company [Member]	Retained Earnings	Retained Earnings San Diego Gas and Electric Company [Member]	Retained Earnings Southern California Gas Company [Member]	Deferred Compensation E S O P [Member]	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) San Diego Gas and Electric Company [Member]	Accumulated Other Comprehensive Income (Loss) Southern California Gas Company [Member]	Total Shareholders' Equity	Total Shareholders' Equity San Diego Gas and Electric Company [Member]	Noncontrolling Interests [Domain]	Noncontrolling Interests [Domain] San Diego Gas and Electric Company [Member]
Equity, beginning of period at Dec. 31, 2011	$ 10,178	$ 3,841	$ 2,193	$ 22	$ 2,104	$ 1,338	$ 866	$ 8,162	$ 2,411	$ 1,326	$ (2)	$ (489)	$ (10)	$ (21)	$ 9,775	$ 3,739	$ 403	$ 102
Net income	920	515	290					865	489	290					865	489	55	26
Comprehensive income	117	(12)	3									113	(1)	3	113	(1)	4	(11)
Share-based compensation expense	44				44										44
Common stock dividends declared	(580)		(250)					(580)		(250)					(580)
Preferred stock dividends declared		(5)	1						(5)	(1)						(5)
Preferred dividends of subsidiaries	(6)							(6)							(6)
Issuance of common stock	78				78										78
Repurchases of common stock	(16)				(16)										(16)
Common stock released from ESOP	9				7						2				9
Equity contributed by noncontrolling interests	8																8
Distributions to noncontrolling interests	(62)	(41)															(62)	(41)
Purchase of noncontrolling interest in subsidiary	(7)																(7)
Call premium on preferred stock of subsidiary	0
Call premium on preferred stock		0
Equity, end of period at Dec. 31, 2012	10,683	4,298	2,235	22	2,217	1,338	866	8,441	2,895	1,365	0	(376)	(11)	(18)	10,282	4,222	401	76
Net income	1,088	435	365					1,009	411	365					1,009	411	79	24
Comprehensive income	140	19										148	2		148	2	(8)	17
Share-based compensation expense	40				40										40
Common stock dividends declared	(615)		(50)					(615)		(50)					(615)
Preferred stock dividends declared		(4)	(1)						(4)	(1)						(4)
Preferred dividends of subsidiaries	(5)							(5)							(5)
Issuance of common stock	62				62										62
Repurchases of common stock	(45)				(45)										(45)
Sale of noncontrolling interests, net of offering costs	574				135										135		439
Distributions to noncontrolling interests	(69)	(26)															(69)	(26)
Call premium on preferred stock of subsidiary	(3)							(3)							(3)
Call premium on preferred stock		(3)							(3)							(3)
Equity, end of period at Dec. 31, 2013	11,850	4,719	2,549	22	2,409	1,338	866	8,827	3,299	1,679	0	(228)	(9)	(18)	11,008	4,628	842	91
Net income	1,262	527	333					1,162	507	333					1,162	507	100	20
Comprehensive income	(290)	(1)										(269)	(3)		(269)	(3)	(21)	2
Share-based compensation expense	48				48										48
Common stock dividends declared	(649)	(200)	(100)					(649)	(200)	(100)					(649)	(200)
Preferred stock dividends declared			(1)							(1)
Preferred dividends of subsidiaries	(1)							(1)							(1)
Issuance of common stock	97				97										97
Repurchases of common stock	(38)				(38)										(38)
Equity contributed by noncontrolling interests	1																1
Distributions to noncontrolling interests	(107)	(53)															(107)	(53)
Purchase of noncontrolling interest in subsidiary	(73)				(32)										(32)		(41)
Call premium on preferred stock of subsidiary	0
Call premium on preferred stock		0
Equity, end of period at Dec. 31, 2014	$ 12,100	$ 4,992	$ 2,781	$ 22	$ 2,484	$ 1,338	$ 866	$ 9,339	$ 3,606	$ 1,911	$ 0	$ (497)	$ (12)	$ (18)	$ 11,326	$ 4,932	$ 774	$ 60

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA

12 Months Ended

Dec. 31, 2014

Significant Accounting Policies And Other Financial Data

SEMPRA ENERGY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA

PRINCIPLES OF CONSOLIDATION

Sempra Energy

Sempra Energy’s Consolidated Financial Statements include the accounts of Sempra Energy, a California-based Fortune 500 energy-services holding company, and its consolidated subsidiaries and variable interest entities (VIEs). Sempra Energy’s principal operating units are

San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas), which are separate, reportable segments;
Sempra International, which includes our Sempra South American Utilities and Sempra Mexico reportable segments; and
Sempra U.S. Gas & Power, which includes our Sempra Renewables and Sempra Natural Gas reportable segments.

We provide descriptions of each of our segments in Note 16.

We refer to SDG&E and SoCalGas collectively as the California Utilities, which do not include the utilities in our Sempra International and Sempra U.S. Gas & Power operating units. Sempra Global is the holding company for most of our subsidiaries that are not subject to California utility regulation. All references in these Notes to “Sempra International,” “Sempra U.S. Gas & Power” and their respective reportable segments are not intended to refer to any legal entity with the same or similar name.

Our Sempra Mexico segment includes the operating companies of our subsidiary, Infraestructura Energética Nova, S.A.B. de C.V. (IEnova), as well as certain holding companies and risk management activity. We discuss IEnova below under “Noncontrolling Interests – Sale of Noncontrolling Interests.”

Sempra Energy uses the equity method to account for investments in affiliated companies over which we have the ability to exercise significant influence, but not control. We discuss our investments in unconsolidated entities in Notes 3 and 4.

SDG&E

SDG&E’s Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E is the primary beneficiary, as we discuss below under “Variable Interest Entities.” SDG&E’s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy.

SoCalGas

SoCalGas’ Consolidated Financial Statements include its accounts and the de minimis accounts of inactive subsidiaries. SoCalGas’ common stock is wholly owned by Pacific Enterprises (PE), which is a wholly owned subsidiary of Sempra Energy.

BASIS OF PRESENTATION

This is a combined report of Sempra Energy, SDG&E and SoCalGas. We provide separate information for SDG&E and SoCalGas as required. References in this report to “we,” “our” and “Sempra Energy Consolidated” are to Sempra Energy and its consolidated entities, unless otherwise indicated by the context. We have eliminated intercompany accounts and transactions within the consolidated financial statements of each reporting entity.

Regulated Operations

Sempra South American Utilities has controlling interests in two electric distribution utilities in South America, Chilquinta Energía S.A. (Chilquinta Energía) in Chile and Luz del Sur S.A.A. (Luz del Sur) in Peru and their subsidiaries. Sempra Natural Gas owns Mobile Gas Service Corporation (Mobile Gas) in southwest Alabama and Willmut Gas Company (Willmut Gas) in Mississippi, and Sempra Mexico owns Ecogas México, S. de R.L. de C.V. (Ecogas) in northern Mexico, all natural gas distribution utilities. The California Utilities, Sempra Natural Gas’ Mobile Gas and Willmut Gas, and Sempra Mexico’s Ecogas prepare their financial statements in accordance with the provisions of accounting principles generally accepted in the United States of America (U.S. GAAP) governing regulated operations, as we discuss below under “Regulatory Matters.” We discuss revenue recognition at our utilities in “Revenues–Utilities” below.

Use of Estimates in the Preparation of the Financial Statements

We have prepared our Consolidated Financial Statements in conformity with U.S. GAAP. This requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, including the disclosure of contingent assets and liabilities at the date of the financial statements. Although we believe the estimates and assumptions are reasonable, actual amounts ultimately may differ significantly from those estimates.

Subsequent Events

We evaluated events and transactions that occurred after December 31, 2014 through the date the financial statements were issued, and in the opinion of management, the accompanying statements reflect all adjustments necessary for a fair presentation.

REGULATORY MATTERS

Effects of Regulation

The accounting policies of our regulated utility subsidiaries in California, SDG&E and SoCalGas, conform with U.S. GAAP for regulated enterprises and reflect the policies of the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC).

The California Utilities prepare their financial statements in accordance with U.S. GAAP provisions governing regulated operations. Under these provisions, a regulated utility records regulatory assets, which are generally costs that would otherwise be charged to expense, if it is probable that, through the ratemaking process, the utility will recover those assets from customers. To the extent that recovery is no longer probable, the related regulatory assets are written off. Regulatory liabilities generally represent amounts collected from customers in advance of the actual expenditure by the utility. If the actual expenditures are less than amounts previously collected from ratepayers, the excess would be refunded to customers, generally by reducing future rates. Regulatory liabilities may also arise from other transactions such as unrealized gains on fixed price contracts and other derivatives or certain deferred income tax benefits that are passed through to customers in future rates. In addition, the California Utilities record regulatory liabilities when the CPUC or the FERC requires a refund to be made to customers or has required that a gain or other transaction of net allowable costs be given to customers over future periods.

Determining probability of recovery requires significant judgment by management and may include, but is not limited to, consideration of:

the nature of the event giving rise to the assessment;
existing statutes and regulatory code;
legal precedents;
regulatory principles and analogous regulatory actions;
testimony presented in regulatory hearings;
proposed regulatory decisions;
final regulatory orders;
a commission-authorized mechanism established for the accumulation of costs;
status of applications for rehearings or state court appeals;
specific approval from a commission; and
historical experience.

Our other natural gas distribution utilities, Mobile Gas, Willmut Gas and Ecogas, also apply U.S. GAAP for regulated utilities to their operations.

We provide information concerning regulatory assets and liabilities below in “Regulatory Balancing Accounts” and “Regulatory Assets and Liabilities” and in Notes 13 and 14.

Regulatory Balancing Accounts

The following table summarizes our regulatory balancing accounts at December 31.

SUMMARY OF REGULATORY BALANCING ACCOUNTS AT DECEMBER 31
(Dollars in millions)
		Sempra Energy
		Consolidated				SDG&E				SoCalGas
		2014		2013		2014		2013		2014		2013
Current:
Overcollected		$	(1,730)	$	(1,077)	$	(1,195)	$	(645)	$	(535)	$	(432)
Undercollected			2,476		1,542		1,906		1,201		570		341
Net current receivable (payable)(1)			746		465		711		556		35		(91)
Noncurrent:
Undercollected(2)			173		213		―		161		173		52
Total net receivable (payable)(1)		$	919	$	678	$	711	$	717	$	208	$	(39)
(1)	At December 31, 2013, the net receivable at SDG&E and the net payable at SoCalGas are shown separately on Sempra Energy's Consolidated Balance Sheet.
(2)	Long-term undercollected balance included in Regulatory Assets (long-term) on the Consolidated Balance Sheets.

Over- and undercollected regulatory balancing accounts reflect the difference between customer billings and recorded or CPUC-authorized costs, primarily commodity costs. Amounts in the balancing accounts are recoverable (receivable) or refundable (payable) in future rates, subject to CPUC approval. Balancing account treatment eliminates the impact on earnings from variances in the covered costs from authorized amounts. Absent balancing account treatment, variations in the cost of fuel supply and certain operating and maintenance costs from amounts approved by the CPUC would increase volatility in utility earnings.

We provide additional information about regulatory matters in Notes 13, 14 and 15.

Regulatory Assets and Liabilities

We show the details of regulatory assets and liabilities in the following table, and discuss each of them separately below.

REGULATORY ASSETS (LIABILITIES) AT DECEMBER 31
(Dollars in millions)
		2014		2013
SDG&E:
Fixed-price contracts and other derivatives		$	76	$	58
Costs related to SONGS plant closure			308		303
Costs related to wildfire litigation			373		330
Deferred taxes recoverable in rates			824		788
Pension and other postretirement benefit obligations			171		106
Removal obligations(1)			(1,557)		(1,403)
Unamortized loss on reacquired debt			12		14
Environmental costs			27		20
Legacy meters			47		62
Sunrise Powerlink fire mitigation			116		115
Other			10		15
Total SDG&E			407		408
SoCalGas:
Pension and other postretirement benefit obligations			613		231
Employee benefit costs			52		51
Removal obligations(1)			(1,167)		(1,205)
Deferred taxes recoverable in rates			195		110
Unamortized loss on reacquired debt			12		14
Environmental costs			22		14
Workers’ compensation			23		26
Total SoCalGas			(250)		(759)
Other Sempra Energy:
Sempra Natural Gas			(17)		(11)
Sempra Mexico			23		8
Total Other Sempra Energy			6		(3)
Total Sempra Energy Consolidated		$	163	$	(354)
(1)	Related to obligations discussed below in “Asset Retirement Obligations.”

NET REGULATORY ASSETS (LIABILITIES) AS PRESENTED ON THE CONSOLIDATED BALANCE SHEETS AT DECEMBER 31
(Dollars in millions)
		2014						2013
		Sempra						Sempra
		Energy						Energy
		Consolidated		SDG&E		SoCalGas		Consolidated		SDG&E		SoCalGas
Current regulatory assets(1)		$	59	$	54	$	5	$	38	$	29	$	5
Noncurrent regulatory assets(2)			2,858		1,910		916		2,335		1,787		536
Current regulatory liabilities(3)			(7)		―		―		(7)		(5)		―
Noncurrent regulatory liabilities(4)			(2,747)		(1,557)		(1,171)		(2,720)		(1,403)		(1,300)
Total		$	163	$	407	$	(250)	$	(354)	$	408	$	(759)
(1)	At Sempra Energy Consolidated, included in Other Current Assets.
(2)	Excludes long-term undercollected balancing accounts at December 31, 2014 and 2013, of $173 million and $213 million at Sempra Energy, none and $161 million at SDG&E, and $173 million and $52 million at SoCalGas, respectively, recorded in Regulatory Assets (long-term).
(3)	Included in Other Current Liabilities.
(4)	At December 31, 2014 and 2013, $6 million and $97 million, respectively, at Sempra Energy Consolidated and $4 million and $95 million, respectively, at SoCalGas is included in Deferred Credits and Other.

In the tables above:

Regulatory assets arising from fixed-price contracts and other derivatives are offset by corresponding liabilities arising from purchased power and natural gas commodity and transportation contracts. The regulatory asset is increased/decreased based on changes in the fair market value of the contracts. It is also reduced as payments are made for commodities and services under these contracts.
Regulatory assets arising from the San Onofre Nuclear Generating Station (SONGS) plant closure are associated with SDG&E’s investment in SONGS as of the plant closure date and the cost of operations since Units 2 and 3 were taken offline, as we discuss further in Note 13.
Regulatory assets arising from costs related to wildfire litigation are costs in excess of liability insurance coverage and amounts recovered from third parties, as we discuss in Note 14 under “Excess Wildfire Claims Cost Recovery” and Note 15 under “SDG&E — 2007 Wildfire Litigation.”
Deferred taxes recoverable in rates are based on current regulatory ratemaking and income tax laws. SDG&E and SoCalGas expect to recover net regulatory assets related to deferred income taxes over the lives of the assets that give rise to the accumulated deferred income tax liabilities.
Regulatory assets/liabilities related to pension and other postretirement benefit obligations are offset by corresponding liabilities/assets and are being recovered in rates as the plans are funded.
Regulatory assets related to unamortized losses on reacquired debt are recovered over the remaining amortization periods of the losses on reacquired debt. These periods range from 5 months to 13 years for SDG&E and from 7 years to 11 years for SoCalGas.
Regulatory assets related to environmental costs represent the portion of our environmental liability recognized at the end of the period in excess of the amount that has been recovered through rates charged to customers. We expect this amount to be recovered in future rates as expenditures are made.
The regulatory asset related to the legacy meters removed from service and replaced under the Smart Meter Program is their undepreciated value. SDG&E is recovering this asset over a remaining 3-year period in ratebase.
The regulatory asset related to Sunrise Powerlink fire mitigation is offset by a corresponding liability for the funding of a trust to cover the mitigation costs. SDG&E expects to recover the regulatory asset in rates as the trust is funded over a remaining 55-year period. We discuss the trust further in Note 15.

FAIR VALUE MEASUREMENTS

We apply recurring fair value measurements to certain assets and liabilities, primarily nuclear decommissioning and benefit plan trust assets and other miscellaneous derivatives. “Fair value” is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price).

A fair value measurement reflects the assumptions market participants would use in pricing an asset or liability based on the best available information. These assumptions include the risk inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Also, we consider an issuer’s credit standing when measuring its liabilities at fair value.

We establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Our Level 1 financial instruments primarily consist of listed equities, U.S. government treasury securities and exchange-traded derivatives.

Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including:

quoted forward prices for commodities
time value
current market and contractual prices for the underlying instruments
volatility factors

other relevant economic measures

Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Our financial instruments in this category include domestic corporate bonds, municipal bonds and other foreign bonds, primarily in the Nuclear Decommissioning Trusts and in our pension and postretirement benefit plans, and non-exchange-traded derivatives such as interest rate instruments and over-the-counter (OTC) forwards and options.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant. Substantially all of our Level 3 financial instruments are related to congestion revenue rights (CRRs) at SDG&E.

CASH AND CASH EQUIVALENTS

Cash equivalents are highly liquid investments with maturities of three months or less at the date of purchase.

RESTRICTED CASH

Restricted cash at Sempra Energy, including amounts at SDG&E discussed below, was $40 million and $49 million at December 31, 2014 and 2013, respectively. Of this, $11 million and $24 million was classified as current and $29 million and $25 million was classified as noncurrent at December 31, 2014 and 2013, respectively.

SDG&E had $19 million and $31 million of restricted cash at December 31, 2014 and 2013, respectively, which represents funds held by a trustee for Otay Mesa VIE (see “Variable Interest Entities—Otay Mesa VIE” below) to pay certain operating costs. Of this, $8 million and $6 million was classified as current and $11 million and $25 million was classified as noncurrent at December 31, 2014 and 2013, respectively.

Sempra Mexico had restricted cash of $18 million classified as noncurrent and $12 million classified as current at December 31, 2014 and 2013, respectively, representing funds to pay for rights of way, license fees, permits, topographic surveys and other costs pursuant to trust agreements related to a pipeline project.

Sempra Renewables had restricted cash of $3 million and $6 million classified as current at December 31, 2014 and 2013, respectively, primarily representing funds held in accordance with debt agreements at Copper Mountain Solar 1.

COLLECTION ALLOWANCES

We record allowances for the collection of trade and other accounts and notes receivable, which include allowances for doubtful customer accounts and for other receivables. We show the changes in these allowances in the table below:

COLLECTION ALLOWANCES
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012
Sempra Energy Consolidated
Allowances for collection of receivables at January 1	$	29	$	31	$	29
Provisions for uncollectible accounts		25		16		21
Write-offs of uncollectible accounts		(20)		(18)		(19)
Allowances for collection of receivables at December 31	$	34	$	29	$	31
SDG&E
Allowances for collection of receivables at January 1	$	5	$	6	$	6
Provisions for uncollectible accounts		7		4		5
Write-offs of uncollectible accounts		(5)		(5)		(5)
Allowances for collection of receivables at December 31	$	7	$	5	$	6
SoCalGas
Allowances for collection of receivables at January 1	$	12	$	14	$	12
Provisions for uncollectible accounts		15		7		12
Write-offs of uncollectible accounts		(10)		(9)		(10)
Allowances for collection of receivables at December 31	$	17	$	12	$	14

We evaluate accounts receivable collectibility using a combination of factors, including past due status based on contractual terms, trends in write-offs, the age of the receivable, counterparty creditworthiness, economic conditions and specific events, such as bankruptcies. Adjustments to the allowance for doubtful accounts are made when necessary based on the results of analysis, the aging of receivables, and historical and industry trends.

We write off accounts receivable in the period in which we deem the receivable to be uncollectible. We record recoveries of accounts receivable previously written off when it is known that they will be received.

INVENTORIES

The California Utilities value 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. Materials and supplies at the California Utilities are generally valued at the lower of average cost or market.

Sempra South American Utilities, Sempra Mexico and Sempra Natural Gas value natural gas inventory and materials and supplies at the lower of average cost or market. Sempra Mexico and Sempra Natural Gas value liquefied natural gas (LNG) inventory by the first-in first-out method.

The components of inventories by segment are as follows:

INVENTORY BALANCES AT DECEMBER 31
(Dollars in millions)
	Natural Gas					LNG			Materials and supplies				Total
	2014		2013			2014	2013		2014		2013		2014		2013
SDG&E	$	8	$	3	$	―	$	―	$	65	$	83	$	73	$	86
SoCalGas		155		42		―		―		26		27		181		69
Sempra South American Utilities		―		―		―		―		33		40		33		40
Sempra Mexico		―		―		9		3		9		9		18		12
Sempra Renewables		―		―		―		―		2		2		2		2
Sempra Natural Gas		83		68		5		5		1		5		89		78
Sempra Energy Consolidated	$	246	$	113	$	14	$	8	$	136	$	166	$	396	$	287

U.S. TREASURY GRANTS

At December 31, 2012, we had receivables for U.S. Treasury grants based on eligible costs at certain of our renewable generating facilities. During the first quarter of 2013, the federal government imposed automatic federal budget cuts, known as “sequestration,” as required by The Budget Control Act of 2011. As a result, we recorded a reduction to our grants receivable of $23 million and a reversal of income tax benefit of $5 million during the first quarter of 2013. Later in 2013, we received $238 million in cash for the remaining grants receivable.

INCOME TAXES

Income tax expense includes current and deferred income taxes from operations during the year. We record deferred income taxes for temporary differences between the book and the tax basis of assets and liabilities. Investment tax credits from prior years are amortized to income by the California Utilities over the estimated service lives of the properties as required by the CPUC. At our other businesses, we reduce the book basis of the related asset by the amount of investment tax credit earned. At Sempra Renewables, production tax credits are recognized in income tax expense as earned.

The California Utilities, Mobile Gas and Willmut Gas recognize

regulatory assets to offset deferred tax liabilities if it is probable that the amounts will be recovered from customers; and

regulatory liabilities to offset deferred tax assets if it is probable that the amounts will be returned to customers.

We currently do not record deferred income taxes for basis differences between financial statement and income tax investment amounts in non-U.S. subsidiaries and non-U.S. joint ventures because their cumulative undistributed earnings are indefinitely reinvested.

When there are uncertainties related to potential income tax benefits, in order to qualify for recognition, the position we take has to have at least a “more likely than not” chance of being sustained (based on the position’s technical merits) upon challenge by the respective authorities. The term “more likely than not” means a likelihood of more than 50 percent. Otherwise, we may not recognize any of the potential tax benefit associated with the position. We recognize a benefit for a tax position that meets the “more likely than not” criterion at the largest amount of tax benefit that is greater than 50 percent likely of being realized upon its effective resolution.

Unrecognized tax benefits involve management’s judgment regarding the likelihood of the benefit being sustained. The final resolution of uncertain tax positions could result in adjustments to recorded amounts and may affect our results of operations, financial position and cash flows.

We provide additional information about income taxes in Note 6.

GREENHOUSE GAS ALLOWANCES

The California Utilities, Sempra Mexico and Sempra Natural Gas are required by California Assembly Bill 32 to acquire greenhouse gas allowances for every metric ton of carbon dioxide equivalent emitted into the atmosphere during electric generation and natural gas transportation. We record greenhouse gas allowances at the lower of weighted average cost or market, and include them in Other Current Assets and Sundry on the Consolidated Balance Sheets based on the dates that they are required to be surrendered. We measure the compliance obligation, which is based on emissions, at the carrying value of allowances held plus the fair value of additional allowances necessary to satisfy the obligation. We include the obligation in Other Current Liabilities and Deferred Credits on the Consolidated Balance Sheets based on the dates that the allowances will be surrendered. We remove the assets and liabilities from the balance sheets as the allowances are surrendered.

The California Utilities expect that costs and revenues associated with the greenhouse gas program will be recorded through Regulatory Balancing Accounts on the Consolidated Balance Sheets.

RENEWABLE ENERGY CERTIFICATES

Renewable energy certificates (RECs) represent property rights established by governmental agencies for the environmental, social, and other nonpower qualities of renewable electricity generation. A REC, and its associated attributes and benefits, can be sold separately from the underlying physical electricity associated with a renewable-based generation source in certain markets.

Retail sellers of electricity obtain RECs through renewable power purchase agreements, internal generation or separate purchases in the market to comply with renewable portfolio standards established by the governmental agencies. RECs are the mechanism used to verify renewable portfolio standards compliance. The cost of RECs is recorded in Cost of Electric Fuel and Purchased Power, which is recoverable in rates, on the Consolidated Statements of Operations.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment primarily represents the buildings, equipment and other facilities used by the California Utilities to provide natural gas and electric utility services, and by Sempra International and Sempra U.S. Gas & Power, including construction work in progress at these operating units. Property, plant and equipment also includes lease improvements and other equipment at Parent, as well as property acquired under a build-to-suit lease included in construction work in progress.

Our plant costs include

labor
materials and contract services

expenditures for replacement parts incurred during a major maintenance outage of a generating plant

In addition, the cost of our utility plant and selected non-utility regulated projects at Sempra Mexico and Sempra Natural Gas includes an allowance for funds used during construction (AFUDC). We discuss AFUDC below. The cost of non-utility plant includes capitalized interest.

Maintenance costs are expensed as incurred. The cost of most retired depreciable utility plant minus salvage value is charged to accumulated depreciation.

We discuss assets pledged as security for loans in Note 5.

PROPERTY, PLANT AND EQUIPMENT BY MAJOR FUNCTIONAL CATEGORY
(Dollars in millions)
		Property, plant				Depreciation rates for
		and equipment at				years ended
		December 31,				December 31,
		2014		2013		2014		2013		2012
SDG&E:
Natural gas operations		$	1,535	$	1,454	2.72	%	2.35	%	3.20	%
Electric distribution			5,795		5,492	3.79		3.36		4.15
Electric transmission(1)			4,525		3,932	2.59		2.58		2.63
Electric generation(2)			1,862		1,768	3.86		3.76		4.68
Other electric(3)			851		759	7.09		7.58		7.92
Construction work in progress(1)			910		941	NA		NA		NA
Total SDG&E			15,478		14,346
SoCalGas:
Natural gas operations(4)			12,098		11,394	3.89		3.70		3.74
Other non-utility			120		118	2.88		1.56		1.36
Construction work in progress			668		319	NA		NA		NA
Total SoCalGas			12,886		11,831

						Estimated			Weighted average
Other operating units and parent(5):						useful lives			useful life
Land and land rights			290		276	26 to 55 years(6)			41
Machinery and equipment:
Utility electric distribution operations			1,434		1,440	10 to 46 years			41
Generating plants			596		993	30 to 50 years			32
LNG terminals			1,122		2,094	5 to 43 years			43
Pipelines and storage			2,003		1,638	3 to 55 years			46
Other			213		212	1 to 50 years			13
Construction work in progress			1,053		1,283	NA			NA
Other			332		294	1 to 80 years			27
			7,043		8,230
Total Sempra Energy Consolidated		$	35,407	$	34,407
(1)	At December 31, 2014, includes $365 million in electric transmission assets and $12 million in construction work in progress related to SDG&E's 91-percent interest in the Southwest Powerlink (SWPL) transmission line, jointly owned by SDG&E with other utilities. SDG&E, and each of the other owners, holds its undivided interest as a tenant in common in the property. Each owner is responsible for its share of the project and participates in decisions concerning operations and capital expenditures.
(2)	Includes capital lease assets of $243 million and $183 million at December 31, 2014 and 2013, respectively, primarily related to variable interest entities of which SDG&E is not the primary beneficiary.
(3)	Includes capital lease assets of $19 million and $23 million at December 31, 2014 and 2013, respectively.
(4)	Includes capital lease assets of $27 million and $33 million at December 31, 2014 and 2013, respectively.
(5)	December 31, 2014 balances include $150 million, $191 million and $24 million of utility plant, primarily pipelines and other distribution assets, at Ecogas, Mobile Gas and Willmut Gas, respectively. December 31, 2013 balances include $155 million, $180 million and $22 million of utility plant, primarily pipelines and other distribution assets, at Ecogas, Mobile Gas and Willmut Gas, respectively.
(6)	Estimated useful lives are for land rights.

Depreciation expense is based on the straight-line method over the useful lives of the assets or, for the California Utilities, a shorter period prescribed by the CPUC. Depreciation expense is computed using the straight-line method over the asset’s estimated original composite useful life, the CPUC-prescribed period or the remaining term of the site leases, whichever is shortest. Depreciation expense for Sempra Energy for the years ended December 31, 2014, 2013 and 2012, was $1,146 million, $1,103 million and $1,080 million, respectively. Depreciation expense for SDG&E for the years ended December 31, 2014, 2013 and 2012, was $530 million, $494 million and $490 million, respectively. Depreciation expense for SoCalGas for the years ended December 31, 2014, 2013 and 2012, was $431 million, $383 million and $362 million, respectively.

Accumulated depreciation on our Consolidated Balance Sheets is as follows:

ACCUMULATED DEPRECIATION
(Dollars in millions)
		December 31,
		2014		2013
SDG&E:
Accumulated depreciation:
Electric(1)		$	3,192	$	2,861
Natural gas			668		639
Total SDG&E			3,860		3,500
SoCalGas:
Accumulated depreciation of natural gas utility plant in service(2)			4,555		4,279
Accumulated depreciation – other non-utility			87		85
Total SoCalGas			4,642		4,364
Other operating units and parent:
Accumulated depreciation – other(3)			824		938
Accumulated depreciation of utility electric distribution operations			179		145
			1,003		1,083
Total Sempra Energy Consolidated		$	9,505	$	8,947
(1)	Includes accumulated depreciation for assets under capital lease of $28 million and $26 million at December 31, 2014 and 2013, respectively. Includes $211 million at December 31, 2014 related to SDG&E's 91-percent interest in the SWPL transmission line, jointly owned by SDG&E and other utilities.
(2)	Includes accumulated depreciation for assets under capital lease of $27 million and $31 million at December 31, 2014 and 2013, respectively.
(3)	December 31, 2014 balances include $37 million, $29 million and $2 million of accumulated depreciation for utility plant at Ecogas, Mobile Gas and Willmut Gas, respectively. December 31, 2013 balances include $38 million, $25 million and $2 million of accumulated depreciation for utility plant at Ecogas, Mobile Gas and Willmut Gas, respectively.

The California Utilities finance their construction projects with borrowed funds and equity funds. The CPUC and the FERC allow the recovery of the cost of these funds by the capitalization of AFUDC, calculated using rates authorized by the CPUC and the FERC, as a cost component of property, plant and equipment. The California Utilities earn a return on the capitalized AFUDC after the utility property is placed in service and recover the AFUDC from their customers over the expected useful lives of the assets.

Pipeline projects currently under construction by Sempra Mexico and Sempra Natural Gas that are both subject to certain regulation and meet U.S. GAAP regulatory accounting requirements record the impact of AFUDC related to equity. Beginning in the fourth quarter of 2013, Sempra Mexico began recording AFUDC equity for its Sonora Pipeline project, totaling $43 million and $19 million for the years ended December 31, 2014 and 2013, respectively.

Sempra International and Sempra U.S. Gas & Power businesses capitalize interest costs incurred to finance capital projects and interest on equity method investments that have not commenced planned principal operations. The California Utilities also capitalize certain interest costs.

CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012
Sempra Energy Consolidated:
AFUDC related to debt	$	22	$	22	$	38
AFUDC related to equity		106		75		96
Other capitalized financing costs		39		22		52
Total Sempra Energy Consolidated	$	167	$	119	$	186
SDG&E:
AFUDC related to debt	$	15	$	16	$	30
AFUDC related to equity		37		39		71
Total SDG&E	$	52	$	55	$	101
SoCalGas:
AFUDC related to debt	$	7	$	6	$	8
AFUDC related to equity		26		17		25
Other capitalized financing costs		1		1		1
Total SoCalGas	$	34	$	24	$	34

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill is the excess of the purchase price over the fair value of the identifiable net assets of acquired companies measured at the time of acquisition. Goodwill is not amortized but is tested for impairment annually on October 1 or whenever events or changes in circumstances necessitate an evaluation. Impairment of goodwill occurs when the carrying amount (book value) of goodwill exceeds its implied fair value. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, and the book value of goodwill is greater than its fair value on the test date, we record a goodwill impairment loss.

For our annual goodwill impairment testing, under current U.S. GAAP guidance we have the option to first make a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before applying the two-step, quantitative goodwill impairment test. If we elect to perform the qualitative assessment, we evaluate relevant events and circumstances, including but not limited to, macroeconomic conditions, industry and market considerations, cost factors, changes in key personnel and the overall financial performance of the reporting unit. If, after assessing these qualitative factors, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we perform the two-step goodwill impairment test. When we perform the two-step, quantitative goodwill impairment test, we exercise judgment to develop estimates of the fair value of the reporting unit and the corresponding goodwill. Our fair value estimates are developed from the perspective of a knowledgeable market participant. We consider observable transactions in the marketplace for similar investments, if available, as well as an income-based approach such as discounted cash flow analysis. A discounted cash flow analysis may be based directly on anticipated future revenues and expenses and may be performed based on free cash flows generated within the reporting unit. Critical assumptions that affect our estimates of fair value may include

consideration of market transactions
future cash flows
the appropriate risk-adjusted discount rate
country risk

entity risk

Goodwill included on the Sempra Energy Consolidated Balance Sheets is as follows:

GOODWILL
(Dollars in millions)
			Sempra
		South American			Sempra		Sempra
			Utilities		Mexico		Natural Gas		Total
Balance at December 31, 2012		$	1,014	$	25	$	72	$	1,111
Foreign currency translation(1)			(87)		―		―		(87)
Balance at December 31, 2013			927		25		72		1,024
Foreign currency translation(1)			(93)		―		―		(93)
Balance at December 31, 2014		$	834	$	25	$	72	$	931
(1)	We record the offset of this fluctuation to other comprehensive income.

We provide additional information concerning goodwill related to our equity method investments and the impairment of investments in unconsolidated subsidiaries in Note 4.

Other Intangible Assets

Other Intangible Assets primarily represent storage and development rights related to the natural gas storage facilities of Bay Gas Storage Company, Ltd. (Bay Gas) and Mississippi Hub, LLC (Mississippi Hub), which are being amortized over their estimated useful lives as shown in the table below.

Other Intangible Assets included on the Sempra Energy Consolidated Balance Sheets are as follows:

OTHER INTANGIBLE ASSETS
(Dollars in millions)
	Amortization period	December 31,
	(years)	2014		2013
Storage rights	46	$	138	$	138
Development rights	50		322		322
Other	10 years to indefinite		18		19
			478		479
Less accumulated amortization:
Storage rights			(19)		(16)
Development rights			(40)		(34)
Other			(4)		(3)
			(63)		(53)
		$	415	$	426

Amortization expense for such intangible assets was $10 million in each of 2014, 2013 and 2012. We estimate the amortization expense for the next five years to be $10 million per year.

LONG-LIVED ASSETS

We test long-lived assets for recoverability whenever events or changes in circumstances have occurred that may affect the recoverability or the estimated useful lives of long-lived assets. Long-lived assets include intangible assets subject to amortization, but do not include investments in unconsolidated subsidiaries. Events or changes in circumstances that indicate that the carrying amount of a long-lived asset may not be recoverable may include

significant decreases in the market price of an asset
a significant adverse change in the extent or manner in which we use an asset or in its physical condition
a significant adverse change in legal or regulatory factors or in the business climate that could affect the value of an asset
a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection of continuing losses associated with the use of a long-lived asset

a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life

Impairment of long-lived assets occurs when the estimated future undiscounted cash flows are less than the carrying amount of the assets. If that comparison indicates that the assets’ carrying value may not be recoverable, the impairment is measured based on the difference between the carrying amount and the fair value of the assets. This evaluation is performed at the lowest level for which separately identifiable cash flows exist.

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

Tolling Agreements

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 impact 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 a qualitative approach in which we consider 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, SDG&E and Sempra Energy consolidate the entity that owns the facility as a VIE, as we discuss below.

Otay Mesa VIE

SDG&E has an agreement to purchase power generated at the Otay Mesa Energy Center (OMEC), a 605-megawatt (MW) generating facility. 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, which we refer to as the put option.

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. Accordingly, SDG&E and Sempra Energy have consolidated Otay Mesa VIE. Otay Mesa VIE’s equity of $60 million at December 31, 2014 and $91 million at December 31, 2013 is included on the Consolidated Balance Sheets in Other Noncontrolling Interests for Sempra Energy and in Noncontrolling Interest for SDG&E.

OMEC LLC has a loan outstanding of $325 million at December 31, 2014, 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 9.

Cameron LNG Holdings

Sempra Energy’s equity-method investment in Cameron LNG Holdings is considered to be a VIE generally due to contractual provisions that transfer certain risks to customers. Sempra Energy is not the primary beneficiary because we do not have the power to direct the most significant activities of Cameron LNG Holdings. We will continue to evaluate Cameron LNG Holdings for any changes that may impact our determination of the primary beneficiary. The carrying value of our investment in Cameron LNG holdings at December 31, 2014 was $1,007 million, as we discuss in Note 4. Our maximum exposure to loss includes the carrying value of our investment and the guarantees discussed in Note 4.

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 the respective entities 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 the one relating to Otay Mesa VIE mentioned above, result in SDG&E being the primary beneficiary at December 31, 2014. 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. In addition, 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 operating units also enter into arrangements which could include variable interests. We evaluate these arrangements and applicable entities based upon the qualitative and quantitative analyses described above. Certain of these entities are service companies that are VIEs. As the primary beneficiary of these service companies, we consolidate them. In all other cases, we have determined that these contracts are not variable interests in a VIE and therefore are not subject to the U.S. GAAP requirements concerning the consolidation of VIEs.

The Consolidated Financial Statements of Sempra Energy and SDG&E include the following amounts associated with Otay Mesa VIE. The amounts are net of eliminations of transactions between SDG&E and Otay Mesa VIE. The financial statements of other consolidated VIEs are not material to the financial statements of Sempra Energy. The captions on the tables below correspond to SDG&E’s Consolidated Balance Sheets and Consolidated Statements of Operations.

AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
			December 31,
			2014		2013
Cash and cash equivalents			$	5	$	17
Restricted cash				8		6
Inventories				3		2
Other				1		1
Total current assets				17		26
Restricted cash				11		25
Sundry				3		4
Property, plant and equipment, net				410		438
Total assets			$	441	$	493

Current portion of long-term debt			$	10	$	10
Fixed-price contracts and other derivatives				16		16
Other				3		19
Total current liabilities				29		45
Long-term debt				315		325
Fixed-price contracts and other derivatives				31		39
Deferred credits and other				6		(7)
Other noncontrolling interest				60		91
Total liabilities and equity			$	441	$	493

	Years ended December 31,
	2014		2013		2012
Operating expenses
Cost of electric fuel and purchased power	$	(83)	$	(91)	$	(83)
Operation and maintenance		19		24		19
Depreciation and amortization		27		28		26
Total operating expenses		(37)		(39)		(38)
Operating income		37		39		38
Other expense, net		―		―		(1)
Interest expense		(17)		(15)		(11)
Income before income taxes/Net income		20		24		26
Earnings attributable to noncontrolling interest		(20)		(24)		(26)
Earnings	$	―	$	―	$	―

ASSET RETIREMENT OBLIGATIONS

For tangible long-lived assets, we record asset retirement obligations for the present value of liabilities of future costs expected to be incurred when assets are retired from service, if the retirement process is legally required and if a reasonable estimate of fair value can be made. We also record a liability if a legal obligation to perform an asset retirement exists and can be reasonably estimated, but performance is conditional upon a future event. We record the estimated retirement cost over the life of the related asset by depreciating the present value of the obligation (measured at the time of the asset’s acquisition) and accreting the discount until the liability is settled. Rate-regulated entities, including the California Utilities, record regulatory assets or liabilities as a result of the timing difference between the recognition of costs in accordance with U.S. GAAP and costs recovered through the rate-making process.

We have recorded asset retirement obligations related to various assets, including:

SDG&E and SoCalGas

fuel and storage tanks
natural gas distribution systems
hazardous waste storage facilities

asbestos-containing construction materials

SDG&E

decommissioning of nuclear power facilities
electric distribution and transmission systems
site restoration of a former power plant

power generation plant (natural gas)

SoCalGas

natural gas transmission pipelines

underground natural gas storage facilities and wells

Sempra Mexico

power generation plant (natural gas)
natural gas distribution and transportation systems
LNG terminal

Sempra Renewables

certain power generation plants (solar)

Sempra Natural Gas

power generation plant (natural gas)
natural gas distribution and transportation systems

underground natural gas storage facilities

The changes in asset retirement obligations are as follows:

CHANGES IN ASSET RETIREMENT OBLIGATIONS
(Dollars in millions)
		Sempra Energy
		Consolidated				SDG&E				SoCalGas
		2014		2013		2014		2013		2014		2013
Balance as of January 1(1)		$	2,152	$	2,056	$	913	$	741	$	1,199	$	1,253
Accretion expense			97		97		43		45		52		49
Liabilities incurred			4		4		―		―		―		―
Reclassification(2)			(6)		―		―		―		―		―
Payments			(29)		(49)		(29)		(48)		―		―
Revisions, GRC-related(3)			―		(135)		―		(30)		―		(105)
Revisions, other(4)(5)			(28)		179		(54)		205		25		2
Balance at December 31(1)		$	2,190	$	2,152	$	873	$	913	$	1,276	$	1,199
(1)	The current portions of the obligations are included in Other Current Liabilities on the Consolidated Balance Sheets.
(2)	Reclassification to liability held for sale - asset retirement obligation which is included in Other Current Liabilities on the Consolidated Balance Sheets, as we discuss in "Asset Held for Sale" in Note 3.
(3)	The decreases in asset retirement obligations in 2013 at SDG&E and SoCalGas are due to revised estimates related to the 2012 General Rate Case (GRC) that received final approval in May 2013. At SDG&E, these revisions included increases in asset service lives ranging from 2 percent to 7 percent, and lower estimated cost of removal. At SoCalGas, the decrease includes increases in asset service lives ranging from 4 percent to 6 percent, partially offset by a higher estimated cost of removal.
(4)	The decrease in asset retirement obligations in 2014 at SDG&E is due to revised estimates in an updated decommissioning cost study for the San Onofre Nuclear Generating Station, which we discuss in Note 13. The increase in asset retirement obligations in 2014 at SoCalGas is related to a change in estimates.
(5)	The increase in asset retirement obligations in 2013 at SDG&E is due to revised estimates recorded in the third quarter of 2013 related to the early decommissioning of SONGS Units 2 and 3 (see Note 13).

CONTINGENCIES

We accrue losses for the estimated impacts of various conditions, situations or circumstances involving uncertain outcomes. For loss contingencies, we accrue the loss if an event has occurred on or before the balance sheet date and:

information available through the date we file our financial statements indicates it is probable that a loss has been incurred, given the likelihood of uncertain future events; and

the amount of the loss can be reasonably estimated.

We do not accrue contingencies that might result in gains. We continuously assess contingencies for litigation claims, environmental remediation and other events.

LEGAL FEES

Legal fees that are associated with a past event for which a liability has been recorded are accrued when it is probable that fees also will be incurred.

COMPREHENSIVE INCOME

Comprehensive income includes all changes in the equity of a business enterprise (except those resulting from investments by owners and distributions to owners), including:

foreign currency translation adjustments
changes in unamortized net actuarial gain or loss and prior service cost related to pension and other postretirement benefits plans
unrealized gains or losses on available-for-sale securities

certain hedging activities

The Consolidated Statements of Comprehensive Income show the changes in the components of other comprehensive income (loss) (OCI), including the amounts attributable to noncontrolling interests. The following tables present the changes in Accumulated Other Comprehensive Income (Loss) (AOCI) by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to noncontrolling interests, for the years ended December 31:

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
				Pension and other
				postretirement benefits
		Foreign								Total
		currency		Unamortized		Unamortized				accumulated other
		translation		net actuarial		prior service		Financial		comprehensive
		adjustments		gain (loss)		credit (cost)		instruments		income (loss)
2014:
Balance as of December 31, 2013		$	(129)	$	(73)	$	―	$	(26)	$	(228)
Other comprehensive loss before
reclassifications			(193)		(24)		(2)		(70)		(289)
Amounts reclassified from accumulated other
comprehensive income			―		14		―		6		20
Net other comprehensive loss			(193)		(10)		(2)		(64)		(269)
Balance as of December 31, 2014		$	(322)	$	(83)	$	(2)	$	(90)	$	(497)
2013:
Balance as of December 31, 2012		$	(240)	$	(102)	$	1	$	(35)	$	(376)
Other comprehensive (loss) income before
reclassifications			(159)		21		(1)		2		(137)
Amounts reclassified from accumulated other
comprehensive income			270	⁽²⁾	8		―		7		285
Net other comprehensive income (loss)			111		29		(1)		9		148
Balance as of December 31, 2013		$	(129)	$	(73)	$	―	$	(26)	$	(228)
2012:
Balance as of December 31, 2011		$	(359)	$	(100)	$	1	$	(31)	$	(489)
Other comprehensive income (loss) before
reclassifications			119		(13)		―		(10)		96
Amounts reclassified from accumulated other
comprehensive income			―		11		―		6		17
Net other comprehensive income (loss)			119		(2)		―		(4)		113
Balance as of December 31, 2012		$	(240)	$	(102)	$	1	$	(35)	$	(376)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.
(2)	Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4.

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SAN DIEGO GAS & ELECTRIC COMPANY
(Dollars in millions)
		Pension and other
		postretirement benefits
						Total
		Unamortized		Unamortized		accumulated other
		net actuarial		prior service		comprehensive
		gain (loss)		credit		income (loss)
2014:
Balance as of December 31, 2013		$	(10)	$	1	$	(9)
Other comprehensive loss before
reclassifications			(5)		―		(5)
Amounts reclassified from accumulated other
comprehensive income			2		―		2
Net other comprehensive loss			(3)		―		(3)
Balance as of December 31, 2014		$	(13)	$	1	$	(12)
2013:
Balance as of December 31, 2012		$	(12)	$	1	$	(11)
Amounts reclassified from accumulated other
comprehensive income			2		―		2
Net other comprehensive income			2		―		2
Balance as of December 31, 2013		$	(10)	$	1	$	(9)
2012:
Balance as of December 31, 2011		$	(11)	$	1	$	(10)
Other comprehensive loss before
reclassifications			(2)		―		(2)
Amounts reclassified from accumulated other
comprehensive loss			1		―		1
Net other comprehensive loss			(1)		―		(1)
Balance as of December 31, 2012		$	(12)	$	1	$	(11)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SOUTHERN CALIFORNIA GAS COMPANY
(Dollars in millions)
		Pension and other
		postretirement benefits
								Total
		Unamortized		Unamortized				accumulated other
		net actuarial		prior service		Financial		comprehensive
		gain (loss)		credit		instruments		income (loss)
2014:
Balance as of December 31, 2013		$	(5)	$	1	$	(14)	$	(18)
Other comprehensive loss before
reclassifications			(3)		―		―		(3)
Amounts reclassified from accumulated other
comprehensive income			3		―		―		3
Net other comprehensive income			―		―		―		―
Balance as of December 31, 2014		$	(5)	$	1	$	(14)	$	(18)
2013:
Balance as of December 31, 2012		$	(4)	$	1	$	(15)	$	(18)
Other comprehensive loss before
reclassifications			(2)		―		―		(2)
Amounts reclassified from accumulated other
comprehensive income			1		―		1		2
Net other comprehensive (loss) income			(1)		―		1		―
Balance as of December 31, 2013		$	(5)	$	1	$	(14)	$	(18)
2012:
Balance as of December 31, 2011		$	(6)	$	1	$	(16)	$	(21)
Other comprehensive income before
reclassifications			1		―		―		1
Amounts reclassified from accumulated other
comprehensive income			1		―		1		2
Net other comprehensive income			2		―		1		3
Balance as of December 31, 2012		$	(4)	$	1	$	(15)	$	(18)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
		Amounts reclassified
Details about accumulated		from accumulated other						Affected line item
other comprehensive income (loss) components		comprehensive income (loss)						on consolidated statement of operations
		Years ended December 31,
		2014		2013		2012
Sempra Energy Consolidated:
Foreign currency translation adjustments		$	―	$	270	$	―	Equity Earnings, Net of Income Tax(1)

Financial instruments:
Interest rate and foreign exchange instruments		$	21	$	11	$	9	Interest Expense
Interest rate instruments			(3)		―		―	Gain on Sale of Equity Interests and Assets
Interest rate instruments			10		10		6	Equity Earnings, Before Income Tax
Commodity contracts not subject to								Revenues: Energy-Related
	rate recovery		(8)		(1)		―	Businesses
Total before income tax			20		20		15
			(3)		(4)		(4)	Income Tax Expense
Net of income tax			17		16		11
			(11)		(9)		(5)	Earnings Attributable to Noncontrolling Interests
		$	6	$	7	$	6

Pension and other postretirement benefits:
Net actuarial gain		$	―	$	3	$	10	(2)
Amortization of actuarial loss			23		10		9	(2)
			(9)		(5)		(8)	Income Tax Expense
Net of income tax		$	14	$	8	$	11

Total reclassifications for the period, net of tax		$	20	$	285		17
SDG&E:
Financial instruments:
Interest rate instruments		$	11	$	9	$	5	Interest Expense
			(11)		(9)		(5)	Earnings Attributable to Noncontrolling Interest
		$	―	$	―	$	―

Pension and other postretirement benefits:
Net actuarial gain		$	―	$	2	$	1	(2)
Amortization of actuarial loss			3		1		1	(2)
			(1)		(1)		(1)	Income Tax Expense
Net of income tax		$	2	$	2	$	1

Total reclassifications for the period, net of tax		$	2	$	2	$	1
SoCalGas:
Financial instruments:
Interest rate instruments		$	1	$	1	$	2	Interest Expense
			(1)		―		(1)	Income Tax Expense
Net of income tax		$	―	$	1	$	1

Pension and other postretirement benefits:
Net actuarial gain		$	―	$	―	$	1	(2)
Amortization of actuarial loss			5		1		1	(2)
			(2)		―		(1)	Income Tax Expense
Net of income tax		$	3	$	1	$	1

Total reclassifications for the period, net of tax		$	3	$	2	$	2
(1)	Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4.
(2)	Amounts are included in the computation of net periodic benefit cost (see "Net Periodic Benefit Cost, 2012 - 2014" in Note 7).

NONCONTROLLING INTERESTS

Ownership interests that are held by owners other than Sempra Energy and SDG&E in subsidiaries or entities consolidated by them are accounted for and reported as noncontrolling interests. As a result, noncontrolling interests are reported as a separate component of equity on the Consolidated Balance Sheets. Earnings/losses attributable to the noncontrolling interests are separately identified on the Consolidated Statements of Operations, and net income/loss and comprehensive income/loss attributable to the noncontrolling interests are separately identified on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Changes in Equity.

Sale of Noncontrolling Interests

In the first quarter of 2013, Sempra Energy’s subsidiary, IEnova, completed a private offering in the U.S. and outside of Mexico and a concurrent public offering in Mexico of common stock. The aggregate shares of common stock sold in the offerings represent approximately 18.9 percent of IEnova’s outstanding ownership interest. IEnova is reported within the Sempra Mexico reportable segment.

The proceeds from the offerings, net of offering costs, were approximately $574 million in U.S. dollar equivalent. IEnova has used the net proceeds of the offerings primarily for general corporate purposes, and for the funding of its investments and ongoing expansion plans. Consistent with applicable accounting guidance, changes in noncontrolling interests that do not result in a change of control are accounted for as equity transactions. When there are changes in noncontrolling interests of a subsidiary that do not result in a change of control, any difference between carrying value and fair value related to the change in ownership is recorded as an adjustment to shareholders’ equity. As a result of the offerings, we recorded an increase in Sempra Energy’s shareholders’ equity of $135 million in the first quarter of 2013 for the sale of IEnova shares to noncontrolling interests.

IEnova is a separate legal entity, formerly known as Sempra México, S.A. de C.V., comprised primarily of Sempra Energy’s operations in Mexico. IEnova is included within our Sempra Mexico reportable segment, but is not the same in its entirety as the reportable segment. In addition to the IEnova operating companies, the Sempra Mexico segment includes, among other things, certain holding companies and risk management activity. Also, IEnova’s financial results are reported in Mexico under International Financial Reporting Standards (IFRS), as required by the Mexican Stock Exchange (La Bolsa Mexicana de Valores, S.A.B. de C.V., or BMV) where the shares are traded under the symbol IENOVA.

The private offering was exempt from registration under the U.S. Securities Act of 1933, as amended (the Securities Act), and shares in the private offering were offered and sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside of the United States, in accordance with Regulation S under the Securities Act. The shares were not registered under the Securities Act or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable securities laws.

Purchase of Noncontrolling Interests

On December 10, 2014, we purchased 18,625,594 Luz del Sur shares for $74 million, increasing Sempra South American Utilities’ ownership from 79.8 percent to 83.6 percent.

Chilquinta Energía owned 85 percent of Luzlinares S.A. (Luzlinares) through October 31, 2012. On November 26, 2012, Chilquinta Energía purchased the remaining 15-percent ownership interest in Luzlinares for $7 million in cash.

Preferred Stock

The preferred stock at SoCalGas is presented at Sempra Energy as a noncontrolling interest at December 31, 2014 and 2013. The preferred stock of SDG&E at December 31, 2012 was contingently redeemable preferred stock and was fully redeemed in October 2013, as we discuss in Note 11. At Sempra Energy, the preferred stock dividends of SDG&E and SoCalGas are charges against income related to noncontrolling interests. We provide additional information concerning preferred stock in Note 11.

Other Noncontrolling Interests

At December 31, 2014 and 2013, we reported the following noncontrolling ownership interests held by others (not including preferred shareholders) recorded in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Consolidated Balance Sheets:

OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
		Percent ownership held by others				December 31,
		2014		2013		2014		2013
SDG&E:
Otay Mesa VIE		100	%	100	%	$	60	$	91
Sempra South American Utilities:
Chilquinta Energía subsidiaries(1)		23.6 - 43.4		24.4 - 43.4			23		27
Luz del Sur		16.4		20.2			177		222
Tecsur		9.8		9.8			4		3
Sempra Mexico:
IEnova, S.A.B. de C.V.		18.9		18.9			452		442
Sempra Natural Gas:
Bay Gas Storage Company, Ltd.		9.1		9.1			23		22
Liberty Gas Storage, LLC		25.0		25.0			14		14
Southern Gas Transmission Company		49.0		49.0			1		1
Total Sempra Energy						$	754	$	822
(1)	Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.

REVENUES

Utilities

Our California Utilities generate revenues primarily from deliveries to their customers of electricity by SDG&E and natural gas by both SoCalGas and SDG&E and from related services. They record these revenues following the accrual method and recognize them upon delivery and performance. They also record revenue from CPUC-approved incentive awards, some of which require approval by the CPUC prior to being recognized. We provide additional discussion on utility incentive mechanisms in Note 14.

On a monthly basis, SoCalGas accrues natural gas storage contract revenues, which consist of storage reservation and variable charges based on negotiated agreements with terms of up to 15 years.

Our natural gas utilities outside of California (Mobile Gas, Willmut Gas and Ecogas) apply U.S. GAAP for regulated utilities consistent with the California Utilities.

Our electric distribution utilities in South America, Chilquinta Energía and Luz del Sur, serve primarily regulated customers, and their revenues are based on tariffs that are set by the National Energy Commission (Comisión Nacional de Energía, or CNE) in Chile and the Energy and Mining Investment Supervisory Body (Organismo Supervisor de la Inversión en Energía y Minería, or OSINERGMIN) of the National Electricity Office under the Ministry of Energy and Mines in Peru.

The tariffs charged are based on an efficient model distribution company defined by Chilean law in the case of Chilquinta Energía, and OSINERGMIN in the case of Luz del Sur. The tariffs include operation and maintenance costs, an internal rate of return on the new replacement value of depreciable assets, charges for the use of transmission systems, and a component for the value added by the distributor. Tariffs are designed to provide for a pass-through to customers of the main noncontrollable cost items (mainly power purchases and transmission charges), recovery of reasonable operating and administrative costs, incentives to reduce costs and make needed capital investments and a regulated rate of return on the distributor’s regulated asset base. Because the tariffs are based on a model and are intended to cover the costs of the model company, but are not based on the costs of the specific utility and may not result in full cost recovery, they do not meet the requirement necessary for treatment under applicable U.S. GAAP for regulatory accounting.

For Chilquinta Energía, rates for four-year periods related to distribution and sub-transmission are reviewed separately on an alternating basis every two years. In late 2011, Chilquinta Energía initiated the process to establish its distribution rates for the period from November 2012 to October 2016. This process was completed in November 2012, with rates published in April 2013, and tariff adjustments going into effect retroactively from November 2012. The next review process for distribution rates is scheduled to be completed, with tariff adjustments also going into effect, in November 2016.

In April 2013, the CNE completed the process to establish Chilquinta Energía’s sub-transmission rates for the period January 2011 to December 2014, with tariff adjustments going into effect retroactively from January 2011. The sub-transmission rates period has been extended for one year, for one time only, to December 2015 due to a change in law issued in December 2014. Accordingly, the next review process for sub-transmission rates will be in January 2016, covering the period from January 2016 to December 2019.

The components of tariffs above for Luz del Sur are reviewed and adjusted every four years. The final distribution rate-setting resolution for the 2013-2017 period was published in October 2013 and went into effect on November 1, 2013.

The table below shows the total utilities revenues in Sempra Energy’s Consolidated Statements of Operations for each of the last three years. The revenues include amounts for services rendered but unbilled (approximately one-half month’s deliveries) at the end of each year.

TOTAL UTILITIES REVENUES AT SEMPRA ENERGY CONSOLIDATED(1)
(Dollars in millions)
		Years ended December 31,
		2014		2013		2012
Electric revenues		$	5,209	$	4,911	$	4,568
Natural gas revenues			4,549		4,398		3,873
Total		$	9,758	$	9,309	$	8,441
(1)	Excludes intercompany revenues.

As we discuss in Note 14, the natural gas supply for SDG&E’s and SoCalGas’ core natural gas customers is purchased by SoCalGas as a combined procurement portfolio managed by SoCalGas. Core customers are primarily residential and small commercial and industrial customers. This core gas procurement function is considered a shared service, therefore amounts related to SDG&E are not included in SoCalGas’ Consolidated Statements of Operations.

We provide additional information concerning utility revenue recognition in “Regulatory Matters” above.

Energy-Related Businesses

Sempra South American Utilities

Sempra South American Utilities generates revenues from energy-services companies that provide electric construction services and recognizes these revenues when services are provided in accordance with contractual agreements. The energy-services company in Chile also generates revenue from selling electricity to non-regulated customers.

Sempra Mexico

Sempra Mexico’s Termoeléctrica de Mexicali natural gas-fired power plant generates revenues from selling electricity and/or capacity to the California Independent System Operator (ISO) and to governmental, public utility and wholesale power marketing entities. Sempra Mexico recognizes these revenues as the electricity is delivered and capacity is provided. Sempra Mexico’s pipeline operations recognize revenues from the sale and transportation of natural gas as deliveries are made and from fixed capacity payments. Sempra Mexico also recognizes revenues from (1) the sale of LNG and natural gas as deliveries are made to counterparties and (2) from reservation and usage fees under terminal capacity agreements, nitrogen injection service agreements and tug service agreements. It reports revenue net of value added taxes in Mexico. Sempra Mexico’s revenues also include net realized gains and losses and the net change in the fair value of unrealized gains and losses on derivative contracts for natural gas.

Sempra Renewables

For consolidated entities, Sempra Renewables generates revenues from the sale of solar power pursuant to power purchase agreements, and recognizes these revenues when the power is delivered. It also generates revenues for the management of certain of its solar and wind project joint ventures.

Sempra Natural Gas

Sempra Natural Gas generates revenues from selling electricity and/or capacity from its Mesquite Power facility to the California ISO and to governmental, public utility and wholesale power marketing entities. Sempra Natural Gas recognizes these revenues as the electricity is delivered and capacity is provided. Related to its LNG terminal, prior to October 1, 2014, the effective date of the Cameron LNG Holdings joint venture, Sempra Natural Gas recognized revenues from reservation and usage fees. We discuss the deconsolidation of Cameron LNG, LLC and related assets further in Note 3. Sempra Natural Gas also records revenues from contractual counterparty obligations for non-delivery of LNG cargoes, as well as revenues from the sale of LNG and natural gas as deliveries are made to counterparties. Sempra Natural Gas recognizes revenue on natural gas storage and transportation operations when services are provided in accordance with contractual agreements for the storage and transportation services. Sempra Natural Gas revenues also include net realized gains and losses and the net change in the fair value of unrealized gains and losses on derivative contracts for power and natural gas.

OTHER COST OF SALES

Other Cost of Sales primarily includes

pipeline capacity costs, and pipeline transportation and natural gas marketing costs incurred at Sempra Natural Gas;
electric construction services costs incurred by Sempra South American Utilities’ energy-services companies; and

energy management service fees at Sempra Mexico.

OPERATION AND MAINTENANCE EXPENSES

Operation and Maintenance includes operating and maintenance costs, and general and administrative costs, consisting primarily of personnel costs, purchased materials and services, litigation expense and rent.

FOREIGN CURRENCY TRANSLATION

Our operations in South America and our natural gas distribution utility in Mexico use their local currency as their functional currency. The assets and liabilities of their foreign operations are translated into U.S. dollars at current exchange rates at the end of the reporting period, and revenues and expenses are translated at average exchange rates for the year. The resulting noncash translation adjustments do not enter into the calculation of earnings or retained earnings (unless the operation is being discontinued), but are reflected in Comprehensive Income and in Accumulated Other Comprehensive Income (Loss), a component of shareholders’ equity.

Currency transaction (losses) gains in a currency other than the entity’s functional currency were $(15) million, $(3) million, and $9 million for the years ended December 31, 2014, 2013, and 2012, respectively, and are included in Other Income, Net, at Sempra Energy

Cash flows of the consolidated foreign subsidiaries are translated into U.S. dollars using average exchange rates for the period. We report the effect of exchange rate changes on cash balances held in foreign currencies in “Effect of Exchange Rate Changes on Cash and Cash Equivalents” on our Consolidated Statements of Cash Flows.

TRANSACTIONS WITH AFFILIATES

Due to and from Unconsolidated Affiliates – Sempra Energy Consolidated

Sempra South American Utilities has a U.S. dollar-denominated loan to Eletrans S.A. to provide project financing for the construction of transmission lines. Eletrans S.A. is an affiliate of Chilquinta Energía that we discuss in Note 4. At December 31, 2014 and 2013, the principal balance outstanding was $40 million and $14 million, plus $1 million and a negligible amount of accumulated interest outstanding, respectively, at a fixed interest rate of 4 percent.

In the second half of 2014, Sempra Mexico made three four-year and one three-year, U.S. dollar-denominated loans to affiliates of Sempra Mexico’s joint venture with Petróleos Mexicanos (or PEMEX, the Mexican state-owned oil company) to finance the Los Ramones Norte pipeline project. At December 31, 2014, these loans have principal balances outstanding aggregating $79 million and $44 million, respectively, plus $2 million of accumulated interest. These loans accrue interest at a variable rate based on a 30-day LIBOR plus 450 basis points (4.66 percent at December 31, 2014).

As we discuss in Note 3, in July 2014, Sempra Mexico sold a 50-percent interest in the first phase of the Energía Sierra Juárez wind project. Upon deconsolidation, the newly formed joint venture repaid a portion, in the amount of $18 million, of a previous intercompany loan from Sempra Mexico to Energía Sierra Juárez. The joint venture assumed the obligation to Sempra Mexico for the remainder of the loan, which has a principal balance outstanding at December 31, 2014 of $21 million plus $1 million of accumulated interest. This loan accrues interest at a variable rate based on a 30-day LIBOR plus 637.5 basis points (6.53 percent at December 31, 2014).

At December 31, 2014 and 2013, Sempra Energy had $38 million and $4 million, respectively, in accounts receivable from various Sempra Renewables and Sempra Mexico joint venture investments. Sempra Energy also had a $2 million contribution payable to Sempra Energy Foundation at December 31, 2014, which was paid in January 2015.

Service Agreements

Sempra Energy, SDG&E and SoCalGas provide certain services to each other and are charged an allocable share of the cost of such services. Also, from time to time, SDG&E and SoCalGas may loan surplus cash to Sempra Energy at interest rates based on one-month commercial paper rates. Amounts due to/from affiliates are as follows:

AMOUNTS DUE TO AND FROM AFFILIATES AT SDG&E AND SOCALGAS
(Dollars in millions)
		December 31,
		2014		2013
SDG&E:
Current:
Due from various affiliates		$	1	$	1

Due to Sempra Energy		$	17	$	25
Due to SoCalGas			4		―
Due to various affiliates			―		14
		$	21	$	39

Income taxes due from Sempra Energy(1)		$	16	$	70
SoCalGas:
Current:
Due from SDG&E		$	4	$	―
Due from various affiliates			―		21
		$	4	$	21

Due to Sempra Energy		$	13	$	16

Income taxes due from Sempra Energy(1)		$	9	$	18
(1)	SDG&E 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 SDG&E and SoCalGas are as follows:

Transactions with Rockies Express Pipelines LLC

Sempra Natural Gas has an agreement with Rockies Express Pipelines LLC (Rockies Express) for capacity on the Rockies Express pipeline (REX) through November 2019. Sempra Natural Gas recorded cost of sales of $78 million in each of 2014, 2013 and 2012 related to this agreement. We discuss this agreement further in Note 15.

RESTRICTED NET ASSETS

Sempra Energy Consolidated

As we discuss below, the California Utilities have restrictions on the amount of funds that can be transferred to Sempra Energy by dividend, advance or loan as a result of conditions imposed by various regulators. Additionally, certain other Sempra Energy subsidiaries are subject to various financial and other covenants and other restrictions contained in debt and credit agreements (described in Note 5) and in other agreements that limit the amount of funds that can be transferred to Sempra Energy. At December 31, 2014, Sempra Energy was in compliance with all covenants related to its debt agreements.

At December 31, 2014, the amount of restricted net assets of wholly owned subsidiaries of Sempra Energy, including the California Utilities discussed below, that may not be distributed to Sempra Energy in the form of a loan or dividend is $6.6 billion. Additionally, the amount of restricted net assets of our unconsolidated entities is $2.1 billion. Although the restrictions cap the amount of funding that the various operating subsidiaries can provide to Sempra Energy, we do not believe these restrictions will have a significant impact on our ability to access cash to pay dividends.

As we discuss in Note 4, $187 million of Sempra Energy’s consolidated retained earnings balance represents undistributed earnings of equity method investments at December 31, 2014.

California Utilities

The CPUC’s regulation of the California Utilities’ capital structures limits the amounts available for dividends and loans to Sempra Energy. At December 31, 2014, Sempra Energy could have received combined loans and dividends of approximately $640 million from SDG&E and approximately $755 million from SoCalGas.

The payment and amount of future dividends by SDG&E and SoCalGas are at the discretion of their respective boards of directors. The following restrictions limit the amount of retained earnings that may be paid as common stock dividends or loaned to Sempra Energy from either utility:

The CPUC requires that SDG&E’s and SoCalGas’ common equity ratios be no lower than one percentage point below the CPUC-authorized percentage of each entity’s authorized capital structure. The authorized percentage at December 31, 2014 is 52 percent at both SDG&E and SoCalGas.
The FERC requires SDG&E to maintain a common equity ratio of 30 percent or above.

The California Utilities have a combined revolving credit line that requires each utility to maintain a ratio of consolidated indebtedness to consolidated capitalization (as defined in the agreement) of no more than 65 percent, as we discuss in Note 5.

Based on these restrictions, at December 31, 2014, SDG&E’s restricted net assets were $4.3 billion and SoCalGas’ restricted net assets were $2.0 billion, which could not be transferred to Sempra Energy.

Sempra International

Significant restrictions of Sempra International subsidiaries include

Peru and Mexico require domestic corporations to maintain minimum legal reserves as a percentage of capital stock, resulting in restricted net assets of $35 million at Luz del Sur and $81 million at Sempra Energy’s consolidated Mexican subsidiaries at December 31, 2014.
Energía Sierra Juárez, a 50-percent owned and unconsolidated joint venture of Sempra Mexico (see Notes 3 and 4), has a long-term debt agreement that requires the establishment and funding of project and reserve accounts to which the proceeds of loans, letter of credit draws, project revenues and other amounts are deposited and applied in accordance with the debt agreement. The long-term debt agreement also limits the joint venture’s ability to incur liens, incur additional indebtedness, make acquisitions and undertake certain actions. Also, in connection with a debt agreement for the financing of Mexican value added tax, Energía Sierra Juárez had $0.8 million of restricted net assets at December 31, 2014.
Gasoductos de Chihuahua, Sempra Mexico’s joint venture with PEMEX (see Note 4), has a debt agreement that requires the joint venture to maintain a reserve account to pay the debt. Under these restrictions, net assets totaling $32 million are restricted at December 31, 2014.

Sempra U.S. Gas & Power

Significant restrictions of Sempra U.S. Gas & Power subsidiaries include

Wholly owned Copper Mountain Solar 1 has a long-term debt agreement that requires the establishment and funding of project accounts to which the proceeds of loans, project revenues and other amounts are deposited and applied in accordance with the debt agreement. This long-term debt agreement also limits Copper Mountain Solar 1’s ability to incur liens, incur additional indebtedness, make acquisitions and undertake certain actions, while also requiring maintenance of certain debt ratios. Under these restrictions, net assets totaling $9 million are restricted at December 31, 2014.
50-percent owned and unconsolidated joint ventures at Sempra Renewables have debt agreements that require each joint venture to maintain reserve accounts in order to pay the projects’ debt service and operation and maintenance requirements. We discuss Sempra Energy guarantees associated with these requirements in Note 5. At December 31, 2014, as a result of these requirements, there were total restricted net assets at our joint ventures of approximately:

$10 million at Broken Bow 2 Wind
$30 million at California solar partnership
$26 million at Cedar Creek 2 Wind (Cedar Creek 2)
$9 million at Copper Mountain Solar 2
$3 million at Copper Mountain Solar 3
$52 million at Flat Ridge 2 Wind (Flat Ridge 2)
$35 million at Fowler Ridge 2 Wind (Fowler Ridge 2)
$16 million at Mehoopany Wind (Mehoopany Wind)
$94 million at Mesquite Solar 1

Wholly owned Mobile Gas has long-term debt instruments containing restrictions relating to the payment of dividends and other distributions with respect to capital stock. Under these restrictions, net assets of approximately $116 million are restricted at December 31, 2014.
91-percent owned Bay Gas has long-term debt instruments containing restrictions relating to the payment of dividends and other distributions if Bay Gas does not maintain a specified debt service coverage ratio. Bay Gas had no restricted net assets at December 31, 2014.

Sempra Natural Gas has an equity method investment in the Cameron LNG Holdings joint venture, which has debt agreements that require the establishment and funding of project accounts to which the proceeds of loans, project revenues and other amounts are deposited and applied in accordance with the debt agreements. The debt agreements require the joint venture to maintain reserve accounts in order to pay the project debt service, and also contain restrictions related to the payment of dividends and other distributions to the members of the joint venture. We discuss Sempra Energy guarantees associated with Cameron LNG Holdings’ debt agreements in Note 4. Under these restrictions, net assets of Cameron LNG Holdings of approximately $1.8 billion are restricted at December 31, 2014.

OTHER INCOME, NET

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

OTHER INCOME, NET
(Dollars in millions)
		Years ended December 31,
		2014		2013		2012
Sempra Energy Consolidated:
Allowance for equity funds used during construction		$	106	$	75	$	96
Investment gains(1)			27		39		41
Electrical infrastructure relocation income(2)			21		4		6
(Losses) gains on interest rate and foreign exchange instruments, net			(15)		17		10
Foreign currency (losses) gains			(15)		(3)		9
Regulatory interest, net(3)			6		5		1
Sundry, net			7		3		9
	Total	$	137	$	140	$	172
SDG&E:
Allowance for equity funds used during construction		$	37	$	39	$	71
Regulatory interest, net(3)			6		4		2
Sundry, net			(3)		(3)		(4)
	Total	$	40	$	40	$	69
SoCalGas:
Allowance for equity funds used during construction		$	26	$	17	$	25
Regulatory interest, net(3)			―		1		(1)
Sundry, net			(6)		(7)		(7)
	Total	$	20	$	11	$	17
(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)	Income at Luz del Sur associated with the relocation of electrical infrastructure.
(3)	Interest on regulatory balancing accounts.

NEW ACCOUNTING STANDARDS	12 Months Ended
NEW ACCOUNTING STANDARDS	Dec. 31, 2014
Notes to Consolidated Financial Statements [Abstract]
New Accounting Standards	NOTE 2. NEW ACCOUNTING STANDARDS We describe below recent pronouncements that have had or may have a significant effect on our financial statements. We do not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to our financial condition, results of operations, cash flows or disclosures. SEMPRA ENERGY, SDG&E AND SOCALGAS Accounting Standards Update (ASU) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (ASU 2013-11): ASU 2013-11 provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purposes, an entity is required to present the unrecognized tax benefit in the financial statements as a liability instead of combined with deferred tax assets. We adopted ASU 2013-11 on January 1, 2014 as required and it did not significantly affect our financial condition, results of operations or cash flows. ASU 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09): ASU 2014-09 provides accounting guidance for revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. The guidance also provides a model for the measurement and recognition of gains and losses on the sale of certain nonfinancial assets, such as property and equipment, including real estate. This guidance must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. We will adopt ASU 2014-09 on January 1, 2017 as required. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

Notes to Consolidated Financial Statements [Abstract]

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22580-107794

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22499-107794

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
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-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22583-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
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-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

+ Details

ACQUISTION AND DIVESTITURE ACTIVITY

12 Months Ended

Dec. 31, 2014

Acquistion and divestiture activity

NOTE 3. ACQUISITION AND DIVESTITURE ACTIVITY

We consolidate assets and liabilities acquired as of the purchase date and include earnings from acquisitions in consolidated earnings after the purchase date.

During the years ended December 31, 2014 and 2013, Sempra Energy completed the sale of equity interests in various subsidiaries that were previously wholly owned as well as the contribution of Cameron LNG, LLC to a joint venture in exchange for an equity interest in the joint venture. The following table summarizes the deconsolidation of those subsidiaries, and we discuss each transaction below, along with other acquisition and divestiture activity, by segment.

DECONSOLIDATION OF SUBSIDIARIES
(Dollars in millions)
		BrokenBow 2 Wind		CameronLNG		Energía Sierra Juárez		Copper MountainSolar 3		Sempra EnergyConsolidated
		At November 5		At October 1		At July 16		At March 13
2014:
Proceeds, net of negligible transaction costs		$	58	$	―	$	26	$	68	$	152
Cash			―		(6)		(2)		(2)		(10)
Restricted cash			(5)		―		―		―		(5)
Other current assets			(1)		(11)		(11)		―		(23)
Property, plant and equipment, net			(151)		(1,022)		(137)		(247)		(1,557)
Other assets			(8)		(30)		(16)		(11)		(65)
Accounts payable and accrued expenses			3		93		10		82		188
Due to affiliate			―		―		39		―		39
Long-term debt, including current portion			72		―		82		97		251
Other liabilities			2		―		7		3		12
Accumulated other comprehensive income			―		―		(5)		(2)		(7)
Gain on sale of equity interests(1)			(14)		―		(19)		(27)		(60)
(Increase) in equity method investments upon
deconsolidation		$	(44)	$	(976)	$	(26)	$	(39)	$	(1,085)

						Mesquite Solar 1		Copper Mountain Solar 2		Sempra Energy Consolidated
						At September 19		At July 11(3)
2013:
Proceeds from sale, net of transaction costs(2)						$	100	$	69	$	169
Property, plant and equipment, net							(461)		(266)		(727)
Other assets							(72)		(30)		(102)
Long-term debt, including current portion							297		146		443
Other liabilities							31		19		50
Gain on sale of equity interests(1)							(36)		(4)		(40)
(Increase) in equity method investments upon
deconsolidation						$	(141)	$	(66)	$	(207)
(1)	Included in Gain on Sale of Equity Interests and Assets on our Consolidated Statements of Operations.
(2)	Transaction costs were $3 million at both Mesquite Solar 1 and Copper Mountain Solar 2.
(3)	Proceeds from sale, net of transaction costs, was adjusted for financial position at closing in the fourth quarter of 2013.

SEMPRA MEXICO

SEMPRA RENEWABLES

In July 2013, Sempra Renewables formed a joint venture with Consolidated Edison Development (ConEdison Development), a nonrelated party, by selling a 50-percent interest in its 150-MW Copper Mountain Solar 2 solar power facility for $72 million in cash. Sempra Renewables recognized a pretax gain on the sale of $4 million ($2 million after-tax).

In September 2013, Sempra Renewables formed a joint venture with ConEdison Development by selling a 50-percent interest in its 150-MW Mesquite Solar 1 solar power facility for $103 million in cash. Sempra Renewables recognized a pretax gain on the sale of $36 million ($22 million after-tax).

In March 2014, Sempra Renewables formed a joint venture with ConEdison Development by selling a 50-percent interest in its 250-MW Copper Mountain Solar 3 solar power facility for $66 million in cash, net of $2 million cash sold. Sempra Renewables recognized a pretax gain on the sale of $27 million ($16 million after-tax).

In May 2014, Sempra Renewables invested $121 million (as adjusted for financial position at closing) to become a 50-percent partner with ConEdison Development in four solar projects in California. We discuss our investment in the California solar partnership further in Note 4.

In November 2014, Sempra Renewables formed a joint venture with ConEdison Development by selling a 50-percent interest in the 75-MW Broken Bow 2 Wind project for $58 million in cash. Sempra Renewables recognized a pretax gain on the sale of $14 million ($8 million after-tax). Sempra Renewables acquired the rights to develop the Broken Bow 2 Wind project in September 2013.

Our remaining 50-percent interests in Copper Mountain Solar 2, Mesquite Solar 1, Copper Mountain Solar 3, and Broken Bow 2 Wind are accounted for under the equity method. Based on the nature of the underlying assets, these investments are considered in-substance real estate. Therefore, in accordance with applicable U.S. GAAP, for each of these investment transactions, the equity method investments were measured at their historical cost and no portion of the gains was attributable to a remeasurement of the retained investments to fair value.

SEMPRA NATURAL GAS

Mesquite Power Sale

In February 2013, Sempra Natural Gas sold one 625-MW block of its 1,250-MW Mesquite Power natural gas-fired power plant in Arizona, including a portion related to common plant, for approximately $371 million in cash to the Salt River Project Agricultural Improvement and Power District (SRP). The asset was classified as held for sale at December 31, 2012 and we recognized a pretax gain on sale of $74 million ($44 million after-tax), included in Gain on Sale of Equity Interests and Assets on our Consolidated Statement of Operations in 2013. In connection with the sale, we entered into a 20-year operations and maintenance agreement with SRP on February 28, 2013, whereby SRP assumed plant operations and maintenance of the facility, including our remaining 625-MW block. We provide additional information concerning the operations and maintenance agreement in Note 15 under “Other Commitments – Sempra Natural Gas.”

Asset Held For Sale, Power Plant

We classify assets as held for sale when management approves and commits to a formal plan to actively market an asset for sale and we expect the sale to close within the next twelve months. Upon classifying an asset as held for sale, we record the asset at the lower of its carrying value or its estimated fair value reduced for selling costs, and we stop recording depreciation expense on the asset.

In January 2014, management approved a formal plan to market and sell the remaining 625-MW block of the Mesquite Power plant, and in October 2014, Sempra Natural Gas entered into a definitive agreement to sell the remaining block of the plant. We anticipate the sale will close in the first half of 2015, subject to obtaining third-party consents for the assignment to the buyer of a 25-year power sales contract associated with the plant.

At December 31, 2014, the carrying amount of the major classes of assets and related liability held for sale associated with the plant included the following:

ASSET HELD FOR SALE, POWER PLANT
(Dollars in millions)
		December 31,
		2014
Property, plant, and equipment, net		$	290
Inventories			3
Total assets held for sale			293
Liability held for sale - asset retirement obligation(1)			(6)
Total		$	287
(1)	Included in Other Current Liabilities on the Consolidated Balance Sheet.

The estimated fair value, including estimated costs to sell, exceeds the carrying amount at December 31, 2014.

Cameron LNG Holdings Joint Venture

On August 6, 2014, Sempra Natural Gas and its project partners, comprised of affiliates of GDF SUEZ S.A., Mitsui & Co., Ltd., and Mitsubishi Corporation (through a related company jointly established with Nippon Yusen Kabushiki Kaisha), provided their respective final investment decision with regard to the investment in the development, construction and operation of the natural gas liquefaction export facility at the terminal in Hackberry, Louisiana, owned by Cameron LNG, LLC (Cameron LNG). The Cameron liquefaction project utilizes Cameron LNG’s existing facilities, including two marine berths, three LNG storage tanks, and vaporization capability of 1.5 billion cubic feet (Bcf) per day. The current Cameron liquefaction project is comprised of three liquefaction trains and is being designed to a nameplate capacity of 13.5 million tonnes per annum (Mtpa) of LNG, with an expected export capability of 12 Mtpa of LNG, or approximately 1.7 Bcf per day. Commercial operation of all three trains is expected to commence in 2018, with the first year of full operations in 2019. The effective date of the Cameron LNG joint venture, Cameron LNG Holdings, LLC (Cameron LNG Holdings), among Sempra Energy and its project partners occurred on October 1, 2014 after satisfaction of various conditions, including receipt of final regulatory approval and satisfaction of conditions precedent to the first disbursement of the project financing.

Our equity in Cameron LNG Holdings was derived from our contribution of Cameron LNG to the joint venture at its historical carrying value. Each of the partners were issued equity interests in Cameron LNG Holdings in an aggregate of 49.8 percent. Cameron LNG thereby ceased to be wholly owned by Sempra Natural Gas, which retained a 50.2 percent interest in Cameron LNG Holdings. As of the October 1, 2014 effective date, Sempra Natural Gas began to account for its investment in Cameron LNG Holdings under the equity method. Sempra Energy did not recognize a gain or loss related to the contribution of Cameron LNG at cost to the joint venture.

Willmut Gas Company

In May 2012, Sempra Natural Gas acquired 100 percent of the outstanding common stock of Willmut Gas, a regulated natural gas distribution utility with 19,000 customer meters in Hattiesburg, Mississippi. Willmut Gas was purchased for $19 million in cash and the assumption of $10 million of liabilities. Included in the acquisition was $17 million in net property, plant and equipment. As a result of the acquisition, we recorded $10 million of goodwill.

INVESTMENTS IN UNCONSOLIDATED ENTITIES

12 Months Ended

Dec. 31, 2014

Notes to Consolidated Financial Statements [Abstract]

Investments in Unconsolidated Entities

NOTE 4. INVESTMENTS IN UNCONSOLIDATED ENTITIES

We generally account for investments under the equity method when we have significant influence over, but do not have control of, these entities. In these cases, our pro rata shares of the entities’ net assets are included in Investments on the Consolidated Balance Sheets. We adjust each investment for our share of each investee’s earnings or losses, dividends, and other comprehensive income or loss.

We evaluate the carrying value of unconsolidated entities for impairment under the U.S. GAAP provisions for equity method investments.

We provide the carrying value of our investments and earnings (losses) on these investments below:

EQUITY METHOD AND OTHER INVESTMENT BALANCES
(Dollars in millions)
		December 31,
		2014		2013
Sempra South American Utilities:
Eletrans(1)		$	(8)	$	(3)
Sempra Mexico:
Energía Sierra Juárez(2)			25		―
Gasoductos de Chihuahua(3)			409		379
Sempra Renewables:
Wind:
Auwahi Wind			45		53
Broken Bow 2 Wind			44		―
Cedar Creek 2 Wind			82		92
Flat Ridge 2 Wind			284		292
Fowler Ridge 2 Wind			46		51
Mehoopany Wind			82		85
Solar:
California solar partnership			125		―
Copper Mountain Solar 2			61		67
Copper Mountain Solar 3			56		―
Mesquite Solar 1			86		67
Sempra Natural Gas:
Cameron LNG Holdings(4)			1,007		―
Rockies Express Pipeline LLC(5)			340		329
Parent and other:
RBS Sempra Commodities LLP			71		73
Total equity method investments			2,755		1,485
Other(6)			93		90
Total		$	2,848	$	1,575
(1)	Includes losses on forward exchange contracts as we discuss below.
(2)	The carrying value of our equity method investment is $12 million higher than the underlying equity in the net assets of the investee at December 31, 2014 due to the remeasurement of our retained investment to fair value.
(3)	The carrying value of our equity method investment is $65 million higher than the underlying equity in the net assets of the investee at December 31, 2014 and 2013 due to equity method goodwill.
(4)	The carrying value of our equity method investment is $94 million higher than the underlying equity in the net assets of the investee at December 31, 2014 primarily due to guarantees as we discuss below.
(5)	The carrying value of our equity method investment is $369 million and $382 million lower than the underlying equity in the net assets of the investee at December 31, 2014 and 2013, respectively, due to an impairment charge recorded in 2012.
(6)	Other includes Sempra Natural Gas' $77 million investment in industrial development bonds at Mississippi Hub at both December 31, 2014 and 2013.

EARNINGS (LOSSES) FROM EQUITY METHOD INVESTMENTS
(Dollars in millions)
		Years ended December 31,
		2014		2013		2012
Earnings (losses) recorded before income tax:
Sempra Renewables:
Wind:
Auwahi Wind		$	4	$	4	$	―
Cedar Creek 2 Wind			(3)		(4)		(4)
Flat Ridge 2 Wind			(7)		(8)		1
Fowler Ridge 2 Wind			2		(3)		(3)
Mehoopany Wind			(1)		(2)		―
Solar:
California solar partnership			6		―		―
Copper Mountain Solar 2			3		―		―
Copper Mountain Solar 3			2		―		―
Mesquite Solar 1			14		1		―
Sempra Natural Gas:
Cameron LNG Holdings			2		―		―
Rockies Express Pipeline LLC:
Impairment			―		―		(400)
Income tax make-whole payment received			―		―		41
Other equity earnings			60		47		47
Parent and other:
RBS Sempra Commodities LLP			(2)		(3)		―
Other			1		(1)		(1)
		$	81	$	31	$	(319)

Earnings (losses) recorded net of income tax(1):
Sempra South American Utilities:
Sodigas Pampeana and Sodigas Sur		$	―	$	(11)	$	―
Eletrans			(4)		(4)		―
Sempra Mexico:
Energía Sierra Juárez			3		―		―
Gasoductos de Chihuahua			39		39		36
		$	38	$	24	$	36
(1)	As the earnings (losses) from these investments are recorded net of income tax, they are presented below the income tax expense line, so as not to impact our effective income tax rate.

Our share of the undistributed earnings of equity method investments was $187 million and $129 million at December 31, 2014 and 2013, respectively. The December 31, 2014 and 2013 balances do not include remaining distributions of $71 million and $73 million, respectively, associated with our investment in RBS Sempra Commodities LLP (RBS Sempra Commodities) and expected to be received from the partnership as it is dissolved, as we discuss below.

SEMPRA SOUTH AMERICAN UTILITIES

Sempra South American Utilities previously owned 43 percent of two Argentine natural gas utility holding companies, Sodigas Pampeana and Sodigas Sur. In December 2006, we decided to sell these investments and actively pursued their sale since that time. In the first quarter of 2013, we recorded a noncash impairment charge of $10 million ($7 million after-tax) to reduce the carrying value of our investments to estimated fair value at that time. The net charge is reported in Equity Earnings, Net of Income Tax on the Consolidated Statement of Operations for the year ended December 31, 2013. In June 2013, we completed the sale of our Argentine investments for $13 million in cash and recorded an additional $7 million loss ($4 million after-tax) on the sale, which is also included in Equity Earnings, Net of Income Tax.

As a result of the devaluation of the Argentine peso at the end of 2001 and subsequent changes in the value of the peso, Sempra South American Utilities had reduced the carrying value of its investments by a cumulative total of $270 million prior to the sale. These noncash adjustments, based on fluctuations in the value of the Argentine peso, did not affect earnings, but were recorded in Comprehensive Income and Accumulated Other Comprehensive Income (Loss). As a result of the sale of our investments, this cumulative foreign currency translation adjustment was reclassified to Equity Earnings, Net of Income Tax, where it was substantially offset by the elimination of a $250 million accrued liability established in 2006.

In 2013, Chilquinta Energía entered into two 50-percent owned joint ventures, Eletrans S.A. and Eletrans II S.A. (collectively, Eletrans), with Sociedad Austral de Electricidad Sociedad Anónima (SAESA) to construct four transmission lines in Chile. In 2013, Eletrans entered into forward exchange contracts to manage the foreign currency exchange rate risk of the Chilean Unidad de Fomento (CLF) relative to the U.S. dollar, related to certain construction commitments that are denominated in CLF. The forward exchange contracts settle based on anticipated payments to vendors, generally monthly, ending in July 2018. We recorded $4 million of equity losses related to these forward contracts in both 2014 and 2013 in Equity Earnings, Net of Income Tax on the Consolidated Statements of Operations.

SEMPRA MEXICO

Sempra Mexico owns a 50-percent interest in Gasoductos de Chihuahua, a joint venture with Petróleos Mexicanos (or PEMEX, the Mexican state-owned oil company). The joint venture operates several natural gas pipelines and propane systems in Mexico and is developing natural gas pipelines, an ethane transport system and other energy infrastructure. Sempra Mexico acquired its investment in Gasoductos de Chihuahua as part of the purchase of Mexican pipeline and natural gas infrastructure assets in 2010.

SEMPRA RENEWABLES

With the exception of Copper Mountain Solar 1, which it wholly owns, Sempra Renewables has 50-percent interests in wind and solar energy generation facilities in operation or under construction in Arizona, California, Colorado, Hawaii, Indiana, Kansas, Nebraska, Nevada, and Pennsylvania. The generating capacities of the facilities in operation are contracted under long-term power purchase agreements. These facilities are accounted for under the equity method.

Sempra Renewables formed joint ventures with ConEdison Development by selling 50-percent interests in its Copper Mountain Solar 2 and Mesquite Solar 1 facilities in 2013 and its Copper Mountain Solar 3 and Broken Bow 2 Wind facilities in 2014. We discuss these joint ventures further in Notes 3 and 5.

In May 2014, Sempra Renewables invested $121 million (as adjusted for financial position at closing) to become a 50-percent partner with ConEdison Development in four fully operating solar facilities in California. The joint venture includes ConEdison Development’s CED California Holdings, LLC portfolio, which consists of the 50-MW Alpaugh 50, the 20-MW Alpaugh North and the 20-MW White River 1 facilities in Tulare County, and the 20-MW Corcoran 1 facility in Kings County (collectively, the California solar partnership). The renewable power from all of the projects has been sold under long-term contracts.

SEMPRA NATURAL GAS

Rockies Express

Sempra Natural Gas owns a 25-percent interest in Rockies Express, a partnership that operates a natural gas pipeline, REX, that links the Rocky Mountain region to the upper Midwest and the eastern United States. In November 2012, Kinder Morgan Energy Partners L.P. (KMP) sold its 50-percent interest in Rockies Express, as part of a larger asset group, to Tallgrass Energy Partners, L.P. (Tallgrass). Phillips 66 owns the remaining 25-percent interest. Our total investment in Rockies Express is accounted for as an equity method investment.

The general partner of KMP was Kinder Morgan, Inc. (KMI). As a condition of KMI receiving antitrust approval from the Federal Trade Commission (FTC) for its acquisition of El Paso Corporation, KMI agreed to divest certain assets in its natural gas pipeline group. Included in the asset group, as noted above, was KMP’s interest in Rockies Express. KMP recorded remeasurement losses during 2012 associated with these operations (classified as discontinued operations by KMP). In 2012, we recorded impairments of our partnership investment in Rockies Express of $300 million ($179 million after-tax) and $100 million ($60 million after-tax) in the second and third quarters, respectively, which are included in Equity Earnings (Losses), Before Income Tax on the Consolidated Statement of Operations. Our remaining carrying value in Rockies Express at December 31, 2014 is $340 million. We recorded the write-downs in 2012 as a result of our estimate of fair value for our investment at the reporting date and our conclusion that the impairments were other-than-temporary, as required by U.S. GAAP. We discuss the fair value measurement of our investment in Rockies Express in Note 10.

For income tax purposes, upon KMP’s sale of its 50-percent interest in Rockies Express, the partnership was considered terminated under federal tax law and a new partnership immediately formed which triggered a restart of depreciation method on the partnership’s remaining tax basis of its tangible assets. As required by the LLC agreement, KMP made a cash make-whole payment to Sempra Natural Gas of $41 million in November 2012, which was recorded as equity income from Rockies Express.

Cameron LNG

October 1, 2014 was the effective date of the formation of a joint venture partnership among Sempra Energy and three project partners involving Sempra Natural Gas' Cameron LNG facility in Louisiana, as we discuss in Note 3. As of October 1, 2014, Sempra Natural Gas began accounting for its investment in Cameron LNG Holdings under the equity method.

Cameron LNG Holdings Joint Venture Financing

General. On August 6, 2014, Cameron LNG entered into finance documents (collectively, Loan Facility Agreements) for senior secured financing in an initial aggregate principal amount of up to $7.4 billion under three debt facilities provided by the Japan Bank for International Cooperation (JBIC) and 29 international commercial banks, some of which will benefit from insurance coverage provided by Nippon Export and Investment Insurance (NEXI).

The Cameron LNG Loan Facility Agreements and related finance documents provide senior secured term loans with a maturity date of July 15, 2030. The proceeds of the loans will be used for financing the cost of development and construction of the three-train Cameron LNG project. The Loan Facility Agreements and related finance documents contain customary representations and affirmative and negative covenants for project finance facilities of this kind with the lenders of the type participating in the Cameron LNG financing.

On August 6, 2014, Sempra Energy entered into a completion agreement in favor of HSBC Bank USA, National Association, as security trustee for the benefit of all of Cameron LNG Holdings’ creditors under the Loan Facility Agreements. Pursuant to this completion agreement, Sempra Energy has severally guaranteed 50.2 percent of Cameron LNG Holdings’ senior debt obligations under the Loan Facility Agreements, or a maximum principal amount of $3.7 billion. Completion guarantees for the remaining 49.8 percent of Cameron LNG Holdings’ senior secured financing have been provided by the other project partners. The occurrence of the effectiveness of the Cameron LNG Holdings joint venture on October 1, 2014, as further described in Note 3, was a condition precedent to first disbursement of funds under the Loan Facility Agreements. The Sempra Energy completion guarantee of 50.2 percent of the Cameron LNG Holdings financing also became effective upon effectiveness of the Cameron LNG Holdings joint venture. Sempra Energy’s completion agreement and guarantee will terminate upon financial completion of the three-train Cameron LNG project, which is subject to satisfaction of certain conditions, including all three trains achieving commercial operations and meeting certain operational performance tests. Financial completion is scheduled for the second half of 2019. Sempra Energy recorded a liability of $82 million on October 1, 2014 for the fair value of its obligations associated with the debt reserve account requirements, which constitute guarantees. This liability is being amortized over the duration of the guarantees using the straight-line method.

On August 6, 2014, Sempra Energy and the other project partners entered into a transfer restrictions agreement with Société Générale, as intercreditor agent for the lenders under the Loan Facility Agreements. Pursuant to the transfer restriction agreement, Sempra Energy agreed to certain restrictions on its ability to dispose of Sempra Energy’s indirect fully diluted economic and beneficial ownership interests in Cameron LNG. These restrictions vary over time. Prior to financial completion of the three-train Cameron LNG project, Sempra Energy must retain 37.65 percent of such interest in Cameron LNG. Starting six months after financial completion of the three-train Cameron LNG project, Sempra Energy must retain at least 10 percent of the indirect fully diluted economic and beneficial ownership interest in Cameron LNG. At all times, the Sempra Energy affiliate that is the direct member in the Cameron LNG joint venture must be controlled by Sempra Energy and must have direct ownership of 50.2 percent of the Cameron LNG joint venture.

Interest. The weighted average all-in cost of the loans outstanding under all the Loan Facility Agreements (and based on certain assumptions as to timing of drawdown) is 1.59 percent per annum over LIBOR prior to financial completion of the project and 1.78 percent per annum over LIBOR following financial completion of the project. The Loan Facility Agreements require Cameron LNG to hedge 50 percent of outstanding borrowings to fix the interest rate, beginning in 2016. The hedges are to remain in place until the debt principal has been amortized by 50 percent. In November 2014, Cameron LNG entered into floating-to-fixed interest rate swaps for approximately $3.7 billion notional amount, resulting in an effective fixed rate of 3.19 percent.

Mandatory Prepayments. Cameron LNG Holdings must make mandatory prepayments of all loans made under the Loan Facility Agreements under certain circumstances, including: upon receipt of certain insurance proceeds and expropriation compensation; upon receipt of certain performance liquidated damages under Cameron LNG’s engineering, procurement and construction contract for the liquefaction terminal; in connection with the loss of its tolling agreements or export permits that result in a reduction of Cameron LNG’s debt service coverage ratios below a specified threshold; if it becomes unlawful in any applicable jurisdiction for a lender to fund or maintain its loans; or in connection with any mandatory prepayment of senior notes outstanding (if any).

The loans under the NEXI Covered Loan Facility Agreement and the loans held by JBIC under the JBIC Loan Facility Agreement are subject to certain additional mandatory prepayments that would be triggered if the Japanese sponsors fail to maintain certain ownership interests in Cameron LNG, if Cameron LNG’s Japanese tolling customers do not hold commitments for a certain quantum of nameplate capacity at the liquefaction terminal or if the aggregate annual contracted LNG commitments by Cameron LNG’s tolling customers to Japanese LNG buyers fall below a certain minimum threshold under certain circumstances.

Events of Default. Cameron LNG’s Loan Facility Agreements and related finance documents also contain events of default customary for such financings, including events of default for: failure to pay principal and interest on the due date; insolvency of Cameron LNG; abandonment of the project; expropriation; unenforceability or termination of the finance documents; and a failure to achieve financial completion of the project by a financial completion deadline date of September 30, 2021 (with up to additional 365 days extension beyond such date permitted in cases of force majeure). A delay in construction that results in a failure to achieve financial completion of the project by this financial completion deadline date would therefore result in an event of default under Cameron LNG’s financing and a potential demand on Sempra Energy’s guarantees.

Security. To support Cameron LNG’s obligations under the Loan Facility Agreements and related finance documents, Cameron LNG has granted security over all of its assets, subject to customary exceptions, and all equity interests in Cameron LNG have been pledged to HSBC Bank USA, National Association, as security trustee for the benefit of all Cameron LNG’s creditors. As a result, an enforcement action by the lenders taken in accordance with the finance documents could result in the exercise of such security interests by the lenders and the loss of ownership interests in Cameron LNG by Sempra Energy and the other project partners.

The security trustee under Cameron LNG’s financing can demand that a payment be made by Sempra Energy under its guarantees of Sempra Energy’s 50.2 percent share of senior debt obligations due and payable either on the date such amounts were due from Cameron LNG (taking into account cure periods) in the event of a failure by Cameron LNG to pay such senior debt obligations when they become due or within 10 business days in the event of an acceleration of senior debt obligations under the terms of the finance documents. If an event of default occurs under the Sempra Energy completion agreement, the security trustee can demand that Sempra Energy purchase its 50.2 percent share of all then outstanding senior debt obligations within five business days (other than in the case of a bankruptcy default, which is automatic).

RBS SEMPRA COMMODITIES

RBS Sempra Commodities is a United Kingdom limited liability partnership formed by Sempra Energy and The Royal Bank of Scotland plc (RBS) in 2008 to own and operate the commodities-marketing businesses previously operated through wholly owned subsidiaries of Sempra Energy. We and RBS sold substantially all of the partnership’s businesses and assets in four separate transactions completed in 2010 and 2011. We account for our investment in RBS Sempra Commodities under the equity method, and report miscellaneous costs since the sale of the business in Parent and Other.

We recorded $2 million and $3 million in pretax equity losses for the years ended December 31, 2014 and 2013, respectively, and no equity earnings or losses for the year ended December 31, 2012.

In April 2011, we and RBS entered into a letter agreement (Letter Agreement) which amended certain provisions of the agreements that formed RBS Sempra Commodities. The Letter Agreement addresses the wind-down of the partnership and the distribution of the partnership’s remaining assets. In accordance with the Letter Agreement, we received distributions of $50 million in 2013. The investment balance of $71 million at December 31, 2014 reflects remaining distributions expected to be received from the partnership in accordance with the Letter Agreement. The timing and amount of distributions may be impacted by the matters we discuss related to RBS Sempra Commodities in Note 15 under “Other Litigation.” In addition, amounts may be retained by the partnership for an extended period of time to help offset unanticipated future general and administrative costs necessary to complete the dissolution of the partnership.

In connection with the Letter Agreement described above, we also released RBS from its indemnification obligations with respect to items for which J.P. Morgan Chase & Co. (JP Morgan), one of the buyers of the partnership’s businesses, has agreed to indemnify us.

SUMMARIZED FINANCIAL INFORMATION

We present summarized financial information below, aggregated for all of our equity method investments for the periods in which we were invested in the entity. The amounts below represent the aggregate financial position and results of operations of 100 percent of each of Sempra Energy’s equity method investments.

SUMMARIZED FINANCIAL INFORMATION
(Dollars in millions)
		Years ended December 31,
		2014		2013		2012
Gross revenues		$	1,296	$	1,734	$	2,138
Operating expense			(749)		(1,287)		(1,801)
Income from operations			547		447		337
Interest expenses			(298)		(251)		(218)
Net income/Earnings(1)			291		222		(52)

				At December 31,
				2014		2013
Current assets				$	865	$	653
Noncurrent assets					13,161		9,439
Current liabilities					1,131		373
Noncurrent liabilities					6,228		4,547
(1)	Except for Gasoductos de Chihuahua, Energía Sierra Juárez, Eletrans and the Argentine investments, there was no income tax recorded by the entities, as they are primarily domestic partnerships.

DEBT AND CREDIT FACILITIES

12 Months Ended

Dec. 31, 2014

Notes to Consolidated Financial Statements [Abstract]

Debt and Credit Facilities

NOTE 5. DEBT AND CREDIT FACILITIES

LINES OF CREDIT

At December 31, 2014, Sempra Energy Consolidated had an aggregate of $4.1 billion in three primary committed lines of credit for Sempra Energy, Sempra Global and the California Utilities to provide liquidity and to support commercial paper, the major components of which we detail below. Available unused credit on these lines at December 31, 2014 was $2.4 billion. Some of Sempra Energy’s subsidiaries, primarily our foreign operations, have additional general purpose credit facilities, aggregating $865 million at December 31, 2014. Available unused credit on these lines totaled $536 million at December 31, 2014.

Sempra Energy

Sempra Energy has a $1.067 billion, five-year syndicated revolving credit agreement expiring in March 2017. Citibank, N.A. serves as administrative agent for the syndicate of 24 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. At December 31, 2014 and 2013, Sempra Energy was in compliance with this and all other financial covenants under the credit facility. The facility also provides for issuance of up to $635 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 December 31, 2014, Sempra Energy had no outstanding borrowings or letters of credit supported by the facility.

Sempra Global

Sempra Global has a $2.189 billion, five-year syndicated revolving credit agreement expiring in March 2017. Citibank, N.A. serves as administrative agent for the syndicate of 25 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 December 31, 2014 and 2013, Sempra Energy was in compliance with this and all other financial covenants under the credit facility.

At December 31, 2014, Sempra Global had $1.3 billion of commercial paper outstanding supported by the facility. At December 31, 2013, Sempra Global had $200 million of commercial paper outstanding 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. This classification has no impact on cash flows.

California Utilities

SDG&E and SoCalGas have a combined $877 million, five-year syndicated revolving credit agreement expiring in March 2017. JPMorgan Chase Bank, N.A. serves as administrative agent for the syndicate of 24 lenders. No single lender has greater than a 7-percent share. The agreement permits each utility to individually borrow up to $658 million, subject to a combined limit of $877 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 $300 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. At December 31, 2014 and 2013, the California Utilities were in compliance with this and all other financial covenants under the credit facility.

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 December 31, 2014, SDG&E and SoCalGas had $346 million and $50 million of commercial paper outstanding supported by the facility. Available unused credit on the line at December 31, 2014 was $312 million and $481 million at SDG&E and SoCalGas, respectively. SoCalGas’ availability reflects the impact of SDG&E’s use as of December 31, 2014 of the combined credit available on the line.

Sempra Mexico

In June 2014, IEnova entered into an agreement for a $200 million, U.S. dollar-denominated, three-year corporate revolving credit facility to finance working capital and for general corporate purposes. The lender is Banco Santander, (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander Mexico. At December 31, 2014, IEnova had $145 million of outstanding borrowings supported by the facility, and available unused credit on the line was $55 million.

In August 2014, IEnova entered into an agreement for a $100 million, U.S. dollar-denominated, three-year corporate revolving credit facility to finance working capital and for general corporate purposes. The lender is Sumitomo Mitsui Banking Corporation. At December 31, 2014, IEnova had $51 million of outstanding borrowings supported by the facility, and available unused credit on the line was $49 million.

GUARANTEES

Sempra Renewables

Sempra Renewables and BP Wind Energy each currently hold 50-percent interests in Flat Ridge 2. The project obtained construction financing in December 2012, and proceeds from the loans were used to return $148 million of each owner’s joint venture investment in 2012. In March 2013, the construction financing was converted into permanent financing consisting of a term loan and a fixed-rate note. The term loan of $242 million expires in June 2023 and the fixed rate note of $110 million expires in June 2035. The financing agreement requires Sempra Renewables and BP Wind Energy, severally for each partner’s 50-percent interest, 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, operation and maintenance and firm transmission and production tax credits reserve accounts are not maintained at specific thresholds. Sempra Renewables recorded a liability of $3 million in 2013 for the fair value of its obligations associated with the cash flow requirements, which constitutes a guarantee. The liability is being amortized over its expected life. The outstanding loans are not guaranteed by the partners.

Sempra Renewables and BP Wind Energy each currently hold 50-percent interests in Mehoopany Wind. The project obtained construction financing in June 2012, and proceeds from the loans were used to return $13 million and $17 million of each owner’s joint venture investment in 2013 and 2012, respectively. In May 2013, the construction financing was converted into permanent financing consisting of a term loan. The term loan of $162 million expires in May 2031. The financing agreement requires Sempra Renewables and BP Wind Energy, severally for each partner’s 50-percent interest, 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, operation and maintenance and production tax credits reserve accounts are not maintained at specific thresholds. Additionally, in conjunction with the term loan conversion, Sempra Renewables and BP Wind Energy have provided guarantees to the lenders in lieu of Mehoopany Wind funding a reserve account requirement. Sempra Renewables recorded liabilities of $11 million in 2013 for the fair value of its obligations associated with the cash flow and reserve account requirements, which constitute guarantees. The liabilities are being amortized over their expected lives. The outstanding loans are not guaranteed by the partners.

Sempra Natural Gas

Sempra Energy entered into completion guarantees related to the financing of the Cameron LNG project, as we discuss in Note 4.

WEIGHTED AVERAGE INTEREST RATES

The weighted average interest rates on the total short-term debt outstanding at Sempra Energy Consolidated were 0.70 percent and 0.64 percent at December 31, 2014 and 2013, respectively. The weighted average interest rate on the total short-term debt outstanding was 0.27 percent and 0.25 percent at December 31, 2014 at SDG&E and SoCalGas, respectively. The weighted average interest rate at Sempra Energy at December 31, 2013 includes interest rates for the $200 million of commercial paper borrowings supported by the Sempra Global credit facility classified as long-term, as we discuss above.

LONG-TERM DEBT

The following tables show the detail and maturities of long-term debt outstanding:

LONG-TERM DEBT
(Dollars in millions)
		December 31,
		2014		2013
SDG&E
First mortgage bonds:
	5.3% November 15, 2015	$	250	$	250
	1.65% July 1, 2018(1)		161		161
	3% August 15, 2021		350		350
	3.6% September 1, 2023		450		450
	6% June 1, 2026		250		250
	5% to 5.25% December 1, 2027(1)		150		150
	5.875% January and February 2034(1)		176		176
	5.35% May 15, 2035		250		250
	6.125% September 15, 2037		250		250
	4% May 1, 2039(1)		75		75
	6% June 1, 2039		300		300
	5.35% May 15, 2040		250		250
	4.5% August 15, 2040		500		500
	3.95% November 15, 2041		250		250
	4.3% April 1, 2042		250		250
			3,912		3,912
Other long-term debt (unsecured unless otherwise noted):
	5.9% Notes June 1, 2014		―		15
	5.3% Notes July 1, 2021(1)		39		39
	5.5% Notes December 1, 2021(1)		60		60
	4.9% Notes March 1, 2023(1)		25		25
	5.2925% OMEC LLC loan
	payable 2013 through April 2019 (secured by plant assets)		325		335
	366-day commercial paper borrowings May 2015, classified as long-term debt
	(0.40% weighted average at December 31, 2014)		100		―
Capital lease obligations:
	Purchased-power agreements		233		176
	Other		1		3
			783		653
			4,695		4,565
Current portion of long-term debt			(365)		(29)
Unamortized discount on long-term debt			(11)		(11)
Total SDG&E			4,319		4,525

SoCalGas
First mortgage bonds:
	5.5% March 15, 2014		―		250
	5.45% April 15, 2018		250		250
	3.15% September 15, 2024		500		―
	5.75% November 15, 2035		250		250
	5.125% November 15, 2040		300		300
	3.75% September 15, 2042		350		350
	4.45% March 15, 2044		250		―
			1,900		1,400
Other long-term debt (unsecured):
	4.75% Notes May 14, 2016(1)		8		8
	5.67% Notes January 18, 2028		5		5
Capital lease obligations			1		2
			14		15
			1,914		1,415
Current portion of long-term debt			―		(252)
Unamortized discount on long-term debt			(8)		(4)
Total SoCalGas			1,906		1,159

LONG-TERM DEBT (CONTINUED)
(Dollars in millions)
		December 31,
		2014		2013
Sempra Energy
Other long-term debt (unsecured):
	2% Notes March 15, 2014		―		500
	Notes at variable rates (1.01% at December 31, 2013) March 15, 2014		―		300
	6.5% Notes June 1, 2016, including $300 at variable rates after fixed-to-floating
	rate swaps effective January 2011 (4.44% at December 31, 2014)		750		750
	2.3% Notes April 1, 2017		600		600
	6.15% Notes June 15, 2018		500		500
	9.8% Notes February 15, 2019		500		500
	2.875% Notes October 1, 2022		500		500
	4.05% Notes December 1, 2023		500		500
	3.55% Notes June 15, 2024		500		―
	6% Notes October 15, 2039		750		750
Market value adjustments for interest rate swaps, net			―		12
Build-to-suit lease(2)			75		14
Sempra Global
Other long-term debt (unsecured):
	Commercial paper borrowings at variable rates, classified as long-term debt
	(0.35% weighted average at December 31, 2013)		―		200
Sempra South American Utilities
Other long-term debt (unsecured):
Chilquinta Energía
	4.25% Series B Bonds October 30, 2030(1)		192		209
Luz del Sur
	Bank loans 5.05% to 6.41% payable 2016 through December 2018		91		70
	Notes at 4.75% to 7.41% payable 2014 through September 2029		345		292
	Other bonds at 3.77% to 4.59% payable 2020 through May 2022		10		―
Sempra Mexico
Other long-term debt (unsecured):
	Notes February 8, 2018 at variable rates (2.66% after floating-to-fixed rate cross-currency
	swaps effective February 2013)		88		100
	6.3% Notes February 2, 2023 (4.12% after cross-currency swap)		265		298
	Notes at variable rates (1.28% at December 31, 2014) August 25, 2017(1)(3)		51		―
Sempra Renewables
Other long-term debt (secured):
	Loan at variable rates payable 2014 through December 2028, including $74 at 4.54%
	after floating-to-fixed rate swaps effective June 2012 (2.74% at December 31, 2014)(1)		97		104
Sempra Natural Gas
First mortgage bonds (Mobile Gas):
	4.14% September 30, 2021		20		20
	5% September 30, 2031		42		42
Other long-term debt (unsecured unless otherwise noted):
	Notes at 2.87% to 3.51% October 1, 2016(1)		19		18
	8.45% Notes payable 2014 through December 2017, secured		16		21
	3.1% Notes December 30, 2018, secured(1)		5		5
	4.5% Notes July 1, 2024, secured(1)		77		77
	Industrial development bonds at variable rates (0.05% at December 31, 2014)
	August 1, 2037, secured(1)		55		55
			6,048		6,437
Current portion of long-term debt			(104)		(866)
Unamortized discount on long-term debt			(9)		(9)
Unamortized premium on long-term debt			7		7
Total other Sempra Energy			5,942		5,569
Total Sempra Energy Consolidated		$	12,167	$	11,253
(1)	Callable long-term debt not subject to make-whole provisions.
(2)	We discuss this lease in Note 15.
(3)	Classified as current portion of long-term debt.

MATURITIES OF LONG-TERM DEBT(1)
(Dollars in millions)
								Total
						Other		Sempra
						Sempra		Energy
		SDG&E		SoCalGas		Energy		Consolidated
2015		$	360	$	―	$	96	$	456
2016			10		8		845		863
2017			10		―		670		680
2018			171		250		638		1,059
2019			285		―		537		822
Thereafter			3,625		1,655		3,187		8,467
Total		$	4,461	$	1,913	$	5,973	$	12,347
(1)	Excludes capital lease obligations, build-to-suit lease and market value adjustments for interest rate swaps.

Various long-term obligations totaling $5.9 billion at Sempra Energy at December 31, 2014 are unsecured. This includes unsecured long-term obligations totaling $224 million at SDG&E and $13 million at SoCalGas.

CALLABLE LONG-TERM DEBT

At the option of Sempra Energy, SDG&E and SoCalGas, certain debt is callable subject to premiums:

CALLABLE LONG-TERM DEBT
(Dollars in millions)
							Total
					Other		Sempra
					Sempra		Energy
	SDG&E		SoCalGas		Energy		Consolidated
Not subject to make-whole provisions	$	686	$	8	$	496	$	1,190
Subject to make-whole provisions		3,350		1,900		4,678		9,928

In addition, the OMEC LLC project financing loan discussed in Note 1, with $325 million of outstanding borrowings at December 31, 2014, may be prepaid at the borrowers’ option.

FIRST MORTGAGE BONDS

The California Utilities issue first mortgage bonds secured by a lien on utility plant. The California Utilities may issue additional first mortgage bonds upon compliance with the provisions of their bond agreements (indentures). These indentures require, among other things, the satisfaction of pro forma earnings-coverage tests on first mortgage bond interest and the availability of sufficient mortgaged property to support the additional bonds, after giving effect to prior bond redemptions. The most restrictive of these tests (the property test) would permit the issuance, subject to CPUC authorization, of an additional $4.3 billion of first mortgage bonds at SDG&E and $0.9 billion at SoCalGas at December 31, 2014.

In September 2014, SoCalGas publicly offered and sold $500 million of 3.15-percent first mortgage bonds maturing in 2024. SoCalGas used the proceeds from this offering for the repayment of commercial paper and other general corporate purposes.

In March 2014, SoCalGas publicly offered and sold $250 million of 4.45-percent first mortgage bonds maturing in 2044. SoCalGas used the proceeds from this offering for the repayment of its 5.5-percent first mortgage bonds that matured in March 2014.

INDUSTRIAL DEVELOPMENT BONDS

Sempra Natural Gas

To secure an approved exemption from sales and use tax, Sempra Natural Gas has incurred through December 31, 2014, $257 million ($3 million in 2013, $53 million in 2012, $84 million in 2011, $42 million in 2010 and $75 million in 2009) out of a maximum available $265 million of long-term debt related to the construction and equipping of its Mississippi Hub natural gas storage facility. After a redemption of $180 million in December 2011, the debt balance remaining at December 31, 2014 is $77 million. The debt is payable to the Mississippi Business Finance Corporation (MBFC), and we recorded bonds receivable from the MBFC for the same amount. Both the financing obligation and the bonds receivable have interest rates of 4.5 percent and are due on July 1, 2024.

OTHER LONG-TERM DEBT

Sempra Energy

In June 2014, Sempra Energy publicly offered and sold $500 million of 3.55-percent, fixed rate notes maturing in 2024. Sempra Energy used the proceeds from this offering for the repayment of commercial paper.

SDG&E

In the second quarter of 2014, SDG&E issued $100 million of commercial paper maturing in May 2015, that is supported by the California Utilities’ credit facility discussed above and has a weighted average interest rate of 0.40 percent at December 31, 2014.

Sempra South American Utilities

Luz del Sur has outstanding corporate bonds and bank loans which are denominated in the local currency. During 2014, Luz del Sur publicly offered and sold $30 million of corporate bonds at 7.41 percent maturing in 2022, $50 million of corporate bonds at 6.69 percent maturing in 2024 and $50 million of corporate bonds at 6.88 percent maturing in 2029. Additionally, Luz del Sur drew bank loans in 2014 as follows:

2014 BANK LOAN DRAWS – LUZ DEL SUR
(Dollars in millions)
	Amount at
Month issued	issuance		Interest rate	Maturity date
March	$	7	5.10%	June 22, 2015
March		14	5.35%	September 24, 2015
October		31	5.05%	July 15, 2016
October		36	6.00%	December 27, 2016

Sempra Mexico

In June 2014, Energía Sierra Juárez entered into a $240 million loan to project finance the construction of the wind project. The variable rate loan is secured by the project and will convert to an 18-year term loan upon completion of the first phase of the project. To partially moderate its exposure to interest rate changes associated with the term loan, Energía Sierra Juárez entered into floating-to-fixed interest rate swaps for 90 percent of the loan amount, which will result in an effective fixed rate of 6.1 percent. The swap is effective on the conversion to a term loan. The remaining 10 percent of principal bears interest at rates varying with market rates (0.16 percent at December 31, 2014). The loan agreement also provides for a $31.7 million letter of credit facility. Energía Sierra Juárez also entered into a separate, Peso-denominated credit facility for up to $35 million U.S. dollar equivalent to fund the value added tax of the project. On June 12, 2014, Energía Sierra Juárez drew down $82 million of the construction loan. On July 16, 2014, this $82 million of long-term debt and the related swaps were deconsolidated upon the sale of a 50-percent interest in Energía Sierra Juárez, as we discuss in Note 3.

Sempra Renewables

On October 30, 2014, Sempra Renewables completed a private offering of an aggregate of $72 million in principal amount of 4.82-percent fixed rate notes maturing in 2039. Proceeds from this offering were used to finance its Broken Bow 2 Wind project. On November 5, 2014, this $72 million of long-term debt was deconsolidated upon the sale of a 50-percent interest in Broken Bow 2 Wind to ConEdison Development, which we discuss in Note 3.

On March 6, 2014, Sempra Renewables entered into a $356 million construction loan to finance its Copper Mountain Solar 3 project. The loan is secured by the project and will convert to a 10-year term loan upon completion of the project. To partially moderate its exposure to interest rate changes, Copper Mountain Solar 3 entered into floating-to-fixed interest rate swaps for 75 percent of the loan amount, resulting in an effective fixed rate of 5.35 percent. The remaining 25 percent bears interest at rates varying with market rates (0.16 percent at December 31, 2014). In connection with the loan agreement, Copper Mountain Solar 3 may also utilize up to $72 million under a letter of credit facility, which may be used to meet project collateral requirements and debt service reserve requirements. On March 6, 2014, Copper Mountain Solar 3 drew down $97 million from the loan. On March 13, 2014, this $97 million of long-term debt and the related swaps were deconsolidated upon the sale of a 50-percent interest in Copper Mountain Solar 3, as we discuss in Note 3.

INTEREST RATE SWAPS

We discuss our fair value interest rate swaps and interest rate swaps to hedge cash flows in Note 9.

INCOME TAXES

12 Months Ended

Dec. 31, 2014

Notes to Consolidated Financial Statements [Abstract]

Income Taxes

NOTE 6. INCOME TAXES

Reconciliation of net U.S. statutory federal income tax rates to the effective income tax rates is as follows:

RECONCILIATION OF FEDERAL INCOME TAX RATES TO EFFECTIVE INCOME TAX RATES

	Years ended December 31,
	2014		2013		2012
Sempra Energy Consolidated:
U.S. federal statutory income tax rate	35	%	35	%	35	%
Utility depreciation	5		4		6
U.S. tax on repatriation of foreign earnings	2		―		―
Income tax restructuring related to IEnova stock offerings	―		4		―
State income taxes, net of federal income tax benefit	―		1		(1)
Utility repairs expenditures	(5)		(5)		(8)
Tax credits	(4)		(3)		(7)
Self-developed software expenditures	(3)		(3)		(5)
Non-U.S. earnings taxed at lower statutory income tax rates	(2)		(3)		(4)
Allowance for equity funds used during construction	(2)		(1)		(4)
Foreign exchange and inflation effects	(2)		―		1
Adjustments to prior years’ income tax items	(1)		(3)		(1)
International tax reform	(1)		1		―
Life insurance contracts	―		―		(7)
Other, net	(2)		(1)		1
Effective income tax rate	20	%	26	%	6	%
SDG&E:
U.S. federal statutory income tax rate	35	%	35	%	35	%
State income taxes, net of federal income tax benefit	5		3		4
Depreciation	4		5		4
SONGS tax regulatory asset write-off	2		―		―
Utility repairs expenditures	(4)		(4)		(4)
Self-developed software expenditures	(3)		(3)		(3)
Allowance for equity funds used during construction	(2)		(2)		(4)
Adjustments to prior years’ income tax items	(2)		(1)		(3)
Variable interest entity	(1)		(1)		(1)
Other, net	―		(1)		(1)
Effective income tax rate	34	%	31	%	27	%
SoCalGas:
U.S. federal statutory income tax rate	35	%	35	%	35	%
Depreciation	8		6		7
State income taxes, net of federal income tax benefit	4		4		3
Utility repairs expenditures	(9)		(9)		(12)
Self-developed software expenditures	(5)		(6)		(9)
Adjustments to prior years’ income tax items	(2)		(5)		―
Allowance for equity funds used during construction	(2)		(1)		(2)
Other, net	―		―		(1)
Effective income tax rate	29	%	24	%	21	%

In 2014, 2013 and 2012, non-U.S. earnings taxed at lower statutory income tax rates than the U.S. are primarily related to operations in Mexico, Chile and Peru.

In 2014, our effective income tax rate was affected by a $25 million tax benefit due to the release of a Louisiana valuation allowance against a deferred tax asset associated with Cameron LNG developments. This benefit is included in “State Income Taxes, Net of Federal Income Tax Benefit” in the table above.

In addition, the effective income tax rates for Sempra Energy Consolidated and SDG&E were impacted in 2014 by a $17 million charge to reduce certain tax regulatory assets attributed to SDG&E’s investment in SONGS pursuant to a settlement agreement to resolve the CPUC’s Order Instituting Investigation (OII) into the SONGS outage that we discuss in Note 13.

Foreign exchange and inflation effects for Sempra Energy Consolidated in 2014 are primarily due to significant devaluation of the Mexican peso against the U.S. dollar in 2014.

In 2013, our effective income tax rate was affected by $63 million of income tax expense recorded in the first quarter of 2013 resulting from a corporate reorganization in connection with the IEnova stock offerings.

Utility repairs expenditures significantly affecting the effective income tax rates for Sempra Energy Consolidated, SDG&E and SoCalGas in 2014, 2013 and 2012 are due to a change in 2012 in the income tax treatment of certain repairs that are capitalized for financial statement purposes. The change in income tax treatment of certain repairs for electric transmission and distribution assets, which applied to SDG&E, was made pursuant to an Internal Revenue Service (IRS) Revenue Procedure providing a safe harbor for deducting certain repairs expenditures from taxable income when incurred for tax years beginning on or after January 1, 2011. The change in income tax treatment of certain repairs expenditures for gas plant assets, which applied to SoCalGas, was made pursuant to an IRS Revenue Procedure, which allows, under an Internal Revenue Code section, such expenditures to be deducted from taxable income when incurred.

Life insurance contracts significantly affected the effective tax rate for Sempra Energy Consolidated in 2012 primarily due to our decision in the second quarter of 2012 to hold life insurance contracts kept in support of certain benefit plans to term. Previously, we took the position that we might cash in or sell these contracts before maturity, which required that we record deferred income taxes on unrealized gains on investments held within the insurance contracts.

In September 2013, the IRS and U.S. Department of the Treasury released final tangible property regulations on the capitalization and expensing rules applicable to expenditures for the acquisition and production of tangible property. Companies were required to conform their tax accounting methods and elect any safe harbors under the final regulations no later than the tax year beginning on January 1, 2014. Additionally, if a change in the company’s tax accounting methods was required to conform to the final regulations, the company was also required to adjust its deferred tax balances at December 31, 2013 for any tax adjustments required to bring all prior periods into compliance with the final regulations. We evaluated our tax accounting methods and deferred tax balances based on the guidance contained in the final tangible property regulations and determined that we are following the guidance in all material respects. Any adjustments to deferred taxes resulting from changes to comply with the final tangible property regulations would have a de minimis impact on the financial statements. Accordingly, we did not make any adjustment to our deferred tax balances at December 31, 2014 or December 31, 2013 based on the issuance of the final tangible property regulations.

For SDG&E and SoCalGas, the CPUC requires flow-through rate-making treatment for the current income tax benefit or expense arising from certain property-related and other temporary differences between the treatment for financial reporting and income tax, which will reverse over time. Under the regulatory accounting treatment required for these flow-through temporary differences, deferred income tax assets and liabilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which results in impacting the current effective income tax rate. As a result, changes in the relative size of these items compared to pretax income, from period to period, can cause variations in the effective income tax rate. The following items are subject to flow-through treatment:

repairs expenditures related to a certain portion of utility plant fixed assets
the equity portion of AFUDC
a portion of the cost of removal of utility plant assets
self-developed software expenditures

depreciation on a certain portion of utility plant assets

The AFUDC related to equity recorded for regulated construction projects at Sempra Mexico and Sempra Natural Gas has similar flow-through treatment.

We use the deferral method for investment tax credits (ITC). For certain solar and wind generating assets placed into service during 2012, we elected to seek cash grants rather than ITC for which the projects also qualify. Accordingly, cash grant accounting was applied. Grant accounting for cash grants is very similar to the deferral method of accounting for ITC, the primary difference being the recording of a cash grant receivable instead of an income tax receivable.

Under the deferral method of accounting for ITC and under grant accounting for cash grants, we record a deferred income tax benefit, on day one, which is reflected in income tax expense by recording a deferred income tax asset during the year the renewable energy assets are placed in service. This deferred income tax asset results from the day-one difference in the income tax basis and financial statement basis of the renewable energy assets, referred to as the day-one basis difference. The financial statement basis of the assets is reduced by 100 percent of the ITC or grant expected; U.S. federal income tax basis is reduced by only 50 percent for both ITC and grants; and state income tax basis is reduced by 50 percent for grants and not at all for ITC.

Conversion of ITC to cash is generally dependent on reducing income tax payments and thus the existence of a U.S. federal net operating loss (NOL) carryforward can result in delaying this conversion.

The geographic components of Income Before Income Taxes and Equity Earnings of Certain Unconsolidated Subsidiaries at Sempra Energy are as follows:

	Years ended December 31,
(Dollars in millions)	2014		2013		2012
U.S.	$	1,014	$	941	$	442
Non-U.S.		510		489		501
Total	$	1,524	$	1,430	$	943

The components of income tax expense are as follows:

INCOME TAX EXPENSE (BENEFIT)
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012
Sempra Energy Consolidated:
Current:
U.S. Federal	$	(10)	$	(70)	$	(36)
U.S. State		(7)		(5)		(6)
Non-U.S.		171		107		144
Total		154		32		102
Deferred:
U.S. Federal		237		275		(63)
U.S. State		4		15		3
Non-U.S.		(91)		48		20
Total		150		338		(40)
Deferred investment tax credits		(4)		(4)		(3)
Total income tax expense	$	300	$	366	$	59
SDG&E:
Current:
U.S. Federal	$	(5)	$	9	$	(109)
U.S. State		52		11		14
Total		47		20		(95)
Deferred:
U.S. Federal		220		149		255
U.S. State		5		24		30
Total		225		173		285
Deferred investment tax credits		(2)		(2)		―
Total income tax expense	$	270	$	191	$	190
SoCalGas:
Current:
U.S. Federal	$	2	$	4	$	(73)
U.S. State		7		(5)		24
Total		9		(1)		(49)
Deferred:
U.S. Federal		117		103		136
U.S. State		15		16		(6)
Total		132		119		130
Deferred investment tax credits		(2)		(2)		(2)
Total income tax expense	$	139	$	116	$	79

We show the components of deferred income taxes at December 31 for Sempra Energy Consolidated, SDG&E and SoCalGas in the tables below:

DEFERRED INCOME TAXES FOR SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		December 31,
		2014		2013
Deferred income tax liabilities:
Differences in financial and tax bases of depreciable and amortizable assets		$	4,074	$	3,951
Regulatory balancing accounts			915		663
Property taxes			57		50
Differences in financial and tax bases of partnership interests(1)			650		256
Other deferred income tax liabilities			53		95
Total deferred income tax liabilities			5,749		5,015
Deferred income tax assets:
Tax credits			276		105
Equity losses			40		16
Net operating losses			1,908		2,023
Compensation-related items			244		128
Postretirement benefits			433		264
Other deferred income tax assets			97		22
State income taxes			19		30
Litigation and other accruals not yet deductible			73		20
Deferred income tax assets before valuation allowances			3,090		2,608
Less: valuation allowances			39		96
Total deferred income tax assets			3,051		2,512
Net deferred income tax liability(2)		$	2,698	$	2,503
(1)	Amounts primarily represent differences in financial and tax bases of depreciable and amortizable assets within our partnerships.
(2)	Our policy is to show deferred income taxes of VIEs on a net basis, including valuation allowances. See table “Amounts Associated with Otay Mesa VIE” in Note 1 for further information.

DEFERRED INCOME TAXES FOR SDG&E AND SOCALGAS
(Dollars in millions)
		SDG&E				SoCalGas
		December 31,				December 31,
		2014		2013		2014		2013
Deferred income tax liabilities:
Differences in financial and tax bases of
utility plant and other assets		$	2,181	$	2,040	$	1,194	$	1,045
Regulatory balancing accounts			441		411		481		265
Property taxes			39		36		18		16
Other			5		28		10		6
Total deferred income tax liabilities			2,666		2,515		1,703		1,332
Deferred income tax assets:
Net operating losses			297		440		64		65
Postretirement benefits			85		57		261		126
Compensation-related items			8		13		40		38
State income taxes			27		22		11		10
Litigation and other accruals not yet deductible			39		45		23		27
Other			36		20		39		28
Total deferred income tax assets			492		597		438		294
Net deferred income tax liability(1)		$	2,174	$	1,918	$	1,265	$	1,038
(1)	Our policy is to show deferred income taxes of VIEs on a net basis, including valuation allowances. See table “Amounts Associated with Otay Mesa VIE” in Note 1 for further information.

The net deferred income tax liabilities are recorded on the Consolidated Balance Sheets at December 31 as follows:

NET DEFERRED INCOME TAX LIABILITY
(Dollars in millions)
	Sempra Energy
	Consolidated				SDG&E				SoCalGas
	2014		2013		2014		2013		2014		2013
Current (asset) liability	$	(305)	$	(301)	$	53	$	(103)	$	53	$	45
Noncurrent liability		3,003		2,804		2,121		2,021		1,212		993
Total	$	2,698	$	2,503	$	2,174	$	1,918	$	1,265	$	1,038

At December 31, 2014, Sempra Energy has recorded a valuation allowance against a portion of its total deferred income tax assets, as shown above in the “Deferred Income Taxes for Sempra Energy Consolidated” table. A valuation allowance is recorded when, based on more-likely-than-not criteria, negative evidence outweighs positive evidence with regard to our ability to realize a deferred income tax asset in the future. Of the valuation allowances recorded to date, the negative evidence outweighs the positive evidence primarily due to cumulative pretax losses in various U.S. state and non-U.S. jurisdictions resulting in a deferred income tax asset related to NOLs, as discussed below, that we currently do not believe will be realized on a more-likely-than-not basis. At both Sempra Energy and SDG&E, deferred income taxes for variable interest entities are shown on a net basis. Therefore, valuation allowances of $48 million at December 31, 2014 and $60 million at December 31, 2013 related to variable interest entities are not reflected in the table above. Of Sempra Energy’s total valuation allowance of $39 million at December 31, 2014, $8 million is related to non-U.S. NOLs and $31 million to U.S. state NOLs. Of Sempra Energy’s total valuation allowance of $96 million at December 31, 2013, $12 million is related to non U.S. NOLs and $84 million to U.S. state NOLs. The total valuation allowance decreased in 2014 primarily due to release of a Louisiana valuation allowance against a deferred tax asset associated with Cameron LNG developments and expiration of the carryover periods of certain U.S. state and non-U.S. NOLs.

Sempra Energy’s U.S. subsidiaries had $4.9 billion of unused U.S. federal consolidated NOLs that will begin to expire in 2031, $182 million of unused U.S. federal consolidated general business tax credits that will begin to expire in 2032 and $52 million of unused foreign tax credits that expire in 2024. Included in the NOL amount is $266 million of excess tax deductions related to employee stock expense for which a benefit will be recorded to additional paid in capital when realized. When assessing whether a tax benefit relating to employee stock expense has been realized, we follow the tax law ordering method, under which current year share-based compensation deductions are assumed to be utilized before net operating loss carryforwards and other tax attributes. We have recorded deferred income tax benefits on these NOLs, and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not basis.

At December 31, 2014, SDG&E had $867 million of unused U.S. federal NOL which expires in 2032 and $12 million of unused U.S. federal general business tax credits which begin to expire in 2031. At December 31, 2014, SoCalGas had $210 million of unused U.S. federal NOLs which begin to expire in 2032 and $11 million of unused U.S. federal general business tax credits which begin to expire in 2031. We have recorded deferred income tax benefits on these NOLs and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not basis.

Sempra Energy’s U.S. subsidiaries had $2.7 billion of unused U.S. state NOLs, primarily in Alabama, California, Connecticut, District of Columbia, Indiana, Kansas, Louisiana, Minnesota, Missouri, Mississippi, Nebraska and Pennsylvania. These U.S. state NOLs expire between 2015 and 2034. We have not recorded deferred income tax benefits on a portion of Sempra Energy’s total U.S. state NOLs because we currently believe they will not be realized on a more-likely-than-not basis, as discussed above. Sempra Natural Gas and its project partners are currently developing a natural gas liquefaction export facility at the Cameron LNG terminal in Louisiana. In 2014 we released $25 million of a Louisiana valuation allowance against a deferred tax asset associated with Cameron LNG developments. Sempra Energy’s U.S. subsidiaries also had $31 million of unused U.S. state general business tax credits that begin to expire in 2016. We have recorded deferred income tax benefits on these tax credits, in total, because we currently believe they will be realized on a more-likely-than-not basis.

At December 31, 2014, Sempra Energy’s non-U.S. subsidiaries had $312 million of unused NOLs available to utilize in the future to reduce Sempra Energy’s future non-U.S. income tax expense related to our companies in Mexico and the Netherlands. The carryforward periods for our non-U.S. unused NOLs expire between 2015 and 2024. We have not recorded deferred income tax benefits on a portion of Sempra Energy’s total non-U.S. NOLs because we currently believe they will not be realized on a more-likely-than-not basis, as discussed above.

At December 31, 2014, Sempra Energy had not recognized a U.S. deferred income tax liability related to a $3.6 billion basis difference between its financial statement and income tax investment amount in its non-U.S. subsidiaries and non-U.S. corporate joint ventures. This basis difference consists of $3.6 billion of cumulative undistributed earnings that we expect to reinvest indefinitely outside of the U.S. These cumulative undistributed earnings have previously been reinvested or will be reinvested in active non-U.S. operations, thus we do not intend to use these earnings as a source of funding for U.S. operations. It is not practical to determine the hypothetical unrecognized amount of U.S. deferred income taxes that might be payable if the cumulative undistributed earnings were eventually distributed or the investments were sold.

Following is a summary of unrecognized income tax benefits:

SUMMARY OF UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012
Sempra Energy Consolidated:
Total	$	117	$	90	$	82
Of the total, amounts related to tax positions that,
if recognized in future years, would
decrease the effective tax rate	$	(114)	$	(86)	$	(81)
increase the effective tax rate		21		19		16
SDG&E:
Total	$	14	$	17	$	12
Of the total, amounts related to tax positions that,
if recognized in future years, would
decrease the effective tax rate	$	(11)	$	(14)	$	(12)
increase the effective tax rate		6		11		12
SoCalGas:
Total	$	19	$	13	$	5
Of the total, amounts related to tax positions that,
if recognized in future years, would
decrease the effective tax rate	$	(19)	$	(13)	$	(5)
increase the effective tax rate		15		8		4

Following is a reconciliation of the changes in unrecognized income tax benefits for the years ended December 31:

RECONCILIATION OF UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
	2014		2013		2012
Sempra Energy Consolidated:
Balance as of January 1	$	90	$	82	$	72
Increase in prior period tax positions		37		26		2
Decrease in prior period tax positions		―		(24)		(1)
Increase in current period tax positions		5		7		10
Settlements with taxing authorities		(15)		(1)		(1)
Balance as of December 31	$	117	$	90	$	82
SDG&E:
Balance as of January 1	$	17	$	12	$	7
Increase in prior period tax positions		2		7		1
Decrease in prior period tax positions		―		(4)		―
Increase in current period tax positions		―		2		4
Settlements with taxing authorities		(5)		―		―
Balance as of December 31	$	14	$	17	$	12
SoCalGas:
Balance as of January 1	$	13	$	5	$	―
Increase in prior period tax positions		2		4		―
Increase in current period tax positions		4		5		5
Settlements with taxing authorities		―		(1)		―
Balance as of December 31	$	19	$	13	$	5

It is reasonably possible that within the next 12 months, unrecognized income tax benefits could decrease due to the following:

POSSIBLE DECREASES IN UNRECOGNIZED INCOME TAX BENEFITS WITHIN 12 MONTHS
(Dollars in millions)
	At December 31,
	2014		2013		2012
Sempra Energy Consolidated:
Expiration of statutes of limitations on tax assessments	$	―	$	(7)	$	(7)
Potential resolution of audit issues with various
U.S. federal, state and local and non-U.S. taxing authorities		(61)		(63)		(10)
	$	(61)	$	(70)	$	(17)
SDG&E:
Potential resolution of audit issues with various
U.S. federal, state and local and non-U.S. taxing authorities	$	(9)	$	(14)	$	(5)
SoCalGas:
Potential resolution of audit issues with various
U.S. federal, state and local and non-U.S. taxing authorities	$	(15)	$	(11)	$	(4)

Amounts accrued for interest and penalties associated with unrecognized income tax benefits are included in income tax expense on the Consolidated Statements of Operations. We summarize the amounts accrued at December 31 on the Consolidated Balance Sheets for interest and penalties associated with unrecognized income tax benefits and the related expense in the table below

INTEREST AND PENALTIES ASSOCIATED WITH UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
	Interest and penalties						Accrued interest and penalties
	Years ended December 31,						December 31,
	2014		2013		2012		2014		2013
Sempra Energy Consolidated:
Interest (income) expense	$	(4)	$	1	$	―	$	―	$	4
Penalties		(3)		―		―		―		3
SDG&E:
Interest (income) expense	$	(1)	$	―	$	―	$	―	$	1
SoCalGas:
Interest income	$	―	$	(1)	$	―	$	―	$	―

Penalties accrued and expensed at SDG&E and SoCalGas in all periods presented were zero or negligible.

INCOME TAX AUDITS

Sempra Energy is subject to U.S. federal income tax as well as to income tax of multiple state and non-U.S. jurisdictions. We remain subject to examination for U.S. federal tax years after 2010. We are subject to examination by major state tax jurisdictions for tax years after 2008. Certain major non-U.S. income tax returns for tax years 2008 through the present are open to examination.

In addition, we intend to file federal refund claims for the 2009 and 2010 tax years during the first half of 2015; however, no additional tax may be assessed by the Internal Revenue Service for pre-2011 tax years. We have also filed state refund claims for tax years back to 1998. The pre-2009 tax years for our major state tax jurisdictions are closed to new issues; therefore, no additional tax may be assessed by the taxing authorities for these tax years.

SDG&E and SoCalGas are subject to U.S. federal income tax as well as income tax of state jurisdictions. They remain subject to examination for U.S. federal tax years after 2010 and by major state tax jurisdictions for tax years after 2008.

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2014

Notes to Consolidated Financial Statements [Abstract]

Employee Benefit Plans

NOTE 7. EMPLOYEE BENEFIT PLANS

We are required by applicable U.S. GAAP to:

recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status in the statement of financial position;
measure a plan’s assets and its obligations that determine its funded status as of the end of the fiscal year (with limited exceptions); and

recognize changes in the funded status of pension and other postretirement benefit plans in the year in which the changes occur. Generally, those changes are reported in other comprehensive income and as a separate component of shareholders’ equity.

The detailed information presented below covers the employee benefit plans of Sempra Energy and its principal subsidiaries.

Sempra Energy has funded and unfunded noncontributory traditional defined benefit and cash balance plans, including separate plans for SDG&E and SoCalGas, which collectively cover all eligible employees, including members of the Sempra Energy board of directors who were participants in a predecessor plan on or before June 1, 1998. Pension benefits under the traditional defined benefit plans are based on service and final average pay, while the cash balance plans provide benefits using a career average earnings methodology.

Chilquinta Energía has an unfunded contributory defined benefit plan covering all employees hired before October 1, 1981 and an unfunded noncontributory termination indemnity obligation covering all employees. The plans generally provide defined benefits to retirees based on date of hire, years of service and final average salary.

Sempra Energy also has other postretirement benefit plans (PBOP), including separate plans for SDG&E and SoCalGas, which collectively cover all domestic (except Willmut Gas) and certain foreign employees. The life insurance plans are both contributory and noncontributory, and the health care plans are contributory. Participants’ contributions are adjusted annually. Other postretirement benefits include medical benefits for retirees’ spouses.

Chilquinta Energía also has two noncontributory postretirement benefit plans which cover substantially all employees – a health care plan and an energy subsidy plan that provides for reduced energy rates. The health care plan includes benefits for retirees’ spouses and dependents.

Pension and other postretirement benefits costs and obligations are dependent on assumptions used in calculating such amounts. These assumptions include

discount rates
expected return on plan assets
health care cost trend rates
mortality rates
rate of compensation increases
termination and retirement rates
utilization of postretirement welfare benefits
payout elections (lump sum or annuity)
lump sum interest rates

We review these assumptions on an annual basis prior to the beginning of each year and update them as appropriate. We consider current market conditions, including interest rates, in making these assumptions. New mortality table studies were released by the Society of Actuaries during 2014 that significantly increased life expectancy assumptions, and we have incorporated these new assumptions, adjusted for the Sempra Energy companies’ actual mortality experience, in our calculations. We use a December 31 measurement date for all of our plans.

Rabbi Trust

In support of its Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans, Sempra Energy maintains dedicated assets, including a Rabbi Trust and investments in life insurance contracts, which totaled $512 million and $506 million at December 31, 2014 and 2013, respectively.

Pension and Other Postretirement Benefit Plans

Benefit Plan Amendments Affecting 2014

During 2014, executive participants in a company nonqualified plan became eligible in this same plan for Supplemental Executive Retirement Plan benefits. Consistent with past practice, this was treated as a plan amendment and increased the recorded pension liability by $4 million at Sempra Energy Consolidated.

Effective January 1, 2014, a new high deductible medical benefit was provided to all SDG&E and SoCalGas retirees under the age of 65, except the represented retirees at SoCalGas, participating in the companies’ PBOP plans. This benefit replaced a previous benefit provided by the SDG&E plans and was an added benefit in the SoCalGas plan. These changes resulted in an increase of other postretirement benefit obligations by a negligible amount at SDG&E and by $1 million at each of Sempra Energy Consolidated and SoCalGas.

Benefit Plan Amendments Affecting 2013

The plan amendments below were adopted in 2013, and are therefore reflected in the 2013 pension and other postretirement benefit obligations.

Effective July 1, 2014, an enhanced pension benefit is provided to certain employees of SoCalGas who transfer from a represented to a nonrepresented position after June 30, 1998. This increased the pension benefit obligation by $27 million at each of Sempra Energy Consolidated and SoCalGas.

Effective April 1, 2014, we provided a one-time, ad hoc cost of living adjustment of 13.2 percent for SoCalGas and PE retirees who retired prior to July 1, 1996 and their beneficiaries that are receiving qualified pension benefits in the form of an annuity. This election increased the pension benefit obligation by $40 million at Sempra Energy Consolidated and $39 million at SoCalGas.

Effective January 1, 2013, the face value of the fully paid life insurance benefit for employees that participate in our Executive Retirement Life Insurance Program and retire after December 31, 2012 was increased from one times pay to one-and-a-half times pay. In addition, the tax gross-ups paid to the retiring employee based on the value of the final premium were eliminated. These changes resulted in a decrease of the other postretirement benefit obligation of $4 million at Sempra Energy Consolidated.

Effective January 1, 2014, the benefits provided by one of the dental plans available to all employees that participate in the plans, except the represented employees at SoCalGas, were enhanced to increase the annual total maximum and lifetime orthodontic maximum covered costs. In addition, the costs of diagnostic and preventive services were excluded from the total covered annual maximum costs. These plan design changes increased the recorded liability for other postretirement benefits by $1 million at each of Sempra Energy Consolidated and SoCalGas.

Special Termination Benefits Affecting 2014 and 2013

At SDG&E in 2014, and at both SDG&E and SoCalGas in 2013, all nonrepresented employees age 62 with 5 years of service and all other nonrepresented employees age 55 with 10 years of service that retired under the Voluntary Retirement Enhancement Program (VREP) offered in those years received an additional postretirement health benefit in the form of a $50,000 Health Reimbursement Account (HRA). In accordance with U.S. GAAP, we elected to treat the benefit obligation attributable to the HRA as special termination benefits. This resulted in increases to the recorded liability for other postretirement benefits of approximately $5 million for each of Sempra Energy Consolidated and SDG&E in 2014, and $5 million for Sempra Energy Consolidated and $2 million for each of SDG&E and SoCalGas in 2013.

Benefit Obligations and Assets

The following three tables provide a reconciliation of the changes in the plans’ projected benefit obligations and the fair value of assets during 2014 and 2013, and a statement of the funded status at December 31, 2014 and 2013:

PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension benefits				Other postretirementbenefits
	2014		2013		2014		2013
CHANGE IN PROJECTED BENEFIT OBLIGATION
Net obligation at January 1	$	3,459	$	3,804	$	973	$	1,115
Service cost		101		109		24		28
Interest cost		161		148		49		44
Contributions from plan participants		―		―		17		16
Actuarial loss (gain)		441		(371)		105		(177)
Benefit payments		(217)		(293)		(58)		(55)
Plan amendments		4		67		1		(3)
Special termination benefits		―		―		5		5
Settlements and curtailments		(110)		(5)		(1)		―
Net obligation at December 31		3,839		3,459		1,115		973

CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1		2,789		2,558		1,012		873
Actual return on plan assets		217		396		67		151
Employer contributions		128		133		16		27
Contributions from plan participants		―		―		17		16
Benefit payments		(217)		(293)		(58)		(55)
Settlements		(110)		(5)		―		―
Fair value of plan assets at December 31		2,807		2,789		1,054		1,012
Funded status at December 31	$	(1,032)	$	(670)	$	(61)	$	39
Net recorded (liability) asset at December 31	$	(1,032)	$	(670)	$	(61)	$	39

PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
SAN DIEGO GAS & ELECTRIC COMPANY
(Dollars in millions)
	Pension benefits				Other postretirementbenefits
	2014		2013		2014		2013
CHANGE IN PROJECTED BENEFIT OBLIGATION
Net obligation at January 1	$	939	$	1,067	$	171	$	185
Service cost		30		32		7		8
Interest cost		43		41		9		8
Contributions from plan participants		―		―		6		6
Actuarial loss (gain)		101		(66)		15		(19)
Benefit payments		(25)		(89)		(13)		(12)
Special termination benefits		―		―		5		2
Settlements		(87)		(4)		―		―
Transfer of liability from (to) other plans		10		(42)		―		(7)
Net obligation at December 31		1,011		939		200		171

CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1		819		781		146		126
Actual return on plan assets		63		117		11		18
Employer contributions		56		51		14		14
Contributions from plan participants		―		―		6		6
Benefit payments		(25)		(89)		(13)		(12)
Settlements		(87)		(4)		―		―
Transfer of assets from (to) other plans		2		(37)		―		(6)
Fair value of plan assets at December 31		828		819		164		146
Funded status at December 31	$	(183)	$	(120)	$	(36)	$	(25)
Net recorded liability at December 31	$	(183)	$	(120)	$	(36)	$	(25)

PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
SOUTHERN CALIFORNIA GAS COMPANY
(Dollars in millions)
	Pension benefits				Other postretirementbenefits
	2014		2013		2014		2013
CHANGE IN PROJECTED BENEFIT OBLIGATION
Net obligation at January 1	$	2,110	$	2,299	$	753	$	873
Service cost		60		67		16		17
Interest cost		100		90		38		34
Contributions from plan participants		―		―		11		10
Actuarial loss (gain)		300		(285)		90		(151)
Benefit payments		(163)		(169)		(43)		(40)
Plan amendments		―		66		1		1
Special termination benefits		―		―		―		2
Settlements		(10)		―		―		―
Transfer of liability from other plans		1		42		―		7
Net obligation at December 31		2,398		2,110		866		753

CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1		1,758		1,581		848		732
Actual return on plan assets		138		250		54		131
Employer contributions		39		59		―		9
Contributions from plan participants		―		―		11		10
Benefit payments		(163)		(169)		(43)		(40)
Settlements		(10)		―		―		―
Transfer of assets from other plans		1		37		―		6
Fair value of plan assets at December 31		1,763		1,758		870		848
Funded status at December 31	$	(635)	$	(352)	$	4	$	95
Net recorded (liability) asset at December 31	$	(635)	$	(352)	$	4	$	95

For Sempra Energy Consolidated, SDG&E and SoCalGas, the actuarial losses for pension plans in 2014 were primarily due to a decrease in the weighted average discount rates and updated mortality rates (discussed above), and to a lesser extent at SoCalGas, a change in the rate used to convert annuity benefits to lump sums. The actuarial losses were partially offset at Sempra Energy Consolidated and SoCalGas by the impact of updated census data for SoCalGas and partially offset at all companies by a decrease in the cash balance interest crediting rate.

The actuarial losses for other postretirement plans in 2014 were primarily due to a decrease in the weighted average discount rates and updated mortality rates for all companies, and to lesser extent, updated census data for SDG&E and SoCalGas. The actuarial losses were partially offset by a decrease in anticipated retiree and spousal participation rates for all companies.

The actuarial gains for pension plans in 2013 were primarily due to an increase in the weighted average discount rate and the rate used to convert monthly annuity-type benefits to a lump sum benefit payment.

The actuarial gains for other postretirement plans in 2013 resulted from several factors, including an increase in the discount rate, updated census data and actual claims costs at SoCalGas, updates in actual premiums and retiree contributions for 2013, expected decrease in 2014 claims costs based on 2014 renewal premium rates, and a decrease in the healthcare cost trending rate. The actuarial gains were partially offset by the impact of updated census data and actual claims costs at all companies except SoCalGas, changes in retirement and termination rates, and an expected increase in non-spouse dependents for all employees of SoCalGas not covered by the defined dollar benefit.

Net Assets and Liabilities

The assets and liabilities of the pension and other postretirement benefit plans are affected by changing market conditions as well as when actual plan experience is different than assumed. Such events result in investment gains and losses, which we defer and recognize in pension and other postretirement benefit costs over a period of years. Sempra Energy Consolidated (except for SDG&E) and SoCalGas use the asset smoothing method for their pension and other postretirement plans. This method develops an asset value that recognizes realized and unrealized investment gains and losses over a three-year period. This adjusted asset value, known as the market-related value of assets, is used in conjunction with an expected long-term rate of return to determine the expected return-on-assets component of net periodic cost. SDG&E does not use the asset smoothing method, but rather recognizes realized and unrealized investment gains and losses during the current year.

The 10-percent corridor accounting method is used at Sempra Energy Consolidated, SDG&E and SoCalGas. Under the corridor accounting method, if as of the beginning of a year unrecognized net gain or loss exceeds 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets, the excess is amortized over the average remaining service period of active participants. The asset smoothing and 10-percent corridor accounting methods help mitigate volatility of net periodic costs from year to year.

We recognize the overfunded or underfunded status of defined benefit pension and other postretirement plans as assets or liabilities, respectively; unrecognized changes in these assets and/or liabilities are normally recorded in Accumulated Other Comprehensive Income (Loss) on the balance sheet. The California Utilities and Mobile Gas record regulatory assets and liabilities that offset the funded pension and other postretirement plans’ assets or liabilities, as these costs are expected to be recovered in future utility rates based on agreements with regulatory agencies. At Willmut Gas, pension contributions are recovered in rates on a prospective basis, but are not recorded as a regulatory asset pending recovery.

The California Utilities record annual pension and other postretirement net periodic benefit costs equal to the contributions to their plans as authorized by the CPUC. The annual contributions to the pension plans are limited to a minimum required funding amount as determined by the Internal Revenue Service. The annual contributions to the other postretirement plans are equal to the lesser of the maximum tax deductible amount or the net periodic cost calculated in accordance with U.S. GAAP for pension and other postretirement benefit plans. Mobile Gas records annual pension and other postretirement net periodic benefit costs based on an estimate of the net periodic cost at the beginning of the year calculated in accordance with U.S. GAAP for pension and other postretirement benefit plans, as authorized by the Alabama Public Service Commission. Any differences between booked net periodic benefit cost and amounts contributed to the pension and other postretirement plans for the California Utilities are disclosed as regulatory adjustments in accordance with U.S. GAAP for regulated entities.

The net (liability) asset is included in the following categories on the Consolidated Balance Sheets at December 31:

PENSION AND OTHER POSTRETIREMENT BENEFIT OBLIGATIONS, NET OF PLAN ASSETS AT DECEMBER 31
(Dollars in millions)
	Pension benefits				Other postretirementbenefits
	2014		2013		2014		2013
Sempra Energy Consolidated:
Noncurrent assets	$	―	$	―	$	4	$	95
Current liabilities		(33)		(59)		―		―
Noncurrent liabilities		(999)		(611)		(65)		(56)
Net recorded (liability) asset	$	(1,032)	$	(670)	$	(61)	$	39
SDG&E:
Current liabilities	$	(3)	$	(13)	$	―	$	―
Noncurrent liabilities		(180)		(107)		(36)		(25)
Net recorded liability	$	(183)	$	(120)	$	(36)	$	(25)
SoCalGas:
Noncurrent assets	$	―	$	―	$	4	$	95
Current liabilities		(2)		(13)		―		―
Noncurrent liabilities		(633)		(339)		―		―
Net recorded (liability) asset	$	(635)	$	(352)	$	4	$	95

Amounts recorded in Accumulated Other Comprehensive Income (Loss) at December 31, 2014 and 2013, net of income tax effects and amounts recorded as regulatory assets, are as follows:

AMOUNTS IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
	Pension benefits				Other postretirementbenefits
	2014		2013		2014		2013
Sempra Energy Consolidated:
Net actuarial loss	$	(82)	$	(73)	$	(1)	$	―
Prior service credit		(2)		―		―		―
Total	$	(84)	$	(73)	$	(1)	$	―
SDG&E:
Net actuarial loss	$	(13)	$	(10)
Prior service credit		1		1
Total	$	(12)	$	(9)
SoCalGas:
Net actuarial loss	$	(5)	$	(5)
Prior service credit		1		1
Total	$	(4)	$	(4)

The accumulated benefit obligation for defined benefit pension plans at December 31, 2014 and 2013 was as follows:

ACCUMULATED BENEFIT OBLIGATION
(Dollars in millions)
	Sempra Energy Consolidated				SDG&E				SoCalGas
	2014		2013		2014		2013		2014		2013
Accumulated benefit obligation	$	3,555	$	3,254	$	978	$	923	$	2,182	$	1,944

Sempra Energy has unfunded and funded pension plans. SDG&E and SoCalGas each have an unfunded and a funded pension plan. The following table shows the obligations of funded pension plans with benefit obligations in excess of plan assets at December 31:

OBLIGATIONS OF FUNDED PENSION PLANS
(Dollars in millions)
	2014		2013
Sempra Energy Consolidated:
Projected benefit obligation	$	3,592	$	3,212
Accumulated benefit obligation		3,343		3,027
Fair value of plan assets		2,807		2,789
SDG&E:
Projected benefit obligation	$	964	$	899
Accumulated benefit obligation		937		886
Fair value of plan assets		828		819
SoCalGas:
Projected benefit obligation	$	2,379	$	2,085
Accumulated benefit obligation		2,166		1,920
Fair value of plan assets		1,763		1,758

Net Periodic Benefit Cost, 2012-2014

The following three tables provide the components of net periodic benefit cost and amounts recognized in other comprehensive income for the years ended December 31:

NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OTHER COMPREHENSIVE INCOME
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2014		2013		2012		2014		2013		2012
NET PERIODIC BENEFIT COST
Service cost	$	101	$	109	$	90	$	24	$	28	$	25
Interest cost		161		148		162		49		44		52
Expected return on assets		(171)		(162)		(155)		(63)		(58)		(53)
Amortization of:
Prior service cost (credit)		11		4		3		(5)		(4)		(4)
Actuarial loss		18		54		47		―		7		12
Settlement and curtailment charges		31		2		8		(1)		―		―
Special termination benefits		―		―		―		5		5		―
Regulatory adjustment		(31)		(20)		(29)		6		6		7
Total net periodic benefit cost		120		135		126		15		28		39

CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS
RECOGNIZED IN OTHER COMPREHENSIVE INCOME
Net loss (gain)		38		(30)		19		1		(8)		(6)
Prior service cost		4		1		―		―		―		―
Amortization of actuarial loss		(23)		(9)		(9)		―		(1)		―
Total recognized in other comprehensive income		19		(38)		10		1		(9)		(6)
Total recognized in net periodic benefit cost and other comprehensive income	$	139	$	97	$	136	$	16	$	19	$	33

NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OTHER COMPREHENSIVE INCOME
SAN DIEGO GAS & ELECTRIC COMPANY
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2014		2013		2012		2014		2013		2012
NET PERIODIC BENEFIT COST
Service cost	$	30	$	32	$	28	$	7	$	8	$	7
Interest cost		43		41		45		9		8		9
Expected return on assets		(55)		(52)		(47)		(10)		(8)		(8)
Amortization of:
Prior service cost		2		2		2		2		4		4
Actuarial loss		4		14		14		―		―		―
Settlement charge		19		1		1		―		―		―
Special termination benefits		―		―		―		5		2		―
Regulatory adjustment		12		14		6		1		―		1
Total net periodic benefit cost		55		52		49		14		14		13

CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS
RECOGNIZED IN OTHER COMPREHENSIVE INCOME
Net loss (gain)		8		(2)		2		―		―		―
Amortization of actuarial loss		(3)		(1)		(1)		―		―		―
Total recognized in other comprehensive income		5		(3)		1		―		―		―
Total recognized in net periodic benefit cost and other comprehensive income	$	60	$	49	$	50	$	14	$	14	$	13

NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OTHER COMPREHENSIVE INCOME
SOUTHERN CALIFORNIA GAS COMPANY
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2014		2013		2012		2014		2013		2012
NET PERIODIC BENEFIT COST
Service cost	$	60	$	67	$	53	$	16	$	17	$	16
Interest cost		100		90		99		38		34		41
Expected return on assets		(104)		(98)		(96)		(51)		(48)		(44)
Amortization of:
Prior service cost (credit)		9		2		2		(8)		(8)		(7)
Actuarial loss		6		31		23		―		6		11
Settlement charge		4		―		1		―		―		―
Special termination benefits		―		―		―		―		2		―
Regulatory adjustment		(43)		(34)		(36)		5		6		5
Total net periodic benefit cost		32		58		46		―		9		22

CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS
RECOGNIZED IN OTHER COMPREHENSIVE INCOME
Net loss (gain)		5		3		(4)		―		―		―
Amortization of actuarial loss		(5)		(1)		(1)		―		―		―
Total recognized in other comprehensive income		―		2		(5)		―		―		―
Total recognized in net periodic benefit cost and other comprehensive income	$	32	$	60	$	41	$	―	$	9	$	22

The estimated net loss for the pension plans that will be amortized from Accumulated Other Comprehensive Income (Loss) into net periodic benefit cost in 2015 is $9 million for Sempra Energy Consolidated, $1 million for SDG&E and $1 million for SoCalGas. Negligible amounts of prior service credit for the pension plans will be similarly amortized in 2015.

Assumptions for Pension and Other Postretirement Benefit Plans

Benefit Obligation and Net Periodic Benefit Cost

Except for the Chilquinta Energía plans, we develop the discount rate assumptions based on the results of a third party modeling tool that develops the discount rate by matching each plan’s expected cash flows to interest rates and expected maturity values of individually selected bonds in a hypothetical portfolio. The model controls the level of accumulated surplus that may result from the selection of bonds based solely on their premium yields by limiting the number of years to look back for selection to 3 years for pre-30-year and 6 years for post-30-year benefit payments. Additionally, the model ensures that an adequate number of bonds are selected in the portfolio by limiting the amount of the plan’s benefit payments that can be met by a single bond to 7.5 percent.

We selected individual bonds from a universe of Bloomberg AA-rated bonds which:

have an outstanding issue of at least $50 million;
are non-callable (or callable with make-whole provisions);
exclude collateralized bonds; and
exclude the top and bottom 10 percent of yields to avoid relying on bonds which might be mispriced or misgraded.

This selection methodology also mitigates the impact of market volatility on the portfolio by excluding bonds with the following characteristics:

The issuer is on review for downgrade by a major rating agency if the downgrade would eliminate the issuer from the portfolio.
Recent events have caused significant price volatility to which rating agencies have not reacted.
Lack of liquidity is causing price quotes to vary significantly from broker to broker.

We believe that this bond selection approach provides the best estimate of discount rates to estimate settlement values for our plans’ benefit obligations as required by applicable U.S. GAAP.

We develop the discount rate assumptions for the plans at Chilquinta Energía based on 10-year Chilean government bond yields and the expected local long-term rate of inflation. This method for developing the discount rate is required when there is no deep market for high quality corporate bonds.

Long-term return on assets is based on the weighted-average of the plans’ investment allocation as of the measurement date and the expected returns for those asset types.

The significant assumptions affecting benefit obligation and net periodic benefit cost are as follows:

WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATION AT DECEMBER 31

	Pension benefits				Other postretirement benefits
	2014		2013		2014		2013
Sempra Energy Consolidated:
Discount rate	4.09	%	4.84	%	4.15	%	4.95	%
Rate of compensation increase	3.50-10.00		3.50-10.00		3.50-10.00		3.50-10.00
SDG&E:
Discount rate	4.00	%	4.69	%	4.15	%	5.00	%
Rate of compensation increase	3.50-10.00		3.50-10.00		3.50-10.00		3.50-10.00
SoCalGas:
Discount rate	4.15	%	4.94	%	4.15	%	4.95	%
Rate of compensation increase	3.50-10.00		3.50-10.00		3.50-10.00		3.50-10.00

WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE NET PERIODIC BENEFIT COST FOR YEARS ENDED DECEMBER 31

	Pension benefits						Other postretirement benefits
	2014		2013		2012		2014		2013		2012
Sempra Energy Consolidated:
Discount rate	4.85	%	4.04	%	4.40-5.05	%	4.95	%	4.09	%	4.10-5.15	%
Expected return on plan assets	7.00		7.00		7.00		6.97		6.96		6.96
Rate of compensation increase	3.50-10.00		3.50-9.50		3.50-8.50		3.50-10.00		3.50-9.50		3.50-9.50
SDG&E:
Discount rate	4.69	%	3.94	%	4.70-4.80	%	5.00	%	4.10	%	5.05	%
Expected return on plan assets	7.00		7.00		7.00		6.88		6.81		6.81
Rate of compensation increase	3.50-10.00		3.50-9.50		3.50-8.50		3.50-10.00		N/A		N/A
SoCalGas:
Discount rate	4.94	%	4.10	%	4.70-5.05	%	4.95	%	4.10	%	5.15	%
Expected return on plan assets	7.00		7.00		7.00		7.00		7.00		7.00
Rate of compensation increase	3.50-10.00		3.50-9.50		3.50-8.50		3.50-10.00		3.50-9.50		3.50-9.50

Health Care Cost Trend Rates

Assumed health care cost trend rates have a significant effect on the amounts that we report for the health care plan costs. Following are the health care cost trend rates applicable to our postretirement benefit plans

ASSUMED HEALTH CARE COST TREND RATES AT DECEMBER 31

		Other postretirement benefit plans(1)
		Pre-65 retirees						Retirees aged 65 years and older
		2014		2013		2012		2014		2013		2012
Health care cost trend rate assumed for next year		7.75	%	8.25	%	10.00	%	5.25	%	5.50	%	8.25	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend)		5.00	%	5.00	%	5.00	%	4.50	%	4.50	%	4.75	%
Year the rate reaches the ultimate trend		2020		2020		2020		2020		2020		2020
(1)	Excludes Mobile Gas Plan. For Mobile Gas, the health care cost trend rate assumed for next year for all retirees was 7.75 percent, 7.50 percent and 8.00 percent in 2014, 2013 and 2012, respectively; the ultimate trend was 5.00 percent in 2014, 2013 and 2012; and the year the rate reaches the ultimate trend was 2020, 2019 and 2020 in 2014, 2013 and 2012, respectively.

A one-percent change in assumed health care cost trend rates would have had the following effects in 2014:

EFFECT OF ONE-PERCENT CHANGE IN ASSUMED HEALTH CARE COST TREND RATES
(Dollars in millions)
	Sempra Energy
	Consolidated				SDG&E				SoCalGas
	1%		1%		1%		1%		1%		1%
	Increase		Decrease		Increase		Decrease		Increase		Decrease
Effect on total of service and interest
cost components of net periodic
postretirement health care benefit cost	$	7	$	(5)	$	1	$	(1)	$	5	$	(4)
Effect on the health care component of the
accumulated other postretirement
benefit obligations		86		(75)		9		(7)		74		(65)

Plan Assets

Investment Allocation Strategy for Sempra Energy’s Pension Master Trust

Sempra Energy’s pension master trust holds the investments for the pension and other postretirement benefit plans. We maintain additional trusts as we discuss below for certain of the California Utilities’ other postretirement benefit plans. Other than through indexing strategies, the trusts do not invest in securities of Sempra Energy.

The current asset allocation objective for the pension master trust is to protect the funded status of the plans while generating sufficient returns to cover future benefit payments and accruals. We assess the portfolio performance by comparing actual returns with relevant benchmarks. Currently, the pension plans’ asset allocations are

38 percent domestic equity
26 percent international equity
18 percent long credit
5 percent global high yield credit
5 percent real assets
4 percent STRIPS
4 percent long government

The asset allocation of the plans is reviewed by our Plan Funding Committee and our Pension and Benefits Investment Committee (the Committees) on a regular basis. When evaluating strategic asset allocations, the Committees consider many variables, including:

long-term cost
variability and level of contributions
funded status
a range of expected outcomes over varying confidence levels

We maintain allocations at strategic levels with reasonable bands of variance. When asset class exposure reaches a minimum or maximum level, we generally rebalance the portfolio back to target allocations.

In accordance with the Sempra Energy pension investment guidelines, derivative financial instruments may be used by the pension master trust’s equity and fixed income portfolio investment managers to equitize cash, hedge certain exposures, and as substitutes for certain types of fixed income securities.

Rate of Return Assumption

The expected return on assets in our pension plans and other postretirement benefit plans is based on the weighted-average of the plans’ investment allocations to specific asset classes as of the measurement date. We arrive at a 7 percent expected return on assets by considering both the historical and forecasted long-term rates of return on those asset classes. We expect a return of between 7 percent and 9 percent on return-seeking assets and between 3 percent and 5 percent for risk-mitigating assets. Certain trusts that hold assets for the SDG&E and Mobile Gas other postretirement benefit plans are subject to taxation, which impacts the expected after-tax return on assets in these plans.

Concentration of Risk

Plan assets are fully diversified across global equity and bond markets, and other than what is indicated by the target asset allocations, contain no concentration of risk in any one economic, industry, maturity or geographic sector.

Investment Strategy for SDG&E’s and SoCalGas’ Other Postretirement Benefit Plans

SDG&E’s and SoCalGas’ other postretirement benefit plans are funded by cash contributions from SDG&E and SoCalGas and their current retirees. The assets of these plans are placed into the pension master trust and other Voluntary Employee Beneficiary Association (VEBA) trusts. The assets in the VEBA trusts are invested at an allocation similar to the pension master trust, with 70 percent invested in return-seeking and 30 percent invested in risk-mitigating assets. This allocation has been formulated to best suit the long-term nature of the obligations.

Fair Value of Pension and Other Postretirement Benefit Plan Assets

We classify the investments in Sempra Energy’s pension master trust and the trusts for the California Utilities’ other postretirement benefit plans into:

Level 1, for securities valued using quoted prices from active markets for identical assets;
Level 2, for securities not traded on an active market but for which observable market inputs are readily available; and
Level 3, for securities and investments valued based on significant unobservable inputs. Investments are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The following are descriptions of the valuation methods and assumptions we use to estimate the fair values of investments held by pension and other postretirement benefit plan trusts.

Equity Securities — Equity securities are valued using quoted prices listed on nationally recognized securities exchanges.

Fixed Income Securities — Certain fixed income securities are valued at the closing price reported in the active market in which the security is traded. Other fixed income securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar securities, the security is valued under a discounted cash flows approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. Certain high yield fixed-income securities are valued by applying a price adjustment to the bid side to calculate a mean and ask value. Adjustments can vary based on maturity, credit standing, and reported trade frequencies. The bid to ask spread is determined by the investment manager based on the review of the available market information.

Registered Investment Companies — Investments in mutual funds sponsored by a registered investment company are valued based on exchange listed prices for equity and certain fixed income securities or are valued under a discounted cash flows approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks for the remaining fixed income securities.

Common/Collective Trusts — Investments in common/collective trust funds are valued based on the redemption price of units owned, which is based on the current fair value of the funds’ underlying assets.

Private Equity Funds — Investments in private equity funds do not trade in active markets. Fair value is determined by the fund managers, based upon their review of the underlying investments as well as their utilization of discounted cash flows and other valuation models.

Venture Capital Funds — These funds consist of investments in private equities that are held by limited partnerships following various strategies, including venture capital and corporate finance. The partnerships generally have limited lives of 10 years, after which liquidating distributions will be received. Fair value is determined by attributing a proportionate share of net assets to an ownership interest in partners’ capital.

Real Estate Funds — Investments in real estate funds are valued based on the net asset value per share. Net asset value is based on the fair value of the underlying investments.

Derivative Financial Instruments — Forward currency contracts are valued at the prevailing forward exchange rate of the underlying currencies, and unrealized gain (loss) is recorded daily. Fixed income futures and options are marked to market daily. Equity index future contracts are valued at the last sales price quoted on the exchange on which they primarily trade.

The methods described are intended to produce a fair value calculation that is indicative of net realizable value or reflective of future fair values. However, while management believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

We provide more discussion of fair value measurements in Notes 1 and 10. The following tables set forth by level within the fair value hierarchy a summary of the investments in our pension and other postretirement benefit plan trusts measured at fair value on a recurring basis.

There were no transfers into or out of Level 1, Level 2 or Level 3 for Sempra Energy Consolidated, SDG&E or SoCalGas during the periods presented, nor any changes in the valuation techniques used in recurring fair value measurement.

The fair values of our pension plan assets by asset category are as follows:

FAIR VALUE MEASUREMENTS — INVESTMENT ASSETS OF PENSION PLANS
(Dollars in millions)
		Fair value at December 31, 2014
			Level 1		Level 2		Level 3		Total
SDG&E:
Equity securities:
Domestic(1)		$	307	$	―	$	―	$	307
Foreign			186		―		―		186
Domestic preferred			―		1		―		1
Foreign preferred			1		―		―		1
Registered investment companies			40		―		―		40
Fixed income securities:
U.S. Treasury securities			38		―		―		38
Domestic municipal bonds			―		11		―		11
Foreign government bonds			―		12		―		12
Domestic corporate bonds(2)			―		117		―		117
Foreign corporate bonds			―		36		―		36
Common/collective trusts(3)			―		62		―		62
Registered investment companies			―		10		―		10
Other investments(4)			―		―		4		4
Total investment assets(5)			572		249		4		825

SoCalGas:
Equity securities:
Domestic(1)			651		―		―		651
Foreign			395		―		―		395
Domestic preferred			―		3		―		3
Foreign preferred			3		1		―		4
Registered investment companies			86		―		―		86
Fixed income securities:
U.S. Treasury securities			80		―		―		80
Domestic municipal bonds			―		24		―		24
Foreign government bonds			―		25		―		25
Domestic corporate bonds(2)			―		249		―		249
Foreign corporate bonds			―		77		―		77
Common/collective trusts(3)			―		132		―		132
Registered investment companies			―		21		―		21
Other investments(4)			1		―		8		9
Total investment assets(6)			1,216		532		8		1,756

Other Sempra Energy:
Equity securities:
Domestic(1)			81		―		―		81
Foreign			49		―		―		49
Foreign preferred			―		1		―		1
Registered investment companies			10		―		―		10
Fixed income securities:
U.S. Treasury securities			9		―		―		9
Domestic municipal bonds			―		4		―		4
Foreign government bonds			―		3		―		3
Domestic corporate bonds(2)			―		30		―		30
Foreign corporate bonds			―		9		―		9
Common/collective trusts(3)			―		16		―		16
Registered investment companies			―		2		―		2
Other investments(4)			―		―		1		1
Total other Sempra Energy(7)			149		65		1		215
Total Sempra Energy Consolidated(8)		$	1,937	$	846	$	13	$	2,796
(1)	Investments in common stock of domestic corporations.
(2)	Bonds of U.S. issuers from diverse industries, primarily investment-grade.
(3)	Investments in common/collective trusts held in Sempra Energy’s Pension Master Trust.
(4)	Investments in venture capital and real estate funds, stated at net asset value, and derivative financial instruments.
(5)	Excludes cash and cash equivalents of $3 million at SDG&E.
(6)	Excludes cash and cash equivalents of $7 million at SoCalGas.
(7)	Excludes cash and cash equivalents of $1 million at Other Sempra Energy.
(8)	Excludes cash and cash equivalents of $11 million at Sempra Energy Consolidated.

FAIR VALUE MEASUREMENTS — INVESTMENT ASSETS OF PENSION PLANS
(Dollars in millions)
		Fair value at December 31, 2013
			Level 1		Level 2		Level 3		Total
SDG&E:
Equity securities:
Domestic(1)		$	317	$	―	$	―	$	317
Foreign			211		―		―		211
Foreign preferred			2		―		―		2
Registered investment companies			44		―		―		44
Fixed income securities:
U.S. Treasury securities			2		―		―		2
Domestic municipal bonds			―		11		―		11
Foreign government bonds			―		25		―		25
Domestic corporate bonds(2)			―		152		―		152
Domestic partnership bonds(2)			―		1		―		1
Foreign corporate bonds			―		55		―		55
Common/collective trusts(3)			―		25		―		25
Other investments(4)			―		―		6		6
Total investment assets(5)			576		269		6		851

SoCalGas:
Equity securities:
Domestic(1)			637		―		―		637
Foreign			423		―		―		423
Foreign preferred			4		―		―		4
Registered investment companies			89		―		―		89
Fixed income securities:
U.S. Treasury securities			4		―		―		4
Domestic municipal bonds			―		21		―		21
Foreign government bonds			―		51		―		51
Domestic corporate bonds(2)			―		306		―		306
Domestic partnership bonds(2)			―		2		―		2
Foreign corporate bonds			―		110		―		110
Common/collective trusts(3)			―		50		―		50
Other investments(4)			―		―		13		13
Total investment assets(6)			1,157		540		13		1,710

Other Sempra Energy:
Equity securities:
Domestic(1)			79		―		―		79
Foreign			52		―		―		52
Registered investment companies			11		―		―		11
Fixed income securities:
U.S. Treasury securities			1		―		―		1
Domestic municipal bonds			―		3		―		3
Foreign government bonds			―		7		―		7
Domestic corporate bonds(2)			―		38		―		38
Foreign corporate bonds			―		13		―		13
Common/collective trusts(3)			―		5		―		5
Other investments(4)			―		―		2		2
Total other Sempra Energy(7)			143		66		2		211
Total Sempra Energy Consolidated(8)		$	1,876	$	875	$	21	$	2,772
(1)	Investments in common stock of domestic corporations.
(2)	Bonds of U.S. issuers from diverse industries, primarily investment-grade.
(3)	Investments in common/collective trusts held in Sempra Energy’s Pension Master Trust.
(4)	Investments in venture capital and real estate funds, stated at net asset value, and derivative financial instruments.
(5)	Excludes cash and cash equivalents of $5 million at SDG&E and transfers payable to other plans of $37 million.
(6)	Excludes cash and cash equivalents of $11 million at SoCalGas and transfers receivable from other plans of $37 million.
(7)	Excludes cash and cash equivalents of $1 million at Other Sempra Energy.
(8)	Excludes cash and cash equivalents of $17 million at Sempra Energy Consolidated.

The fair values by asset category of the other postretirement benefit plan assets held in the pension master trust and in the additional trusts for SoCalGas’ other postretirement benefit plans and SDG&E’s other postretirement benefit plan (PBOP plan trusts) are as follows:

FAIR VALUE MEASUREMENTS — INVESTMENT ASSETS OF OTHER POSTRETIREMENT BENEFIT PLANS
(Dollars in millions)
		Fair value at December 31, 2014
			Level 1		Level 2		Level 3		Total
SDG&E:
Equity securities:
Domestic(1)		$	41	$	―	$	―	$	41
Foreign			25		―		―		25
Registered investment companies			43		―		―		43
Fixed income securities:
U.S. Treasury securities			5		―		―		5
Domestic municipal bonds(2)			―		3		―		3
Domestic corporate bonds(3)			―		16		―		16
Foreign government bonds			―		2		―		2
Foreign corporate bonds			―		5		―		5
Common/collective trusts(4)			―		8		―		8
Registered investment companies			―		16		―		16
Total investment assets			114		50		―		164

SoCalGas:
Equity securities:
Domestic(1)			133		―		―		133
Foreign			81		―		―		81
Domestic preferred			―		1		―		1
Foreign preferred			1		―		―		1
Registered investment companies			45		―		―		45
Broad market funds			―		222		―		222
Fixed income securities:
U.S. Treasury securities			16		―		―		16
Domestic municipal bonds			―		5		―		5
Domestic corporate bonds(3)			―		61		―		61
Foreign government bonds			―		5		―		5
Foreign corporate bonds			―		25		―		25
Common/collective trusts(4)			―		265		―		265
Registered investment companies			―		6		―		6
Other investments(5)			―		―		2		2
Total investment assets(6)			276		590		2		868

Other Sempra Energy:
Equity securities:
Domestic(1)			6		―		―		6
Foreign			3		―		―		3
Registered investment companies			4		―		―		4
Fixed income securities:
U.S. Treasury securities			1		―		―		1
Domestic corporate bonds(3)			―		2		―		2
Common/collective trusts(4)			―		1		―		1
Registered investment companies			―		2		―		2
Total other Sempra Energy(7)			14		5		―		19
Total Sempra Energy Consolidated(8)		$	404	$	645	$	2	$	1,051
(1)	Investments in common stock of domestic corporations.
(2)	Bonds of California municipalities held in SDG&E PBOP plan trusts.
(3)	Bonds of U.S. issuers from diverse industries, primarily investment-grade.
(4)	Investment in common/collective trusts held in PBOP plan VEBA trusts.
(5)	Investments in venture capital and real estate funds, stated at net asset value, and derivative financial instruments.
(6)	Excludes cash and cash equivalents of $2 million held in SoCalGas PBOP plan trusts.
(7)	Excludes cash and cash equivalents of $1 million held in Other Sempra Energy PBOP plan trusts.
(8)	Excludes cash and cash equivalents of $3 million at Sempra Energy Consolidated.

FAIR VALUE MEASUREMENTS — INVESTMENT ASSETS OF OTHER POSTRETIREMENT BENEFIT PLANS
(Dollars in millions)
		Fair value at December 31, 2013
			Level 1		Level 2		Level 3		Total
SDG&E:
Equity securities:
Domestic(1)		$	37	$	―	$	―	$	37
Foreign			25		―		―		25
Registered investment companies			43		―		―		43
Fixed income securities:
Domestic municipal bonds(2)			―		3		―		3
Domestic corporate bonds(3)			―		18		―		18
Foreign government bonds			―		3		―		3
Foreign corporate bonds			―		6		―		6
Common/collective trusts(4)			―		3		―		3
Registered investment companies			―		12		―		12
Other investments(5)			―		―		1		1
Total investment assets(6)			105		45		1		151

SoCalGas:
Equity securities:
Domestic(1)			128		―		―		128
Foreign			83		―		―		83
Foreign preferred			1		―		―		1
Registered investment companies			43		―		―		43
Broad market funds			―		220		―		220
Fixed income securities:
U.S. Treasury securities			1		―		―		1
Domestic municipal bonds			―		4		―		4
Domestic corporate bonds(3)			―		60		―		60
Foreign government bonds			―		10		―		10
Foreign corporate bonds			―		22		―		22
Common/collective trusts(4)			―		262		―		262
Registered investment companies			―		3		―		3
Other investments(5)			―		―		2		2
Total investment assets(7)			256		581		2		839

Other Sempra Energy:
Equity securities:
Domestic(1)			4		―		―		4
Foreign			4		―		―		4
Registered investment companies			4		―		―		4
Fixed income securities:
Domestic corporate bonds(3)			―		3		―		3
Foreign government bonds			―		1		―		1
Foreign corporate bonds			―		1		―		1
Registered investment companies			―		1		―		1
Total other Sempra Energy			12		6		―		18
Total Sempra Energy Consolidated(8)		$	373	$	632	$	3	$	1,008
(1)	Investments in common stock of domestic corporations.
(2)	Bonds of California municipalities held in SDG&E PBOP plan trusts.
(3)	Bonds of U.S. issuers from diverse industries, primarily investment-grade.
(4)	Investment in common/collective trusts held in PBOP plan VEBA trusts.
(5)	Investments in venture capital and real estate funds, stated at net asset value, and derivative financial instruments.
(6)	Excludes cash and cash equivalents of $1 million held in SDG&E PBOP plan trusts and transfers payable to other plans of $6 million.
(7)	Excludes cash and cash equivalents of $3 million held in SoCalGas PBOP plan trusts and transfers receivable from other plans of $6 million.
(8)	Excludes cash and cash equivalents of $1 million and $3 million held in SDG&E and SoCalGas PBOP plan trusts, respectively.

The investments of the pension master trust allocated to the pension and other postretirement benefit plans classified as Level 3 are private equity funds and represent a percentage of each plan’s total allocated assets as follows at December 31:

LEVEL 3 INVESTMENT ASSETS
(Dollars in millions)
	Pension plans								Other postretirement benefit plans
	Level 3 investment assets				% of total investment assets				Level 3 investment assets				% of total investment assets
	2014		2013		2014		2013		2014		2013		2014		2013
SDG&E	$	4	$	6	―	%	1	%	$	―	$	1	―	%	1	%
SoCalGas		8		13	―		1			2		2	―		―
All other		1		2	―		1			―		―	―		―
Sempra Energy Consolidated	$	13	$	21	―		1		$	2	$	3	―		―

The following table provides a reconciliation of changes in the fair value of investments classified as Level 3:

LEVEL 3 RECONCILIATIONS
(Dollars in millions)
	Private equity funds
		SDG&E		SoCalGas		All other		Sempra EnergyConsolidated
PENSION PLANS
Balance at January 1, 2013	$	6	$	13	$	2	$	21
Realized gains		1		2		―		3
Unrealized losses		(1)		(1)		―		(2)
Sales		―		(1)		―		(1)
Balance at December 31, 2013		6		13		2		21
Realized gains		1		2		―		3
Unrealized losses		(1)		(2)		―		(3)
Sales		(2)		(5)		(1)		(8)
Balance at December 31, 2014	$	4	$	8	$	1	$	13
OTHER POSTRETIREMENT BENEFIT PLANS
Balance at January 1 and December 31, 2013	$	1	$	2	$	―	$	3
Unrealized losses		(1)		―		―		(1)
Balance at December 31, 2014	$	―	$	2	$	―	$	2

Future Payments

We expect to contribute the following amounts to our pension and other postretirement benefit plans in 2015:

The following table shows the total benefits we expect to pay for the next 10 years to current employees and retirees from the plans or from company assets.

EXPECTED BENEFIT PAYMENTS
(Dollars in millions)
	Sempra Energy Consolidated				SDG&E				SoCalGas
			Other				Other				Other
	Pension		postretirement		Pension		postretirement		Pension		postretirement
	benefits		benefits		benefits		benefits		benefits		benefits
2015	$	349	$	50	$	92	$	9	$	215	$	39
2016		333		55		86		10		211		42
2017		321		58		87		11		205		45
2018		313		63		83		11		200		48
2019		301		66		80		12		190		50
2020-2024		1,311		346		360		64		813		264

PROFIT SHARING PLANS

Under Chilean law, Chilquinta Energía is required to pay all employees either (1) 30 percent of Chilquinta Energía’s taxable income after deducting a 10 percent return on equity, allocated in proportion to the annual salary of each employee or (2) 25 percent of each employee’s annual salary, with a maximum mandatory profit sharing of 4.75 months of Chile’s legal minimum salary. Chilquinta Energía has elected the second option but calculates the profit sharing amounts with actual employee salaries instead of the legal minimum salary, resulting in a higher cost. The amounts are paid out each pay period. Chilquinta Energía recorded annual profit sharing expense of $4 million for 2014, $4 million for 2013 and $6 million for 2012 related to this plan.

Under Peruvian law, Luz del Sur is required to pay their employees 5 percent of Luz del Sur’s taxable income, paid once a year and allocated as follows: 50 percent based on each employee’s annual hours worked and 50 percent based on each employee’s annual salary. Luz del Sur recorded annual profit sharing expense of $10 million for 2014, $9 million for 2013 and $10 million for 2012 related to this plan.

SAVINGS PLANS

Sempra Energy offers trusteed savings plans to all domestic employees and to employees in Mexico. Participation in the plans is immediate for salary deferrals for all employees except for the represented employees at SoCalGas, who are eligible upon completion of one year of service. Subject to plan provisions, domestic employees may contribute from one percent to 50 percent of their regular earnings, subject to annual IRS limits. In Mexico, employees may contribute up to 2 percent of the portion of their base salary that is less than 25 times the minimum wage and may contribute up to 5 percent of any portion of their base salary that is greater than 25 times the minimum wage. Sempra Energy makes matching contributions for domestic employees after one year of the employee’s completed service and immediately for employees in Mexico. Employer contribution amounts and methodology vary by plan for domestic employees, but generally the contributions are equal to 50 percent of the first 6 percent of eligible base salary contributed by employees and, if certain company goals are met, an additional amount related to incentive compensation payments. Employer contributions for employees in Mexico equal the contributions made by the employee.

Beginning September 1, 2012 for the Sempra Energy, SDG&E and Mobile Gas savings plans and October 1, 2012 for the SoCalGas savings plan, employer contributions are invested based upon each employee’s investment elections in effect at the time of contribution. Prior to that, employer contributions were initially invested in Sempra Energy common stock, but the employee could transfer the contribution to other investments. Contributions are invested in Sempra Energy common stock, mutual funds and/or institutional trusts. Prior to the termination of the ESOP discussed below, employer contributions for substantially all plans were partially funded by the ESOP.

Contributions to the savings plans were as follows:

The market value of Sempra Energy common stock held by the savings plans was $1.4 billion and $1.3 billion at December 31, 2014 and 2013, respectively.

Employee Stock Ownership Plan (ESOP)

Sempra Energy terminated the ESOP effective June 30, 2012, as all ESOP debt was paid and all shares were released from the ESOP Trust as of that date. Prior to the plan’s termination, all contributions to the ESOP Trust (Trust) were made by Sempra Energy; there were no contributions made by the participants. The Trust was used to fund part of the retirement savings plan described above. As Sempra Energy made contributions, the ESOP debt service was paid and shares were released in proportion to the total expected debt service. We charged compensation expense and credited equity for the market value of the released shares. Dividends on unallocated shares were used to pay debt service and were applied against the liability.

ESOP debt was paid down by a total of $10 million in 2012 when 153,625 shares of Sempra Energy common stock were released from the Trust in order to fund employer contributions to the Sempra Energy savings plan trust. Interest on the ESOP debt and dividends used for debt service were negligible in 2012.

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2014

Notes to Consolidated Financial Statements [Abstract]

Share-based Compensation

NOTE 8. SHARE-BASED COMPENSATION

SEMPRA ENERGY EQUITY COMPENSATION PLANS

Sempra Energy has share-based compensation plans intended to align employee and shareholder objectives related to the long-term growth of Sempra Energy. The plans permit a wide variety of share-based awards, including:

non-qualified stock options
incentive stock options
restricted stock
restricted stock units
stock appreciation rights
performance awards
stock payments

dividend equivalents

Eligible California Utilities employees participate in Sempra Energy’s share-based compensation plans as a component of their compensation package.

In May 2013, shareholders approved the Sempra Energy 2013 Long-Term Incentive Plan. Upon approval, the remaining authorized shares from the Sempra Energy 2008 Long Term Incentive Plan and the 2008 Long Term Incentive Plan for EnergySouth, Inc. Employees and Other Eligible Individuals were applied to the number of shares authorized in the 2013 Plan.

At December 31, 2014, Sempra Energy had the following types of equity awards outstanding:

Non-Qualified Stock Options: Options have an exercise price equal to the market price of the common stock at the date of grant, are service-based, become exercisable over a four-year period, and expire 10 years from the date of grant. Vesting and/or the ability to exercise may be accelerated upon a change in control, in accordance with severance pay agreements, in accordance with the terms of the grant, or upon eligibility for retirement. Options are subject to forfeiture or earlier expiration when an employee terminates employment.
Performance-Based Restricted Stock Units: These restricted stock unit awards generally vest in Sempra Energy common stock at the end of four-year performance periods based on Sempra Energy’s total return to shareholders relative to that of market indices or based on earnings per common share (EPS) growth. For awards granted in 2013 or earlier, if Sempra Energy’s total return to shareholders exceeds target levels, up to an additional 50 percent of the number of granted restricted stock units may be issued. For awards granted in 2014, up to an additional 100 percent of the granted restricted stock units may be issued if total return to shareholders or EPS growth exceeds target levels. If Sempra Energy’s total return to shareholders or EPS growth is below the target levels, shares are subject to partial vesting on a pro rata basis. Vesting may be subject to earlier forfeiture upon termination of employment and accelerated vesting upon a change in control under the applicable long-term incentive plan, or in accordance with severance pay agreements. Dividend equivalents on shares subject to restricted stock units are reinvested to purchase additional shares that become subject to the same vesting conditions as the restricted stock units to which the dividends relate.
Service-Based Restricted Stock Units: Restricted stock units may also be service-based; these generally vest at the end of four years of service. Vesting may be subject to earlier forfeiture upon termination of employment and accelerated vesting upon a change in control under the applicable long-term incentive plan, in accordance with severance pay agreements, or at the discretion of the Compensation Committee of Sempra Energy’s Board of Directors. Dividend equivalents on shares subject to restricted stock units are reinvested to purchase additional shares that become subject to the same vesting conditions as the restricted stock units to which the dividends relate.
Other Restricted Stock Units: Restricted stock units were granted in 2014 in connection with the creation of the Cameron LNG Holdings joint venture. These awards vest to the extent that the Compensation Committee of Sempra Energy’s Board of Directors determines that the objectives of the joint venture are continuing to be achieved. These awards vest on the anniversary of the grant date over a period of either two or three years. Vesting may be subject to earlier forfeiture upon termination of employment and accelerated vesting upon a change in control under the applicable long-term incentive plan, or in accordance with severance pay agreements. Dividend equivalents on shares subject to restricted stock units are reinvested to purchase additional shares that become subject to the same vesting conditions as the restricted stock units to which the dividends relate.

Restricted Stock: Restricted stock awards are solely service-based and are generally exercisable at the end of four years of service. Vesting is subject to earlier forfeiture upon termination of employment and accelerated vesting upon a change in control under the applicable long-term incentive plan, in accordance with severance pay agreements or upon eligibility for retirement. Holders of restricted stock have full voting rights. They also have full dividend rights; however, dividends paid on restricted stock held by officers are reinvested to purchase additional shares that become subject to the same vesting conditions as the restricted stock to which the dividends relate.

In April 2013, the IEnova board of directors approved the IEnova 2013 Long-Term Incentive Plan. The purpose of this plan is to align the interests of employees and directors of IEnova with its shareholders. All awards issued from this plan and any related dividend equivalents will settle in cash based on the fair market value of the awards, based on IEnova’s common stock value, upon vesting. In 2014 and 2013, IEnova issued 468,339 and 1,014,899 restricted stock units from this plan, respectively, 962,122 of which remain outstanding at December 31, 2014.

SHARE-BASED AWARDS AND COMPENSATION EXPENSE

We measure and recognize compensation expense for all share-based payment awards made to our employees and directors based on estimated fair values on the date of grant. We recognize compensation costs net of an estimated forfeiture rate (based on historical experience) and recognize the compensation costs for non-qualified stock options and restricted stock and stock units on a straight-line basis over the requisite service period of the award, which is generally four years. However, in the year that an employee becomes eligible for retirement, the remaining expense related to the employee’s awards is recognized immediately. Substantially all awards outstanding are classified as equity instruments; therefore, we recognize additional paid in capital as we recognize the compensation expense associated with the awards.

At December 31, 2014, 6,562,347 shares were authorized and available for future grants of share-based awards. Our practice is to satisfy share-based awards by issuing new shares rather than by open-market purchases.

Total share-based compensation expense for all of Sempra Energy’s share-based awards was comprised as follows:

SHARE-BASED COMPENSATION EXPENSE ― SEMPRA ENERGY CONSOLIDATED
(Dollars in millions, except per share amounts)
	Years ended December 31,
	2014		2013		2012
Share-based compensation expense, before income taxes	$	46	$	38	$	40
Income tax benefit		(18)		(15)		(16)
Share-based compensation expense, net of income taxes	$	28	$	23	$	24

Net share-based compensation expense, per common share
Basic	$	0.11	$	0.09	$	0.10
Diluted	$	0.11	$	0.09	$	0.10

Sempra Energy Consolidated’s capitalized compensation cost was $5 million in 2014 and $4 million in each of 2013 and 2012.

We classify the tax benefits resulting from tax deductions in excess of the tax benefit related to compensation cost recognized for stock option exercises as financing cash flows.

Sempra Energy subsidiaries record an expense for the plans to the extent that subsidiary employees participate in the plans and/or the subsidiaries are allocated a portion of the Sempra Energy plans’ corporate staff costs. Expenses and capitalized compensation costs recorded by SDG&E and SoCalGas were as follows:

SHARE-BASED COMPENSATION EXPENSE ― SDG&E AND SOCALGAS
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012
SDG&E:
Compensation expense	$	8	$	8	$	8
Capitalized compensation cost		3		3		3
SoCalGas:
Compensation expense	$	8	$	8	$	7
Capitalized compensation cost		2		1		1

SEMPRA ENERGY NON-QUALIFIED STOCK OPTIONS

We use a Black-Scholes option-pricing model (Black-Scholes model) to estimate the fair value of each non-qualified stock option grant. The use of a valuation model requires us to make certain assumptions about selected model inputs. Expected volatility is calculated based on the historical volatility of Sempra Energy’s stock price. We base the average expected life for options on the contractual term of the option and expected employee exercise and post-termination behavior.

The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of the grant. No new options were granted in 2014, 2013 or 2012.

The following table shows a summary of non-qualified stock options at December 31, 2014 and activity for the year then ended:

NON-QUALIFIED STOCK OPTIONS

					Weighted-
			Weighted-		average
	Shares		average		remaining		Aggregate
	under		exercise		contractual term		intrinsic value
	option		price		(in years)		(in millions)
Outstanding at December 31, 2013		1,459,145	$	53.18
Exercised		(699,783)	$	52.48
Forfeited/canceled		(1,950)	$	45.36
Outstanding at December 31, 2014		757,412	$	53.84		3.2	$	44

Vested or expected to vest, at December 31, 2014		757,412	$	53.84		3.2	$	44
Exercisable at December 31, 2014		757,412	$	53.84		3.2	$	44

The aggregate intrinsic value at December 31, 2014 is the total of the difference between Sempra Energy’s closing stock price and the exercise price for all in-the-money options. The aggregate intrinsic value for non-qualified stock options exercised in the last three years was

$33 million in 2014
$41 million in 2013

$45 million in 2012

The total fair value of shares vested in the last three years was

$1 million in 2014
$2 million in 2013

$4 million in 2012

We received cash from option exercises during 2014 totaling $37 million. There were no realized tax benefits for the share-based payment award deductions in 2014 over and above the $18 million income tax benefit shown above.

SEMPRA ENERGY RESTRICTED STOCK AWARDS AND UNITS

We use a Monte-Carlo simulation model to estimate the fair value of the restricted stock awards and units. Our determination of fair value is affected by the volatility of the stock price and the dividend yields for Sempra Energy and its peer group companies. The valuation also is affected by the risk-free rates of return, and a number of other variables. Below are key assumptions for 2014, 2013 and 2012 for Sempra Energy:

		2014		2013		2012
Risk-free rate of return		1.2	%	0.6	%	0.6	%
Annual dividend yield(1)		N/A		3.3		3.4
Stock price volatility		16		19		27
(1)	Annual dividend yield was not used in valuations performed in 2014.

Restricted Stock Awards

We provide below a summary of Sempra Energy’s restricted stock awards at December 31, 2014 and the activity during the year.

RESTRICTED STOCK AWARDS

			Weighted-
			average
			grant-date
	Shares		fair value
Nonvested at December 31, 2013		17,469	$	62.43
Vested		(8,231)	$	60.87
Nonvested at December 31, 2014		9,238	$	63.81
Vested or expected to vest, at December 31, 2014		9,238	$	63.81

Total compensation cost related to nonvested restricted stock awards not yet recognized as of December 31, 2014 is negligible. The weighted-average per-share fair value for restricted stock awards granted was $75.82 in 2013 and $57.81 in 2012.

The total fair value of shares vested in the last three years was $1 million in each of 2014, 2013 and 2012.

Restricted Stock Units

We provide below a summary of Sempra Energy’s restricted stock units as of December 31, 2014 and the activity during the year.

RESTRICTED STOCK UNITS

		Performance-based			Service-based
		restricted stock units			restricted stock units(2)
			Weighted-			Weighted-
			average			average
			grant-date			grant-date
		Units	fair value		Units	fair value
Nonvested at December 31, 2013		3,164,561	$	47.55	215,598	$	63.30
Granted		444,241	$	88.01	111,653	$	91.54
Vested		(720,600)	$	44.38	(21,268)	$	66.84
Forfeited		(13,260)	$	57.83	(2,746)	$	67.79
Nonvested at December 31, 2014(1)		2,874,942	$	54.55	303,237	$	73.41
Vested or expected to vest, at December 31, 2014		2,816,676	$	54.22	290,822	$	73.31
(1)	Each unit represents the right to receive one share of our common stock if applicable performance conditions are satisfied. For all performance-based restricted stock units, up to an additional 50 percent (100 percent for awards granted in 2014) of the shares represented by the units may be issued if Sempra Energy exceeds target performance conditions.
(2)	Includes restricted stock units issued in 2014 in connection with the creation of the Cameron LNG Holdings joint venture.

The total fair value of shares vested in 2014 was $33 million.

The $35 million of total compensation cost related to nonvested restricted stock units not yet recognized as of December 31, 2014 is expected to be recognized over a weighted-average period of 2.4 years. The weighted-average per-share fair values for performance-based restricted stock units granted were $57.55 in 2013 and $49.23 in 2012.

DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2014

Notes to Consolidated Financial Statements [Abstract]

Derivative Financial Instruments

NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS

We use derivative instruments primarily to manage exposures arising in the normal course of business. Our principal 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 (1) that could lead to declines in anticipated revenues or increases in anticipated expenses, or (2) 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 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 California 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 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, foreign currency 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 instrument 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 California Utilities use natural gas energy derivatives, for the benefit of customers, 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 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 Consolidated Statements of Operations.
Sempra Mexico and Sempra Natural Gas may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: LNG, natural gas transportation, power generation, and Sempra Natural Gas’ storage. Gains and losses associated with undesignated derivatives are recognized in Energy-Related Businesses Revenues or in Cost of Natural Gas, Electric Fuel and Purchased Power on the Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. Sempra Mexico also uses natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its Mexican distribution operations. These derivatives, which are recorded as commodity costs that are offset by regulatory account balances and recovered in rates, are recognized in Cost of Natural Gas on the Consolidated Statements of Operations.

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

We summarize net energy derivative volumes at December 31, 2014 and 2013 as follows:

NET ENERGY DERIVATIVE VOLUMES

		December 31,
Segment and Commodity		2014	2013
California Utilities:
SDG&E:
	Natural gas	55 million MMBtu	43 million MMBtu	(1)
	Congestion revenue rights	27 million MWh	33 million MWh	(2)
SoCalGas - natural gas		1 million MMBtu	2 million MMBtu

Energy-Related Businesses:
Sempra Natural Gas:
Electric power		―	1 million MWh
Natural gas		29 million MMBtu	15 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 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, typically designated as cash flow hedges, to lock in interest rates on outstanding debt or in anticipation of future financings.

Interest rate derivatives are utilized by the California Utilities as well as by other Sempra Energy subsidiaries. Although the California 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. Interest rate derivatives are generally accounted for as hedges at the California Utilities, as well 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. This activity was designated as a cash flow hedge as of April 1, 2011.

At December 31, 2014 and 2013, the net notional amounts of our interest rate derivatives, excluding the cross-currency swaps discussed below, were:

INTEREST RATE DERIVATIVES
(Dollars in millions)
		December 31, 2014			December 31, 2013
		Notional debt		Maturities	Notional debt		Maturities
Sempra Energy Consolidated
	Cash flow hedges(1)	$	399	2015-2028	$	413	2014-2028
	Fair value hedges		300	2016		300	2016
SDG&E
	Cash flow hedge(1)		325	2019		335	2019
(1)	Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE.

FOREIGN CURRENCY DERIVATIVES

We are exposed to exchange rate movements at our Mexican subsidiaries, which have U.S. dollar denominated cash balances, receivables and payables (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. These subsidiaries also have deferred income tax assets and liabilities that are denominated in the Mexican peso, which must be translated into U.S. dollars for financial reporting purposes. From time to time, we may utilize short-term foreign currency derivatives at our subsidiaries and at the consolidated level as a means to manage the risk of exposure to significant fluctuations in our income tax expense from these impacts. We may also utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and joint ventures. On February 14, 2013, Sempra Mexico entered into cross-currency swap agreements, which were designated as cash flow hedges.

In addition, Sempra South American Utilities may utilize foreign currency derivatives at its subsidiaries and joint ventures as a means to manage foreign currency rate risk. We discuss such swaps at Chilquinta Energía’s Eletrans joint venture investment in Note 4.

FINANCIAL STATEMENT PRESENTATION

Each Consolidated Balance Sheet reflects the offsetting of net derivative positions and cash collateral with the same counterparty when management believes a legal right of offset exists. The following tables provide the fair values of derivative instruments on the Consolidated Balance Sheets at December 31, 2014 and 2013, including the amount of cash collateral receivables that were not offset, as the cash collateral is in excess of liability positions

DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
		December 31, 2014
									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(1)		Sundry		derivatives(2)		derivatives
Sempra Energy Consolidated:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments(3)		$	10	$	3	$	(17)	$	(109)
Commodity contracts not subject to rate recovery			25		―		―		―
Derivatives not designated as hedging instruments:
Interest rate instruments			8		27		(7)		(22)
Commodity contracts not subject to rate recovery			143		32		(135)		(29)
Associated offsetting commodity contracts			(129)		(27)		129		27
Associated offsetting cash collateral			(11)		―		―		―
Commodity contracts subject to rate recovery			36		76		(36)		(20)
Associated offsetting commodity contracts			(3)		(1)		3		1
Associated offsetting cash collateral			―		―		23		13
Net amounts presented on the balance sheet			79		110		(40)		(139)
Additional cash collateral for commodity contracts
subject to rate recovery			14		―		―		―
Total(4)		$	93	$	110	$	(40)	$	(139)
SDG&E:
Derivatives designated as hedging instruments:
Interest rate instruments(3)		$	―	$	―	$	(16)	$	(31)
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery			32		76		(32)		(20)
Associated offsetting commodity contracts			―		(1)		―		1
Associated offsetting cash collateral			―		―		23		13
Net amounts presented on the balance sheet			32		75		(25)		(37)
Additional cash collateral for commodity contracts
subject to rate recovery			12		―		―		―
Total(4)		$	44	$	75	$	(25)	$	(37)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery		$	4	$	―	$	(4)	$	―
Associated offsetting commodity contracts			(3)		―		3		―
Net amounts presented on the balance sheet			1		―		(1)		―
Additional cash collateral for commodity contracts
subject to rate recovery			2		―		―		―
Total		$	3	$	―	$	(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.
(4)	Normal purchase contracts previously measured at fair value are excluded.

DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
		December 31, 2013
									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(1)		Sundry		derivatives(2)		derivatives
Sempra Energy Consolidated:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments(3)		$	14	$	12	$	(18)	$	(75)
Derivatives not designated as hedging instruments:
Interest rate instruments			8		22		(7)		(17)
Commodity contracts not subject to rate recovery			47		7		(51)		(5)
Associated offsetting commodity contracts			(43)		(5)		43		5
Associated offsetting cash collateral			―		―		1		―
Commodity contracts subject to rate recovery			35		72		(10)		(8)
Associated offsetting commodity contracts			(3)		(2)		3		2
Net amounts presented on the balance sheet			58		106		(39)		(98)
Additional cash collateral for commodity contracts
not subject to rate recovery			17		―		―		―
Additional cash collateral for commodity contracts
subject to rate recovery			31		―		―		―
Total(4)		$	106	$	106	$	(39)	$	(98)
SDG&E:
Derivatives designated as hedging instruments:
Interest rate instruments(3)		$	―	$	―	$	(16)	$	(39)
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery			34		72		(9)		(8)
Associated offsetting commodity contracts			(3)		(2)		3		2
Net amounts presented on the balance sheet			31		70		(22)		(45)
Additional cash collateral for commodity contracts
not subject to rate recovery			1		―		―		―
Additional cash collateral for commodity contracts
subject to rate recovery			29		―		―		―
Total(4)		$	61	$	70	$	(22)	$	(45)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery		$	1	$	―	$	(1)	$	―
Net amounts presented on the balance sheet			1		―		(1)		―
Additional cash collateral for commodity contracts
not subject to rate recovery			2		―		―		―
Additional cash collateral for commodity contracts
subject to rate recovery			2		―		―		―
Total		$	5	$	―	$	(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.
(4)	Normal purchase contracts previously measured at fair value are excluded.

The effects of derivative instruments designated as hedges on the Consolidated Statements of Operations and on Other Comprehensive Income (Loss) (OCI) and Accumulated Other Comprehensive Income (AOCI) for the years ended December 31 were:

FAIR VALUE HEDGE IMPACT ON THE CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
			Gain (loss) on derivatives recognized in earnings
			Years ended December 31,
		Location	2014		2013		2012
Sempra Energy Consolidated:
	Interest rate instruments	Interest Expense	$	8	$	8	$	6
	Interest rate instruments	Other Income, Net		(3)		(7)		3
	Total(1)		$	5	$	1	$	9
(1)	There were gains of $9 million from hedge ineffectiveness in 2014. All other 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 and recorded in Other Income, Net. There was no hedge ineffectiveness in 2013 and 2012.

CASH FLOW HEDGE IMPACT ON THE CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
		Pretax gain (loss)							Gain (loss) reclassified
		recognized in OCI							from AOCI into earnings
		(effective portion)							(effective portion)
		Years ended December 31,							Years ended December 31,
			2014		2013		2012	Location		2014		2013		2012
Sempra Energy Consolidated:
	Interest rate and foreign
	exchange instruments(1)	$	(24)	$	1	$	(22)	Interest Expense	$	(21)	$	(11)	$	(9)
								Gain on Sale of Equity
	Interest rate instruments		3		―		―	Interests and Assets		3		―		―
								Equity Earnings (Losses),
	Interest rate instruments		(127)		15		(10)	Before Income Tax		(10)		(10)		(6)
	Commodity contracts not							Revenues: Energy-Related
	subject to rate recovery		19		(4)		(1)	Businesses		8		1		―
	Total(2)	$	(129)	$	12	$	(33)		$	(20)	$	(20)	$	(15)
SDG&E:
	Interest rate instruments(1)(3)	$	(9)	$	8	$	(16)	Interest Expense	$	(11)	$	(9)	$	(5)
SoCalGas:
	Interest rate instrument(3)	$	―	$	―	$	―	Interest Expense	$	(1)	$	(1)	$	(2)
(1)	Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE.
(2)	There was $1 million, $1 million and $2 million of hedge ineffectiveness related to these cash flow hedges in 2014, 2013 and 2012, respectively.
(3)	There was negligible hedge ineffectiveness related to these cash flow hedges at SDG&E and SoCalGas in 2014, 2013 and 2012.

For Sempra Energy Consolidated we expect that losses of $19 million, which are net of income tax benefit, that are currently recorded in AOCI (including $13 million in noncontrolling interests, of which $12 million is related to Otay Mesa VIE at SDG&E) 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 into earnings depend on the interest rates in effect when derivative contracts that are currently outstanding mature.

SoCalGas expects that negligible losses, which are net of income tax benefit, that are currently recorded in AOCI related to cash flow hedges will be reclassified into earnings during the next twelve months as the hedged items affect earnings.

For all forecasted transactions, the maximum term over which we are hedging exposure to the variability of cash flows at December 31, 2014 is approximately 14 years and 4 years for Sempra Energy Consolidated and SDG&E, respectively. The maximum term of hedged interest rate variability related to debt at equity method investees is 21 years.

The effects of derivative instruments not designated as hedging instruments on the Consolidated Statements of Operations for the years ended December 31 were:

UNDESIGNATED DERIVATIVE IMPACT ON THE CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
			Gain (loss) on derivatives recognized in earnings
			Years ended December 31,
		Location	2014		2013		2012
Sempra Energy Consolidated:
	Interest rate and foreign
	exchange instruments	Other Income, Net	$	(24)	$	17	$	10
	Foreign exchange instruments	Equity Earnings, Net of Income Tax		(5)		(4)		―
	Commodity contracts not subject	Revenues: Energy-Related
	to rate recovery	Businesses		17		(1)		7
	Commodity contracts not subject	Cost of Natural Gas, Electric
	to rate recovery	Fuel and Purchased Power		3		―		―
	Commodity contracts not subject
	to rate recovery	Operation and Maintenance		(4)		1		1
	Commodity contracts subject	Cost of Electric Fuel
	to rate recovery	and Purchased Power		(10)		53		69
	Commodity contracts subject
	to rate recovery	Cost of Natural Gas		―		―		(2)
	Total		$	(23)	$	66	$	85
SDG&E:
	Commodity contracts not subject
	to rate recovery	Operation and Maintenance	$	(1)	$	―	$	―
	Commodity contracts subject	Cost of Electric Fuel
	to rate recovery	and Purchased Power		(10)		53		69
	Total		$	(11)	$	53	$	69
SoCalGas:
	Commodity contracts not subject
	to rate recovery	Operation and Maintenance	$	(2)	$	1	$	1
	Commodity contracts subject
	to rate recovery	Cost of Natural Gas		―		―		(2)
	Total		$	(2)	$	1	$	(1)

CONTINGENT FEATURES

For Sempra Energy Consolidated 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 Consolidated, the total fair value of this group of derivative instruments in a net liability position at December 31, 2014 and 2013 is $9 million and $3 million, respectively. At December 31, 2014, if the credit ratings of Sempra Energy were reduced below investment grade, $9 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 December 31, 2014 and 2013 is $2 million and $3 million, respectively. At December 31, 2014, 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 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.

Notes to Consolidated Financial Statements [Abstract]

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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+ Details

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2014

Fair Value Measurements

NOTE 10. FAIR VALUE MEASUREMENTS

Recurring Fair Value Measures

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 December 31, 2014 and 2013. 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 presented in accordance with our netting policy, as we discuss in Note 9 under “Financial Statement Presentation.”

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).

Our financial assets and liabilities that were accounted for at fair value on a recurring basis at December 31, 2014 and 2013 in the tables below include the following:

Nuclear decommissioning trusts reflect the assets of SDG&E’s nuclear decommissioning trusts, excluding cash balances. A third party trustee values the trust assets using prices from a pricing service based on a market approach. We validate these prices by comparison to prices from other independent data sources. Equity and certain debt securities are valued using quoted prices listed on nationally recognized securities exchanges or based on closing prices reported in the active market in which the identical security is traded (Level 1). Other debt securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2).
We enter into commodity contracts and interest rate derivatives primarily as a means to manage price exposures. We may also manage foreign exchange rate exposures using derivatives. We primarily use a market approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). All Level 3 recurring items are related to CRRs at SDG&E, as we discuss below under “Level 3 Information.” We record commodity derivative contracts that are subject to rate recovery as commodity costs that are offset by regulatory account balances and are recovered in rates.

Investments include marketable securities that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1).

There were no transfers into or out of Level 1, Level 2 or Level 3 for Sempra Energy Consolidated, SDG&E or SoCalGas during the periods presented, nor any changes in valuation techniques used in recurring fair value measurements.

RECURRING FAIR VALUE MEASURES ― SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		Fair value at December 31, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	655	$	―	$	―	$	―	$	655
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			62		47		―		―		109
Municipal bonds			―		129		―		―		129
Other securities			―		207		―		―		207
Total debt securities			62		383		―		―		445
Total nuclear decommissioning trusts(2)			717		383		―		―		1,100
Interest rate and foreign exchange instruments			―		48		―		―		48
Commodity contracts not subject to rate recovery			28		16		―		(11)		33
Commodity contracts subject to rate recovery			―		1		107		14		122
Total		$	745	$	448	$	107	$	3	$	1,303

Liabilities:
Interest rate and foreign exchange instruments		$	―	$	155	$	―	$	―	$	155
Commodity contracts not subject to rate recovery			3		9		―		(4)		8
Commodity contracts subject to rate recovery			―		52		―		(36)		16
Total		$	3	$	216	$	―	$	(40)	$	179

		Fair value at December 31, 2013
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	614	$	―	$	―	$	―	$	614
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			59		58		―		―		117
Municipal bonds			―		111		―		―		111
Other securities			―		153		―		―		153
Total debt securities			59		322		―		―		381
Total nuclear decommissioning trusts(2)			673		322		―		―		995
Interest rate and foreign exchange instruments			―		56		―		―		56
Commodity contracts not subject to rate recovery			1		5		―		17		23
Commodity contracts subject to rate recovery			2		1		99		31		133
Total		$	676	$	384	$	99	$	48	$	1,207

Liabilities:
Interest rate and foreign exchange instruments		$	―	$	117	$	―	$	―	$	117
Commodity contracts not subject to rate recovery			4		8		―		(5)		7
Commodity contracts subject to rate recovery			―		13		―		―		13
Total		$	4	$	138	$	―	$	(5)	$	137
(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements with cash collateral, as well as cash collateral not offset.
(2)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES ― SDG&E
(Dollars in millions)
		Fair value at December 31, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	655	$	―	$	―	$	―	$	655
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			62		47		―		―		109
Municipal bonds			―		129		―		―		129
Other securities			―		207		―		―		207
Total debt securities			62		383		―		―		445
Total nuclear decommissioning trusts(2)			717		383		―		―		1,100
Commodity contracts subject to rate recovery			―		―		107		12		119
Total		$	717	$	383	$	107	$	12	$	1,219

Liabilities:
Interest rate instruments		$	―	$	47	$	―	$	―	$	47
Commodity contracts not subject to rate recovery			1		―		―		(1)		―
Commodity contracts subject to rate recovery			―		51		―		(36)		15
Total		$	1	$	98	$	―	$	(37)	$	62

		Fair value at December 31, 2013
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	614	$	―	$	―	$	―	$	614
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			59		58		―		―		117
Municipal bonds			―		111		―		―		111
Other securities			―		153		―		―		153
Total debt securities			59		322		―		―		381
Total nuclear decommissioning trusts(2)			673		322		―		―		995
Commodity contracts not subject to rate recovery			―		―		―		1		1
Commodity contracts subject to rate recovery			1		1		99		29		130
Total		$	674	$	323	$	99	$	30	$	1,126

Liabilities:
Interest rate instruments		$	―	$	55	$	―	$	―	$	55
Commodity contracts subject to rate recovery			―		12		―		―		12
Total		$	―	$	67	$	―	$	―	$	67
(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements with cash collateral, as well as cash collateral not offset.
(2)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES ― SOCALGAS
(Dollars in millions)
		Fair value at December 31, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Commodity contracts subject to rate recovery		$	―	$	1	$	―	$	2	$	3
Total		$	―	$	1	$	―	$	2	$	3

Liabilities:
Commodity contracts not subject to rate recovery		$	2	$	―	$	―	$	(2)	$	―
Commodity contracts subject to rate recovery			―		1		―		―		1
Total		$	2	$	1	$	―	$	(2)	$	1

		Fair value at December 31, 2013
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Commodity contracts not subject to rate recovery		$	―	$	―	$	―	$	2	$	2
Commodity contracts subject to rate recovery			1		―		―		2		3
Total		$	1	$	―	$	―	$	4	$	5

Liabilities:
Commodity contracts subject to rate recovery		$	―	$	1	$	―	$	―	$	1
Total		$	―	$	1	$	―	$	―	$	1
(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements with cash collateral, as well as cash collateral not offset.

Level 3 Information

The following table sets forth reconciliations of changes in the fair value of congestion revenue rights (CRRs) classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E:

LEVEL 3 RECONCILIATIONS
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012
Balance at January 1	$	99	$	61	$	23
Realized and unrealized gains		15		11		31
Allocated transmission instruments		19		51		58
Settlements		(26)		(24)		(51)
Balance at December 31	$	107	$	99	$	61
Change in unrealized gains or losses relating to
instruments still held at December 31	$	8	$	11	$	17

SDG&E’s Energy and Fuel Procurement department, in conjunction with SDG&E’s finance group, is responsible for determining the appropriate fair value methodologies used to value and classify CRRs on an ongoing basis. Inputs used to determine the fair value of CRRs are reviewed and compared with market conditions to determine reasonableness. SDG&E expects all costs related to CRRs to be recoverable through customer rates. As such, there is no impact to earnings from changes in the fair value of these instruments.

CRRs are recorded at fair value based almost entirely on the most current auction prices published by the California ISO, an objective source. The impact associated with discounting is negligible. Because auction prices are a less observable input, these instruments are classified as Level 3. At December 31, 2014, the auction prices ranged from $(16) per MWh to $8 per MWh at a given location, and the fair value of these instruments is derived from auction price differences between two locations. At December 31, 2013, the auction prices ranged from $(6) per MWh to $12 per MWh. Positive values between two locations represent expected future reductions in congestion costs, whereas negative values between two locations represent expected future charges. Valuation of our CRRs is sensitive to a change in auction price. If auction prices at one location increase (decrease) relative to another location, this could result in a higher (lower) fair value measurement. We summarize CRR volumes in Note 9. Realized gains and losses associated with CRRs are recorded in Cost of Electric Fuel and Purchased Power, which is recoverable in rates, on the Consolidated Statements of Operations. Unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnings.

Derivative Positions Net of Cash Collateral

Each 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 Consolidated Balance Sheets at December 31, 2014 and 2013:

	December 31,
(Dollars in millions)	2014		2013
Sempra Energy Consolidated	$	14	$	48
SDG&E		12		30
SoCalGas		2		4

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. Investments in life insurance contracts that we hold in support of our Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans are carried at cash surrender values, which represent the amount of cash that could be realized under the contracts. The following table provides the carrying amounts and fair values of certain other financial instruments at December 31:

FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
		December 31, 2014
		Carrying		Fair Value
		amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Total long-term debt(1)(2)		$	12,347	$	―	$	12,782	$	917	$	13,699
Preferred stock of subsidiary			20		―		23		―		23
SDG&E:
Total long-term debt(2)(3)		$	4,461	$	―	$	4,563	$	425	$	4,988
SoCalGas:
Total long-term debt(4)		$	1,913	$	―	$	2,124	$	―	$	2,124
Preferred stock			22		―		25		―		25

		December 31, 2013
		Carrying		Fair Value
		amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Total long-term debt(1)(2)		$	12,022	$	―	$	11,925	$	751	$	12,676
Preferred stock of subsidiary			20		―		20		―		20
SDG&E:
Total long-term debt(2)(3)		$	4,386	$	―	$	4,226	$	335	$	4,561
SoCalGas:
Total long-term debt(4)		$	1,413	$	―	$	1,469	$	―	$	1,469
Preferred stock			22		―		22		―		22
(1)	Before reductions for unamortized discount (net of premium) of $21 million and $17 million at December 31, 2014 and 2013, respectively, and excluding build-to-suit and capital leases of $310 million and $195 million at December 31, 2014 and 2013, respectively, and commercial paper classified as long-term debt of $200 million at December 31, 2013. We discuss our long-term debt in Note 5.
(2)	Level 3 instruments include $325 million and $335 million at December 31, 2014 and 2013, respectively, related to Otay Mesa VIE.
(3)	Before reductions for unamortized discount of $11 million at December 31, 2014 and 2013, and excluding capital leases of $234 million and $179 million at December 31, 2014 and 2013, respectively.
(4)	Before reductions for unamortized discount of $8 million and $4 million at December 31, 2014 and 2013, respectively, and excluding capital leases of $1 million and $2 million at December 31, 2014 and 2013, respectively.

We base the fair value of certain long-term debt and preferred stock on a market approach using quoted market prices for identical or similar securities in thinly-traded markets (Level 2). We value other long-term debt using an income approach based on the present value of estimated future cash flows discounted at rates available for similar securities (Level 3).

We provide the fair values for the securities held in the nuclear decommissioning trust funds related to SONGS in Note 13 below.

Non-Recurring Fair Value Measures – Sempra Energy Consolidated

Energía Sierra Juárez

In July 2014, Sempra Mexico completed the sale of a 50-percent interest in the 155-MW first phase of its Energía Sierra Juárez wind project to a wholly owned subsidiary of InterGen N.V. for cash proceeds of $24 million, net of $2 million cash sold, as discussed in Note 3. Sempra Mexico recognized a pretax gain on the sale of $19 million ($14 million after-tax). Upon deconsolidation, our equity method investment in Energía Sierra Juárez was measured at fair value, which resulted in a $7 million after-tax gain attributable to a remeasurement of the retained investment to fair value. The fair value measurement was based on the cash sales price of $26 million paid by InterGen N.V., a nonrelated party and market participant. Use of this market participant input as the indicator of fair value is a Level 2 measurement in the fair value hierarchy.

Rockies Express

We discuss non-recurring fair value measures and the associated accounting impact on our investment in Rockies Express in Note 4.

In 2012, we recorded a $400 million pretax impairment of our investment in Rockies Express. In the second quarter of 2012, the noncash impairment charge of $300 million ($179 million after-tax) primarily resulted from the continuing decline in basis differential associated with shale gas production zones coming on line, assumptions related to the re-contracting of the long-term transportation agreements, and the refinancing of the existing project level debt, discussed further below. The fair value measurement was significantly impacted by unobservable inputs (Level 3) as defined by the accounting guidance for fair value measurements, which we discuss in Note 1 under “Fair Value Measurements.” We considered a market participant’s view of the total value for Rockies Express, based on an estimation of the future cash distributions it would be able to generate, adjusted for our 25-percent ownership interest. To estimate future cash distributions, we considered factors impacting Rockies Express’ ability to pay future distributions including:

the extent to which future cash flows are hedged by capacity sales contracts and their duration (generally through 2019), as well as the creditworthiness of the various counterparties;
Rockies Express’ future financing needs, including the ability to secure borrowings at reasonable rates as well as potentially using operating cash to retire principal;
prospects for generating attractive revenues and cash flows beyond 2019, including natural gas’ future basis differentials (driven by the location and extent of future supply and demand) and alternative strategies potentially available to utilize the assets; and

discount rates commensurate with the risks inherent in the cash flows.

In the third quarter of 2012, KMI reached an agreement with Tallgrass, which closed in the fourth quarter of 2012, to sell its asset group as mandated by the FTC, which group included its interest in Rockies Express. Events in the third quarter of 2012 related to this agreement also provided us with additional market participant data. We therefore updated our analysis of the fair value of our investment in Rockies Express as of September 30, 2012 to reflect these additional inputs and recorded an additional impairment charge of $100 million ($60 million after-tax). This fair value measurement in the third quarter was based primarily on the Level 2 input. We believe this is useful and reliable information, but we considered that it may be impacted by the FTC’s requirement for KMI to sell its interest in Rockies Express. To reflect this uncertainty, our updated analysis included the less subjective Level 2 market participant input as the primary indicator of fair value, with less weight ascribed to value based on estimated discounted cash flows as discussed above and in the table below. The updates to the cash flow analysis used in determining fair value in the second quarter reflected discussions with Tallgrass as to the strategic direction they are planning to take with their equity partners for Rockies Express, as well as additional discussions with other market participants. Tallgrass became the operator of Rockies Express in November 2012.

We believe our analysis formed a reasonable estimate of the fair value of Rockies Express at the measurement date of September 30, 2012. This estimate included the material input described above, which was generally observable during the period most relevant to our analysis. Regarding the unobservable inputs, significant uncertainties exist with regard to REX’s ability to secure attractive revenues beyond 2019. Accordingly, our analysis suggested that the fair value of our investment in Rockies Express could be materially different from the value we estimated at that time. For example, if REX is able to sustain the level of revenues currently generated beyond 2019, the value of our investment in Rockies Express would be materially enhanced and the indicated value of our investment in Rockies Express could be significantly higher. Conversely, if REX is unable to sell its transport capacity at sufficient rates or in sufficient volumes beyond 2019, the fair value of our investment in Rockies Express could be materially lower than our carrying amount. Separately, future events involving Rockies Express equity could occur and may also provide additional information regarding the fair value of our investment in Rockies Express.

Sempra Natural Gas developed the models and scenarios used to measure the fair value of our investment in Rockies Express. This modeling used inputs from external sources as described above and in the table below, as well as internally available data, such as operating and maintenance budgets used for financial planning purposes. External experts that forecast the future price of natural gas at various physical locations were also engaged to help validate certain scenarios and modeling assumptions. The fair value measurements were reviewed in detail by Sempra Natural Gas’ financial management, as well as Sempra Energy’s financial management team.

The following table summarizes significant inputs impacting non-recurring fair value measures related to our investments in Energía Sierra Juárez and Rockies Express:

NON-RECURRING FAIR VALUE MEASURES ― SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
							% of
		Estimated				Fair	Fair value
		fair				value	measure-		Range of
		value			Valuation technique	hierarchy	ment	Inputs used to develop measurement	inputs
Investment in
Energía Sierra
Juárez		$	26	(1)	Market approach	Level 2	100%	Equity sale offer price	100%
Investment in
Rockies Express		$	369	(2)	Market approach	Level 2	67%	Equity sale offer price	100%


					Probability weighted	Level 3	33%	Combined transportation rate assumption(3)	6% - 78%
					discounted cash flow			Counterparty credit risk on existing contracts	Low
								Operation and maintenance escalation rate	0% - 1%
								Forecasted interest rate on debt to be refinanced	5% - 10%
								Discount rate	8% - 10%
(1)	At measurement date of July 16, 2014. At December 31, 2014, our investment in Energía Sierra Juárez had a carrying value of $25 million, reflecting subsequent equity method activity to record distributions and earnings.
(2)	At measurement date of September 30, 2012. At December 31, 2014, our investment in Rockies Express had a carrying value of $340 million, reflecting subsequent equity method activity to record distributions and earnings.
(3)	Transportation rate beyond existing contract terms as a percentage of current mean REX rates.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Notes to Consolidated Financial Statements [Abstract]

PREFERRED STOCK

12 Months Ended

Dec. 31, 2014

Preferred Stock

NOTE 11. PREFERRED STOCK

The table below shows the details of preferred stock for SoCalGas. All series of SDG&E preferred stock were redeemed during 2013 as we discuss below.

PREFERRED STOCK OUTSTANDING
(Dollars in millions, except per share amounts)
	December 31,
	2014		2013
$25 par value, authorized 1,000,000 shares:
6% Series, 79,011 shares outstanding	$	3	$	3
6% Series A, 783,032 shares outstanding		19		19
SoCalGas - Total preferred stock		22		22
Less: 50,970 shares of the 6% Series outstanding owned by Pacific Enterprises		(2)		(2)
Sempra Energy - Total preferred stock of subsidiary	$	20	$	20

Following are the attributes of each company’s preferred stock. No amounts currently outstanding are subject to mandatory redemption.

SDG&E

On October 15, 2013, SDG&E redeemed all six series of its outstanding shares of contingently redeemable preferred stock for $82 million, including a $3 million early call premium. Each series was redeemed for cash at redemption prices ranging from $20.25 to $26 per share plus accrued dividends up to the redemption date of $1 million. The early call premium is presented as Call Premium on Preferred Stock of Subsidiary on Sempra Energy’s and Call Premium on Preferred Stock on SDG&E’s Consolidated Statements of Operations. The shares are no longer outstanding.

SDG&E is currently authorized to issue up to 45 million shares of preferred stock. The stock’s rights, preferences, privileges and restrictions would be established by the board of directors at the time of issuance.

SOCALGAS

None of SoCalGas’ outstanding preferred stock is callable.

All outstanding series have one vote per share, cumulative preferences as to dividends and liquidation preferences of $25 per share plus any unpaid dividends.

SoCalGas currently is also authorized to issue 5 million shares of series preferred stock and 5 million shares of preference stock, both without par value and with cumulative preferences as to dividends and liquidation value. The preference stock would rank junior to all series of preferred stock. Other rights and privileges of the stock would be established by the board of directors at the time of issuance.

SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2014

Notes to Consolidated Financial Statements [Abstract]

Shareholders' Equity And Earnings Per Share

NOTE 12. SEMPRA ENERGY – SHAREHOLDERS’ EQUITY AND EARNINGS PER SHARE

The following table provides the per share computations for our earnings for years ended December 31. Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the year. 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 AND DIVIDENDS DECLARED
(Dollars in millions, except per share amounts; shares in thousands)
	Years ended December 31,
	2014		2013		2012
Numerator:
Earnings/Income attributable to common shareholders	$	1,161	$	1,001	$	859

Denominator:
Weighted-average common shares outstanding for basic EPS		245,891		243,863		241,347
Dilutive effect of stock options, restricted stock awards and
restricted stock units		4,764		5,469		5,346
Weighted-average common shares outstanding for diluted EPS		250,655		249,332		246,693

Earnings per share:
Basic	$	4.72	$	4.10	$	3.56
Diluted	$	4.63	$	4.01	$	3.48

Dividends declared per share of common stock	$	2.64	$	2.52	$	2.40

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 recognized, minus tax shortfalls recognized, 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 of dilutive common stock equivalents excludes options for which the exercise price on common stock was greater than the average market price during the period (out-of-the-money options). We had no such antidilutive stock options outstanding during 2014 or 2013, and 40,000 such options outstanding during 2012.

During 2014, 2013 and 2012, we had no stock options outstanding that were antidilutive because of the unearned compensation and windfall tax benefits recognized 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. Proceeds equal to the unearned compensation and windfall tax benefits recognized, minus tax shortfalls recognized, 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 recognized or tax shortfalls recognized 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. There were no antidilutive RSAs and 4,087 antidilutive RSUs from the application of unearned compensation in the treasury stock method in 2014. There were no such antidilutive RSAs or RSUs in 2013. There were 1,934 such antidilutive RSAs and 7,673 such antidilutive RSUs in 2012.

Each performance-based RSU represents the right to receive up to 1.5 shares (2.0 shares for awards granted in 2014) of Sempra Energy common stock based on total shareholder return or EPS growth. RSU awards vest based on Sempra Energy’s four-year cumulative total shareholder return compared to the Standard & Poor’s (S&P) 500 Utilities Index, as follows:

Four-year cumulative total shareholder return ranking versus S&P 500 Utilities Index(1)		Number of Sempra Energy common shares received for each performance-based restricted stock unit(2)(3)
90th percentile or above (2014 awards only)		2.0
75th percentile (maximum for awards prior to 2014)		1.5
50th percentile		1.0
35th percentile or below		―
(1)	If Sempra Energy ranks at or above the 50th percentile compared to the S&P 500 Index, participants will receive a minimum of 1.0 share for each RSU.
(2)	Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are deemed reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate.
(3)	If performance falls between the tiers shown above, we calculate the payout using linear interpolation.

Beginning in January 2014, we issued performance-based RSUs representing the right to receive up to 2.0 shares of Sempra Energy common stock based on Sempra Energy’s four-year EPS compound annual growth rate beginning January 1, 2014 and ending on December 31, 2017. These RSU awards vest as follows:

Four-year earnings per share compound annual growth rate		Number of Sempra Energy common shares received for each performance-based restricted stock unit(1)(2)
8.0% or above		2.0
6.7%		1.5
4.4%		1.0
3.3% or below		―
(1)	Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate.
(2)	If performance falls between the tiers shown above, we calculate the payout using linear interpolation.

Our RSAs, which are solely service-based, and those RSUs that are service-based or issued in connection with the creation of the Cameron LNG Holdings joint venture represent the right to receive up to 1.0 share over the course or at the end of the service period and have the same dividend equivalent rights as performance-based RSUs. We include RSAs and these RSUs in potential dilutive shares at 100 percent, subject to the application of the treasury stock method. We include our performance-based RSUs in potential dilutive shares at zero to up to 200 percent to the extent that they currently meet the performance requirements for vesting, subject to the application of the treasury stock method. Due to market fluctuations of both Sempra Energy stock and the comparative indices, dilutive performance-based RSU shares may vary widely from period-to-period. If it were assumed that performance goals for all RSUs were met at maximum levels and if the treasury stock method were not applied to any of our RSAs or RSUs, the incremental potential dilutive shares would be 949,351; 641,751 and 1,134,456 for the years ended December 31, 2014, 2013 and 2012, respectively.

We are authorized to issue 750,000,000 shares of no-par-value common stock. In addition, we are authorized to issue 50,000,000 shares of preferred stock having rights, preferences and privileges that would be established by the Sempra Energy board of directors at the time of issuance.

Common stock activity consisted of the following:

COMMON STOCK ACTIVITY

		Years ended December 31,
			2014	2013	2012
Common shares outstanding, January 1			244,461,327	242,368,836	239,934,681
Restricted stock units vesting(1)			989,027	1,491,170	683,416
Stock options exercised			699,783	1,237,348	1,876,303
Savings plan issuance			398,042	―	―
Common stock investment plan(2)			205,203	―	―
Restricted stock issuances			―	21,121	2,580
Shares released from ESOP(3)			―	―	153,625
Shares repurchased(4)			(422,498)	(657,148)	(281,769)
Common shares outstanding, December 31			246,330,884	244,461,327	242,368,836
(1)	Includes dividend equivalents.
(2)	Participants in the Direct Stock Purchase Plan may reinvest dividends to purchase newly issued shares.
(3)	We released the last shares from the ESOP in April 2012. These shares were unallocated and therefore excluded from the computation of EPS.
(4)	From time to time, we purchase shares of our common stock from restricted stock plan participants who elect to sell a sufficient number of vesting restricted shares or units to meet minimum statutory tax withholding requirements.

Our board of directors has the discretion to determine the payment and amount of future dividends.

NUCLEAR PLANT

12 Months Ended

Dec. 31, 2014

Notes to Consolidated Financial Statements [Abstract]

Nuclear Plant

NOTE 13. SAN ONOFRE NUCLEAR GENERATING STATION (SONGS)

SDG&E has a 20-percent ownership interest in SONGS, a nuclear generating facility near San Clemente, California, which ceased operations in June 2013. On June 6, 2013, Southern California Edison Company (Edison), the majority owner and operator of SONGS, notified SDG&E that it had reached a decision to permanently retire SONGS and seek approval from the Nuclear Regulatory Commission (NRC) to start the decommissioning activities for the entire facility. SONGS is subject to the jurisdiction of the NRC and the CPUC.

SDG&E, and each of the other owners, holds its undivided interest as a tenant in common in the property. Each owner is responsible for financing its share of expenses and capital expenditures. SDG&E’s share of operating expenses is included in Sempra Energy’s and SDG&E’s Consolidated Statements of Operations.

SONGS Outage and Retirement

Background

As part of the Steam Generator Replacement Project (SGRP), the steam generators were replaced in SONGS Units 2 and 3, and the Units returned to service in 2010 and 2011, respectively. Both Units were shut down in early 2012 after a water leak occurred in the Unit 3 steam generator. Edison concluded that the leak was due to unexpected wear from tube-to-tube contact. At the time the leak was identified, Edison also inspected and tested Unit 2 and subsequently found unexpected tube wear in Unit 2’s steam generator. In March 2012, in response to the shutdown of SONGS, the NRC issued a Confirmatory Action Letter (CAL) which, among other things, outlined the requirements for Edison to meet before the NRC would approve a restart of either of the Units.

In October 2012, Edison submitted a restart plan to the NRC proposing to operate Unit 2 at a reduced power level for a period of five months, at which time the Unit would be brought down for further inspection. Edison did not file a restart plan for Unit 3, pending further inspection and analysis of what repairs or modifications would be required to return the Unit to service in a safe manner. The NRC was reviewing the restart plan for Unit 2 proposed by Edison when in May 2013, the Atomic Safety and Licensing Board (ASLB), an adjudicatory arm of the NRC, concluded that the CAL process constituted a de facto license amendment proceeding that was subject to a public hearing. This conclusion by the ASLB resulted in further uncertainty regarding when a final decision might be made on restarting Unit 2.

The replacement steam generators were designed and provided by Mitsubishi Heavy Industries, Ltd., Mitsubishi Nuclear Energy Systems, Inc., and Mitsubishi Heavy Industries America, Inc. (collectively MHI). In July 2013, SDG&E filed a lawsuit against MHI seeking to recover damages SDG&E has incurred and will incur related to the design defects in the steam generators. In October 2013, Edison instituted arbitration proceedings against MHI seeking damages as well. We discuss these proceedings in Note 15.

Settlement Agreement to Resolve the CPUC’s Order Instituting Investigation (OII) into the SONGS Outage (SONGS OII)

SONGS OII

In November 2012, in response to the outage, the CPUC issued the SONGS OII, pursuant to California Public Utilities’ Code Section 455.5, which applies to cost recovery issues resulting from long-term outages of operating assets. The SONGS OII consolidated most SONGS outage-related issues into a single proceeding. The SONGS OII, among other things, designated all revenues associated with the investment in, and operation of, SONGS since January 1, 2012 as subject to refund to customers, pending the outcome of all phases of the proceeding. The SONGS OII proceeding was intended to determine the ultimate recovery of the investment in SONGS and the costs incurred since the commencement of this outage, including purchased replacement power costs, which are typically recovered through the Energy Resource Recovery Account (ERRA).

Entry Into Settlement Agreement

Pursuant to CPUC rules concerning settlements, SDG&E, Edison, The Utility Reform Network (TURN), and the CPUC Office of Ratepayer Advocates (ORA) held a settlement conference in March 2014 to discuss the terms to resolve the SONGS OII, and in April 2014, SDG&E, along with Edison, TURN, ORA and two other intervenors who joined the Settlement Agreement to the SONGS OII proceeding (collectively, the Settling Parties), filed a Settlement Agreement with the CPUC. On September 5, 2014, the CPUC issued a ruling proposing specific changes that included, as they relate to SDG&E, greater ratepayer benefit from third party cost recoveries and funding of a research program to reduce greenhouse gas emissions at a shareholder cost of $1 million per year for 5 years.

On September 23, 2014, the Settling Parties executed an Amended and Restated Settlement Agreement (Amended Settlement Agreement), which amended the Settlement Agreement to adopt all of the modifications and clarifications requested in the CPUC ruling. On October 9, 2014, the CPUC issued a proposed decision approving the Amended Settlement Agreement, which was adopted by the CPUC as a final decision on November 20, 2014.

As approved by the CPUC, the Amended Settlement Agreement constitutes a complete and final resolution of the SONGS OII and related CPUC proceedings regarding the SGRP at SONGS and the related outage and subsequent shutdown of SONGS. The Amended Settlement Agreement does not affect on-going or future proceedings before the NRC, or litigation or arbitration related to potential future recoveries from third parties (except for the allocation to ratepayers of any recoveries as described below) or proceedings addressing decommissioning activities and costs.

In November 2014, in accordance with the Amended Settlement Agreement, SDG&E filed an advice letter seeking authority from the CPUC, among other things, to implement the terms and establish the revenue requirement established by the Amended Settlement Agreement in rates starting January 1, 2015. In December 2014, the CPUC approved the advice letter and authorized SDG&E to update rates accordingly, subject to revision pending the results of a CPUC review of the changes to the revenue requirement proposed by SDG&E for consistency with the terms of the approved settlement decision. Upon conclusion of the CPUC’s review, SDG&E expects to receive a final disposition letter from the CPUC either confirming that SDG&E’s proposed rate changes were in compliance with the approved settlement decision or identifying changes that need to be made to the proposed rates and the resultant annual SONGS revenue requirement. Upon receipt of the final disposition letter, SDG&E will determine if final adjustment is necessary to increase or decrease the amount of the SONGS regulatory asset. SDG&E currently expects the CPUC to issue this final disposition letter in the first half of 2015.

The following is a summary of the Amended Settlement Agreement as it relates to SDG&E.

Disallowances, Refunds and Rate Recoveries

Based on the final decision, SDG&E will

remove from rate base, as of February 1, 2012, its investment in the SGRP and refund to its customers the amount collected for its investment in and any return on its investment in the SGRP since such date. As of February 1, 2012, SDG&E’s net book value in the SGRP was approximately $160 million;
be authorized to recover in rates its remaining investment in SONGS, including base plant and construction work in progress (CWIP), generally over a ten-year period commencing February 1, 2012, together with a return on investment at a reduced rate equal to:

SDG&E’s weighted average return on debt, plus
50 percent of SDG&E’s weighted average return on preferred stock, as authorized in the CPUC’s Cost of Capital proceeding then in effect (collectively, SONGS rate of return or SONGS ROR).

This results in a SONGS ROR of 2.75 percent for the period from February 1, 2012 through December 31, 2012 and 2.35 percent for the period from January 1, 2013 through December 31, 2014. The SONGS ROR for future periods will fluctuate based on SDG&E’s authorized weighted average returns on debt and preferred stock in effect for those future periods;

be authorized to recover in rates its recorded 2012 and 2013 operations and maintenance expenses; in addition, SDG&E will be authorized to recover in rates the recorded costs for the 2012 refueling outage of Unit 2, subject to customary prudency review;
be required to file an application in 2015 to recover in rates its 2014 recorded operation and maintenance expenses and non-operating operations and maintenance expenses;
be authorized to recover in rates its remaining investment in materials and supplies over a ten-year period commencing February 1, 2012, together with a return on investment at the SONGS ROR;
be authorized to recover in rates its remaining investment in nuclear fuel inventory and any costs incurred, or to be incurred, associated with nuclear fuel supply contracts over a ten-year period, together with a return equal to SDG&E’s commercial paper borrowing rate;
be authorized to recover in rates through its fuel and purchased power balancing account (ERRA), subject to the normal CPUC compliance reviews, all costs incurred to purchase power in the market to replace the power that would have been generated at SONGS if not for the outage and shutdown of SONGS, and to recover by December 31, 2015 any SONGS-related ERRA undercollections. SDG&E’s replacement power purchase costs through June 6, 2013 (the date of SONGS’ retirement) were approximately $165 million, using the methodology followed in the SONGS OII; and

have a five-year funding commitment of $1 million per year to the University of California (UC) Energy Institute (or other existing UC entity engaged in energy technology development) to create a Research Development and Demonstration program, whose goal would be to deploy new technologies, methodologies, and /or design modifications to reduce greenhouse gas (GHG) emissions, particularly at current and future generating plants in California. This term was a modification requested by the CPUC.

Potential Third Party Recoveries

The Amended Settlement Agreement also addresses how potential recoveries from third parties will be allocated between ratepayers and SDG&E, as we describe below.

As we discuss in more detail in Note 15, SDG&E and the other owners of SONGS carry accidental property damage and accidental outage insurance issued by Nuclear Electric Insurance Limited (NEIL), a mutual insurance company. Edison, on behalf of itself and the other minority owners in SONGS (including SDG&E), has placed NEIL on notice of claims under both policies. Under the Amended Settlement Agreement, recoveries from NEIL, if any, will first be applied to reimburse costs incurred in pursuing such recoveries, including litigation costs. To the extent SDG&E’s share of recoveries from NEIL attributable to the NEIL accidental outage policy exceeds such costs, recoveries will be allocated 95 percent to ratepayers and 5 percent to SDG&E. To the extent SDG&E’s share of recoveries from other NEIL policies (such as the accidental property damage policy) exceeds such costs, recoveries will be allocated 82.5 percent to ratepayers and 17.5 percent to SDG&E.

As we discuss in more detail in Note 15, SDG&E has filed a lawsuit against MHI, which designed and provided the steam generators that failed. This proceeding was stayed in favor of an arbitration proceeding instituted by Edison. Under the Amended Settlement Agreement, recoveries from MHI, if any, will first be applied to reimburse costs incurred in pursuing such recoveries, including litigation costs. To the extent SDG&E’s share of recoveries from MHI exceeds such costs, they will be allocated 50 percent to SDG&E and 50 percent to ratepayers.

The Amended Settlement Agreement provides that the resolution of the claims with NEIL and the dispute with MHI do not require CPUC approval, but requires that Edison and SDG&E:

use their best efforts to inform the CPUC of any settlements or resolutions of the issues to the extent possible without compromising any aspect of such settlements or resolutions, and

allow the CPUC to review documentation of final resolution of third-party litigation and litigation costs to ensure that the ratepayer refund calculations are accurately calculated and that the litigation costs are not exorbitant in relation to the recovery obtained.

There is no assurance that there will be any recoveries from NEIL or MHI or that if there are recoveries, that they will exceed the costs incurred to pursue them. Were there to be recoveries, SDG&E cannot provide any assurance as to when they would be received or the amount of any such recoveries. SDG&E currently expects that NEIL will make a coverage determination regarding the accidental outage policy by the end of 2015.

The Amended Settlement Agreement also provides SDG&E with an incentive in the event proceeds are secured from the sale of materials and supplies and/or nuclear fuel, as well as in the event that nuclear fuel investments are reduced by contract cancellations. This incentive allows SDG&E to retain 5 percent of its proportionate share of any sales proceeds and to recover 5 percent of its proportionate share of the excess of cancelled contract obligations over cancellation costs. The balance of the sale proceeds and cancellation benefits would be credited to ratepayers.

Accounting and Financial Impacts

In the second quarter of 2013, SDG&E reported a pretax loss from plant closure of $200 million ($119 million after-tax) as a result of its initial assessment of the financial impact of the outcome of the SONGS OII proceeding. In the first quarter of 2014, as a result of entering into the Settlement Agreement, SDG&E recorded a $13 million reduction to the pretax loss from plant closure, but a $9 million increase in the after-tax loss from plant closure. The after-tax loss included a $17 million charge to reduce certain tax regulatory assets that may no longer be recoverable in rates pursuant to the Settlement Agreement. In the third quarter of 2014, SDG&E recorded a charge for the impact of the modifications and clarifications in the Amended Settlement Agreement on the regulatory asset, which charge was not material. In the fourth quarter of 2014, in conjunction with filing the advice letter regarding revenue requirement and determining the timing of refunds to ratepayers, SDG&E recorded a charge to Plant Closure Loss of $19 million pretax ($12 million after-tax). The total Plant Closure Loss in 2014 was $6 million pretax ($21 million after-tax). A regulatory asset for the expected recovery of SONGS costs, consistent with the Amended Settlement Agreement, is recorded on the Consolidated Balance Sheets of Sempra Energy and SDG&E in Other Regulatory Assets (long-term). The amount of this regulatory asset is $308 million at December 31, 2014.

SDG&E does not expect that implementation of the Amended Settlement Agreement will have a material adverse impact on its future results of operations or financial condition.

NRC Proceedings

In December 2013, Edison received a final NRC Inspection Report that identified a violation for the failure to verify the adequacy of the thermal-hydraulic and flow-induced vibration design of the Unit 3 replacement steam generator. In January 2014, Edison provided a response to the NRC Inspection Report stating that MHI, as contracted by Edison to prepare the SONGS replacement steam generator design, was the party responsible for validating the design of the steam generators.

In addition, the NRC issued an Inspection Report to MHI containing a Notice of Nonconformance for its flawed computer modeling in the design of the replacement steam generators.

Because SONGS has ceased operation, NRC inspection oversight of SONGS will now be continued through the NRC’s Decommissioning Power Reactor Inspection Program to verify that decommissioning activities are being conducted safely, that spent fuel is safely stored onsite or transferred to another licensed location, and that the site operations and licensee termination activities conform to applicable regulatory requirements, licensee commitments and management controls.

Nuclear Decommissioning and Funding

As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison has begun the decommissioning phase of the plant. The process of decommissioning a nuclear power plant is governed by the regulations of various governmental and other agencies, including but not limited to, those of the NRC, the U.S. Department of the Navy (the land owner) and the CPUC. The NRC regulations generally categorize the decommissioning activities into three phases: initial activities, major decommissioning and storage activities, and license termination. Initial activities include providing notice of permanent cessation of operations (provided by Edison to the NRC on June 12, 2013) and notice of permanent removal of fuel from the reactor vessels (provided by Edison on June 28 and July 22, 2013 for Units 3 and 2, respectively). Within two years after the cessation of operations, the licensee (Edison) must submit a post-shutdown decommissioning activities report (PSDAR), an irradiated fuel management plan (IFMP) and a site-specific decommissioning cost estimate (DCE). Edison submitted each of the PSDAR, the IFMP and the DCE to the NRC in September 2014.

In accordance with state and federal requirements and regulations, SDG&E has assets held in trusts, referred to as the Nuclear Decommissioning Trusts (NDT), to fund decommissioning costs for SONGS Units 1, 2 and 3. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work will be done when Units 2 and 3 are decommissioned. At December 31, 2014, the fair value of SDG&E’s NDT assets was $1.1 billion. Except for the use of funds for the planning of decommissioning activities or NDT administrative costs, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs for Units 2 and 3. In February 2014, SDG&E filed a request with the CPUC for such authorization for costs incurred in 2013. Until CPUC approval to access the NDT to pay for such costs is received, SDG&E will use working capital to pay for any SONGS Units 2 and 3 decommissioning costs incurred, and such expenditures will be reimbursed from the NDT upon that approval.

SDG&E currently anticipates a decision regarding its ability to use the monies in the NDT by the end of 2015.

In December 2012, SDG&E and Edison filed a joint application with the CPUC requesting continued rate recovery to fund the NDT to ensure that the NDT has sufficient funding to pay for the estimated cost of decommissioning SONGS. SDG&E is currently authorized to recover $8 million annually to fund additional investments in the NDT. In December 2014, the CPUC issued a decision authorizing SDG&E to continue to collect and contribute to the NDT $8 million annually.

In December 2014, SDG&E and Edison filed a joint application with the CPUC submitting a detailed study of the costs to decommission SONGS Units 2 and 3. The cost study estimates the total decommissioning costs for Units 2 and 3 at $4.411 billion, of which SDG&E’s share is $899 million. The joint application requests that the CPUC determine the cost study to be reasonable and asks that SDG&E’s contributions to the NDT be set at zero ($0.00) beginning January 1, 2016, given the current expectation that the NDT will be sufficiently funded over time. The application also requests that the CPUC approve a standardized process for regularly reviewing the reasonableness of decommissioning activities and costs and authorizing disbursements from the NDT.

On September 5, 2014, the NRC approved Edison’s February 2014 request (made on behalf of SONGS co-owners) for exemptions from various federal decommissioning requirements. These exemptions provide NRC approval for SONGS co-owners to use NDT funds for all types of decommissioning activity costs, including fuel management and site restoration costs. As noted above, however, CPUC approval to access the NDT to pay for such costs is still required for SDG&E and Edison to use NDT funds.

Edison’s submission of the PSDAR and the DCE in September 2014 allows the SONGS co-owners to commence major decommissioning activities, and submission of the DCE provides the NRC authorization for the SONGS co-owners to access the majority of their decommissioning trust funds, both starting 90 days after the NRC receives the documents, unless the NRC staff raises objections. No objections were received during the 90-day period.

Nuclear Decommissioning Trusts

The amounts collected in rates for SONGS’ decommissioning are invested in externally managed trust funds. Amounts held by the trusts are invested in accordance with CPUC regulations. These trusts are shown on the Sempra Energy and SDG&E Consolidated Balance Sheets at fair value with the offsetting credits recorded in Regulatory Liabilities Arising from Removal Obligations.

The following table shows the fair values and gross unrealized gains and losses for the securities held in the trust funds. We provide additional fair value disclosures for the trusts in Note 10.

NUCLEAR DECOMMISSIONING TRUSTS
(Dollars in millions)
				Gross		Gross		Estimated
				unrealized		unrealized		fair
		Cost		gains		losses		value
At December 31, 2014:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies(1)		$	103	$	6	$	―	$	109
Municipal bonds(2)			121		8		―		129
Other securities(3)			206		7		(6)		207
Total debt securities			430		21		(6)		445
Equity securities			215		444		(4)		655
Cash and cash equivalents			30		1		―		31
Total		$	675	$	466	$	(10)	$	1,131
At December 31, 2013:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies		$	116	$	3	$	(2)	$	117
Municipal bonds			110		2		(1)		111
Other securities			155		3		(5)		153
Total debt securities			381		8		(8)		381
Equity securities			207		409		(2)		614
Cash and cash equivalents			39		―		―		39
Total		$	627	$	417	$	(10)	$	1,034
(1)	Maturity dates are 2016-2060.
(2)	Maturity dates are 2015-2047.
(3)	Maturity dates are 2015-2111.

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)
		Years ended December 31,
		2014		2013		2012
Proceeds from sales(1)		$	601	$	685	$	723
Gross realized gains			11		26		21
Gross realized losses			(11)		(18)		(13)
(1)	Excludes securities that are held to maturity.

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

Customer contribution amounts are determined by the CPUC using estimates of after-tax investment returns, decommissioning costs, and decommissioning cost escalation rates. Changes in investment returns and decommissioning costs may result in a change in future customer contributions.

Asset Retirement Obligation and Spent Nuclear Fuel

SDG&E’s asset retirement obligation related to decommissioning costs for the SONGS units was $713 million at December 31, 2014. That amount includes the cost to decommission Units 2 and 3, and the remaining cost to complete the decommissioning of Unit 1, which is substantially complete. The asset retirement obligation at December 31, 2014 is based on an updated cost study prepared in 2014 that reflects the acceleration of the start of decommissioning Units 2 and 3 as a result of the early closure of the plant. SDG&E’s share of decommissioning costs in 2014 dollars is approximately $937 million.

Unit 1 was permanently shut down in 1992, and physical decommissioning began in January 2000. Most structures, foundations and large components have been dismantled, removed and disposed of. Spent nuclear fuel has been removed from the Unit 1 Spent Fuel Pool and stored on-site in an independent spent fuel storage installation (ISFSI) licensed by the NRC. The decommissioning of Unit 1 remaining structures (subsurface and intake/discharge) will take place as Units 2 and 3 are decommissioned. The ISFSI will be decommissioned after a permanent storage facility becomes available and the DOE removes the spent fuel from the site. The Unit 1 reactor vessel is expected to remain on site until Units 2 and 3 are fully decommissioned. Until then, SONGS owners are responsible for interim storage of spent nuclear fuel at SONGS until the DOE accepts it for final disposal. Spent nuclear fuel for Units 2 and 3 has been stored in the SONGS spent fuel pools for each reactor and in the ISFSI.

We provide additional information about SONGS in Note 15.

CALIFORNIA UTILITIES' REGULATORY MATTERS

12 Months Ended

Dec. 31, 2014

Notes to Consolidated Financial Statements [Abstract]

Sempra Utilities' Regulatory Matters

NOTE 14. CALIFORNIA UTILITIES’ REGULATORY MATTERS

JOINT MATTERS

CPUC General Rate Case (GRC)

The CPUC uses a general rate case proceeding to prospectively set rates sufficient to allow the California Utilities to recover their reasonable cost of operations and maintenance and to provide the opportunity to realize their authorized rates of return on their investment.

The California Utilities filed their 2016 General Rate Case (2016 GRC) applications in November 2014. These filings requested revenue requirement increases of $133 million and $256 million for SDG&E and SoCalGas, respectively, over their 2015 revenue requirements. In February 2015, the CPUC issued a scoping memo setting the schedule for the proceeding, including the issuance of a proposed decision by the end of 2015.

In May 2013, the CPUC approved a final decision in the California Utilities’ 2012 GRC (Final 2012 GRC Decision). The Final 2012 GRC Decision was effective retroactive to January 1, 2012, and SDG&E and SoCalGas recorded the cumulative earnings effect of the retroactive application of the Final 2012 GRC Decision of $69 million and $37 million, respectively, in the second quarter of 2013. For SDG&E and SoCalGas, respectively, these amounts included an incremental earnings impact of $52 million and $25 million related to 2012 and $17 million and $12 million related to the first quarter of 2013.

The amount of revenue associated with the retroactive period is being recovered in SDG&E’s rates over a 28-month period beginning in September 2013, and in SoCalGas’ rates over a 31-month period beginning in June 2013. At December 31, 2014, SDG&E reported on its Consolidated Balance Sheet $162 million as a regulatory asset, all classified as current, representing the retroactive revenue from the Final 2012 GRC Decision to be recovered by SDG&E in rates through December 2015. At December 31, 2014, SoCalGas reported on its Consolidated Balance Sheet a regulatory asset of $52 million, all classified as current, representing the retroactive revenue from the Final GRC Decision to be recovered in rates through December 2015.

CPUC Cost of Capital

A CPUC cost of capital proceeding determines a utility’s authorized capital structure and authorized rate of return on rate base (ROR), which is a weighted average of the authorized returns on debt, preferred stock, and common equity (return on equity or ROE), weighted on a basis consistent with the authorized capital structure. The authorized ROR is the rate that the California Utilities are authorized to use in establishing rates to recover the cost of debt and equity used to finance their investment in CPUC-regulated electric distribution and generation as well as natural gas distribution, transmission and storage assets.

In addition, a cost of capital proceeding also addresses the automatic cost of capital adjustment mechanism (CCM) which applies market-based benchmarks to determine whether an adjustment to the authorized ROR is required during the interim years between cost of capital proceedings. The market-based benchmark for SDG&E’s and SoCalGas’ CCM is the 12-month average monthly A-rated utility bond index, as published by Moody’s for the 12-month period of October 1st through September 30th (CCM Period) of each calculation year. In the last cost of capital proceeding, SDG&E’s and SoCalGas’ CCM benchmark rate was set at 4.24 percent. If at the end of the CCM Period the monthly average benchmark rate falls outside of the established range of 3.24 percent to 5.24 percent, SDG&E’s and SoCalGas’ authorized ROE would be adjusted, upward or downward, by one-half of the difference between the 12-month average and the benchmark rate. In addition, the authorized recovery rate for SDG&E’s and SoCalGas’ cost of debt and preferred stock would be adjusted to their respective actual weighted average costs, with no change to the authorized capital structure. All three adjustments with the new rate would become effective on January 1st of the following year in which the benchmark range was exceeded. For the twelve-month period ended September 30, 2014, the 12-month average of monthly Moody’s A-rated utility bond index was 4.46 percent.

The CCM only applies during the intervening years between scheduled cost of capital proceedings. In the year the cost of capital proceeding is scheduled, the cost of capital proceeding takes precedence over CCM and will set new rates for the following year.

In December 2014, the CPUC granted both SDG&E and SoCalGas an extension of their filing deadlines for their next cost of capital applications by one year, from April 2015 to April 2016. The CPUC also extended the current CCM until the April 2016 filing date. The one year extension was made in response to a joint request by SDG&E, SoCalGas, Pacific Gas and Electric Company (PG&E) and Edison with the CPUC in November 2014.

SDG&E’s current CPUC-authorized ROR is 7.79 percent and SoCalGas’ current CPUC-authorized ROR is 8.02 percent based on their authorized capital structures as follows:

COST OF CAPITAL AND AUTHORIZED RATE STRUCTURE

SDG&E				SoCalGas
Authorized weighting	Authorized rate of recovery	Weighted authorized ROR		Authorized weighting	Authorized rate of recovery	Weighted authorized ROR
45.25%	5.00%	2.26%	Long-Term Debt	45.60%	5.77%	2.63%
2.75%	6.22%	0.17%	Preferred Stock	2.40%	6.00%	0.14%
52.00%	10.30%	5.36%	Common Equity	52.00%	10.10%	5.25%
100.00%		7.79%		100.00%		8.02%

SDG&E files separately with the FERC for authorized ROE on FERC-regulated electric transmission operations and assets as described below in “Federal Energy Regulatory Commission (FERC) Formulaic Rate Matters”.

Natural Gas Pipeline Operations Safety Assessments

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 rulemaking proceeding to examine what changes should be made to existing pipeline safety regulations for California natural gas pipelines. The California Utilities are parties to this proceeding.

In June 2011, the CPUC directed SoCalGas, SDG&E, PG&E and Southwest Gas to file comprehensive implementation plans to test or replace natural gas transmission pipelines located in populated areas that have not been pressure tested. The California Utilities filed their Pipeline Safety Enhancement Plan (PSEP) with the CPUC in August 2011. In their 2011 filing with the CPUC, the California Utilities estimated the total cost for Phase 1 of the two-phase plan to be $3.1 billion ($2.5 billion for SoCalGas and $600 million for SDG&E) over the 10-year period of 2012 to 2022. As a result of on-going efforts since this original filing, the California Utilities have been able to eliminate over two hundred miles of pipeline from the testing scope and have revised their total estimated cost for Phase 1 to $2.1 billion ($1.6 billion for SoCalGas and $500 million for SDG&E). The California Utilities requested that the incremental capital investment required as a result of any approved plan be included in rate base and that cost recovery be allowed for any other incremental cost not eligible for rate-base recovery.

In April 2012, the CPUC transferred the PSEP to the Triennial Cost Allocation Proceeding (TCAP) and authorized SDG&E and SoCalGas to establish regulatory accounts to record the incremental costs of initiating the PSEP prior to a final decision on the PSEP.

Also in April 2012, the CPUC issued a decision expanding the scope of the rulemaking proceeding to incorporate the provisions of California Senate Bill (SB) 705, which requires gas utilities to develop and implement a plan for the safe and reliable operation of their gas pipeline facilities. SDG&E and SoCalGas submitted their pipeline safety plans in June 2012. The CPUC decision also orders the utilities to undergo independent management and financial audits to assure that the utilities are fully meeting their safety responsibilities. The CPUC’s Safety and Enforcement Division will select the independent auditors and will oversee the audits. A schedule for the audits has not been established. In December 2012, the CPUC issued a final decision accepting the utilities’ pipeline safety plans filed pursuant to SB 705.

In June 2014, the CPUC issued a final decision in the TCAP proceeding addressing SDG&E’s and SoCalGas’ PSEP. Specifically, the decision:

approved the utilities’ model for implementing PSEP;
approved a process, including a reasonableness review, to determine the amount that the utilities will be authorized to recover from ratepayers for the interim costs incurred through the date of the final decision to implement PSEP, which is recorded in the regulatory accounts authorized by the CPUC as noted above;
approved balancing account treatment, subject to a reasonableness review, for incremental costs yet to be incurred to implement PSEP; and
established the criteria to determine the amounts that would not be eligible for cost recovery, including:

certain costs incurred or to be incurred searching for pipeline test records,
the cost of pressure testing pipelines installed after July 1, 1961 for which the company has not found sufficient records of testing, and
any undepreciated balances for pipelines installed after 1961 that were replaced due to insufficient documentation of pressure testing.

As a result of this decision, SoCalGas recorded an after-tax earnings charge of $5 million in 2014 for costs incurred in prior periods for which SoCalGas was disallowed recovery. After taking the amounts disallowed for recovery into consideration, as of December 31, 2014, SDG&E and SoCalGas have recorded PSEP costs of $2 million and $85 million, respectively, in the CPUC-authorized regulatory account. In regard to requesting recovery from customers for PSEP costs incurred and recorded in accordance with the TCAP decision, SDG&E and SoCalGas are authorized to file an application with the CPUC for recovery of such costs up to the date of the TCAP decision and then annually for costs incurred through the end of each calendar year beginning with the period ending December 31, 2015. SoCalGas and SDG&E currently expect to be able to file such applications by the third quarter of the year following and would expect a decision from the CPUC approximately 12 to 18 months following the date of the application (i.e. a decision on the recovery of costs recorded in the PSEP regulatory accounts as of December 31, 2015 would be expected by mid-2017). In response to this significant delay in receiving the authority to recover PSEP costs incurred from customers, in October 2014, SDG&E and SoCalGas filed a request with the CPUC for authority to recover PSEP costs from customers as incurred, subject to refund pending the results of a reasonableness review by the CPUC, instead of in the subsequent year. In December 2014, SDG&E and SoCalGas filed an application with the CPUC for recovery of $0.1 million and $46 million, respectively, in costs recorded in the regulatory account through June 11, 2014. We requested a decision in 2015.

In July 2014, the ORA and TURN filed a joint application for rehearing of the CPUC’s June 2014 final decision. The ORA and TURN alleged that the CPUC made a legal error in directing that ratepayers, not shareholders, be responsible for the costs associated with testing or replacing transmission pipelines that were installed between January 1, 1956 and July 1, 1961 for which the California Utilities do not have a record of a pressure test. In November 2014, the CPUC denied the ORA and TURN request for rehearing of the decision adopting the PSEP. In December 2014, ORA and TURN sought rehearing of the CPUC’s decision on rehearing. In late December 2014, SoCalGas and SDG&E filed their opposition to this second application for rehearing, and are continuing to implement PSEP in accordance with the June 2014 CPUC decision.

Southern Gas System Reliability Project

In December 2013, SoCalGas and SDG&E filed a joint application with the CPUC seeking authority to recover the full cost of the Southern Gas System Reliability Project. Also known as the North-South Gas Project, the project will enhance reliability on the southern portions of the California Utilities’ integrated natural gas transmission system (Southern System). The estimated cost of the project, as originally filed, is between $800 million to $850 million. As proposed, the project consists of three components: 1) constructing an approximately 60-mile, 36-inch natural gas transmission pipeline between the SoCalGas Adelanto compressor station and the Moreno pressure limiting station; 2) upgrading the Adelanto compressor station; and 3) constructing an approximately 31-mile, 36-inch pipeline from the Moreno pressure limiting station to a pressure limiting station in Whitewater. In November 2014, the California Utilities revised the scope of the proposed project to only include connecting the Adelanto compressor station and Moreno pressure limiting station with approximately 65 miles of 36-inch pipeline and upgrading the Adelanto compressor station, and eliminating the Moreno-Whitewater pipeline. As a result of the revised scope of the project, the California Utilities assessed the estimated cost of the revised project and confirmed the original cost estimate of $800 million to $850 million, while still providing almost all of the benefits for customers. Given the revised project scope, an updated schedule in this proceeding is currently being developed. Depending upon this updated schedule and subject to environmental permitting and approval by the CPUC, we expect the project to be in service by the end of 2019.

Utility Incentive Mechanisms

The CPUC applies performance-based measures and incentive mechanisms to all California investor-owned utilities, under which the California Utilities have earnings potential above authorized base margins if they achieve or exceed specific performance and operating goals. Generally, for performance-based awards, if performance is above or below specific benchmarks, the utility is eligible for financial awards or subject to financial penalties. SDG&E has incentive mechanisms associated with:

operational incentives

energy efficiency

SoCalGas has incentive mechanisms associated with:

energy efficiency
natural gas procurement

unbundled natural gas storage and system operator hub services

Incentive awards are included in our earnings when we receive any required CPUC approval of the award. We would record penalties for results below the specified benchmarks in earnings when we believe it is more likely than not that the CPUC would assess a penalty.

Energy Efficiency

The CPUC established incentive mechanisms that are based on the effectiveness of energy efficiency programs. In December 2012, the CPUC issued a final decision adopting a mechanism for the 2010–2012 program cycle and approving shareholder awards of $3.3 million for SDG&E and $2.7 million for SoCalGas for their energy efficiency program performance in 2010 under the mechanism. The decision established an annual process for the utilities to obtain awards for their performance in 2011 and 2012.

In December 2013, the CPUC awarded $3.1 million to SoCalGas and $3.9 million to SDG&E for their 2011 program year results. In December 2014, the CPUC approved awards to SoCalGas and SDG&E of $5.9 million and $7.5 million, respectively, for program years 2012 and 2013. Of these amounts, SoCalGas and SDG&E will receive initial 2013 program awards of $1.5 million and $2.5 million, respectively, and the CPUC will address the remaining 2013 program awards in 2015.

Unbundled Natural Gas Storage and System Operator Hub Services

The CPUC has established a revenue sharing mechanism, effective through 2015, which provides for the sharing between ratepayers and SoCalGas (shareholders) of the net revenues generated by SoCalGas’ unbundled natural gas storage and system operator hub services. Annual net revenues (revenues less allocated service costs) under the mechanism are shared on a graduated basis, as follows:

the first $15 million of net revenue to be shared 90 percent ratepayers/10 percent shareholders;
the next $15 million of net revenue to be shared 75 percent ratepayers/25 percent shareholders;
all additional net revenues to be shared evenly between ratepayers and shareholders; and

the maximum total annual shareholder-allocated portion of the net revenues cannot exceed $20 million.

SoCalGas is seeking to extend the mechanism through at least 2019, but revise the sharing to 60 percent ratepayers/40 percent shareholders to reflect changes in the market for storage services. The current annual shareholder earnings cap of $20 million would remain in place.

Natural Gas Procurement

The California Utilities procure natural gas on behalf of their core natural gas customers. The CPUC has established incentive mechanisms to allow the California Utilities the opportunity to share in the savings and/or costs from buying natural gas for their core customers at prices below or above monthly market-based benchmarks. SoCalGas procures natural gas for SDG&E’s core natural gas customers’ requirements. SoCalGas’ gas cost incentive mechanism (GCIM) is applied on the combined portfolio basis.

The CPUC issued final decisions in 2014, 2013 and 2012 approving GCIM awards for SoCalGas of $5.8 million, $5.4 million and $6.2 million, respectively, for the 12-month periods ending March 31, 2013, 2012 and 2011, respectively. SoCalGas filed an application with the CPUC for approval of a $13.7 million GCIM award for natural gas procured for its core customers during the 12-month period ending March 31, 2014. In February 2015, the CPUC issued a final decision approving the $13.7 million GCIM award as requested by SoCalGas. SoCalGas will recognize this award in its financial results for the first quarter of 2015.

Operational Incentives

The CPUC may establish operational incentives and associated performance benchmarks as part of a general rate case or cost of service proceeding. In the California Utilities’ Final 2012 GRC Decision described above, SDG&E was directed to establish a performance measure and incentive for electric reliability. In September 2014, the CPUC approved SDG&E’s proposed mechanism, which will apply to calendar year 2015 and be considered in the 2016 GRC. The CPUC did not establish any operational incentives for SoCalGas in the Final 2012 GRC Decision.

SDG&E MATTERS

SONGS

We discuss regulatory and other matters related to SONGS in Note 13.

Power Procurement and Resource Planning

Background—Electric Industry Regulation

California’s legislative response to the 2000 – 2001 energy crisis resulted in the California Department of Water Resources (DWR) purchasing a substantial portion of power for California’s electricity users. In 2001, the DWR entered into long-term contracts with suppliers, including Sempra Natural Gas, to provide power for the utility procurement customers of each of the California investor-owned utilities (IOUs), including SDG&E. The CPUC allocates the power and its administrative responsibility, including collection of power contract costs from utility customers, among the IOUs. The last of these power contracts expired in 2013, with one remaining transportation contract allocated to SDG&E that will expire in 2018.

Renewable Energy

SDG&E is subject to the Renewables Portfolio Standard (RPS) Program administered by both the CPUC and the California Energy Commission, which requires 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. The CPUC began a rulemaking proceeding in May 2011 to address the implementation of the 33% RPS Program.

The 33% RPS Program contains flexible compliance mechanisms that can be used to comply with or meet the 33% RPS Program mandates in 2011 and beyond. The mechanisms provide for a CPUC waiver under certain conditions, including: 1) a finding of inadequate transmission; 2) delays in the start-up of commercial operations of renewable energy projects due to permitting or interconnection; or 3) unexpected curtailment by an electric system balancing authority, such as the California ISO.

SDG&E continues to procure renewable energy supplies to achieve the 33% 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.

In August 2014, SDG&E made a required filing with the CPUC indicating that its procurement of renewable energy during the period January 1, 2011 through December 31, 2013 exceeded the 20-percent minimum amount required by RPS. SDG&E believes it will be able to comply with the 33% RPS Program requirements based on its contracting activity and, if necessary, application of the flexible compliance mechanisms. SDG&E’s failure to comply with the RPS Program requirements could subject it to CPUC-imposed penalties, which could materially affect its business, cash flows, financial condition, results of operations and/or prospects. The limit on the total amount of penalties for failure to comply with the RPS requirements is $75 million for the first compliance period (2011-2013); $75 million for the second compliance period (2014-2016); $100 million for the third compliance period (2017-2020); and $25 million for each annual compliance period beginning in 2021.

Cleveland National Forest Transmission Projects

SDG&E filed an application with the CPUC in October 2012 for a permit to construct various transmission replacement projects in and around the Cleveland National Forest (CNF). The proposed projects will replace and fire-harden five existing transmission lines and six existing distribution lines at an estimated cost of between $400 million and $450 million. As directed by the CPUC, SDG&E filed an amended application in June 2013 to provide notice of certain alternatives proposed by the U.S. Forest Service (USFS) in connection with SDG&E’s request for a Master Special Use Permit (MSUP). USFS approval of the MSUP will establish land rights and conditions for SDG&E’s continued operation and maintenance of facilities located within the CNF. CPUC approval is not required for the MSUP, even though construction of the projects is subject to review by both the USFS and CPUC. A draft environmental impact report (EIR/EIS), developed jointly by the CPUC and USFS, was issued in September 2014 and a final EIR/EIS is expected in early 2015. SDG&E currently expects a CPUC decision approving the transmission projects in the second half of 2015 and then expects the various phases of this project to be placed in service starting in 2016 and continuing through the end of the project in 2019.

Sycamore-Peñasquitos Transmission Project

In March 2014, the CAISO selected SDG&E, as a result of a competitive bid process, to construct the Sycamore-Peñasquitos 230-kilovolt (kV) transmission project, which will provide a 16.7-mile transmission connection between SDG&E’s Sycamore Canyon and Peñasquitos substations. In July 2014, the CPUC notified SDG&E that the application requesting a Certificate of Public Convenience and Necessity (CPCN) to construct the line, which was filed with the CPUC in April 2014, is complete. The estimated $120 million to $150 million project was identified by the CAISO and a state task force as necessary to ensure grid reliability given the closure of SONGS. The project will also serve to strengthen renewable energy infrastructure in the region. In October 2014, SDG&E filed a request with FERC seeking, among other things, a 100 basis point ROE adder for this project. We expect a FERC decision on this filing in 2015. SDG&E expects a CPUC decision approving the project in the first half of 2016, with the line expected to be in service in mid-2017.

South Orange County Reliability Enhancement

SDG&E filed an application with the CPUC in May 2012 requesting a CPCN for the South Orange County Reliability Enhancement project. The purpose of the project is to enhance the capacity and reliability of SDG&E’s electric service to the south Orange County area. The proposed project primarily includes replacing and upgrading approximately eight miles of transmission lines and rebuilding and upgrading a substation at an existing site. SDG&E expects a draft environmental report to be issued in early 2015 and a final CPUC decision approving the estimated $400 million to $500 million project in the first half of 2016. SDG&E obtained approval for the project from the CAISO in May 2011. As the project is planned in phases, SDG&E currently expects the entire project to be in service in 2020.

South Bay Substation and Relocation Project

SDG&E filed an application in 2010 with the CPUC for a permit to construct a new substation, the Bay Boulevard substation, to replace the aging and obsolete South Bay substation to accommodate regional energy demands. The existing substation will be demolished when the Bay Boulevard substation has been constructed, energized and all transmission lines have been transferred. In October 2013, the CPUC approved SDG&E’s permit to construct the Bay Boulevard substation at SDG&E’s proposed site. The project is estimated at $145 million to $175 million. In March 2014, the California Coastal Commission approved the coastal development permit for the project, subject to certain additional environmental enhancements. In July 2014, SDG&E filed a petition with the CPUC to request modifications to the prior CPUC decision to authorize the additional construction activities required by the coastal development permit. In January 2015, the CPUC issued a decision approving the petition for modification. SDG&E is in the process of obtaining the remaining approvals and permits required to begin construction. SDG&E currently expects the project to be in service in 2017.

Federal Energy Regulatory Commission (FERC) Formulaic Rate Matters

In February 2013, SDG&E submitted its Electric Transmission Formula Rate (TO4) filing with the FERC to set the rate making methodology and rate of return for SDG&E’s FERC-regulated electric transmission operations and assets for a multi-year period beginning September 1, 2013. The TO4 filing proposed a FERC ROE of 11.3 percent and requested: 1) rates to be determined by a base period of historical costs and a forecast of capital investments and 2) a true-up period similar to balancing account treatment that is designed to provide SDG&E earnings of no more and no less than its actual cost of service including its authorized return on investment. In June and July 2013, the FERC issued orders accepting the filing, subject to refund, and established settlement and hearing procedures, with rates being effective September 1, 2013.

On January 31, 2014, SDG&E filed an uncontested multi-party settlement at the FERC regarding the TO4 filing. The settlement, approved by FERC in May 2014, will be in effect through December 31, 2018, is subject to a one-time right of termination by any party, and established a 10.05 percent ROE. The settlement also requires SDG&E to make annual information filings on December 1 of a given year to update rates for the following calendar year. SDG&E also has the right to file for any ROE incentives that might apply under FERC rules. SDG&E’s debt to equity ratio will be set annually based on the actual ratio at the end of each year.

Energy Resource Recovery Account (ERRA)

The ERRA is the regulatory balancing account that SDG&E uses to recover the electric fuel and purchased power costs it incurs to provide energy to its bundled service customers. SDG&E files an application with the CPUC each year to establish the ERRA revenue requirement needed for the following calendar year. Additionally, to the extent the ERRA balance exceeds a certain tolerance or “ERRA Trigger”, SDG&E must file an application to adjust its rates upward or downward, as applicable, to address the under- or overcollected ERRA balance, respectively. In February 2014, the CPUC issued a decision granting SDG&E authority to increase rates to recover an ERRA Trigger revenue requirement of $221 million, which rate increase was effective on April 1, 2014 and will continue through December 31, 2015. In May 2014, the CPUC issued a final decision approving SDG&E’s proposed 2014 ERRA revenue requirement of $1.23 billion, an increase of $242 million compared to the 2013 ERRA revenue requirement of $988 million. SDG&E implemented the increased revenue requirement on August 1, 2014.

Excess Wildfire Claims Cost Recovery

In August 2009, SDG&E and SoCalGas filed an application, along with other related filings, with the CPUC proposing a new framework and 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 distribution rates. In December 2012, the CPUC issued a final decision that ultimately did not approve the proposed framework for the utilities but allowed SDG&E to maintain its authorized memorandum account so that SDG&E may file applications with the CPUC requesting recovery of amounts properly recorded in the memorandum account at a later time, subject to reasonableness review.

In February 2014, the Presiding Judge assigned by the FERC to SDG&E’s annual Electric Transmission Formula Rate filing (TO3 Cycle 6) issued an Initial Decision and an Order on Summary Judgment which authorizes SDG&E to recover all of the costs incurred and allocated to SDG&E’s FERC-regulated operations for the 12-month period ended March 31, 2012, resulting from settlement activities for 2007 wildfire claims. In connection with this proceeding, the CPUC filed an appeal in the Ninth Circuit Court of Appeal of an earlier decision by the FERC denying the CPUC’s request to postpone the FERC proceeding pending CPUC action on cost recovery of the excess wildfire costs. The FERC has sought dismissal of the CPUC’s appeal on procedural grounds. The Court of Appeal has not yet ruled on the merits.

SDG&E intends to pursue recovery of the costs it has incurred for settlement activities associated with the 2007 wildfire claims allocated to SDG&E’s CPUC-regulated operations by filing an application with the CPUC in 2015. SDG&E will continue to assess the potential for recovery of these costs in rates. We discuss the impact should SDG&E conclude that recovery in rates is no longer probable in “Legal Proceedings — SDG&E — 2007 Wildfire Litigation” in Note 15. We discuss how we assess the probability of recovery of our regulatory assets in Note 1.

SOCALGAS MATTERS

Advanced Metering Infrastructure

In November 2011, the ORA and TURN filed a joint petition requesting that the CPUC reconsider its prior approval of SoCalGas’ advanced metering infrastructure (AMI) project and stay AMI deployment while the CPUC considered the request. In June 2014, the CPUC denied the ORA/TURN petition, and SoCalGas is continuing its deployment of AMI pursuant to the April 2010 CPUC decision approving the project.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2014

Notes to Consolidated Financial Statements [Abstract]

Commitments and Contingencies

NOTE 15. COMMITMENTS AND CONTINGENCIES

LEGAL PROCEEDINGS

We accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount 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 coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued.

At December 31, 2014, Sempra Energy’s accrued liabilities for legal proceedings, including associated legal fees and costs of litigation, on a consolidated basis, were $68 million. At December 31, 2014, accrued liabilities for legal proceedings for SDG&E and SoCalGas were $49 million and $12 million, respectively.

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.”

A September 2008 staff report issued by the CPUC’s Consumer Protection and Safety Division, now known as the Safety and Enforcement Division (CPSD), 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. 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. SDG&E has resolved all but five of these lawsuits. Four of these remaining cases have been scheduled for damages-only trials in 2015, where the value of any compensatory damages resulting from the fires will be determined.

SDG&E’s settled claims and defense costs have exceeded its $1.1 billion of liability insurance coverage for the covered period and the $824 million recovered from third party contractors and Cox. SDG&E has settled all of the approximately 19,000 claims brought by homeowner insurers for damage to insured property relating to the three fires. Under the settlement agreements, SDG&E agreed to 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. Through December 31, 2014, SDG&E has expended $483 million in excess of amounts covered by insurance and amounts recovered from third parties to pay for the settlement of wildfire claims and related costs.

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 now settled almost all of these claims of the approximately 6,500 plaintiffs for a total of approximately $1.3 billion. Substantially all of the remaining plaintiffs have submitted settlement demands and damage estimates, which total approximately $60 million. SDG&E does not expect additional plaintiffs to file lawsuits given the applicable statutes of limitation, but does expect to receive additional settlement demands and damage estimates from existing plaintiffs until those cases are resolved. SDG&E has established reserves for the wildfire litigation as we discuss below.

SDG&E has concluded that it is probable that it will be permitted to recover in rates a substantial portion of the costs incurred to resolve wildfire claims in excess of its liability insurance coverage and the amounts recovered from third parties. Accordingly, although such recovery will require future regulatory approval, at December 31, 2014, Sempra Energy and SDG&E have recorded assets of $373 million in Other Regulatory Assets (long-term) on their Consolidated Balance Sheets, including $366 million related to CPUC-regulated operations, which represents the 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 recovered from third parties.

SDG&E will continue to gather information to evaluate and assess the remaining wildfire claims and the likelihood, amount and timing of related recoveries in rates and will make appropriate adjustments to wildfire reserves and the related regulatory assets as additional information becomes available. Should SDG&E conclude that recovery in rates is no longer probable, SDG&E will record a charge against earnings at the time such conclusion is reached. If SDG&E had concluded that the recovery of regulatory assets related to CPUC-regulated operations was no longer probable or was less than currently estimated at December 31, 2014, the resulting after-tax charge against earnings would have been up to approximately $217 million. Recovery of these costs from customers will require future regulatory actions, and a failure to obtain substantial or full 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 businesses, financial condition, cash flows, results of operations and prospects.

We provide additional information about excess wildfire claims cost recovery and related CPUC actions in Note 14 and discuss how we assess the probability of recovery of our regulatory assets in Note 1.

Sunrise Powerlink Electric Transmission Line

In February 2011, opponents of the Sunrise Powerlink, a 500-kV electric transmission line between the Imperial Valley and the San Diego region that was energized and placed in service in June 2012, filed a lawsuit in Sacramento County Superior Court 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 the California Environmental Quality Act. The Superior Court denied the plaintiffs’ petition in July 2012, and the plaintiffs have appealed.

A claim for additional compensation was submitted in 2013 by one of SDG&E’s contractors on the Sunrise Powerlink project. The contractor was awarded the transmission line overhead and underground construction contract on a fixed-fee basis of $456 million after agreed-upon amendments. The contractor asserted that it was owed additional compensation above the fixed-fee portion of the contract. In May 2013, the contractor filed claims totaling $180 million, including one in San Diego County for the sum of $99 million and the other in Imperial County for the sum of $81 million, seeking foreclosure of previously filed mechanics liens. In October 2013, the contractor served a Demand for Arbitration pursuant to contractual provisions and SDG&E counterclaimed against the contractor. In December 2014, SDG&E and the contractor settled their claims with SDG&E agreeing to pay the contractor $65 million as compensation for additional costs incurred by the contractor for the work performed.

September 2011 Power Outage

In September 2011, a power outage lasting approximately 12 hours affected millions of people from Mexico to southern Orange County, California. Within several days of the outage, several SDG&E customers filed a class action lawsuit in Federal District Court in San Diego against Arizona Public Service Company, Pinnacle West Capital Corporation and SDG&E alleging that the companies failed to prevent the outage. The lawsuit sought recovery of unspecified amounts of damages, including punitive damages. In July 2012, the court granted SDG&E’s motion to dismiss the punitive damages request and dismissed Arizona Public Service Company and Pinnacle West Capital Corporation from the lawsuit. In September 2013, the court granted SDG&E’s motion for summary judgment and dismissed the lawsuit. In October 2013, the plaintiffs appealed the court’s dismissal of their action. In January 2015, SDG&E settled this claim for an insignificant amount and the appeal and lawsuit have been dismissed.

The FERC and North American Electric Reliability Corporation (NERC) Staff conducted a joint inquiry to determine the cause of the power failure and issued a report in May 2012 regarding their findings. In January 2014, FERC Enforcement Staff issued a Staff Notice of Alleged Violations, in which FERC Enforcement Staff alleged violations of various Reliability Standards by several entities. FERC Enforcement Staff did not allege or find any violations by SDG&E.

Smart Meters Patent Infringement Lawsuit

In October 2011, SDG&E was sued by a Texas design and manufacturing company in Federal District Court, Southern District of California, and later transferred to the Federal District Court, Western District of Oklahoma, alleging that SDG&E’s recently installed smart meters infringed certain patents. The meters were purchased from a third party vendor that has agreed to defend and indemnify SDG&E. The lawsuit seeks injunctive relief and recovery of unspecified amounts of damages.

Lawsuit Against Mitsubishi Heavy Industries, Ltd.

On July 18, 2013, SDG&E filed a lawsuit in the Superior Court of California in the County of San Diego against Mitsubishi Heavy Industries, Ltd., Mitsubishi Nuclear Energy Systems, Inc., and Mitsubishi Heavy Industries America, Inc. (collectively MHI). The lawsuit seeks to recover damages SDG&E has incurred and will incur related to the design defects in the steam generators MHI provided to the SONGS nuclear power plant. The lawsuit asserts a number of causes of action, including fraud, based on the representations MHI made about its qualifications and ability to design generators free from defects of the kind that resulted in the permanent shutdown of the plant and further seeks to set aside the contractual limitation of damages that MHI has asserted. On July 24, 2013, MHI removed the lawsuit to the United States District Court for the Southern District of California and on August 8, 2013, MHI moved to stay the proceeding pending resolution of the dispute resolution process involving MHI and Edison arising from their contract for the purchase and sale of the steam generators. On October 16, 2013, Edison initiated an arbitration proceeding against MHI seeking damages stemming from the failure of the replacement steam generators. In late December 2013, MHI answered and filed a counter-claim against Edison. On March 14, 2014, MHI’s motion to stay the United States District Court proceeding was granted with instructions that require the parties to allow SDG&E to participate in the ongoing Edison/MHI arbitration. As a result, SDG&E is now participating in the arbitration as a claimant and respondent.

Investment in Wind Farm

In 2011, the CPUC and FERC approved SDG&E’s estimated $285 million tax equity investment in a wind farm project and its purchase of renewable energy credits from that project. SDG&E’s contractual obligations to both invest in the Rim Rock wind farm and to purchase renewable energy credits from the wind farm under the power purchase agreement are subject to the satisfaction of certain conditions which, if not achieved, would allow SDG&E to terminate the power purchase agreement and not make the investment. In December 2013, SDG&E received a closing notice from the project developer indicating that all such conditions had been met. SDG&E responded to the closing notice asserting that the contractual conditions had not been satisfied. On December 19, 2013, SDG&E filed a complaint against the project developer in San Diego Superior Court, asking that the court determine that SDG&E is entitled to terminate both the investment contract and the power purchase agreement due to the project developer’s failure to satisfy certain conditions. The project developer filed a separate complaint against SDG&E in Montana state court asking that court to determine that SDG&E breached the investment contract and the power purchase agreement, and asking for several categories of relief, including requiring SDG&E to invest in the project, requiring SDG&E to continue performing under the power purchase agreement, and payment of damages.

On January 27, 2014, the Montana court ordered SDG&E to continue making payments under the power purchase agreement pending a hearing on the project developer’s preliminary injunction motion. On March 14, 2014, SDG&E notified the project developer that the investment agreement expired by its own terms because a closing had not occurred by that date. The project developer is disputing SDG&E’s position. On March 28, 2014, SDG&E filed an amended complaint against the project developer in San Diego seeking damages and declaratory relief that SDG&E was entitled to terminate the power purchase agreement and to permit the investment agreement to expire. On April 25, 2014, the Montana court granted the project developer’s preliminary injunction motion to prevent SDG&E from terminating the power purchase agreement on the grounds that the project developer would be irreparably harmed if the payments were not made while the parties’ respective rights were being determined in the litigation. The court did not rule on the merits of the parties’ claims. On July 18, 2014, the Montana Supreme Court determined that the parties’ contractual agreement to resolve any disputes in San Diego was mandatory, and ordered that the Montana action be dismissed. The San Diego court has scheduled a trial for January 22, 2016.

SoCalGas

SoCalGas, along with Monsanto Co., Solutia, Inc., Pharmacia Corp. and Pfizer, Inc., are defendants in seven Los Angeles County Superior Court lawsuits filed beginning 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. SoCalGas has settled three of the seven lawsuits for an amount that is not significant.

Sempra Mexico

Permit Challenges and Property Disputes

Sempra Mexico has been engaged in a long-running land dispute relating to property adjacent to its Energía Costa Azul LNG terminal near Ensenada, Mexico. Ownership of the adjacent property is not required by any of the environmental or other regulatory permits issued 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, and filed an action in the Federal Court challenging the permits. In February 2011, based on a complaint by the claimant, the municipality of Ensenada opened an administrative proceeding and sought 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. In the second quarter of 2014, the municipality of Ensenada dismissed the administrative proceeding, which is subject to an administrative appeal, pending for resolution before the Administrative Court of Baja California. Sempra Mexico 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 claimant also filed complaints in the federal Agrarian Court challenging the refusal of the Secretaría de la Reforma Agraria (now the Secretaría de Desarrollo Agrario, Territorial y Urbano, or SEDATU) in 2006 to issue a title to him for the disputed property. In November 2013, the Agrarian Court ordered that SEDATU issue the requested title and cause it to be registered. Both SEDATU and Sempra Mexico have challenged the rulings. Sempra Mexico expects additional proceedings regarding the claims, although such proceedings are not related to the permit challenges referenced above. The property claimant also filed a lawsuit in July 2010 against Sempra Energy in Federal District Court in San Diego seeking compensatory and punitive damages as well as the 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. Sempra Energy has disputed the claims and allegations in this lawsuit.

Additionally, several administrative challenges are pending in Mexico before the Mexican environmental protection agency (SEMARNAT) and/or the Federal Tax and Administrative Courts seeking revocation of the environmental impact authorization (EIA) issued to Energía Costa Azul in 2003. These cases generally allege that the conditions and mitigation measures in the EIA are inadequate and challenge findings that the activities of the terminal are consistent with regional development guidelines. The Mexican Supreme Court decided to exercise jurisdiction over one such case, and in March 2014, issued a resolution denying the relief sought by the plaintiff on the grounds its action was not timely presented. A similar administrative challenge seeking to revoke the port concession for our marine operations at our Energía Costa Azul LNG terminal, which was filed with and rejected by the Mexican Communications and Transportation Ministry, remains on appeal in Mexican federal court as well.

Two real property cases have been filed against Energía Costa Azul in which the plaintiffs seek to annul the recorded property titles for parcels on which the Energía Costa Azul LNG terminal is situated and to obtain possession of different parcels that allegedly sit in the same place; one of these cases was dismissed in September 2013 at the direction of the state appellate court. A third complaint was served in April 2013 seeking to invalidate the contract by which Energía Costa Azul purchased another of the terminal parcels, on the grounds the purchase price was unfair. Sempra Mexico expects further proceedings on the remaining two matters.

Sempra Natural Gas

Liberty Gas Storage, LLC (Liberty) received a demand for arbitration from Williams Midstream Natural Gas Liquids, Inc. (Williams) 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.

Other Litigation

As described in Note 4, Sempra Energy holds a noncontrolling interest in RBS Sempra Commodities, a limited liability partnership in the process of being liquidated. RBS, our partner in the joint venture, was notified by the United Kingdom’s Revenue and Customs Department (HMRC) that it was investigating value-added tax (VAT) refund claims made by various businesses in connection with the purchase and sale of carbon credit allowances. HMRC advised RBS that it had determined that it had grounds to deny such claims by RBS related to transactions by RBS Sempra Energy Europe (RBS SEE), a former indirect subsidiary of RBS Sempra Commodities that was sold to JP Morgan. HMRC asserted that RBS was not entitled to reduce its VAT liability by VAT paid during 2009 because RBS knew or should have known that certain vendors in the trading chain did not remit their own VAT to HMRC. In September 2012, HMRC issued a protective assessment of £86 million for the VAT paid in connection with these transactions. In October 2014, RBS filed a Notice of Appeal of the September 2012 assessment with the First-tier Tribunal. As a condition of the appeal, RBS was required to pay the assessed amount. The payment also stops the accrual of interest that could arise should it ultimately be determined that RBS has a liability for some of the tax.

In August 2007, the U.S. Court of Appeals for the Ninth Circuit issued a decision reversing and remanding certain FERC orders declining to provide refunds regarding short-term bilateral sales up to one month in the Pacific Northwest for the January 2000 to June 2001 time period. 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 resolved all issues with regard to sales between the California Department of Water Resources and Sempra Commodities in the Pacific Northwest, but potential claims may exist regarding sales in the Pacific Northwest between Sempra Commodities and other parties. The FERC is in the process of addressing these potential claims on remand. 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 Ltd., one of the buyers of RBS Sempra Commodities’ businesses, 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.

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

CONTRACTUAL COMMITMENTS

Natural Gas Contracts

SoCalGas has the responsibility for procuring natural gas for both SDG&E’s and SoCalGas’ core customers in a combined portfolio. SoCalGas buys natural gas under short-term and long-term contracts for this portfolio. Purchases are from various producing regions in the southwestern U.S., U.S. Rockies, and Canada and are primarily based on published monthly bid-week indices.

SoCalGas transports natural gas primarily under long-term firm interstate pipeline capacity agreements that provide for annual reservation charges, which are recovered in rates. SoCalGas has commitments with interstate pipeline companies for firm pipeline capacity under contracts that expire at various dates through 2028.

Sempra Natural Gas’ and Sempra Mexico’s businesses have various natural gas purchase agreements to fuel natural gas-fired power plants and capacity agreements for natural gas storage and transportation.

Sempra Natural Gas has an agreement for capacity on the Rockies Express pipeline through November 2019, as we discuss in Note 4. The capacity costs are offset by revenues from releases of the capacity contracted to third parties. Certain capacity release commitments totaling $22 million concluded during 2013, and contracting activity related to that capacity has not been sufficient to offset all of our capacity payments to Rockies Express. Including capacity released to others, Sempra Natural Gas’ obligation to Rockies Express for future capacity payments is expected to be $11 million in 2015, $14 million in each of 2016 and 2017, $34 million in 2018, and $67 million in 2019.

At December 31, 2014, the future minimum payments under existing natural gas contracts and natural gas storage and transportation contracts were

FUTURE MINIMUM PAYMENTS – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		Storage and
		transportation		Natural gas(1)		Total(1)
2015		$	238	$	194	$	432
2016			256		152		408
2017			241		152		393
2018			217		121		338
2019			150		4		154
Thereafter			241		12		253
Total minimum payments		$	1,343	$	635	$	1,978
(1)	Excludes amounts related to LNG purchase agreements as discussed below.

FUTURE MINIMUM PAYMENTS – SOCALGAS
(Dollars in millions)
	Transportation		Natural gas		Total
2015	$	127	$	22	$	149
2016		128		1		129
2017		113		1		114
2018		92		1		93
2019		48		1		49
Thereafter		123		―		123
Total minimum payments	$	631	$	26	$	657

Total payments under natural gas contracts and natural gas storage and transportation contracts as well as payments to meet additional portfolio needs at Sempra Energy Consolidated and SoCalGas were:

	Years ended December 31,
(Dollars in millions)	2014		2013		2012
Sempra Energy Consolidated	$	1,984	$	1,680	$	1,345
SoCalGas		1,735		1,464		1,222

LNG Purchase Agreement

Sempra Natural Gas has a purchase agreement for the supply of LNG to the Energía Costa Azul terminal. The agreement is priced using a predetermined formula based on natural gas market indices. Although this contract specifies a number of cargoes to be delivered, under its terms, the customer may divert certain cargoes, which would reduce amounts paid under the contracts by Sempra Natural Gas. At December 31, 2014, the following LNG commitment amounts are based on if all cargoes under the contract were to be delivered:

$381 million in 2015
$552 million in 2016
$616 million in 2017
$674 million in 2018
$701 million in 2019

$7.6 billion in 2020 – 2029

The amounts above are based on forward prices of the index applicable to each contract from 2015 to 2024 and an estimated one percent escalation per year beyond 2024. The LNG commitment amounts above are based on Sempra Natural Gas’ commitment to accept the maximum possible delivery of cargoes under the agreement. Actual LNG purchases in 2014, 2013 and 2012 have been significantly lower than the maximum amount possible due to the customer electing to divert most cargoes as allowed by the agreement.

Purchased-Power Contracts

For 2015, SDG&E expects to meet its customer power requirements from the following resource types:

Long-term contracts: 35 percent (of which 30.2 percent is provided by renewable energy contracts expiring on various dates through 2041)
SDG&E-owned generation (including Palomar Energy Center, Miramar Energy Center, Desert Star Energy Center and Cuyamaca Peak Energy Plant) and tolling contracts (including OMEC): 57 percent

Spot market purchases: 8 percent

Chilquinta Energía and Luz del Sur also have purchased-power contracts, expiring on various dates extending through 2027, which cover most of the consumption needs of the companies’ customers. These commitments are included under Sempra Energy Consolidated in the table below.

At December 31, 2014, the estimated future minimum payments under long-term purchased-power contracts were:

FUTURE MINIMUM PAYMENTS – PURCHASED-POWER CONTRACTS
(Dollars in millions)
		Sempra
		Energy
		Consolidated		SDG&E
2015		$	674	$	494
2016			664		484
2017			687		503
2018			734		505
2019			734		500
Thereafter			7,363		6,318
Total minimum payments(1)		$	10,856	$	8,804
(1)	Excludes purchase agreements accounted for as capital leases and amounts related to Otay Mesa VIE, as it is consolidated by Sempra Energy and SDG&E.

Payments on these contracts represent capacity charges and minimum energy purchases. SDG&E, Chilquinta Energía, and Luz del Sur are required to pay additional amounts for actual purchases of energy that exceed the minimum energy commitments. Excluding DWR-allocated contracts at SDG&E, total payments under purchased-power contracts were:

		Years ended December 31,
(Dollars in millions)		2014		2013		2012
Sempra Energy Consolidated		$	1,574	$	1,377	$	1,205
SDG&E(1)			710		570		381
(1)	Excludes DWR-allocated contracts. Under an operating agreement with the DWR that expired at the end of 2013, SDG&E acted as a limited agent on behalf of the DWR in the administration of energy contracts, including natural gas procurement functions under the DWR contracts allocated to SDG&E's customers. The commodity costs associated with these contracts are not included in SDG&E's or Sempra Energy's Consolidated Statements of Operations.

Operating Leases

Sempra Energy Consolidated, SDG&E and SoCalGas have operating leases on real and personal property expiring at various dates from 2015 through 2054. Certain leases on office facilities contain escalation clauses requiring annual increases in rent ranging from two percent to six percent at Sempra Energy Consolidated, four percent to six percent at SDG&E, and two percent to five percent at SoCalGas. The rentals payable under these leases may increase by a fixed amount each year or by a percentage of a base year, and most leases contain extension options that we could exercise.

The California Utilities have an operating lease agreement for future acquisitions of fleet vehicles with an aggregate maximum lease limit of $150 million, $134 million of which has been utilized as of December 31, 2014.

Rent expense for all operating leases totaled

	Years ended December 31,
(Dollars in millions)	2014		2013		2012
Sempra Energy Consolidated	$	78	$	81	$	74
SDG&E		26		23		20
SoCalGas		38		31		26

At December 31, 2014, the minimum rental commitments payable in future years under all noncancelable operating leases were as follows:

FUTURE MINIMUM PAYMENTS – OPERATING LEASES
(Dollars in millions)
	Sempra
	Energy
	Consolidated		SDG&E		SoCalGas
2015	$	73	$	24	$	39
2016		65		24		35
2017		64		22		35
2018		57		18		34
2019		50		16		30
Thereafter		271		75		156
Total future minimum rental commitments	$	580	$	179	$	329

Capital Leases

Power Purchase Agreements

SDG&E has three power purchase agreements with peaker plant facilities, two of which went into commercial operation in June 2010 and one of which went into commercial operation in 2014. All three are accounted for as capital leases. The entities that own the peaker plant facilities are VIEs of which SDG&E is not the primary beneficiary. As of December 31, 2014, capital lease obligations for these leases, each with a 25-year term, were valued at $233 million. SDG&E does not have any additional implicit or explicit financial responsibility related to these VIEs.

At December 31, 2014, the future minimum lease payments and present value of the net minimum lease payments under these capital leases for both Sempra Energy Consolidated and SDG&E were as follows:

FUTURE MINIMUM PAYMENTS – POWER PURCHASE AGREEMENTS
(Dollars in millions)
2015		$	31
2016			31
2017			31
2018			31
2019			31
Thereafter			520
Total minimum lease payments(1)			675
Less: estimated executory costs			(137)
Less: interest(2)			(305)
Present value of net minimum lease payments(3)		$	233
(1)	This amount will be recorded over the lives of the leases as Cost of Electric Fuel and Purchased Power on Sempra Energy’s and SDG&E’s Consolidated Statements of Operations. This expense will receive ratemaking treatment consistent with purchased-power costs.
(2)	Amount necessary to reduce net minimum lease payments to present value at the inception of the leases.
(3)	Includes $4 million in Current Portion of Long-Term Debt and $229 million in Long-Term Debt on Sempra Energy’s and SDG&E’s Consolidated Balance Sheets at December 31, 2014.

The annual amortization charge for the power purchase agreements was $3 million in 2014 and $2 million in each of 2013 and 2012.

Utility Fleet Vehicles

The California Utilities entered into agreements in 2009 and 2010 to refinance existing fleet vehicles. These are capital leases and, at December 31, 2014, the related capital lease obligations were $2 million at Sempra Energy Consolidated, including $1 million at SDG&E and $1 million at SoCalGas. At December 31, 2013, the related capital lease obligations were $5 million at Sempra Energy Consolidated, including $3 million at SDG&E and $2 million at SoCalGas.

At December 31, 2014, the future minimum lease payments and present value of the net minimum lease payments under these capital leases are as follows:

FUTURE MINIMUM PAYMENTS – CAPITAL LEASES
(Dollars in millions)
		Sempra
		Energy
		Consolidated		SDG&E		SoCalGas
Total minimum lease payments, all in 2015		$	2	$	1	$	1
Present value of net minimum lease payments(1)		$	2	$	1	$	1
(1)	Excludes negligible amounts of interest.

The 2014 annual depreciation charge for the utility fleet vehicles was $4 million at Sempra Energy Consolidated, including $2 million at SDG&E and $2 million at SoCalGas. The 2013 annual depreciation charge for the utility fleet vehicles was $7 million at Sempra Energy Consolidated, including $4 million at SDG&E and $3 million at SoCalGas. The 2012 annual depreciation charge for the utility fleet vehicles was $13 million at Sempra Energy Consolidated, including $7 million at SDG&E and $6 million at SoCalGas.

Headquarters Build-to-Suit Lease

In August 2013, Sempra Energy entered into a 25-year, build-to-suit lease for its future San Diego, California, headquarters. We expect to occupy the building in the second half of 2015, concurrent with the termination of the current headquarters lease. At December 31, 2014, future payments on the lease are as follows:

FUTURE MINIMUM PAYMENTS – BUILD-TO-SUIT LEASE
(Dollars in millions)
2015	$	4
2016		10
2017		10
2018		10
2019		10
Thereafter		267
Total future payments	$	311

Construction and Development Projects

Sempra Energy Consolidated has various capital projects in progress in the United States, Mexico and South America. Sempra Energy’s total commitments under these projects are $877 million, requiring future payments of $721 million in 2015, $93 million in 2016, $46 million in 2017, $10 million in 2018, $1 million in 2019 and $6 million thereafter. The following is a summary by segment of contractual commitments and contingencies related to the construction projects.

SDG&E

At December 31, 2014, SDG&E has commitments to make future payments of $340 million for construction projects that include

$130 million for the engineering, material procurement and construction costs primarily associated with the San Luis Rey Synchronous Condensor and Bay Boulevard Substation relocation projects;
$10 million related to nuclear fuel fabrication and other construction projects at SONGS; and

$200 million for infrastructure improvements for natural gas and electric transmission and distribution operations.

SDG&E expects future payments under these contractual commitments to be $229 million in 2015, $57 million in 2016, $37 million in 2017, $10 million in 2018, $1 million in 2019 and $6 million thereafter.

SoCalGas

At December 31, 2014, SoCalGas has commitments to make future payments of $260 million for construction and infrastructure improvements for natural gas storage, transmission and distribution operations and pipeline integrity. The future payments under these contractual commitments are expected to be $218 million in 2015, $33 million in 2016, and $9 million in 2017.

Sempra South American Utilities

At December 31, 2014, Sempra South American Utilities has commitments to make future payments of $15 million for construction projects that include $3 million for the construction of the Santa Teresa hydroelectric power plant at Luz del Sur. The future payments under these contractual commitments are all expected to be made in 2015.

Sempra Mexico

At December 31, 2014, Sempra Mexico has commitments to make future payments of $244 million for contracts related to the construction of an approximately 500-mile natural gas transport pipeline network. The future payments under these contractual commitments are expected to be $241 million in 2015 and $3 million in 2016.

Sempra Natural Gas

At December 31, 2014, Sempra Natural Gas has commitments to make future payments of $18 million primarily for natural gas transportation projects. The future payments under these contractual commitments are all expected to be made in 2015.

GUARANTEES

At December 31, 2014, SDG&E and SoCalGas did not have any outstanding guarantees.

At December 31, 2014, Sempra Renewables has provided guarantees to its solar and wind farm joint ventures aggregating a maximum of $170 million with an associated aggregated carrying value of $2 million, primarily related to purchased-power agreements and engineering, procurement and construction contracts. In addition, Sempra Renewables has provided guarantees aggregating a maximum of $332 million with an associated aggregated carrying value of $12 million at December 31, 2014 to certain wind farm joint ventures for debt service and operation of the wind farms, which we discuss in Note 5.

Sempra Energy entered into completion guarantees related to the financing of the Cameron LNG project, as we discuss in Note 4.

OTHER COMMITMENTS

SDG&E

In connection with the completion of the Sunrise Powerlink project in 2012, the CPUC required that SDG&E establish a fire mitigation fund to minimize the risk of fire as well as reduce the potential wildfire impact on residences and structures near the Sunrise Powerlink. The future payments for these contractual commitments are expected to be approximately $3 million per year, subject to escalation of 2 percent per year, for 58 years. At December 31, 2014, the present value of these future payments of $116 million has been recorded as a regulatory asset as the amounts represent a cost that will be recovered from customers in the future, and the related liability was $116 million.

In July 2012, SDG&E received $85 million from Citizens Sunrise Transmission, LLC (Citizens), a subsidiary of Citizens Energy Corporation. For this payment, under the terms of the agreement with Citizens, SDG&E will provide Citizens with access to a segment of the Sunrise Powerlink transmission line known as the Border-East transmission line equal to 50 percent of the transfer capacity of this portion of the line for a period of 30 years. After the 30-year contract term, the transfer capability will revert to SDG&E. SDG&E will amortize deferred revenues from the use of the transfer capability over the 30-year term, and depreciation for 50 percent of the Border-East transmission line segment will be accelerated from an estimated 58-year life to 30 years.

Sempra Natural Gas

In February 2013, Sempra Natural Gas entered into a long-term operations and maintenance agreement for its remaining block of the Mesquite Power natural gas-fired power plant, which expires in 2033. The total cost associated with this agreement is estimated to be approximately $33 million. The minimum future payments for this contractual commitment are expected to be $2 million each year in 2015 through 2019 and $23 million thereafter. We provide additional information about Mesquite Power in Note 3.

Additional consideration for a 2006 comprehensive legal settlement with the State of California to resolve the Continental Forge litigation included an agreement that, for a period of 18 years beginning in 2011, Sempra Natural Gas would sell to the California Utilities, subject to annual CPUC approval, up to 500 million cubic feet (MMcf) per day of regasified LNG from Sempra Mexico’s Energía Costa Azul facility that is not delivered or sold in Mexico at the California border index minus $0.02 per MMBtu. There are no specified minimums required, and to date, we have not been required to deliver any natural gas pursuant to this agreement.

ENVIRONMENTAL ISSUES

Our operations are subject to federal, state and local environmental laws. We also are subject to regulations related to hazardous wastes, air and water quality, land use, solid waste disposal and the protection of wildlife. These laws and regulations require that we investigate and correct the effects of the release or disposal of materials at sites associated with our past and our present operations. These sites include those at which we have been identified as a Potentially Responsible Party (PRP) under the federal Superfund laws and similar state laws.

In addition, we are required to obtain numerous governmental permits, licenses and other approvals to construct facilities and operate our businesses. The related costs of environmental monitoring, pollution control equipment, cleanup costs, and emissions fees are significant. Increasing national and international concerns regarding global warming and mercury, carbon dioxide, nitrogen oxide and sulfur dioxide emissions could result in requirements for additional pollution control equipment or significant emissions fees or taxes that could adversely affect Sempra Natural Gas and Sempra Mexico. The California Utilities’ costs to operate their facilities in compliance with these laws and regulations generally have been recovered in customer rates.

We generally capitalize the significant costs we incur to mitigate or prevent future environmental contamination or extend the life, increase the capacity, or improve the safety or efficiency of property used in current operations. The following table shows our capital expenditures (including construction work in progress) in order to comply with environmental laws and regulations:

CAPITAL EXPENDITURES FOR ENVIRONMENTAL ISSUES
(Dollars in millions)
		Years ended December 31,
		2014		2013		2012
Sempra Energy Consolidated(1)		$	45	$	31	$	92
SDG&E			23		13		77
SoCalGas			21		15		12
(1)	In cases of non-wholly owned affiliates, includes only our share.

Fluctuations at SDG&E and Sempra Energy Consolidated from 2012 to 2013 were primarily due to mitigation activities on the Sunrise Powerlink project, which was placed into service in June 2012. Fluctuations from 2013 to 2014 were primarily due to increased project activities during 2014, including PSEP-related projects at both SDG&E and SoCalGas and the Aliso Canyon turbine replacement project at SoCalGas. We have not identified any significant environmental issues outside the United States.

At the California Utilities, costs that relate to current operations or an existing condition caused by past operations are generally recorded as a regulatory asset due to the probability that these costs will be recovered in rates.

The environmental issues currently facing us or resolved during the last three years include (1) investigation and remediation of the California Utilities’ manufactured-gas sites, (2) cleanup of third-party waste-disposal sites used by the California Utilities at sites for which we have been identified as a PRP and (3) mitigation of damage to the marine environment caused by the cooling-water discharge from SONGS. The requirements for enhanced fish protection and restoration of 150 acres of coastal wetlands for the SONGS mitigation are in process and include a 150-acre artificial reef that was dedicated in 2008 and continues in process to meet California Coastal Commission (CCC) acceptance requirements. It is anticipated that the CCC will require expansion of the reef in 2015, as the existing reef may be too small to consistently meet the performance standard. The table below shows the status at December 31, 2014, of the California Utilities’ manufactured-gas sites and the third-party waste-disposal sites for which we have been identified as a PRP:

STATUS OF ENVIRONMENTAL SITES

		# Sites		# Sites
		completed(1)		in process
SDG&E
Manufactured-gas sites			3		―
Third-party waste-disposal sites			2		3
SoCalGas
Manufactured-gas sites			39		3
Third-party waste-disposal sites			5		2
(1)	There may be on-going compliance obligations for completed sites, such as regular inspections, adherence to land use covenants and water quality monitoring.

We record environmental liabilities at undiscounted amounts when our liability is probable and the costs can be reasonably estimated. In many cases, however, investigations are not yet at a stage where we can determine whether we are liable or, if the liability is probable, to reasonably estimate the amount or range of amounts of the costs. Estimates of our liability are further subject to uncertainties such as the nature and extent of site contamination, evolving cleanup standards and imprecise engineering evaluations. We review our accruals periodically and, as investigations and cleanup proceed, we make adjustments as necessary. The following table shows our accrued liabilities for environmental matters at December 31, 2014:

ACCRUED LIABILITIES FOR ENVIRONMENTAL MATTERS
(Dollars in millions)
				Waste		Former fossil-		Other
		Manufactured-		disposal		fueled power		hazardous
		gas sites		sites (PRP)(1)		plants		waste sites		Total
SDG&E(2)(3)		$	―	$	0.3	$	6.1	$	0.7	$	7.1
SoCalGas(3)			23.8		0.1		―		0.1		24.0
Other			2.0		1.1		―		10.2		13.3
Total Sempra Energy		$	25.8	$	1.5	$	6.1	$	11.0	$	44.4
(1)	Sites for which we have been identified as a Potentially Responsible Party.
(2)	Does not include SDG&E’s liability for SONGS marine mitigation.
(3)	This includes $7 million at SDG&E and $24 million at SoCalGas related to hazardous waste sites subject to the Hazardous Waste Collaborative mechanism approved by the CPUC in 1994. This mechanism permits California’s IOUs, including the California Utilities, to recover in rates 90 percent of hazardous waste cleanup costs and related third-party litigation costs, and 70 percent of the related insurance-litigation expenses for certain sites. In addition, the California Utilities have the opportunity to retain a percentage of any recoveries from insurance carriers and other third parties to offset the cleanup and associated litigation costs not recovered in rates.

We expect to pay the majority of these accruals over the next three years. In connection with the issuance of operating permits, SDG&E and the other owners of SONGS previously reached an agreement with the CCC to mitigate the damage to the marine environment caused by the cooling-water discharge from SONGS during its operation. SONGS’ early retirement, described in Note 13, does not reduce SDG&E’s mitigation obligation. At December 31, 2014, SDG&E’s share of the estimated mitigation costs remaining to be spent through 2050 is $20 million, which is recoverable in rates.

We discuss renewable energy requirements in Note 14 and greenhouse gas regulation in Note 1.

NUCLEAR INSURANCE

SDG&E and the other owners of 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 $13.2 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 $50.93 million. This amount is subject to an annual maximum of $7.6 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, subject to a $2.5 million deductible for “each and every loss.” This insurance coverage is provided through Nuclear Electric Insurance Limited (NEIL), a mutual insurance company. The NEIL policies have specific exclusions and limitations that can result in reduced or eliminated coverage. Insured members as a group are subject to retrospective premium assessments to cover losses sustained by NEIL under all issued policies. SDG&E could be assessed up to $9.7 million of retrospective premiums based on overall member claims. Edison, on behalf of itself and the minority owners of SONGS (including SDG&E), has placed NEIL on notice of claims under both the property damage and outage insurance policies as a result of SONGS’ Units 2 and 3 outages in early 2012 and the resultant plant closure in June 2013.

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.

U.S. DEPARTMENT OF ENERGY (DOE) NUCLEAR FUEL DISPOSAL

The Nuclear Waste Policy Act of 1982 made the DOE responsible for the disposal of spent nuclear fuel. However, it is uncertain when the DOE will begin accepting spent nuclear fuel from SONGS. This delay will lead to increased costs for spent fuel storage. SDG&E will seek recovery for these costs from the appropriate sources, including, but not limited to, SDG&E’s Nuclear Decommissioning Trust. SDG&E will also continue to support Edison in its pursuit of legal claims on behalf of the SONGS co-owners against the DOE for its failure to timely accept the spent nuclear fuel.

In June 2010, the United States Court of Federal Claims issued a decision granting Edison and the SONGS co-owners damages of approximately $142 million to recover costs incurred through December 31, 2005 for the DOE’s failure to meet its obligation to begin accepting spent nuclear fuel from SONGS. Edison received payment from the federal government in the amount of the damage award in November 2011. In January 2012, Edison refunded SDG&E $28 million for its respective share of the damage award paid. SDG&E recorded a $10 million reduction of nuclear power expenses, a $15 million reduction of its nuclear decommissioning balancing account and a $3 million reduction in nuclear plant. Edison, as operating agent, filed a lawsuit against the DOE in the Court of Federal Claims in December 2011 seeking damages for the period from January 1, 2006 to December 31, 2010 for the DOE’s failure to meet its obligation to begin accepting spent nuclear fuel. In September 2014, Edison updated their claim to include another $84 million for costs incurred from January 2011 to December 2013.

CONCENTRATION OF CREDIT RISK

We maintain credit policies and systems to manage our overall credit risk. These policies include an evaluation of potential counterparties’ financial condition and an assignment of credit limits. These credit limits are established based on risk and return considerations under terms customarily available in the industry. We grant credit to utility customers and counterparties, substantially all of whom are located in our service territory, which covers most of Southern California and a portion of central California for SoCalGas, and all of San Diego County and an adjacent portion of Orange County for SDG&E. We also grant credit to utility customers and counterparties of our other companies providing natural gas or electric services in Mexico, Chile, Peru, southwest Alabama, and Hattiesburg, Mississippi.

When they become operational, projects owned or partially owned by Sempra Natural Gas, Sempra Renewables, Sempra South American Utilities and Sempra Mexico place significant reliance on the ability of their suppliers and customers to perform on long-term agreements and on our ability to enforce contract terms in the event of nonperformance. We consider many factors, including the negotiation of supplier and customer agreements, when we evaluate and approve development projects.

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2014

Notes to Consolidated Financial Statements [Abstract]

Segment Information

NOTE 16. SEGMENT INFORMATION

We have six 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 South American Utilities operates electric transmission and distribution utilities in Chile and Peru.
Sempra Mexico develops, owns and operates, or holds interests in, natural gas transmission pipelines and propane and ethane systems, a natural gas distribution utility, electric generation facilities (including wind), a terminal for the import of LNG, and marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico.
Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy projects in Arizona, California, Colorado, Hawaii, Indiana, Kansas, Nebraska, Nevada and Pennsylvania to serve wholesale electricity markets in the United States.
Sempra Natural Gas develops, owns and operates, or holds interests in, natural gas pipelines and storage facilities, natural gas distribution utilities and a terminal for the import and export of LNG and sale of natural gas, all within the United States. Sempra Natural Gas also owns and operates the Mesquite Power plant, a natural gas-fired electric generation asset. In October 2014, Sempra Natural Gas entered into a definitive agreement to sell the remaining 625-MW block of Mesquite Power. The sale is expected to close in the first half of 2015, subject to obtaining third-party consents as we discuss in Note 3.

Sempra South American Utilities and Sempra Mexico comprise our Sempra International operating unit. Sempra Renewables and Sempra Natural Gas comprise our Sempra U.S. Gas & Power operating unit.

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

Common services shared by the business segments are assigned directly or allocated based on various cost factors, depending on the nature of the service provided. Interest income and expense is recorded on intercompany loans. The loan balances and related interest are eliminated in consolidation.

The following tables show selected information by segment from our Consolidated Statements of Operations and Consolidated Balance Sheets. We provide information about our equity method investments by segment in Note 4. Amounts labeled as “All other” in the following tables consist primarily of parent organizations.

SEGMENT INFORMATION
(Dollars in millions)
	Years ended December 31,
	2014				2013				2012
REVENUES
SDG&E	$	4,329	39	%	$	4,066	39	%	$	3,694	38	%
SoCalGas		3,855	35			3,736	35			3,282	34
Sempra South American Utilities		1,534	14			1,495	14			1,441	15
Sempra Mexico		818	8			675	6			605	6
Sempra Renewables		35	―			82	1			68	1
Sempra Natural Gas		979	9			908	9			931	10
Adjustments and eliminations		(3)	―			(2)	―			(2)	―
Intersegment revenues(1)		(512)	(5)			(403)	(4)			(372)	(4)
Total	$	11,035	100	%	$	10,557	100	%	$	9,647	100	%
INTEREST EXPENSE
SDG&E	$	202			$	197			$	173
SoCalGas		69				69				68
Sempra South American Utilities		33				27				32
Sempra Mexico		17				17				8
Sempra Renewables		5				23				22
Sempra Natural Gas		111				116				98
All other		241				241				251
Intercompany eliminations		(124)				(131)				(159)
Total	$	554			$	559			$	493
INTEREST INCOME
SDG&E	$	―			$	1			$	―
Sempra South American Utilities		14				14				15
Sempra Mexico		4				2				2
Sempra Renewables		1				20				6
Sempra Natural Gas		115				88				55
All other		1				―				4
Intercompany eliminations		(113)				(105)				(58)
Total	$	22			$	20			$	24
DEPRECIATION AND AMORTIZATION
SDG&E	$	530	46	%	$	494	44	%	$	490	45	%
SoCalGas		431	37			383	35			362	33
Sempra South American Utilities		55	5			59	5			56	5
Sempra Mexico		64	6			63	6			62	6
Sempra Renewables		5	―			21	2			16	1
Sempra Natural Gas		61	5			81	7			93	9
All other		10	1			12	1			11	1
Total	$	1,156	100	%	$	1,113	100	%	$	1,090	100	%
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	270			$	191			$	190
SoCalGas		139				116				79
Sempra South American Utilities		58				67				78
Sempra Mexico		5				60				73
Sempra Renewables		(44)				(19)				(63)
Sempra Natural Gas		(20)				40				(157)
All other		(108)				(89)				(141)
Total	$	300			$	366			$	59

SEGMENT INFORMATION (Continued)
(Dollars in millions)
		At December 31 or for the years ended December 31,
		2014				2013				2012
EARNINGS (LOSSES)
SDG&E(2)		$	507	44	%	$	404	41	%	$	484	56	%
SoCalGas(3)			332	29			364	37			289	34
Sempra South American Utilities			172	15			153	15			164	19
Sempra Mexico			192	16			122	12			157	18
Sempra Renewables			81	7			62	6			61	7
Sempra Natural Gas			50	4			64	6			(241)	(28)
All other			(173)	(15)			(168)	(17)			(55)	(6)
Total		$	1,161	100	%	$	1,001	100	%	$	859	100	%
ASSETS
SDG&E		$	16,296	41	%	$	15,377	41	%	$	14,744	40	%
SoCalGas			10,461	26			9,147	25			9,071	25
Sempra South American Utilities			3,379	9			3,531	10			3,310	9
Sempra Mexico			3,488	9			3,246	9			2,591	7
Sempra Renewables			1,338	3			1,219	3			2,439	7
Sempra Natural Gas			6,436	16			7,200	19			5,145	14
All other			895	2			838	2			818	2
Intersegment receivables			(2,561)	(6)			(3,314)	(9)			(1,619)	(4)
Total		$	39,732	100	%	$	37,244	100	%	$	36,499	100	%
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E		$	1,100	35	%	$	978	38	%	$	1,237	42	%
SoCalGas			1,104	35			762	30			639	22
Sempra South American Utilities			174	6			200	8			183	6
Sempra Mexico			325	10			371	14			45	2
Sempra Renewables			190	6			176	7			717	24
Sempra Natural Gas			212	7			83	3			131	4
All other			18	1			2	―			4	―
Total		$	3,123	100	%	$	2,572	100	%	$	2,956	100	%
GEOGRAPHIC INFORMATION
Long-lived assets(4):
United States		$	24,183	84	%	$	22,654	84	%	$	22,698	85	%
Mexico			2,821	10			2,597	9			2,219	8
South America			1,746	6			1,784	7			1,790	7
Total		$	28,750	100	%	$	27,035	100	%	$	26,707	100	%

Revenues(5):
United States		$	8,774	79	%	$	8,478	80	%	$	7,711	80	%
South America			1,534	14			1,495	14			1,441	15
Mexico			727	7			584	6			495	5
Total		$	11,035	100	%	$	10,557	100	%	$	9,647	100	%
(1)	Revenues for reportable segments include intersegment revenues of $10 million, $69 million, $91 million and $342 million for 2014, $10 million, $70 million, $91 million and $232 million for 2013, and $8 million, $46 million, $108 million and $210 million for 2012 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.
(2)	For 2013, amount is after preferred dividends and call premium on preferred stock. For 2012, amount is after preferred dividends.
(3)	After preferred dividends.
(4)	Includes net property, plant and equipment and investments.
(5)	Amounts are based on where the revenue originated, after intercompany eliminations.

Notes to Consolidated Financial Statements [Abstract]

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

QUARTERLY FINANCIAL DATA

12 Months Ended

Dec. 31, 2014

Quarterly Financial Data

NOTE 17. QUARTERLY FINANCIAL DATA (UNAUDITED)

We provide quarterly financial information for Sempra Energy Consolidated, SDG&E and SoCalGas below:

SEMPRA ENERGY
(In millions, except per share amounts)
		Quarters ended
		March 31		June 30		September 30		December 31
2014
Revenues		$	2,795	$	2,678	$	2,815	$	2,747
Expenses and other income		$	2,408	$	2,302	$	2,368	$	2,433

Net income		$	266	$	292	$	383	$	321
Earnings attributable to Sempra Energy		$	247	$	269	$	348	$	297

Basic per-share amounts(1):
Net income		$	1.09	$	1.19	$	1.56	$	1.31
Earnings attributable to Sempra Energy		$	1.01	$	1.10	$	1.41	$	1.21
Weighted average common shares outstanding			245.3		245.7		246.1		246.4

Diluted per-share amounts(1):
Net income		$	1.07	$	1.17	$	1.53	$	1.28
Earnings attributable to Sempra Energy		$	0.99	$	1.08	$	1.39	$	1.18
Weighted average common shares outstanding			249.7		250.1		250.8		251.3
2013
Revenues		$	2,650	$	2,651	$	2,551	$	2,705
Expenses and other income		$	2,298	$	2,353	$	2,119	$	2,357

Net income		$	178	$	267	$	323	$	320
Earnings attributable to Sempra Energy		$	178	$	245	$	296	$	282

Basic per-share amounts(1):
Net income		$	0.73	$	1.10	$	1.32	$	1.31
Earnings attributable to Sempra Energy		$	0.73	$	1.00	$	1.21	$	1.15
Weighted average common shares outstanding			243.3		243.6		244.1		244.4

Diluted per-share amounts(1):
Net income		$	0.72	$	1.07	$	1.29	$	1.28
Earnings attributable to Sempra Energy		$	0.72	$	0.98	$	1.19	$	1.13
Weighted average common shares outstanding			247.5		248.5		249.3		249.9
(1)	Earnings per share are computed independently for each of the quarters and therefore may not sum to the total for the year.

Revenues and Expenses and Other Income increased in each of the first three quarters in 2014 compared to 2013 partly due to higher natural gas prices, offset by lower volumes at SoCalGas. In the fourth quarter of 2014 compared to 2013, the impact on Revenues and Expenses and Other Income from lower volumes more than offset the impact from higher natural gas prices. In the first and fourth quarters of 2014 compared to 2013, the lower volumes were primarily due to a decrease in the demand for natural gas primarily from a warmer winter in 2014 compared to the same period in 2013.

In each of the quarters of 2014 compared to the same periods in 2013, Revenues and Expenses and Other Income increased from higher cost of electric fuel and purchased power at SDG&E primarily due to the incremental purchase of renewable energy at higher prices.

In the third quarter of 2014, Net Income and Earnings Attributable to Sempra Energy included $25 million tax benefit due to the release of a Louisiana valuation allowance against a deferred tax asset associated with Cameron LNG developments.

Expenses and Other Income, Net Income and Earnings Attributable to Sempra Energy for the first, second and third quarters of 2014 included $9 million, $11 million and $14 million, respectively, of AFUDC related to equity associated with the construction of the Sonora natural gas pipeline in Mexico.

In the first quarter of 2013, Expenses and Other Income were favorably impacted by $74 million and Net Income and Earnings Attributable to Sempra Energy were favorably impacted by $44 million due to the sale of one 625-MW block of the 1,250-MW Mesquite Power natural gas-fired power plant, as we discuss in Note 3.

Net Income and Earnings Attributable to Sempra Energy for the first quarter of 2013 were negatively impacted by higher operating expenses at the California Utilities due to the delay in the CPUC decision on the 2012 GRC until the second quarter of 2013.

Revenues and Expenses and Other Income for the third quarter of 2013 were lower compared to the first, second and fourth quarters of 2013 due to lower cost of natural gas.

Net Income and Earnings Attributable to Sempra Energy for the first, second, third and fourth quarters of 2014 included $12 million, $12 million, $8 million and $6 million, respectively, of income tax expense for repatriation of current year foreign earnings. In the first quarter of 2013, Net Income and Earnings Attributable to Sempra Energy included $63 million income tax expense resulting from a corporate reorganization in connection with the IEnova stock offerings.

In the second quarter of 2013, Revenues included $131 million and Net Income and Earnings Attributable to Sempra Energy included $106 million favorable impacts from the retroactive application of the 2012 GRC for the period from January 2012 to March 2013 at the California Utilities.

In the second quarter of 2013, Expenses and Other Income were negatively impacted by $200 million and Net Income and Earnings Attributable to Sempra Energy were negatively impacted by $119 million due to the early retirement of SONGS, as we discuss in Note 13.

We discuss quarterly fluctuations related to SDG&E and SoCalGas below.

SDG&E
(Dollars in millions)
	Quarters ended
	March 31		June 30		September 30		December 31
2014
Operating revenues	$	987	$	1,063	$	1,233	$	1,046
Operating expenses		766		821		957		826
Operating income	$	221	$	242	$	276	$	220

Net income	$	101	$	129	$	169	$	128
Earnings attributable to noncontrolling interest		(2)		(6)		(12)		―
Earnings attributable to common shares	$	99	$	123	$	157	$	128
2013
Operating revenues	$	939	$	1,064	$	1,063	$	1,000
Operating expenses		771		939		800		774
Operating income	$	168	$	125	$	263	$	226

Net income	$	81	$	73	$	139	$	142
Losses (earnings) attributable to noncontrolling interest		11		(7)		(5)		(23)
Earnings		92		66		134		119
Call premium on preferred stock		―		―		(3)		―
Dividends on preferred stock		(1)		(1)		(2)		―
Earnings attributable to common shares	$	91	$	65	$	129	$	119

In each of the quarters of 2014 compared to the same periods in 2013, SDG&E’s Operating Revenues and Operating Expenses included increases from higher cost of electric fuel and purchased power primarily due to the incremental purchase of renewable energy at higher prices.

Net Income and Earnings for the first quarter of 2013 were negatively impacted by higher operating expenses due to the delay in the CPUC decision on the 2012 GRC until the second quarter of 2013.

SDG&E’s Operating Revenues in the second quarter of 2013 included $90 million and Net Income and Earnings included $69 million favorable impacts from the retroactive application of the 2012 GRC for the period from January 2012 to March 2013.

In the second quarter of 2013, Operating Expenses were negatively impacted by $200 million and Net Income and Earnings were negatively impacted by $119 million due to the early retirement of SONGS, as we discuss in Note 13.

SOCALGAS
(Dollars in millions)
	Quarters ended
	March 31		June 30		September 30		December 31
2014
Operating revenues	$	1,085	$	917	$	855	$	998
Operating expenses		956		795		702		881
Operating income	$	129	$	122	$	153	$	117

Net income	$	78	$	81	$	98	$	76
Dividends on preferred stock		―		(1)		―		―
Earnings attributable to common shares	$	78	$	80	$	98	$	76
2013
Operating revenues	$	983	$	904	$	807	$	1,042
Operating expenses		900		725		652		920
Operating income	$	83	$	179	$	155	$	122

Net income	$	46	$	119	$	102	$	98
Dividends on preferred stock		―		(1)		―		―
Earnings attributable to common shares	$	46	$	118	$	102	$	98

SoCalGas’ Operating Revenues and Operating Expenses increased in each of the first three quarters in 2014 compared to 2013 primarily due to higher natural gas prices, offset by lower volumes. In the fourth quarter of 2014 compared to 2013, the impact on Operating Revenues and Operating Expenses from lower volumes more than offset the impact from higher natural gas prices. In the first and fourth quarters of 2014 compared to 2013, the lower volumes were primarily due to a decrease in the demand for natural gas primarily from a warmer winter in 2014 compared to the same period in 2013.

Net Income and Earnings in the fourth quarter of 2014 compared to 2013 were impacted by lower income tax expenses in 2013 primarily related to resolution of prior years’ income tax items and higher flow-through deductions.

Net Income and Earnings in the first quarter of 2013 were negatively impacted by $12 million from higher operating expenses due to the delay in the CPUC decision on the 2012 GRC until the second quarter of 2013.

In the second quarter of 2013, Operating Revenues included $41 million and Net Income and Earnings included $37 million favorable impacts from the retroactive application of the 2012 GRC for the period from January 2012 to March 2013.

SCHEDULE I, CONDENSED FINANCIAL INFORMATION OF PARENT

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Condensed Financial Information Of Parent (Tables) [Abstract]

Condensed Financial Information of Parent

SCHEDULE I – SEMPRA ENERGY CONDENSED FINANCIAL INFORMATION OF PARENT

SEMPRA ENERGY
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
	Years ended December 31,
	2014		2013		2012

Interest income	$	―	$	42	$	83
Interest expense		(235)		(239)		(247)
Operation and maintenance		(78)		(63)		(68)
Other income, net		50		41		66
Income tax benefits		133		117		145
Loss before equity in earnings of subsidiaries		(130)		(102)		(21)
Equity in earnings of subsidiaries, net of income taxes		1,291		1,103		880
Net income/earnings	$	1,161	$	1,001	$	859

Basic earnings per common share	$	4.72	$	4.10	$	3.56
Weighted-average number of shares outstanding (thousands)		245,891		243,863		241,347

Diluted earnings per common share	$	4.63	$	4.01	$	3.48
Weighted-average number of shares outstanding (thousands)		250,655		249,332		246,693
See Notes to Condensed Financial Information of Parent.

SEMPRA ENERGY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in millions)
	Years ended December 31,
	Pretax		Income tax		Net-of-tax
	amount		benefit (expense)		amount
2014:
Net income	$	1,028	$	133	$	1,161
Other comprehensive loss:
Foreign currency translation adjustments		(193)		―		(193)
Pension and other postretirement benefits		(20)		8		(12)
Financial instruments		(106)		42		(64)
Total other comprehensive loss		(319)		50		(269)
Comprehensive income	$	709	$	183	$	892
2013:
Net income	$	884	$	117	$	1,001
Other comprehensive income:
Foreign currency translation adjustments		111		―		111
Pension and other postretirement benefits		47		(19)		28
Financial instruments		13		(4)		9
Total other comprehensive income		171		(23)		148
Comprehensive income	$	1,055	$	94	$	1,149
2012:
Net income	$	714	$	145	$	859
Other comprehensive income (loss):
Foreign currency translation adjustments		119		―		119
Pension and other postretirement benefits		(4)		2		(2)
Financial instruments		(6)		2		(4)
Total other comprehensive income		109		4		113
Comprehensive income	$	823	$	149	$	972
See Notes to Condensed Financial Information of Parent.

SEMPRA ENERGY
CONDENSED BALANCE SHEETS
(Dollars in millions)
	December 31,		December 31,
	2014		2013
Assets:
Cash and cash equivalents	$	3	$	6
Due from affiliates		101		132
Deferred income taxes		398		170
Other current assets		15		16
Total current assets		517		324

Investments in subsidiaries		14,557		13,866
Due from affiliates		174		802
Deferred income taxes		1,544		1,466
Other assets		631		555
Total assets	$	17,423	$	17,013

Liabilities and shareholders’ equity:
Current portion of long-term debt	$	―	$	800
Due to affiliates		338		273
Income taxes payable		93		64
Other current liabilities		271		276
Total current liabilities		702		1,413

Long-term debt		4,666		4,117
Due to affiliates		230		―
Other long-term liabilities		499		475
Shareholders’ equity		11,326		11,008
Total liabilities and shareholders’ equity	$	17,423	$	17,013
See Notes to Condensed Financial Information of Parent.

SEMPRA ENERGY
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012

Net cash used in operating activities	$	(260)	$	(131)	$	(809)

Dividends received from subsidiaries		300		50		250
Expenditures for property, plant and equipment		(15)		(1)		(1)
Purchase of trust assets		(4)		(5)		(6)
Proceeds from sales by trust		―		10		10
Capital contribution to subsidiaries		―		(6)		―
Decrease (increase) in loans to affiliates, net		627		962		(33)
Cash provided by investing activities		908		1,010		220

Common stock dividends paid		(598)		(606)		(550)
Issuances of common stock		56		62		78
Repurchases of common stock		(38)		(45)		(16)
Issuances of long-term debt		499		498		1,100
Payments on long-term debt		(800)		(650)		(8)
Increase (decrease) in loans from affiliates, net		234		(147)		―
Other		(4)		(3)		(8)
Cash (used in) provided by financing activities		(651)		(891)		596

(Decrease) increase in cash and cash equivalents		(3)		(12)		7
Cash and cash equivalents, January 1		6		18		11
Cash and cash equivalents, December 31	$	3	$	6	$	18
See Notes to Condensed Financial Information of Parent.

SEMPRA ENERGY

NOTES TO CONDENSED FINANCIAL INFORMATION OF PARENT

Note 1. Basis of Presentation

Sempra Energy accounts for the earnings of its subsidiaries under the equity method in this unconsolidated financial information.

Other Income, Net, on the Condensed Statements of Operations includes $27 million, $39 million and $41 million of gains on dedicated assets in support of our executive retirement and deferred compensation plans in 2014, 2013 and 2012, respectively.

Because of its nature as a holding company, Sempra Energy classifies dividends received from subsidiaries as an investing cash flow.

Note 2. Long-Term Debt

The following table shows the detail and maturities of long-term debt outstanding:

LONG-TERM DEBT
(Dollars in millions)
	December 31,		December 31,
	2014		2013

2% Notes March 15, 2014	$	―	$	500
Notes at variable rates (1.01% at December 31, 2013) March 15, 2014		―		300
6.5% Notes June 1, 2016, including $300 at variable rates after
fixed-to-floating rate swaps effective January 2011 (4.44% at December 31, 2014)		750		750
2.3% Notes April 1, 2017		600		600
6.15% Notes June 15, 2018		500		500
9.8% Notes February 15, 2019		500		500
2.875% Notes October 1, 2022		500		500
4.05% Notes December 1, 2023		500		500
3.55% Notes June 15, 2024		500		―
6% Notes October 15, 2039		750		750
Market value adjustments for interest rate swaps, net		―		12
Build-to-suit lease		75		14
		4,675		4,926
Current portion of long-term debt		―		(800)
Unamortized discount on long-term debt		(9)		(9)
Total long-term debt	$	4,666	$	4,117

Maturities of long-term debt are $750 million in 2016, $600 million in 2017, $500 million in 2018, $500 million in 2019 and $2.3 billion thereafter.

Additional information on Sempra Energy’s long-term debt is provided in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report.

Note 3. Commitments and Contingencies

For contingencies and guarantees related to Sempra Energy, refer to Notes 4, 5 and 15 of the Notes to Consolidated Financial Statements in the Annual Report.

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA (Policies)	12 Months Ended
	Dec. 31, 2014
Allowance For Doubtfull Accounts [Abstract]
Trade And Other Accounts Receivable, Policy	COLLECTION ALLOWANCES We record allowances for the collection of trade and other accounts and notes receivable, which include allowances for doubtful customer accounts and for other receivables. We evaluate accounts receivable collectibility using a combination of factors, including past due status based on contractual terms, trends in write-offs, the age of the receivable, counterparty creditworthiness, economic conditions and specific events, such as bankruptcies. Adjustments to the allowance for doubtful accounts are made when necessary based on the results of analysis, the aging of receivables, and historical and industry trends. We write off accounts receivable in the period in which we deem the receivable to be uncollectible. We record recoveries of accounts receivable previously written off when it is known that they will be received.
Asset Retirement Obligations Policy [Abstract]
Asset Retirement Obligation Policy	ASSET RETIREMENT OBLIGATIONS For tangible long-lived assets, we record asset retirement obligations for the present value of liabilities of future costs expected to be incurred when assets are retired from service, if the retirement process is legally required and if a reasonable estimate of fair value can be made. We also record a liability if a legal obligation to perform an asset retirement exists and can be reasonably estimated, but performance is conditional upon a future event. We record the estimated retirement cost over the life of the related asset by depreciating the present value of the obligation (measured at the time of the asset’s acquisition) and accreting the discount until the liability is settled. Rate-regulated entities, including the California Utilities, record regulatory assets or liabilities as a result of the timing difference between the recognition of costs in accordance with U.S. GAAP and costs recovered through the rate-making process.
Cash And Cash Equivalents Policy [Abstract]
Cash and Cash Equivalents, Policy	CASH AND CASH EQUIVALENTS Cash equivalents are highly liquid investments with maturities of three months or less at the date of purchase.
Commitments And Contingencies Policy [Abstract]
Contingencies, Policy	CONTINGENCIES We accrue losses for the estimated impacts of various conditions, situations or circumstances involving uncertain outcomes. For loss contingencies, we accrue the loss if an event has occurred on or before the balance sheet date and: information available through the date we file our financial statements indicates it is probable that a loss has been incurred, given the likelihood of uncertain future events; and the amount of the loss can be reasonably estimated. We do not accrue contingencies that might result in gains. We continuously assess contingencies for litigation claims, environmental remediation and other events.
Consolidation Policy [Abstract]
Principles of Consolidation	Sempra Energy uses the equity method to account for investments in affiliated companies over which we have the ability to exercise significant influence, but not control. 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. Sempra Energy’s other operating units also enter into arrangements which could include variable interests. We evaluate these arrangements and applicable entities based upon the qualitative and quantitative analyses described above. Certain of these entities are service companies that are VIEs. As the primary beneficiary of these service companies, we consolidate them. In all other cases, we have determined that these contracts are not variable interests in a VIE and therefore are not subject to the U.S. GAAP requirements concerning the consolidation of VIEs.
Cost Of Sales Policy [Abstract]
Other Cost of Sales, Policy	OTHER COST OF SALES Other Cost of Sales primarily includes pipeline capacity costs, and pipeline transportation and natural gas marketing costs incurred at Sempra Natural Gas; electric construction services costs incurred by Sempra South American Utilities’ energy-services companies; and energy management service fees at Sempra Mexico
Emission Credits Policy [Abstract]
Emission Credits or Allowances Policy	GREENHOUSE GAS ALLOWANCES The California Utilities, Sempra Mexico and Sempra Natural Gas are required by California Assembly Bill 32 to acquire greenhouse gas allowances for every metric ton of carbon dioxide equivalent emitted into the atmosphere during electric generation and natural gas transportation. We record greenhouse gas allowances at the lower of weighted average cost or market, and include them in Other Current Assets and Sundry on the Consolidated Balance Sheets based on the dates that they are required to be surrendered. We measure the compliance obligation, which is based on emissions, at the carrying value of allowances held plus the fair value of additional allowances necessary to satisfy the obligation. We include the obligation in Other Current Liabilities and Deferred Credits on the Consolidated Balance Sheets based on the dates that the allowances will be surrendered. We remove the assets and liabilities from the balance sheets as the allowances are surrendered. The California Utilities expect that costs and revenues associated with the greenhouse gas program will be recorded through Regulatory Balancing Accounts on the Consolidated Balance Sheets. RENEWABLE ENERGY CERTIFICATES Renewable energy certificates (RECs) represent property rights established by governmental agencies for the environmental, social, and other nonpower qualities of renewable electricity generation. A REC, and its associated attributes and benefits, can be sold separately from the underlying physical electricity associated with a renewable-based generation source in certain markets. Retail sellers of electricity obtain RECs through renewable power purchase agreements, internal generation or separate purchases in the market to comply with renewable portfolio standards established by the governmental agencies. RECs are the mechanism used to verify renewable portfolio standards compliance. The cost of RECs is recorded in Cost of Electric Fuel and Purchased Power, which is recoverable in rates, on the Consolidated Statements of Operations.
Fair Value Measurements Policy [Abstract]
Fair Value Measurements, Policy	FAIR VALUE MEASUREMENTS We apply recurring fair value measurements to certain assets and liabilities, primarily nuclear decommissioning and benefit plan trust assets and other miscellaneous derivatives. “Fair value” is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). A fair value measurement reflects the assumptions market participants would use in pricing an asset or liability based on the best available information. These assumptions include the risk inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Also, we consider an issuer’s credit standing when measuring its liabilities at fair value. We establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Our Level 1 financial instruments primarily consist of listed equities, U.S. government treasury securities and exchange-traded derivatives. Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including: quoted forward prices for commodities time value current market and contractual prices for the underlying instruments volatility factors other relevant economic measures Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Our financial instruments in this category include domestic corporate bonds, municipal bonds and other foreign bonds, primarily in the Nuclear Decommissioning Trusts and in our pension and postretirement benefit plans, and non-exchange-traded derivatives such as interest rate instruments and over-the-counter (OTC) forwards and options. Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant.
Foreign Currency Transactions And Translations Policy [Abstract]
Foreign Currency Translation, Policy	FOREIGN CURRENCY TRANSLATION Our operations in South America and our natural gas distribution utility in Mexico use their local currency as their functional currency. The assets and liabilities of their foreign operations are translated into U.S. dollars at current exchange rates at the end of the reporting period, and revenues and expenses are translated at average exchange rates for the year. The resulting noncash translation adjustments do not enter into the calculation of earnings or retained earnings (unless the operation is being discontinued), but are reflected in Comprehensive Income and in Accumulated Other Comprehensive Income (Loss), a component of shareholders’ equity.
Goodwill And Intangible Assets, Policy [Abstract]
Goodwill and Intangible Assets, Policy	GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill is the excess of the purchase price over the fair value of the identifiable net assets of acquired companies measured at the time of acquisition. Goodwill is not amortized but is tested for impairment annually on October 1 or whenever events or changes in circumstances necessitate an evaluation. Impairment of goodwill occurs when the carrying amount (book value) of goodwill exceeds its implied fair value. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, and the book value of goodwill is greater than its fair value on the test date, we record a goodwill impairment loss. For our annual goodwill impairment testing, under current U.S. GAAP guidance we have the option to first make a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before applying the two-step, quantitative goodwill impairment test. If we elect to perform the qualitative assessment, we evaluate relevant events and circumstances, including but not limited to, macroeconomic conditions, industry and market considerations, cost factors, changes in key personnel and the overall financial performance of the reporting unit. If, after assessing these qualitative factors, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we perform the two-step goodwill impairment test. When we perform the two-step, quantitative goodwill impairment test, we exercise judgment to develop estimates of the fair value of the reporting unit and the corresponding goodwill. Our fair value estimates are developed from the perspective of a knowledgeable market participant. We consider observable transactions in the marketplace for similar investments, if available, as well as an income-based approach such as discounted cash flow analysis. A discounted cash flow analysis may be based directly on anticipated future revenues and expenses and may be performed based on free cash flows generated within the reporting unit. Critical assumptions that affect our estimates of fair value may include consideration of market transactions future cash flows the appropriate risk-adjusted discount rate country risk entity risk Other Intangible Assets Other Intangible Assets primarily represent storage and development rights related to the natural gas storage facilities of Bay Gas Storage Company, Ltd. (Bay Gas) and Mississippi Hub, LLC (Mississippi Hub), which are being amortized over their estimated useful lives as shown in the table below.
Impairment Or Disposal Of Long Lived Assets Policy [Abstract]
Impairment or Disposal of Long-lived Assets, Policy	LONG-LIVED ASSETS We test long-lived assets for recoverability whenever events or changes in circumstances have occurred that may affect the recoverability or the estimated useful lives of long-lived assets. Long-lived assets include intangible assets subject to amortization, but do not include investments in unconsolidated subsidiaries. Events or changes in circumstances that indicate that the carrying amount of a long-lived asset may not be recoverable may include significant decreases in the market price of an asset a significant adverse change in the extent or manner in which we use an asset or in its physical condition a significant adverse change in legal or regulatory factors or in the business climate that could affect the value of an asset a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection of continuing losses associated with the use of a long-lived asset a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life Impairment of long-lived assets occurs when the estimated future undiscounted cash flows are less than the carrying amount of the assets. If that comparison indicates that the assets’ carrying value may not be recoverable, the impairment is measured based on the difference between the carrying amount and the fair value of the assets. This evaluation is performed at the lowest level for which separately identifiable cash flows exist.
Income Tax Policy [Abstract]
Income Taxes, Policy	INCOME TAXES Income tax expense includes current and deferred income taxes from operations during the year. We record deferred income taxes for temporary differences between the book and the tax basis of assets and liabilities. Investment tax credits from prior years are amortized to income by the California Utilities over the estimated service lives of the properties as required by the CPUC. At our other businesses, we reduce the book basis of the related asset by the amount of investment tax credit earned. At Sempra Renewables, production tax credits are recognized in income tax expense as earned. The California Utilities, Mobile Gas and Willmut Gas recognize regulatory assets to offset deferred tax liabilities if it is probable that the amounts will be recovered from customers; and regulatory liabilities to offset deferred tax assets if it is probable that the amounts will be returned to customers. We currently do not record deferred income taxes for basis differences between financial statement and income tax investment amounts in non-U.S. subsidiaries and non-U.S. joint ventures because their cumulative undistributed earnings are indefinitely reinvested. When there are uncertainties related to potential income tax benefits, in order to qualify for recognition, the position we take has to have at least a “more likely than not” chance of being sustained (based on the position’s technical merits) upon challenge by the respective authorities. The term “more likely than not” means a likelihood of more than 50 percent. Otherwise, we may not recognize any of the potential tax benefit associated with the position. We recognize a benefit for a tax position that meets the “more likely than not” criterion at the largest amount of tax benefit that is greater than 50 percent likely of being realized upon its effective resolution. Unrecognized tax benefits involve management’s judgment regarding the likelihood of the benefit being sustained. The final resolution of uncertain tax positions could result in adjustments to recorded amounts and may affect our results of operations, financial position and cash flows. For SDG&E and SoCalGas, the CPUC requires flow-through rate-making treatment for the current income tax benefit or expense arising from certain property-related and other temporary differences between the treatment for financial reporting and income tax, which will reverse over time. Under the regulatory accounting treatment required for these flow-through temporary differences, deferred income tax assets and liabilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which results in impacting the current effective income tax rate. As a result, changes in the relative size of these items compared to pretax income, from period to period, can cause variations in the effective income tax rate. The following items are subject to flow-through treatment: repairs expenditures related to a certain portion of utility plant fixed assets the equity portion of AFUDC a portion of the cost of removal of utility plant assets self-developed software expenditures depreciation on a certain portion of utility plant assets The AFUDC related to equity recorded for regulated construction projects at Sempra Mexico and Sempra Natural Gas has similar flow-through treatment. We use the deferral method for investment tax credits (ITC). For certain solar and wind generating assets placed into service during 2012, we elected to seek cash grants rather than ITC for which the projects also qualify. Accordingly, cash grant accounting was applied. Grant accounting for cash grants is very similar to the deferral method of accounting for ITC, the primary difference being the recording of a cash grant receivable instead of an income tax receivable. Under the deferral method of accounting for ITC and under grant accounting for cash grants, we record a deferred income tax benefit, on day one, which is reflected in income tax expense by recording a deferred income tax asset during the year the renewable energy assets are placed in service. This deferred income tax asset results from the day-one difference in the income tax basis and financial statement basis of the renewable energy assets, referred to as the day-one basis difference. The financial statement basis of the assets is reduced by 100 percent of the ITC or grant expected; U.S. federal income tax basis is reduced by only 50 percent for both ITC and grants; and state income tax basis is reduced by 50 percent for grants and not at all for ITC. Conversion of ITC to cash is generally dependent on reducing income tax payments and thus the existence of a U.S. federal net operating loss (NOL) carryforward can result in delaying this conversion.
Inventory Policy [Abstract]
Inventories, Policy	INVENTORIES The California Utilities value 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. Materials and supplies at the California Utilities are generally valued at the lower of average cost or market. Sempra South American Utilities, Sempra Mexico and Sempra Natural Gas value natural gas inventory and materials and supplies at the lower of average cost or market. Sempra Mexico and Sempra Natural Gas value liquefied natural gas (LNG) inventory by the first-in first-out method.
Legal Costs Policy [Abstract]
Legal Fees, Policy	LEGAL FEES Legal fees that are associated with a past event for which a liability has been recorded are accrued when it is probable that fees also will be incurred. LEGAL PROCEEDINGS We accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount 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 coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued.
Noncontrolling Interest Policy [Abstract]
Noncontrolling Interest Policy [Text Block]	NONCONTROLLING INTERESTS Ownership interests that are held by owners other than Sempra Energy and SDG&E in subsidiaries or entities consolidated by them are accounted for and reported as noncontrolling interests. As a result, noncontrolling interests are reported as a separate component of equity on the Consolidated Balance Sheets. Earnings/losses attributable to the noncontrolling interests are separately identified on the Consolidated Statements of Operations, and net income/loss and comprehensive income/loss attributable to the noncontrolling interests are separately identified on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Changes in Equity.
Property Plant And Equipment Policy [Abstract]
Property, Plant and Equipment, Policy	PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment primarily represents the buildings, equipment and other facilities used by the California Utilities to provide natural gas and electric utility services, and by Sempra International and Sempra U.S. Gas & Power, including construction work in progress at these operating units. Property, plant and equipment also includes lease improvements and other equipment at Parent, as well as property acquired under a build-to-suit lease included in construction work in progress. Our plant costs include labor materials and contract services expenditures for replacement parts incurred during a major maintenance outage of a generating plant In addition, the cost of our utility plant and selected non-utility regulated projects at Sempra Mexico and Sempra Natural Gas includes an allowance for funds used during construction (AFUDC). We discuss AFUDC below. The cost of non-utility plant includes capitalized interest. Maintenance costs are expensed as incurred. The cost of most retired depreciable utility plant minus salvage value is charged to accumulated depreciation. Depreciation expense is based on the straight-line method over the useful lives of the assets or, for the California Utilities, a shorter period prescribed by the CPUC. Depreciation expense is computed using the straight-line method over the asset’s estimated original composite useful life, the CPUC-prescribed period or the remaining term of the site leases, whichever is shortest. The California Utilities finance their construction projects with borrowed funds and equity funds. The CPUC and the FERC allow the recovery of the cost of these funds by the capitalization of AFUDC, calculated using rates authorized by the CPUC and the FERC, as a cost component of property, plant and equipment. The California Utilities earn a return on the capitalized AFUDC after the utility property is placed in service and recover the AFUDC from their customers over the expected useful lives of the assets. Pipeline projects currently under construction by Sempra Mexico and Sempra Natural Gas that are both subject to certain regulation and meet U.S. GAAP regulatory accounting requirements record the impact of AFUDC related to equity. Sempra International and Sempra U.S. Gas & Power businesses capitalize interest costs incurred to finance capital projects and interest on equity method investments that have not commenced planned principal operations. The California Utilities also capitalize certain interest costs.
Public Utilities Policy [Abstract]
Regulatory Matters, Policy	REGULATORY MATTERS Effects of Regulation The accounting policies of our regulated utility subsidiaries in California, SDG&E and SoCalGas, conform with U.S. GAAP for regulated enterprises and reflect the policies of the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC). The California Utilities prepare their financial statements in accordance with U.S. GAAP provisions governing regulated operations. Under these provisions, a regulated utility records regulatory assets, which are generally costs that would otherwise be charged to expense, if it is probable that, through the ratemaking process, the utility will recover those assets from customers. To the extent that recovery is no longer probable, the related regulatory assets are written off. Regulatory liabilities generally represent amounts collected from customers in advance of the actual expenditure by the utility. If the actual expenditures are less than amounts previously collected from ratepayers, the excess would be refunded to customers, generally by reducing future rates. Regulatory liabilities may also arise from other transactions such as unrealized gains on fixed price contracts and other derivatives or certain deferred income tax benefits that are passed through to customers in future rates. In addition, the California Utilities record regulatory liabilities when the CPUC or the FERC requires a refund to be made to customers or has required that a gain or other transaction of net allowable costs be given to customers over future periods. Determining probability of recovery requires significant judgment by management and may include, but is not limited to, consideration of: the nature of the event giving rise to the assessment; existing statutes and regulatory code; legal precedents; regulatory principles and analogous regulatory actions; testimony presented in regulatory hearings; proposed regulatory decisions; final regulatory orders; a commission-authorized mechanism established for the accumulation of costs; status of applications for rehearings or state court appeals; specific approval from a commission; and historical experience. Our other natural gas distribution utilities, Mobile Gas, Willmut Gas and Ecogas, also apply U.S. GAAP for regulated utilities to their operations. Regulatory Balancing Accounts Over- and undercollected regulatory balancing accounts reflect the difference between customer billings and recorded or CPUC-authorized costs, primarily commodity costs. Amounts in the balancing accounts are recoverable (receivable) or refundable (payable) in future rates, subject to CPUC approval. Balancing account treatment eliminates the impact on earnings from variances in the covered costs from authorized amounts. Absent balancing account treatment, variations in the cost of fuel supply and certain operating and maintenance costs from amounts approved by the CPUC would increase volatility in utility earnings. Incentive awards are included in our earnings when we receive any required CPUC approval of the award. We would record penalties for results below the specified benchmarks in earnings when we believe it is more likely than not that the CPUC would assess a penalty.
Revenue Recognition Policy [Abstract]
Revenues, Policy	REVENUES Utilities Our California Utilities generate revenues primarily from deliveries to their customers of electricity by SDG&E and natural gas by both SoCalGas and SDG&E and from related services. They record these revenues following the accrual method and recognize them upon delivery and performance. They also record revenue from CPUC-approved incentive awards, some of which require approval by the CPUC prior to being recognized. On a monthly basis, SoCalGas accrues natural gas storage contract revenues, which consist of storage reservation and variable charges based on negotiated agreements with terms of up to 15 years. Our natural gas utilities outside of California (Mobile Gas, Willmut Gas and Ecogas) apply U.S. GAAP for regulated utilities consistent with the California Utilities. Our electric distribution utilities in South America, Chilquinta Energía and Luz del Sur, serve primarily regulated customers, and their revenues are based on tariffs that are set by the National Energy Commission (Comisión Nacional de Energía, or CNE) in Chile and the Energy and Mining Investment Supervisory Body (Organismo Supervisor de la Inversión en Energía y Minería, or OSINERGMIN) of the National Electricity Office under the Ministry of Energy and Mines in Peru. The tariffs charged are based on an efficient model distribution company defined by Chilean law in the case of Chilquinta Energía, and OSINERGMIN in the case of Luz del Sur. The tariffs include operation and maintenance costs, an internal rate of return on the new replacement value of depreciable assets, charges for the use of transmission systems, and a component for the value added by the distributor. Tariffs are designed to provide for a pass-through to customers of the main noncontrollable cost items (mainly power purchases and transmission charges), recovery of reasonable operating and administrative costs, incentives to reduce costs and make needed capital investments and a regulated rate of return on the distributor’s regulated asset base. Because the tariffs are based on a model and are intended to cover the costs of the model company, but are not based on the costs of the specific utility and may not result in full cost recovery, they do not meet the requirement necessary for treatment under applicable U.S. GAAP for regulatory accounting. As we discuss in Note 14, the natural gas supply for SDG&E’s and SoCalGas’ core natural gas customers is purchased by SoCalGas as a combined procurement portfolio managed by SoCalGas. Core customers are primarily residential and small commercial and industrial customers. This core gas procurement function is considered a shared service, therefore amounts related to SDG&E are not included in SoCalGas’ Consolidated Statements of Operations. Energy-Related Businesses Sempra South American Utilities Sempra South American Utilities generates revenues from energy-services companies that provide electric construction services and recognizes these revenues when services are provided in accordance with contractual agreements. The energy-services company in Chile also generates revenue from selling electricity to non-regulated customers. Sempra Mexico Sempra Mexico’s Termoeléctrica de Mexicali natural gas-fired power plant generates revenues from selling electricity and/or capacity to the California Independent System Operator (ISO) and to governmental, public utility and wholesale power marketing entities. Sempra Mexico recognizes these revenues as the electricity is delivered and capacity is provided. Sempra Mexico’s pipeline operations recognize revenues from the sale and transportation of natural gas as deliveries are made and from fixed capacity payments. Sempra Mexico also recognizes revenues from (1) the sale of LNG and natural gas as deliveries are made to counterparties and (2) from reservation and usage fees under terminal capacity agreements, nitrogen injection service agreements and tug service agreements. It reports revenue net of value added taxes in Mexico. Sempra Mexico’s revenues also include net realized gains and losses and the net change in the fair value of unrealized gains and losses on derivative contracts for natural gas. Sempra Renewables For consolidated entities, Sempra Renewables generates revenues from the sale of solar power pursuant to power purchase agreements, and recognizes these revenues when the power is delivered. It also generates revenues for the management of certain of its solar and wind project joint ventures. Sempra Natural Gas Sempra Natural Gas generates revenues from selling electricity and/or capacity from its Mesquite Power facility to the California ISO and to governmental, public utility and wholesale power marketing entities. Sempra Natural Gas recognizes these revenues as the electricity is delivered and capacity is provided. Related to its LNG terminal, prior to October 1, 2014, the effective date of the Cameron LNG Holdings joint venture, Sempra Natural Gas recognized revenues from reservation and usage fees. We discuss the deconsolidation of Cameron LNG, LLC and related assets further in Note 3. Sempra Natural Gas also records revenues from contractual counterparty obligations for non-delivery of LNG cargoes, as well as revenues from the sale of LNG and natural gas as deliveries are made to counterparties. Sempra Natural Gas recognizes revenue on natural gas storage and transportation operations when services are provided in accordance with contractual agreements for the storage and transportation services. Sempra Natural Gas revenues also include net realized gains and losses and the net change in the fair value of unrealized gains and losses on derivative contracts for power and natural gas.
Selling General And Administrative Expenses Policy [Abstract]
Operation and Maintenance Expenses, Policy	OPERATION AND MAINTENANCE EXPENSES Operation and Maintenance includes operating and maintenance costs, and general and administrative costs, consisting primarily of personnel costs, purchased materials and services, litigation expense and rent.
Stockholders Equity Policy [Abstract]
Comprehensive Income, Policy	COMPREHENSIVE INCOME Comprehensive income includes all changes in the equity of a business enterprise (except those resulting from investments by owners and distributions to owners), including: foreign currency translation adjustments changes in unamortized net actuarial gain or loss and prior service cost related to pension and other postretirement benefits plans unrealized gains or losses on available-for-sale securities certain hedging activities The Consolidated Statements of Comprehensive Income show the changes in the components of other comprehensive income (loss) (OCI), including the amounts attributable to noncontrolling interests.

ACQUISITION AND DIVESTITURE ACTIVITY (Policies)	12 Months Ended
ACQUISITION AND DIVESTITURE ACTIVITY (Policies)	Dec. 31, 2014
Acquisition And Divestiture Activity
Business Combinations Policy	We consolidate assets and liabilities acquired as of the purchase date and include earnings from acquisitions in consolidated earnings after the purchase date.

INVESTMENTS IN UNCONSOLIDATED ENTITIES (Policies)	12 Months Ended
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Policies)	Dec. 31, 2014
Investments
Investments in Unconsolidated Entities Policy	Sempra Energy uses the equity method to account for investments in affiliated companies over which we have the ability to exercise significant influence, but not control. We generally account for investments under the equity method when we have significant influence over, but do not have control of, these entities. In these cases, our pro rata shares of the entities’ net assets are included in Investments on the Consolidated Balance Sheets. We adjust each investment for our share of each investee’s earnings or losses, dividends, and other comprehensive income or loss. We evaluate the carrying value of unconsolidated entities for impairment under the U.S. GAAP provisions for equity method investments.

Disclosure of accounting policy for the equity method of accounting for investments in common stock or other interests including unconsolidated subsidiaries, corporate joint ventures, noncontrolling interests in real estate ventures, limited partnerships, and limited liability companies. The accounting policy may include information such as: (1) initially recording an investment in the stock of an investee at cost; (2) adjusting the carrying amount of the investment to recognize the investor's share of the earnings or losses of the investee after the date of acquisition; and (3) adjustments to reflect the investor's share of changes in the investee's capital (dividends). This disclosure may also include a detailed description of the policy for determining the amount of equity method losses recognized after an investment has been reduced to zero as a result of previous losses, reasons for not using the equity method when the investor company owns 20 percent or more of the voting stock of the investee's company (including identification of the significant investee), reasons for using the equity method when the ownership percentage is less than 20 percent, and discussion of recognition of equity method losses when an investor's total investment in an investee includes, in addition to an investment in common stock, other investments such as preferred stock and loans to the investee. An entity also may describe how such investments are assessed for impairment.

EMPLOYEE BENEFIT PLANS (Policies)	12 Months Ended
EMPLOYEE BENEFIT PLANS (Policies)	Dec. 31, 2014
Pension and other postretirement benefit
Pension And Other Postretirement Plans Policy	NOTE 7. EMPLOYEE BENEFIT PLANS We are required by applicable U.S. GAAP to: recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status in the statement of financial position; measure a plan’s assets and its obligations that determine its funded status as of the end of the fiscal year (with limited exceptions); and recognize changes in the funded status of pension and other postretirement benefit plans in the year in which the changes occur. Generally, those changes are reported in other comprehensive income and as a separate component of shareholders’ equity. The detailed information presented below covers the employee benefit plans of Sempra Energy and its principal subsidiaries. Sempra Energy has funded and unfunded noncontributory traditional defined benefit and cash balance plans, including separate plans for SDG&E and SoCalGas, which collectively cover all eligible employees, including members of the Sempra Energy board of directors who were participants in a predecessor plan on or before June 1, 1998. Pension benefits under the traditional defined benefit plans are based on service and final average pay, while the cash balance plans provide benefits using a career average earnings methodology. Chilquinta Energía has an unfunded contributory defined benefit plan covering all employees hired before October 1, 1981 and an unfunded noncontributory termination indemnity obligation covering all employees. The plans generally provide defined benefits to retirees based on date of hire, years of service and final average salary. Sempra Energy also has other postretirement benefit plans (PBOP), including separate plans for SDG&E and SoCalGas, which collectively cover all domestic (except Willmut Gas) and certain foreign employees. The life insurance plans are both contributory and noncontributory, and the health care plans are contributory. Participants’ contributions are adjusted annually. Other postretirement benefits include medical benefits for retirees’ spouses. Chilquinta Energía also has two noncontributory postretirement benefit plans which cover substantially all employees – a health care plan and an energy subsidy plan that provides for reduced energy rates. The health care plan includes benefits for retirees’ spouses and dependents. Pension and other postretirement benefits costs and obligations are dependent on assumptions used in calculating such amounts. These assumptions include discount rates expected return on plan assets health care cost trend rates mortality rates rate of compensation increases termination and retirement rates utilization of postretirement welfare benefits payout elections (lump sum or annuity) lump sum interest rates We review these assumptions on an annual basis prior to the beginning of each year and update them as appropriate. We consider current market conditions, including interest rates, in making these assumptions. New mortality table studies were released by the Society of Actuaries during 2014 that significantly increased life expectancy assumptions, and we have incorporated these new assumptions, adjusted for the Sempra Energy companies’ actual mortality experience, in our calculations. We use a December 31 measurement date for all of our plans. Net Assets and Liabilities The assets and liabilities of the pension and other postretirement benefit plans are affected by changing market conditions as well as when actual plan experience is different than assumed. Such events result in investment gains and losses, which we defer and recognize in pension and other postretirement benefit costs over a period of years. Sempra Energy Consolidated (except for SDG&E) and SoCalGas use the asset smoothing method for their pension and other postretirement plans. This method develops an asset value that recognizes realized and unrealized investment gains and losses over a three-year period. This adjusted asset value, known as the market-related value of assets, is used in conjunction with an expected long-term rate of return to determine the expected return-on-assets component of net periodic cost. SDG&E does not use the asset smoothing method, but rather recognizes realized and unrealized investment gains and losses during the current year. The 10-percent corridor accounting method is used at Sempra Energy Consolidated, SDG&E and SoCalGas. Under the corridor accounting method, if as of the beginning of a year unrecognized net gain or loss exceeds 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets, the excess is amortized over the average remaining service period of active participants. The asset smoothing and 10-percent corridor accounting methods help mitigate volatility of net periodic costs from year to year. We recognize the overfunded or underfunded status of defined benefit pension and other postretirement plans as assets or liabilities, respectively; unrecognized changes in these assets and/or liabilities are normally recorded in Accumulated Other Comprehensive Income (Loss) on the balance sheet. The California Utilities and Mobile Gas record regulatory assets and liabilities that offset the funded pension and other postretirement plans’ assets or liabilities, as these costs are expected to be recovered in future utility rates based on agreements with regulatory agencies. At Willmut Gas, pension contributions are recovered in rates on a prospective basis, but are not recorded as a regulatory asset pending recovery. The California Utilities record annual pension and other postretirement net periodic benefit costs equal to the contributions to their plans as authorized by the CPUC. The annual contributions to the pension plans are limited to a minimum required funding amount as determined by the Internal Revenue Service. The annual contributions to the other postretirement plans are equal to the lesser of the maximum tax deductible amount or the net periodic cost calculated in accordance with U.S. GAAP for pension and other postretirement benefit plans. Mobile Gas records annual pension and other postretirement net periodic benefit costs based on an estimate of the net periodic cost at the beginning of the year calculated in accordance with U.S. GAAP for pension and other postretirement benefit plans, as authorized by the Alabama Public Service Commission. Any differences between booked net periodic benefit cost and amounts contributed to the pension and other postretirement plans for the California Utilities are disclosed as regulatory adjustments in accordance with U.S. GAAP for regulated entities.

Disclosure of accounting policy for pension and other postretirement benefit plans. This accounting policy may address (1) the types of plans sponsored by the entity, and the benefits provided by each plan (2) groups that participate in (or are covered by) each plan (3) how plan assets, liabilities and expenses are measured, including the use of any actuaries and (4) significant assumptions used by the entity to value plan assets and liabilities and how such assumptions are derived.

Share-Based Compensation Policy

SHARE-BASED COMPENSATION (Policies)

12 Months Ended

Dec. 31, 2014

Share-based compensation

SHARE-BASED AWARDS AND COMPENSATION EXPENSE

We classify the tax benefits resulting from tax deductions in excess of the tax benefit related to compensation cost recognized for stock option exercises as financing cash flows.

SEMPRA ENERGY RESTRICTED STOCK AWARDS AND UNITS

DERIVATIVE FINANCIAL INSTRUMENTS (Policies)

12 Months Ended

Dec. 31, 2014

Derivatives Policy [Abstract]

Derivatives, Policy [Text Block]

HEDGE ACCOUNTING

ENERGY DERIVATIVES

The California Utilities use natural gas energy derivatives, for the benefit of customers, 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 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 Consolidated Statements of Operations.
Sempra Mexico and Sempra Natural Gas may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: LNG, natural gas transportation, power generation, and Sempra Natural Gas’ storage. Gains and losses associated with undesignated derivatives are recognized in Energy-Related Businesses Revenues or in Cost of Natural Gas, Electric Fuel and Purchased Power on the Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. Sempra Mexico also uses natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its Mexican distribution operations. These derivatives, which are recorded as commodity costs that are offset by regulatory account balances and recovered in rates, are recognized in Cost of Natural Gas on the Consolidated Statements of Operations.

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

INTEREST RATE DERIVATIVES

FOREIGN CURRENCY DERIVATIVES

Disclosure of accounting policy for its derivative instruments and hedging activities.

Fair Value Measurements Policy [Abstract]

FAIR VALUE MEASUREMENTS (Policies)

12 Months Ended

Dec. 31, 2014

Fair Value Measurement Policy

Recurring Fair Value Measures

The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 9 under “Financial Statement Presentation.”

Our financial assets and liabilities that were accounted for at fair value on a recurring basis at December 31, 2014 and 2013 in the tables below include the following:

Nuclear decommissioning trusts reflect the assets of SDG&E’s nuclear decommissioning trusts, excluding cash balances. A third party trustee values the trust assets using prices from a pricing service based on a market approach. We validate these prices by comparison to prices from other independent data sources. Equity and certain debt securities are valued using quoted prices listed on nationally recognized securities exchanges or based on closing prices reported in the active market in which the identical security is traded (Level 1). Other debt securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2).
We enter into commodity contracts and interest rate derivatives primarily as a means to manage price exposures. We may also manage foreign exchange rate exposures using derivatives. We primarily use a market approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). All Level 3 recurring items are related to CRRs at SDG&E, as we discuss below under “Level 3 Information.” We record commodity derivative contracts that are subject to rate recovery as commodity costs that are offset by regulatory account balances and are recovered in rates.

Investments include marketable securities that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1).

Fair Value of Financial Instruments

SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE (Policies)

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share, Policy [Text Block]

Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the year. 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.

SEGMENT (Policies)	12 Months Ended
SEGMENT (Policies)	Dec. 31, 2014
Segment [Abstract]
SegmentReportingPolicyPolicyTextBlock	Common services shared by the business segments are assigned directly or allocated based on various cost factors, depending on the nature of the service provided. Interest income and expense is recorded on intercompany loans. The loan balances and related interest are eliminated in consolidation.

COMMITMENTS AND CONTINGENCIES (Policies)	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Policies)	Dec. 31, 2014
Environmental Policy [Abstract]
Environmental Costs, Policy	We generally capitalize the significant costs we incur to mitigate or prevent future environmental contamination or extend the life, increase the capacity, or improve the safety or efficiency of property used in current operations. At the California Utilities, costs that relate to current operations or an existing condition caused by past operations are generally recorded as a regulatory asset due to the probability that these costs will be recovered in rates. We record environmental liabilities at undiscounted amounts when our liability is probable and the costs can be reasonably estimated. In many cases, however, investigations are not yet at a stage where we can determine whether we are liable or, if the liability is probable, to reasonably estimate the amount or range of amounts of the costs. Estimates of our liability are further subject to uncertainties such as the nature and extent of site contamination, evolving cleanup standards and imprecise engineering evaluations. We review our accruals periodically and, as investigations and cleanup proceed, we make adjustments as necessary.
Legal Costs Policy [Abstract]
Legal Fees, Policy	LEGAL FEES Legal fees that are associated with a past event for which a liability has been recorded are accrued when it is probable that fees also will be incurred. LEGAL PROCEEDINGS We accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount 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 coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued.
concentration of credit risk
Concentration of Credit Risk, Policy	CONCENTRATION OF CREDIT RISK We maintain credit policies and systems to manage our overall credit risk. These policies include an evaluation of potential counterparties’ financial condition and an assignment of credit limits. These credit limits are established based on risk and return considerations under terms customarily available in the industry. We grant credit to utility customers and counterparties, substantially all of whom are located in our service territory, which covers most of Southern California and a portion of central California for SoCalGas, and all of San Diego County and an adjacent portion of Orange County for SDG&E. We also grant credit to utility customers and counterparties of our other companies providing natural gas or electric services in Mexico, Chile, Peru, southwest Alabama, and Hattiesburg, Mississippi. When they become operational, projects owned or partially owned by Sempra Natural Gas, Sempra Renewables, Sempra South American Utilities and Sempra Mexico place significant reliance on the ability of their suppliers and customers to perform on long-term agreements and on our ability to enforce contract terms in the event of nonperformance. We consider many factors, including the negotiation of supplier and customer agreements, when we evaluate and approve development projects.

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA (Tables)

12 Months Ended

Dec. 31, 2014

Schedule Of Regulatory Balancing Accounts [Abstract]

Schedule Of Regulatory Balancing Accounts

SUMMARY OF REGULATORY BALANCING ACCOUNTS AT DECEMBER 31
(Dollars in millions)
		Sempra Energy
		Consolidated				SDG&E				SoCalGas
		2014		2013		2014		2013		2014		2013
Current:
Overcollected		$	(1,730)	$	(1,077)	$	(1,195)	$	(645)	$	(535)	$	(432)
Undercollected			2,476		1,542		1,906		1,201		570		341
Net current receivable (payable)(1)			746		465		711		556		35		(91)
Noncurrent:
Undercollected(2)			173		213		―		161		173		52
Total net receivable (payable)(1)		$	919	$	678	$	711	$	717	$	208	$	(39)
(1)	At December 31, 2013, the net receivable at SDG&E and the net payable at SoCalGas are shown separately on Sempra Energy's Consolidated Balance Sheet.
(2)	Long-term undercollected balance included in Regulatory Assets (long-term) on the Consolidated Balance Sheets.

Schedule Of Regulatory Assets (Liabilities) [Abstract]

Schedule of regulatory assets and liabilities

REGULATORY ASSETS (LIABILITIES) AT DECEMBER 31
(Dollars in millions)
		2014		2013
SDG&E:
Fixed-price contracts and other derivatives		$	76	$	58
Costs related to SONGS plant closure			308		303
Costs related to wildfire litigation			373		330
Deferred taxes recoverable in rates			824		788
Pension and other postretirement benefit obligations			171		106
Removal obligations(1)			(1,557)		(1,403)
Unamortized loss on reacquired debt			12		14
Environmental costs			27		20
Legacy meters			47		62
Sunrise Powerlink fire mitigation			116		115
Other			10		15
Total SDG&E			407		408
SoCalGas:
Pension and other postretirement benefit obligations			613		231
Employee benefit costs			52		51
Removal obligations(1)			(1,167)		(1,205)
Deferred taxes recoverable in rates			195		110
Unamortized loss on reacquired debt			12		14
Environmental costs			22		14
Workers’ compensation			23		26
Total SoCalGas			(250)		(759)
Other Sempra Energy:
Sempra Natural Gas			(17)		(11)
Sempra Mexico			23		8
Total Other Sempra Energy			6		(3)
Total Sempra Energy Consolidated		$	163	$	(354)
(1)	Related to obligations discussed below in “Asset Retirement Obligations.”

NET REGULATORY ASSETS (LIABILITIES) AS PRESENTED ON THE CONSOLIDATED BALANCE SHEETS AT DECEMBER 31
(Dollars in millions)
		2014						2013
		Sempra						Sempra
		Energy						Energy
		Consolidated		SDG&E		SoCalGas		Consolidated		SDG&E		SoCalGas
Current regulatory assets(1)		$	59	$	54	$	5	$	38	$	29	$	5
Noncurrent regulatory assets(2)			2,858		1,910		916		2,335		1,787		536
Current regulatory liabilities(3)			(7)		―		―		(7)		(5)		―
Noncurrent regulatory liabilities(4)			(2,747)		(1,557)		(1,171)		(2,720)		(1,403)		(1,300)
Total		$	163	$	407	$	(250)	$	(354)	$	408	$	(759)
(1)	At Sempra Energy Consolidated, included in Other Current Assets.
(2)	Excludes long-term undercollected balancing accounts at December 31, 2014 and 2013, of $173 million and $213 million at Sempra Energy, none and $161 million at SDG&E, and $173 million and $52 million at SoCalGas, respectively, recorded in Regulatory Assets (long-term).
(3)	Included in Other Current Liabilities.
(4)	At December 31, 2014 and 2013, $6 million and $97 million, respectively, at Sempra Energy Consolidated and $4 million and $95 million, respectively, at SoCalGas is included in Deferred Credits and Other.

Schedule Of Receivables Collection Allowances [Abstract]

Schedule Of Receivables Collection Allowances

COLLECTION ALLOWANCES
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012
Sempra Energy Consolidated
Allowances for collection of receivables at January 1	$	29	$	31	$	29
Provisions for uncollectible accounts		25		16		21
Write-offs of uncollectible accounts		(20)		(18)		(19)
Allowances for collection of receivables at December 31	$	34	$	29	$	31
SDG&E
Allowances for collection of receivables at January 1	$	5	$	6	$	6
Provisions for uncollectible accounts		7		4		5
Write-offs of uncollectible accounts		(5)		(5)		(5)
Allowances for collection of receivables at December 31	$	7	$	5	$	6
SoCalGas
Allowances for collection of receivables at January 1	$	12	$	14	$	12
Provisions for uncollectible accounts		15		7		12
Write-offs of uncollectible accounts		(10)		(9)		(10)
Allowances for collection of receivables at December 31	$	17	$	12	$	14

Schedule Of Inventory Balances [Abstract]

Schedule of inventory

INVENTORY BALANCES AT DECEMBER 31
(Dollars in millions)
	Natural Gas					LNG			Materials and supplies				Total
	2014		2013			2014	2013		2014		2013		2014		2013
SDG&E	$	8	$	3	$	―	$	―	$	65	$	83	$	73	$	86
SoCalGas		155		42		―		―		26		27		181		69
Sempra South American Utilities		―		―		―		―		33		40		33		40
Sempra Mexico		―		―		9		3		9		9		18		12
Sempra Renewables		―		―		―		―		2		2		2		2
Sempra Natural Gas		83		68		5		5		1		5		89		78
Sempra Energy Consolidated	$	246	$	113	$	14	$	8	$	136	$	166	$	396	$	287

Schedule Of Property Plant And Equipment By Major Functional Category [Abstract]

Schedule Of Property Plant And Equipment By Major Functional Category

PROPERTY, PLANT AND EQUIPMENT BY MAJOR FUNCTIONAL CATEGORY
(Dollars in millions)
		Property, plant				Depreciation rates for
		and equipment at				years ended
		December 31,				December 31,
		2014		2013		2014		2013		2012
SDG&E:
Natural gas operations		$	1,535	$	1,454	2.72	%	2.35	%	3.20	%
Electric distribution			5,795		5,492	3.79		3.36		4.15
Electric transmission(1)			4,525		3,932	2.59		2.58		2.63
Electric generation(2)			1,862		1,768	3.86		3.76		4.68
Other electric(3)			851		759	7.09		7.58		7.92
Construction work in progress(1)			910		941	NA		NA		NA
Total SDG&E			15,478		14,346
SoCalGas:
Natural gas operations(4)			12,098		11,394	3.89		3.70		3.74
Other non-utility			120		118	2.88		1.56		1.36
Construction work in progress			668		319	NA		NA		NA
Total SoCalGas			12,886		11,831

						Estimated			Weighted average
Other operating units and parent(5):						useful lives			useful life
Land and land rights			290		276	26 to 55 years(6)			41
Machinery and equipment:
Utility electric distribution operations			1,434		1,440	10 to 46 years			41
Generating plants			596		993	30 to 50 years			32
LNG terminals			1,122		2,094	5 to 43 years			43
Pipelines and storage			2,003		1,638	3 to 55 years			46
Other			213		212	1 to 50 years			13
Construction work in progress			1,053		1,283	NA			NA
Other			332		294	1 to 80 years			27
			7,043		8,230
Total Sempra Energy Consolidated		$	35,407	$	34,407
(1)	At December 31, 2014, includes $365 million in electric transmission assets and $12 million in construction work in progress related to SDG&E's 91-percent interest in the Southwest Powerlink (SWPL) transmission line, jointly owned by SDG&E with other utilities. SDG&E, and each of the other owners, holds its undivided interest as a tenant in common in the property. Each owner is responsible for its share of the project and participates in decisions concerning operations and capital expenditures.
(2)	Includes capital lease assets of $243 million and $183 million at December 31, 2014 and 2013, respectively, primarily related to variable interest entities of which SDG&E is not the primary beneficiary.
(3)	Includes capital lease assets of $19 million and $23 million at December 31, 2014 and 2013, respectively.
(4)	Includes capital lease assets of $27 million and $33 million at December 31, 2014 and 2013, respectively.
(5)	December 31, 2014 balances include $150 million, $191 million and $24 million of utility plant, primarily pipelines and other distribution assets, at Ecogas, Mobile Gas and Willmut Gas, respectively. December 31, 2013 balances include $155 million, $180 million and $22 million of utility plant, primarily pipelines and other distribution assets, at Ecogas, Mobile Gas and Willmut Gas, respectively.
(6)	Estimated useful lives are for land rights.

Schedule Of Accumulated Depreciation And Decommissioning Amounts [Abstract]

Schedule Of Accumulated Depreciation And Decommissioning Amounts

ACCUMULATED DEPRECIATION
(Dollars in millions)
		December 31,
		2014		2013
SDG&E:
Accumulated depreciation:
Electric(1)		$	3,192	$	2,861
Natural gas			668		639
Total SDG&E			3,860		3,500
SoCalGas:
Accumulated depreciation of natural gas utility plant in service(2)			4,555		4,279
Accumulated depreciation – other non-utility			87		85
Total SoCalGas			4,642		4,364
Other operating units and parent:
Accumulated depreciation – other(3)			824		938
Accumulated depreciation of utility electric distribution operations			179		145
			1,003		1,083
Total Sempra Energy Consolidated		$	9,505	$	8,947
(1)	Includes accumulated depreciation for assets under capital lease of $28 million and $26 million at December 31, 2014 and 2013, respectively. Includes $211 million at December 31, 2014 related to SDG&E's 91-percent interest in the SWPL transmission line, jointly owned by SDG&E and other utilities.
(2)	Includes accumulated depreciation for assets under capital lease of $27 million and $31 million at December 31, 2014 and 2013, respectively.
(3)	December 31, 2014 balances include $37 million, $29 million and $2 million of accumulated depreciation for utility plant at Ecogas, Mobile Gas and Willmut Gas, respectively. December 31, 2013 balances include $38 million, $25 million and $2 million of accumulated depreciation for utility plant at Ecogas, Mobile Gas and Willmut Gas, respectively.

Schedule Of Capitalized Financing Costs [Abstract]

Schedule Of Capitalized Financing Costs

CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012
Sempra Energy Consolidated:
AFUDC related to debt	$	22	$	22	$	38
AFUDC related to equity		106		75		96
Other capitalized financing costs		39		22		52
Total Sempra Energy Consolidated	$	167	$	119	$	186
SDG&E:
AFUDC related to debt	$	15	$	16	$	30
AFUDC related to equity		37		39		71
Total SDG&E	$	52	$	55	$	101
SoCalGas:
AFUDC related to debt	$	7	$	6	$	8
AFUDC related to equity		26		17		25
Other capitalized financing costs		1		1		1
Total SoCalGas	$	34	$	24	$	34

Schedule Of Goodwill [Abstract]

Schedule Of Goodwill

GOODWILL
(Dollars in millions)
			Sempra
		South American			Sempra		Sempra
			Utilities		Mexico		Natural Gas		Total
Balance at December 31, 2012		$	1,014	$	25	$	72	$	1,111
Foreign currency translation(1)			(87)		―		―		(87)
Balance at December 31, 2013			927		25		72		1,024
Foreign currency translation(1)			(93)		―		―		(93)
Balance at December 31, 2014		$	834	$	25	$	72	$	931
(1)	We record the offset of this fluctuation to other comprehensive income.

Schedule Of Acquired Finite Lived Intangible Assets By Major Class [Abstract]

Schedule Of Other Intangible Assets

OTHER INTANGIBLE ASSETS
(Dollars in millions)
	Amortization period	December 31,
	(years)	2014		2013
Storage rights	46	$	138	$	138
Development rights	50		322		322
Other	10 years to indefinite		18		19
			478		479
Less accumulated amortization:
Storage rights			(19)		(16)
Development rights			(40)		(34)
Other			(4)		(3)
			(63)		(53)
		$	415	$	426

Schedule Of Variable Interest Entities [Abstract]

Schedule Of Variable Interest Entities

AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
			December 31,
			2014		2013
Cash and cash equivalents			$	5	$	17
Restricted cash				8		6
Inventories				3		2
Other				1		1
Total current assets				17		26
Restricted cash				11		25
Sundry				3		4
Property, plant and equipment, net				410		438
Total assets			$	441	$	493

Current portion of long-term debt			$	10	$	10
Fixed-price contracts and other derivatives				16		16
Other				3		19
Total current liabilities				29		45
Long-term debt				315		325
Fixed-price contracts and other derivatives				31		39
Deferred credits and other				6		(7)
Other noncontrolling interest				60		91
Total liabilities and equity			$	441	$	493

	Years ended December 31,
	2014		2013		2012
Operating expenses
Cost of electric fuel and purchased power	$	(83)	$	(91)	$	(83)
Operation and maintenance		19		24		19
Depreciation and amortization		27		28		26
Total operating expenses		(37)		(39)		(38)
Operating income		37		39		38
Other expense, net		―		―		(1)
Interest expense		(17)		(15)		(11)
Income before income taxes/Net income		20		24		26
Earnings attributable to noncontrolling interest		(20)		(24)		(26)
Earnings	$	―	$	―	$	―

Schedule Of Changes In Asset Retirement Obligations [Abstract]

Schedule Of Changes In Asset Retirement Obligations

CHANGES IN ASSET RETIREMENT OBLIGATIONS
(Dollars in millions)
		Sempra Energy
		Consolidated				SDG&E				SoCalGas
		2014		2013		2014		2013		2014		2013
Balance as of January 1(1)		$	2,152	$	2,056	$	913	$	741	$	1,199	$	1,253
Accretion expense			97		97		43		45		52		49
Liabilities incurred			4		4		―		―		―		―
Reclassification(2)			(6)		―		―		―		―		―
Payments			(29)		(49)		(29)		(48)		―		―
Revisions, GRC-related(3)			―		(135)		―		(30)		―		(105)
Revisions, other(4)(5)			(28)		179		(54)		205		25		2
Balance at December 31(1)		$	2,190	$	2,152	$	873	$	913	$	1,276	$	1,199
(1)	The current portions of the obligations are included in Other Current Liabilities on the Consolidated Balance Sheets.
(2)	Reclassification to liability held for sale - asset retirement obligation which is included in Other Current Liabilities on the Consolidated Balance Sheets, as we discuss in "Asset Held for Sale" in Note 3.
(3)	The decreases in asset retirement obligations in 2013 at SDG&E and SoCalGas are due to revised estimates related to the 2012 General Rate Case (GRC) that received final approval in May 2013. At SDG&E, these revisions included increases in asset service lives ranging from 2 percent to 7 percent, and lower estimated cost of removal. At SoCalGas, the decrease includes increases in asset service lives ranging from 4 percent to 6 percent, partially offset by a higher estimated cost of removal.
(4)	The decrease in asset retirement obligations in 2014 at SDG&E is due to revised estimates in an updated decommissioning cost study for the San Onofre Nuclear Generating Station, which we discuss in Note 13. The increase in asset retirement obligations in 2014 at SoCalGas is related to a change in estimates.
(5)	The increase in asset retirement obligations in 2013 at SDG&E is due to revised estimates recorded in the third quarter of 2013 related to the early decommissioning of SONGS Units 2 and 3 (see Note 13).

Schedule Of Changes in Accumulated Other Comprehensive Income By Component [Abstract]

Schedule Of Changes In Accumulated Other Comprehensive Income By Component

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
				Pension and other
				postretirement benefits
		Foreign								Total
		currency		Unamortized		Unamortized				accumulated other
		translation		net actuarial		prior service		Financial		comprehensive
		adjustments		gain (loss)		credit (cost)		instruments		income (loss)
2014:
Balance as of December 31, 2013		$	(129)	$	(73)	$	―	$	(26)	$	(228)
Other comprehensive loss before
reclassifications			(193)		(24)		(2)		(70)		(289)
Amounts reclassified from accumulated other
comprehensive income			―		14		―		6		20
Net other comprehensive loss			(193)		(10)		(2)		(64)		(269)
Balance as of December 31, 2014		$	(322)	$	(83)	$	(2)	$	(90)	$	(497)
2013:
Balance as of December 31, 2012		$	(240)	$	(102)	$	1	$	(35)	$	(376)
Other comprehensive (loss) income before
reclassifications			(159)		21		(1)		2		(137)
Amounts reclassified from accumulated other
comprehensive income			270	⁽²⁾	8		―		7		285
Net other comprehensive income (loss)			111		29		(1)		9		148
Balance as of December 31, 2013		$	(129)	$	(73)	$	―	$	(26)	$	(228)
2012:
Balance as of December 31, 2011		$	(359)	$	(100)	$	1	$	(31)	$	(489)
Other comprehensive income (loss) before
reclassifications			119		(13)		―		(10)		96
Amounts reclassified from accumulated other
comprehensive income			―		11		―		6		17
Net other comprehensive income (loss)			119		(2)		―		(4)		113
Balance as of December 31, 2012		$	(240)	$	(102)	$	1	$	(35)	$	(376)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.
(2)	Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4.

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SAN DIEGO GAS & ELECTRIC COMPANY
(Dollars in millions)
		Pension and other
		postretirement benefits
						Total
		Unamortized		Unamortized		accumulated other
		net actuarial		prior service		comprehensive
		gain (loss)		credit		income (loss)
2014:
Balance as of December 31, 2013		$	(10)	$	1	$	(9)
Other comprehensive loss before
reclassifications			(5)		―		(5)
Amounts reclassified from accumulated other
comprehensive income			2		―		2
Net other comprehensive loss			(3)		―		(3)
Balance as of December 31, 2014		$	(13)	$	1	$	(12)
2013:
Balance as of December 31, 2012		$	(12)	$	1	$	(11)
Amounts reclassified from accumulated other
comprehensive income			2		―		2
Net other comprehensive income			2		―		2
Balance as of December 31, 2013		$	(10)	$	1	$	(9)
2012:
Balance as of December 31, 2011		$	(11)	$	1	$	(10)
Other comprehensive loss before
reclassifications			(2)		―		(2)
Amounts reclassified from accumulated other
comprehensive loss			1		―		1
Net other comprehensive loss			(1)		―		(1)
Balance as of December 31, 2012		$	(12)	$	1	$	(11)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SOUTHERN CALIFORNIA GAS COMPANY
(Dollars in millions)
		Pension and other
		postretirement benefits
								Total
		Unamortized		Unamortized				accumulated other
		net actuarial		prior service		Financial		comprehensive
		gain (loss)		credit		instruments		income (loss)
2014:
Balance as of December 31, 2013		$	(5)	$	1	$	(14)	$	(18)
Other comprehensive loss before
reclassifications			(3)		―		―		(3)
Amounts reclassified from accumulated other
comprehensive income			3		―		―		3
Net other comprehensive income			―		―		―		―
Balance as of December 31, 2014		$	(5)	$	1	$	(14)	$	(18)
2013:
Balance as of December 31, 2012		$	(4)	$	1	$	(15)	$	(18)
Other comprehensive loss before
reclassifications			(2)		―		―		(2)
Amounts reclassified from accumulated other
comprehensive income			1		―		1		2
Net other comprehensive (loss) income			(1)		―		1		―
Balance as of December 31, 2013		$	(5)	$	1	$	(14)	$	(18)
2012:
Balance as of December 31, 2011		$	(6)	$	1	$	(16)	$	(21)
Other comprehensive income before
reclassifications			1		―		―		1
Amounts reclassified from accumulated other
comprehensive income			1		―		1		2
Net other comprehensive income			2		―		1		3
Balance as of December 31, 2012		$	(4)	$	1	$	(15)	$	(18)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.

Schedule Of Reclassifications Out Of Accumulated Other Comprehensive Income [Abstract]

Schedule Of Reclassifications Out Of Accumulated Other Comprehensive Income

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
		Amounts reclassified
Details about accumulated		from accumulated other						Affected line item
other comprehensive income (loss) components		comprehensive income (loss)						on consolidated statement of operations
		Years ended December 31,
		2014		2013		2012
Sempra Energy Consolidated:
Foreign currency translation adjustments		$	―	$	270	$	―	Equity Earnings, Net of Income Tax(1)

Financial instruments:
Interest rate and foreign exchange instruments		$	21	$	11	$	9	Interest Expense
Interest rate instruments			(3)		―		―	Gain on Sale of Equity Interests and Assets
Interest rate instruments			10		10		6	Equity Earnings, Before Income Tax
Commodity contracts not subject to								Revenues: Energy-Related
	rate recovery		(8)		(1)		―	Businesses
Total before income tax			20		20		15
			(3)		(4)		(4)	Income Tax Expense
Net of income tax			17		16		11
			(11)		(9)		(5)	Earnings Attributable to Noncontrolling Interests
		$	6	$	7	$	6

Pension and other postretirement benefits:
Net actuarial gain		$	―	$	3	$	10	(2)
Amortization of actuarial loss			23		10		9	(2)
			(9)		(5)		(8)	Income Tax Expense
Net of income tax		$	14	$	8	$	11

Total reclassifications for the period, net of tax		$	20	$	285		17
SDG&E:
Financial instruments:
Interest rate instruments		$	11	$	9	$	5	Interest Expense
			(11)		(9)		(5)	Earnings Attributable to Noncontrolling Interest
		$	―	$	―	$	―

Pension and other postretirement benefits:
Net actuarial gain		$	―	$	2	$	1	(2)
Amortization of actuarial loss			3		1		1	(2)
			(1)		(1)		(1)	Income Tax Expense
Net of income tax		$	2	$	2	$	1

Total reclassifications for the period, net of tax		$	2	$	2	$	1
SoCalGas:
Financial instruments:
Interest rate instruments		$	1	$	1	$	2	Interest Expense
			(1)		―		(1)	Income Tax Expense
Net of income tax		$	―	$	1	$	1

Pension and other postretirement benefits:
Net actuarial gain		$	―	$	―	$	1	(2)
Amortization of actuarial loss			5		1		1	(2)
			(2)		―		(1)	Income Tax Expense
Net of income tax		$	3	$	1	$	1

Total reclassifications for the period, net of tax		$	3	$	2	$	2
(1)	Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4.
(2)	Amounts are included in the computation of net periodic benefit cost (see "Net Periodic Benefit Cost, 2012 - 2014" in Note 7).

Schedule Of Noncontrolling Interests [Abstract]

Schedule Of Noncontrolling Interests

OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
		Percent ownership held by others				December 31,
		2014		2013		2014		2013
SDG&E:
Otay Mesa VIE		100	%	100	%	$	60	$	91
Sempra South American Utilities:
Chilquinta Energía subsidiaries(1)		23.6 - 43.4		24.4 - 43.4			23		27
Luz del Sur		16.4		20.2			177		222
Tecsur		9.8		9.8			4		3
Sempra Mexico:
IEnova, S.A.B. de C.V.		18.9		18.9			452		442
Sempra Natural Gas:
Bay Gas Storage Company, Ltd.		9.1		9.1			23		22
Liberty Gas Storage, LLC		25.0		25.0			14		14
Southern Gas Transmission Company		49.0		49.0			1		1
Total Sempra Energy						$	754	$	822
(1)	Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.

Schedule Of Utilities Revenues [Abstract]

Schedule Of Utilities Revenues

TOTAL UTILITIES REVENUES AT SEMPRA ENERGY CONSOLIDATED(1)
(Dollars in millions)
		Years ended December 31,
		2014		2013		2012
Electric revenues		$	5,209	$	4,911	$	4,568
Natural gas revenues			4,549		4,398		3,873
Total		$	9,758	$	9,309	$	8,441
(1)	Excludes intercompany revenues.

Schedule Of Due To And From Affiliates [Abstract]

Schedule Of Amounts Due To and From Affiliates at SDG&E and SoCalGas

AMOUNTS DUE TO AND FROM AFFILIATES AT SDG&E AND SOCALGAS
(Dollars in millions)
		December 31,
		2014		2013
SDG&E:
Current:
Due from various affiliates		$	1	$	1

Due to Sempra Energy		$	17	$	25
Due to SoCalGas			4		―
Due to various affiliates			―		14
		$	21	$	39

Income taxes due from Sempra Energy(1)		$	16	$	70
SoCalGas:
Current:
Due from SDG&E		$	4	$	―
Due from various affiliates			―		21
		$	4	$	21

Due to Sempra Energy		$	13	$	16

Income taxes due from Sempra Energy(1)		$	9	$	18
(1)	SDG&E 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.

Schedule Of Revenues From Affiliates [Abstract]

Schedule Of Revenues From Unconsolidated Affiliates at the SDG&E and SoCalGas

Schedule Of Other Income (Expense) [Abstract]

Schedule Of Other Income (Expense)

OTHER INCOME, NET
(Dollars in millions)
		Years ended December 31,
		2014		2013		2012
Sempra Energy Consolidated:
Allowance for equity funds used during construction		$	106	$	75	$	96
Investment gains(1)			27		39		41
Electrical infrastructure relocation income(2)			21		4		6
(Losses) gains on interest rate and foreign exchange instruments, net			(15)		17		10
Foreign currency (losses) gains			(15)		(3)		9
Regulatory interest, net(3)			6		5		1
Sundry, net			7		3		9
	Total	$	137	$	140	$	172
SDG&E:
Allowance for equity funds used during construction		$	37	$	39	$	71
Regulatory interest, net(3)			6		4		2
Sundry, net			(3)		(3)		(4)
	Total	$	40	$	40	$	69
SoCalGas:
Allowance for equity funds used during construction		$	26	$	17	$	25
Regulatory interest, net(3)			―		1		(1)
Sundry, net			(6)		(7)		(7)
	Total	$	20	$	11	$	17
(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)	Income at Luz del Sur associated with the relocation of electrical infrastructure.
(3)	Interest on regulatory balancing accounts.

ACQUISTION AND DIVESTITURE ACTIVITY (Tables)

12 Months Ended

Dec. 31, 2014

Deconsolidation (Tables) [Abstract]

Schedule Of Deconsolidation [Text Block]

DECONSOLIDATION OF SUBSIDIARIES
(Dollars in millions)
		BrokenBow 2 Wind		CameronLNG		Energía Sierra Juárez		Copper MountainSolar 3		Sempra EnergyConsolidated
		At November 5		At October 1		At July 16		At March 13
2014:
Proceeds, net of negligible transaction costs		$	58	$	―	$	26	$	68	$	152
Cash			―		(6)		(2)		(2)		(10)
Restricted cash			(5)		―		―		―		(5)
Other current assets			(1)		(11)		(11)		―		(23)
Property, plant and equipment, net			(151)		(1,022)		(137)		(247)		(1,557)
Other assets			(8)		(30)		(16)		(11)		(65)
Accounts payable and accrued expenses			3		93		10		82		188
Due to affiliate			―		―		39		―		39
Long-term debt, including current portion			72		―		82		97		251
Other liabilities			2		―		7		3		12
Accumulated other comprehensive income			―		―		(5)		(2)		(7)
Gain on sale of equity interests(1)			(14)		―		(19)		(27)		(60)
(Increase) in equity method investments upon
deconsolidation		$	(44)	$	(976)	$	(26)	$	(39)	$	(1,085)

						Mesquite Solar 1		Copper Mountain Solar 2		Sempra Energy Consolidated
						At September 19		At July 11(3)
2013:
Proceeds from sale, net of transaction costs(2)						$	100	$	69	$	169
Property, plant and equipment, net							(461)		(266)		(727)
Other assets							(72)		(30)		(102)
Long-term debt, including current portion							297		146		443
Other liabilities							31		19		50
Gain on sale of equity interests(1)							(36)		(4)		(40)
(Increase) in equity method investments upon
deconsolidation						$	(141)	$	(66)	$	(207)
(1)	Included in Gain on Sale of Equity Interests and Assets on our Consolidated Statements of Operations.
(2)	Transaction costs were $3 million at both Mesquite Solar 1 and Copper Mountain Solar 2.
(3)	Proceeds from sale, net of transaction costs, was adjusted for financial position at closing in the fourth quarter of 2013.

Schedule Of Long Lived Assets Held For Sale [Abstract]

Schedule Of Long Lived Assets Held For Sale [Text Block]

ASSET HELD FOR SALE, POWER PLANT
(Dollars in millions)
		December 31,
		2014
Property, plant, and equipment, net		$	290
Inventories			3
Total assets held for sale			293
Liability held for sale - asset retirement obligation(1)			(6)
Total		$	287
(1)	Included in Other Current Liabilities on the Consolidated Balance Sheet.

INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)

12 Months Ended

Dec. 31, 2014

Schedule Of Equity Method And Other Investments [Abstract]

Schedule Of Equity Method And Other Investments

EQUITY METHOD AND OTHER INVESTMENT BALANCES
(Dollars in millions)
		December 31,
		2014		2013
Sempra South American Utilities:
Eletrans(1)		$	(8)	$	(3)
Sempra Mexico:
Energía Sierra Juárez(2)			25		―
Gasoductos de Chihuahua(3)			409		379
Sempra Renewables:
Wind:
Auwahi Wind			45		53
Broken Bow 2 Wind			44		―
Cedar Creek 2 Wind			82		92
Flat Ridge 2 Wind			284		292
Fowler Ridge 2 Wind			46		51
Mehoopany Wind			82		85
Solar:
California solar partnership			125		―
Copper Mountain Solar 2			61		67
Copper Mountain Solar 3			56		―
Mesquite Solar 1			86		67
Sempra Natural Gas:
Cameron LNG Holdings(4)			1,007		―
Rockies Express Pipeline LLC(5)			340		329
Parent and other:
RBS Sempra Commodities LLP			71		73
Total equity method investments			2,755		1,485
Other(6)			93		90
Total		$	2,848	$	1,575
(1)	Includes losses on forward exchange contracts as we discuss below.
(2)	The carrying value of our equity method investment is $12 million higher than the underlying equity in the net assets of the investee at December 31, 2014 due to the remeasurement of our retained investment to fair value.
(3)	The carrying value of our equity method investment is $65 million higher than the underlying equity in the net assets of the investee at December 31, 2014 and 2013 due to equity method goodwill.
(4)	The carrying value of our equity method investment is $94 million higher than the underlying equity in the net assets of the investee at December 31, 2014 primarily due to guarantees as we discuss below.
(5)	The carrying value of our equity method investment is $369 million and $382 million lower than the underlying equity in the net assets of the investee at December 31, 2014 and 2013, respectively, due to an impairment charge recorded in 2012.
(6)	Other includes Sempra Natural Gas' $77 million investment in industrial development bonds at Mississippi Hub at both December 31, 2014 and 2013.

EARNINGS (LOSSES) FROM EQUITY METHOD INVESTMENTS
(Dollars in millions)
		Years ended December 31,
		2014		2013		2012
Earnings (losses) recorded before income tax:
Sempra Renewables:
Wind:
Auwahi Wind		$	4	$	4	$	―
Cedar Creek 2 Wind			(3)		(4)		(4)
Flat Ridge 2 Wind			(7)		(8)		1
Fowler Ridge 2 Wind			2		(3)		(3)
Mehoopany Wind			(1)		(2)		―
Solar:
California solar partnership			6		―		―
Copper Mountain Solar 2			3		―		―
Copper Mountain Solar 3			2		―		―
Mesquite Solar 1			14		1		―
Sempra Natural Gas:
Cameron LNG Holdings			2		―		―
Rockies Express Pipeline LLC:
Impairment			―		―		(400)
Income tax make-whole payment received			―		―		41
Other equity earnings			60		47		47
Parent and other:
RBS Sempra Commodities LLP			(2)		(3)		―
Other			1		(1)		(1)
		$	81	$	31	$	(319)

Earnings (losses) recorded net of income tax(1):
Sempra South American Utilities:
Sodigas Pampeana and Sodigas Sur		$	―	$	(11)	$	―
Eletrans			(4)		(4)		―
Sempra Mexico:
Energía Sierra Juárez			3		―		―
Gasoductos de Chihuahua			39		39		36
		$	38	$	24	$	36
(1)	As the earnings (losses) from these investments are recorded net of income tax, they are presented below the income tax expense line, so as not to impact our effective income tax rate.

SUMMARIZED FINANCIAL INFORMATION
(Dollars in millions)
		Years ended December 31,
		2014		2013		2012
Gross revenues		$	1,296	$	1,734	$	2,138
Operating expense			(749)		(1,287)		(1,801)
Income from operations			547		447		337
Interest expenses			(298)		(251)		(218)
Net income/Earnings(1)			291		222		(52)

				At December 31,
				2014		2013
Current assets				$	865	$	653
Noncurrent assets					13,161		9,439
Current liabilities					1,131		373
Noncurrent liabilities					6,228		4,547
(1)	Except for Gasoductos de Chihuahua, Energía Sierra Juárez, Eletrans and the Argentine investments, there was no income tax recorded by the entities, as they are primarily domestic partnerships.

DEBT AND CREDIT FACILITIES (Tables)

12 Months Ended

Dec. 31, 2014

Schedule Of Long Term Debt [Abstract]

Schedule Of Long-term Debt

LONG-TERM DEBT
(Dollars in millions)
		December 31,
		2014		2013
SDG&E
First mortgage bonds:
	5.3% November 15, 2015	$	250	$	250
	1.65% July 1, 2018(1)		161		161
	3% August 15, 2021		350		350
	3.6% September 1, 2023		450		450
	6% June 1, 2026		250		250
	5% to 5.25% December 1, 2027(1)		150		150
	5.875% January and February 2034(1)		176		176
	5.35% May 15, 2035		250		250
	6.125% September 15, 2037		250		250
	4% May 1, 2039(1)		75		75
	6% June 1, 2039		300		300
	5.35% May 15, 2040		250		250
	4.5% August 15, 2040		500		500
	3.95% November 15, 2041		250		250
	4.3% April 1, 2042		250		250
			3,912		3,912
Other long-term debt (unsecured unless otherwise noted):
	5.9% Notes June 1, 2014		―		15
	5.3% Notes July 1, 2021(1)		39		39
	5.5% Notes December 1, 2021(1)		60		60
	4.9% Notes March 1, 2023(1)		25		25
	5.2925% OMEC LLC loan
	payable 2013 through April 2019 (secured by plant assets)		325		335
	366-day commercial paper borrowings May 2015, classified as long-term debt
	(0.40% weighted average at December 31, 2014)		100		―
Capital lease obligations:
	Purchased-power agreements		233		176
	Other		1		3
			783		653
			4,695		4,565
Current portion of long-term debt			(365)		(29)
Unamortized discount on long-term debt			(11)		(11)
Total SDG&E			4,319		4,525

SoCalGas
First mortgage bonds:
	5.5% March 15, 2014		―		250
	5.45% April 15, 2018		250		250
	3.15% September 15, 2024		500		―
	5.75% November 15, 2035		250		250
	5.125% November 15, 2040		300		300
	3.75% September 15, 2042		350		350
	4.45% March 15, 2044		250		―
			1,900		1,400
Other long-term debt (unsecured):
	4.75% Notes May 14, 2016(1)		8		8
	5.67% Notes January 18, 2028		5		5
Capital lease obligations			1		2
			14		15
			1,914		1,415
Current portion of long-term debt			―		(252)
Unamortized discount on long-term debt			(8)		(4)
Total SoCalGas			1,906		1,159

LONG-TERM DEBT (CONTINUED)
(Dollars in millions)
		December 31,
		2014		2013
Sempra Energy
Other long-term debt (unsecured):
	2% Notes March 15, 2014		―		500
	Notes at variable rates (1.01% at December 31, 2013) March 15, 2014		―		300
	6.5% Notes June 1, 2016, including $300 at variable rates after fixed-to-floating
	rate swaps effective January 2011 (4.44% at December 31, 2014)		750		750
	2.3% Notes April 1, 2017		600		600
	6.15% Notes June 15, 2018		500		500
	9.8% Notes February 15, 2019		500		500
	2.875% Notes October 1, 2022		500		500
	4.05% Notes December 1, 2023		500		500
	3.55% Notes June 15, 2024		500		―
	6% Notes October 15, 2039		750		750
Market value adjustments for interest rate swaps, net			―		12
Build-to-suit lease(2)			75		14
Sempra Global
Other long-term debt (unsecured):
	Commercial paper borrowings at variable rates, classified as long-term debt
	(0.35% weighted average at December 31, 2013)		―		200
Sempra South American Utilities
Other long-term debt (unsecured):
Chilquinta Energía
	4.25% Series B Bonds October 30, 2030(1)		192		209
Luz del Sur
	Bank loans 5.05% to 6.41% payable 2016 through December 2018		91		70
	Notes at 4.75% to 7.41% payable 2014 through September 2029		345		292
	Other bonds at 3.77% to 4.59% payable 2020 through May 2022		10		―
Sempra Mexico
Other long-term debt (unsecured):
	Notes February 8, 2018 at variable rates (2.66% after floating-to-fixed rate cross-currency
	swaps effective February 2013)		88		100
	6.3% Notes February 2, 2023 (4.12% after cross-currency swap)		265		298
	Notes at variable rates (1.28% at December 31, 2014) August 25, 2017(1)(3)		51		―
Sempra Renewables
Other long-term debt (secured):
	Loan at variable rates payable 2014 through December 2028, including $74 at 4.54%
	after floating-to-fixed rate swaps effective June 2012 (2.74% at December 31, 2014)(1)		97		104
Sempra Natural Gas
First mortgage bonds (Mobile Gas):
	4.14% September 30, 2021		20		20
	5% September 30, 2031		42		42
Other long-term debt (unsecured unless otherwise noted):
	Notes at 2.87% to 3.51% October 1, 2016(1)		19		18
	8.45% Notes payable 2014 through December 2017, secured		16		21
	3.1% Notes December 30, 2018, secured(1)		5		5
	4.5% Notes July 1, 2024, secured(1)		77		77
	Industrial development bonds at variable rates (0.05% at December 31, 2014)
	August 1, 2037, secured(1)		55		55
			6,048		6,437
Current portion of long-term debt			(104)		(866)
Unamortized discount on long-term debt			(9)		(9)
Unamortized premium on long-term debt			7		7
Total other Sempra Energy			5,942		5,569
Total Sempra Energy Consolidated		$	12,167	$	11,253
(1)	Callable long-term debt not subject to make-whole provisions.
(2)	We discuss this lease in Note 15.
(3)	Classified as current portion of long-term debt.

Schedule Of Maturities Of Long Term Debt [Abstract]

Schedule Of Maturities Of Long-term Debt

MATURITIES OF LONG-TERM DEBT(1)
(Dollars in millions)
								Total
						Other		Sempra
						Sempra		Energy
		SDG&E		SoCalGas		Energy		Consolidated
2015		$	360	$	―	$	96	$	456
2016			10		8		845		863
2017			10		―		670		680
2018			171		250		638		1,059
2019			285		―		537		822
Thereafter			3,625		1,655		3,187		8,467
Total		$	4,461	$	1,913	$	5,973	$	12,347
(1)	Excludes capital lease obligations, build-to-suit lease and market value adjustments for interest rate swaps.

Schedule Of Callable Long Term Debt [Abstract]

Schedule Of Callable Long-term Debt

CALLABLE LONG-TERM DEBT
(Dollars in millions)
							Total
					Other		Sempra
					Sempra		Energy
	SDG&E		SoCalGas		Energy		Consolidated
Not subject to make-whole provisions	$	686	$	8	$	496	$	1,190
Subject to make-whole provisions		3,350		1,900		4,678		9,928

Schedule Of Segment Long Term Debt [Abstract]

Schedule of segment long-term debt

2014 BANK LOAN DRAWS – LUZ DEL SUR
(Dollars in millions)
	Amount at
Month issued	issuance		Interest rate	Maturity date
March	$	7	5.10%	June 22, 2015
March		14	5.35%	September 24, 2015
October		31	5.05%	July 15, 2016
October		36	6.00%	December 27, 2016

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Schedule Of Effective Income Tax Rate Reconciliation [Abstract]

Schedule Of Effective Income Tax Rate Reconciliation

RECONCILIATION OF FEDERAL INCOME TAX RATES TO EFFECTIVE INCOME TAX RATES

	Years ended December 31,
	2014		2013		2012
Sempra Energy Consolidated:
U.S. federal statutory income tax rate	35	%	35	%	35	%
Utility depreciation	5		4		6
U.S. tax on repatriation of foreign earnings	2		―		―
Income tax restructuring related to IEnova stock offerings	―		4		―
State income taxes, net of federal income tax benefit	―		1		(1)
Utility repairs expenditures	(5)		(5)		(8)
Tax credits	(4)		(3)		(7)
Self-developed software expenditures	(3)		(3)		(5)
Non-U.S. earnings taxed at lower statutory income tax rates	(2)		(3)		(4)
Allowance for equity funds used during construction	(2)		(1)		(4)
Foreign exchange and inflation effects	(2)		―		1
Adjustments to prior years’ income tax items	(1)		(3)		(1)
International tax reform	(1)		1		―
Life insurance contracts	―		―		(7)
Other, net	(2)		(1)		1
Effective income tax rate	20	%	26	%	6	%
SDG&E:
U.S. federal statutory income tax rate	35	%	35	%	35	%
State income taxes, net of federal income tax benefit	5		3		4
Depreciation	4		5		4
SONGS tax regulatory asset write-off	2		―		―
Utility repairs expenditures	(4)		(4)		(4)
Self-developed software expenditures	(3)		(3)		(3)
Allowance for equity funds used during construction	(2)		(2)		(4)
Adjustments to prior years’ income tax items	(2)		(1)		(3)
Variable interest entity	(1)		(1)		(1)
Other, net	―		(1)		(1)
Effective income tax rate	34	%	31	%	27	%
SoCalGas:
U.S. federal statutory income tax rate	35	%	35	%	35	%
Depreciation	8		6		7
State income taxes, net of federal income tax benefit	4		4		3
Utility repairs expenditures	(9)		(9)		(12)
Self-developed software expenditures	(5)		(6)		(9)
Adjustments to prior years’ income tax items	(2)		(5)		―
Allowance for equity funds used during construction	(2)		(1)		(2)
Other, net	―		―		(1)
Effective income tax rate	29	%	24	%	21	%

Schedule Of Geographic Components Of Income Before Income Taxes And Equity Earnings Of Certain Unconsolidated Subsidiaries [Abstract]

Schedule Of Geographic Components Of Income Before Income Taxes And Equity Earnings Of Certain Unconsolidated Subsidiaries [Text Block]

	Years ended December 31,
(Dollars in millions)	2014		2013		2012
U.S.	$	1,014	$	941	$	442
Non-U.S.		510		489		501
Total	$	1,524	$	1,430	$	943

Schedule Of Components Of Income Tax Expense [Abstract]

Schedule Of Components Of Income Tax Expense

INCOME TAX EXPENSE (BENEFIT)
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012
Sempra Energy Consolidated:
Current:
U.S. Federal	$	(10)	$	(70)	$	(36)
U.S. State		(7)		(5)		(6)
Non-U.S.		171		107		144
Total		154		32		102
Deferred:
U.S. Federal		237		275		(63)
U.S. State		4		15		3
Non-U.S.		(91)		48		20
Total		150		338		(40)
Deferred investment tax credits		(4)		(4)		(3)
Total income tax expense	$	300	$	366	$	59
SDG&E:
Current:
U.S. Federal	$	(5)	$	9	$	(109)
U.S. State		52		11		14
Total		47		20		(95)
Deferred:
U.S. Federal		220		149		255
U.S. State		5		24		30
Total		225		173		285
Deferred investment tax credits		(2)		(2)		―
Total income tax expense	$	270	$	191	$	190
SoCalGas:
Current:
U.S. Federal	$	2	$	4	$	(73)
U.S. State		7		(5)		24
Total		9		(1)		(49)
Deferred:
U.S. Federal		117		103		136
U.S. State		15		16		(6)
Total		132		119		130
Deferred investment tax credits		(2)		(2)		(2)
Total income tax expense	$	139	$	116	$	79

Schedule Of Components Of Deferred Tax Assets And Liabilities [Abstract]

Schedule Of Components Of Deferred Tax Assets And Liabilities

DEFERRED INCOME TAXES FOR SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		December 31,
		2014		2013
Deferred income tax liabilities:
Differences in financial and tax bases of depreciable and amortizable assets		$	4,074	$	3,951
Regulatory balancing accounts			915		663
Property taxes			57		50
Differences in financial and tax bases of partnership interests(1)			650		256
Other deferred income tax liabilities			53		95
Total deferred income tax liabilities			5,749		5,015
Deferred income tax assets:
Tax credits			276		105
Equity losses			40		16
Net operating losses			1,908		2,023
Compensation-related items			244		128
Postretirement benefits			433		264
Other deferred income tax assets			97		22
State income taxes			19		30
Litigation and other accruals not yet deductible			73		20
Deferred income tax assets before valuation allowances			3,090		2,608
Less: valuation allowances			39		96
Total deferred income tax assets			3,051		2,512
Net deferred income tax liability(2)		$	2,698	$	2,503
(1)	Amounts primarily represent differences in financial and tax bases of depreciable and amortizable assets within our partnerships.
(2)	Our policy is to show deferred income taxes of VIEs on a net basis, including valuation allowances. See table “Amounts Associated with Otay Mesa VIE” in Note 1 for further information.

DEFERRED INCOME TAXES FOR SDG&E AND SOCALGAS
(Dollars in millions)
		SDG&E				SoCalGas
		December 31,				December 31,
		2014		2013		2014		2013
Deferred income tax liabilities:
Differences in financial and tax bases of
utility plant and other assets		$	2,181	$	2,040	$	1,194	$	1,045
Regulatory balancing accounts			441		411		481		265
Property taxes			39		36		18		16
Other			5		28		10		6
Total deferred income tax liabilities			2,666		2,515		1,703		1,332
Deferred income tax assets:
Net operating losses			297		440		64		65
Postretirement benefits			85		57		261		126
Compensation-related items			8		13		40		38
State income taxes			27		22		11		10
Litigation and other accruals not yet deductible			39		45		23		27
Other			36		20		39		28
Total deferred income tax assets			492		597		438		294
Net deferred income tax liability(1)		$	2,174	$	1,918	$	1,265	$	1,038
(1)	Our policy is to show deferred income taxes of VIEs on a net basis, including valuation allowances. See table “Amounts Associated with Otay Mesa VIE” in Note 1 for further information.

NET DEFERRED INCOME TAX LIABILITY
(Dollars in millions)
	Sempra Energy
	Consolidated				SDG&E				SoCalGas
	2014		2013		2014		2013		2014		2013
Current (asset) liability	$	(305)	$	(301)	$	53	$	(103)	$	53	$	45
Noncurrent liability		3,003		2,804		2,121		2,021		1,212		993
Total	$	2,698	$	2,503	$	2,174	$	1,918	$	1,265	$	1,038

Income Tax Uncertainties [Abstract]

Summary of Income Tax Contingencies

SUMMARY OF UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012
Sempra Energy Consolidated:
Total	$	117	$	90	$	82
Of the total, amounts related to tax positions that,
if recognized in future years, would
decrease the effective tax rate	$	(114)	$	(86)	$	(81)
increase the effective tax rate		21		19		16
SDG&E:
Total	$	14	$	17	$	12
Of the total, amounts related to tax positions that,
if recognized in future years, would
decrease the effective tax rate	$	(11)	$	(14)	$	(12)
increase the effective tax rate		6		11		12
SoCalGas:
Total	$	19	$	13	$	5
Of the total, amounts related to tax positions that,
if recognized in future years, would
decrease the effective tax rate	$	(19)	$	(13)	$	(5)
increase the effective tax rate		15		8		4

RECONCILIATION OF UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
	2014		2013		2012
Sempra Energy Consolidated:
Balance as of January 1	$	90	$	82	$	72
Increase in prior period tax positions		37		26		2
Decrease in prior period tax positions		―		(24)		(1)
Increase in current period tax positions		5		7		10
Settlements with taxing authorities		(15)		(1)		(1)
Balance as of December 31	$	117	$	90	$	82
SDG&E:
Balance as of January 1	$	17	$	12	$	7
Increase in prior period tax positions		2		7		1
Decrease in prior period tax positions		―		(4)		―
Increase in current period tax positions		―		2		4
Settlements with taxing authorities		(5)		―		―
Balance as of December 31	$	14	$	17	$	12
SoCalGas:
Balance as of January 1	$	13	$	5	$	―
Increase in prior period tax positions		2		4		―
Increase in current period tax positions		4		5		5
Settlements with taxing authorities		―		(1)		―
Balance as of December 31	$	19	$	13	$	5

INTEREST AND PENALTIES ASSOCIATED WITH UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
	Interest and penalties						Accrued interest and penalties
	Years ended December 31,						December 31,
	2014		2013		2012		2014		2013
Sempra Energy Consolidated:
Interest (income) expense	$	(4)	$	1	$	―	$	―	$	4
Penalties		(3)		―		―		―		3
SDG&E:
Interest (income) expense	$	(1)	$	―	$	―	$	―	$	1
SoCalGas:
Interest income	$	―	$	(1)	$	―	$	―	$	―

Summary Of Positions For Which Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Abstract]

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

POSSIBLE DECREASES IN UNRECOGNIZED INCOME TAX BENEFITS WITHIN 12 MONTHS
(Dollars in millions)
	At December 31,
	2014		2013		2012
Sempra Energy Consolidated:
Expiration of statutes of limitations on tax assessments	$	―	$	(7)	$	(7)
Potential resolution of audit issues with various
U.S. federal, state and local and non-U.S. taxing authorities		(61)		(63)		(10)
	$	(61)	$	(70)	$	(17)
SDG&E:
Potential resolution of audit issues with various
U.S. federal, state and local and non-U.S. taxing authorities	$	(9)	$	(14)	$	(5)
SoCalGas:
Potential resolution of audit issues with various
U.S. federal, state and local and non-U.S. taxing authorities	$	(15)	$	(11)	$	(4)

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2014

Schedule Of Defined Benefit Plans Change In Benefit Obligation And Fair Value Of Plan Assets [Abstract]

Schedule Of Defined Benefit Plans, Change In Benefit Obligation And Fair Value Of Plan Assets

PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension benefits				Other postretirementbenefits
	2014		2013		2014		2013
CHANGE IN PROJECTED BENEFIT OBLIGATION
Net obligation at January 1	$	3,459	$	3,804	$	973	$	1,115
Service cost		101		109		24		28
Interest cost		161		148		49		44
Contributions from plan participants		―		―		17		16
Actuarial loss (gain)		441		(371)		105		(177)
Benefit payments		(217)		(293)		(58)		(55)
Plan amendments		4		67		1		(3)
Special termination benefits		―		―		5		5
Settlements and curtailments		(110)		(5)		(1)		―
Net obligation at December 31		3,839		3,459		1,115		973

CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1		2,789		2,558		1,012		873
Actual return on plan assets		217		396		67		151
Employer contributions		128		133		16		27
Contributions from plan participants		―		―		17		16
Benefit payments		(217)		(293)		(58)		(55)
Settlements		(110)		(5)		―		―
Fair value of plan assets at December 31		2,807		2,789		1,054		1,012
Funded status at December 31	$	(1,032)	$	(670)	$	(61)	$	39
Net recorded (liability) asset at December 31	$	(1,032)	$	(670)	$	(61)	$	39

PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
SAN DIEGO GAS & ELECTRIC COMPANY
(Dollars in millions)
	Pension benefits				Other postretirementbenefits
	2014		2013		2014		2013
CHANGE IN PROJECTED BENEFIT OBLIGATION
Net obligation at January 1	$	939	$	1,067	$	171	$	185
Service cost		30		32		7		8
Interest cost		43		41		9		8
Contributions from plan participants		―		―		6		6
Actuarial loss (gain)		101		(66)		15		(19)
Benefit payments		(25)		(89)		(13)		(12)
Special termination benefits		―		―		5		2
Settlements		(87)		(4)		―		―
Transfer of liability from (to) other plans		10		(42)		―		(7)
Net obligation at December 31		1,011		939		200		171

CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1		819		781		146		126
Actual return on plan assets		63		117		11		18
Employer contributions		56		51		14		14
Contributions from plan participants		―		―		6		6
Benefit payments		(25)		(89)		(13)		(12)
Settlements		(87)		(4)		―		―
Transfer of assets from (to) other plans		2		(37)		―		(6)
Fair value of plan assets at December 31		828		819		164		146
Funded status at December 31	$	(183)	$	(120)	$	(36)	$	(25)
Net recorded liability at December 31	$	(183)	$	(120)	$	(36)	$	(25)

PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
SOUTHERN CALIFORNIA GAS COMPANY
(Dollars in millions)
	Pension benefits				Other postretirementbenefits
	2014		2013		2014		2013
CHANGE IN PROJECTED BENEFIT OBLIGATION
Net obligation at January 1	$	2,110	$	2,299	$	753	$	873
Service cost		60		67		16		17
Interest cost		100		90		38		34
Contributions from plan participants		―		―		11		10
Actuarial loss (gain)		300		(285)		90		(151)
Benefit payments		(163)		(169)		(43)		(40)
Plan amendments		―		66		1		1
Special termination benefits		―		―		―		2
Settlements		(10)		―		―		―
Transfer of liability from other plans		1		42		―		7
Net obligation at December 31		2,398		2,110		866		753

CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1		1,758		1,581		848		732
Actual return on plan assets		138		250		54		131
Employer contributions		39		59		―		9
Contributions from plan participants		―		―		11		10
Benefit payments		(163)		(169)		(43)		(40)
Settlements		(10)		―		―		―
Transfer of assets from other plans		1		37		―		6
Fair value of plan assets at December 31		1,763		1,758		870		848
Funded status at December 31	$	(635)	$	(352)	$	4	$	95
Net recorded (liability) asset at December 31	$	(635)	$	(352)	$	4	$	95

Schedule Of Defined Benefit Plans Amounts Recognized In Balance Sheet [Abstract]

Schedule Of Defined Benefit Plans, Amounts Recognized In Balance Sheet

PENSION AND OTHER POSTRETIREMENT BENEFIT OBLIGATIONS, NET OF PLAN ASSETS AT DECEMBER 31
(Dollars in millions)
	Pension benefits				Other postretirementbenefits
	2014		2013		2014		2013
Sempra Energy Consolidated:
Noncurrent assets	$	―	$	―	$	4	$	95
Current liabilities		(33)		(59)		―		―
Noncurrent liabilities		(999)		(611)		(65)		(56)
Net recorded (liability) asset	$	(1,032)	$	(670)	$	(61)	$	39
SDG&E:
Current liabilities	$	(3)	$	(13)	$	―	$	―
Noncurrent liabilities		(180)		(107)		(36)		(25)
Net recorded liability	$	(183)	$	(120)	$	(36)	$	(25)
SoCalGas:
Noncurrent assets	$	―	$	―	$	4	$	95
Current liabilities		(2)		(13)		―		―
Noncurrent liabilities		(633)		(339)		―		―
Net recorded (liability) asset	$	(635)	$	(352)	$	4	$	95

Schedule Of Defined Benefit Plans Amounts In Accumulated Other Comprehensive Income [Abstract]

Schedule Of Defined Benefit Plans, Amounts In Accumulated Other Comprehensive Income

AMOUNTS IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
	Pension benefits				Other postretirementbenefits
	2014		2013		2014		2013
Sempra Energy Consolidated:
Net actuarial loss	$	(82)	$	(73)	$	(1)	$	―
Prior service credit		(2)		―		―		―
Total	$	(84)	$	(73)	$	(1)	$	―
SDG&E:
Net actuarial loss	$	(13)	$	(10)
Prior service credit		1		1
Total	$	(12)	$	(9)
SoCalGas:
Net actuarial loss	$	(5)	$	(5)
Prior service credit		1		1
Total	$	(4)	$	(4)

Schedule Of Defined Benefit Plans Accumulated Benefit Obligation [Abstract]

Schedule Of Defined Benefit Plans, Accumulated Benefit Obligation

ACCUMULATED BENEFIT OBLIGATION
(Dollars in millions)
	Sempra Energy Consolidated				SDG&E				SoCalGas
	2014		2013		2014		2013		2014		2013
Accumulated benefit obligation	$	3,555	$	3,254	$	978	$	923	$	2,182	$	1,944

Schedule Of Defined Benefit Plans Pension Plans With Benefit Obligations In Excess Of Plan Assets [Abstract]

Schedule Of Defined Benefit Plans, Pension Plans With Benefit Obligations In Excess Of Plan Assets

OBLIGATIONS OF FUNDED PENSION PLANS
(Dollars in millions)
	2014		2013
Sempra Energy Consolidated:
Projected benefit obligation	$	3,592	$	3,212
Accumulated benefit obligation		3,343		3,027
Fair value of plan assets		2,807		2,789
SDG&E:
Projected benefit obligation	$	964	$	899
Accumulated benefit obligation		937		886
Fair value of plan assets		828		819
SoCalGas:
Projected benefit obligation	$	2,379	$	2,085
Accumulated benefit obligation		2,166		1,920
Fair value of plan assets		1,763		1,758

Schedule Of Defined Benefit Plans Net Periodic Benefit Cost And Amounts Recognized In Other Comprehensive Income [Abstract]

Schedule Of Defined Benefit Plans, Net Periodic Benefit Cost and Amounts Recognized in Other Comprehensive Income

NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OTHER COMPREHENSIVE INCOME
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2014		2013		2012		2014		2013		2012
NET PERIODIC BENEFIT COST
Service cost	$	101	$	109	$	90	$	24	$	28	$	25
Interest cost		161		148		162		49		44		52
Expected return on assets		(171)		(162)		(155)		(63)		(58)		(53)
Amortization of:
Prior service cost (credit)		11		4		3		(5)		(4)		(4)
Actuarial loss		18		54		47		―		7		12
Settlement and curtailment charges		31		2		8		(1)		―		―
Special termination benefits		―		―		―		5		5		―
Regulatory adjustment		(31)		(20)		(29)		6		6		7
Total net periodic benefit cost		120		135		126		15		28		39

CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS
RECOGNIZED IN OTHER COMPREHENSIVE INCOME
Net loss (gain)		38		(30)		19		1		(8)		(6)
Prior service cost		4		1		―		―		―		―
Amortization of actuarial loss		(23)		(9)		(9)		―		(1)		―
Total recognized in other comprehensive income		19		(38)		10		1		(9)		(6)
Total recognized in net periodic benefit cost and other comprehensive income	$	139	$	97	$	136	$	16	$	19	$	33

NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OTHER COMPREHENSIVE INCOME
SAN DIEGO GAS & ELECTRIC COMPANY
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2014		2013		2012		2014		2013		2012
NET PERIODIC BENEFIT COST
Service cost	$	30	$	32	$	28	$	7	$	8	$	7
Interest cost		43		41		45		9		8		9
Expected return on assets		(55)		(52)		(47)		(10)		(8)		(8)
Amortization of:
Prior service cost		2		2		2		2		4		4
Actuarial loss		4		14		14		―		―		―
Settlement charge		19		1		1		―		―		―
Special termination benefits		―		―		―		5		2		―
Regulatory adjustment		12		14		6		1		―		1
Total net periodic benefit cost		55		52		49		14		14		13

CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS
RECOGNIZED IN OTHER COMPREHENSIVE INCOME
Net loss (gain)		8		(2)		2		―		―		―
Amortization of actuarial loss		(3)		(1)		(1)		―		―		―
Total recognized in other comprehensive income		5		(3)		1		―		―		―
Total recognized in net periodic benefit cost and other comprehensive income	$	60	$	49	$	50	$	14	$	14	$	13

NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OTHER COMPREHENSIVE INCOME
SOUTHERN CALIFORNIA GAS COMPANY
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2014		2013		2012		2014		2013		2012
NET PERIODIC BENEFIT COST
Service cost	$	60	$	67	$	53	$	16	$	17	$	16
Interest cost		100		90		99		38		34		41
Expected return on assets		(104)		(98)		(96)		(51)		(48)		(44)
Amortization of:
Prior service cost (credit)		9		2		2		(8)		(8)		(7)
Actuarial loss		6		31		23		―		6		11
Settlement charge		4		―		1		―		―		―
Special termination benefits		―		―		―		―		2		―
Regulatory adjustment		(43)		(34)		(36)		5		6		5
Total net periodic benefit cost		32		58		46		―		9		22

CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS
RECOGNIZED IN OTHER COMPREHENSIVE INCOME
Net loss (gain)		5		3		(4)		―		―		―
Amortization of actuarial loss		(5)		(1)		(1)		―		―		―
Total recognized in other comprehensive income		―		2		(5)		―		―		―
Total recognized in net periodic benefit cost and other comprehensive income	$	32	$	60	$	41	$	―	$	9	$	22

Schedule Of Defined Benefit Plans Assumptions Used In Calculations [Abstract]

Schedule Of Assumptions Used [Text Block]

WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATION AT DECEMBER 31

	Pension benefits				Other postretirement benefits
	2014		2013		2014		2013
Sempra Energy Consolidated:
Discount rate	4.09	%	4.84	%	4.15	%	4.95	%
Rate of compensation increase	3.50-10.00		3.50-10.00		3.50-10.00		3.50-10.00
SDG&E:
Discount rate	4.00	%	4.69	%	4.15	%	5.00	%
Rate of compensation increase	3.50-10.00		3.50-10.00		3.50-10.00		3.50-10.00
SoCalGas:
Discount rate	4.15	%	4.94	%	4.15	%	4.95	%
Rate of compensation increase	3.50-10.00		3.50-10.00		3.50-10.00		3.50-10.00

WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE NET PERIODIC BENEFIT COST FOR YEARS ENDED DECEMBER 31

	Pension benefits						Other postretirement benefits
	2014		2013		2012		2014		2013		2012
Sempra Energy Consolidated:
Discount rate	4.85	%	4.04	%	4.40-5.05	%	4.95	%	4.09	%	4.10-5.15	%
Expected return on plan assets	7.00		7.00		7.00		6.97		6.96		6.96
Rate of compensation increase	3.50-10.00		3.50-9.50		3.50-8.50		3.50-10.00		3.50-9.50		3.50-9.50
SDG&E:
Discount rate	4.69	%	3.94	%	4.70-4.80	%	5.00	%	4.10	%	5.05	%
Expected return on plan assets	7.00		7.00		7.00		6.88		6.81		6.81
Rate of compensation increase	3.50-10.00		3.50-9.50		3.50-8.50		3.50-10.00		N/A		N/A
SoCalGas:
Discount rate	4.94	%	4.10	%	4.70-5.05	%	4.95	%	4.10	%	5.15	%
Expected return on plan assets	7.00		7.00		7.00		7.00		7.00		7.00
Rate of compensation increase	3.50-10.00		3.50-9.50		3.50-8.50		3.50-10.00		3.50-9.50		3.50-9.50

Schedule Of Defined Benefit Plans Assumed Health Care Cost Trend Rates [Abstract]

Schedule Of Health Care Cost Trend Rates [Text Block]

ASSUMED HEALTH CARE COST TREND RATES AT DECEMBER 31

		Other postretirement benefit plans(1)
		Pre-65 retirees						Retirees aged 65 years and older
		2014		2013		2012		2014		2013		2012
Health care cost trend rate assumed for next year		7.75	%	8.25	%	10.00	%	5.25	%	5.50	%	8.25	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend)		5.00	%	5.00	%	5.00	%	4.50	%	4.50	%	4.75	%
Year the rate reaches the ultimate trend		2020		2020		2020		2020		2020		2020
(1)	Excludes Mobile Gas Plan. For Mobile Gas, the health care cost trend rate assumed for next year for all retirees was 7.75 percent, 7.50 percent and 8.00 percent in 2014, 2013 and 2012, respectively; the ultimate trend was 5.00 percent in 2014, 2013 and 2012; and the year the rate reaches the ultimate trend was 2020, 2019 and 2020 in 2014, 2013 and 2012, respectively.

EFFECT OF ONE-PERCENT CHANGE IN ASSUMED HEALTH CARE COST TREND RATES
(Dollars in millions)
	Sempra Energy
	Consolidated				SDG&E				SoCalGas
	1%		1%		1%		1%		1%		1%
	Increase		Decrease		Increase		Decrease		Increase		Decrease
Effect on total of service and interest
cost components of net periodic
postretirement health care benefit cost	$	7	$	(5)	$	1	$	(1)	$	5	$	(4)
Effect on the health care component of the
accumulated other postretirement
benefit obligations		86		(75)		9		(7)		74		(65)

Schedule Of Defined Benefit Plans Fair Value Of Plan Assets By Level In Fair Value Hierarchy [Abstract]

Schedule Of Defined Benefit Plans, Fair Value Of Plan Assets By Level In Fair Value Hierarchy

FAIR VALUE MEASUREMENTS — INVESTMENT ASSETS OF PENSION PLANS
(Dollars in millions)
		Fair value at December 31, 2014
			Level 1		Level 2		Level 3		Total
SDG&E:
Equity securities:
Domestic(1)		$	307	$	―	$	―	$	307
Foreign			186		―		―		186
Domestic preferred			―		1		―		1
Foreign preferred			1		―		―		1
Registered investment companies			40		―		―		40
Fixed income securities:
U.S. Treasury securities			38		―		―		38
Domestic municipal bonds			―		11		―		11
Foreign government bonds			―		12		―		12
Domestic corporate bonds(2)			―		117		―		117
Foreign corporate bonds			―		36		―		36
Common/collective trusts(3)			―		62		―		62
Registered investment companies			―		10		―		10
Other investments(4)			―		―		4		4
Total investment assets(5)			572		249		4		825

SoCalGas:
Equity securities:
Domestic(1)			651		―		―		651
Foreign			395		―		―		395
Domestic preferred			―		3		―		3
Foreign preferred			3		1		―		4
Registered investment companies			86		―		―		86
Fixed income securities:
U.S. Treasury securities			80		―		―		80
Domestic municipal bonds			―		24		―		24
Foreign government bonds			―		25		―		25
Domestic corporate bonds(2)			―		249		―		249
Foreign corporate bonds			―		77		―		77
Common/collective trusts(3)			―		132		―		132
Registered investment companies			―		21		―		21
Other investments(4)			1		―		8		9
Total investment assets(6)			1,216		532		8		1,756

Other Sempra Energy:
Equity securities:
Domestic(1)			81		―		―		81
Foreign			49		―		―		49
Foreign preferred			―		1		―		1
Registered investment companies			10		―		―		10
Fixed income securities:
U.S. Treasury securities			9		―		―		9
Domestic municipal bonds			―		4		―		4
Foreign government bonds			―		3		―		3
Domestic corporate bonds(2)			―		30		―		30
Foreign corporate bonds			―		9		―		9
Common/collective trusts(3)			―		16		―		16
Registered investment companies			―		2		―		2
Other investments(4)			―		―		1		1
Total other Sempra Energy(7)			149		65		1		215
Total Sempra Energy Consolidated(8)		$	1,937	$	846	$	13	$	2,796
(1)	Investments in common stock of domestic corporations.
(2)	Bonds of U.S. issuers from diverse industries, primarily investment-grade.
(3)	Investments in common/collective trusts held in Sempra Energy’s Pension Master Trust.
(4)	Investments in venture capital and real estate funds, stated at net asset value, and derivative financial instruments.
(5)	Excludes cash and cash equivalents of $3 million at SDG&E.
(6)	Excludes cash and cash equivalents of $7 million at SoCalGas.
(7)	Excludes cash and cash equivalents of $1 million at Other Sempra Energy.
(8)	Excludes cash and cash equivalents of $11 million at Sempra Energy Consolidated.

FAIR VALUE MEASUREMENTS — INVESTMENT ASSETS OF PENSION PLANS
(Dollars in millions)
		Fair value at December 31, 2013
			Level 1		Level 2		Level 3		Total
SDG&E:
Equity securities:
Domestic(1)		$	317	$	―	$	―	$	317
Foreign			211		―		―		211
Foreign preferred			2		―		―		2
Registered investment companies			44		―		―		44
Fixed income securities:
U.S. Treasury securities			2		―		―		2
Domestic municipal bonds			―		11		―		11
Foreign government bonds			―		25		―		25
Domestic corporate bonds(2)			―		152		―		152
Domestic partnership bonds(2)			―		1		―		1
Foreign corporate bonds			―		55		―		55
Common/collective trusts(3)			―		25		―		25
Other investments(4)			―		―		6		6
Total investment assets(5)			576		269		6		851

SoCalGas:
Equity securities:
Domestic(1)			637		―		―		637
Foreign			423		―		―		423
Foreign preferred			4		―		―		4
Registered investment companies			89		―		―		89
Fixed income securities:
U.S. Treasury securities			4		―		―		4
Domestic municipal bonds			―		21		―		21
Foreign government bonds			―		51		―		51
Domestic corporate bonds(2)			―		306		―		306
Domestic partnership bonds(2)			―		2		―		2
Foreign corporate bonds			―		110		―		110
Common/collective trusts(3)			―		50		―		50
Other investments(4)			―		―		13		13
Total investment assets(6)			1,157		540		13		1,710

Other Sempra Energy:
Equity securities:
Domestic(1)			79		―		―		79
Foreign			52		―		―		52
Registered investment companies			11		―		―		11
Fixed income securities:
U.S. Treasury securities			1		―		―		1
Domestic municipal bonds			―		3		―		3
Foreign government bonds			―		7		―		7
Domestic corporate bonds(2)			―		38		―		38
Foreign corporate bonds			―		13		―		13
Common/collective trusts(3)			―		5		―		5
Other investments(4)			―		―		2		2
Total other Sempra Energy(7)			143		66		2		211
Total Sempra Energy Consolidated(8)		$	1,876	$	875	$	21	$	2,772
(1)	Investments in common stock of domestic corporations.
(2)	Bonds of U.S. issuers from diverse industries, primarily investment-grade.
(3)	Investments in common/collective trusts held in Sempra Energy’s Pension Master Trust.
(4)	Investments in venture capital and real estate funds, stated at net asset value, and derivative financial instruments.
(5)	Excludes cash and cash equivalents of $5 million at SDG&E and transfers payable to other plans of $37 million.
(6)	Excludes cash and cash equivalents of $11 million at SoCalGas and transfers receivable from other plans of $37 million.
(7)	Excludes cash and cash equivalents of $1 million at Other Sempra Energy.
(8)	Excludes cash and cash equivalents of $17 million at Sempra Energy Consolidated.

FAIR VALUE MEASUREMENTS — INVESTMENT ASSETS OF OTHER POSTRETIREMENT BENEFIT PLANS
(Dollars in millions)
		Fair value at December 31, 2014
			Level 1		Level 2		Level 3		Total
SDG&E:
Equity securities:
Domestic(1)		$	41	$	―	$	―	$	41
Foreign			25		―		―		25
Registered investment companies			43		―		―		43
Fixed income securities:
U.S. Treasury securities			5		―		―		5
Domestic municipal bonds(2)			―		3		―		3
Domestic corporate bonds(3)			―		16		―		16
Foreign government bonds			―		2		―		2
Foreign corporate bonds			―		5		―		5
Common/collective trusts(4)			―		8		―		8
Registered investment companies			―		16		―		16
Total investment assets			114		50		―		164

SoCalGas:
Equity securities:
Domestic(1)			133		―		―		133
Foreign			81		―		―		81
Domestic preferred			―		1		―		1
Foreign preferred			1		―		―		1
Registered investment companies			45		―		―		45
Broad market funds			―		222		―		222
Fixed income securities:
U.S. Treasury securities			16		―		―		16
Domestic municipal bonds			―		5		―		5
Domestic corporate bonds(3)			―		61		―		61
Foreign government bonds			―		5		―		5
Foreign corporate bonds			―		25		―		25
Common/collective trusts(4)			―		265		―		265
Registered investment companies			―		6		―		6
Other investments(5)			―		―		2		2
Total investment assets(6)			276		590		2		868

Other Sempra Energy:
Equity securities:
Domestic(1)			6		―		―		6
Foreign			3		―		―		3
Registered investment companies			4		―		―		4
Fixed income securities:
U.S. Treasury securities			1		―		―		1
Domestic corporate bonds(3)			―		2		―		2
Common/collective trusts(4)			―		1		―		1
Registered investment companies			―		2		―		2
Total other Sempra Energy(7)			14		5		―		19
Total Sempra Energy Consolidated(8)		$	404	$	645	$	2	$	1,051
(1)	Investments in common stock of domestic corporations.
(2)	Bonds of California municipalities held in SDG&E PBOP plan trusts.
(3)	Bonds of U.S. issuers from diverse industries, primarily investment-grade.
(4)	Investment in common/collective trusts held in PBOP plan VEBA trusts.
(5)	Investments in venture capital and real estate funds, stated at net asset value, and derivative financial instruments.
(6)	Excludes cash and cash equivalents of $2 million held in SoCalGas PBOP plan trusts.
(7)	Excludes cash and cash equivalents of $1 million held in Other Sempra Energy PBOP plan trusts.
(8)	Excludes cash and cash equivalents of $3 million at Sempra Energy Consolidated.

FAIR VALUE MEASUREMENTS — INVESTMENT ASSETS OF OTHER POSTRETIREMENT BENEFIT PLANS
(Dollars in millions)
		Fair value at December 31, 2013
			Level 1		Level 2		Level 3		Total
SDG&E:
Equity securities:
Domestic(1)		$	37	$	―	$	―	$	37
Foreign			25		―		―		25
Registered investment companies			43		―		―		43
Fixed income securities:
Domestic municipal bonds(2)			―		3		―		3
Domestic corporate bonds(3)			―		18		―		18
Foreign government bonds			―		3		―		3
Foreign corporate bonds			―		6		―		6
Common/collective trusts(4)			―		3		―		3
Registered investment companies			―		12		―		12
Other investments(5)			―		―		1		1
Total investment assets(6)			105		45		1		151

SoCalGas:
Equity securities:
Domestic(1)			128		―		―		128
Foreign			83		―		―		83
Foreign preferred			1		―		―		1
Registered investment companies			43		―		―		43
Broad market funds			―		220		―		220
Fixed income securities:
U.S. Treasury securities			1		―		―		1
Domestic municipal bonds			―		4		―		4
Domestic corporate bonds(3)			―		60		―		60
Foreign government bonds			―		10		―		10
Foreign corporate bonds			―		22		―		22
Common/collective trusts(4)			―		262		―		262
Registered investment companies			―		3		―		3
Other investments(5)			―		―		2		2
Total investment assets(7)			256		581		2		839

Other Sempra Energy:
Equity securities:
Domestic(1)			4		―		―		4
Foreign			4		―		―		4
Registered investment companies			4		―		―		4
Fixed income securities:
Domestic corporate bonds(3)			―		3		―		3
Foreign government bonds			―		1		―		1
Foreign corporate bonds			―		1		―		1
Registered investment companies			―		1		―		1
Total other Sempra Energy			12		6		―		18
Total Sempra Energy Consolidated(8)		$	373	$	632	$	3	$	1,008
(1)	Investments in common stock of domestic corporations.
(2)	Bonds of California municipalities held in SDG&E PBOP plan trusts.
(3)	Bonds of U.S. issuers from diverse industries, primarily investment-grade.
(4)	Investment in common/collective trusts held in PBOP plan VEBA trusts.
(5)	Investments in venture capital and real estate funds, stated at net asset value, and derivative financial instruments.
(6)	Excludes cash and cash equivalents of $1 million held in SDG&E PBOP plan trusts and transfers payable to other plans of $6 million.
(7)	Excludes cash and cash equivalents of $3 million held in SoCalGas PBOP plan trusts and transfers receivable from other plans of $6 million.
(8)	Excludes cash and cash equivalents of $1 million and $3 million held in SDG&E and SoCalGas PBOP plan trusts, respectively.

Schedule Of Defined Benefit Plans Level 3 Investment Plan Assets [Abstract]

Schedule Of Defined Benefit Plans, Level 3 Investment Plan Assets

LEVEL 3 INVESTMENT ASSETS
(Dollars in millions)
	Pension plans								Other postretirement benefit plans
	Level 3 investment assets				% of total investment assets				Level 3 investment assets				% of total investment assets
	2014		2013		2014		2013		2014		2013		2014		2013
SDG&E	$	4	$	6	―	%	1	%	$	―	$	1	―	%	1	%
SoCalGas		8		13	―		1			2		2	―		―
All other		1		2	―		1			―		―	―		―
Sempra Energy Consolidated	$	13	$	21	―		1		$	2	$	3	―		―

Schedule Of Defined Benefit Plans Level 3 Reconciliations [Abstract]

Schedule of Effect of Significant Unobservable Inputs Changes in Plan Assets [Text Block]

LEVEL 3 RECONCILIATIONS
(Dollars in millions)
	Private equity funds
		SDG&E		SoCalGas		All other		Sempra EnergyConsolidated
PENSION PLANS
Balance at January 1, 2013	$	6	$	13	$	2	$	21
Realized gains		1		2		―		3
Unrealized losses		(1)		(1)		―		(2)
Sales		―		(1)		―		(1)
Balance at December 31, 2013		6		13		2		21
Realized gains		1		2		―		3
Unrealized losses		(1)		(2)		―		(3)
Sales		(2)		(5)		(1)		(8)
Balance at December 31, 2014	$	4	$	8	$	1	$	13
OTHER POSTRETIREMENT BENEFIT PLANS
Balance at January 1 and December 31, 2013	$	1	$	2	$	―	$	3
Unrealized losses		(1)		―		―		(1)
Balance at December 31, 2014	$	―	$	2	$	―	$	2

Schedule Of Defined Benefit Plans Estimated Future Employer Contributions In Next Fiscal Year [Abstract]

Schedule Of Defined Benefit Plans, Estimated Future Employer Contributions In Next Fiscal Year

Schedule Of Defined Benefit Plans Estimated Future Benefit Payments [Abstract]

Schedule Of Expected Benefit Payments [Text Block]

EXPECTED BENEFIT PAYMENTS
(Dollars in millions)
	Sempra Energy Consolidated				SDG&E				SoCalGas
			Other				Other				Other
	Pension		postretirement		Pension		postretirement		Pension		postretirement
	benefits		benefits		benefits		benefits		benefits		benefits
2015	$	349	$	50	$	92	$	9	$	215	$	39
2016		333		55		86		10		211		42
2017		321		58		87		11		205		45
2018		313		63		83		11		200		48
2019		301		66		80		12		190		50
2020-2024		1,311		346		360		64		813		264

Schedule Of Defined Benefit Plans Contributions To Savings Plans [Abstract]

Schedule Of Defined Benefit Plans, Contributions To Savings Plans

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2014

Schedule Of Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Abstract]

Schedule Of Share-based Compensation Expense

SHARE-BASED COMPENSATION EXPENSE ― SEMPRA ENERGY CONSOLIDATED
(Dollars in millions, except per share amounts)
	Years ended December 31,
	2014		2013		2012
Share-based compensation expense, before income taxes	$	46	$	38	$	40
Income tax benefit		(18)		(15)		(16)
Share-based compensation expense, net of income taxes	$	28	$	23	$	24

Net share-based compensation expense, per common share
Basic	$	0.11	$	0.09	$	0.10
Diluted	$	0.11	$	0.09	$	0.10

SHARE-BASED COMPENSATION EXPENSE ― SDG&E AND SOCALGAS
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012
SDG&E:
Compensation expense	$	8	$	8	$	8
Capitalized compensation cost		3		3		3
SoCalGas:
Compensation expense	$	8	$	8	$	7
Capitalized compensation cost		2		1		1

Schedule Of Non Qualified Stock Options [Abstract]

Schedule Of Non-qualified Stock Options

NON-QUALIFIED STOCK OPTIONS

					Weighted-
			Weighted-		average
	Shares		average		remaining		Aggregate
	under		exercise		contractual term		intrinsic value
	option		price		(in years)		(in millions)
Outstanding at December 31, 2013		1,459,145	$	53.18
Exercised		(699,783)	$	52.48
Forfeited/canceled		(1,950)	$	45.36
Outstanding at December 31, 2014		757,412	$	53.84		3.2	$	44

Vested or expected to vest, at December 31, 2014		757,412	$	53.84		3.2	$	44
Exercisable at December 31, 2014		757,412	$	53.84		3.2	$	44

Schedule Of Restricted Stock Awards And Units Valuation Assumptions [Abstract]

Schedule Of Restricted Stock Awards And Units Valuation Assumptions

		2014		2013		2012
Risk-free rate of return		1.2	%	0.6	%	0.6	%
Annual dividend yield(1)		N/A		3.3		3.4
Stock price volatility		16		19		27
(1)	Annual dividend yield was not used in valuations performed in 2014.

Schedule Of Restricted Stock Awards [Abstract]

Schedule Of Restricted Stock Awards

RESTRICTED STOCK AWARDS

			Weighted-
			average
			grant-date
	Shares		fair value
Nonvested at December 31, 2013		17,469	$	62.43
Vested		(8,231)	$	60.87
Nonvested at December 31, 2014		9,238	$	63.81
Vested or expected to vest, at December 31, 2014		9,238	$	63.81

Schedule Of Restricted Stock Units [Abstract]

Schedule Of Restricted Stock Units

RESTRICTED STOCK UNITS

		Performance-based			Service-based
		restricted stock units			restricted stock units(2)
			Weighted-			Weighted-
			average			average
			grant-date			grant-date
		Units	fair value		Units	fair value
Nonvested at December 31, 2013		3,164,561	$	47.55	215,598	$	63.30
Granted		444,241	$	88.01	111,653	$	91.54
Vested		(720,600)	$	44.38	(21,268)	$	66.84
Forfeited		(13,260)	$	57.83	(2,746)	$	67.79
Nonvested at December 31, 2014(1)		2,874,942	$	54.55	303,237	$	73.41
Vested or expected to vest, at December 31, 2014		2,816,676	$	54.22	290,822	$	73.31
(1)	Each unit represents the right to receive one share of our common stock if applicable performance conditions are satisfied. For all performance-based restricted stock units, up to an additional 50 percent (100 percent for awards granted in 2014) of the shares represented by the units may be issued if Sempra Energy exceeds target performance conditions.
(2)	Includes restricted stock units issued in 2014 in connection with the creation of the Cameron LNG Holdings joint venture.

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Schedule Of Commodity Derivative Volumes [Abstract]

Schedule Of Commodity Derivative Volumes

NET ENERGY DERIVATIVE VOLUMES

		December 31,
Segment and Commodity		2014	2013
California Utilities:
SDG&E:
	Natural gas	55 million MMBtu	43 million MMBtu	(1)
	Congestion revenue rights	27 million MWh	33 million MWh	(2)
SoCalGas - natural gas		1 million MMBtu	2 million MMBtu

Energy-Related Businesses:
Sempra Natural Gas:
Electric power		―	1 million MWh
Natural gas		29 million MMBtu	15 million MMBtu
(1)	Million British thermal units
(2)	Megawatt hours

Schedule Of Notional Amounts Of Interest Rate Derivatives [Abstract]

Schedule Of Notional Amounts of Interest Rate Derivatives Table

INTEREST RATE DERIVATIVES
(Dollars in millions)
		December 31, 2014			December 31, 2013
		Notional debt		Maturities	Notional debt		Maturities
Sempra Energy Consolidated
	Cash flow hedges(1)	$	399	2015-2028	$	413	2014-2028
	Fair value hedges		300	2016		300	2016
SDG&E
	Cash flow hedge(1)		325	2019		335	2019
(1)	Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE.

Schedule Of Derivative Instruments In Statement Of Financial Position Fair Value [Abstract]

Schedule Of Derivative Instruments on the Consolidated Balance Sheets

DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
		December 31, 2014
									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(1)		Sundry		derivatives(2)		derivatives
Sempra Energy Consolidated:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments(3)		$	10	$	3	$	(17)	$	(109)
Commodity contracts not subject to rate recovery			25		―		―		―
Derivatives not designated as hedging instruments:
Interest rate instruments			8		27		(7)		(22)
Commodity contracts not subject to rate recovery			143		32		(135)		(29)
Associated offsetting commodity contracts			(129)		(27)		129		27
Associated offsetting cash collateral			(11)		―		―		―
Commodity contracts subject to rate recovery			36		76		(36)		(20)
Associated offsetting commodity contracts			(3)		(1)		3		1
Associated offsetting cash collateral			―		―		23		13
Net amounts presented on the balance sheet			79		110		(40)		(139)
Additional cash collateral for commodity contracts
subject to rate recovery			14		―		―		―
Total(4)		$	93	$	110	$	(40)	$	(139)
SDG&E:
Derivatives designated as hedging instruments:
Interest rate instruments(3)		$	―	$	―	$	(16)	$	(31)
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery			32		76		(32)		(20)
Associated offsetting commodity contracts			―		(1)		―		1
Associated offsetting cash collateral			―		―		23		13
Net amounts presented on the balance sheet			32		75		(25)		(37)
Additional cash collateral for commodity contracts
subject to rate recovery			12		―		―		―
Total(4)		$	44	$	75	$	(25)	$	(37)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery		$	4	$	―	$	(4)	$	―
Associated offsetting commodity contracts			(3)		―		3		―
Net amounts presented on the balance sheet			1		―		(1)		―
Additional cash collateral for commodity contracts
subject to rate recovery			2		―		―		―
Total		$	3	$	―	$	(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.
(4)	Normal purchase contracts previously measured at fair value are excluded.

DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
		December 31, 2013
									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(1)		Sundry		derivatives(2)		derivatives
Sempra Energy Consolidated:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments(3)		$	14	$	12	$	(18)	$	(75)
Derivatives not designated as hedging instruments:
Interest rate instruments			8		22		(7)		(17)
Commodity contracts not subject to rate recovery			47		7		(51)		(5)
Associated offsetting commodity contracts			(43)		(5)		43		5
Associated offsetting cash collateral			―		―		1		―
Commodity contracts subject to rate recovery			35		72		(10)		(8)
Associated offsetting commodity contracts			(3)		(2)		3		2
Net amounts presented on the balance sheet			58		106		(39)		(98)
Additional cash collateral for commodity contracts
not subject to rate recovery			17		―		―		―
Additional cash collateral for commodity contracts
subject to rate recovery			31		―		―		―
Total(4)		$	106	$	106	$	(39)	$	(98)
SDG&E:
Derivatives designated as hedging instruments:
Interest rate instruments(3)		$	―	$	―	$	(16)	$	(39)
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery			34		72		(9)		(8)
Associated offsetting commodity contracts			(3)		(2)		3		2
Net amounts presented on the balance sheet			31		70		(22)		(45)
Additional cash collateral for commodity contracts
not subject to rate recovery			1		―		―		―
Additional cash collateral for commodity contracts
subject to rate recovery			29		―		―		―
Total(4)		$	61	$	70	$	(22)	$	(45)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery		$	1	$	―	$	(1)	$	―
Net amounts presented on the balance sheet			1		―		(1)		―
Additional cash collateral for commodity contracts
not subject to rate recovery			2		―		―		―
Additional cash collateral for commodity contracts
subject to rate recovery			2		―		―		―
Total		$	5	$	―	$	(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.
(4)	Normal purchase contracts previously measured at fair value are excluded.

Schedule Of Derivative Instruments Gain Loss In Statement Of Financial Performance [Abstract]

Schedule Of Fair Value Hedge Impact on the Consolidated Statements of Operations

FAIR VALUE HEDGE IMPACT ON THE CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
			Gain (loss) on derivatives recognized in earnings
			Years ended December 31,
		Location	2014		2013		2012
Sempra Energy Consolidated:
	Interest rate instruments	Interest Expense	$	8	$	8	$	6
	Interest rate instruments	Other Income, Net		(3)		(7)		3
	Total(1)		$	5	$	1	$	9
(1)	There were gains of $9 million from hedge ineffectiveness in 2014. All other 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 and recorded in Other Income, Net. There was no hedge ineffectiveness in 2013 and 2012.

Schedule Of Cash Flow Hedges Impact On Statements Of Operations [Abstract]

Schedule Of Cash Flow Hedge Impact on the Consolidated Statements Of Operations

CASH FLOW HEDGE IMPACT ON THE CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
		Pretax gain (loss)							Gain (loss) reclassified
		recognized in OCI							from AOCI into earnings
		(effective portion)							(effective portion)
		Years ended December 31,							Years ended December 31,
			2014		2013		2012	Location		2014		2013		2012
Sempra Energy Consolidated:
	Interest rate and foreign
	exchange instruments(1)	$	(24)	$	1	$	(22)	Interest Expense	$	(21)	$	(11)	$	(9)
								Gain on Sale of Equity
	Interest rate instruments		3		―		―	Interests and Assets		3		―		―
								Equity Earnings (Losses),
	Interest rate instruments		(127)		15		(10)	Before Income Tax		(10)		(10)		(6)
	Commodity contracts not							Revenues: Energy-Related
	subject to rate recovery		19		(4)		(1)	Businesses		8		1		―
	Total(2)	$	(129)	$	12	$	(33)		$	(20)	$	(20)	$	(15)
SDG&E:
	Interest rate instruments(1)(3)	$	(9)	$	8	$	(16)	Interest Expense	$	(11)	$	(9)	$	(5)
SoCalGas:
	Interest rate instrument(3)	$	―	$	―	$	―	Interest Expense	$	(1)	$	(1)	$	(2)
(1)	Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE.
(2)	There was $1 million, $1 million and $2 million of hedge ineffectiveness related to these cash flow hedges in 2014, 2013 and 2012, respectively.
(3)	There was negligible hedge ineffectiveness related to these cash flow hedges at SDG&E and SoCalGas in 2014, 2013 and 2012.

Schedule Of Undesignated Derivative Instruments Impact On Statements Of Operations [Abstract]

Schedule Of Undesignated Derivative Impact on the Consolidated Statements of Operations

UNDESIGNATED DERIVATIVE IMPACT ON THE CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
			Gain (loss) on derivatives recognized in earnings
			Years ended December 31,
		Location	2014		2013		2012
Sempra Energy Consolidated:
	Interest rate and foreign
	exchange instruments	Other Income, Net	$	(24)	$	17	$	10
	Foreign exchange instruments	Equity Earnings, Net of Income Tax		(5)		(4)		―
	Commodity contracts not subject	Revenues: Energy-Related
	to rate recovery	Businesses		17		(1)		7
	Commodity contracts not subject	Cost of Natural Gas, Electric
	to rate recovery	Fuel and Purchased Power		3		―		―
	Commodity contracts not subject
	to rate recovery	Operation and Maintenance		(4)		1		1
	Commodity contracts subject	Cost of Electric Fuel
	to rate recovery	and Purchased Power		(10)		53		69
	Commodity contracts subject
	to rate recovery	Cost of Natural Gas		―		―		(2)
	Total		$	(23)	$	66	$	85
SDG&E:
	Commodity contracts not subject
	to rate recovery	Operation and Maintenance	$	(1)	$	―	$	―
	Commodity contracts subject	Cost of Electric Fuel
	to rate recovery	and Purchased Power		(10)		53		69
	Total		$	(11)	$	53	$	69
SoCalGas:
	Commodity contracts not subject
	to rate recovery	Operation and Maintenance	$	(2)	$	1	$	1
	Commodity contracts subject
	to rate recovery	Cost of Natural Gas		―		―		(2)
	Total		$	(2)	$	1	$	(1)

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Schedule Of Recurring Fair Value Assets Liabilities [Abstract]

Schedule Of Recurring Fair Value Measures

RECURRING FAIR VALUE MEASURES ― SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		Fair value at December 31, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	655	$	―	$	―	$	―	$	655
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			62		47		―		―		109
Municipal bonds			―		129		―		―		129
Other securities			―		207		―		―		207
Total debt securities			62		383		―		―		445
Total nuclear decommissioning trusts(2)			717		383		―		―		1,100
Interest rate and foreign exchange instruments			―		48		―		―		48
Commodity contracts not subject to rate recovery			28		16		―		(11)		33
Commodity contracts subject to rate recovery			―		1		107		14		122
Total		$	745	$	448	$	107	$	3	$	1,303

Liabilities:
Interest rate and foreign exchange instruments		$	―	$	155	$	―	$	―	$	155
Commodity contracts not subject to rate recovery			3		9		―		(4)		8
Commodity contracts subject to rate recovery			―		52		―		(36)		16
Total		$	3	$	216	$	―	$	(40)	$	179

		Fair value at December 31, 2013
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	614	$	―	$	―	$	―	$	614
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			59		58		―		―		117
Municipal bonds			―		111		―		―		111
Other securities			―		153		―		―		153
Total debt securities			59		322		―		―		381
Total nuclear decommissioning trusts(2)			673		322		―		―		995
Interest rate and foreign exchange instruments			―		56		―		―		56
Commodity contracts not subject to rate recovery			1		5		―		17		23
Commodity contracts subject to rate recovery			2		1		99		31		133
Total		$	676	$	384	$	99	$	48	$	1,207

Liabilities:
Interest rate and foreign exchange instruments		$	―	$	117	$	―	$	―	$	117
Commodity contracts not subject to rate recovery			4		8		―		(5)		7
Commodity contracts subject to rate recovery			―		13		―		―		13
Total		$	4	$	138	$	―	$	(5)	$	137
(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements with cash collateral, as well as cash collateral not offset.
(2)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES ― SDG&E
(Dollars in millions)
		Fair value at December 31, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	655	$	―	$	―	$	―	$	655
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			62		47		―		―		109
Municipal bonds			―		129		―		―		129
Other securities			―		207		―		―		207
Total debt securities			62		383		―		―		445
Total nuclear decommissioning trusts(2)			717		383		―		―		1,100
Commodity contracts subject to rate recovery			―		―		107		12		119
Total		$	717	$	383	$	107	$	12	$	1,219

Liabilities:
Interest rate instruments		$	―	$	47	$	―	$	―	$	47
Commodity contracts not subject to rate recovery			1		―		―		(1)		―
Commodity contracts subject to rate recovery			―		51		―		(36)		15
Total		$	1	$	98	$	―	$	(37)	$	62

		Fair value at December 31, 2013
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Nuclear decommissioning trusts
Equity securities		$	614	$	―	$	―	$	―	$	614
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies			59		58		―		―		117
Municipal bonds			―		111		―		―		111
Other securities			―		153		―		―		153
Total debt securities			59		322		―		―		381
Total nuclear decommissioning trusts(2)			673		322		―		―		995
Commodity contracts not subject to rate recovery			―		―		―		1		1
Commodity contracts subject to rate recovery			1		1		99		29		130
Total		$	674	$	323	$	99	$	30	$	1,126

Liabilities:
Interest rate instruments		$	―	$	55	$	―	$	―	$	55
Commodity contracts subject to rate recovery			―		12		―		―		12
Total		$	―	$	67	$	―	$	―	$	67
(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements with cash collateral, as well as cash collateral not offset.
(2)	Excludes cash balances and cash equivalents.

RECURRING FAIR VALUE MEASURES ― SOCALGAS
(Dollars in millions)
		Fair value at December 31, 2014
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Commodity contracts subject to rate recovery		$	―	$	1	$	―	$	2	$	3
Total		$	―	$	1	$	―	$	2	$	3

Liabilities:
Commodity contracts not subject to rate recovery		$	2	$	―	$	―	$	(2)	$	―
Commodity contracts subject to rate recovery			―		1		―		―		1
Total		$	2	$	1	$	―	$	(2)	$	1

		Fair value at December 31, 2013
			Level 1		Level 2		Level 3		Netting(1)		Total
Assets:
Commodity contracts not subject to rate recovery		$	―	$	―	$	―	$	2	$	2
Commodity contracts subject to rate recovery			1		―		―		2		3
Total		$	1	$	―	$	―	$	4	$	5

Liabilities:
Commodity contracts subject to rate recovery		$	―	$	1	$	―	$	―	$	1
Total		$	―	$	1	$	―	$	―	$	1
(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements with cash collateral, as well as cash collateral not offset.

Schedule Of Recurring Fair Value Assets Liabilities Unobservable Input Reconciliation [Abstract]

Schedule Of Recurring Fair Value Measures Level 3 Rollforward

LEVEL 3 RECONCILIATIONS
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012
Balance at January 1	$	99	$	61	$	23
Realized and unrealized gains		15		11		31
Allocated transmission instruments		19		51		58
Settlements		(26)		(24)		(51)
Balance at December 31	$	107	$	99	$	61
Change in unrealized gains or losses relating to
instruments still held at December 31	$	8	$	11	$	17

Schedule Of Fair Value Of Financial Instruments [Abstract]

Schedule Of Fair Value of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
		December 31, 2014
		Carrying		Fair Value
		amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Total long-term debt(1)(2)		$	12,347	$	―	$	12,782	$	917	$	13,699
Preferred stock of subsidiary			20		―		23		―		23
SDG&E:
Total long-term debt(2)(3)		$	4,461	$	―	$	4,563	$	425	$	4,988
SoCalGas:
Total long-term debt(4)		$	1,913	$	―	$	2,124	$	―	$	2,124
Preferred stock			22		―		25		―		25

		December 31, 2013
		Carrying		Fair Value
		amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Total long-term debt(1)(2)		$	12,022	$	―	$	11,925	$	751	$	12,676
Preferred stock of subsidiary			20		―		20		―		20
SDG&E:
Total long-term debt(2)(3)		$	4,386	$	―	$	4,226	$	335	$	4,561
SoCalGas:
Total long-term debt(4)		$	1,413	$	―	$	1,469	$	―	$	1,469
Preferred stock			22		―		22		―		22
(1)	Before reductions for unamortized discount (net of premium) of $21 million and $17 million at December 31, 2014 and 2013, respectively, and excluding build-to-suit and capital leases of $310 million and $195 million at December 31, 2014 and 2013, respectively, and commercial paper classified as long-term debt of $200 million at December 31, 2013. We discuss our long-term debt in Note 5.
(2)	Level 3 instruments include $325 million and $335 million at December 31, 2014 and 2013, respectively, related to Otay Mesa VIE.
(3)	Before reductions for unamortized discount of $11 million at December 31, 2014 and 2013, and excluding capital leases of $234 million and $179 million at December 31, 2014 and 2013, respectively.
(4)	Before reductions for unamortized discount of $8 million and $4 million at December 31, 2014 and 2013, respectively, and excluding capital leases of $1 million and $2 million at December 31, 2014 and 2013, respectively.

Schedule Of Cash Collateral Not Offset With Derivative Instruments [Abstract]

Schedule Of Fair Value of Cash Collateral Receivables Not Offset on the Consolidated Balance Sheets

	December 31,
(Dollars in millions)	2014		2013
Sempra Energy Consolidated	$	14	$	48
SDG&E		12		30
SoCalGas		2		4

Schedule Of Non Recurring Fair Value Measures [Abstract]

Schedule Of Non Recurring Fair Value Measures

NON-RECURRING FAIR VALUE MEASURES ― SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
							% of
		Estimated				Fair	Fair value
		fair				value	measure-		Range of
		value			Valuation technique	hierarchy	ment	Inputs used to develop measurement	inputs
Investment in
Energía Sierra
Juárez		$	26	(1)	Market approach	Level 2	100%	Equity sale offer price	100%
Investment in
Rockies Express		$	369	(2)	Market approach	Level 2	67%	Equity sale offer price	100%


					Probability weighted	Level 3	33%	Combined transportation rate assumption(3)	6% - 78%
					discounted cash flow			Counterparty credit risk on existing contracts	Low
								Operation and maintenance escalation rate	0% - 1%
								Forecasted interest rate on debt to be refinanced	5% - 10%
								Discount rate	8% - 10%
(1)	At measurement date of July 16, 2014. At December 31, 2014, our investment in Energía Sierra Juárez had a carrying value of $25 million, reflecting subsequent equity method activity to record distributions and earnings.
(2)	At measurement date of September 30, 2012. At December 31, 2014, our investment in Rockies Express had a carrying value of $340 million, reflecting subsequent equity method activity to record distributions and earnings.
(3)	Transportation rate beyond existing contract terms as a percentage of current mean REX rates.

PREFERRED STOCK (Tables)

12 Months Ended

Dec. 31, 2014

Preferred Stock (Tables) [Abstract]

Schedule Of Preferred Stock

PREFERRED STOCK OUTSTANDING
(Dollars in millions, except per share amounts)
	December 31,
	2014		2013
$25 par value, authorized 1,000,000 shares:
6% Series, 79,011 shares outstanding	$	3	$	3
6% Series A, 783,032 shares outstanding		19		19
SoCalGas - Total preferred stock		22		22
Less: 50,970 shares of the 6% Series outstanding owned by Pacific Enterprises		(2)		(2)
Sempra Energy - Total preferred stock of subsidiary	$	20	$	20

SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2014

Schedule Of Earnings Per Share [Abstract]

Schedule Of Earnings Per Share Computations

EARNINGS PER SHARE COMPUTATIONS AND DIVIDENDS DECLARED
(Dollars in millions, except per share amounts; shares in thousands)
	Years ended December 31,
	2014		2013		2012
Numerator:
Earnings/Income attributable to common shareholders	$	1,161	$	1,001	$	859

Denominator:
Weighted-average common shares outstanding for basic EPS		245,891		243,863		241,347
Dilutive effect of stock options, restricted stock awards and
restricted stock units		4,764		5,469		5,346
Weighted-average common shares outstanding for diluted EPS		250,655		249,332		246,693

Earnings per share:
Basic	$	4.72	$	4.10	$	3.56
Diluted	$	4.63	$	4.01	$	3.48

Dividends declared per share of common stock	$	2.64	$	2.52	$	2.40

Schedule Of Common Stock Activity [Abstract]

Schedule Of Common Stock Activity

COMMON STOCK ACTIVITY

		Years ended December 31,
			2014	2013	2012
Common shares outstanding, January 1			244,461,327	242,368,836	239,934,681
Restricted stock units vesting(1)			989,027	1,491,170	683,416
Stock options exercised			699,783	1,237,348	1,876,303
Savings plan issuance			398,042	―	―
Common stock investment plan(2)			205,203	―	―
Restricted stock issuances			―	21,121	2,580
Shares released from ESOP(3)			―	―	153,625
Shares repurchased(4)			(422,498)	(657,148)	(281,769)
Common shares outstanding, December 31			246,330,884	244,461,327	242,368,836
(1)	Includes dividend equivalents.
(2)	Participants in the Direct Stock Purchase Plan may reinvest dividends to purchase newly issued shares.
(3)	We released the last shares from the ESOP in April 2012. These shares were unallocated and therefore excluded from the computation of EPS.
(4)	From time to time, we purchase shares of our common stock from restricted stock plan participants who elect to sell a sufficient number of vesting restricted shares or units to meet minimum statutory tax withholding requirements.

Shareholder Ranking [Abstract]

Shareholder Ranking [Text Block]

Four-year cumulative total shareholder return ranking versus S&P 500 Utilities Index(1)		Number of Sempra Energy common shares received for each performance-based restricted stock unit(2)(3)
90th percentile or above (2014 awards only)		2.0
75th percentile (maximum for awards prior to 2014)		1.5
50th percentile		1.0
35th percentile or below		―
(1)	If Sempra Energy ranks at or above the 50th percentile compared to the S&P 500 Index, participants will receive a minimum of 1.0 share for each RSU.
(2)	Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are deemed reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate.
(3)	If performance falls between the tiers shown above, we calculate the payout using linear interpolation.

Four-year earnings per share compound annual growth rate		Number of Sempra Energy common shares received for each performance-based restricted stock unit(1)(2)
8.0% or above		2.0
6.7%		1.5
4.4%		1.0
3.3% or below		―
(1)	Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate.
(2)	If performance falls between the tiers shown above, we calculate the payout using linear interpolation.

NUCLEAR PLANT (Tables)

12 Months Ended

Dec. 31, 2014

Schedule Of Nuclear Decommissioning Trusts Investments [Abstract]

Schedule Of Nuclear Decommissioning Trusts Investments

NUCLEAR DECOMMISSIONING TRUSTS
(Dollars in millions)
				Gross		Gross		Estimated
				unrealized		unrealized		fair
		Cost		gains		losses		value
At December 31, 2014:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies(1)		$	103	$	6	$	―	$	109
Municipal bonds(2)			121		8		―		129
Other securities(3)			206		7		(6)		207
Total debt securities			430		21		(6)		445
Equity securities			215		444		(4)		655
Cash and cash equivalents			30		1		―		31
Total		$	675	$	466	$	(10)	$	1,131
At December 31, 2013:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies		$	116	$	3	$	(2)	$	117
Municipal bonds			110		2		(1)		111
Other securities			155		3		(5)		153
Total debt securities			381		8		(8)		381
Equity securities			207		409		(2)		614
Cash and cash equivalents			39		―		―		39
Total		$	627	$	417	$	(10)	$	1,034
(1)	Maturity dates are 2016-2060.
(2)	Maturity dates are 2015-2047.
(3)	Maturity dates are 2015-2111.

Schedule Of Sales Of Securities By Nuclear Decommissioning Trusts [Abstract]

Schedule Of Sales Of Securities By Nuclear Decommissioning Trusts

SALES OF SECURITIES
(Dollars in millions)
		Years ended December 31,
		2014		2013		2012
Proceeds from sales(1)		$	601	$	685	$	723
Gross realized gains			11		26		21
Gross realized losses			(11)		(18)		(13)
(1)	Excludes securities that are held to maturity.

CALIFORNIA UTILITIES' REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2014

Regulatory Matters (Tables) [Abstract]

Schedule of Cost of Capital Authorized

COST OF CAPITAL AND AUTHORIZED RATE STRUCTURE

SDG&E				SoCalGas
Authorized weighting	Authorized rate of recovery	Weighted authorized ROR		Authorized weighting	Authorized rate of recovery	Weighted authorized ROR
45.25%	5.00%	2.26%	Long-Term Debt	45.60%	5.77%	2.63%
2.75%	6.22%	0.17%	Preferred Stock	2.40%	6.00%	0.14%
52.00%	10.30%	5.36%	Common Equity	52.00%	10.10%	5.25%
100.00%		7.79%		100.00%		8.02%

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2014

Schedule Of Estimated Future Payments Under Natural Gas Contracts [Abstract]

Schedule Of Estimated Future Payments Under Natural Gas Contracts

FUTURE MINIMUM PAYMENTS – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		Storage and
		transportation		Natural gas(1)		Total(1)
2015		$	238	$	194	$	432
2016			256		152		408
2017			241		152		393
2018			217		121		338
2019			150		4		154
Thereafter			241		12		253
Total minimum payments		$	1,343	$	635	$	1,978
(1)	Excludes amounts related to LNG purchase agreements as discussed below.

FUTURE MINIMUM PAYMENTS – SOCALGAS
(Dollars in millions)
	Transportation		Natural gas		Total
2015	$	127	$	22	$	149
2016		128		1		129
2017		113		1		114
2018		92		1		93
2019		48		1		49
Thereafter		123		―		123
Total minimum payments	$	631	$	26	$	657

Schedule Of Payments Under Natural Gas Contracts [Abstract]

Schedule Of Payments Under Natural Gas Contracts

	Years ended December 31,
(Dollars in millions)	2014		2013		2012
Sempra Energy Consolidated	$	1,984	$	1,680	$	1,345
SoCalGas		1,735		1,464		1,222

Schedule Of Payments Under Purchased Power Contracts [Abstract]

Schedule Of Payments Under Purchased Power Contracts

		Years ended December 31,
(Dollars in millions)		2014		2013		2012
Sempra Energy Consolidated		$	1,574	$	1,377	$	1,205
SDG&E(1)			710		570		381
(1)	Excludes DWR-allocated contracts. Under an operating agreement with the DWR that expired at the end of 2013, SDG&E acted as a limited agent on behalf of the DWR in the administration of energy contracts, including natural gas procurement functions under the DWR contracts allocated to SDG&E's customers. The commodity costs associated with these contracts are not included in SDG&E's or Sempra Energy's Consolidated Statements of Operations.

Schedule Of Estimated Future Payments Under Purchased Power Contracts [Abstract]

Schedule Of Estimated Future Payments Under Purchased Power Contracts

FUTURE MINIMUM PAYMENTS – PURCHASED-POWER CONTRACTS
(Dollars in millions)
		Sempra
		Energy
		Consolidated		SDG&E
2015		$	674	$	494
2016			664		484
2017			687		503
2018			734		505
2019			734		500
Thereafter			7,363		6,318
Total minimum payments(1)		$	10,856	$	8,804
(1)	Excludes purchase agreements accounted for as capital leases and amounts related to Otay Mesa VIE, as it is consolidated by Sempra Energy and SDG&E.

Schedule Of Operating Leases Rent Expense [Abstract]

Schedule Of Operating Leases, Rent Expense

	Years ended December 31,
(Dollars in millions)	2014		2013		2012
Sempra Energy Consolidated	$	78	$	81	$	74
SDG&E		26		23		20
SoCalGas		38		31		26

Schedule Of Operating Leases Future Minimum Payments Due [Abstract]

Schedule Of Operating Leases, Future Minimum Payments Due

FUTURE MINIMUM PAYMENTS – OPERATING LEASES
(Dollars in millions)
	Sempra
	Energy
	Consolidated		SDG&E		SoCalGas
2015	$	73	$	24	$	39
2016		65		24		35
2017		64		22		35
2018		57		18		34
2019		50		16		30
Thereafter		271		75		156
Total future minimum rental commitments	$	580	$	179	$	329

Schedule Of Capital Leases Future Minimum Payments Present Value Of Net Minimum Payments [Abstract]

Schedule Of Capital Leases, Future Minimum Payments, Present Value Of Net Minimum Payments

FUTURE MINIMUM PAYMENTS – POWER PURCHASE AGREEMENTS
(Dollars in millions)
2015		$	31
2016			31
2017			31
2018			31
2019			31
Thereafter			520
Total minimum lease payments(1)			675
Less: estimated executory costs			(137)
Less: interest(2)			(305)
Present value of net minimum lease payments(3)		$	233
(1)	This amount will be recorded over the lives of the leases as Cost of Electric Fuel and Purchased Power on Sempra Energy’s and SDG&E’s Consolidated Statements of Operations. This expense will receive ratemaking treatment consistent with purchased-power costs.
(2)	Amount necessary to reduce net minimum lease payments to present value at the inception of the leases.
(3)	Includes $4 million in Current Portion of Long-Term Debt and $229 million in Long-Term Debt on Sempra Energy’s and SDG&E’s Consolidated Balance Sheets at December 31, 2014.

FUTURE MINIMUM PAYMENTS – CAPITAL LEASES
(Dollars in millions)
		Sempra
		Energy
		Consolidated		SDG&E		SoCalGas
Total minimum lease payments, all in 2015		$	2	$	1	$	1
Present value of net minimum lease payments(1)		$	2	$	1	$	1
(1)	Excludes negligible amounts of interest.

Schedule Of Environmental Remediation Costs Capitalized In Period [Abstract]

Schedule Of Environmental Remediation Costs, Capitalized In Period

CAPITAL EXPENDITURES FOR ENVIRONMENTAL ISSUES
(Dollars in millions)
		Years ended December 31,
		2014		2013		2012
Sempra Energy Consolidated(1)		$	45	$	31	$	92
SDG&E			23		13		77
SoCalGas			21		15		12
(1)	In cases of non-wholly owned affiliates, includes only our share.

Schedule Of Environmental Remediation Costs Status Of Remediation Sites [Abstract]

Schedule Of Environmental Remediation Costs, Status Of Remediation Sites

STATUS OF ENVIRONMENTAL SITES

		# Sites		# Sites
		completed(1)		in process
SDG&E
Manufactured-gas sites			3		―
Third-party waste-disposal sites			2		3
SoCalGas
Manufactured-gas sites			39		3
Third-party waste-disposal sites			5		2
(1)	There may be on-going compliance obligations for completed sites, such as regular inspections, adherence to land use covenants and water quality monitoring.

Schedule Of Environmental Loss Contingencies By Site [Abstract]

Schedule of Environmental Loss Contingencies by Site

ACCRUED LIABILITIES FOR ENVIRONMENTAL MATTERS
(Dollars in millions)
				Waste		Former fossil-		Other
		Manufactured-		disposal		fueled power		hazardous
		gas sites		sites (PRP)(1)		plants		waste sites		Total
SDG&E(2)(3)		$	―	$	0.3	$	6.1	$	0.7	$	7.1
SoCalGas(3)			23.8		0.1		―		0.1		24.0
Other			2.0		1.1		―		10.2		13.3
Total Sempra Energy		$	25.8	$	1.5	$	6.1	$	11.0	$	44.4
(1)	Sites for which we have been identified as a Potentially Responsible Party.
(2)	Does not include SDG&E’s liability for SONGS marine mitigation.
(3)	This includes $7 million at SDG&E and $24 million at SoCalGas related to hazardous waste sites subject to the Hazardous Waste Collaborative mechanism approved by the CPUC in 1994. This mechanism permits California’s IOUs, including the California Utilities, to recover in rates 90 percent of hazardous waste cleanup costs and related third-party litigation costs, and 70 percent of the related insurance-litigation expenses for certain sites. In addition, the California Utilities have the opportunity to retain a percentage of any recoveries from insurance carriers and other third parties to offset the cleanup and associated litigation costs not recovered in rates.

Schedule Of Build To Suit Lease Future Minimum Payments Due [Abstract]

Schedule Of Build To Suit Lease Future Minimum Payments Due

FUTURE MINIMUM PAYMENTS – BUILD-TO-SUIT LEASE
(Dollars in millions)
2015	$	4
2016		10
2017		10
2018		10
2019		10
Thereafter		267
Total future payments	$	311

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2014

Segment Information (Tables) [Abstract]

Schedule of Segment Reporting Information, by Segment

SEGMENT INFORMATION
(Dollars in millions)
	Years ended December 31,
	2014				2013				2012
REVENUES
SDG&E	$	4,329	39	%	$	4,066	39	%	$	3,694	38	%
SoCalGas		3,855	35			3,736	35			3,282	34
Sempra South American Utilities		1,534	14			1,495	14			1,441	15
Sempra Mexico		818	8			675	6			605	6
Sempra Renewables		35	―			82	1			68	1
Sempra Natural Gas		979	9			908	9			931	10
Adjustments and eliminations		(3)	―			(2)	―			(2)	―
Intersegment revenues(1)		(512)	(5)			(403)	(4)			(372)	(4)
Total	$	11,035	100	%	$	10,557	100	%	$	9,647	100	%
INTEREST EXPENSE
SDG&E	$	202			$	197			$	173
SoCalGas		69				69				68
Sempra South American Utilities		33				27				32
Sempra Mexico		17				17				8
Sempra Renewables		5				23				22
Sempra Natural Gas		111				116				98
All other		241				241				251
Intercompany eliminations		(124)				(131)				(159)
Total	$	554			$	559			$	493
INTEREST INCOME
SDG&E	$	―			$	1			$	―
Sempra South American Utilities		14				14				15
Sempra Mexico		4				2				2
Sempra Renewables		1				20				6
Sempra Natural Gas		115				88				55
All other		1				―				4
Intercompany eliminations		(113)				(105)				(58)
Total	$	22			$	20			$	24
DEPRECIATION AND AMORTIZATION
SDG&E	$	530	46	%	$	494	44	%	$	490	45	%
SoCalGas		431	37			383	35			362	33
Sempra South American Utilities		55	5			59	5			56	5
Sempra Mexico		64	6			63	6			62	6
Sempra Renewables		5	―			21	2			16	1
Sempra Natural Gas		61	5			81	7			93	9
All other		10	1			12	1			11	1
Total	$	1,156	100	%	$	1,113	100	%	$	1,090	100	%
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	270			$	191			$	190
SoCalGas		139				116				79
Sempra South American Utilities		58				67				78
Sempra Mexico		5				60				73
Sempra Renewables		(44)				(19)				(63)
Sempra Natural Gas		(20)				40				(157)
All other		(108)				(89)				(141)
Total	$	300			$	366			$	59

SEGMENT INFORMATION (Continued)
(Dollars in millions)
		At December 31 or for the years ended December 31,
		2014				2013				2012
EARNINGS (LOSSES)
SDG&E(2)		$	507	44	%	$	404	41	%	$	484	56	%
SoCalGas(3)			332	29			364	37			289	34
Sempra South American Utilities			172	15			153	15			164	19
Sempra Mexico			192	16			122	12			157	18
Sempra Renewables			81	7			62	6			61	7
Sempra Natural Gas			50	4			64	6			(241)	(28)
All other			(173)	(15)			(168)	(17)			(55)	(6)
Total		$	1,161	100	%	$	1,001	100	%	$	859	100	%
ASSETS
SDG&E		$	16,296	41	%	$	15,377	41	%	$	14,744	40	%
SoCalGas			10,461	26			9,147	25			9,071	25
Sempra South American Utilities			3,379	9			3,531	10			3,310	9
Sempra Mexico			3,488	9			3,246	9			2,591	7
Sempra Renewables			1,338	3			1,219	3			2,439	7
Sempra Natural Gas			6,436	16			7,200	19			5,145	14
All other			895	2			838	2			818	2
Intersegment receivables			(2,561)	(6)			(3,314)	(9)			(1,619)	(4)
Total		$	39,732	100	%	$	37,244	100	%	$	36,499	100	%
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E		$	1,100	35	%	$	978	38	%	$	1,237	42	%
SoCalGas			1,104	35			762	30			639	22
Sempra South American Utilities			174	6			200	8			183	6
Sempra Mexico			325	10			371	14			45	2
Sempra Renewables			190	6			176	7			717	24
Sempra Natural Gas			212	7			83	3			131	4
All other			18	1			2	―			4	―
Total		$	3,123	100	%	$	2,572	100	%	$	2,956	100	%
GEOGRAPHIC INFORMATION
Long-lived assets(4):
United States		$	24,183	84	%	$	22,654	84	%	$	22,698	85	%
Mexico			2,821	10			2,597	9			2,219	8
South America			1,746	6			1,784	7			1,790	7
Total		$	28,750	100	%	$	27,035	100	%	$	26,707	100	%

Revenues(5):
United States		$	8,774	79	%	$	8,478	80	%	$	7,711	80	%
South America			1,534	14			1,495	14			1,441	15
Mexico			727	7			584	6			495	5
Total		$	11,035	100	%	$	10,557	100	%	$	9,647	100	%
(1)	Revenues for reportable segments include intersegment revenues of $10 million, $69 million, $91 million and $342 million for 2014, $10 million, $70 million, $91 million and $232 million for 2013, and $8 million, $46 million, $108 million and $210 million for 2012 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.
(2)	For 2013, amount is after preferred dividends and call premium on preferred stock. For 2012, amount is after preferred dividends.
(3)	After preferred dividends.
(4)	Includes net property, plant and equipment and investments.
(5)	Amounts are based on where the revenue originated, after intercompany eliminations.

QUARTERLY FINANCIAL DATA (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Data (Tables) [Abstract]

Schedule Of Quarterly Financial Data [Text Block]

SEMPRA ENERGY
(In millions, except per share amounts)
		Quarters ended
		March 31		June 30		September 30		December 31
2014
Revenues		$	2,795	$	2,678	$	2,815	$	2,747
Expenses and other income		$	2,408	$	2,302	$	2,368	$	2,433

Net income		$	266	$	292	$	383	$	321
Earnings attributable to Sempra Energy		$	247	$	269	$	348	$	297

Basic per-share amounts(1):
Net income		$	1.09	$	1.19	$	1.56	$	1.31
Earnings attributable to Sempra Energy		$	1.01	$	1.10	$	1.41	$	1.21
Weighted average common shares outstanding			245.3		245.7		246.1		246.4

Diluted per-share amounts(1):
Net income		$	1.07	$	1.17	$	1.53	$	1.28
Earnings attributable to Sempra Energy		$	0.99	$	1.08	$	1.39	$	1.18
Weighted average common shares outstanding			249.7		250.1		250.8		251.3
2013
Revenues		$	2,650	$	2,651	$	2,551	$	2,705
Expenses and other income		$	2,298	$	2,353	$	2,119	$	2,357

Net income		$	178	$	267	$	323	$	320
Earnings attributable to Sempra Energy		$	178	$	245	$	296	$	282

Basic per-share amounts(1):
Net income		$	0.73	$	1.10	$	1.32	$	1.31
Earnings attributable to Sempra Energy		$	0.73	$	1.00	$	1.21	$	1.15
Weighted average common shares outstanding			243.3		243.6		244.1		244.4

Diluted per-share amounts(1):
Net income		$	0.72	$	1.07	$	1.29	$	1.28
Earnings attributable to Sempra Energy		$	0.72	$	0.98	$	1.19	$	1.13
Weighted average common shares outstanding			247.5		248.5		249.3		249.9
(1)	Earnings per share are computed independently for each of the quarters and therefore may not sum to the total for the year.

SDG&E
(Dollars in millions)
	Quarters ended
	March 31		June 30		September 30		December 31
2014
Operating revenues	$	987	$	1,063	$	1,233	$	1,046
Operating expenses		766		821		957		826
Operating income	$	221	$	242	$	276	$	220

Net income	$	101	$	129	$	169	$	128
Earnings attributable to noncontrolling interest		(2)		(6)		(12)		―
Earnings attributable to common shares	$	99	$	123	$	157	$	128
2013
Operating revenues	$	939	$	1,064	$	1,063	$	1,000
Operating expenses		771		939		800		774
Operating income	$	168	$	125	$	263	$	226

Net income	$	81	$	73	$	139	$	142
Losses (earnings) attributable to noncontrolling interest		11		(7)		(5)		(23)
Earnings		92		66		134		119
Call premium on preferred stock		―		―		(3)		―
Dividends on preferred stock		(1)		(1)		(2)		―
Earnings attributable to common shares	$	91	$	65	$	129	$	119

SOCALGAS
(Dollars in millions)
	Quarters ended
	March 31		June 30		September 30		December 31
2014
Operating revenues	$	1,085	$	917	$	855	$	998
Operating expenses		956		795		702		881
Operating income	$	129	$	122	$	153	$	117

Net income	$	78	$	81	$	98	$	76
Dividends on preferred stock		―		(1)		―		―
Earnings attributable to common shares	$	78	$	80	$	98	$	76
2013
Operating revenues	$	983	$	904	$	807	$	1,042
Operating expenses		900		725		652		920
Operating income	$	83	$	179	$	155	$	122

Net income	$	46	$	119	$	102	$	98
Dividends on preferred stock		―		(1)		―		―
Earnings attributable to common shares	$	46	$	118	$	102	$	98

SCHEDULE I, CONDENSED FINANCIAL INFORMATION OF PARENT (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Condensed Statements of Operations [Abstract]

Schedule of Condensed Statements of Operations [Text Block]

SEMPRA ENERGY
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
	Years ended December 31,
	2014		2013		2012

Interest income	$	―	$	42	$	83
Interest expense		(235)		(239)		(247)
Operation and maintenance		(78)		(63)		(68)
Other income, net		50		41		66
Income tax benefits		133		117		145
Loss before equity in earnings of subsidiaries		(130)		(102)		(21)
Equity in earnings of subsidiaries, net of income taxes		1,291		1,103		880
Net income/earnings	$	1,161	$	1,001	$	859

Basic earnings per common share	$	4.72	$	4.10	$	3.56
Weighted-average number of shares outstanding (thousands)		245,891		243,863		241,347

Diluted earnings per common share	$	4.63	$	4.01	$	3.48
Weighted-average number of shares outstanding (thousands)		250,655		249,332		246,693
See Notes to Condensed Financial Information of Parent.

Schedule of Condensed Balance Sheets [Abstract]

Schedule Of Condensed Balance Sheets [Text Block]

SEMPRA ENERGY
CONDENSED BALANCE SHEETS
(Dollars in millions)
	December 31,		December 31,
	2014		2013
Assets:
Cash and cash equivalents	$	3	$	6
Due from affiliates		101		132
Deferred income taxes		398		170
Other current assets		15		16
Total current assets		517		324

Investments in subsidiaries		14,557		13,866
Due from affiliates		174		802
Deferred income taxes		1,544		1,466
Other assets		631		555
Total assets	$	17,423	$	17,013

Liabilities and shareholders’ equity:
Current portion of long-term debt	$	―	$	800
Due to affiliates		338		273
Income taxes payable		93		64
Other current liabilities		271		276
Total current liabilities		702		1,413

Long-term debt		4,666		4,117
Due to affiliates		230		―
Other long-term liabilities		499		475
Shareholders’ equity		11,326		11,008
Total liabilities and shareholders’ equity	$	17,423	$	17,013
See Notes to Condensed Financial Information of Parent.

Schedule of Condensed Statements of Cash Flows [Abstract]

Schedule of Condensed Statements of Cash Flows [Text Block]

SEMPRA ENERGY
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012

Net cash used in operating activities	$	(260)	$	(131)	$	(809)

Dividends received from subsidiaries		300		50		250
Expenditures for property, plant and equipment		(15)		(1)		(1)
Purchase of trust assets		(4)		(5)		(6)
Proceeds from sales by trust		―		10		10
Capital contribution to subsidiaries		―		(6)		―
Decrease (increase) in loans to affiliates, net		627		962		(33)
Cash provided by investing activities		908		1,010		220

Common stock dividends paid		(598)		(606)		(550)
Issuances of common stock		56		62		78
Repurchases of common stock		(38)		(45)		(16)
Issuances of long-term debt		499		498		1,100
Payments on long-term debt		(800)		(650)		(8)
Increase (decrease) in loans from affiliates, net		234		(147)		―
Other		(4)		(3)		(8)
Cash (used in) provided by financing activities		(651)		(891)		596

(Decrease) increase in cash and cash equivalents		(3)		(12)		7
Cash and cash equivalents, January 1		6		18		11
Cash and cash equivalents, December 31	$	3	$	6	$	18
See Notes to Condensed Financial Information of Parent.

Schedule of Condensed Long-Term Debt [Abstract]

Schedule of Condensed Long-Term Debt [Text Block]

LONG-TERM DEBT
(Dollars in millions)
	December 31,		December 31,
	2014		2013

2% Notes March 15, 2014	$	―	$	500
Notes at variable rates (1.01% at December 31, 2013) March 15, 2014		―		300
6.5% Notes June 1, 2016, including $300 at variable rates after
fixed-to-floating rate swaps effective January 2011 (4.44% at December 31, 2014)		750		750
2.3% Notes April 1, 2017		600		600
6.15% Notes June 15, 2018		500		500
9.8% Notes February 15, 2019		500		500
2.875% Notes October 1, 2022		500		500
4.05% Notes December 1, 2023		500		500
3.55% Notes June 15, 2024		500		―
6% Notes October 15, 2039		750		750
Market value adjustments for interest rate swaps, net		―		12
Build-to-suit lease		75		14
		4,675		4,926
Current portion of long-term debt		―		(800)
Unamortized discount on long-term debt		(9)		(9)
Total long-term debt	$	4,666	$	4,117

Schedule Of Condensed Statements Of Comprehensive Income [Abstract]

Schedule Of Condensed Statements Of Comprehensive Income [Text Block]

SEMPRA ENERGY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in millions)
	Years ended December 31,
	Pretax		Income tax		Net-of-tax
	amount		benefit (expense)		amount
2014:
Net income	$	1,028	$	133	$	1,161
Other comprehensive loss:
Foreign currency translation adjustments		(193)		―		(193)
Pension and other postretirement benefits		(20)		8		(12)
Financial instruments		(106)		42		(64)
Total other comprehensive loss		(319)		50		(269)
Comprehensive income	$	709	$	183	$	892
2013:
Net income	$	884	$	117	$	1,001
Other comprehensive income:
Foreign currency translation adjustments		111		―		111
Pension and other postretirement benefits		47		(19)		28
Financial instruments		13		(4)		9
Total other comprehensive income		171		(23)		148
Comprehensive income	$	1,055	$	94	$	1,149
2012:
Net income	$	714	$	145	$	859
Other comprehensive income (loss):
Foreign currency translation adjustments		119		―		119
Pension and other postretirement benefits		(4)		2		(2)
Financial instruments		(6)		2		(4)
Total other comprehensive income		109		4		113
Comprehensive income	$	823	$	149	$	972
See Notes to Condensed Financial Information of Parent.

OTHER FINANCIAL DATA - RESTRICTED CASH (Details) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013
Presentation Of Restricted Cash [Line Items]
Restricted cash	$ 11	$ 24
Restricted Cash and Cash Equivalents, Noncurrent	29	25
Restricted cash, current and noncurrent	40	49
Restricted Cash, Construction Financing [Member] \| Sempra Mexico Segment [Member]
Presentation Of Restricted Cash [Line Items]
Restricted cash		12
Restricted Cash and Cash Equivalents, Noncurrent	18
Restricted Cash, Construction Financing [Member] \| Sempra Renewables Segment [Member]
Presentation Of Restricted Cash [Line Items]
Restricted cash	3	6
San Diego Gas and Electric Company [Member]
Presentation Of Restricted Cash [Line Items]
Restricted cash	8	6
Restricted Cash and Cash Equivalents, Noncurrent	11	25
San Diego Gas and Electric Company [Member] \| Restricted Cash, Operating Requirements [Member] \| S D G E Segment [Member]
Presentation Of Restricted Cash [Line Items]
Restricted cash	8	6
Restricted Cash and Cash Equivalents, Noncurrent	11	25
Restricted cash, current and noncurrent	$ 19	$ 31

OTHER FINANCIAL DATA - INVENTORY (Details) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013
Inventories By Inventory Type [Line Items]
Energy Related Inventory, Natural Gas in Storage	$ 246	$ 113
Energy Related Inventory, LNG	14	8
Energy Related Inventory, Materials And Supplies	136	166
Inventories	396	287
S D G E Segment [Member]
Inventories By Inventory Type [Line Items]
Energy Related Inventory, Natural Gas in Storage	8	3
Energy Related Inventory, LNG	0	0
Energy Related Inventory, Materials And Supplies	65	83
Inventories	73	86
So Cal Gas Segment [Member]
Inventories By Inventory Type [Line Items]
Energy Related Inventory, Natural Gas in Storage	155	42
Energy Related Inventory, LNG	0	0
Energy Related Inventory, Materials And Supplies	26	27
Inventories	181	69
Sempra South American Utilities Segment [Member]
Inventories By Inventory Type [Line Items]
Energy Related Inventory, Natural Gas in Storage	0	0
Energy Related Inventory, LNG	0	0
Energy Related Inventory, Materials And Supplies	33	40
Inventories	33	40
Sempra Mexico Segment [Member]
Inventories By Inventory Type [Line Items]
Energy Related Inventory, Natural Gas in Storage	0	0
Energy Related Inventory, LNG	9	3
Energy Related Inventory, Materials And Supplies	9	9
Inventories	18	12
Sempra Renewables Segment [Member]
Inventories By Inventory Type [Line Items]
Energy Related Inventory, Natural Gas in Storage	0	0
Energy Related Inventory, LNG	0	0
Energy Related Inventory, Materials And Supplies	2	2
Inventories	2	2
Sempra Natural Gas Segment [Member]
Inventories By Inventory Type [Line Items]
Energy Related Inventory, Natural Gas in Storage	83	68
Energy Related Inventory, LNG	5	5
Energy Related Inventory, Materials And Supplies	1	5
Inventories	$ 89	$ 78

OTHER FINANCIAL DATA - U.S. TREASURY GRANT RECEIVABLE (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
U.S. Treasury Grants Receivable [Line Items]
Proceeds from U.S. Treasury grants		$ 0	$ 238	$ 0
Reduction in tax benefit due to sequestration	$ 5
Sequestration of U.S. Treasury grants receivable		$ 0	$ 23	$ 0

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

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Transactions With Affiliates Disclosure [Line Items]

$ 2

Transactions With Affiliates Disclosure [Line Items]

Revenue from related parties

$ 39

$ 9

Transactions With Affiliates Disclosure [Line Items]

Revenue from related parties

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

Transactions With Affiliates Disclosure [Line Items]

Income taxes due from (to) Sempra Energy

^[1]

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

Transactions With Affiliates Disclosure [Line Items]

Income taxes due from (to) Sempra Energy

^[1]

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 [Member]

Transactions With Affiliates Disclosure [Line Items]

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

Equity Method Investee [Member]

Transactions With Affiliates Disclosure [Line Items]

Joint venture with PEMEX 3 year [Member]

$ 38

Transactions With Affiliates Disclosure [Line Items]

4.66%

ESJ joint venture [Member]

$ 44

Transactions With Affiliates Disclosure [Line Items]

6.53%

Loan to unconsolidated affiliate, accrued interest

$ 21

Repayment of loan from affiliates

$ 18

Eletrans [Member]

Transactions With Affiliates Disclosure [Line Items]

4.00%

Loan to unconsolidated affiliate, accrued interest

$ 40

$ 1

Eletrans [Member] | Utility Subsidiaries [Member]

Transactions With Affiliates Disclosure [Line Items]

Joint Venture with PEMEX 4 year [Member]

4.66%

Transactions With Affiliates Disclosure [Line Items]

Loan to unconsolidated affiliate, accrued interest

$ 79

Sempra Natural Gas Segment [Member]

Transactions With Affiliates Disclosure [Line Items]

Cost of sales related to capactity agreement

$ 78

[1]	SDG&E 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.

OTHER FINANCIAL DATA - VARIABLE INTEREST ENTITY (Details) - USD ($)

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Variable Interest Entity [Line Items]

$ 570,000,000

$ 904,000,000

$ 570,000,000

$ 904,000,000

$ 475,000,000

$ 252,000,000

11,000,000

24,000,000

11,000,000

24,000,000

396,000,000

287,000,000

396,000,000

287,000,000

293,000,000

208,000,000

293,000,000

208,000,000

4,184,000,000

3,997,000,000

4,184,000,000

3,997,000,000

29,000,000

25,000,000

29,000,000

25,000,000

561,000,000

635,000,000

561,000,000

635,000,000

25,902,000,000

25,460,000,000

25,902,000,000

25,460,000,000

39,732,000,000

37,244,000,000

39,732,000,000

37,244,000,000

36,499,000,000

Fixed-price contracts and other derivatives, current liabilities

469,000,000

1,147,000,000

469,000,000

1,147,000,000

55,000,000

649,000,000

515,000,000

649,000,000

515,000,000

5,069,000,000

4,369,000,000

5,069,000,000

4,369,000,000

Fixed-price contracts and other derivatives, noncurrent liabilities

12,167,000,000

11,253,000,000

12,167,000,000

11,253,000,000

255,000,000

228,000,000

255,000,000

228,000,000

Other noncontrolling interest

1,104,000,000

1,169,000,000

1,104,000,000

1,169,000,000

754,000,000

822,000,000

754,000,000

822,000,000

Cost of electric fuel and purchased power

39,732,000,000

37,244,000,000

39,732,000,000

37,244,000,000

Operating expenses

2,281,000,000

1,932,000,000

1,760,000,000

Operation and maintenance

2,935,000,000

2,995,000,000

2,956,000,000

Depreciation and amortization

1,156,000,000

1,113,000,000

1,090,000,000

Other income (expense), net

137,000,000

140,000,000

172,000,000

(554,000,000)

(559,000,000)

(493,000,000)

Net income

1,262,000,000

1,088,000,000

920,000,000

Variable Interest Entity [Line Items]

(100,000,000)

(79,000,000)

(55,000,000)

Earnings

297,000,000

$ 348,000,000

$ 269,000,000

$ 247,000,000

282,000,000

$ 296,000,000

$ 245,000,000

$ 178,000,000

1,161,000,000

1,001,000,000

859,000,000

Otay Mesa VIE [Member]

5,000,000

17,000,000

5,000,000

17,000,000

8,000,000

6,000,000

8,000,000

6,000,000

3,000,000

2,000,000

3,000,000

2,000,000

1,000,000

17,000,000

26,000,000

17,000,000

26,000,000

11,000,000

25,000,000

11,000,000

25,000,000

3,000,000

4,000,000

3,000,000

4,000,000

410,000,000

438,000,000

410,000,000

438,000,000

441,000,000

493,000,000

441,000,000

493,000,000

Fixed-price contracts and other derivatives, current liabilities

10,000,000

16,000,000

3,000,000

19,000,000

3,000,000

19,000,000

29,000,000

45,000,000

29,000,000

45,000,000

Fixed-price contracts and other derivatives, noncurrent liabilities

315,000,000

325,000,000

315,000,000

325,000,000

31,000,000

39,000,000

31,000,000

39,000,000

Other noncontrolling interest

6,000,000

(7,000,000)

6,000,000

(7,000,000)

60,000,000

91,000,000

60,000,000

91,000,000

Cost of electric fuel and purchased power

441,000,000

493,000,000

441,000,000

493,000,000

Operating expenses

(83,000,000)

(91,000,000)

(83,000,000)

Operation and maintenance

19,000,000

24,000,000

19,000,000

Depreciation and amortization

27,000,000

28,000,000

26,000,000

Total operating expense

(37,000,000)

(39,000,000)

(38,000,000)

Operating income

37,000,000

39,000,000

38,000,000

Other income (expense), net

(1,000,000)

17,000,000

15,000,000

11,000,000

Net income

20,000,000

24,000,000

26,000,000

Cameron LNG Holdings [Member]

(20,000,000)

(24,000,000)

(26,000,000)

Earnings

$ 0

Schedule Of Equity Method And Other Investments [Line Items]

Ownership Interests Held By Others [Line Items]

$ 1,007,000,000

^[1]

$ 0

$ 1,007,000,000

^[1]

$ 0

[1]	The carrying value of our equity method investment is $94 million higher than the underlying equity in the net assets of the investee at December 31, 2014 primarily due to guarantees as we discuss below.

OTHER FINANCIAL DATA - NONCONTROLLING INTERESTS (Details) - USD ($)
$ in Millions

Dec. 31, 2014

Dec. 31, 2013

Mar. 31, 2013

Increase to Shareholders Equity for Sale of Subsidiary shares

$ 754

$ 822

$ 135

Ownership Interests Held By Others, Southern Gas Transmission [Member]

Ownership Interests Held By Others [Line Items]

49.00%

Ownership Interests Held By Others, Bay Gas Storage Company [Member]

$ 1

Ownership Interests Held By Others [Line Items]

9.10%

Ownership Interests Held By Others, Liberty Gas Storage [Member]

$ 23

$ 22

Ownership Interests Held By Others [Line Items]

25.00%

Ownership Interests Held By Others IEnova Member [Member]

$ 14

Ownership Interests Held By Others [Line Items]

18.90%

Proceeds from sale of noncontrolling interests, net of $25 million in offering costs

$ 452

$ 442

$ 574

Ownership Interests Held By Others, Tecsur [Member]

Ownership Interests Held By Others [Line Items]

9.80%

Ownership Interests Held By Others, Luz Del Sur [Member]

$ 4

$ 3

Ownership Interests Held By Others [Line Items]

16.40%

20.20%

Ownership Interests Held By Others, Chilquinta Energia [Member]

$ 177

$ 222

Ownership Interests Held By Others [Line Items]

Percent of ownership held By others, minimum

^[1]

23.60%

24.40%

Percent of ownership held by others, maximum

^[1]

43.40%

Ownership Interests Held By Others, Otay Mesa VIE [Member]

^[1]

$ 23

$ 27

Ownership Interests Held By Others [Line Items]

100.00%

Component of Other Income, Nonoperating [Line Items]

$ 60

$ 91

[1]	Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.

OTHER FINANCIAL DATA - NONCONTROLLING INTERESTS 2 (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 10, 2014	Dec. 31, 2012	Nov. 26, 2012	Oct. 31, 2012
Purchase of Noncontrolling Interests [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired			100.00%
Business Acquisition Cash Paid Net Of Cash Acquired	$ 121
Luz Del Sur [Member]
Purchase of Noncontrolling Interests [Line Items]
Business Combination Step Acquisition Equity Interest In Acquiree Percentage		79.80%
Business Acquisition, Percentage of Voting Interests Acquired		83.60%
Luzlinares [Member]
Purchase of Noncontrolling Interests [Line Items]
Business Combination Step Acquisition Equity Interest In Acquiree Percentage					85.00%
Business Acquisition, Percentage of Voting Interests Acquired				15.00%

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

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Regulatory interest, net

^[1]

$ 6

$ 5

$ 1

Investment gains (losses)

^[2]

Gains (losses) on interest rate and foreign exchange instruments, net

(15)

Sundry, net

AFUDC related to equity

106

Foreign currency gain (losses)

(15)

(3)

Electrical infrastructure relocation income

^[3]

Component of Other Income, Nonoperating [Line Items]

137

140

172

Parent Company [Member]

Component of Other Income, Nonoperating [Line Items]

Regulatory interest, net

^[1]

Sundry, net

(3)

(4)

AFUDC related to equity

Component of Other Income, Nonoperating [Line Items]

Regulatory interest, net

^[1]

(1)

Sundry, net

(6)

(7)

AFUDC related to equity

Regulatory Balancing Accounts [Line Items]

$ 20

$ 11

$ 17

[1]	Interest on regulatory balancing accounts.
[2]	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.
[3]	Income at Luz del Sur associated with the relocation of electrical infrastructure.

OTHER FINANCIAL DATA - REGULATORY MATTERS 2 (Details) - USD ($)
$ in Millions

Dec. 31, 2014

Dec. 31, 2013

Overcollected

$ (1,730)

$ (1,077)

Net current receivable (payable)

2,476

1,542

^[1]

746

465

Total net receviable (payable)

^[2]

173

213

^[1]

919

678

Regulatory Balancing Accounts [Line Items]

Overcollected

(1,195)

(645)

Net current receivable (payable)

1,906

1,201

^[1]

711

556

Total net receviable (payable)

^[2]

161

^[1]

711

717

Regulatory Balancing Accounts [Line Items]

Overcollected

(535)

(432)

Net current receivable (payable)

570

341

^[1]

(91)

Total net receviable (payable)

^[2]

173

^[1]

$ 208

$ (39)

[1]	At December 31, 2013, the net receivable at SDG&E and the net payable at SoCalGas are shown separately on Sempra Energy's Consolidated Balance Sheet.
[2]	Long-term undercollected balance included in Regulatory Assets (long-term) on the Consolidated Balance Sheets.

OTHER FINANCIAL DATA - REGULATORY MATTERS 3 (Details) - USD ($)
$ in Millions

Dec. 31, 2014

Dec. 31, 2013

Schedule Of Net Regulatory Assets (Liabilities), Balance Sheet Classification [Line Items]

Total Regulatory Assets, Current

^[1]

$ 59

$ 38

Total Regulatory Assets, Noncurrent

^[2]

2,858

2,335

Total Regulatory Liability, Current

^[3]

(7)

Total Regulatory Liability, Noncurrent

^[4]

(2,747)

(2,720)

Total Net Regulatory Assets (Liabilities)

163

(354)

Regulatory liabilities in Deferred Credits and Other

Excludes Long Term Undercollected Balancing Accounts in Regulatory Assets

173

213

Schedule Of Net Regulatory Assets (Liabilities), Balance Sheet Classification [Line Items]

Total Regulatory Assets, Current

^[1]

Total Regulatory Assets, Noncurrent

^[2]

1,910

1,787

Total Regulatory Liability, Current

^[3]

(5)

Total Regulatory Liability, Noncurrent

^[4]

(1,557)

(1,403)

Total Net Regulatory Assets (Liabilities)

407

408

Excludes Long Term Undercollected Balancing Accounts in Regulatory Assets

161

Schedule Of Net Regulatory Assets (Liabilities), Balance Sheet Classification [Line Items]

Total Regulatory Assets, Current

^[1]

Total Regulatory Assets, Noncurrent

^[2]

916

536

Total Regulatory Liability, Current

^[3]

Total Regulatory Liability, Noncurrent

^[4]

(1,171)

(1,300)

Total Net Regulatory Assets (Liabilities)

(250)

(759)

Regulatory liabilities in Deferred Credits and Other

Excludes Long Term Undercollected Balancing Accounts in Regulatory Assets

$ 173

$ 52

[1]	At Sempra Energy Consolidated, included in Other Current Assets.
[2]	Excludes long-term undercollected balancing accounts at December 31, 2014 and 2013, of $173 million and $213 million at Sempra Energy, none and $161 million at SDG&E, and $173 million and $52 million at SoCalGas, respectively, recorded in Regulatory Assets (long-term).
[3]	Included in Other Current Liabilities.
[4]	At December 31, 2014 and 2013, $6 million and $97 million, respectively, at Sempra Energy Consolidated and $4 million and $95 million, respectively, at SoCalGas is included in Deferred Credits and Other.

OTHER FINANCIAL DATA - DIVIDENDS AND LOANS (Details) $ in Millions	Dec. 31, 2014 USD ($)
Restrictions On Dividends Loans And Advances [Line Items]
Undistributed Earnings of Equity Method Investments	$ 187
Utility Subsidiaries [Member]
Restrictions On Dividends Loans And Advances [Line Items]
Line Of Credit Facility, Maximum Ratio Of Indebtedness To Total Capitalization	65.00%
San Diego Gas and Electric Company [Member]
Restrictions On Dividends Loans And Advances [Line Items]
Amount Available For Dividend Distribution And Loans Without Prior Approval From Regulatory Agency	$ 640
FERC Requirement to maintain a common equity ratio at or Above	30.00%
Authorized Capital Structure, Common Equity	52.00%
Restricted Net Assets	$ 4,300
Southern California Gas Company [Member]
Restrictions On Dividends Loans And Advances [Line Items]
Amount Available For Dividend Distribution And Loans Without Prior Approval From Regulatory Agency	$ 755
Authorized Capital Structure, Common Equity	52.00%
Restricted Net Assets	$ 2,000

OTHER FINANCIAL DATA - DIVIDENDS AND LOANS 2 (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2014 USD ($)
Significant Restrictions of Subsidiaries [Line Items]
RestrictedNetAssetsOfConsolidatedSubsidiaries	$ 6,600,000
RestrictedNetAssetsOfUnconsolidatedSubsidiaries	2,100,000
Mobile Gas [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	$ 116,000
Bay Gas [Member]
Significant Restrictions of Subsidiaries [Line Items]
Ownership Percentage of Subsidiary	91.00%
Fowler Ridge 2 Wind Farm [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	$ 35,000
Cedar Creek 2 Wind Farm [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	26,000
Luz Del Sur [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	35,000
Mexican Subsidiaries [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	81,000
Gasoductos De Chihuahua [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	32,000
Flat Ridge 2 Wind Farm [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	52,000
Mehoopany Wind Farm [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	16,000
Copper Mountain Solar 1 [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	9,000
Copper Mountain Solar 2 [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	9,000
Mesquite Solar 1 [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	$ 94,000
Energia Sierra Juarez Wind Project [Member]
Significant Restrictions of Subsidiaries [Line Items]
Ownership Percentage of Equity Method Investee	50.00%
Restricted Net Assets of Subsidiary	$ 800
Broken Bow 2 Wind [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	10,000
California Solar Partnership [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	30,000
Copper Mountain Solar 3 [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	$ 3,000
Sempra Renewables Segment [Member]
Significant Restrictions of Subsidiaries [Line Items]
Ownership Percentage of Equity Method Investee	50.00%
Cameron LNG Holdings [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted Net Assets of Subsidiary	$ 1,800,000

OTHER FINANCIAL DATA - FOREIGN CURRENCY TRANSLATION (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Foreign Currency Translation [Line Items]
Equity Method Investment, Functional Currency To Reporting Currency Adjustment	$ (15)	$ (3)	$ 9

OTHER FINANCIAL DATA - REVENUES DISCLOSURE (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Revenues Disclosure [Abstract]

Natural gas revenues

^[1]

$ 4,549

$ 4,398

$ 3,873

Electric revenues

^[1]

5,209

4,911

4,568

Total Utilities Revenues at Sempra Energy Consolidated

$ 9,758

$ 9,309

$ 8,441

[1]	Excludes intercompany revenues.

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

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Accumulated Other Comprehensive Income Loss [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance

^[1]

$ (228)

$ (376)

$ (489)

Other Comprehensive Income Before Reclassifications

^[1]

(289)

(137)

Amounts Reclassified From Accumulated Other Comprehensive Income

^[1]

285

Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance

^[1]

(269)

148

113

^[1]

(497)

(228)

(376)

Accumulated Translation Adjustment [Member]

Accumulated Other Comprehensive Income Loss [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance

^[1]

(129)

(240)

(359)

Other Comprehensive Income Before Reclassifications

^[1]

(193)

(159)

119

Amounts Reclassified From Accumulated Other Comprehensive Income

^[1]

270

^[2]

Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance

^[1]

(193)

111

119

^[1]

(322)

(129)

(240)

Accumulated Defined Benefit Plans Adjustment Net Unamortized Gain Loss [Member]

Accumulated Other Comprehensive Income Loss [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance

^[1]

(73)

(102)

(100)

Other Comprehensive Income Before Reclassifications

^[1]

(24)

(13)

Amounts Reclassified From Accumulated Other Comprehensive Income

^[1]

Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance

^[1]

(10)

(2)

^[1]

(83)

(73)

(102)

Accumulated Defined Benefit Plans Adjustment Net Prior Service Cost Credit [Member]

Accumulated Other Comprehensive Income Loss [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance

^[1]

Other Comprehensive Income Before Reclassifications

^[1]

(2)

(1)

Amounts Reclassified From Accumulated Other Comprehensive Income

^[1]

Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance

^[1]

(2)

(1)

^[1]

(2)

Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member]

Accumulated Other Comprehensive Income Loss [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance

^[1]

(26)

(35)

(31)

Other Comprehensive Income Before Reclassifications

^[1]

(70)

(10)

Amounts Reclassified From Accumulated Other Comprehensive Income

^[1]

Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance

^[1]

(64)

(4)

^[1]

(90)

(26)

(35)

Accumulated Other Comprehensive Income Loss [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance

^[1]

(9)

(11)

(10)

Other Comprehensive Income Before Reclassifications

^[1]

(5)

(2)

Amounts Reclassified From Accumulated Other Comprehensive Income

^[1]

Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance

^[1]

(3)

(1)

^[1]

(12)

(9)

(11)

San Diego Gas and Electric Company [Member] | Accumulated Defined Benefit Plans Adjustment Net Unamortized Gain Loss [Member]

Accumulated Other Comprehensive Income Loss [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance

^[1]

(10)

(12)

(11)

Other Comprehensive Income Before Reclassifications

^[1]

(5)

(2)

Amounts Reclassified From Accumulated Other Comprehensive Income

^[1]

Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance

^[1]

(3)

(1)

^[1]

(13)

(10)

(12)

San Diego Gas and Electric Company [Member] | Accumulated Defined Benefit Plans Adjustment Net Prior Service Cost Credit [Member]

Accumulated Other Comprehensive Income Loss [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance

^[1]

Other Comprehensive Income Before Reclassifications

^[1]

Amounts Reclassified From Accumulated Other Comprehensive Income

^[1]

Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance

^[1]

^[1]

Accumulated Other Comprehensive Income Loss [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance

^[1]

(18)

(21)

Other Comprehensive Income Before Reclassifications

^[1]

(3)

(2)

Amounts Reclassified From Accumulated Other Comprehensive Income

^[1]

Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance

^[1]

^[1]

(18)

Southern California Gas Company [Member] | Accumulated Defined Benefit Plans Adjustment Net Unamortized Gain Loss [Member]

Accumulated Other Comprehensive Income Loss [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance

^[1]

(5)

(4)

(6)

Other Comprehensive Income Before Reclassifications

^[1]

(3)

(2)

Amounts Reclassified From Accumulated Other Comprehensive Income

^[1]

Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance

^[1]

(1)

^[1]

(5)

(4)

Southern California Gas Company [Member] | Accumulated Defined Benefit Plans Adjustment Net Prior Service Cost Credit [Member]

Accumulated Other Comprehensive Income Loss [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance

^[1]

Other Comprehensive Income Before Reclassifications

^[1]

Amounts Reclassified From Accumulated Other Comprehensive Income

^[1]

Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance

^[1]

^[1]

Southern California Gas Company [Member] | Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member]

Accumulated Other Comprehensive Income Loss [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance

^[1]

(14)

(15)

(16)

Other Comprehensive Income Before Reclassifications

^[1]

Amounts Reclassified From Accumulated Other Comprehensive Income

^[1]

Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance

^[1]

^[1]

$ (14)

$ (15)

[1]	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.
[2]	Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4.

OTHER FINANCIAL DATA - ACCUMULATED OTHER COMPREHENSIVE INCOME 2 (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

Equity earnings, net of income tax

$ 38

$ 24

$ 36

(554)

(559)

(493)

Revenues - energy related businesses

(319)

1,277

1,248

1,206

1,524

1,430

943

(300)

(366)

(59)

Grand total reclassifications for the period, net of tax

(100)

(79)

(55)

285

Parent Company [Member]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

Equity earnings, net of income tax

1,291

1,103

880

(235)

(239)

(247)

133

117

145

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

(202)

(197)

(173)

797

626

705

(270)

(191)

(190)

Grand total reclassifications for the period, net of tax

(20)

(24)

(26)

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

(69)

(68)

472

481

369

Grand total reclassifications for the period, net of tax

(139)

(116)

(79)

AccumulatedDefinedBenefitPlansAdjustmentMember

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

(9)

(5)

(8)

AccumulatedDefinedBenefitPlansAdjustmentMember | San Diego Gas and Electric Company [Member]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

(1)

AccumulatedDefinedBenefitPlansAdjustmentMember | Southern California Gas Company [Member]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

(2)

(1)

AccumulatedDefinedBenefitPlansAdjustmentMember | Net Actuarial Gain [Member]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

AccumulatedDefinedBenefitPlansAdjustmentMember | Net Actuarial Gain [Member] | San Diego Gas and Electric Company [Member]

^[1]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

AccumulatedDefinedBenefitPlansAdjustmentMember | Net Actuarial Gain [Member] | Southern California Gas Company [Member]

^[1]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

AccumulatedDefinedBenefitPlansAdjustmentMember | Amortization of Actuarial Loss [Member]

^[1]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

AccumulatedDefinedBenefitPlansAdjustmentMember | Amortization of Actuarial Loss [Member] | San Diego Gas and Electric Company [Member]

^[1]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

AccumulatedDefinedBenefitPlansAdjustmentMember | Amortization of Actuarial Loss [Member] | Southern California Gas Company [Member]

^[1]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

Accumulated Translation Adjustment [Member] | Foreign Currency Translation Adjustments [Member]

^[1]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

Equity earnings, net of income tax

^[2]

270

Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

(3)

(4)

Net of Income Tax

(11)

(9)

(5)

Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | San Diego Gas and Electric Company [Member]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

(11)

(9)

(5)

Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | Southern California Gas Company [Member]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

(1)

Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | Interest Rate and Foreign Exchange Instruments [Member]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | Interest Rate Instruments [Member]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

Gain on sale of equity interests and assets

(3)

Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | Interest Rate Instruments [Member] | San Diego Gas and Electric Company [Member]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | Interest Rate Instruments [Member] | Southern California Gas Company [Member]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | Commodity Contracts Not Subject To Rate Recovery [Member]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

Revenues - energy related businesses

$ (8)

$ (1)

$ 0

[1]	Amounts are included in the computation of net periodic benefit cost (see "Net Periodic Benefit Cost, 2012 - 2014" in Note 7).
[2]	Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4.

OTHER FINANCIAL DATA - COLLECTION ALLOWANCES (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowance balance at January 1	$ 29	$ 31	$ 29
Provisions for uncollectible accounts	25	16	21
Write-offs of uncollectible accounts	(20)	(18)	(19)
Allowance balance at December 31	34	29	31
San Diego Gas and Electric Company [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowance balance at January 1	5	6	6
Provisions for uncollectible accounts	7	4	5
Write-offs of uncollectible accounts	(5)	(5)	(5)
Allowance balance at December 31	7	5	6
Southern California Gas Company [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowance balance at January 1	12	14	12
Provisions for uncollectible accounts	15	7	12
Write-offs of uncollectible accounts	(10)	(9)	(10)
Allowance balance at December 31	$ 17	$ 12	$ 14

OTHER FINANCIAL DATA - ASSET RETIREMENT OBLIGATIONS (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Asset Retirement Obligations [Line Items]

Asset Retirement Obligation, Balance as of January 1

^[1]

$ 2,152

$ 2,056

Asset Retirement Obligation, Accretion Expense

Asset Retirement Obligation, Liabilities Incurred

Asset Retirement Obligation, Reclassification

^[2]

(6)

Asset Retirement Obligation, Liabilities Settled

(29)

(49)

Asset Retirement Obligation, Revisions, Related To GRC

^[3]

(135)

Asset Retirement Obligation, Revisions, Other

^[4],[5]

(28)

179

Asset Retirement Obligation, Balance as of December 31

^[1]

2,190

2,152

Asset Retirement Obligations [Line Items]

Asset Retirement Obligation, Balance as of January 1

^[1]

913

741

Asset Retirement Obligation, Accretion Expense

Asset Retirement Obligation, Liabilities Incurred

Asset Retirement Obligation, Reclassification

^[2]

Asset Retirement Obligation, Liabilities Settled

(29)

(48)

Asset Retirement Obligation, Revisions, Related To GRC

^[3]

(30)

Asset Retirement Obligation, Revisions, Other

^[4],[5]

(54)

205

Asset Retirement Obligation, Balance as of December 31

^[1]

873

913

Asset Retirement Obligations [Line Items]

Asset Retirement Obligation, Balance as of January 1

^[1]

1,199

1,253

Asset Retirement Obligation, Accretion Expense

Asset Retirement Obligation, Liabilities Incurred

Asset Retirement Obligation, Reclassification

^[2]

Asset Retirement Obligation, Liabilities Settled

Asset Retirement Obligation, Revisions, Related To GRC

^[3]

(105)

Asset Retirement Obligation, Revisions, Other

^[4],[5]

Asset Retirement Obligation, Balance as of December 31

^[1]

$ 1,276

$ 1,199

[1]	The current portions of the obligations are included in Other Current Liabilities on the Consolidated Balance Sheets.
[2]	Reclassification to liability held for sale - asset retirement obligation which is included in Other Current Liabilities on the Consolidated Balance Sheets, as we discuss in "Asset Held for Sale" in Note 3.
[3]	The decreases in asset retirement obligations in 2013 at SDG&E and SoCalGas are due to revised estimates related to the 2012 General Rate Case (GRC) that received final approval in May 2013. At SDG&E, these revisions included increases in asset service lives ranging from 2 percent to 7 percent, and lower estimated cost of removal. At SoCalGas, the decrease includes increases in asset service lives ranging from 4 percent to 6 percent, partially offset by a higher estimated cost of removal.
[4]	The decrease in asset retirement obligations in 2014 at SDG&E is due to revised estimates in an updated decommissioning cost study for the San Onofre Nuclear Generating Station, which we discuss in Note 13. The increase in asset retirement obligations in 2014 at SoCalGas is related to a change in estimates.
[5]	The increase in asset retirement obligations in 2013 at SDG&E is due to revised estimates recorded in the third quarter of 2013 related to the early decommissioning of SONGS Units 2 and 3 (see Note 13).

OTHER FINANCIAL DATA - OTHER INTANGIBLE ASSETS (Details) $ in Millions	12 Months Ended
	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 478	$ 479
Finite-Lived Intangible Assets, Accumulated Amortization	(63)	(53)
Finite-Lived Intangible Assets, Net	415	426
Finite Lived Intangible Assets, Future Amortization Expense Per Year	$ 10
Finite Lived Intangible Assets, Storage Rights Amortization Period	46
Finite-Lived Intangible Assets Amortization Expense	$ 10	10	$ 10
Finite Lived Intangible Assets, Other Intangibles Amortization Period, Minimum	10
Finite Lived Intangible Assets, Development Rights Amortization Period	50
Storage Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 138	138
Finite-Lived Intangible Assets, Accumulated Amortization	(19)	(16)
Development Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	322	322
Finite-Lived Intangible Assets, Accumulated Amortization	(40)	(34)
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	18	19
Finite-Lived Intangible Assets, Accumulated Amortization	$ (4)	$ (3)

OTHER FINANCIAL DATA - GOODWILL (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Goodwill By Segment Sempra Energy Consolidated [Member]

$ 931

$ 1,024

^[1]

(93)

(87)

Goodwill By Segment, Sempra South American Utilities [Member]

931

1,024

$ 1,111

^[1]

(93)

(87)

Goodwill By Segment, Sempra Natural Gas [Member]

834

927

1,014

^[1]

Goodwill By Segment, Sempra Mexico [Member]

^[1]

$ 25

[1]	We record the offset of this fluctuation to other comprehensive income.

OTHER FINANCIAL DATA - PROPERTY, PLANT, AND EQUIPMENT (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

$ 35,407

$ 34,407

9,505

8,947

Depreciation

1,146

1,103

$ 1,080

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

15,478

14,346

3,860

3,500

Depreciation

530

494

490

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

12,886

11,831

4,642

4,364

Depreciation

431

383

$ 362

Gas, Transmission and Distribution Equipment [Member] | San Diego Gas and Electric Company [Member]

Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service

$ 1,535

$ 1,454

2.72%

2.35%

3.20%

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

$ 668

$ 639

Gas, Transmission and Distribution Equipment [Member] | Southern California Gas Company [Member]

Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service

^[1]

$ 12,098

$ 11,394

3.89%

3.70%

3.74%

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

^[2]

$ 4,555

$ 4,279

Capital Leased Assets, Gross

Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation

Electric Distribution [Member] | San Diego Gas and Electric Company [Member]

Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service

$ 5,795

$ 5,492

3.79%

3.36%

4.15%

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

^[3]

$ 3,192

$ 2,861

Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation

Electric Transmission [Member] | San Diego Gas and Electric Company [Member]

Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service

^[4]

$ 4,525

$ 3,932

2.59%

2.58%

2.63%

Utility Electric Generation Equipment [Member] | San Diego Gas and Electric Company [Member]

Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service

^[5]

$ 1,862

$ 1,768

3.86%

3.76%

4.68%

Capital Leased Assets, Gross

$ 243

$ 183

Other Utility Electric Equipment [Member] | San Diego Gas and Electric Company [Member]

Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service

^[6]

$ 851

$ 759

7.09%

7.58%

7.92%

Capital Leased Assets, Gross

$ 19

$ 23

Other Plant in Service [Member]

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

^[7]

824

938

Other Plant in Service [Member] | Southern California Gas Company [Member]

Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service

$ 120

$ 118

2.88%

1.56%

1.36%

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

$ 87

$ 85

Utility Construction In Progress [Member] | San Diego Gas and Electric Company [Member]

Utility Construction In Progress [Member] | Southern California Gas Company [Member]

^[4]

910

941

Utility Electric Distribution Operations [Member]

668

319

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

^[8]

1,434

1,440

$ 179

145

Property, Plant Equipment Weighted Average Useful Life

Land And Land Rights [Member]

^[8]

$ 290

276

^[9]

Property, Plant Equipment Weighted Average Useful Life

^[9]

^[9]

Electric Generation Equipment [Member]

^[8]

$ 596

993

Property, Plant Equipment Weighted Average Useful Life

L N G Receipt Terminals [Member]

^[8]

$ 1,122

2,094

Property, Plant Equipment Weighted Average Useful Life

Pipelines And Storage Equipment [Member]

^[8]

$ 2,003

1,638

Property, Plant Equipment Weighted Average Useful Life

Other Machinery and Equipment [Member]

^[8]

$ 213

212

Property, Plant Equipment Weighted Average Useful Life

Construction in Progress [Member]

Other Capitalized Property Plant and Equipment [Member]

^[8]

$ 1,053

1,283

^[8]

$ 332

294

Property, Plant Equipment Weighted Average Useful Life

Electric Distribution Assets Of SWPL [Member] | San Diego Gas and Electric Company [Member]

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

$ 365

211

CWIP Assets Of SWPL [Member] | San Diego Gas and Electric Company [Member]

Plant, Pipeline And Other Distribution Assets Of Ecogas [Member]

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

150

155

Plant, Pipeline And Other Distribution Assets Of Mobile Gas [Member]

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

191

180

Plant, Pipeline And Other Distribution Assets Of Willmut Gas [Member]

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

Total Other Operating Units And Parent [Member]

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

^[8]

7,043

8,230

$ 1,003

$ 1,083

[1]	Includes capital lease assets of $27 million and $33 million at December 31, 2014 and 2013, respectively.
[2]	Includes accumulated depreciation for assets under capital lease of $27 million and $31 million at December 31, 2014 and 2013, respectively.
[3]	Includes accumulated depreciation for assets under capital lease of $28 million and $26 million at December 31, 2014 and 2013, respectively. Includes $211 million at December 31, 2014 related to SDG&E's 91-percent interest in the SWPL transmission line, jointly owned by SDG&E and other utilities.
[4]	At December 31, 2014, includes $365 million in electric transmission assets and $12 million in construction work in progress related to SDG&E's 91-percent interest in the Southwest Powerlink (SWPL) transmission line, jointly owned by SDG&E with other utilities. SDG&E, and each of the other owners, holds its undivided interest as a tenant in common in the property. Each owner is responsible for its share of the project and participates in decisions concerning operations and capital expenditures.
[5]	Includes capital lease assets of $243 million and $183 million at December 31, 2014 and 2013, respectively, primarily related to variable interest entities of which SDG&E is not the primary beneficiary.
[6]	Includes capital lease assets of $19 million and $23 million at December 31, 2014 and 2013, respectively.
[7]	December 31, 2014 balances include $37 million, $29 million and $2 million of accumulated depreciation for utility plant at Ecogas, Mobile Gas and Willmut Gas, respectively. December 31, 2013 balances include $38 million, $25 million and $2 million of accumulated depreciation for utility plant at Ecogas, Mobile Gas and Willmut Gas, respectively.
[8]	December 31, 2014 balances include $150 million, $191 million and $24 million of utility plant, primarily pipelines and other distribution assets, at Ecogas, Mobile Gas and Willmut Gas, respectively. December 31, 2013 balances include $155 million, $180 million and $22 million of utility plant, primarily pipelines and other distribution assets, at Ecogas, Mobile Gas and Willmut Gas, respectively.
[9]	Estimated useful lives are for land rights.

OTHER FINANCIAL DATA - PROPERTY, PLANT, AND EQUIPMENT 2 (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Capitalized Financing Costs Disclosure [Line Items]
Public Utilities Allowance For Funds Used During Construction Capitalized Interest	$ 22	$ 22	$ 38
Other capitalized financing costs	39	22	52
AFUDC equity	106	75	96
Capitalized Interest Costs, Including Allowance for Funds Used During Construction, Total	167	119	186
Sempra Mexico Sonora Pipeline project, recorded in AFUDC related to equity	43	19
San Diego Gas and Electric Company [Member]
Capitalized Financing Costs Disclosure [Line Items]
Public Utilities Allowance For Funds Used During Construction Capitalized Interest	15	16	30
AFUDC equity	37	39	71
Capitalized Interest Costs, Including Allowance for Funds Used During Construction, Total	52	55	101
Southern California Gas Company [Member]
Capitalized Financing Costs Disclosure [Line Items]
Public Utilities Allowance For Funds Used During Construction Capitalized Interest	7	6	8
Other capitalized financing costs	1	1	1
AFUDC equity	26	17	25
Capitalized Interest Costs, Including Allowance for Funds Used During Construction, Total	$ 34	$ 24	$ 34

ACQUISTION AND DIVESTITURE ACTIVITY (Details)	12 Months Ended
ACQUISTION AND DIVESTITURE ACTIVITY (Details)	Dec. 31, 2014 USD ($) Bcf Mtpa	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
Business Acquisition [Line Items]
Acquired percentage interest in joint venture			100.00%
Business acquisition, Cash paid, net of cash acquired	$ 121,000,000
Liabilities assumed	0	$ 2,000,000	$ 10,000,000
Purchase of noncontrolling interests	$ (74,000,000)	0	(7,000,000)
Gain on sale of power plant		$ 74,000,000
Goodwill			10,000,000
Property, plant and equipment			17,000,000
Cameron LNG [Member]
Gas Volumes Capacity [Line Items]
LNG Vaporization Capability \| Bcf	1.5
LNG Nameplate Capacity \| Mtpa	13.5
LNG Expected Export Capacity \| Mtpa	12
LNG Expected Export Capacity Per Day \| Bcf	1.7
Willmut Gas [Member]
Business Acquisition [Line Items]
Liabilities assumed			$ 10,000,000

ACQUISTION AND DIVESTITURE ACTIVITY 2 (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Feb. 28, 2013

Dec. 31, 2011

Business acquisition, Cash paid, net of cash acquired

$ 121

Equity Method Investment Ownership Percentage Of Minority Partner

25.00%

43.00%

Long Lived Assets Held-for-sale [Line Items]

Total assets held for sale

$ 293

$ 0

Asssets Held For Sale, Proceeds

$ 371

Assets Held For Sale [Member]

Long Lived Assets Held-for-sale [Line Items]

290

Total assets held for sale

293

Liability held for sale - asset retirement obligation

^[1]

(6)

Total assets held for sale, net

287

Mesquite Solar 1 [Member]

^[2]

100

(461)

(72)

297

Increase in equity method investments upon deconsolidation

^[3]

(36)

$ (141)

50.00%

Transaction costs

$ 3

Copper Mountain Solar 2 [Member]

103

^[2],[4]

(266)

(30)

146

Increase in equity method investments upon deconsolidation

^[3]

(4)

$ (66)

50.00%

Transaction costs

$ 3

Broken Bow 2 Wind [Member]

(5)

(1)

(151)

(8)

Increase in equity method investments upon deconsolidation

^[3]

(14)

$ (44)

50.00%

$ 8

Cameron LNG [Member]

(6)

(11)

(1,022)

(30)

Increase in equity method investments upon deconsolidation

^[3]

$ (976)

Equity Method Investment Ownership Percentage Of Minority Partner

50.20%

49.80%

Energia Sierra Juarez Wind Project [Member]

$ 26

(2)

(11)

(137)

(16)

(5)

Increase in equity method investments upon deconsolidation

^[3]

(19)

$ (26)

50.00%

$ 14

Gain attributable to remeasurement, after tax

Copper Mountain Solar 3 [Member]

(2)

(247)

(11)

(2)

Increase in equity method investments upon deconsolidation

^[3]

(27)

$ (39)

50.00%

$ 16

Sempra Energy Consolidated [Member]

152

169

^[2]

(10)

(5)

(23)

(1,557)

(727)

(65)

(102)

188

251

443

(7)

Increase in equity method investments upon deconsolidation

^[3]

(60)

(40)

$ (1,085)

(207)

Willmut Gas [Member]

Business acquisition, Cash paid, net of cash acquired

$ 19

California Solar Partnership [Member]

Business acquisition, Cash paid, net of cash acquired

50.00%

$ 121

Mesquite Power [Member]

Schedule Of Equity Method And Other Investments [Line Items]

$ 371

[1]	Included in Other Current Liabilities on the Consolidated Balance Sheet.
[2]	Transaction costs were $3 million at both Mesquite Solar 1 and Copper Mountain Solar 2.
[3]	Included in Gain on Sale of Equity Interests and Assets on our Consolidated Statements of Operations.
[4]	Proceeds from sale, net of transaction costs, was adjusted for financial position at closing in the fourth quarter of 2013.

INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2014

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Ownership percentage of minority partner in equity method investee

$ 81

$ 31

$ (319)

25.00%

43.00%

Ownership percentage of operating partner in equity method investee

50.00%

Equity Method Investment, Realized Gain (Loss) on Disposal

$ (7)

Equity Method Investment, Other Than Temporary Impairment, Net Of Tax Benefit

$ (60)

(179)

Proceeds from return of capital

$ 13

152

207

Undistributed Earnings, Equity Method Investments

187

129

Equity Method Investment, Cumulative Foreign Currency Translation Adjustments

270

Industrial Development Bonds at Mississippi Hub

Aftertax loss on sale of Argentina

(4)

$ (7)

Proceeds From Sale Of Equity Method Investments

$ 13

Accrued Liabilities, Argentina

250

Business Acquisition Cash Paid Net Of Cash Acquired

121

Equity Method Investment, Other Than Temporary Impairment

$ (100)

$ (300)

$ (10)

Other Equity Method Investments And Other Investments [Member]

Schedule Of Equity Method And Other Investments [Line Items]

Other Equity Method Investments [Member]

2,848

1,575

Schedule Of Equity Method And Other Investments [Line Items]

Income (Loss) From Equity Method Investments, Earnings (Losses) Recorded Net Of Tax

2,755

1,485

^[1]

Sodigas Pampeana And Sodigas Sur [Member]

(319)

Schedule Of Equity Method And Other Investments [Line Items]

Income (Loss) From Equity Method Investments, Earnings (Losses) Recorded Net Of Tax

^[1]

(11)

Rockies Express [Member]

Schedule Of Equity Method And Other Investments [Line Items]

Equity Method Investment, Impairment, Gross Amount

^[2]

340

329

(400)

Equity Methold Investment, Income Tax Make-Whole Payment Received

$ 369

382

R B S Sempra Commodities [Member]

25.00%

Schedule Of Equity Method And Other Investments [Line Items]

$ 71

Schedule Of Equity Method And Other Investments [Line Items]

(2)

(3)

Auwahi Wind [Member]

Mesquite Solar 1 [Member]

Schedule Of Equity Method And Other Investments [Line Items]

$ 1

Copper Mountain Solar 2 [Member]

50.00%

Schedule Of Equity Method And Other Investments [Line Items]

$ 67

$ 0

Mehoopany Wind Farm [Member]

50.00%

Schedule Of Equity Method And Other Investments [Line Items]

$ 85

Schedule Of Equity Method And Other Investments [Line Items]

(1)

(2)

Eletrans [Member]

Income (Loss) From Equity Method Investments, Earnings (Losses) Recorded Net Of Tax

^[3]

(8)

(3)

^[1]

(4)

$ (4)

Cedar Creek I I Wind Farm [Member]

50.00%

Schedule Of Equity Method And Other Investments [Line Items]

$ 92

Fowler Ridge I I Wind Farm [Member]

(3)

(4)

Schedule Of Equity Method And Other Investments [Line Items]

Flat Ridge 2 Wind Farm [Member]

(3)

Schedule Of Equity Method And Other Investments [Line Items]

284

292

Gasoductos De Chihuahua [Member]

(7)

(8)

Schedule Of Equity Method And Other Investments [Line Items]

Income (Loss) From Equity Method Investments, Earnings (Losses) Recorded Net Of Tax

^[4]

409

379

^[1]

$ 65

Energia Sierra Juarez Wind Project [Member]

50.00%

Schedule Of Equity Method And Other Investments [Line Items]

Income (Loss) From Equity Method Investments, Earnings (Losses) Recorded Net Of Tax

$ 25

^[5]

^[1]

$ 12

California Solar Partnership [Member]

50.00%

Schedule Of Equity Method And Other Investments [Line Items]

$ 125

$ 6

Copper Mountain Solar 3 [Member]

50.00%

Schedule Of Equity Method And Other Investments [Line Items]

$ 56

$ 2

Cameron LNG Holdings [Member]

50.00%

Schedule Of Equity Method And Other Investments [Line Items]

$ 1,007

^[6]

Other Equity Investments [Member]

Schedule Of Equity Method And Other Investments [Line Items]

Broken Bow 2 Wind [Member]

(1)

$ (1)

Schedule Of Equity Method And Other Investments [Line Items]

$ 44

Other Investments [Member]

50.00%

Schedule Of Equity Method And Other Investments [Line Items]

Investments In Unconsolidated Entities (Details) [Abstract]

^[7]

$ 93

$ 90

[1]	As the earnings (losses) from these investments are recorded net of income tax, they are presented below the income tax expense line, so as not to impact our effective income tax rate.
[2]	The carrying value of our equity method investment is $369 million and $382 million lower than the underlying equity in the net assets of the investee at December 31, 2014 and 2013, respectively, due to an impairment charge recorded in 2012.
[3]	Includes losses on forward exchange contracts as we discuss below.
[4]	The carrying value of our equity method investment is $65 million higher than the underlying equity in the net assets of the investee at December 31, 2014 and 2013 due to equity method goodwill.
[5]	The carrying value of our equity method investment is $12 million higher than the underlying equity in the net assets of the investee at December 31, 2014 due to the remeasurement of our retained investment to fair value.
[6]	The carrying value of our equity method investment is $94 million higher than the underlying equity in the net assets of the investee at December 31, 2014 primarily due to guarantees as we discuss below.
[7]	Other includes Sempra Natural Gas' $77 million investment in industrial development bonds at Mississippi Hub at both December 31, 2014 and 2013.

INVESTMENTS IN UNCONSOLIDATED ENTITIES 2 (Details) - USD ($)

12 Months Ended

Dec. 31, 2013

Sep. 30, 2014

Distributions from RBS Sempra Commodities LLP, operating activities

$ 50,000,000

Investment in Energia Sierra Juarez

^[1]

$ 26,000,000

[1]	At measurement date of July 16, 2014. At December 31, 2014, our investment in Energía Sierra Juárez had a carrying value of $25 million, reflecting subsequent equity method activity to record distributions and earnings.

INVESTMENTS IN UNCONSOLIDATED ENTITIES 3 (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Equity Method Investment Summarized Financial Information [Abstract]

Gross revenue

$ 1,296

$ 1,734

$ 2,138

Operating expense

(749)

(1,287)

(1,801)

Income from operations

547

447

337

(298)

(251)

(218)

Net income/earnings

^[1]

291

222

$ (52)

Current assets

865

653

Noncurrent assets

13,161

9,439

Current liabilities

1,131

373

Noncurrent liabilities

$ 6,228

$ 4,547

[1]	Except for Gasoductos de Chihuahua, Energía Sierra Juárez, Eletrans and the Argentine investments, there was no income tax recorded by the entities, as they are primarily domestic partnerships.

INVESTMENTS IN UNCONSOLIDATED ENTITIES 4 (Details) $ in Millions	Dec. 31, 2014 USD ($)
Schedule Of Equity Method And Other Investments [Line Items]
Fair Value At Origin Guarantee Obligation Associated With Cash Flow Requirements	$ 82
Indirect economic and benefical and ownership interest prior to financial completion	37.65%
Indirect economic and benefical and ownership interest after financial completion	0.10%
Other Long Term Debt, Due July 2030 [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Debt instrument, maximum borrowing amount	$ 3,700
Completion guarantees	50.20%
Cameron LNG [Member] \| Other Long Term Debt, Due July 2030 [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Debt instrument face amount	$ 7,400
Cameron LNG [Member] \| Per Annum Over Libor Prior To Financial Completion [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Weighted average all in cost of Loans outstanding	1.59%
Cameron LNG [Member] \| Per Annum Over Libor Following Financial Completion [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Weighted average all in cost of Loans outstanding	1.78%
Other Project Partners [Member] \| Other Long Term Debt, Due July 2030 [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Completion guarantees	49.80%

INVESTMENTS IN UNCONSOLIDATED ENTITIES 5 (Details)	Dec. 31, 2014
Debt Instrument, Other Sempra Natural Gas [Member] \| Other Long-term Debt [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Debt Instrument, Interest Rate At Period End	3.19%

DEBT AND CREDIT FACILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Line of Credit Facility [Line Items]
Commercial paper classified as long-term debt	$ 0	$ 200,000
Line Of Credit Facility, Sempra Energy Consolidated [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	4,100,000
Committed lines of credit, remaining borrowing capacity	$ 2,400,000
Weighted average interest rate on total short-term debt outstanding	0.70%	0.64%
Line Of Credit Facility, Sempra Energy [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	$ 1,067,000
Committed lines of credit, maximum ratio of indebtedness to total capitalization	65.00%
Committed lines of credit, capacity for issuance of letters of credit	$ 635,000
Committed lines of credit, outstanding borrowings	0
Line Of Credit Facility, Sempra Global [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	$ 2,189,000
Committed lines of credit, maximum ratio of indebtedness to total capitalization	65.00%
Outstanding commercial paper supported by committed lines of credit	$ 1,300,000
Commercial paper classified as long-term debt		$ 200,000
Line Of Credit Facility, S D G E [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	$ 658,000
Committed lines of credit, maximum ratio of indebtedness to total capitalization	65.00%
Committed lines of credit, remaining borrowing capacity	$ 312,000
Outstanding commercial paper supported by committed lines of credit	$ 346,000
Weighted average interest rate on total short-term debt outstanding	0.27%
Weighted average interest rate on commercial paper noncurrent	0.40%
Line Of Credit Facility, So Cal Gas [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	$ 658,000
Committed lines of credit, maximum ratio of indebtedness to total capitalization	65.00%
Committed lines of credit, remaining borrowing capacity	$ 481,000
Outstanding commercial paper supported by committed lines of credit	$ 50,000
Weighted average interest rate on total short-term debt outstanding	0.25%
Line Of Credit Facility, California Utilities Combined [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	$ 877,000
New line of credit capacity	300,000
Line Of Credit Facility, Copper Mountain Solar 3 [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	72,000
Line Of Credit Facility, South American Utilities And Mexico [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	865,000
Committed lines of credit, remaining borrowing capacity	536,000
Line Of Credit Facility, IEnova Santander [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	200,000
Committed lines of credit, remaining borrowing capacity	55,000
Committed lines of credit, outstanding borrowings	145,000
Line Of Credit Facility, IEnova Sumitomo [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	100,000
Committed lines of credit, remaining borrowing capacity	49,000
Committed lines of credit, outstanding borrowings	51,000
Line Of Credit Facility, Energia Sierra Juarez [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	31,700
Line Of Credit Facility, Energia Sierra Juarez Value Added Tax [Member]
Line of Credit Facility [Line Items]
Committed lines of credit, maximum borrowing capacity	$ 35,000

DEBT AND CREDIT FACILITIES 2 (Details) - USD ($)

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Commercial paper classified as long-term debt

$ 0

$ 200,000,000

310,000,000

195,000,000

(469,000,000)

(1,147,000,000)

(21,000,000)

(17,000,000)

Debt Instrument, S D G E [Member]

12,167,000,000

11,253,000,000

Long Term Debt And Capital Lease Obligations, Including Current Portion

3,912,000,000

4,695,000,000

4,565,000,000

(365,000,000)

(29,000,000)

(11,000,000)

Debt Instrument, So Cal Gas [Member]

4,319,000,000

4,525,000,000

1,900,000,000

1,400,000,000

Long Term Debt And Capital Lease Obligations, Including Current Portion

1,000,000

2,000,000

1,914,000,000

1,415,000,000

(252,000,000)

(8,000,000)

(4,000,000)

Debt Instrument, Other Sempra Energy [Member]

1,906,000,000

1,159,000,000

Long Term Debt And Capital Lease Obligations, Including Current Portion

6,048,000,000

6,437,000,000

(104,000,000)

(866,000,000)

Debt Instrument Unamortized Premium

(9,000,000)

7,000,000

Debt Instrument, Parent [Member]

5,942,000,000

5,569,000,000

First Mortgage Bonds, Due March 2014 [Member] | Debt Instrument, So Cal Gas [Member]

Build to suit lease

^[1]

75,000,000

14,000,000

$ 0

250,000,000

First Mortgage Bonds, Due November 2015 [Member] | Debt Instrument, S D G E [Member]

5.50%

$ 250,000,000

250,000,000

First Mortgage Bonds, Due April 2018 [Member] | Debt Instrument, So Cal Gas [Member]

5.30%

$ 250,000,000

250,000,000

First Mortgage Bonds, Due July 2018 [Member] | Debt Instrument, S D G E [Member]

5.45%

^[2]

$ 161,000,000

161,000,000

First Mortgage Bonds, Due August 2021 [Member] | Debt Instrument, S D G E [Member]

^[2]

1.65%

$ 350,000,000

350,000,000

First Mortgage Bonds, Due September 2021 [Member] | Debt Instrument, Mobile Gas [Member]

3.00%

$ 20,000,000

20,000,000

First Mortgage Bonds, Due September 2023 [Member] | Debt Instrument, S D G E [Member]

4.14%

$ 450,000,000

450,000,000

First Mortgage Bonds, Due September 2024 [Member] | Debt Instrument, So Cal Gas [Member]

3.60%

$ 500,000,000

First Mortgage Bonds, Due June 2026 [Member] | Debt Instrument, S D G E [Member]

3.15%

$ 250,000,000

250,000,000

First Mortgage Bonds, Due December 2027 [Member] | Debt Instrument, S D G E [Member]

6.00%

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum

^[2]

$ 150,000,000

150,000,000

^[2]

5.00%

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum

^[2]

5.25%

First Mortgage Bonds, Due September 2031 [Member] | Debt Instrument, Mobile Gas [Member]

$ 42,000,000

42,000,000

First Mortgage Bonds, Due January And February 2034 [Member] | Debt Instrument, S D G E [Member]

5.00%

^[2]

$ 176,000,000

176,000,000

First Mortgage Bonds, Due May 2035 [Member] | Debt Instrument, S D G E [Member]

^[2]

5.875%

$ 250,000,000

250,000,000

First Mortgage Bonds, Due November 2035 [Member] | Debt Instrument, So Cal Gas [Member]

5.35%

$ 250,000,000

250,000,000

First Mortgage Bonds, Due September 2037 [Member] | Debt Instrument, S D G E [Member]

5.75%

$ 250,000,000

250,000,000

First Mortgage Bonds, Due May 2039 [Member] | Debt Instrument, S D G E [Member]

6.125%

^[2]

$ 75,000,000

75,000,000

First Mortgage Bonds, Due June 2039 [Member] | Debt Instrument, S D G E [Member]

^[2]

4.00%

$ 300,000,000

300,000,000

First Mortgage Bonds, Due May 2040 [Member] | Debt Instrument, S D G E [Member]

6.00%

$ 250,000,000

250,000,000

First Mortgage Bonds, Due August 2040 [Member] | Debt Instrument, S D G E [Member]

5.35%

$ 500,000,000

500,000,000

First Mortgage Bonds, Due November 2040 [Member] | Debt Instrument, So Cal Gas [Member]

4.50%

$ 300,000,000

300,000,000

First Mortgage Bonds, Due November 2041 [Member] | Debt Instrument, S D G E [Member]

5.125%

$ 250,000,000

250,000,000

First Mortgage Bonds, Due April 2042 [Member] | Debt Instrument, S D G E [Member]

3.95%

$ 250,000,000

250,000,000

First Mortgage Bonds, Due September 2042 [Member] | Debt Instrument, So Cal Gas [Member]

4.30%

$ 350,000,000

350,000,000

First Mortgage Bonds, Due March 2044 [Member] | Debt Instrument, So Cal Gas [Member]

3.75%

$ 250,000,000

Other Long-term Debt [Member] | Debt Instrument, S D G E [Member]

4.45%

Long Term Debt And Capital Lease Obligations, Including Current Portion

$ 783,000,000

653,000,000

Other Long-term Debt [Member] | Debt Instrument, So Cal Gas [Member]

Long Term Debt And Capital Lease Obligations, Including Current Portion

14,000,000

15,000,000

Commercial Paper [Member] | Debt Instrument, S D G E [Member]

Commercial Paper [Member] | Debt Instrument, Sempra Global [Member]

100,000,000

$ 200,000,000

Other Long-term Debt, Due June 2014 [Member] | Debt Instrument, S D G E [Member]

0.35%

$ 0

$ 15,000,000

Other Long-term Debt, Due May 2016 [Member] | Debt Instrument, So Cal Gas [Member]

5.90%

^[2]

$ 8,000,000

8,000,000

Other Long-term Debt, Due June 2016 [Member] | Debt Instrument, Parent [Member]

^[2]

4.75%

$ 750,000,000

750,000,000

Other Long-term Debt, Due June 2018 [Member] | Debt Instrument, Parent [Member]

6.50%

$ 500,000,000

500,000,000

Other Long-term Debt, Due February 2019 [Member] | Debt Instrument, Parent [Member]

6.15%

$ 500,000,000

500,000,000

Other Long-term Debt, Due July 2021 [Member] | Debt Instrument, S D G E [Member]

9.80%

^[2]

$ 39,000,000

39,000,000

Other Long-term Debt, Due December 2021 [Member] | Debt Instrument, S D G E [Member]

^[2]

5.30%

^[2]

$ 60,000,000

60,000,000

Other Long-term Debt, Due March 2023 [Member] | Debt Instrument, S D G E [Member]

^[2]

5.50%

^[2]

$ 25,000,000

25,000,000

Other Long-term Debt, Due July 2024 [Member] | Debt Instrument, Other Sempra Natural Gas [Member]

^[2]

4.90%

^[2]

$ 77,000,000

77,000,000

Other Long-term Debt, Due January 2028 [Member] | Debt Instrument, So Cal Gas [Member]

^[2]

4.50%

$ 5,000,000

5,000,000

Other Long-term Debt, Due October 2039 [Member] | Debt Instrument, Parent [Member]

5.67%

$ 750,000,000

750,000,000

Industrial Development Bonds, Due August 2037 [Member] | Debt Instrument, Other Sempra Natural Gas [Member]

6.00%

^[2]

$ 55,000,000

55,000,000

Capital Lease Obligations, Purchased Power Agreements [Member] | Debt Instrument, S D G E [Member]

^[2]

0.05%

Capital Lease Obligations, Other [Member] | Debt Instrument, S D G E [Member]

$ 233,000,000

176,000,000

Market Value Adjustment For Interest Rate Swap [Member] | Debt Instrument, Parent [Member]

1,000,000

3,000,000

Other Long-term Debt, Due March 2014 [Member] | Debt Instrument, Parent [Member]

12,000,000

$ 0

500,000,000

Other Long-term Debt, Variable Rate Notes Due March 2014 [Member] | Debt Instrument, Parent [Member]

2.00%

$ 0

300,000,000

Other Long-term Debt, Due October 2030 [Member] | Debt Instrument, Chilquinta Energia [Member]

1.01%

^[2]

$ 192,000,000

209,000,000

Other Long-term Debt, Due February 2018 [Member] | Debt Instrument, Sempra Mexico [Member]

^[2]

4.25%

$ 88,000,000

100,000,000

Other Long-term Debt, Due February 2023 [Member] | Debt Instrument, Sempra Mexico [Member]

2.66%

$ 265,000,000

298,000,000

6.30%

Other Long-term Debt, Due December 2023 [Member] | Debt Instrument, Parent [Member]

4.12%

$ 500,000,000

500,000,000

Other Long-term Debt, Due June 2024 [Member] | Debt Instrument, Parent [Member]

4.05%

$ 500,000,000

Other Long-term Debt, Due December 2018 [Member] | Debt Instrument, Other Sempra Natural Gas [Member]

3.55%

^[2]

$ 5,000,000

5,000,000

Other Long Term Debt, Variable Rate Notes Due June 2016 [Member] | Debt Instrument, Parent [Member]

^[2]

3.10%

Debt Instrument, Amount At Variable Rates After Fixed To Floating Swap Effective January 2011

4.44%

$ 300,000,000

Otay Mesa Energy Center Loan Payable Currently Through April 2019 [Member]

$ 325,000,000

335,000,000

Other Long-term Debt, Currently Through October 2016 [Member] | Debt Instrument, Other Sempra Natural Gas [Member]

5.2925%

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum

^[2]

$ 19,000,000

18,000,000

^[2]

2.87%

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum

^[2]

3.51%

Other Long Term Debt, Payable Currently Through May 2022 [Member] | Debt Instrument, Luz Del Sur [Member]

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum

$ 10,000,000

3.77%

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum

4.59%

Other LongTerm Debt, Variable Rate Loan Payable Currently Through December 2028 [Member] | Debt Instrument, Sempra Renewables [Member]

^[2]

$ 97,000,000

104,000,000

Other LongTerm Debt, Fixed Rate Loan Payable Currently Through December 2028 [Member] | Debt Instrument, Sempra Renewables [Member]

^[2]

2.74%

Debt Instrument, Amount At Fixed Rates After Floating to Fixed Swap

^[2]

4.54%

^[2]

$ 74,000,000

Other Long Term Debt, Payable Currently Through December 2017 [Member] | Debt Instrument, Other Sempra Natural Gas [Member]

$ 16,000,000

21,000,000

Other Long Term Debt Due April 2017 [Member] | Debt Instrument, Parent [Member]

8.45%

$ 600,000,000

600,000,000

Other Long Term Debt, Due October 2022 [Member] | Debt Instrument, Parent [Member]

2.30%

$ 500,000,000

500,000,000

Other Long-term Debt, Currently Through December 2018 [Member] | Debt Instrument, Luz Del Sur [Member]

2.875%

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum

$ 91,000,000

70,000,000

5.05%

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum

6.41%

Other Long Term Debt, Payable Currently Through September 2029 [Member] | Debt Instrument, Luz Del Sur [Member]

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum

$ 345,000,000

292,000,000

4.75%

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum

7.41%

Other Long Term Debt Variable Rate Loan Payable Currently Through August 2017 [Member] | Debt Instrument, Sempra Mexico [Member]

^[2],[3]

$ 51,000,000

$ 0

Schedule Of Long Term Debt Maturities [Line Items]

^[2],[3]

1.28%

[1]	We discuss this lease in Note 15.
[2]	Callable long-term debt not subject to make-whole provisions.
[3]	Classified as current portion of long-term debt.

DEBT AND CREDIT FACILITIES 3 (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Schedule Of Equity Method And Other Investments [Line Items]
Liability for guarantee obligation associated with cash flow requirements	$ 82
Energia Sierra Juarez Wind Project [Member] \| Term Loan Due June 2033 [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Percentage of equity interest sold	50.00%
Long-term debt including current portion divested from deconsolidation	$ 82
Copper Mountain Solar 3 [Member] \| Term Loan Due March 2027 [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Percentage of equity interest sold	50.00%
Long-term debt including current portion divested from deconsolidation	$ 97
Broken Bow 2 Wind [Member] \| Fixed Rate Note Due June 2039 [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Percentage of equity interest sold	50.00%
Long-term debt including current portion divested from deconsolidation	$ 72
Mehoopany Wind Farm [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Liability for guarantee obligation associated with cash flow requirements		$ 11
Proceeds From Return Of Capital		13	$ 17
Mehoopany Wind Farm [Member] \| Term Loan Due May 2031 [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Long-term debt outstanding		162
Flat Ridge 2 Wind Farm [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Liability for guarantee obligation associated with cash flow requirements		3
Proceeds From Return Of Capital			$ 148
Flat Ridge 2 Wind Farm [Member] \| Term Loan Due June 2023 [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Long-term debt outstanding		242
Flat Ridge 2 Wind Farm [Member] \| Fixed Rate Note Due June 2035 [Member]
Schedule Of Equity Method And Other Investments [Line Items]
Long-term debt outstanding		$ 110

DEBT AND CREDIT FACILITIES 4 (Details)
$ in Millions

Dec. 31, 2014

USD ($)

^[1]

Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months

$ 456

Long-term Debt, Maturities, Repayments of Principal in Year Two

863

Long-term Debt, Maturities, Repayments of Principal in Year Three

680

Long-term Debt, Maturities, Repayments of Principal in Year Four

1,059

Long-term Debt, Maturities, Repayments of Principal in Year Five

822

Long-term Debt, Maturities, Repayments of Principal after Year Five

8,467

Long-term Debt Maturities, Total Repayments Of Principal

12,347

Schedule Of Long-term Debt Maturities, S D G E [Member]

Schedule Of Long Term Debt Maturities [Line Items]

Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months

360

Long-term Debt, Maturities, Repayments of Principal in Year Two

Long-term Debt, Maturities, Repayments of Principal in Year Three

Long-term Debt, Maturities, Repayments of Principal in Year Four

171

Long-term Debt, Maturities, Repayments of Principal in Year Five

285

Long-term Debt, Maturities, Repayments of Principal after Year Five

3,625

Long-term Debt Maturities, Total Repayments Of Principal

4,461

Schedule Of Long-term Debt Maturities, So Cal Gas [Member]

Schedule Of Long Term Debt Maturities [Line Items]

Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months

Long-term Debt, Maturities, Repayments of Principal in Year Two

Long-term Debt, Maturities, Repayments of Principal in Year Three

Long-term Debt, Maturities, Repayments of Principal in Year Four

250

Long-term Debt, Maturities, Repayments of Principal in Year Five

Long-term Debt, Maturities, Repayments of Principal after Year Five

1,655

Long-term Debt Maturities, Total Repayments Of Principal

1,913

Schedule Of Long-term Debt Maturities, Other Sempra Energy [Member]

Schedule Of Long Term Debt Maturities [Line Items]

Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months

Long-term Debt, Maturities, Repayments of Principal in Year Two

845

Long-term Debt, Maturities, Repayments of Principal in Year Three

670

Long-term Debt, Maturities, Repayments of Principal in Year Four

638

Long-term Debt, Maturities, Repayments of Principal in Year Five

537

Long-term Debt, Maturities, Repayments of Principal after Year Five

3,187

Long-term Debt Maturities, Total Repayments Of Principal

$ 5,973

[1]	Excludes capital lease obligations, build-to-suit lease and market value adjustments for interest rate swaps.

DEBT AND CREDIT FACILITIES 5 (Details) $ in Millions	Dec. 31, 2014 USD ($)
Unsecured Debt [Line Items]
Long-term Debt, Unsecured	$ 5,900
San Diego Gas and Electric Company [Member]
Unsecured Debt [Line Items]
Long-term Debt, Unsecured	224
Southern California Gas Company [Member]
Unsecured Debt [Line Items]
Long-term Debt, Unsecured	$ 13

DEBT AND CREDIT FACILITIES 6 (Details) $ in Millions	Dec. 31, 2014 USD ($)
Schedule Of Callable Long-term Debt [Line Items]
Callable Long-term Debt	$ 1,190
Callable Long term Debt Subject To Make Whole Provisions	9,928
Schedule Of Callable Long-term Debt, S D G E [Member]
Schedule Of Callable Long-term Debt [Line Items]
Callable Long-term Debt	686
Callable Long term Debt Subject To Make Whole Provisions	3,350
Schedule Of Callable Long-term Debt, So Cal Gas [Member]
Schedule Of Callable Long-term Debt [Line Items]
Callable Long-term Debt	8
Callable Long term Debt Subject To Make Whole Provisions	1,900
Schedule Of Callable Long-term Debt, Other Sempra Energy [Member]
Schedule Of Callable Long-term Debt [Line Items]
Callable Long-term Debt	496
Callable Long term Debt Subject To Make Whole Provisions	$ 4,678

DEBT AND CREDIT FACILITIES 7 (Details) $ in Millions	Dec. 31, 2014 USD ($)
San Diego Gas and Electric Company [Member]
First Mortgage Bonds [Line Items]
First Mortgage Bonds, Amount Available For Future Issuance	$ 4,300
Southern California Gas Company [Member]
First Mortgage Bonds [Line Items]
First Mortgage Bonds, Amount Available For Future Issuance	$ 9

DEBT AND CREDIT FACILITIES 8 (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Industrial Development Bonds [Line Items]
Payments To Acquire Industrial Development Bonds	$ 0	$ 3	$ 53	$ 84	$ 42	$ 75
Industrial Development Bonds, Interest Rate, Stated Percentage	4.50%
Redemption of industrial development bonds				$ 180
Maximum Long-term Debt Available, Industrial Development Bonds	$ 265
Total Payments To Acquire Industrial Development Bonds	$ 257

DEBT AND CREDIT FACILITIES 9 (Details) $ in Millions	Dec. 31, 2014 USD ($)
Energia Sierra Juarez Wind Project [Member] \| Other Long Term Debt, Due Fixed Rate Due June 2033 [Member]
Other Long-Term Debt [Line Items]
Debt instrument, maximum borrowing amount	$ 240
Debt instrument, outstanding borrowings	$ 82
Debt instrument, interest rate, after floating to fixed swap	6.10%
Debt Instrument Current Stated Market Interest Rate	0.16%
Copper Mountain Solar 3 [Member] \| Other Long Term Debt, Due March 2027 [Member]
Other Long-Term Debt [Line Items]
Debt instrument, maximum borrowing amount	$ 356
Debt instrument, outstanding borrowings	$ 97
Debt instrument, interest rate, after floating to fixed swap	5.35%
Debt Instrument Current Stated Market Interest Rate	0.16%
Broken Bow 2 Wind [Member] \| Other Long Term Debt, Due Fixed Rate Due June 2039 [Member]
Other Long-Term Debt [Line Items]
Debt instrument face amount	$ 72
Debt instrument, interest rate, stated percentage	4.82%

DEBT AND CREDIT FACILITIES 10 (Details) - Debt Instrument, Luz Del Sur [Member] $ in Millions	Dec. 31, 2014 USD ($)
Other Long Term Debt, Due September 24 2015 [Member]
Debt Instrument Segment [Line Items]
Long-Term Debt, Luz Del Sur	$ 14
Debt Instrument, Interest Rate, Stated Percentage, Luz Del Sur	5.35%
Other Long Term Debt, Due June 22 2015 [Member]
Debt Instrument Segment [Line Items]
Long-Term Debt, Luz Del Sur	$ 7
Debt Instrument, Interest Rate, Stated Percentage, Luz Del Sur	5.10%
Other Long Term Debt, Due July 15 2016 [Member]
Debt Instrument Segment [Line Items]
Long-Term Debt, Luz Del Sur	$ 31
Debt Instrument, Interest Rate, Stated Percentage, Luz Del Sur	5.05%
Other Long Term Debt, Due December 27 2016 [Member]
Debt Instrument Segment [Line Items]
Long-Term Debt, Luz Del Sur	$ 36
Debt Instrument, Interest Rate, Stated Percentage, Luz Del Sur	6.00%
Other Long Term Debt, Due February 2022 [Member]
Debt Instrument Segment [Line Items]
Long-Term Debt, Luz Del Sur	$ 30
Debt Instrument, Interest Rate, Stated Percentage, Luz Del Sur	7.41%
Other Long Term Debt, Due June 5 2024 [Member]
Debt Instrument Segment [Line Items]
Long-Term Debt, Luz Del Sur	$ 50
Debt Instrument, Interest Rate, Stated Percentage, Luz Del Sur	6.69%
Other Long Term Debt, Due September 2029 [Member]
Debt Instrument Segment [Line Items]
Long-Term Debt, Luz Del Sur	$ 50
Debt Instrument, Interest Rate, Stated Percentage, Luz Del Sur	6.88%

INCOME TAXES (Details) - USD ($) $ in Millions	12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Line Items]
U.S. federal statutory income tax rate	35.00%	35.00%	35.00%
Utility depreciation	5.00%	4.00%	6.00%
Income tax restructuring related to IEnova stock offerings	0.00%	4.00%	0.00%
State income taxes, net of federal income tax benefit	0.00%	1.00%	(1.00%)
Utility repair allowance	(5.00%)	(5.00%)	(8.00%)
Tax credits	(4.00%)	(3.00%)	(7.00%)
Non-U.S. earnings taxed at lower statutory income tax rates	(2.00%)	(3.00%)	(4.00%)
Self-developed software expenditures	(3.00%)	(3.00%)	(5.00%)
Allowance for equity funds used during construction	(2.00%)	(1.00%)	(4.00%)
Adjustments to prior years' tax items	(1.00%)	(3.00%)	(1.00%)
Mexican foreign exchange and inflation effects	(2.00%)	0.00%	1.00%
Life insurance contract	0.00%	0.00%	(7.00%)
International tax reform	(1.00%)	1.00%	0.00%
Other, net	(2.00%)	(1.00%)	1.00%
U.S. tax on repatriation of foreign earnings	2.00%	0.00%	0.00%
Effective income tax rate	20.00%	26.00%	6.00%
Income (Loss) from Continuing Operations before Income Taxes, Domestic	$ 1,014	$ 941	$ 442
Income (Loss) from Continuing Operations before Income Taxes, Foreign	510	489	501
Income before income taxes and equity earnings of certain unconsolidated subsidiaries	1,524	1,430	$ 943
Income tax expense related to corporate reorganization		$ 63
Income Tax Expense Louisiana valuation allowance release	25
SONGS tax regulatory asset write-off	$ 17
San Diego Gas and Electric Company [Member]
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Line Items]
U.S. federal statutory income tax rate	35.00%	35.00%	35.00%
Utility depreciation	4.00%	5.00%	4.00%
State income taxes, net of federal income tax benefit	5.00%	3.00%	4.00%
Utility repair allowance	(4.00%)	(4.00%)	(4.00%)
Self-developed software expenditures	(3.00%)	(3.00%)	(3.00%)
Allowance for equity funds used during construction	(2.00%)	(2.00%)	(4.00%)
Adjustments to prior years' tax items	(2.00%)	(1.00%)	(3.00%)
Variable interest entities	(1.00%)	(1.00%)	(1.00%)
Other, net	0.00%	(1.00%)	(1.00%)
SONGS tax regulatory asset write-off	2.00%	0.00%	0.00%
Effective income tax rate	34.00%	31.00%	27.00%
Income before income taxes and equity earnings of certain unconsolidated subsidiaries	$ 797	$ 626	$ 705
Southern California Gas Company [Member]
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Line Items]
U.S. federal statutory income tax rate	35.00%	35.00%	35.00%
Utility depreciation	8.00%	6.00%	7.00%
State income taxes, net of federal income tax benefit	4.00%	4.00%	3.00%
Utility repair allowance	(9.00%)	(9.00%)	(12.00%)
Self-developed software expenditures	(5.00%)	(6.00%)	(9.00%)
Allowance for equity funds used during construction	(2.00%)	(1.00%)	(2.00%)
Adjustments to prior years' tax items	(2.00%)	(5.00%)	0.00%
Other, net	0.00%	0.00%	(1.00%)
Effective income tax rate	29.00%	24.00%	21.00%
Income before income taxes and equity earnings of certain unconsolidated subsidiaries	$ 472	$ 481	$ 369

INCOME TAXES 2 (Details) - USD ($)
$ in Millions

Dec. 31, 2014

Dec. 31, 2013

Deferred Tax Assets And Liabilities [Line Items]

Deferred Tax Liabilities, Property, Plant and Equipment

$ 4,074

$ 3,951

Deferred Tax Liabilities, Regulatory Balancing Accounts

915

663

Deferred Tax Liabilities, Property Taxes

Deferred Tax Liabilities, Investment in Noncontrolled Affiliates

^[1]

650

256

Deferred Tax Liabilities, Other

Deferred Tax Liabilities

5,749

5,015

Deferred Tax Assets, Tax Credit Carryforwards, General Business

276

105

Deferred Tax Assets, Equity Method Losses

Deferred Tax Assets, Net Operating Loss

1,908

2,023

Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Other

244

128

Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits

433

264

Deferred Tax Assets, Other

Deferred Tax Assets, State Income Taxes

Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Loss Reserves

Deferred Tax Assets, Gross

3,090

2,608

Deferred Tax Assets, Valuation Allowance

Deferred Tax Assets, Net

3,051

2,512

Net deferred income tax liability

^[2]

2,698

2,503

Deferred Tax (Assets) Liabilities, Current, Net

(305)

(301)

Deferred Tax (Assets) Liabilities, Noncurrent, Net

3,003

2,804

Deferred Tax Assets And Liabilities [Line Items]

Deferred Tax Liabilities, Property, Plant and Equipment

2,181

2,040

Deferred Tax Liabilities, Regulatory Balancing Accounts

441

411

Deferred Tax Liabilities, Property Taxes

Deferred Tax Liabilities, Other

Deferred Tax Liabilities

2,666

2,515

Deferred Tax Assets, Net Operating Loss

297

440

Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Other

Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits

Deferred Tax Assets, Other

Deferred Tax Assets, State Income Taxes

Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Loss Reserves

Deferred Tax Assets, Net

492

597

Net deferred income tax liability

^[2]

2,174

1,918

Deferred Tax (Assets) Liabilities, Current, Net

(103)

Deferred Tax (Assets) Liabilities, Noncurrent, Net

2,121

2,021

Deferred Tax Assets And Liabilities [Line Items]

Deferred Tax Liabilities, Property, Plant and Equipment

1,194

1,045

Deferred Tax Liabilities, Regulatory Balancing Accounts

481

265

Deferred Tax Liabilities, Property Taxes

Deferred Tax Liabilities, Other

Deferred Tax Liabilities

1,703

1,332

Deferred Tax Assets, Net Operating Loss

Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Other

Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits

261

126

Deferred Tax Assets, Other

Deferred Tax Assets, State Income Taxes

Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Loss Reserves

Deferred Tax Assets, Net

438

294

Net deferred income tax liability

^[2]

1,265

1,038

Deferred Tax (Assets) Liabilities, Current, Net

Deferred Tax (Assets) Liabilities, Noncurrent, Net

$ 1,212

$ 993

[1]	Amounts primarily represent differences in financial and tax bases of depreciable and amortizable assets within our partnerships.
[2]	Our policy is to show deferred income taxes of VIEs on a net basis, including valuation allowances. See table “Amounts Associated with Otay Mesa VIE” in Note 1 for further information.

INCOME TAXES 3 (Details) - USD ($) $ in Millions	12 Months Ended
INCOME TAXES 3 (Details) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Expense (Benefit), Continuing Operations [Line Items]
Current Federal Tax Expense (Benefit)	$ (10)	$ (70)	$ (36)
Current State and Local Tax Expense (Benefit)	(7)	(5)	(6)
Current Foreign Tax Expense (Benefit)	171	107	144
Current Income Tax Expense (Benefit)	154	32	102
Deferred Federal Income Tax Expense (Benefit)	237	275	(63)
Deferred State and Local Income Tax Expense (Benefit)	4	15	3
Deferred Foreign Income Tax Expense (Benefit)	(91)	48	20
Deferred Income Tax Expense (Benefit)	150	338	(40)
Investment Tax Credit	(4)	(4)	(3)
Income tax expense (benefit)	300	366	59
Parent Company [Member]
Income Tax Expense (Benefit), Continuing Operations [Line Items]
Income tax expense (benefit)	(133)	(117)	(145)
San Diego Gas and Electric Company [Member]
Income Tax Expense (Benefit), Continuing Operations [Line Items]
Current Federal Tax Expense (Benefit)	(5)	9	(109)
Current State and Local Tax Expense (Benefit)	52	11	14
Current Income Tax Expense (Benefit)	47	20	(95)
Deferred Federal Income Tax Expense (Benefit)	220	149	255
Deferred State and Local Income Tax Expense (Benefit)	5	24	30
Deferred Income Tax Expense (Benefit)	225	173	285
Investment Tax Credit	(2)	(2)	0
Income tax expense (benefit)	270	191	190
Southern California Gas Company [Member]
Income Tax Expense (Benefit), Continuing Operations [Line Items]
Current Federal Tax Expense (Benefit)	2	4	(73)
Current State and Local Tax Expense (Benefit)	7	(5)	24
Current Income Tax Expense (Benefit)	9	(1)	(49)
Deferred Federal Income Tax Expense (Benefit)	117	103	136
Deferred State and Local Income Tax Expense (Benefit)	15	16	(6)
Deferred Income Tax Expense (Benefit)	132	119	130
Investment Tax Credit	(2)	(2)	(2)
Income tax expense (benefit)	$ 139	$ 116	$ 79

INCOME TAXES 4 (Details) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013
Valuation Allowance [Line Items]
Deferred Tax Assets, Valuation Allowance	$ 39	$ 96
Deferred Tax Asset Valuation Allowance, Variable Interest Entities [Member]
Valuation Allowance [Line Items]
Deferred Tax Assets, Valuation Allowance	48	60
Deferred Tax Asset Valuation Allowance, Foreign Net Operating Losses [Member]
Valuation Allowance [Line Items]
Deferred Tax Assets, Valuation Allowance	8	12
Deferred Tax Asset Valuation Allowance, Federal State And Local Net Operating Losses [Member]
Valuation Allowance [Line Items]
Deferred Tax Assets, Valuation Allowance	$ 31	$ 84

INCOME TAXES 5 (Details) $ in Millions	Dec. 31, 2014 USD ($)
Unused Domestic NOL Expiring 2032 [Member] \| San Diego Gas and Electric Company [Member]
Operating Loss Carryforwards [Line Items]
Net Operating Loss Carryforwards	$ 867
Unused Domestic NOL Expiring 2032 [Member] \| Southern California Gas Company [Member]
Operating Loss Carryforwards [Line Items]
Net Operating Loss Carryforwards	210
Net Operating Loss Carryforward Foreign [Member]
Operating Loss Carryforwards [Line Items]
Net Operating Loss Carryforwards	312
Net Operating Loss Unused U.S. Federal Consolidated NOLs From Excess Tax Deductions Related To Employee Stock Expense [Member]
Operating Loss Carryforwards [Line Items]
Net Operating Loss Carryforwards	266
Unused NOL Expiring, Starting In 2031 [Member]
Operating Loss Carryforwards [Line Items]
Net Operating Loss Carryforwards	4,900
NetOperating Loss Carryforward NOLs Unused US State NOLs Expiring Between 2015 And 2034 [Member]
Operating Loss Carryforwards [Line Items]
Net Operating Loss Carryforwards	2,700
State Tax Credits Expiring Starting in 2016 [Member]
Operating Loss Carryforwards [Line Items]
Unused State General Business Tax Credits	31
Federal Tax Credits Expiring Starting in 2031 [Member] \| San Diego Gas and Electric Company [Member]
Operating Loss Carryforwards [Line Items]
Unused Federal General Business Tax Credits	12
Federal Tax Credits Expiring Starting in 2031 [Member] \| Southern California Gas Company [Member]
Operating Loss Carryforwards [Line Items]
Unused Federal General Business Tax Credits	11
Federal Tax Credits Expiring Starting in 2032 [Member]
Operating Loss Carryforwards [Line Items]
Unused Federal General Business Tax Credits	182
Unused ForeignTax Credits Expiring in 2024 [Member]
Operating Loss Carryforwards [Line Items]
Net Operating Loss Carryforwards	$ 52

INCOME TAXES 6 (Details) - USD ($) $ in Millions	12 Months Ended
INCOME TAXES 6 (Details) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Unrecognized Tax Benefits [Line Items]
Unrecognized Tax Benefits, Balance as of January 1	$ 90	$ 82	$ 72
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions	37	26	2
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions	0	(24)	(1)
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions	5	7	10
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities	(15)	(1)	(1)
Unrecognized Tax Benefits, Balance as of December 31	117	90	82
Of the total, amounts related to tax positions that, if recognized, in future years, would decrease the effective tax rate	(114)	(86)	(81)
Of the total, amounts related to tax positions that, if recognized, in future years, would increase the effective tax rate	21	19	16
Unrecognized Tax Benefits, Interest on Income Taxes Expense	(4)	1	0
Unrecognized Tax Benefits, Income Tax Penalties Expense	(3)	0	0
Unrecognized Tax Benefits Interest On Income Taxes Accrued	0	4
Unrecognized Tax Benefits Income Tax Penalties Accrued	0	3
Unrecognized Deferred Tax Liability Related to basis difference and consisting of cumulative undistributed earnings	3,600
Deferred Income Tax To Be Recorded That We Expect To Reinvest Undistributed Earnings	3,600
San Diego Gas and Electric Company [Member]
Unrecognized Tax Benefits [Line Items]
Unrecognized Tax Benefits, Balance as of January 1	17	12	7
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions	2	7	1
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions	0	(4)	0
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions	0	2	4
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities	(5)	0	0
Unrecognized Tax Benefits, Balance as of December 31	14	17	12
Of the total, amounts related to tax positions that, if recognized, in future years, would decrease the effective tax rate	(11)	(14)	(12)
Of the total, amounts related to tax positions that, if recognized, in future years, would increase the effective tax rate	6	11	12
Unrecognized Tax Benefits, Interest on Income Taxes Expense	(1)	0	0
Unrecognized Tax Benefits Interest On Income Taxes Accrued	0	1
Southern California Gas Company [Member]
Unrecognized Tax Benefits [Line Items]
Unrecognized Tax Benefits, Balance as of January 1	13	5	0
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions	2	4	0
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions	4	5	5
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities	0	(1)	0
Unrecognized Tax Benefits, Balance as of December 31	19	13	5
Of the total, amounts related to tax positions that, if recognized, in future years, would decrease the effective tax rate	(19)	(13)	(5)
Of the total, amounts related to tax positions that, if recognized, in future years, would increase the effective tax rate	15	8	4
Unrecognized Tax Benefits, Interest on Income Taxes Expense	0	(1)	$ 0
Unrecognized Tax Benefits Interest On Income Taxes Accrued	$ 0	$ 0

INCOME TAXES 7 (Details) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	$ (61)	$ (70)	$ (17)
Expiration Of Statute Of Limitations [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	0	(7)	(7)
Potential Resolution Of Audit Issues [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	(61)	(63)	(10)
Potential Resolution Of Audit Issues [Member] \| San Diego Gas and Electric Company [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	(9)	(14)	(5)
Potential Resolution Of Audit Issues [Member] \| Southern California Gas Company [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	$ (15)	$ (11)	$ (4)

EMPLOYEE BENEFIT PLANS (Details) - USD ($)

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Employee Benefit Plans (Details) [Abstract]

Dedicated Assets Supporting Supplemental Benefit Plans

$ 512,000,000

$ 506,000,000

Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract]

Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent

(1,064,000,000)

(667,000,000)

Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract]

Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent

(216,000,000)

(132,000,000)

Pension Benefits

Defined Benefit Plan, Plan Amendment [Abstract]

Defined Benefit Plan, Effect of Plan Amendment on Accumulated Benefit Obligation

4,000,000

27,000,000

Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]

Defined Benefit Plan, Benefit Obligation, Beginning Balance

$ 3,839,000,000

3,459,000,000

3,804,000,000

101,000,000

109,000,000

$ 90,000,000

Defined Benefit Plan, Contributions By Plan Participants

161,000,000

148,000,000

162,000,000

Defined Benefit Plan, Actuarial Loss (Gain)

441,000,000

(371,000,000)

Defined Benefit Plan, Plan Amendments

4,000,000

67,000,000

Defined Benefit Plan, Special Termination Benefits

Defined Benefit Plan, Settlements, Benefit Obligation

(110,000,000)

(5,000,000)

Defined Benefit Plan, Benefits Paid

(217,000,000)

(293,000,000)

Defined Benefit Plan, Benefit Obligation, Ending Balance

3,839,000,000

3,459,000,000

3,804,000,000

Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]

Defined Benefit Plan, Fair Value of Plan Assets, Beginning Balance

2,807,000,000

2,789,000,000

2,558,000,000

Defined Benefit Plan, Actual Return on Plan Assets

217,000,000

396,000,000

Defined Benefit Plan, Contributions by Employer

128,000,000

133,000,000

Defined Benefit Plan, Contributions By Plan Participants, Plan Assets

Defined Benefit Plan, Benefits Paid, Plan Assets

(217,000,000)

(293,000,000)

Defined Benefit Plan, Settlements, Plan Assets

(110,000,000)

(5,000,000)

Defined Benefit Plan, Fair Value of Plan Assets, Ending Balance

2,807,000,000

2,789,000,000

2,558,000,000

Defined Benefit Plan, Funded Status of Plan [Abstract]

Defined Benefit Plan, Funded Status of Plan

(1,032,000,000)

(670,000,000)

Defined Benefit Plan, Amounts Recognized in Balance Sheet

(1,032,000,000)

(670,000,000)

Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract]

Other Postretirement Defined Benefit Plans, Asset Noncurrent

Pension and Other Postretirement Defined Benefit Plans, Current Liabilities

(33,000,000)

(59,000,000)

Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent

(999,000,000)

(611,000,000)

Defined Benefit Plan, Accumulated Other Comprehensive Income, After Tax [Abstract]

Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), After Tax

(82,000,000)

(73,000,000)

Defined Benefit Plan, Accumulated Other Comprehensive Income, Net Prior Service Cost (Credit), After Tax

(2,000,000)

Defined Benefit Plan, Accumulated Other Comprehensive Income, After Tax

(84,000,000)

(73,000,000)

Defined Benefit Plan, Accumulated Benefit Obligation

3,555,000,000

3,254,000,000

Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract]

Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Projected Benefit Obligation

3,592,000,000

3,212,000,000

Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation

3,343,000,000

3,027,000,000

Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets

2,807,000,000

2,789,000,000

Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]

101,000,000

109,000,000

90,000,000

Defined Benefit Plan, Expected Return on Plan Assets

161,000,000

148,000,000

162,000,000

(171,000,000)

(162,000,000)

(155,000,000)

Defined Benefit Plan, Amortization of Prior Service Cost (Credit)

11,000,000

4,000,000

3,000,000

Defined Benefit Plan, Amortization of (Gains) Losses

18,000,000

54,000,000

47,000,000

Defined Benefit Plan, Recognized Net (Gain) Loss Due to Settlements

31,000,000

2,000,000

8,000,000

Defined Benefit Plan, Recognized Net (Gain) Loss Due to Special Termination Benefits

Defined Benefit Plan, Regulatory Adjustment

(31,000,000)

(20,000,000)

(29,000,000)

Defined Benefit Plan, Net Periodic Benefit Cost, Total

120,000,000

135,000,000

126,000,000

Other Comprehensive Income, Defined Benefit Plan's Adjustment, before Tax, [Abstract]

Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax

38,000,000

(30,000,000)

19,000,000

Other Comprehensive Income, Defined Benefit Plan, Net Prior Service Cost (Credit) Arising During Period, before Tax

4,000,000

1,000,000

Other Comprehensive Income, Reclassification of Defined Benefit Plan's Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax

(23,000,000)

(9,000,000)

Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, Total

19,000,000

(38,000,000)

10,000,000

Defined Benefit Plan, Net Periodic Benefit Cost And Other Comprehensive Income, Total

139,000,000

$ 97,000,000

$ 136,000,000

Defined Benefit Plan, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract]

Defined Benefit Plan, Amortization of Net Gains (Losses)

$ 9,000,000

Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]

Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate

4.09%

4.84%

Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]

Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate

4.85%

4.04%

Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets

7.00%

Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract]

Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year

31,000,000

Defined Benefit Plan, Estimated Future Benefit Payments [Abstract]

Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months

$ 349,000,000

Defined Benefit Plan, Expected Future Benefit Payments, Year Two

333,000,000

Defined Benefit Plan, Expected Future Benefit Payments, Year Three

321,000,000

Defined Benefit Plan, Expected Future Benefit Payments, Year Four

313,000,000

Defined Benefit Plan, Expected Future Benefit Payments, Year Five

301,000,000

Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter

$ 1,311,000,000

Pension Benefits | Maximum [Member]

Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]

Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase

10.00%

Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]

Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate

5.05%

Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase

10.00%

9.50%

8.50%

Pension Benefits | Minimum [Member]

Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]

Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase

3.50%

Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]

Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate

4.40%

Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase

3.50%

Pension Benefits | San Diego Gas and Electric Company [Member]

Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]

Defined Benefit Plan, Benefit Obligation, Beginning Balance

1,011,000,000

$ 939,000,000

$ 1,067,000,000

30,000,000

32,000,000

$ 28,000,000

Defined Benefit Plan, Contributions By Plan Participants

43,000,000

41,000,000

45,000,000

Defined Benefit Plan, Actuarial Loss (Gain)

101,000,000

(66,000,000)

Defined Benefit Plan, Transfers, Benefit Obligation

10,000,000

(42,000,000)

Defined Benefit Plan, Special Termination Benefits

Defined Benefit Plan, Settlements, Benefit Obligation

(87,000,000)

(4,000,000)

Defined Benefit Plan, Benefits Paid

(25,000,000)

(89,000,000)

Defined Benefit Plan, Benefit Obligation, Ending Balance

1,011,000,000

939,000,000

1,067,000,000

Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]

Defined Benefit Plan, Fair Value of Plan Assets, Beginning Balance

828,000,000

819,000,000

781,000,000

Defined Benefit Plan, Actual Return on Plan Assets

63,000,000

117,000,000

Defined Benefit Plan, Contributions by Employer

56,000,000

51,000,000

Defined Benefit Plan, Contributions By Plan Participants, Plan Assets

Defined Benefit Plan, Benefits Paid, Plan Assets

(25,000,000)

(89,000,000)

Defined Benefit Plan, Transfers, Plan Assets

2,000,000

(37,000,000)

Defined Benefit Plan, Settlements, Plan Assets

(87,000,000)

(4,000,000)

Defined Benefit Plan, Fair Value of Plan Assets, Ending Balance

828,000,000

819,000,000

781,000,000

Defined Benefit Plan, Funded Status of Plan [Abstract]

Defined Benefit Plan, Funded Status of Plan

(183,000,000)

(120,000,000)

Defined Benefit Plan, Amounts Recognized in Balance Sheet

(183,000,000)

(120,000,000)

Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract]

Pension and Other Postretirement Defined Benefit Plans, Current Liabilities

(3,000,000)

(13,000,000)

Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent

(180,000,000)

(107,000,000)

Defined Benefit Plan, Accumulated Other Comprehensive Income, After Tax [Abstract]

Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), After Tax

(13,000,000)

(10,000,000)

Defined Benefit Plan, Accumulated Other Comprehensive Income, Net Prior Service Cost (Credit), After Tax

1,000,000

Defined Benefit Plan, Accumulated Other Comprehensive Income, After Tax

(12,000,000)

(9,000,000)

Defined Benefit Plan, Accumulated Benefit Obligation

978,000,000

923,000,000

Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract]

Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Projected Benefit Obligation

964,000,000

899,000,000

Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation

937,000,000

886,000,000

Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets

828,000,000

819,000,000

Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]

30,000,000

32,000,000

28,000,000

Defined Benefit Plan, Expected Return on Plan Assets

43,000,000

41,000,000

45,000,000

(55,000,000)

(52,000,000)

(47,000,000)

Defined Benefit Plan, Amortization of Prior Service Cost (Credit)

2,000,000

Defined Benefit Plan, Amortization of (Gains) Losses

4,000,000

14,000,000

Defined Benefit Plan, Recognized Net (Gain) Loss Due to Settlements

19,000,000

1,000,000

Defined Benefit Plan, Recognized Net (Gain) Loss Due to Special Termination Benefits

Defined Benefit Plan, Regulatory Adjustment

12,000,000

14,000,000

6,000,000

Defined Benefit Plan, Net Periodic Benefit Cost, Total

55,000,000

52,000,000

49,000,000

Other Comprehensive Income, Defined Benefit Plan's Adjustment, before Tax, [Abstract]

Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax

8,000,000

(2,000,000)

2,000,000

Other Comprehensive Income, Reclassification of Defined Benefit Plan's Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax

(3,000,000)

(1,000,000)

Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, Total

5,000,000

(3,000,000)

1,000,000

Defined Benefit Plan, Net Periodic Benefit Cost And Other Comprehensive Income, Total

60,000,000

$ 49,000,000

$ 50,000,000

Defined Benefit Plan, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract]

Defined Benefit Plan, Amortization of Net Gains (Losses)

$ 1,000,000

Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]

Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate

4.00%

4.69%

Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]

Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate

4.69%

3.94%

Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets

7.00%

Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract]

Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year

3,000,000

Defined Benefit Plan, Estimated Future Benefit Payments [Abstract]

Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months

$ 92,000,000

Defined Benefit Plan, Expected Future Benefit Payments, Year Two

86,000,000

Defined Benefit Plan, Expected Future Benefit Payments, Year Three

87,000,000

Defined Benefit Plan, Expected Future Benefit Payments, Year Four

83,000,000

Defined Benefit Plan, Expected Future Benefit Payments, Year Five

80,000,000

Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter

$ 360,000,000

Pension Benefits | San Diego Gas and Electric Company [Member] | Maximum [Member]

Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]

Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase

10.00%

Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]

Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate

4.80%

Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase

10.00%

9.50%

8.50%

Pension Benefits | San Diego Gas and Electric Company [Member] | Minimum [Member]

Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]

Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase

3.50%

Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]

Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate

4.70%

Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase

3.50%

Pension Benefits | Southern California Gas Company [Member]

Defined Benefit Plan, Plan Amendment [Abstract]

Defined Benefit Plan, Effect of Plan Amendment on Accumulated Benefit Obligation

$ 27,000,000

Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]

Defined Benefit Plan, Benefit Obligation, Beginning Balance

2,398,000,000

$ 2,110,000,000

2,299,000,000

60,000,000

67,000,000

$ 53,000,000

Defined Benefit Plan, Contributions By Plan Participants

100,000,000

90,000,000

99,000,000

Defined Benefit Plan, Actuarial Loss (Gain)

300,000,000

(285,000,000)

Defined Benefit Plan, Plan Amendments

66,000,000

Defined Benefit Plan, Transfers, Benefit Obligation

1,000,000

42,000,000

Defined Benefit Plan, Special Termination Benefits

Defined Benefit Plan, Settlements, Benefit Obligation

(10,000,000)

Defined Benefit Plan, Benefits Paid

(163,000,000)

(169,000,000)

Defined Benefit Plan, Benefit Obligation, Ending Balance

2,398,000,000

2,110,000,000

2,299,000,000

Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]

Defined Benefit Plan, Fair Value of Plan Assets, Beginning Balance

1,763,000,000

1,758,000,000

1,581,000,000

Defined Benefit Plan, Actual Return on Plan Assets

138,000,000

250,000,000

Defined Benefit Plan, Contributions by Employer

39,000,000

59,000,000

Defined Benefit Plan, Contributions By Plan Participants, Plan Assets

Defined Benefit Plan, Benefits Paid, Plan Assets

(163,000,000)

(169,000,000)

Defined Benefit Plan, Transfers, Plan Assets

1,000,000

37,000,000

Defined Benefit Plan, Settlements, Plan Assets

(10,000,000)

Defined Benefit Plan, Fair Value of Plan Assets, Ending Balance

1,763,000,000

1,758,000,000

1,581,000,000

Defined Benefit Plan, Funded Status of Plan [Abstract]

Defined Benefit Plan, Funded Status of Plan

(635,000,000)

(352,000,000)

Defined Benefit Plan, Amounts Recognized in Balance Sheet

(635,000,000)

(352,000,000)

Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract]

Other Postretirement Defined Benefit Plans, Asset Noncurrent

Pension and Other Postretirement Defined Benefit Plans, Current Liabilities

(2,000,000)

(13,000,000)

Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent

(633,000,000)

(339,000,000)

Defined Benefit Plan, Accumulated Other Comprehensive Income, After Tax [Abstract]

Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), After Tax

(5,000,000)

Defined Benefit Plan, Accumulated Other Comprehensive Income, Net Prior Service Cost (Credit), After Tax

1,000,000

Defined Benefit Plan, Accumulated Other Comprehensive Income, After Tax

(4,000,000)

Defined Benefit Plan, Accumulated Benefit Obligation

2,182,000,000

1,944,000,000

Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract]

Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Projected Benefit Obligation

2,379,000,000

2,085,000,000

Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation

2,166,000,000

1,920,000,000

Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets

1,763,000,000

1,758,000,000

Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]

60,000,000

67,000,000

53,000,000