View Filing Data

Accounts receivable – trade, net

$ 518,000,000

$ 403,000,000

^[1]

Restricted cash

14,000,000

27,000,000

^[1]

1,062,000,000

1,283,000,000

^[1]

Accounts receivable – other

171,000,000

190,000,000

^[1]

Regulatory balancing accounts – undercollected

8,000,000

6,000,000

^[1]

Income taxes receivable

28,000,000

30,000,000

^[1]

Inventories

302,000,000

298,000,000

^[1]

248,000,000

307,000,000

^[1]

53,000,000

80,000,000

^[1]

Assets held for sale

181,000,000

^[1]

339,000,000

267,000,000

^[1]

Total current assets

2,924,000,000

2,891,000,000

^[1]

Other assets:

Restricted cash

12,000,000

20,000,000

^[1]

195,000,000

186,000,000

^[1]

3,424,000,000

3,273,000,000

^[1]

1,068,000,000

1,063,000,000

^[1]

Investments

1,840,000,000

2,905,000,000

^[1]

Dedicated assets in support of certain benefit plans

2,150,000,000

819,000,000

^[1]

Other intangible assets

397,000,000

404,000,000

^[1]

439,000,000

464,000,000

^[1]

664,000,000

325,000,000

^[1]

211,000,000

120,000,000

^[1]

Sundry

715,000,000

641,000,000

^[1]

Total other assets

11,115,000,000

10,220,000,000

^[1]

Property, plant and equipment:

Less accumulated depreciation and amortization

41,938,000,000

38,200,000,000

^[1]

(10,451,000,000)

(10,161,000,000)

^[1]

Property, plant and equipment, net

31,487,000,000

28,039,000,000

^[1]

Total assets

45,526,000,000

41,150,000,000

^[1]

Current liabilities:

Short-term debt

2,869,000,000

622,000,000

^[1]

Accounts payable – trade

1,173,000,000

1,133,000,000

^[1]

Accounts payable – other

125,000,000

142,000,000

^[1]

Due to unconsolidated affiliates

9,000,000

14,000,000

^[1]

Dividends and interest payable

357,000,000

303,000,000

^[1]

Accrued compensation and benefits

298,000,000

423,000,000

^[1]

Regulatory balancing accounts – overcollected

146,000,000

34,000,000

^[1]

904,000,000

907,000,000

^[1]

94,000,000

56,000,000

^[1]

Customer deposits

153,000,000

^[1]

Liabilities held for sale

73,000,000

274,000,000

^[1]

35,000,000

^[1]

Total current liabilities

558,000,000

551,000,000

^[1]

6,794,000,000

4,612,000,000

^[1]

Deferred credits and other liabilities:

13,522,000,000

13,134,000,000

^[1]

Customer advances for construction

153,000,000

149,000,000

^[1]

Pension and other postretirement benefit plan obligations, net of plan assets

1,199,000,000

1,152,000,000

^[1]

Deferred investment tax credits

3,326,000,000

3,157,000,000

^[1]

34,000,000

32,000,000

^[1]

Regulatory liabilities arising from removal obligations

2,878,000,000

2,793,000,000

^[1]

2,508,000,000

2,126,000,000

^[1]

413,000,000

240,000,000

^[1]

Total deferred credits and other liabilities

1,508,000,000

1,176,000,000

^[1]

12,019,000,000

10,825,000,000

^[1]

Commitments and contingencies (Note 11)

Equity:

Preferred stock

^[1]

Common stock

2,684,000,000

2,621,000,000

^[1]

Retained earnings

10,527,000,000

9,994,000,000

^[1]

Accumulated other comprehensive income (loss)

(865,000,000)

(806,000,000)

^[1]

Total shareholders’ equity

12,346,000,000

11,809,000,000

^[1]

Preferred stock of subsidiary

20,000,000

^[1]

Other noncontrolling interests

825,000,000

750,000,000

^[1]

Total equity

13,191,000,000

12,579,000,000

^[1]

Total liabilities and equity

45,526,000,000

41,150,000,000

^[1]

Current assets:

Accounts receivable – trade, net

23,000,000

20,000,000

^[1]

Restricted cash

10,000,000

23,000,000

^[1]

358,000,000

331,000,000

^[1]

Accounts receivable – other

17,000,000

^[1]

Regulatory balancing accounts – undercollected

88,000,000

1,000,000

^[1]

Income taxes receivable

84,000,000

1,000,000

^[1]

Inventories

73,000,000

75,000,000

^[1]

248,000,000

307,000,000

^[1]

124,000,000

107,000,000

^[1]

23,000,000

53,000,000

^[1]

Deferred taxes recoverable in rates

98,000,000

69,000,000

^[1]

Total current assets

1,146,000,000

1,004,000,000

^[1]

Other assets:

971,000,000

914,000,000

^[1]

1,036,000,000

977,000,000

^[1]

1,068,000,000

1,063,000,000

^[1]

Sundry

373,000,000

301,000,000

^[1]

Total other assets

3,448,000,000

3,255,000,000

^[1]

Property, plant and equipment:

Less accumulated depreciation and amortization

17,344,000,000

16,458,000,000

^[1]

(4,492,000,000)

(4,202,000,000)

^[1]

Property, plant and equipment, net

12,852,000,000

12,256,000,000

^[1]

Total assets

17,446,000,000

16,515,000,000

^[1]

Current liabilities:

Short-term debt

54,000,000

168,000,000

^[1]

Accounts payable – trade

422,000,000

377,000,000

^[1]

Due to unconsolidated affiliates

10,000,000

55,000,000

^[1]

Interest payable

47,000,000

39,000,000

^[1]

Accrued compensation and benefits

87,000,000

129,000,000

^[1]

Accrued franchise fees

39,000,000

66,000,000

^[1]

191,000,000

50,000,000

^[1]

72,000,000

99,000,000

^[1]

59,000,000

51,000,000

^[1]

Customer deposits

71,000,000

72,000,000

^[1]

Total current liabilities

116,000,000

101,000,000

^[1]

1,168,000,000

1,207,000,000

^[1]

Deferred credits and other liabilities:

4,660,000,000

4,455,000,000

^[1]

Customer advances for construction

53,000,000

46,000,000

^[1]

Pension and other postretirement benefit plan obligations, net of plan assets

226,000,000

212,000,000

^[1]

Deferred investment tax credits

2,628,000,000

2,472,000,000

^[1]

21,000,000

19,000,000

^[1]

Regulatory liabilities arising from removal obligations

1,742,000,000

1,629,000,000

^[1]

760,000,000

729,000,000

^[1]

207,000,000

106,000,000

^[1]

Total deferred credits and other liabilities

441,000,000

364,000,000

^[1]

6,078,000,000

5,577,000,000

^[1]

Commitments and contingencies (Note 11)

^[1]

Equity:

Common stock

1,338,000,000

^[1]

Retained earnings

4,160,000,000

3,893,000,000

^[1]

Accumulated other comprehensive income (loss)

(8,000,000)

^[1]

Total shareholders’ equity

5,490,000,000

5,223,000,000

^[1]

Other noncontrolling interests

50,000,000

53,000,000

^[1]

Total equity

5,540,000,000

5,276,000,000

^[1]

Total liabilities and equity

17,446,000,000

16,515,000,000

^[1]

Current assets:

Accounts receivable – trade, net

8,000,000

58,000,000

^[1]

344,000,000

635,000,000

^[1]

Accounts receivable – other

81,000,000

99,000,000

^[1]

35,000,000

48,000,000

^[1]

Income taxes receivable

12,000,000

^[1]

Inventories

77,000,000

79,000,000

^[1]

8,000,000

7,000,000

^[1]

Regulatory assets arising from pension obligations

70,000,000

40,000,000

^[1]

Total current assets

635,000,000

966,000,000

^[1]

Other assets:

747,000,000

699,000,000

^[1]

637,000,000

636,000,000

^[1]

664,000,000

325,000,000

^[1]

Sundry

276,000,000

207,000,000

^[1]

Total other assets

2,324,000,000

1,867,000,000

^[1]

Property, plant and equipment:

Less accumulated depreciation and amortization

15,186,000,000

14,171,000,000

^[1]

(4,997,000,000)

(4,900,000,000)

^[1]

Property, plant and equipment, net

10,189,000,000

9,271,000,000

^[1]

Total assets

13,148,000,000

12,104,000,000

^[1]

Current liabilities:

Accounts payable – trade

330,000,000

422,000,000

^[1]

Accounts payable – other

72,000,000

76,000,000

^[1]

Income taxes payable

3,000,000

^[1]

Accrued compensation and benefits

119,000,000

160,000,000

^[1]

Regulatory balancing accounts – overcollected

146,000,000

34,000,000

^[1]

1,000,000

9,000,000

^[1]

Customer deposits

76,000,000

^[1]

73,000,000

274,000,000

^[1]

Total current liabilities

182,000,000

184,000,000

^[1]

999,000,000

1,238,000,000

^[1]

Deferred credits and other liabilities:

2,982,000,000

2,481,000,000

^[1]

Customer advances for construction

101,000,000

103,000,000

^[1]

Pension obligation, net of plan assets

765,000,000

716,000,000

^[1]

Deferred investment tax credits

1,643,000,000

1,532,000,000

^[1]

12,000,000

14,000,000

^[1]

Regulatory liabilities arising from removal obligations

1,136,000,000

1,145,000,000

^[1]

1,714,000,000

1,354,000,000

^[1]

Total deferred credits and other liabilities

433,000,000

372,000,000

^[1]

5,804,000,000

5,236,000,000

^[1]

Commitments and contingencies (Note 11)

^[1]

Equity:

Preferred stock

22,000,000

^[1]

Common stock

866,000,000

^[1]

Retained earnings

2,493,000,000

2,280,000,000

^[1]

Accumulated other comprehensive income (loss)

(18,000,000)

(19,000,000)

^[1]

Total shareholders’ equity

3,363,000,000

3,149,000,000

^[1]

Total liabilities and equity

$ 13,148,000,000

$ 12,104,000,000

^[1]

[1]	Derived from audited financial statements.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)
$ in Millions

Sep. 30, 2016

Dec. 31, 2015

$ 31,487

$ 28,039

^[1]

Stockholders' Equity Attributable to Parent [Abstract]

$ 13,522

$ 13,134

^[1]

Preferred stock, shares authorized

50,000,000

^[1]

Preferred stock, shares issued

^[1]

Common stock, shares authorized

750,000,000

^[1]

Common stock, shares outstanding

250,000,000

248,000,000

^[1]

Common stock, No par value (in dollars per share)

$ 0

^[1]

Otay Mesa VIE [Member]

$ 365

$ 383

^[1]

296

303

^[1]

12,852

12,256

^[1]

Stockholders' Equity Attributable to Parent [Abstract]

$ 4,660

$ 4,455

^[1]

Common stock, shares authorized

255,000,000

Common stock, shares outstanding

117,000,000

Common stock, No par value (in dollars per share)

$ 0

San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member]

$ 365

$ 383

296

303

10,189

9,271

^[1]

Stockholders' Equity Attributable to Parent [Abstract]

$ 2,982

$ 2,481

^[1]

Common stock, shares authorized

100,000,000

Common stock, shares outstanding

91,000,000

Common stock, No par value (in dollars per share)

$ 0

[1]	Derived from audited financial statements.

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

9 Months Ended

Sep. 30, 2016

Sep. 30, 2015

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$ 1,110

$ 1,060

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

Depreciation and amortization

970

925

Deferred income taxes and investment tax credits

170

179

Impairment losses

154

Plant closure adjustment

(21)

Gain on sale of assets

(131)

(62)

Equity earnings

(73)

(143)

Remeasurement of equity method investment

(617)

(20)

Net change in other working capital components

224

260

Changes in other liabilities

(339)

Changes in other assets

(4)

(112)

138

(5)

Net cash provided by operating activities

1,691

2,089

CASH FLOWS FROM INVESTING ACTIVITIES

Expenditures for property, plant and equipment

(3,087)

(2,227)

Expenditures for investments and acquisition of businesses, net of cash and cash equivalents acquired

(1,212)

(183)

Proceeds from sale of assets, net of cash sold

761

347

Distributions from investments

Purchases of nuclear decommissioning and other trust assets

(418)

(407)

Proceeds from sales by nuclear decommissioning and other trusts

486

431

Increases in restricted cash

(53)

(81)

Decreases in restricted cash

Advances to unconsolidated affiliates

(12)

(24)

Repayments of advances to unconsolidated affiliates

Net cash used in investing activities

(2)

(3,432)

(1,979)

CASH FLOWS FROM FINANCING ACTIVITIES

Common dividends paid

(510)

(468)

Preferred dividends paid by subsidiary

(1)

Issuances of debt (maturities greater than 90 days)

(55)

(74)

2,013

2,058

Payments on debt (maturities greater than 90 days)

(1,298)

(1,316)

Increase (decrease) in short-term debt, net

1,636

(201)

Deposit for sale of noncontrolling interest

Net distributions to noncontrolling interests

(43)

(57)

Net cash provided by financing activities

(12)

(9)

1,848

Effect of exchange rate changes on cash and cash equivalents

(12)

Increase (decrease) in cash and cash equivalents

115

127

Cash and cash equivalents, January 1

403

^[1]

570

Cash and cash equivalents, September 30

518

697

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Interest payments, net of amounts capitalized

367

355

Income tax payments, net of refunds

103

Supplemental disclosure of noncash investing and financing activities:

Assets acquired, net of cash and cash equivalents

(2,692)

(10)

Fair value of equity method investment immediately prior to acquisition

(1,144)

Liabilities assumed

(448)

(2)

Accrued purchase price

(4)

(5)

Cash paid, net of cash and cash equivalents acquired

1,096

Accrued capital expenditures

483

459

Financing of build-to-suit property

Redemption of industrial development bonds

Common dividends issued in stock

Dividends declared but not paid

195

179

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

418

463

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

Depreciation and amortization

478

446

Deferred income taxes and investment tax credits

170

Plant closure adjustment

(21)

(2)

(3)

Net change in other working capital components

(29)

(14)

136

Changes in other assets

(47)

(93)

Changes in other liabilities

Net cash provided by operating activities

933

1,094

CASH FLOWS FROM INVESTING ACTIVITIES

Expenditures for property, plant and equipment

(959)

(835)

Purchases of nuclear decommissioning trust assets

(415)

(404)

Proceeds from sales by nuclear decommissioning trusts

486

431

Increases in restricted cash

(30)

(29)

Decreases in restricted cash

Increase in loans to affiliate, net

(107)

Net cash used in investing activities

(982)

(810)

CASH FLOWS FROM FINANCING ACTIVITIES

Common dividends paid

(175)

(150)

Issuances of debt (maturities greater than 90 days)

498

388

Payments on debt (maturities greater than 90 days)

(148)

(294)

Increase (decrease) in short-term debt, net

(114)

(202)

Net distributions to noncontrolling interests

(6)

(14)

Net cash provided by financing activities

(3)

(272)

Increase (decrease) in cash and cash equivalents

Cash and cash equivalents, January 1

^[1]

Cash and cash equivalents, September 30

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Interest payments, net of amounts capitalized

132

141

Income tax payments, net of refunds

165

Supplemental disclosure of noncash investing and financing activities:

Accrued capital expenditures

139

142

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

199

277

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

Depreciation and amortization

355

342

Deferred income taxes and investment tax credits

Impairment losses

Net change in other working capital components

(22)

(18)

135

Changes in other liabilities

(339)

Changes in other assets

(57)

Net cash provided by operating activities

409

690

CASH FLOWS FROM INVESTING ACTIVITIES

Expenditures for property, plant and equipment

(949)

(946)

Increase in loans to affiliate, net

(1)

(250)

Net cash used in investing activities

(950)

(1,196)

CASH FLOWS FROM FINANCING ACTIVITIES

Preferred dividends paid

(1)

Issuances of debt (maturities greater than 90 days)

499

599

Payments on debt (maturities greater than 90 days)

(3)

Increase (decrease) in short-term debt, net

(50)

Net cash provided by financing activities

(4)

491

544

Increase (decrease) in cash and cash equivalents

(50)

Cash and cash equivalents, January 1

^[1]

Cash and cash equivalents, September 30

123

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Interest payments, net of amounts capitalized

Income tax payments, net of refunds

Supplemental disclosure of noncash investing and financing activities:

Accrued capital expenditures

150

172

Dividends declared but not paid

$ 0

$ 50

[1]	Derived from audited financial statements.

GENERAL

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General

GENERAL

PRINCIPLES OF CONSOLIDATION

Sempra Energy

Sempra Energy’s Condensed 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 12.

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. As we discuss below and in Note 3, Sempra U.S. Gas & Power sold its natural gas distribution utilities in September 2016. 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 further in Note 1 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2015 (the Annual Report), which includes the combined reports for Sempra Energy, SDG&E and SoCalGas.

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 herein and in Notes 3, 4 and 10 of the Notes to Consolidated Financial Statements in the Annual Report.

SDG&E

SDG&E’s Condensed Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E is the primary beneficiary, as we discuss in Note 5 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’ common stock is wholly owned by Pacific Enterprises, 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.

Throughout this report, we refer to the following as Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements when discussed together or collectively:


▪	the Condensed Consolidated Financial Statements and related Notes of Sempra Energy and its subsidiaries and VIEs,


▪	the Condensed Consolidated Financial Statements and related Notes of SDG&E and its VIE, and


▪	the Condensed Financial Statements and related Notes of SoCalGas.

We have prepared the Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and in accordance with the interim-period-reporting requirements of Form 10-Q. Results of operations for interim periods are not necessarily indicative of results for the entire year. We evaluated events and transactions that occurred after September 30, 2016 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. These adjustments are only of a normal, recurring nature.

All December 31, 2015 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2015 Consolidated Financial Statements in the Annual Report. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the interim-period-reporting provisions of U.S. GAAP and the Securities and Exchange Commission.

We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. We follow the same accounting policies for interim reporting purposes.

You should read the information in this Quarterly Report in conjunction with the Annual Report.

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 Mexico owns Ecogas México, S. de R.L. de C.V. (Ecogas), a natural gas distribution utility in northern Mexico. The California Utilities and Ecogas prepare their financial statements in accordance with U.S. GAAP provisions governing rate-regulated operations, as we discuss in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra Natural Gas owned Mobile Gas Service Corporation (Mobile Gas) in southwest Alabama and Willmut Gas Company (Willmut Gas) in Mississippi until they were sold in September 2016, as we discuss in Note 3. Mobile Gas and Willmut Gas also prepared their financial statements in accordance with U.S. GAAP provisions governing rate-regulated operations.

Certain business activities at IEnova are regulated by the Comisión Reguladora de Energía (or CRE, the Energy Regulatory Commission) and meet the regulatory accounting requirements of U.S. GAAP. Pipeline projects currently under construction by IEnova that meet the regulatory accounting requirements of U.S. GAAP record the impact of allowance for funds used during construction (AFUDC) related to equity. We discuss AFUDC in Note 5 below and in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.

NEW ACCOUNTING STANDARDS

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

New Accounting Standards

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) 2014-09, “Revenue from Contracts with Customers,” ASU 2015-14, “Deferral of the Effective Date,” ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Identifying Performance Obligations and Licensing,” and ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients”: ASU 2014-09 provides accounting guidance for the recognition of revenue 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. Amending ASU 2014-09, ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations, ASU 2016-10 clarifies the determination of whether a good or service is separately identifiable from other promises and revenue recognition related to licenses of intellectual property, and ASU 2016-12 provides guidance on transition, collectability, noncash consideration, and the presentation of sales and other similar taxes.

ASU 2015-14 defers the effective date of ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. For public entities, ASU 2014-09 is effective for fiscal years beginning after December 15, 2017, with early adoption permitted for fiscal years beginning after December 15, 2016, and is effective for interim periods in the year of adoption. We plan to adopt ASU 2014-09 on January 1, 2018 and are currently evaluating the transition method and the effect on our ongoing financial reporting. As part of our evaluation, we continue to actively monitor outstanding issues currently being addressed by the American Institute of Certified Public Accountants’ Revenue Recognition Working Group and the Financial Accounting Standards Board’s Transition Resource Group, since conclusions reached by these groups may impact our application of these ASU’s.

ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities”: In addition to the presentation and disclosure requirements for financial instruments, ASU 2016-01 requires entities to measure equity investments not accounted for under the equity method at fair value and recognize changes in fair value in net income. Entities will no longer be able to use the cost method of accounting for equity securities. However, for equity investments without readily determinable fair values, entities may elect a measurement alternative that will allow those investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. Upon adoption, entities must record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the standard is adopted. The guidance on equity securities without readily determinable fair values will be applied prospectively to all equity investments that exist as of the date of adoption of the standard.

For public entities, ASU 2016-01 is effective for fiscal years beginning after December 15, 2017. We will adopt ASU 2016-01 on January 1, 2018 as required and do not expect it to materially affect our financial condition, results of operations or cash flows. We will make the required changes to our disclosures upon adoption.

ASU 2016-02, “Leases”: ASU 2016-02 requires entities to include substantially all leases on the balance sheet by requiring the recognition of right-of-use assets and lease liabilities for all leases. Entities may elect to exclude from the balance sheet those leases with a maximum possible term of less than 12 months. For lessees, a lease is classified as finance or operating, and the asset and liability are initially measured at the present value of the lease payments. For lessors, accounting for leases is largely unchanged from previous U.S. GAAP, other than certain changes to align lessor accounting to specific changes made to lessee accounting and ASU 2014-09. ASU 2016-02 also requires qualitative disclosures along with specific quantitative disclosures for both lessees and lessors.

For public entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, and is effective for interim periods in the year of adoption. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes optional practical expedients that may be elected, which would allow entities to continue to account for leases that commence before the effective date of the standard in accordance with previous U.S. GAAP unless the lease is modified, except for the lessee requirement to recognize right-of-use assets and lease liabilities for all operating leases on the balance sheet at the reporting date. We are currently evaluating the effect of the standard on our ongoing financial reporting, and have not yet selected the year in which we will adopt the standard.

ASU 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships”: ASU 2016-05 provides clarification that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 may be adopted prospectively or using a modified retrospective approach. We prospectively adopted ASU 2016-05 on January 1, 2016, and it did not affect our financial condition, results of operations or cash flows.

ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”: ASU 2016-09 is intended to simplify several aspects of the accounting for employee share-based payment transactions. Under ASU 2016-09, excess tax benefits and tax deficiencies are required to be recorded in earnings, and the requirement to reclassify excess tax benefits from operating to financing activities on the statement of cash flows has been eliminated. ASU 2016-09 also allows entities to withhold taxes up to the maximum individual statutory tax rate without resulting in liability classification of the award and clarifies that cash payments made to taxing authorities in connection with withheld shares should be classified as financing activities in the statement of cash flows. Additionally, the standard provides for an accounting policy election to either continue to estimate forfeitures or account for them as they occur. For public entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, with early adoption permitted, and is effective for interim periods in the year of adoption.

We early adopted the provisions of ASU 2016-09 during the three months ended September 30, 2016, with an effective date of January 1, 2016. Upon adoption:


▪	Sempra Energy, SDG&E and SoCalGas recognized a cumulative-effect adjustment to retained earnings and a deferred tax asset as of January 1, 2016 of $107 million, $23 million and $15 million, respectively, for previously unrecognized excess tax benefits from share-based compensation.

▪

Sempra Energy, SDG&E and SoCalGas recognized earnings consisting of excess tax benefits on the Condensed Consolidated Statements of Operations of $34 million, $7 million and $4 million, respectively, in the nine months ended September 30, 2016, all of which related to the three months ended March 31, 2016. The $34 million was previously recorded in Sempra Energy Shareholders’ Equity in Common Stock prior to adoption of ASU 2016-09.

▪

The $34 million of excess tax benefits from share-based compensation for Sempra Energy related to the three months ended March 31, 2016 was previously classified as a financing activity on Sempra Energy’s Condensed Consolidated Statement of Cash Flows. As now required, the $34 million of excess tax benefits for Sempra Energy, as well as the $7 million for SDG&E and $4 million for SoCalGas, are included in Cash Flows From Operating Activities on the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2016. This amendment was adopted prospectively, and therefore, we have not adjusted the Condensed Consolidated Statements of Cash Flows for the prior period presented.

▪

As a result of the provision to recognize excess tax benefits in earnings, these benefits are no longer included in the calculation of diluted earnings per share (EPS) effective January 1, 2016. The weighted-average number of common shares outstanding for diluted EPS increased by 75 thousand shares for the three months ended March 31, 2016 and 98 thousand shares and 89 thousand shares for the three months and six months ended June 30, 2016, respectively. We discuss the impact further in Note 5 under “Earnings Per Share.”

Upon adoption of ASU 2016-09, we elected to continue estimating the number of awards expected to be forfeited and adjusting our estimate on an ongoing basis. All other provisions of ASU 2016-09 did not impact our financial condition, results of operations or cash flows.

ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”: ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments. The standard introduces an “expected credit loss” impairment model that requires immediate recognition of estimated credit losses expected to occur over the remaining life of most financial assets measured at amortized cost, including trade and other receivables, loan commitments and financial guarantees. ASU 2016-13 also requires use of an allowance to record estimated credit losses on available-for-sale debt securities and expands disclosure requirements regarding an entity’s assumptions, models and methods for estimating the credit losses.

For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the year in which we will adopt the standard and its effect on our ongoing financial reporting.

ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments”: ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows in order to reduce diversity in practice.

For public entities, ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, with early adoption permitted, and is effective for interim periods in the year of adoption. An entity that elects early adoption must adopt all of the amendments in the same period. Entities must apply the guidance retrospectively to all periods presented, but may apply it prospectively if retrospective application would be impracticable. We are currently evaluating the year in which we will adopt the standard and its effect on our ongoing financial reporting.

The entire 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.

Reference 1: 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 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
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-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22583-107794

Reference 4: 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 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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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 7: 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 8: 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=56949863&loc=d3e22499-107794

Reference 9: 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 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 270
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=51655806&loc=d3e725-108305

ACQUISITION AND DIVESTITURE ACTIVITY

ACQUISITION AND DIVESTITURE ACTIVITY

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

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

ACQUISITIONS

Sempra Mexico

Gasoductos de Chihuahua S. de R.L. de C.V. (GdC)

Background and Financing. In July 2015, IEnova entered into an agreement to purchase Petróleos Mexicanos’ (or PEMEX, the Mexican state-owned oil company) 50-percent interest in GdC. GdC develops and operates energy infrastructure in Mexico. On September 21, 2016, IEnova received approval for the acquisition from Mexico’s Comisión Federal de Competencia Económica (COFECE or Mexican Competition Commission). On September 26, 2016, IEnova completed the acquisition of PEMEX’s 50-percent interest in GdC for a purchase price of $1.144 billion (exclusive of $66 million of cash and cash equivalents acquired), plus the assumption of $364 million of long-term debt, increasing IEnova’s ownership interest in GdC to 100 percent. GdC became a consolidated subsidiary of IEnova on this date. Prior to the acquisition date, IEnova owned 50 percent of GdC and accounted for its interest as an equity method investment.

The assets involved in the acquisition include three natural gas pipelines, an ethane pipeline, and a liquid petroleum gas pipeline and associated storage terminal. The transaction excludes the Los Ramones Norte pipeline, in which IEnova will continue holding an indirect 25-percent ownership interest through GdC’s interest in Ductos y Energéticos del Norte, S. de R.L. de C.V. (DEN). As of the acquisition date, IEnova continues to hold a 50-percent interest in DEN through GdC and accounts for it as an equity method investment. PEMEX continues to hold its 50-percent interest in DEN, which enables us to have an ongoing relationship with PEMEX for joint development of new projects in the future.

We paid $1.078 billion in cash ($1.144 billion purchase price less $66 million of cash and cash equivalents acquired), which was funded using interim financing provided by Sempra Global through a $1.150 billion bridge loan to IEnova. Sempra Global funded the transaction using commercial paper borrowings. On October 19, 2016, IEnova completed a private follow-on offering of its common stock in the U.S. and outside of Mexico and a concurrent public common stock offering in Mexico, which generated net proceeds of approximately $1.57 billion or 29.86 billion Mexican pesos (based on an exchange rate of 18.96 pesos to 1.00 U.S. dollar as of October 13, 2016). IEnova used a portion of the proceeds from the offerings to fully repay the Sempra Global bridge loan in October 2016. We discuss the offerings in Note 13.

Purchase Price Allocation. We accounted for this business combination using the acquisition method of accounting whereby the total fair value of the business acquired is allocated to identifiable assets acquired and liabilities assumed based on respective fair values, with any excess recognized as goodwill at the Sempra Mexico reportable segment. We expect the GdC acquisition to have strategic benefits, including opportunities for asset optimization and expansion into areas such as the transportation and storage of refined products; and a larger platform and presence in Mexico to participate in energy sector reform, reflecting the value of goodwill recognized. None of the goodwill is expected to be deductible in Mexico or the United States for income tax purposes.

The following table summarizes the total fair value of the business combination and the values of the assets acquired and liabilities assumed at the date of acquisition:



PURCHASE PRICE ALLOCATION – GdC
(Dollars in millions)
		September 26, 2016
Fair value of business combination:
Cash consideration (fair value of total consideration)		$	1,144
Fair value of equity interest in GdC immediately prior to acquisition		1,144
Total fair value of business combination		$	2,288

Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		$	66
Accounts receivable(1)		39
Other current assets		6
Property, plant and equipment		1,248
Other noncurrent assets		1
Accounts payable		(11		)
Due to unconsolidated affiliates		(3		)
Current portion of long-term debt		(49		)
Fixed-price contracts and other derivatives, current		(6		)
Other current liabilities		(20		)
Long-term debt		(315		)
Asset retirement obligations		(5		)
Deferred income taxes		(8		)
Fixed-price contracts and other derivatives, noncurrent		(19		)
Other noncurrent liabilities		(11		)
Total identifiable net assets		913
Goodwill		1,375
Total fair value of business combination		$	2,288
(1)	We expect acquired accounts receivable to be substantially realizable in cash. Accounts receivable are net of negligible collection allowances.

Gain on Remeasurement of Equity Method Investment. Our results in the three months and nine months ended September 30, 2016, include a pretax gain of $617 million ($432 million after-tax) for the excess of the acquisition-date fair value of Sempra Mexico’s previously held equity interest in GdC over the carrying value of that interest, included as Remeasurement of Equity Method Investment on the Sempra Energy Condensed Consolidated Statements of Operations. We used a market approach to measure the acquisition-date fair value of IEnova’s equity interest in GdC immediately prior to the business acquisition. We discuss non-recurring fair value measures and the associated accounting impact of the GdC acquisition in Note 8.

Valuation of GdC’s Assets and Liabilities. Based on the nature of the Mexico regulatory environment and the oversight surrounding the establishment and maintenance of rates that GdC charges for services on its assets, GdC applies the guidance under the provisions of U.S. GAAP governing rate-regulated operations. Therefore, when determining the fair value of the acquired assets and liabilities assumed, we considered the effect of regulation on a market participant’s view of the highest and best use of the assets, in particular for the fair value of GdC’s property, plant and equipment (PP&E). Under U.S. GAAP, regulation is viewed as being a characteristic (restriction) of a regulated entity’s PP&E, and the impact of regulation is considered a fundamental input to measuring the fair value of PP&E in a business combination involving a regulated business. As a regulated business will generally earn a return of its costs and a reasonable return on its invested capital, but nothing more, the value of a regulated business is the value of its invested capital.

Under this premise, the fair value of the PP&E of a regulated business is generally assumed to be equivalent to carrying value for financial reporting purposes. Management has concluded that the carrying value of GdC’s PP&E is representative of fair value.

We applied an income approach, specifically the discounted cash flow method, to measure the fair value of debt and derivatives. We valued debt by discounting future debt payments by a market yield and we valued derivatives by discounting the future interest payments under the fixed and floating rates using current market data.

For substantially all other assets and liabilities, our analysis indicates that historical carrying value approximates fair value due to their short-term nature.

Impact on Operating Results. We incurred acquisition costs of $2 million in the three months and nine months ended September 30, 2016, and $1 million in the three months and nine months ended September 30, 2015. These costs are included in Operation and Maintenance Expense on the Sempra Energy Condensed Consolidated Statements of Operations.

For the three months and nine months ended September 30, 2016, the Sempra Energy Condensed Consolidated Statements of Operations include $3 million of revenues and $1 million of losses (after noncontrolling interest) from GdC since the September 26, 2016 date of acquisition.

The following table presents the pro forma results for the three months and nine months ended September 30, 2016 and 2015. The pro forma financial information combines the historical results of operations of Sempra Energy and GdC as though the acquisition occurred on January 1, 2015. The pro forma information is not necessarily indicative of results that would have been achieved had the business been combined during the periods presented or the results that we will experience going forward.



PRO FORMA INFORMATION – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Revenues	$	2,608	$	2,545	$	7,529	$	7,708
Net income	308		308		744		1,550
Earnings	299		255		685		1,280

The pro forma information above assumes:


▪	the related IEnova equity offerings, discussed above and in Note 13, occurred on January 1, 2015, which results in a change in Sempra Energy’s noncontrolling interest in IEnova from 18.9 percent to 33.6 percent for all periods presented;


▪	the proceeds from the IEnova equity offerings were used to fund the acquisition, instead of the bridge loan that was provided by Sempra Global to IEnova, therefore interest expense on the commercial paper borrowings supporting the bridge loan is excluded for all periods presented;


▪	equity earnings, net of income tax, from GdC that were previously included in Sempra Energy’s results have been excluded for all periods presented;


▪	the gain related to the remeasurement of our previously held equity interest in GdC has been included in the nine months ended September 30, 2015, and accordingly, the three months and nine months ended September 30, 2016 were adjusted to exclude the gain; and


▪	acquisition-related transaction costs have been included in the nine months ended September 30, 2015, and accordingly, the three months and nine months ended September 30, 2016 were adjusted to exclude them.

Most of Sempra Mexico’s operations, including GdC, use the U.S. dollar as their functional currency.

Sempra Renewables

In July 2016, Sempra Renewables acquired a 100-percent interest in the Apple Blossom Wind project, a 100-megawatt (MW) wind farm currently under construction in Huron County, Michigan, for a total purchase price of $22 million. Sempra Renewables paid $18 million in cash on the July 1, 2016 acquisition date and anticipates paying the remaining $4 million on achievement of certain construction milestones in the fourth quarter of 2016. The wind farm has a 15-year power purchase agreement with Consumers Energy that will commence upon commercial operation, expected in late 2017.

In March 2015, Sempra Renewables invested $8 million to acquire a 100-percent interest in the Black Oak Getty Wind project, a 78-MW wind farm currently under construction in Stearns County, Minnesota. The wind farm has a 20-year power purchase agreement with Minnesota Municipal Power Agency that will commence upon commercial operation, expected in late 2016.

PENDING ACQUISITION

Sempra Mexico

On September 5, 2016, IEnova entered into an agreement to acquire 100 percent of the equity interests in the Ventika I and Ventika II (collectively, Ventika) wind power generation facilities for an estimated purchase price of $852 million, which includes the assumption of approximately $477 million of existing debt, subject to normal adjustments at closing. Ventika is a 252-MW wind farm located in Nuevo Leon, Mexico, which began commercial operations in April 2016. All of Ventika’s generation capacity is contracted under 20-year, U.S. dollar-denominated power purchase agreements with five private off-takers. We expect the acquisition to be completed in the fourth quarter of 2016, subject to the satisfaction of customary closing conditions, including receipt of approval from the COFECE. The acquisition will be partially funded through debt financing at IEnova and a portion of the proceeds from the IEnova equity offerings that we discuss in Note 13.

ASSETS HELD FOR SALE

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 12 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.

Sempra Mexico

In February 2016, management approved a plan to market and sell Sempra Mexico’s Termoeléctrica de Mexicali (TdM), a 625-MW natural gas-fired power plant located in Mexicali, Baja California, Mexico. As a result, we stopped depreciating the plant and classified it as held for sale.

In connection with the sales process, in September 2016, Sempra Mexico obtained market information indicating that the fair value of TdM may be less than its carrying value. After performing an analysis of the information, Sempra Mexico reduced the carrying value of TdM by recognizing a noncash impairment charge of $131 million ($111 million after-tax) in the three months and nine months ended September 30, 2016 in Impairment Losses on Sempra Energy’s Condensed Consolidated Statements of Operations. We discuss non-recurring fair value measures and the associated accounting impact on TdM in Note 8.

In connection with classifying TdM as held for sale, we recognized $32 million in income tax expense in the first half of 2016 for a deferred Mexican income tax liability related to the excess of carrying value over the tax basis. As a result of reducing the carrying value of TdM in the third quarter of 2016, we reduced the deferred Mexican income tax liability by $31 million. As the Mexican income tax on this basis difference is based on current carrying value, foreign exchange rates and inflation, such amount could change in future periods until the date of sale. We expect to complete the sale in the first half of 2017.

At September 30, 2016, the carrying amounts of the major classes of assets and related liabilities held for sale associated with TdM are as follows:



ASSETS HELD FOR SALE AT SEPTEMBER 30, 2016
(Dollars in millions)
	Termoeléctrica de Mexicali
Cash and cash equivalents	$	1
Inventories	8
Other current assets	25
Deferred income taxes	5
Other assets	22
Property, plant and equipment, net	120
Total assets held for sale	$	181

Accounts payable	$	1
Other current liabilities	7
Asset retirement obligations	4
Other liabilities	23
Total liabilities held for sale	$	35

DIVESTITURES

Sempra Natural Gas

EnergySouth Inc.

In April 2016, Sempra Natural Gas signed a definitive agreement to sell 100 percent of the outstanding equity of EnergySouth Inc. (EnergySouth), the parent company of Mobile Gas and Willmut Gas, to Spire Inc., formerly The Laclede Group, Inc. On September 12, 2016, Sempra Natural Gas completed the sale for cash proceeds of $318 million, net of $2 million cash sold, with the buyer assuming debt of $67 million. We recognized a pretax gain on the sale of $130 million ($78 million after-tax) in the three months and nine months ended September 30, 2016, in Gain on Sale of Assets on Sempra Energy’s Condensed Consolidated Statements of Operations. As we discuss in Note 11, litigation and any associated liabilities and insurance receivable at Mobile Gas were retained by Mobile Gas at the close of the transaction. On September 12, 2016, Sempra Natural Gas deconsolidated EnergySouth.

The following table summarizes the deconsolidation:



DECONSOLIDATION OF SUBSIDIARY
(Dollars in millions)
		EnergySouth Inc.
Proceeds from sale, net of transaction costs		$	304
Cash		(2		)
Inventory		(3		)
Other current assets		(14		)
Regulatory assets		(12		)
Goodwill		(72		)
Other assets		(53		)
Property, plant and equipment, net		(199		)
Accounts payable		12
Other current liabilities		13
Long-term debt		67
Deferred income taxes		36
Regulatory liabilities		23
Asset retirement obligations		12
Other liabilities		18
Gain on sale of business(1)		$	130
(1)	Included in Gain on Sale of Assets on Sempra Energy’s Condensed Consolidated Statements of Operations.

Investment in Rockies Express Pipeline LLC

In March 2016, Sempra Natural Gas entered into an agreement to sell its 25-percent interest in Rockies Express Pipeline LLC (Rockies Express) to a subsidiary of Tallgrass Development, LP for cash consideration of $440 million, subject to adjustment at closing. The transaction closed in May 2016 for total cash proceeds of $443 million.

At the date of the agreement, the carrying value of Sempra Natural Gas’ investment in Rockies Express was $484 million. Following the execution of the agreement, Sempra Natural Gas measured the fair value of its equity method investment at $440 million, and recognized a $44 million ($27 million after-tax) impairment in Equity Earnings, Before Income Tax, on the Sempra Energy Condensed Consolidated Statement of Operations in the first quarter of 2016. We discuss non-recurring fair value measures and the associated accounting impact on our investment in Rockies Express in Note 8.

In the second quarter of 2016, Sempra Natural Gas permanently released pipeline capacity that it held with Rockies Express and others, as we discuss in Note 11.

Mesquite Power Plant

In April 2015, Sempra Natural Gas sold the remaining 625-MW block of the Mesquite Power plant, together with a related power sales contract, for net cash proceeds of $347 million. We recognized a pretax gain on the sale of $61 million ($36 million after-tax), included in Gain on Sale of Assets on the Sempra Energy Condensed Consolidated Statements of Operations for the nine months ended September 30, 2015.

INVESTMENTS IN UNCONSOLIDATED ENTITIES	9 Months Ended
INVESTMENTS IN UNCONSOLIDATED ENTITIES	Sep. 30, 2016
Investments [Abstract]
Investments in Unconsolidated Entities	INVESTMENTS IN UNCONSOLIDATED ENTITIES We provide additional information concerning our equity method investments in Note 3 above and in Notes 3 and 4 of the Notes to Consolidated Financial Statements in the Annual Report. SEMPRA MEXICO As we discuss in Note 3, on September 26, 2016, IEnova completed the acquisition of the remaining 50-percent interest in GdC and GdC became a consolidated subsidiary. Prior to the acquisition date, IEnova owned 50 percent of GdC and accounted for its interest as an equity method investment. As of the acquisition date, IEnova accounts for GdC’s 50-percent interest in DEN as an equity method investment. In June 2016, Infraestructura Marina del Golfo (IMG), a joint venture between IEnova and a subsidiary of TransCanada Corporation (TransCanada), was awarded the right to build, own and operate the Sur de Texas – Tuxpan natural gas pipeline by the Federal Electricity Commission (Comisión Federal de Electricidad, or CFE). IEnova has a 40-percent interest in the project and TransCanada owns the remaining 60-percent interest. The project is expected to be completed in late 2018 and is fully contracted under a 25-year natural gas transportation service contract with the CFE. During the nine months ended September 30, 2016, Sempra Mexico invested cash of $56 million in the joint venture. SEMPRA RENEWABLES Sempra Renewables invested cash of $18 million in its joint ventures during both the nine months ended September 30, 2016 and 2015. SEMPRA NATURAL GAS Sempra Natural Gas capitalized $36 million of interest during both the nine months ended September 30, 2016 and 2015 related to its investment in Cameron LNG Holdings, LLC (Cameron LNG JV), which has not commenced planned principal operations. In addition, during the nine months ended September 30, 2015, Sempra Natural Gas invested cash of $10 million in the joint venture. In May 2016, Sempra Natural Gas sold its 25-percent interest in Rockies Express, as we discuss in Note 3. In April 2015, Sempra Natural Gas invested $113 million of cash in Rockies Express to repay project debt that matured in early 2015. GUARANTEES We discuss guarantees that we have provided in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. These guarantees have a maximum aggregate amount of $4.5 billion and an aggregate carrying value of $58 million at September 30, 2016.

OTHER FINANCIAL DATA

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other Financial Data

OTHER FINANCIAL DATA

INVENTORIES

The components of inventories by segment are as follows:



INVENTORY BALANCES
(Dollars in millions)
	Natural gas				Liquefied natural gas				Materials and supplies				Total
	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015
SDG&E	$	1	$	6	$	—	$	—	$	72	$	69	$	73	$	75
SoCalGas(1)	24		49		—		—		53		30		77		79
Sempra South American Utilities	—		—		—		—		46		30		46		30
Sempra Mexico	—		—		4		3		2		10		6		13
Sempra Renewables	—		—		—		—		3		3		3		3
Sempra Natural Gas	94		94		3		3		—		1		97		98
Sempra Energy Consolidated	$	119	$	149	$	7	$	6	$	176	$	143	$	302	$	298


(1)	At both September 30, 2016 and December 31, 2015, SoCalGas’ natural gas inventory for core customers is net of an inventory loss related to the Aliso Canyon natural gas leak, which we discuss in Note 11.

Temporary LIFO Liquidation

The California Utilities value natural gas inventory using 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. These differences are generally temporary, but may become permanent. For interim periods, temporary LIFO liquidation represents the difference between the carrying value of natural gas inventory withdrawn from storage during the period for delivery to customers and the projected cost of the replacement of that inventory by year end. At September 30, 2016, temporary LIFO liquidation of $8 million is recorded in Other Assets on the Sempra Energy and SoCalGas Condensed Consolidated Balance Sheets. SoCalGas estimates that by December 31, 2016, temporary LIFO liquidation may not be replenished, and may result in a permanent LIFO liquidation of approximately $10 million to $15 million. This change in natural gas cost would be recovered in rates.

GOODWILL

We discuss goodwill in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.

Changes in the carrying amount of goodwill on the Sempra Energy Consolidated Balance Sheets are as follows:



GOODWILL
(Dollars in millions)
		Sempra South American Utilities		Sempra Mexico		Sempra Natural Gas			Total
Balance at December 31, 2015		$	722	$	25	$	72		$	819
Acquisition of business		—		1,375		—			1,375
Sale of business		—		—		(72		)	(72		)
Foreign currency translation(1)		28		—		—			28
Balance at September 30, 2016		$	750	$	1,400	$	—		$	2,150
(1)	We record the offset of this fluctuation to Other Comprehensive Income (Loss).

In September 2016, Sempra Mexico recorded goodwill of $1,375 million in connection with the acquisition of GdC, and Sempra Natural Gas reduced goodwill by $72 million in connection with the sale of EnergySouth. We discuss this acquisition and divestiture in Note 3.

VARIABLE INTEREST ENTITIES

We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based on 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

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.

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.

Otay Mesa VIE

SDG&E has an agreement to purchase power generated at the Otay Mesa Energy Center (OMEC), a 605-MW generating facility. In addition to tolling, the agreement provides SDG&E with the option to purchase OMEC 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, holds no equity in OMEC LLC 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 $50 million at September 30, 2016 and $53 million at December 31, 2015 is included on the Condensed Consolidated Balance Sheets in Other Noncontrolling Interests for Sempra Energy and in Noncontrolling Interest for SDG&E.

OMEC LLC has a loan outstanding of $307 million at September 30, 2016, the proceeds of which were used for the construction of OMEC. The loan is with third party lenders and is secured by OMEC’s property, plant and equipment. SDG&E is not a party to the loan agreement and does not have any additional implicit or explicit financial responsibility to OMEC LLC. The loan fully matures in April 2019 and bears interest at rates varying with market rates. In addition, OMEC LLC has entered into interest rate swap agreements to moderate its exposure to interest rate changes. We provide additional information concerning the interest rate swaps in Note 7.

The Condensed Consolidated Statements of Operations 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 captions in the table below generally correspond to SDG&E’s Condensed Consolidated Statements of Operations.



AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Operating expenses
Cost of electric fuel and purchased power	$	(28	)	$	(27	)	$	(62	)	$	(66	)
Operation and maintenance	4			3			23			13
Depreciation and amortization	8			7			25			19
Total operating expenses	(16		)	(17		)	(14		)	(34		)
Operating income	16			17			14			34
Interest expense	(5		)	(5		)	(15		)	(14		)
Income (loss) before income taxes/Net income (loss)	11			12			(1		)	20
(Earnings) losses attributable to noncontrolling interest	(11		)	(12		)	1			(20		)
Earnings attributable to common shares	$	—		$	—		$	—		$	—

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 of a variable interest entity at September 30, 2016. In addition to the tolling agreements described above, other variable interests involve various elements of fuel and power costs, 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. We provide additional information about power purchase agreements with peaker plant facilities that are VIEs of which SDG&E is not the primary beneficiary in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report.

We provide additional information regarding Otay Mesa VIE in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.

Sempra Natural Gas

Sempra Energy’s equity method investment in Cameron LNG JV is a VIE principally 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 JV. We will continue to evaluate Cameron LNG JV for any changes that may impact our determination of the primary beneficiary. The carrying value of our investment in Cameron LNG JV, including amounts recognized in Accumulated Other Comprehensive Income (Loss) (AOCI) related to interest-rate cash flow hedges at Cameron LNG JV, was $838 million at September 30, 2016 and $983 million at December 31, 2015. Our maximum exposure to loss includes the carrying value of our investment and the guarantees discussed above in Note 4 and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.

Other Variable Interest Entities

Sempra Energy’s other operating units also enter into arrangements which could include variable interests. We evaluate these arrangements and applicable entities based on 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; however, their financial statements are not material to the financial statements of Sempra Energy. 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.

PENSION AND OTHER POSTRETIREMENT BENEFITS

Net Periodic Benefit Cost

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



NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	Three months ended September 30,
	2016			2015			2016			2015
Service cost	$	26		$	27		$	4		$	5
Interest cost	40			38			9			10
Expected return on assets	(41		)	(42		)	(17		)	(17		)
Amortization of:
Prior service cost (credit)	2			3			—			(1		)
Actuarial loss (gain)	10			9			(1		)	—
Settlements	—			4			—			—
Regulatory adjustment	(28		)	(27		)	5			4
Total net periodic benefit cost	$	9		$	12		$	—		$	1

	Nine months ended September 30,
	2016			2015			2016			2015
Service cost	$	81		$	86		$	15		$	19
Interest cost	120			116			31			33
Expected return on assets	(124		)	(130		)	(52		)	(51		)
Amortization of:
Prior service cost (credit)	8			8			—			(2		)
Actuarial loss (gain)	23			28			(1		)	—
Settlements	—			4			—			—
Regulatory adjustment	(84		)	(86		)	9			4
Total net periodic benefit cost	$	24		$	26		$	2		$	3



NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	Three months ended September 30,
	2016			2015			2016			2015
Service cost	$	7		$	6		$	1		$	1
Interest cost	10			9			2			2
Expected return on assets	(12		)	(14		)	(3		)	(2		)
Amortization of:
Actuarial loss	2			3			—			—
Regulatory adjustment	(7		)	(3		)	—			(1		)
Total net periodic benefit cost	$	—		$	1		$	—		$	—

	Nine months ended September 30,
	2016			2015			2016			2015
Service cost	$	22		$	22		$	3		$	5
Interest cost	31			29			6			6
Expected return on assets	(37		)	(41		)	(8		)	(8		)
Amortization of:
Prior service cost	1			1			2			2
Actuarial loss (gain)	7			7			(1		)	—
Regulatory adjustment	(22		)	(15		)	(2		)	(5		)
Total net periodic benefit cost	$	2		$	3		$	—		$	—



NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	Three months ended September 30,
	2016			2015			2016			2015
Service cost	$	16		$	17		$	4		$	3
Interest cost	26			25			7			8
Expected return on assets	(26		)	(25		)	(15		)	(14		)
Amortization of:
Prior service cost (credit)	3			2			(1		)	(2		)
Actuarial loss	3			5			—			—
Regulatory adjustment	(21		)	(24		)	5			5
Total net periodic benefit cost	$	1		$	—		$	—		$	—

	Nine months ended September 30,
	2016			2015			2016			2015
Service cost	$	51		$	55		$	11		$	13
Interest cost	76			74			24			26
Expected return on assets	(78		)	(79		)	(43		)	(42		)
Amortization of:
Prior service cost (credit)	7			6			(3		)	(6		)
Actuarial loss	8			16			—			—
Regulatory adjustment	(62		)	(71		)	11			9
Total net periodic benefit cost	$	2		$	1		$	—		$	—

Benefit Plan Contributions

The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2016:



BENEFIT PLAN CONTRIBUTIONS
(Dollars in millions)
	Sempra Energy Consolidated		SDG&E		SoCalGas
Contributions through September 30, 2016:
Pension plans	$	24	$	2	$	1
Other postretirement benefit plans	3		—		1
Total expected contributions in 2016:
Pension plans	$	124	$	7	$	73
Other postretirement benefit plans	6		2		1

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 $439 million and $464 million at September 30, 2016 and December 31, 2015, respectively.

EARNINGS PER SHARE

The following table provides EPS computations for the three months and nine months ended September 30, 2016 and 2015. Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.



EARNINGS PER SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Numerator:
Earnings/Income attributable to common shares	$	622	$	248	$	991	$	980

Denominator:
Weighted-average common shares outstanding for basic EPS(1)	250,386		248,432		250,073		248,090
Dilutive effect of stock options, restricted stock awards and restricted stock units(2)	2,019		2,592		1,903		2,575
Weighted-average common shares outstanding for diluted EPS(2)	252,405		251,024		251,976		250,665

Earnings per share:
Basic	$	2.48	$	1.00	$	3.96	$	3.95
Diluted	2.46		0.99		3.93		3.91

(1)

Includes 572 and 504 average fully vested restricted stock units held in our Deferred Compensation Plan for the three months ended September 30, 2016 and 2015, respectively, and 565 and 486 of such units for the nine months ended September 30, 2016 and 2015, respectively. These fully vested restricted stock units are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued.


(2)	Reflects the prospective adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2. Prior to the adoption, the dilutive effect of stock options, restricted stock awards and restricted stock units was reduced by excess tax benefits assumed to be used to repurchase shares on the open market.

The potentially dilutive impact from stock options, restricted stock awards (RSAs) and restricted stock units (RSUs) is calculated under the treasury stock method. Under this method, proceeds based on the exercise price and unearned compensation are assumed to be used to repurchase shares on the open market at the average market price for the period, reducing the number of potential new shares to be issued and sometimes causing an antidilutive effect. The computation of diluted EPS excludes 2,426 RSUs for the nine months ended September 30, 2016 because to include them would be antidilutive for the period. However, these RSUs could potentially dilute basic EPS in the future. There were no antidilutive RSUs for the three months ended September 30, 2016, and there were no antidilutive stock options or RSAs for the three months and nine months ended September 30, 2016. There were no antidilutive RSUs, stock options or RSAs for the three months and nine months ended September 30, 2015.

Prior to adoption of ASU 2016-09 as of January 1, 2016, which we discuss in Note 2, excess tax benefits were also assumed to be used to repurchase shares on the open market when applying the treasury stock method. The excess tax benefits are tax deductions we would receive upon the assumed exercise of stock options and assumed vesting of RSAs and RSUs in excess of the deferred income taxes we recorded related to the compensation expense on such stock options, awards and units. Tax shortfalls occur when the assumed tax deductions are less than recorded deferred income taxes. Upon adoption of ASU 2016-09, as a result of the provision to recognize excess tax benefits and shortfalls in earnings, these benefits and shortfalls are no longer included in the calculation of diluted EPS beginning January 1, 2016.

Our performance-based RSUs include awards that vest at the end of three-year (for awards granted during or after 2015) or four-year performance periods based on Sempra Energy’s total return to shareholders relative to that of specified market indices (Total Shareholder Return or TSR RSUs) or based on the compound annual growth rate of Sempra Energy’s EPS (EPS RSUs). The comparative market indices for the TSR RSUs are the Standard & Poor’s (S&P) 500 Utilities Index and the S&P 500 Index. We primarily use long-term analyst consensus growth estimates for S&P 500 Utilities Index peer companies to develop our EPS RSU targets. TSR RSUs represent the right to receive from zero to 1.5 shares (2.0 shares for awards granted during or after 2014) of Sempra Energy common stock if performance targets are met. EPS RSUs represent the right to receive from zero to 2.0 shares of Sempra Energy common stock if performance targets are met. If performance falls between the targets specified for each performance metric, we calculate the payout using linear interpolation. 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. We discuss performance-based RSU awards further in Note 8 of the Notes to Consolidated Financial Statements in our Annual Report.

Our RSAs, which are solely service-based, and those RSUs that are service-based or issued in connection with certain other performance goals represent the right to receive up to 1.0 share if the service requirements or certain other vesting conditions are met. These RSAs and RSUs have the same dividend equivalent rights as the performance-based RSUs described above. 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 TSR RSUs and EPS 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 TSR RSU shares may vary widely from period-to-period. If it were assumed that performance goals for all performance-based 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 2,273,102 and 2,001,020 for the three months ended September 30, 2016 and 2015, respectively, and 2,406,512 and 2,047,656 for the nine months ended September 30, 2016 and 2015, respectively.

SHARE-BASED COMPENSATION

We discuss our share-based compensation plans in Note 8 of the Notes to Consolidated Financial Statements in the Annual Report. We recorded share-based compensation expense, net of income taxes, of $7 million for each of the three months ended September 30, 2016 and 2015, and $20 million and $22 million for the nine months ended September 30, 2016 and 2015, respectively. Pursuant to our Sempra Energy share-based compensation plans, Sempra Energy’s compensation committee granted 373,070 TSR RSUs, 94,760 EPS RSUs and 95,876 service-based RSUs during the nine months ended September 30, 2016, primarily in January.

During the nine months ended September 30, 2016, IEnova issued 378,367 RSUs from the IEnova 2013 Long-Term Incentive Plan, under which awards are cash settled at vesting based on the price of IEnova common stock.

CAPITALIZED FINANCING COSTS

Capitalized financing costs include capitalized interest costs and AFUDC related to both debt and equity financing of construction projects. We capitalize interest costs incurred to finance capital projects and interest on equity method investments that have not commenced planned principal operations.

The following table shows capitalized financing costs for the three months and nine months ended September 30, 2016 and 2015.



CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Sempra Energy Consolidated:
AFUDC related to debt	$	7	$	6	$	22	$	19
AFUDC related to equity	29		26		86		84
Other capitalized interest	26		18		64		52
Total Sempra Energy Consolidated	$	62	$	50	$	172	$	155
SDG&E:
AFUDC related to debt	$	4	$	3	$	12	$	10
AFUDC related to equity	11		9		35		27
Total SDG&E	$	15	$	12	$	47	$	37
SoCalGas:
AFUDC related to debt	$	3	$	3	$	10	$	9
AFUDC related to equity	10		10		30		29
Other capitalized interest	1		1		1		1
Total SoCalGas	$	14	$	14	$	41	$	39

COMPREHENSIVE INCOME

The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to noncontrolling interests:



CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Foreign currency translation adjustments			Financial instruments			Pension and other postretirement benefits			Total accumulated other comprehensive income (loss)
	Three months ended September 30, 2016 and 2015
2016:
Balance as of June 30, 2016	$	(503	)	$	(264	)	$	(85	)	$	(852	)
Other comprehensive (loss) income before
reclassifications	(28		)	8			—			(20		)
Amounts reclassified from accumulated other
comprehensive income	—			5			2			7
Net other comprehensive (loss) income	(28		)	13			2			(13		)
Balance as of September 30, 2016	$	(531	)	$	(251	)	$	(83	)	$	(865	)
2015:
Balance as of June 30, 2015	$	(427	)	$	(86	)	$	(83	)	$	(596	)
Other comprehensive loss before
reclassifications	(92		)	(79		)	—			(171		)
Amounts reclassified from accumulated other
comprehensive income	—			1			5			6
Net other comprehensive (loss) income	(92		)	(78		)	5			(165		)
Balance as of September 30, 2015	$	(519	)	$	(164	)	$	(78	)	$	(761	)

	Nine months ended September 30, 2016 and 2015
2016:
Balance as of December 31, 2015	$	(582	)	$	(137	)	$	(87	)	$	(806	)
Other comprehensive income (loss) before
reclassifications	51			(122		)	—			(71		)
Amounts reclassified from accumulated other
comprehensive income	—			8			4			12
Net other comprehensive income (loss)	51			(114		)	4			(59		)
Balance as of September 30, 2016	$	(531	)	$	(251	)	$	(83	)	$	(865	)
2015:							.
Balance as of December 31, 2014	$	(322	)	$	(90	)	$	(85	)	$	(497	)
Other comprehensive loss before
reclassifications	(197		)	(76		)	—			(273		)
Amounts reclassified from accumulated other
comprehensive income	—			2			7			9
Net other comprehensive (loss) income	(197		)	(74		)	7			(264		)
Balance as of September 30, 2015	$	(519	)	$	(164	)	$	(78	)	$	(761	)


(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)
	Financial instruments			Pension and other postretirement benefits			Total accumulated other comprehensive income (loss)
	Three months ended September 30, 2016 and 2015
2016:
Balance as of June 30, 2016	$	(14	)	$	(5	)	$	(19	)
Amounts reclassified from accumulated other
comprehensive income	1			—			1
Net other comprehensive income	1			—			1
Balance as of September 30, 2016	$	(13	)	$	(5	)	$	(18	)
2015:
Balance as of June 30 and September 30, 2015	$	(14	)	$	(4	)	$	(18	)

	Nine months ended September 30, 2016 and 2015
2016:
Balance as of December 31, 2015	$	(14	)	$	(5	)	$	(19	)
Amounts reclassified from accumulated other
comprehensive income	1			—			1
Net other comprehensive income	1			—			1
Balance as of September 30, 2016	$	(13	)	$	(5	)	$	(18	)
2015:
Balance as of December 31, 2014 and September 30, 2015	$	(14	)	$	(4	)	$	(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)
Details about accumulated other comprehensive income (loss) components	Amounts reclassified from accumulated other comprehensive income (loss)						Affected line item on Condensed Consolidated Statements of Operations
	Three months ended September 30,
	2016			2015
Sempra Energy Consolidated:
Financial instruments:
Interest rate and foreign exchange instruments	$	4		$	5		Interest Expense
Interest rate instruments	3			3			Equity Earnings, Before Income Tax
Interest rate and foreign exchange instruments	7			—			Remeasurement of Equity Method Investment
Interest rate and foreign exchange instruments	(2		)	—			Equity Earnings, Net of Income Tax
Commodity contracts not subject to rate recovery	—			(3		)	Revenues: Energy-Related Businesses
Total before income tax	12			5
	(3		)	(1		)	Income Tax Expense
Net of income tax	9			4
	(4		)	(3		)	Earnings Attributable to Noncontrolling Interests
	$	5		$	1
Pension and other postretirement benefits:
Amortization of actuarial loss	$	4		$	7		See note (1) below
	(2		)	(2		)	Income Tax Expense
Net of income tax	$	2		$	5

Total reclassifications for the period, net of tax	$	7		$	6
SDG&E:
Financial instruments:
Interest rate instruments	$	3		$	3		Interest Expense
	(3		)	(3		)	(Earnings) Losses Attributable to Noncontrolling Interest
Total reclassifications for the period, net of tax	$	—		$	—
SoCalGas:
Financial instruments:
Interest rate instruments	$	1		$	—		Interest Expense
Total reclassifications for the period, net of tax	$	1		$	—


(1)	Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above).



RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about accumulated other comprehensive income (loss) components	Amounts reclassified from accumulated other comprehensive income (loss)						Affected line item on Condensed Consolidated Statements of Operations
	Nine months ended September 30,
	2016			2015
Sempra Energy Consolidated:
Financial instruments:
Interest rate and foreign exchange instruments	$	11		$	14		Interest Expense
Interest rate instruments	8			9			Equity Earnings, Before Income Tax
Interest rate and foreign exchange instruments	7			—			Remeasurement of Equity Method Investment
Interest rate and foreign exchange instruments	4			—			Equity Earnings, Net of Income Tax
Commodity contracts not subject to rate recovery	(7		)	(10		)	Revenues: Energy-Related Businesses
Total before income tax	23			13
	(4		)	(1		)	Income Tax Expense
Net of income tax	19			12
	(11		)	(10		)	Earnings Attributable to Noncontrolling Interests
	$	8		$	2
Pension and other postretirement benefits:
Amortization of actuarial loss	$	8		$	11		See note (1) below
	(4		)	(4		)	Income Tax Expense
Net of income tax	$	4		$	7

Total reclassifications for the period, net of tax	$	12		$	9
SDG&E:
Financial instruments:
Interest rate instruments	$	9		$	9		Interest Expense
	(9		)	(9		)	(Earnings) Losses Attributable to Noncontrolling Interest
Total reclassifications for the period, net of tax	$	—		$	—
SoCalGas:
Financial instruments:
Interest rate instruments	$	1		$	—		Interest Expense
Total reclassifications for the period, net of tax	$	1		$	—


(1)	Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above).

For the three months and nine months ended September 30, 2016 and 2015, Other Comprehensive Income (Loss) (OCI), excluding amounts attributable to noncontrolling interests, at SDG&E was negligible.

SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS

The following tables provide reconciliations of changes in Sempra Energy’s, SDG&E’s and SoCalGas’ shareholders’ equity and noncontrolling interests for the nine months ended September 30, 2016 and 2015.



SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Sempra Energy shareholders’ equity			Non- controlling interests(1)			Total equity
Balance at December 31, 2015	$	11,809		$	770		$	12,579
Cumulative-effect adjustment from change in accounting principle	107			—			107
Comprehensive income	933			117			1,050
Preferred dividends of subsidiary	(1		)	—			(1		)
Share-based compensation expense	38			—			38
Common stock dividends declared	(565		)	—			(565		)
Issuances of common stock	80			—			80
Repurchases of common stock	(55		)	—			(55		)
Equity contributed by noncontrolling interests	—			2			2
Distributions to noncontrolling interests	—			(44		)	(44		)
Balance at September 30, 2016	$	12,346		$	845		$	13,191
Balance at December 31, 2014	$	11,326		$	774		$	12,100
Comprehensive income	717			56			773
Preferred dividends of subsidiary	(1		)	—			(1		)
Share-based compensation expense	39			—			39
Common stock dividends declared	(520		)	—			(520		)
Issuances of common stock	82			—			82
Repurchases of common stock	(74		)	—			(74		)
Tax benefit related to share-based compensation	56			—			56
Equity contributed by noncontrolling interest	—			1			1
Distributions to noncontrolling interests	—			(60		)	(60		)
Balance at September 30, 2015	$	11,625		$	771		$	12,396


(1)	Noncontrolling interests include the preferred stock of SoCalGas and other noncontrolling interests as listed in the table below under “Other Noncontrolling Interests.”



SHAREHOLDER’S EQUITY AND NONCONTROLLING INTEREST – SDG&E
(Dollars in millions)
	SDG&E shareholder’s equity			Non- controlling interest			Total equity
Balance at December 31, 2015	$	5,223		$	53		$	5,276
Cumulative-effect adjustment from change in accounting principle	23			—			23
Comprehensive income	419			3			422
Common stock dividends declared	(175		)	—			(175		)
Equity contributed by noncontrolling interest	—			1			1
Distributions to noncontrolling interest	—			(7		)	(7		)
Balance at September 30, 2016	$	5,490		$	50		$	5,540
Balance at December 31, 2014	$	4,932		$	60		$	4,992
Comprehensive income	443			20			463
Common stock dividends declared	(150		)	—			(150		)
Distributions to noncontrolling interest	—			(16		)	(16		)
Balance at September 30, 2015	$	5,225		$	64		$	5,289



SHAREHOLDERS’ EQUITY – SOCALGAS
(Dollars in millions)
	SoCalGas shareholders’ equity
Balance at December 31, 2015	$	3,149
Cumulative-effect adjustment from change in accounting principle	15
Comprehensive income	200
Preferred stock dividends declared	(1		)
Balance at September 30, 2016	$	3,363
Balance at December 31, 2014	$	2,781
Comprehensive income	277
Preferred stock dividends declared	(1		)
Common stock dividends declared	(50		)
Balance at September 30, 2015	$	3,007

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 Condensed Consolidated Balance Sheets. Earnings or losses attributable to noncontrolling interests are separately identified on the Condensed Consolidated Statements of Operations, and comprehensive income or loss attributable to noncontrolling interests is separately identified on the Condensed Consolidated Statements of Comprehensive Income (Loss).

Preferred Stock

At Sempra Energy, the preferred stock of SoCalGas is presented as a noncontrolling interest and preferred stock dividends are charges against income related to noncontrolling interests. We provide additional information concerning preferred stock in Note 11 of the Notes to Consolidated Financial Statements in the Annual Report.

Other Noncontrolling Interests

At September 30, 2016 and December 31, 2015, 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 Condensed Consolidated Balance Sheets:



OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
	Percent ownership held by others
	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015
SDG&E:
Otay Mesa VIE	100	%	100	%	$	50	$	53
Sempra South American Utilities:
Chilquinta Energía subsidiaries(1)	23.1 – 43.4		23.5 – 43.4		22		21
Luz del Sur	16.4		16.4		171		164
Tecsur	9.8		9.8		4		4
Sempra Mexico:
IEnova(2)	18.9		18.9		537		468
Sempra Natural Gas:
Bay Gas Storage Company, Ltd.	9.1		9.1		26		25
Liberty Gas Storage, LLC	23.3		23.2		14		14
Southern Gas Transmission Company	49.0		49.0		1		1
Total Sempra Energy					$	825	$	750


(1)	Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.

(2) On October 19, 2016, IEnova completed follow-on equity offerings that increased the 18.9 percent ownership held by others to 33.6 percent, as we discuss in Note 13.

Sempra Renewables

Sempra Renewables entered into a membership interest purchase agreement with a financial institution to form a portfolio tax equity partnership that includes Copper Mountain Solar 4, Mesquite Solar 2 and Mesquite Solar 3 (the tax equity portfolio). Under the purchase agreement, the formation of the portfolio tax equity partnership is subject to conditions precedent, including funding dates that correspond to each project’s completion. In July 2016, Sempra Renewables received the first funding in the form of a $78 million cash deposit, which has been recorded in Deferred Credits and Other on Sempra Energy’s Condensed Consolidated Balance Sheet at September 30, 2016. We expect the final funding date under the purchase agreement and formation of the portfolio tax equity partnership to occur in December 2016.

Sempra Renewables also entered into a membership interest purchase agreement with a financial institution to form a tax equity partnership involving the Black Oak Getty Wind project. The final funding date under the purchase agreement and formation of the tax equity partnership are subject to conditions precedent that we expect to occur in December 2016.

Sempra Renewables will continue to consolidate the tax equity portfolio and the Black Oak Getty Wind project. After the final funding dates, Sempra Renewables will report noncontrolling interests representing the financial institutions’ respective membership interests in the tax equity partnerships.

TRANSACTIONS WITH AFFILIATES

Amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas are as follows:



AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	September 30, 2016			December 31, 2015
Sempra Energy Consolidated:
Total due from various unconsolidated affiliates - current	$	8		$	6

Sempra South American Utilities(1):
Eletrans S.A. and Eletrans II S.A.:
4% Note(2)	$	83		$	72
Other related party receivables	1			—
Sempra Mexico(1):
Affiliate of joint venture with DEN:
Note due November 13, 2017(3)	3			3
Note due November 14, 2018(3)	43			42
Note due November 14, 2018(3)	35			34
Note due November 14, 2018(3)	8			8
Energía Sierra Juárez:
Note due June 15, 2018(4)	14			24
Sempra Natural Gas:
Cameron LNG JV	8			3
Total due from unconsolidated affiliates - noncurrent	$	195		$	186

Total due to various unconsolidated affiliates - current	$	(9	)	$	(14	)
SDG&E:
Sempra Energy(5)	$	88		$	—
Other affiliates	—			1
Total due from unconsolidated affiliates - current	$	88		$	1

Sempra Energy	$	—		$	(34	)
SoCalGas	(5		)	(13		)
Other affiliates	(5		)	(8		)
Total due to unconsolidated affiliates - current	$	(10	)	$	(55	)

Income taxes due from Sempra Energy(6)	$	109		$	28
SoCalGas:
Sempra Energy(7)	$	30		$	35
SDG&E	5			13
Total due from unconsolidated affiliates - current	$	35		$	48

Income taxes due from Sempra Energy(6)	$	16		$	1


(1)	Amounts include principal balances plus accumulated interest outstanding.


(2)	U.S. dollar-denominated loan, at a fixed interest rate with no stated maturity date, to provide project financing for the construction of transmission lines at Eletrans S.A. and Eletrans II S.A., both of which are joint ventures of Chilquinta Energía.


(3)	U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 450 basis points (5.03 percent at September 30, 2016), to finance the Los Ramones Norte pipeline project.


(4)	U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 637.5 basis points (6.91 percent at September 30, 2016), to finance the first phase of the Energía Sierra Juárez wind project, which is a joint venture of IEnova.


(5)	At September 30, 2016, net receivable included outstanding advances to Sempra Energy of $107 million at an interest rate of 0.60 percent.


(6)	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 each company having always filed a separate return.


(7)	At September 30, 2016, net receivable included outstanding advances to Sempra Energy of $51 million at an interest rate of 0.57 percent. At December 31, 2015, net receivable included outstanding advances to Sempra Energy of $50 million at an interest rate of 0.11 percent.

Revenues and cost of sales from unconsolidated affiliates are as follows:



REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
REVENUES
Sempra Energy Consolidated	$	5	$	6	$	15	$	22
SDG&E	2		3		5		8
SoCalGas	21		19		56		55
COST OF SALES
Sempra Energy Consolidated	$	10	$	29	$	60	$	78
SDG&E	16		15		46		33

Guarantees

Sempra Energy has provided guarantees to certain of its solar and wind farm joint ventures and entered into completion guarantees related to the financing of the Cameron LNG JV project, as we discuss above in Note 4 and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.

OTHER INCOME, NET

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



OTHER INCOME, NET
(Dollars in millions)
	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Sempra Energy Consolidated:
Allowance for equity funds used during construction	$	29		$	26		$	86		$	84
Investment gains (losses)(1)	9			(12		)	29			(5		)
Losses on interest rate and foreign exchange instruments, net	(11		)	(4		)	(23		)	(7		)
Foreign currency transaction losses	(2		)	(3		)	(9		)	(6		)
Sale of other investments	1			2			3			8
Electrical infrastructure relocation income(2)	1			—			4			4
Regulatory interest, net(3)	1			1			4			3
Sundry, net	(2		)	2			4			7
Total	$	26		$	12		$	98		$	88
SDG&E:
Allowance for equity funds used during construction	$	11		$	9		$	35		$	27
Regulatory interest, net(3)	—			1			3			3
Sundry, net	—			(2		)	—			(4		)
Total	$	11		$	8		$	38		$	26
SoCalGas:
Allowance for equity funds used during construction	$	10		$	10		$	30		$	29
Regulatory interest, net(3)	1			—			1			—
Sundry, net	(3		)	(2		)	(7		)	(4		)
Total	$	8		$	8		$	24		$	25


(1)	Represents investment gains (losses) 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.

INCOME TAXES



INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
	Income tax expense		Effective income tax rate		Income tax expense (benefit)			Effective income tax rate
	Three months ended September 30,
	2016				2015
Sempra Energy Consolidated	$	282	29	%	$	15		6	%
SDG&E	91		32		75			29
SoCalGas	21		100		(20		)	71

	Nine months ended September 30,
	2016				2015
Sempra Energy Consolidated	$	284	21	%	$	276		22	%
SDG&E	204		33		217			32
SoCalGas	75		27		91			25

Sempra Energy, SDG&E and SoCalGas record income taxes for interim periods utilizing a forecasted effective tax rate anticipated for the full year, as required by U.S. GAAP. The income tax effect of items that can be reliably forecasted is factored into the forecasted effective tax rate, and the impact is recognized proportionately over the year. Items that cannot be reliably forecasted (e.g., resolution of prior years’ income tax items, remeasurement of deferred tax asset valuation allowances, Mexican currency translation and inflation adjustments, deferred income tax benefits associated with impairment of a book investment and certain impacts of regulatory matters) are recorded in the interim period in which they actually occur, which can result in variability in the effective income tax rate.

For SDG&E and SoCalGas, the California Public Utilities Commission (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 impacts 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 assets


▪	the equity portion of AFUDC


▪	a portion of the cost of removal of utility plant assets


▪	utility self-developed software expenditures


▪	depreciation on a certain portion of utility plant assets


▪	state income taxes

The AFUDC related to equity recorded for regulated construction projects at Sempra Mexico is also subject to flow-through treatment.

The final decision in the 2016 General Rate Case (2016 GRC) issued by the CPUC in June 2016 affecting the California Utilities requires the establishment of a two-way income tax expense memorandum account for SDG&E and SoCalGas to track any revenue variances resulting from certain differences arising between the income tax expense forecasted in the 2016 GRC and the income tax expense incurred from 2016 through 2018. The variances to be tracked include tax expense differences relating to


▪	net revenue changes,


▪	mandatory tax law, tax accounting, tax procedural, or tax policy changes, and


▪	elective tax law, tax accounting, tax procedural, or tax policy changes.

The account will remain open, and the balance in the account will be reviewed in subsequent GRC proceedings, until the CPUC decides to close the account. We believe the future disposition of these tracked balances may result in refunds being directed to ratepayers to the extent tax expense incurred is lower than forecasted tax expense in the GRC process as a result of certain flow-through item deductions, as described above, or other items. We discuss the memo account further in Note 10.

Differences arising from the forecasted amounts will be tracked in the two-way income tax expense tracking account, except for the equity portion of AFUDC, which is not subject to taxation. We expect that certain amounts recorded in the tracking account may give rise to regulatory assets or liabilities until the CPUC disposes with the account. The CPUC tracking account does not affect the recovery of income tax expense in Federal Energy Regulatory Commission (FERC) formulaic rates.

In the third quarter of 2016, we adopted ASU 2016-09 with an effective date of January 1, 2016. ASU 2016-09 requires excess tax benefits and tax deficiencies related to employee share-based payment transactions to be recorded in earnings, instead of in shareholders’ equity. We discuss the impact of adopting the provisions of this standard in Note 2.

We provide additional information about our accounting for income taxes in Notes 1 and 6 of the Notes to Consolidated Financial Statements in the Annual Report.

DEBT AND CREDIT FACILITIES	9 Months Ended
DEBT AND CREDIT FACILITIES	Sep. 30, 2016
Debt Disclosure [Abstract]
Debt and Credit Facilities	DEBT AND CREDIT FACILITIES LINES OF CREDIT At September 30, 2016, Sempra Energy Consolidated had an aggregate of $4.3 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 principal terms of which we describe below. Available unused credit on these lines at September 30, 2016 was approximately $2.0 billion. Our foreign operations have additional general purpose credit facilities aggregating $1.1 billion at September 30, 2016. Available unused credit on these lines totaled $429 million at September 30, 2016. Sempra Energy Sempra Energy has a $1 billion, five-year syndicated revolving credit agreement expiring in October 2020. On September 30, 2016, an additional lender was added to the facility. Citibank, N.A. serves as administrative agent for the syndicate of, now, 21 lenders, and no single lender has greater than a 7-percent share. Borrowings bear interest at benchmark rates plus a margin that varies with 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 September 30, 2016, 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 $400 million of letters of credit on behalf of Sempra Energy with the amount of borrowings otherwise available under the facility reduced by the amount of outstanding letters of credit. At September 30, 2016, Sempra Energy had no outstanding borrowings or letters of credit supported by the facility. Sempra Global Sempra Global has a five-year syndicated revolving credit agreement expiring in October 2020. On September 30, 2016, an additional lender was added to the facility, and the borrowing capacity increased from $2.21 billion to $2.34 billion. Citibank, N.A. serves as administrative agent for the syndicate of, now, 21 lenders, and 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 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 September 30, 2016, Sempra Energy was in compliance with this and all other financial covenants under the credit facility. At September 30, 2016, Sempra Global had $2.26 billion of commercial paper outstanding supported by the facility and $79 million of available unused credit on the line. California Utilities SDG&E and SoCalGas have a combined $1 billion, five-year syndicated revolving credit agreement expiring in October 2020. On September 30, 2016, an additional lender was added to the facility. JPMorgan Chase Bank, N.A. serves as administrative agent for the syndicate of, now, 21 lenders, and no single lender has greater than a 7-percent share. The agreement permits each utility to individually borrow up to $750 million, subject to a combined limit of $1 billion 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 $250 million for both utilities. The amount of borrowings otherwise available under the facility is reduced by the amount of outstanding letters of credit. Borrowings bear interest at benchmark rates plus a margin that varies with the borrowing utility’s credit rating. 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 September 30, 2016, 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 September 30, 2016, SDG&E had $54 million of commercial paper outstanding and SoCalGas had no outstanding borrowings supported by the facility. Available unused credit on the line at September 30, 2016 was $696 million and $750 million at SDG&E and SoCalGas, respectively, subject to the $1 billion maximum combined credit limit. Sempra South American Utilities Sempra South American Utilities has Peruvian Sol- and Chilean Peso-denominated credit facilities with a borrowing capacity of $506 million U.S. dollar equivalent. The credit facilities were entered into to finance working capital and for general corporate purposes. The Peruvian facilities require a debt to equity ratio of no more than 170 percent. At September 30, 2016, Sempra South American Utilities was in compliance with this financial covenant under the credit facilities. At September 30, 2016, Sempra South American Utilities had outstanding borrowings against the Peruvian facilities of $140 million, expiring between 2016 and 2019, bank guarantees of $16 million, and $236 million of available unused credit. There were no outstanding borrowings at September 30, 2016 under the $114 million Chilean facility. Sempra Mexico IEnova has a $600 million, five-year revolving credit agreement expiring in August 2020. The lenders are Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México, Banco Nacional de Mexico, S.A. Integrante del Grupo Financiero Banamex, The Bank of Tokyo - Mitsubishi UFJ, LTD., The Bank of Nova Scotia and Sumitomo Mitsui Banking Corporation. At September 30, 2016, IEnova had $521 million of outstanding borrowings supported by the facility, and available unused credit on the line was $79 million. WEIGHTED AVERAGE INTEREST RATES The weighted average interest rates on the total short-term debt at Sempra Energy Consolidated were 1.19 percent and 1.09 percent at September 30, 2016 and December 31, 2015, respectively. The weighted average interest rates on total short-term debt at SDG&E were 1.06 percent and 1.01 percent at September 30, 2016 and December 31, 2015, respectively. LONG-TERM DEBT Sempra Energy In October 2016, Sempra Energy publicly offered and sold $500 million of 1.625-percent, fixed-rate notes maturing in 2019. Sempra Energy used the proceeds from this offering to repay outstanding commercial paper. SDG&E In May 2016, SDG&E publicly offered and sold $500 million of 2.50-percent first mortgage bonds maturing in 2026. SDG&E used the proceeds from the offering to redeem, prior to a scheduled maturity in 2027, $105 million aggregate principal amount of 5-percent, tax-exempt industrial development revenue bonds, to repay outstanding commercial paper and for other general corporate purposes. SoCalGas In June 2016, SoCalGas publicly offered and sold $500 million of 2.60-percent first mortgage bonds maturing in 2026. SoCalGas used the proceeds from the offering to repay outstanding commercial paper and for other general corporate purposes. Sempra South American Utilities In July 2016, Luz del Sur publicly offered and sold $50 million of corporate bonds at 6.50 percent maturing in 2025. Sempra Mexico In September 2016, IEnova completed the acquisition of PEMEX’s 50-percent interest in GdC, as we discuss in Note 3. Pursuant to the agreement, IEnova assumed $364 million of long-term debt, of which $49 million is classified as current at September 30, 2016. Principal and interest payments are due quarterly each year, and the loan fully matures in December 2026. The loan bears interest equal to London Interbank Offered Rate (LIBOR) plus a spread of 2 percent to 2.75 percent, which varies over the term of the loan. To moderate exposure to interest rate and associated cash flow variability, GdC entered into floating-to-fixed interest rate swaps for the full loan amount, resulting in an all-in fixed rate of 2.63 percent plus the corresponding spread. The loan is collateralized by the TDF S. de R.L. de C.V. liquid petroleum gas pipeline and the San Fernando natural gas pipeline, which are wholly owned projects at GdC. The loan agreement contains various covenants, including maintaining a certain interest coverage ratio and a minimum members’ equity during the term of the loan. At September 30, 2016, GdC was in compliance with these financial covenants. Sempra Natural Gas In September 2016, Sempra Natural Gas completed the sale of EnergySouth, the parent company of Mobile Gas and Willmut Gas. Sempra Natural Gas received $318 million, net of $2 million cash sold, in cash proceeds and the buyer assumed debt of $67 million, which included $20 million of 4.14-percent first mortgage bonds and $42 million of 5-percent first mortgage bonds at Mobile Gas, and $5 million of 3.1-percent notes at Willmut Gas. We discuss the sale of EnergySouth in Note 3. INTEREST RATE SWAPS We discuss our fair value interest rate swaps and interest rate swaps to hedge cash flows in Note 7.

DERIVATIVE FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

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, benchmark interest rate risk and foreign exchange rate exposures. 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 included in the tables below.

In certain cases, we apply the normal purchase or sale exception to derivative instruments 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.

In all other cases, we record derivatives at fair value on the Condensed Consolidated Balance Sheets. We designate each derivative as (1) a cash flow hedge, (2) a fair value hedge, or (3) undesignated. Depending on the applicability of hedge accounting and, for the 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 (loss) (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the settlements of derivative instruments as operating activities on the Condensed Consolidated Statements of Cash Flows.

HEDGE ACCOUNTING

We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated cash flows associated with 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 the future cash flows of a given 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, as follows:

•

The California Utilities use energy derivatives, both natural gas and electricity, for the benefit of customers, with the objective of managing price risk and basis risks, and stabilizing and lowering natural gas and electricity costs. These derivatives include fixed price natural gas and electricity positions, options, and basis risk instruments, which are either exchange-traded or over-the-counter financial instruments, or bilateral physical transactions. This activity is governed by risk management and transacting activity plans that have been filed with and approved by the CPUC. Natural gas and electricity derivative activities are recorded as commodity costs that are offset by regulatory account balances and are recovered in rates. Net commodity cost impacts on the Condensed Consolidated Statements of Operations are reflected in Cost of Electric Fuel and Purchased Power or in Cost of Natural Gas.

•

SDG&E is allocated and may purchase congestion revenue rights (CRRs), which serve to reduce the regional electricity price volatility risk that may result from local transmission capacity constraints. Unrealized gains and losses do not impact earnings, as they are offset by regulatory account balances. Realized gains and losses associated with CRRs, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations.

•

Sempra Mexico, Sempra Natural Gas, and Sempra Renewables may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: liquefied natural gas (LNG), natural gas transportation and storage, and power generation. 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 Condensed 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 Condensed 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 September 30, 2016 and December 31, 2015 as follows:



NET ENERGY DERIVATIVE VOLUMES
(Quantities in millions)
Segment and Commodity	Unit of measure	September 30, 2016	December 31, 2015
California Utilities:
SDG&E:
Natural gas	MMBtu(1)	56	70
Electricity	MWh(2)	4	1
Congestion revenue rights	MWh	46	36
SoCalGas – natural gas	MMBtu	2	1

Energy-Related Businesses:
Sempra Natural Gas – natural gas	MMBtu	35	43


(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 contractual obligations and assets, 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 and joint ventures. Interest rate derivatives are generally accounted for as hedges, and 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 energy derivatives. Separately, Otay Mesa VIE has entered into interest rate swap agreements, designated as cash flow hedges, to moderate its exposure to interest rate changes.

At September 30, 2016 and December 31, 2015, the net notional amounts of our interest rate derivatives, excluding joint ventures, were:



INTEREST RATE DERIVATIVES
(Dollars in millions)
	September 30, 2016			December 31, 2015
	Notional debt		Maturities	Notional debt		Maturities
Sempra Energy Consolidated:
Cash flow hedges(1)(2)	$	753	2016-2028	$	384	2016-2028
Fair value hedges	—		—	300		2016
SDG&E:
Cash flow hedge(1)	307		2016-2019	315		2016-2019


(1)	Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE.


(2)	At September 30, 2016, includes GdC, which was previously a joint venture and excluded from this table.

FOREIGN CURRENCY DERIVATIVES

We utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and joint ventures. These cash flow hedges exchange our Mexican-peso denominated principal and interest payments into the U.S. dollar and swap Mexican variable interest rates for U.S. fixed interest rates. From time to time, Sempra Mexico and its joint ventures may use other foreign currency derivatives to hedge exposures related to cash flows associated with revenues from contracts denominated in Mexican pesos that are indexed to the U.S. dollar.

We are also exposed to exchange rate movements at our Mexican subsidiaries and joint ventures, which have U.S. dollar denominated cash balances, receivables, payables and debt (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. They also have deferred income tax assets and liabilities denominated in the Mexican peso, which must be translated to U.S. dollars for financial reporting purposes. In addition, monetary assets and liabilities and certain nonmonetary assets and liabilities are adjusted for Mexican inflation for Mexican income tax purposes. We utilize foreign currency derivatives as a means to manage the risk of exposure to significant fluctuations in our income tax expense and equity earnings from these impacts. In January 2016 and September 2016, we entered into foreign currency derivatives with notional amounts totaling $550 million and $914 million, respectively.

At September 30, 2016 and December 31, 2015, the net notional amounts of our foreign currency derivatives, excluding joint ventures, were:



FOREIGN CURRENCY DERIVATIVES
(Dollars in millions)
	September 30, 2016			December 31, 2015
	Notional amount		Maturities	Notional amount		Maturities
Sempra Energy Consolidated:
Cross-currency swaps	$	408	2016-2023	$	408	2016-2023
Other foreign currency derivatives(1)	1,481		2016-2018	—		—


(1)	At September 30, 2016, includes GdC, which was previously a joint venture and excluded from this table.

In addition, Sempra South American Utilities uses foreign currency derivatives at its subsidiaries and joint ventures as a means to manage foreign currency rate risk. We discuss these derivatives at Chilquinta Energía’s Eletrans joint venture investment in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.

FINANCIAL STATEMENT PRESENTATION

The Condensed Consolidated Balance Sheets reflect the offsetting of net derivative positions and cash collateral with the same counterparty when a legal right of offset exists. The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets at September 30, 2016 and December 31, 2015, 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 CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	September 30, 2016
	Current assets: Fixed-price contracts and other derivatives(1)			Other assets: Sundry			Current liabilities: Fixed-price contracts and other derivatives(2)			Deferred credits and other liabilities: Fixed-price contracts and other derivatives
Sempra Energy Consolidated:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments(3)	$	3		$	—		$	(20	)	$	(224	)
Commodity contracts not subject to rate recovery	—			—			(4		)	—
Derivatives not designated as hedging instruments:
Foreign exchange instruments	2			—			(25		)	—
Commodity contracts not subject to rate recovery	122			25			(128		)	(17		)
Associated offsetting commodity contracts	(114		)	(15		)	114			15
Associated offsetting cash collateral	—			(2		)	17			2
Commodity contracts subject to rate recovery	11			86			(59		)	(165		)
Associated offsetting commodity contracts	(5		)	(1		)	5			1
Associated offsetting cash collateral	—			—			12			17
Net amounts presented on the balance sheet	19			93			(88		)	(371		)
Additional cash collateral for commodity contracts not subject to rate recovery	15			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	19			—			—			—
Total(4)	$	53		$	93		$	(88	)	$	(371	)
SDG&E:
Derivatives designated as hedging instruments:
Interest rate instruments(3)	$	—		$	—		$	(13	)	$	(18	)
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	8			86			(55		)	(165		)
Associated offsetting commodity contracts	(3		)	(1		)	3			1
Associated offsetting cash collateral	—			—			12			17
Net amounts presented on the balance sheet	5			85			(53		)	(165		)
Additional cash collateral for commodity contracts not subject to rate recovery	1			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	17			—			—			—
Total(4)	$	23		$	85		$	(53	)	$	(165	)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	3		$	—		$	(4	)	$	—
Associated offsetting commodity contracts	(2		)	—			2			—
Net amounts presented on the balance sheet	1			—			(2		)	—
Additional cash collateral for commodity contracts not subject to rate recovery	1			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	2			—			—			—
Total	$	4		$	—		$	(2	)	$	—


(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 CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	December 31, 2015
	Current assets: Fixed-price contracts and other derivatives(1)			Other assets: Sundry			Current liabilities: Fixed-price contracts and other derivatives(2)			Deferred credits and other liabilities: Fixed-price contracts and other derivatives
Sempra Energy Consolidated:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments(3)	$	4		$	1		$	(15	)	$	(156	)
Commodity contracts not subject to rate recovery	13			—			—			—
Derivatives not designated as hedging instruments:
Commodity contracts not subject to rate recovery	245			32			(239		)	(21		)
Associated offsetting commodity contracts	(232		)	(20		)	232			20
Associated offsetting cash collateral	(6		)	—			4			—
Commodity contracts subject to rate recovery	28			49			(61		)	(64		)
Associated offsetting commodity contracts	(2		)	(2		)	2			2
Associated offsetting cash collateral	—			—			28			26
Net amounts presented on the balance sheet	50			60			(49		)	(193		)
Additional cash collateral for commodity contracts not subject to rate recovery	2			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	28			—			—			—
Total(4)	$	80		$	60		$	(49	)	$	(193	)
SDG&E:
Derivatives designated as hedging instruments:
Interest rate instruments(3)	$	—		$	—		$	(14	)	$	(23	)
Derivatives not designated as hedging instruments:
Commodity contracts not subject to rate recovery	—			—			(1		)	—
Associated offsetting cash collateral	—			—			1			—
Commodity contracts subject to rate recovery	27			49			(60		)	(64		)
Associated offsetting commodity contracts	(2		)	(2		)	2			2
Associated offsetting cash collateral	—			—			28			26
Net amounts presented on the balance sheet	25			47			(44		)	(59		)
Additional cash collateral for commodity contracts not subject to rate recovery	1			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	27			—			—			—
Total(4)	$	53		$	47		$	(44	)	$	(59	)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts not subject to rate recovery	$	—		$	—		$	(1	)	$	—
Associated offsetting cash collateral	—			—			1			—
Commodity contracts subject to rate recovery	1			—			(1		)	—
Net amounts presented on the balance sheet	1			—			(1		)	—
Additional cash collateral for commodity contracts subject to rate recovery	1			—			—			—
Total	$	2		$	—		$	(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 Condensed Consolidated Statements of Operations and in OCI and AOCI for the three months and nine months ended September 30 were:



FAIR VALUE HEDGE IMPACTS
(Dollars in millions)
		Pretax gain (loss) on derivatives recognized in earnings
		Three months ended September 30,				Nine months ended September 30,
	Location	2016		2015		2016			2015
Sempra Energy Consolidated:
Interest rate instruments	Interest Expense	$	—	$	1	$	3		$	5
Interest rate instruments	Other Income, Net	—		—		(2		)	(2		)
Total(1)		$	—	$	1	$	1		$	3


(1)	There was no hedge ineffectiveness in either the three months or nine months ended September 30, 2016 or 2015. All other changes in the fair value of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt and are recorded in Other Income, Net.



CASH FLOW HEDGE IMPACTS
(Dollars in millions)
	Pretax gain (loss) recognized in OCI							Pretax (loss) gain reclassified from AOCI into earnings
	Three months ended September 30,							Three months ended September 30,
	2016			2015			Location	2016			2015
Sempra Energy Consolidated:
Interest rate and foreign exchange instruments(1)	$	(16	)	$	(10	)	Interest Expense	$	(4	)	$	(5	)
Interest rate instruments	17			(134		)	Equity Earnings, Before Income Tax	(3		)	(3		)
Interest rate and foreign exchange instruments	—			—			Remeasurement of Equity Method Investment	(7		)	—
Interest rate and foreign exchange instruments	13			—			Equity Earnings, Net of Income Tax	2			—
Commodity contracts not subject to rate recovery	2			6			Revenues: Energy- Related Businesses	—			3
Total(2)	$	16		$	(138	)		$	(12	)	$	(5	)
SDG&E:
Interest rate instruments(1)(2)	$	2		$	(4	)	Interest Expense	$	(3	)	$	(3	)
SoCalGas:
Interest rate instruments(2)	$	—		$	—		Interest Expense	$	(1	)	$	—

	Nine months ended September 30,							Nine months ended September 30,
	2016			2015			Location	2016			2015
Sempra Energy Consolidated:
Interest rate and foreign exchange instruments(1)	$	(26	)	$	(22	)	Interest Expense	$	(11	)	$	(14	)
Interest rate instruments	(190		)	(123		)	Equity Earnings, Before Income Tax	(8		)	(9		)
Interest rate and foreign exchange instruments	—			—			Remeasurement of Equity Method Investment	(7		)	—
Interest rate and foreign exchange instruments	(20		)	—			Equity Earnings, Net of Income Tax	(4		)	—
Commodity contracts not subject to rate recovery	(2		)	6			Revenues: Energy- Related Businesses	7			10
Total(2)	$	(238	)	$	(139	)		$	(23	)	$	(13	)
SDG&E:
Interest rate instruments(1)(2)	$	(5	)	$	(9	)	Interest Expense	$	(9	)	$	(9	)
SoCalGas:
Interest rate instruments(2)	$	—		$	—		Interest Expense	$	(1	)	$	—


(1)	Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE.


(2)	Amounts include negligible hedge ineffectiveness in the three months and nine months ended September 30, 2016 and 2015.

For Sempra Energy Consolidated, we expect that losses of $21 million, which are net of income tax benefit, that are currently recorded in AOCI (including $12 million in noncontrolling interests, substantially all of which 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. SoCalGas expects that negligible losses, 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. Actual amounts ultimately reclassified into earnings depend on the interest rates in effect when derivative contracts mature.

For all forecasted transactions, the maximum remaining term over which we are hedging exposure to the variability of cash flows at September 30, 2016 is approximately 12 years and 3 years for Sempra Energy Consolidated and SDG&E, respectively. The maximum remaining term for which we are hedging exposure to the variability of cash flows at our equity method investees is 19 years.

The effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations for the three months and nine months ended September 30 were:



UNDESIGNATED DERIVATIVE IMPACTS
(Dollars in millions)
		Pretax (loss) gain on derivatives recognized in earnings
		Three months ended September 30,						Nine months ended September 30,
	Location	2016			2015			2016			2015
Sempra Energy Consolidated:
Foreign exchange instruments	Other Income, Net	$	(11	)	$	(4	)	$	(23	)	$	(7	)
Foreign exchange instruments	Equity Earnings, Net of Income Tax	1			(3		)	3			(4		)
Commodity contracts not subject to rate recovery	Revenues: Energy-Related Businesses	3			21			(26		)	33
Commodity contracts not subject to rate recovery	Operation and Maintenance	—			(2		)	1			(1		)
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	(118		)	(27		)	(90		)	(100		)
Commodity contracts subject to rate recovery	Cost of Natural Gas	—			—			(2		)	1
Total		$	(125	)	$	(15	)	$	(137	)	$	(78	)
SDG&E:
Commodity contracts subject to rate recovery	Operation and Maintenance	$	—		$	(1	)	$	—		$	(1	)
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	(118		)	(27		)	(90		)	(100		)
Total		$	(118	)	$	(28	)	$	(90	)	$	(101	)
SoCalGas:
Commodity contracts not subject to rate recovery	Operation and Maintenance	$	—		$	(1	)	$	—		$	—
Commodity contracts subject to rate recovery	Cost of Natural Gas	—			—			(2		)	1
Total		$	—		$	(1	)	$	(2	)	$	1

CONTINGENT FEATURES

For Sempra Energy Consolidated and SDG&E, certain of our derivative instruments contain credit limits which vary depending on 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 is $6 million at each of September 30, 2016 and December 31, 2015. At September 30, 2016, if the credit ratings of Sempra Energy were reduced below investment grade, $8 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 September 30, 2016 and December 31, 2015 is $3 million and $5 million, respectively. At September 30, 2016, if the credit ratings of SDG&E were reduced below investment grade, $5 million of additional assets could be required to be posted as collateral for these derivative contracts.

For Sempra Energy Consolidated, 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.

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.

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-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41638-113959

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

We discuss the valuation techniques and inputs we use to measure fair value and the definition of the three levels of the fair value hierarchy in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.

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 at September 30, 2016 and December 31, 2015. 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. We have not changed the valuation techniques or types of inputs we use to measure recurring fair values during the nine months ended September 30, 2016.

The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 7 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 September 30, 2016 and December 31, 2015 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).

▪

For commodity contracts, interest rate derivatives and foreign exchange instruments, 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). Level 3 recurring items relate to CRRs and long-term, fixed-price electricity positions at SDG&E, as we discuss below under “Level 3 Information.”


▪	Rabbi Trust 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). These investments in marketable securities were negligible at both September 30, 2016 and December 31, 2015.

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.



RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Fair value at September 30, 2016
	Level 1		Level 2		Level 3		Netting(1)			Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	607	$	—	$	—	$	—		$	607
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	48		52		—		—			100
Municipal bonds	—		161		—		—			161
Other securities	—		188		—		—			188
Total debt securities	48		401		—		—			449
Total nuclear decommissioning trusts(2)	655		401		—		—			1,056
Interest rate and foreign exchange instruments	—		5		—		—			5
Commodity contracts not subject to rate recovery	—		18		—		13			31
Commodity contracts subject to rate recovery	—		1		90		19			110
Total	$	655	$	425	$	90	$	32		$	1,202

Liabilities:
Interest rate and foreign exchange instruments	$	—	$	269	$	—	$	—		$	269
Commodity contracts not subject to rate recovery	19		1		—		(19		)	1
Commodity contracts subject to rate recovery	1		40		177		(29		)	189
Total	$	20	$	310	$	177	$	(48	)	$	459

	Fair value at December 31, 2015
	Level 1		Level 2		Level 3		Netting(1)			Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	619	$	—	$	—	$	—		$	619
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	47		44		—		—			91
Municipal bonds	—		156		—		—			156
Other securities	—		182		—		—			182
Total debt securities	47		382		—		—			429
Total nuclear decommissioning trusts(2)	666		382		—		—			1,048
Interest rate and foreign exchange instruments	—		5		—		—			5
Commodity contracts not subject to rate recovery	22		16		—		(4		)	34
Commodity contracts subject to rate recovery	—		1		72		28			101
Total	$	688	$	404	$	72	$	24		$	1,188

Liabilities:
Interest rate and foreign exchange instruments	$	—	$	171	$	—	$	—		$	171
Commodity contracts not subject to rate recovery	5		3		—		(4		)	4
Commodity contracts subject to rate recovery	—		68		53		(54		)	67
Total	$	5	$	242	$	53	$	(58	)	$	242


(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements and 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 September 30, 2016
	Level 1		Level 2		Level 3		Netting(1)			Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	607	$	—	$	—	$	—		$	607
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	48		52		—		—			100
Municipal bonds	—		161		—		—			161
Other securities	—		188		—		—			188
Total debt securities	48		401		—		—			449
Total nuclear decommissioning trusts(2)	655		401		—		—			1,056
Commodity contracts not subject to rate recovery	—		—		—		1			1
Commodity contracts subject to rate recovery	—		—		90		17			107
Total	$	655	$	401	$	90	$	18		$	1,164

Liabilities:
Interest rate instruments	$	—	$	31	$	—	$	—		$	31
Commodity contracts subject to rate recovery	—		39		177		(29		)	187
Total	$	—	$	70	$	177	$	(29	)	$	218

	Fair value at December 31, 2015
	Level 1		Level 2		Level 3		Netting(1)			Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	619	$	—	$	—	$	—		$	619
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	47		44		—		—			91
Municipal bonds	—		156		—		—			156
Other securities	—		182		—		—			182
Total debt securities	47		382		—		—			429
Total nuclear decommissioning trusts(2)	666		382		—		—			1,048
Commodity contracts not subject to rate recovery	—		—		—		1			1
Commodity contracts subject to rate recovery	—		—		72		27			99
Total	$	666	$	382	$	72	$	28		$	1,148

Liabilities:
Interest rate instruments	$	—	$	37	$	—	$	—		$	37
Commodity contracts not subject to rate recovery	1		—		—		(1		)	—
Commodity contracts subject to rate recovery	—		67		53		(54		)	66
Total	$	1	$	104	$	53	$	(55	)	$	103


(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements and 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 September 30, 2016
	Level 1		Level 2		Level 3		Netting(1)			Total
Assets:
Commodity contracts not subject to rate recovery	$	—	$	—	$	—	$	1		$	1
Commodity contracts subject to rate recovery	—		1		—		2			3
Total	$	—	$	1	$	—	$	3		$	4

Liabilities:
Commodity contracts subject to rate recovery	$	1	$	1	$	—	$	—		$	2
Total	$	1	$	1	$	—	$	—		$	2

	Fair value at December 31, 2015
	Level 1		Level 2		Level 3		Netting(1)			Total
Assets:
Commodity contracts subject to rate recovery	$	—	$	1	$	—	$	1		$	2
Total	$	—	$	1	$	—	$	1		$	2

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


(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements and 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) and long-term, fixed-price electricity positions classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E:



LEVEL 3 RECONCILIATIONS
(Dollars in millions)
	Three months ended September 30,
	2016			2015
Balance as of July 1	$	24		$	42
Realized and unrealized losses	(145		)	(49		)
Settlements	34			43
Balance as of September 30	$	(87	)	$	36
Change in unrealized losses relating to
instruments still held at September 30	$	(114	)	$	(8	)



	Nine months ended September 30,
	2016			2015
Balance as of January 1	$	19		$	107
Realized and unrealized losses	(138		)	(103		)
Allocated transmission instruments	—			1
Settlements	32			31
Balance as of September 30	$	(87	)	$	36
Change in unrealized losses relating to
instruments still held at September 30	$	(111	)	$	(54	)

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 and long-term, fixed-price electricity positions on an ongoing basis. Inputs used to determine the fair value of CRRs and fixed-price electricity positions are reviewed and compared with market conditions to determine reasonableness. SDG&E expects all costs related to these instruments 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 Independent System Operator (CAISO), an objective source. Annual auction prices are published once a year, typically in the middle of November, and remain in effect for the following year. The impact associated with discounting is negligible. Because auction prices are a less observable input, these instruments are classified as Level 3. The fair value of these instruments is derived from auction price differences between two locations. From January 1, 2016 to December 31, 2016, the auction prices range from $(24) per MWh to $10 per MWh at a given location, and from January 1, 2015 to December 31, 2015, the auction prices ranged from $(16) per MWh to $8 per MWh at a given location. 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 7.

Long-term, fixed-price electricity positions that are valued using significant unobservable data are classified as Level 3 because the contract terms relate to a delivery location or tenor for which observable market rate information is not available. The fair value of the net electricity positions classified as Level 3 is derived from a discounted cash flow model using market electricity forward price inputs. At September 30, 2016, these electricity forward prices range from $19.20 per MWh to $58.50 per MWh. A significant increase or decrease in market electricity forward prices would result in a significantly higher or lower fair value, respectively. We summarize long-term, fixed-price electricity position volumes in Note 7.

Realized gains and losses associated with CRRs and long-term electricity positions, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnings.

Fair Value of Financial Instruments

The fair values of certain of our financial instruments (cash, temporary investments, accounts and notes receivable, current amounts due to/from unconsolidated affiliates, dividends and accounts payable, short-term debt and customer deposits) approximate their carrying amounts because of the short-term nature of these instruments. 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 that are not recorded at fair value on the Condensed Consolidated Balance Sheets at September 30, 2016 and December 31, 2015:



FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
	September 30, 2016
	Carrying amount		Fair value
	Carrying amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Due from unconsolidated affiliates(1)	$	180	$	—	$	91	$	81	$	172
Total long-term debt(2)(3)	14,149		—		15,335		532		15,867
Preferred stock of subsidiary	20		—		26		—		26
SDG&E:
Total long-term debt(3)(4)	$	4,656	$	—	$	5,024	$	307	$	5,331
SoCalGas:
Total long-term debt(5)	$	3,009	$	—	$	3,323	$	—	$	3,323
Preferred stock	22		—		28		—		28

	December 31, 2015
	Carrying amount		Fair value
	Carrying amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Noncurrent due from unconsolidated affiliates(1)	$	175	$	—	$	97	$	69	$	166
Total long-term debt(2)(3)	13,761		—		13,985		648		14,633
Preferred stock of subsidiary	20		—		23		—		23
SDG&E:
Total long-term debt(3)(4)	$	4,304	$	—	$	4,355	$	315	$	4,670
SoCalGas:
Total long-term debt(5)	$	2,513	$	—	$	2,621	$	—	$	2,621
Preferred stock	22		—		25		—		25


(1)	Excluding accumulated interest outstanding of $15 million and $11 million at September 30, 2016 and December 31, 2015, respectively.

(2)

Before reductions for unamortized discount (net of premium) and debt issuance costs of $108 million and $107 million at September 30, 2016 and December 31, 2015, respectively, and excluding build-to-suit and capital lease obligations of $385 million and $387 million at September 30, 2016 and December 31, 2015, respectively. We discuss our long-term debt in Note 6 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report.


(3)	Level 3 instruments include $307 million and $315 million at September 30, 2016 and December 31, 2015, respectively, related to Otay Mesa VIE.


(4)	Before reductions for unamortized discount and debt issuance costs of $46 million and $43 million at September 30, 2016 and December 31, 2015, respectively, and excluding capital lease obligations of $241 million and $244 million at September 30, 2016 and December 31, 2015, respectively.


(5)	Before reductions for unamortized discount and debt issuance costs of $27 million and $24 million at September 30, 2016 and December 31, 2015, respectively, and excluding capital lease obligations of $1 million at both September 30, 2016 and December 31, 2015, respectively.

We determine the fair value of certain noncurrent amounts due from unconsolidated affiliates, long-term debt and preferred stock based on a market approach using quoted market prices for identical or similar securities in thinly-traded markets (Level 2). We value other noncurrent amounts due from unconsolidated affiliates of Sempra South American Utilities using a perpetuity approach based on the obligation’s fixed interest rate, the absence of a stated maturity date and a discount rate reflecting local borrowing costs (Level 3). 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 the San Onofre Nuclear Generating Station (SONGS) in Note 9 below.

Non-Recurring Fair Value Measures – Sempra Energy Consolidated

Sempra Mexico

GdC. On September 26, 2016, IEnova completed the acquisition of PEMEX’s 50-percent interest in GdC, increasing its ownership interest to 100 percent. As a result of IEnova obtaining control over GdC, in the three months and nine months ended September 30, 2016, Sempra Mexico recognized a pretax gain of $617 million ($432 million after-tax) for the excess of the acquisition-date fair value of its previously held equity interest in GdC ($1.144 billion) over the carrying value of that interest ($520 million) and losses reclassified from AOCI ($7 million), included as Remeasurement of Equity Method Investment on Sempra Energy’s Condensed Consolidated Statements of Operations. The valuation technique used to measure the acquisition-date fair value of our equity interest in GDC immediately prior to the business acquisition was based on the fair value of the entire business combination ($2.288 billion) less the fair value of the consideration paid ($1.144 billion, the equity sale price). We considered use of the equity sale price to be a market participant input that is a Level 2 measurement in the fair value hierarchy. We discuss the GdC acquisition in Note 3.

TdM. In February 2016, management approved a plan to market and sell its TdM natural gas-fired power plant, and it was classified as held for sale on the Sempra Energy Condensed Consolidated Balance Sheet, as we discuss in Note 3. In September 2016, we received market information that indicated that the fair value of TdM may be less than its carrying value. As a result, after performing an analysis of the information, Sempra Mexico reduced the carrying value of TdM by recognizing a noncash impairment charge of $131 million ($111 million after-tax) in the three months and nine months ended September 30, 2016 in Impairment Losses on the Sempra Energy Condensed Consolidated Statements of Operations. Market values resulting from a third party bidding process are considered to be Level 2 inputs in the fair value hierarchy.

Sempra Natural Gas

Rockies Express. As we discuss in Note 3, in March 2016, Sempra Natural Gas agreed to sell its 25-percent interest in Rockies Express for cash consideration of $440 million, subject to adjustment at closing. The transaction closed in May 2016. In March 2016, we recorded a noncash impairment of our investment in Rockies Express of $44 million ($27 million after-tax). The charge is included in Equity Earnings, Before Income Tax, on the Sempra Energy Condensed Consolidated Statement of Operations for the nine months ended September 30, 2016. We considered the sale price for our equity interest in Rockies Express to be a market participants’ view of the total value of Rockies Express and measured the fair value of our investment based on the equity sale price. Use of this market participant input as the indicator of fair value is a Level 2 measurement in the fair value hierarchy.

The following table summarizes significant inputs impacting our non-recurring fair value measures:



NON-RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Estimated fair value			Valuation technique	Fair value hierarchy	% of fair value measurement	Inputs used to develop measurement	Range of inputs
TdM	$	145	(1)	Market approach	Level 2	100%	Purchase price offers	100%
Investment in GdC	$	1,144	(2)	Market approach	Level 2	100%	Equity sale price	100%
Investment in Rockies Express	$	440	(3)	Market approach	Level 2	100%	Equity sale price	100%


(1)	At measurement date of September 29, 2016. At September 30, 2016, TdM has a carrying value of $146 million, reflecting subsequent business activity, and is classified as held for sale.


(2)	At measurement date of September 26, 2016, immediately prior to acquiring a 100-percent ownership interest in GdC.


(3)	At measurement date of March 29, 2016. On May 9, 2016, Sempra Natural Gas sold its equity interest in Rockies Express.

San Onofre Nuclear Generating Station (SONGS)

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.

+ References + Details

SAN ONOFRE NUCLEAR GENERATING STATION (SONGS)

9 Months Ended

Sep. 30, 2016

Regulated Operations [Abstract]

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, after an extended outage beginning in 2012, 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 Condensed Consolidated Statements of Operations.

SONGS Steam Generator Replacement Project

As part of the Steam Generator Replacement Project, 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. These issues with the steam generators ultimately resulted in Edison’s decision to permanently retire SONGS.

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 binding arbitration proceedings against MHI seeking damages as well. SDG&E is participating in the arbitration as a claimant and respondent. The arbitration hearing concluded in April 2016, and a decision could come as early as this year. We discuss these proceedings in Note 11.

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

In November 2012, in response to the outage, the CPUC issued the SONGS OII, which 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).

In April 2014, SDG&E filed with the CPUC in the SONGS OII proceeding a Settlement Agreement, along with Edison, The Utility Reform Network (TURN), the CPUC Office of Ratepayer Advocates (ORA) and two other intervenors who joined the Settlement Agreement (collectively, the Settling Parties).

In September 2014, the Settling Parties executed an Amended and Restated Settlement Agreement (Amended Settlement Agreement), which amended the Settlement Agreement, and in November 2014, the CPUC issued a final decision approving the Amended Settlement Agreement. 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. We discuss the terms of the Amended Settlement Agreement and related filings in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report.

In April 2015, a petition for modification (PFM) was filed with the CPUC by Alliance for Nuclear Responsibility (A4NR), an intervenor in the SONGS OII proceeding, asking the CPUC to set aside its decision approving the Amended Settlement Agreement and reopen the SONGS OII proceeding. In June 2015, TURN, a party to the Amended Settlement Agreement, filed a response supporting the A4NR petition. TURN does not question the merits of the Amended Settlement Agreement, but is concerned that certain allegations regarding Edison raised by A4NR have undermined the public’s confidence in the regulatory process. SDG&E has responded that TURN’s concerns regarding public perception do not impact the reasonableness of the Amended Settlement Agreement and are insufficient to overturn it.

In August 2015, ORA, also a party to the Amended Settlement Agreement, filed a PFM with the CPUC, withdrawing its support for the Amended Settlement Agreement and asking the CPUC to reopen the SONGS OII proceeding. The ORA does not question the merits of the Amended Settlement Agreement, but is concerned with the CPUC’s approach toward disclosures concerning Edison ex parte communications with the CPUC. SDG&E responded that the ORA’s PFM is insufficient to overturn the Amended Settlement Agreement, because the ORA fails to make a case that the Amended Settlement Agreement is no longer in the public interest.

In May 2016, the CPUC issued a ruling reopening the record of the OII to address the issue of whether the Amended Settlement Agreement is reasonable and in the public interest. In accordance with the ruling, Edison and SDG&E filed separate reports with the CPUC in June 2016 on the Amended Settlement Agreement and the status of its implementation, and filed separate legal briefs in July 2016 asserting that the Amended Settlement Agreement is reasonable and in the public interest.

Accounting and Financial Impacts

Through December 31, 2015 and September 30, 2016, the cumulative after-tax loss from plant closure recorded by Sempra Energy and SDG&E is $125 million, including a reduction in the after-tax loss of $13 million recorded in the first quarter of 2015. The remaining regulatory asset for the expected recovery of SONGS costs, consistent with the Amended Settlement Agreement, is $195 million ($45 million current and $150 million long-term) at September 30, 2016 and is recorded on the Condensed Consolidated Balance Sheets in Other Current Assets and Regulatory Assets Noncurrent, respectively, at Sempra Energy, and in Regulatory Assets Current and Other Regulatory Assets Noncurrent, respectively, at SDG&E. The amortization period prescribed for the regulatory asset is 10 years, which commenced in January 2015 following the CPUC’s final decision approving the Amended Settlement Agreement in November 2014.

Settlement with Nuclear Electric Insurance Limited (NEIL)

NEIL insures domestic and international nuclear utilities for the costs associated with interruptions, damages, decontaminations and related nuclear risks. In October 2015, the SONGS co-owners (Edison, SDG&E and the City of Riverside) reached an agreement with NEIL to resolve all of SONGS’ insurance claims arising out of the failures of the replacement steam generators for a total payment by NEIL of $400 million, SDG&E’s share of which is $80 million. Pursuant to the terms of the SONGS OII Amended Settlement Agreement, after reimbursement of legal fees and a 5-percent allocation to shareholders, the net proceeds of $75 million were allocated to ratepayers through ERRA. We discuss NEIL further in Note 11.

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. We discuss the process of decommissioning SONGS and oversight by the NRC in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report.

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 September 30, 2016, 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 April 2016, the CPUC adopted a decision approving a total decommissioning cost estimate for SONGS Units 2 and 3 of $4.411 billion (in 2014 dollars), of which SDG&E’s share is $899 million. The decision also approves an annual advice letter request process for SDG&E to request trust fund disbursements for decommissioning costs based on a forecast for 2016 and thereafter. Disbursements from the trust will then be made up to this annual forecast amount as decommissioning expenses are incurred. All disbursements will be subject to future refund until a reasonableness review of the actual decommissioning costs is conducted, which would be no less frequently than every three years.

SDG&E has received authorization from the CPUC to access trust funds for SONGS decommissioning costs of up to $218 million for 2013 through 2016 (forecasted). The total of $218 million includes $37 million authorized for withdrawal that is pending satisfactory clarification by final settlement of unresolved spent fuel storage costs with the U.S. Department of Energy (DOE) or clarification by the Internal Revenue Service (IRS) that certain spent fuel costs and other costs are eligible decommissioning costs, payable from qualified nuclear decommissioning trusts. We are uncertain as to when such settlement or clarification will be obtained.

We discuss the NDT and matters related to its funding and the funding of decommissioning costs by the NDT further in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. We discuss matters related to spent nuclear fuel in Note 11.

Nuclear Decommissioning Trusts

The amounts collected in rates for SONGS’ decommissioning are invested in the NDT, which is comprised of externally managed trust funds. Amounts held by the trusts are invested in accordance with CPUC regulations. These trusts are presented on the Sempra Energy and SDG&E Condensed 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 NDT. We provide additional fair value disclosures for the NDT in Note 8.



NUCLEAR DECOMMISSIONING TRUSTS
(Dollars in millions)
	Cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
At September 30, 2016:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies(1)	$	95	$	5	$	—		$	100
Municipal bonds(2)	150		11		—			161
Other securities(2)	183		9		(4		)	188
Total debt securities	428		25		(4		)	449
Equity securities	188		422		(3		)	607
Cash and cash equivalents	12		—		—			12
Total	$	628	$	447	$	(7	)	$	1,068
At December 31, 2015:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	$	89	$	2	$	—		$	91
Municipal bonds	148		8		—			156
Other securities	194		1		(13		)	182
Total debt securities	431		11		(13		)	429
Equity securities	214		412		(7		)	619
Cash and cash equivalents	15		—		—			15
Total	$	660	$	423	$	(20	)	$	1,063


(1)	Maturity dates are 2017-2065.


(2)	Maturity dates are 2016-2115.

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



SALES OF SECURITIES
(Dollars in millions)
	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Proceeds from sales(1)	$	282		$	210		$	486		$	431
Gross realized gains	24			18			32			24
Gross realized losses	(3		)	(6		)	(14		)	(13		)


(1)	Excludes securities that are held to maturity.

Net unrealized gains (losses) are included in Regulatory Liabilities Arising from Removal Obligations on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification.

CALIFORNIA UTILITIES’ REGULATORY MATTERS

We discuss regulatory matters affecting our California Utilities in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and details of any new matters below.

JOINT MATTERS

CPUC General Rate Case (GRC)

The CPUC uses a general rate case proceeding to set sufficient rates 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. In September 2015, the California Utilities filed settlement agreements with the CPUC to resolve all material matters related to the proceeding, except for the revenue requirement implications of certain income tax benefits associated with flow-through tax repair deductions, discussed below. The settlement agreements were with eight of eleven intervening parties.

In June 2016, the CPUC issued a final decision in the 2016 GRC. The final decision (2016 GRC FD) adopts substantially all of the terms of the settlement agreements entered into between SDG&E and SoCalGas and eight of the eleven intervening parties in the 2016 GRC. The 2016 GRC FD adopts two revenue requirement changes, the first of which, relating to the extension of bonus depreciation, is the only significant change to the settlement agreements. The second revenue requirement adjustment relates to income tax benefits associated with flow-through repair deductions (the settling parties did not reach agreement on this second matter). With these adjustments, the final decision adopts a 2016 revenue requirement of $1.791 billion for SDG&E, which is $20 million less than the $1.811 billion proposed in the settlement agreements. For SoCalGas, the final decision’s adjustments result in a 2016 revenue requirement of $2.204 billion, which is $15 million less than the $2.219 billion proposed in the settlement agreements. The 2016 GRC FD also requires certain refunds to be paid to customers and establishes a two-way income tax expense memorandum account, each discussed below.

Consistent with the settlement agreements, the 2016 GRC FD adopts subsequent annual escalation of the adopted revenue requirements by 3.5 percent for years 2017 and 2018 and continuation of the Z-Factor mechanism for qualifying cost recovery. The Z-Factor mechanism allows the California Utilities to seek cost recovery of significant cost increases, under certain unforeseen circumstances, incurred between GRC filings, subject to a $5 million deductible per event. Also, the 2016 GRC FD denies a separate agreement between the ORA and the California Utilities requesting a four-year GRC period and instead adopts a three-year GRC period (through 2018).

The California Utilities recorded revenues in the first quarter of 2016 based on levels authorized for 2015 under the 2012 GRC, because a final decision in the 2016 GRC was not issued by March 31, 2016. The 2016 GRC FD is effective retroactive to January 1, 2016, and the California Utilities recorded the retroactive impacts in the second quarter of 2016. For SoCalGas and SDG&E, these amounts include an incremental after-tax earnings impact of $12 million and $9 million, respectively, related to the first quarter of 2016. The adopted revenue requirements associated with the seven-month period through July 2016 will be recovered in rates over a 17-month period, beginning August 2016. At September 30, 2016, SoCalGas is reporting on its Condensed Balance Sheet a regulatory asset of $58 million, with $12 million as noncurrent, representing retroactive revenue from the 2016 GRC FD from January 1 through June 30, 2016 to be recovered in rates through December 2017. At September 30, 2016, SDG&E is reporting on its Condensed Consolidated Balance Sheet a regulatory asset of $25 million, with $5 million as noncurrent, representing retroactive revenue from the 2016 GRC FD from January 1 through June 30, 2016 to be recovered in rates through December 2017.

The 2016 GRC FD results in certain accounting impacts associated with the income tax repairs deduction matter. In general, the 2016 GRC FD considers that the income tax benefits obtained from income tax repairs deductions exceeded amounts forecasted by the California Utilities from 2011 to 2015, and that they were attributed to shareholders during that time. The 2016 GRC FD reallocates the economic benefit of this tax deduction forecasting difference to ratepayers. Accordingly, revenues corresponding to income tax repair deductions that exceeded forecasted amounts relating to 2015, which have been tracked in memorandum accounts, are ordered to be refunded to customers. The 2015 estimated amounts in the memorandum accounts totaled $72 million for SoCalGas and $37 million for SDG&E. Pursuant to this refund requirement, SoCalGas and SDG&E recorded regulatory liabilities for these amounts, resulting in after-tax charges to earnings of $43 million and $22 million, respectively, in the second quarter of 2016 (summarized below). In addition, the 2016 GRC FD reduced rate base by $38 million at SoCalGas and $55 million at SDG&E. The corresponding reductions in the 2016 revenue requirement will be $5 million at SoCalGas and $7 million at SDG&E (which reductions are included in the adopted 2016 revenue requirement amounts described above). The rate base reductions reallocate to ratepayers the economic benefits associated with tax repair deductions that were previously provided to the shareholders for the period of 2012-2014 for SoCalGas and 2011-2014 for SDG&E. The rate base reductions do not result in an impairment of any of our reported assets, but will impact our revenues and earnings prospectively.

The 2016 GRC FD also requires us to notify the CPUC if the 2012-2015 repairs deductions estimated in this GRC are different from the actual repairs deductions for SDG&E and SoCalGas. SoCalGas and SDG&E recorded regulatory liabilities of $11 million and $15 million, respectively, related to 2012-2014, resulting in after-tax charges to earnings for these differences of $6 million and $9 million in the second quarter of 2016 for SoCalGas and SDG&E, respectively (summarized below). In the third quarter of 2016, SDG&E and SoCalGas completed their 2015 calendar year tax returns, and final tax deductions associated with tax repair benefits to be refunded to ratepayers associated with the 2015 memo account are lower than the amounts estimated in 2015. Accordingly, the amounts to be refunded decreased by $5 million for SDG&E and $19 million for SoCalGas. In October 2016, SDG&E and SoCalGas filed a regulatory account update with the CPUC to reflect their final total 2015 repair allowance deductions of $32 million and $53 million, respectively. After recording the related income tax effect and corresponding regulatory revenue adjustments for income tax purposes, there was no net impact to earnings from the adjustments to the 2015 tax repairs deductions recorded in the third quarter of 2016. Accordingly, the earnings impacts in the table below are also the impacts in the nine months ended September 30, 2016.

Following is a summary of immediate earnings impacts from the 2016 GRC FD recorded in the second quarter of 2016:



EARNINGS IMPACTS FROM THE 2016 GRC FD RECORDED IN THE SECOND QUARTER OF 2016
(Dollars in millions)
	SoCalGas						SDG&E
	Pretax earnings (charge)			After-tax earnings (charge)			Pretax earnings (charge)			After-tax earnings (charge)
Retroactive revenue requirement increase
for the first quarter of 2016	$	20		$	12		$	15		$	9
Adjustments to revenue related to tax
repairs deductions:
2015 memorandum account balance	$	(72	)	$	(43	)	$	(37	)	$	(22	)
True-up of 2012-2014 estimates to actuals	(11		)	(6		)	(15		)	(9		)
Total	$	(83	)	$	(49	)	$	(52	)	$	(31	)

In July 2016, SDG&E, SoCalGas and the parties to the settlement agreements filed a joint motion indicating their agreement to accept the CPUC’s adjustments to the original settlements with one additional change. The settlement parties agree that SDG&E and SoCalGas will retain the right to seek further review and modification of the bonus depreciation adjustment made by the CPUC, so that SDG&E and/or SoCalGas can pursue relief in the form of full or partial restoration of the total revenue requirements reflected in the original settlement agreements. We expect CPUC action on the joint motion in 2016 or 2017.

Finally, the 2016 GRC FD requires the establishment of a two-way income tax expense memorandum account to track any revenue differences resulting from differences between the income tax expense forecasted in the GRC and the income tax expense incurred by the California Utilities from 2016 through 2018. The differences tracked are to specifically include tax expense differences relating to


▪	net revenue changes;


▪	mandatory tax law, tax accounting, tax procedural, or tax policy changes; and


▪	elective tax law, tax accounting, tax procedural, or tax policy changes.

The account will remain open, and the balance in the account will be reviewed in subsequent GRC proceedings, until the CPUC decides to close the account. In July 2016, to address the implementation of the 2016 GRC FD, the California Utilities filed an advice letter to establish a two-way memorandum account to track revenue requirement differences resulting from the differences in the income tax expense forecasted in the GRC proceedings of SDG&E and SoCalGas and the income tax expense incurred by them during the GRC period. Starting in the second quarter of 2016, SoCalGas and SDG&E are recording liabilities associated with tracking the differences in the income tax expense forecasted in the GRC proceedings and the income tax expense incurred, which for the three months and nine months ended September 30, 2016 resulted in after-tax charges to earnings of $2 million ($4 million pretax) and $11 million ($19 million pretax), respectively, for SoCalGas and negligible amounts for SDG&E.

Natural Gas Pipeline Operations Safety Assessments

In June 2014, the CPUC issued a final decision addressing SDG&E’s and SoCalGas’ Pipeline Safety Enhancement Plan (PSEP). Specifically, the decision determined the following for Phase 1 of the program:


▪	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 regulatory accounts authorized by the CPUC;


▪	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 that were no longer subject to recovery. After taking the amounts disallowed for recovery into consideration, as of September 30, 2016, SDG&E and SoCalGas have recorded PSEP costs of $18 million and $212 million, respectively, in the CPUC-authorized regulatory account.

In July 2014, the ORA and TURN filed a joint application for rehearing of the CPUC’s June 2014 final decision. In March 2015, the CPUC issued a decision denying the ORA’s and TURN’s second request for rehearing, but keeping the record open to admit additional evidence on the limited issue of pressure testing or replacing pipelines installed between January 1, 1956 and July 1, 1961. The ORA and TURN allege 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 December 2015, the CPUC issued a final decision finding that ratepayers should not bear the costs associated with pressure testing subject pipelines, or, if replaced, ratepayers should bear neither the average cost of pressure testing nor the undepreciated balance of abandoned pipelines. In January 2016, SoCalGas and SDG&E jointly filed a request with the CPUC seeking rehearing of its December 2015 decision. In May 2016, the CPUC issued a decision denying the request for rehearing. Through September 30, 2016, the after-tax disallowed costs for SoCalGas and SDG&E are $3.6 million and $0.5 million, respectively.

In October 2014, SDG&E and SoCalGas filed a petition with the CPUC requesting authority to begin to recover PSEP costs from customers in the year in which the costs are incurred, subject to refund pending the results of a reasonableness review by the CPUC, instead of recovery of such costs in a subsequent year.

In August 2016, the CPUC issued a final decision authorizing SoCalGas and SDG&E to recover, subject to refund pending reasonableness reviews, the revenue requirements associated with 50 percent of their incurred PSEP Phase 1 costs recorded to regulatory accounts; file two reasonableness review applications for Phase 1 projects completed through 2017; file a Phase 2 revenue requirement forecast application for costs to be incurred in 2017 and 2018; and include in their 2019 GRC applications, and any future GRCs, all other PSEP costs not the subject of prior applications.

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. In June 2015, SDG&E and SoCalGas agreed to remove certain projects from the filing and defer their review to future proceedings when the projects are fully completed. The ORA, TURN and the Southern California Generation Coalition (SCGC) have recommended disallowances related to completed projects, as well as facilities build-out costs, de-scoped projects, and project management and consulting costs. The CPUC issued a proposed decision in September 2016, revised in October 2016, finding the costs associated with completed projects reasonable and approving $0.1 million and $33.1 million of the total costs requested by SDG&E and SoCalGas, respectively. The proposed decision does not approve approximately $2 million in insurance-related costs, but allows SDG&E and SoCalGas to seek recovery at a later date. A final decision is expected in the fourth quarter of 2016.

In September 2016, SoCalGas and SDG&E filed a joint application with the CPUC for reasonableness review and rate recovery of costs of certain pipeline safety projects completed by June 30, 2015 and recorded in their authorized regulatory accounts. The total costs submitted for review are $180.5 million for SoCalGas and $14.9 million for SDG&E. SoCalGas and SDG&E expect a decision from the CPUC in 2017.

SDG&E MATTERS

Wildfire Claims Cost Recovery

In September 2015, SDG&E filed an application with the CPUC requesting rate recovery of an estimated $379 million in costs related to the October 2007 wildfires that have been recorded to the Wildfire Expense Memorandum Account (WEMA). These costs represent a portion of the estimated total of $2.4 billion in costs and legal fees that SDG&E has incurred to resolve third-party damage claims arising from the October 2007 wildfires. The requested amount of $379 million is the net estimated cost incurred by SDG&E after deductions for insurance reimbursement ($1.1 billion), third party settlement recoveries ($824 million) and allocations to FERC-jurisdictional rates ($80 million), and reflects a voluntary 10 percent shareholder contribution applied to the net WEMA balance ($42 million). SDG&E requested a CPUC decision by the end of 2016 and is proposing to recover the costs in rates over a six- to ten-year period. In April 2016, the CPUC issued a ruling establishing the scope and schedule for the proceeding, which will be managed in two phases. Phase 1 will address SDG&E’s operational and management prudence surrounding the 2007 wildfires. Phase 2 will address whether SDG&E’s actions and decision-making in connection with settling legal claims in relation to the wildfires were reasonable. In October 2016, intervening parties submitted Phase 1 testimony raising various concerns with SDG&E’s operations and management prior to and during the 2007 wildfires. Participating parties asked that the CPUC reject SDG&E’s request for cost recovery. Evidentiary hearings in Phase 1 are scheduled to be held in January 2017, with a final decision scheduled to be issued in the second half of 2017. The procedural schedule for Phase 2 will be determined after Phase 1 is concluded.

In September 2015, the presiding judge assigned by the FERC to SDG&E’s annual Electric Transmission Formula Rate filing (TO4 Formula Cycle 2) issued an initial decision and an order on summary judgment that authorized SDG&E to recover all of the costs incurred and allocated to SDG&E’s FERC-regulated operations, including $23.1 million of costs associated with the 2007 wildfires. In October 2015, the CPUC filed a request for rehearing of the FERC’s September 2015 order, which requested abeyance of SDG&E’s request to recover 2007 wildfire damage expenses. In April 2016, the FERC affirmed its findings in the September 2015 order and denied the CPUC’s request for rehearing. The FERC decision finalizes SDG&E’s base transmission revenue requirement and the recovery of $23.1 million of wildfire damage expenses allocated to SDG&E’s FERC-regulated operations.

We provide additional information about wildfire litigation costs and their recovery in Note 11.

SONGS

We discuss regulatory and other matters related to SONGS in Note 9.

SOCALGAS MATTERS

Aliso Canyon Turbine Replacement Project

In September 2016, SoCalGas received a citation from the CPUC alleging non-compliance with environmental mitigation measures outlined in the final environmental impact report for the Aliso Canyon Turbine Replacement Project. In particular, the allegations assert that SoCalGas failed to properly implement and maintain mitigation measures prescribed in the project’s Storm Water Pollution Prevention Plan, which is designed primarily to protect overall water quality and to minimize erosion and sedimentation during construction. Additionally, the CPUC alleges that SoCalGas crews repeatedly encroached upon a nesting bird buffer zone during construction. As a result of procedural matters, the CPUC re-issued the citation on October 26, 2016. The fines associated with the citation are approximately $700,000. SoCalGas is in the process of evaluating the citation and its options in response to the citation.

Aliso Canyon Natural Gas Storage Facility

We discuss various regulatory matters regarding the Aliso Canyon natural gas storage facility and leak in Note 11.

Natural Gas Procurement

In June 2016, SoCalGas filed an application for a gas cost incentive mechanism award of $5 million for natural gas procured for its core customers during the 12-month period ended March 31, 2016. The CPUC’s current schedule calls for a decision in the first half of 2017.

CALIFORNIA UTILITIES — MAJOR PROJECTS

We discuss the California Utilities’ major projects in detail in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and details in the tables below.



MAJOR PROJECTS – UPDATES

Joint Utilities Projects
Southern Gas System Reliability Project (North-South Pipeline)


▪	In July 2016, the CPUC issued a final decision which denies the California Utilities’ request for a permit to construct.

▪

In June 2016, SoCalGas recorded an after-tax impairment charge of $13 million for the development costs it had invested in the project. The pretax charge of $22 million is included in Impairment Losses on Sempra Energy’s and SoCalGas’ Condensed Consolidated Statements of Operations for the nine months ended September 30, 2016. We expect to make a filing to the CPUC seeking recovery of all or a portion of these costs.



Pipeline Safety & Reliability Project

▪

SDG&E and SoCalGas filed an amended application with the CPUC in March 2016 providing detailed analysis and testimony supporting the proposed project. The revised request also presents additional information on the costs and benefits of project alternatives, safety evaluation and compliance analysis, and statutory and procedural requirements. SDG&E and SoCalGas seek approval to construct the proposed project, estimated at a cost of $633 million, and authority to recover the associated revenue requirement in rates.




SDG&E Projects
Cleveland National Forest (CNF) Transmission Projects


▪	In May 2016, the CPUC issued a final decision granting SDG&E a permit to construct. The project will be installed at an estimated cost of $680 million: $470 million for the various transmission-level facilities and $210 million for associated distribution-level facilities, including distribution circuits and additional undergrounding required by the final environmental impact statement.


▪	In July 2016, the Cleveland National Forest Foundation and the Protect Our Communities Foundation filed a joint application for rehearing of the final decision.



Sycamore-Peñasquitos Transmission Project


▪	In October 2016, the CPUC issued a final decision granting SDG&E a Certificate of Public Convenience and Necessity (CPCN) to construct the project, with a cost cap of $260 million.



South Orange County Reliability Enhancement

▪

CPUC issued its final environmental impact report (EIR) for the project in April 2016. The EIR concluded that an alternative project is considered environmentally superior to SDG&E’s proposal. The final EIR states that the CPUC is not required to adopt the environmentally superior alternative if there are overriding considerations in favor of another alternative. The CPUC will consider the findings in determining whether to approve SDG&E’s proposed project or an alternative to it.

▪

In September 2016, draft and alternate decisions were issued by the Administrative Law Judge (ALJ) and Assigned Commissioner. The ALJ decision rejects SDG&E’s proposed project and grants a CPCN to construct the project identified as environmentally superior in the final EIR. The Assigned Commissioner decision determines that the environmentally superior project is infeasible and, given overriding considerations, grants SDG&E a CPCN to construct its proposed project with a project cost cap of $381 million.


▪	Final CPUC decision expected in fourth quarter of 2016.



Energy Storage Projects


▪	In August 2016, the CPUC approved SDG&E’s request to own and operate two energy storage projects totaling 37.5 MW. The purpose of the two projects is to enhance electric reliability in the San Diego service territory.


▪	Expected completion in the first quarter of 2017.

CALIFORNIA UTILITIES' REGULATORY MATTERS

9 Months Ended

Sep. 30, 2016

Regulated Operations [Abstract]

California Utilities' Regulatory Matters

SAN ONOFRE NUCLEAR GENERATING STATION (SONGS)

SONGS Steam Generator Replacement Project

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

Accounting and Financial Impacts

Settlement with Nuclear Electric Insurance Limited (NEIL)

Nuclear Decommissioning and Funding

Nuclear Decommissioning Trusts

The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 8.



NUCLEAR DECOMMISSIONING TRUSTS
(Dollars in millions)
	Cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
At September 30, 2016:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies(1)	$	95	$	5	$	—		$	100
Municipal bonds(2)	150		11		—			161
Other securities(2)	183		9		(4		)	188
Total debt securities	428		25		(4		)	449
Equity securities	188		422		(3		)	607
Cash and cash equivalents	12		—		—			12
Total	$	628	$	447	$	(7	)	$	1,068
At December 31, 2015:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	$	89	$	2	$	—		$	91
Municipal bonds	148		8		—			156
Other securities	194		1		(13		)	182
Total debt securities	431		11		(13		)	429
Equity securities	214		412		(7		)	619
Cash and cash equivalents	15		—		—			15
Total	$	660	$	423	$	(20	)	$	1,063


(1)	Maturity dates are 2017-2065.


(2)	Maturity dates are 2016-2115.

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



SALES OF SECURITIES
(Dollars in millions)
	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Proceeds from sales(1)	$	282		$	210		$	486		$	431
Gross realized gains	24			18			32			24
Gross realized losses	(3		)	(6		)	(14		)	(13		)


(1)	Excludes securities that are held to maturity.

CALIFORNIA UTILITIES’ REGULATORY MATTERS

JOINT MATTERS

CPUC General Rate Case (GRC)

Following is a summary of immediate earnings impacts from the 2016 GRC FD recorded in the second quarter of 2016:



EARNINGS IMPACTS FROM THE 2016 GRC FD RECORDED IN THE SECOND QUARTER OF 2016
(Dollars in millions)
	SoCalGas						SDG&E
	Pretax earnings (charge)			After-tax earnings (charge)			Pretax earnings (charge)			After-tax earnings (charge)
Retroactive revenue requirement increase
for the first quarter of 2016	$	20		$	12		$	15		$	9
Adjustments to revenue related to tax
repairs deductions:
2015 memorandum account balance	$	(72	)	$	(43	)	$	(37	)	$	(22	)
True-up of 2012-2014 estimates to actuals	(11		)	(6		)	(15		)	(9		)
Total	$	(83	)	$	(49	)	$	(52	)	$	(31	)


▪	net revenue changes;


▪	mandatory tax law, tax accounting, tax procedural, or tax policy changes; and


▪	elective tax law, tax accounting, tax procedural, or tax policy changes.

Natural Gas Pipeline Operations Safety Assessments


▪	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 regulatory accounts authorized by the CPUC;


▪	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.

SDG&E MATTERS

Wildfire Claims Cost Recovery

We provide additional information about wildfire litigation costs and their recovery in Note 11.

SONGS

We discuss regulatory and other matters related to SONGS in Note 9.

SOCALGAS MATTERS

Aliso Canyon Turbine Replacement Project

Aliso Canyon Natural Gas Storage Facility

We discuss various regulatory matters regarding the Aliso Canyon natural gas storage facility and leak in Note 11.

Natural Gas Procurement

CALIFORNIA UTILITIES — MAJOR PROJECTS



MAJOR PROJECTS – UPDATES

Joint Utilities Projects
Southern Gas System Reliability Project (North-South Pipeline)


▪	In July 2016, the CPUC issued a final decision which denies the California Utilities’ request for a permit to construct.

▪



Pipeline Safety & Reliability Project

▪




SDG&E Projects
Cleveland National Forest (CNF) Transmission Projects


▪	In May 2016, the CPUC issued a final decision granting SDG&E a permit to construct. The project will be installed at an estimated cost of $680 million: $470 million for the various transmission-level facilities and $210 million for associated distribution-level facilities, including distribution circuits and additional undergrounding required by the final environmental impact statement.


▪	In July 2016, the Cleveland National Forest Foundation and the Protect Our Communities Foundation filed a joint application for rehearing of the final decision.



Sycamore-Peñasquitos Transmission Project


▪	In October 2016, the CPUC issued a final decision granting SDG&E a Certificate of Public Convenience and Necessity (CPCN) to construct the project, with a cost cap of $260 million.



South Orange County Reliability Enhancement

▪


▪	Final CPUC decision expected in fourth quarter of 2016.



Energy Storage Projects


▪	In August 2016, the CPUC approved SDG&E’s request to own and operate two energy storage projects totaling 37.5 MW. The purpose of the two projects is to enhance electric reliability in the San Diego service territory.


▪	Expected completion in the first quarter of 2017.

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

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 September 30, 2016, Sempra Energy’s accrued liabilities for legal proceedings, including associated legal fees and costs of litigation, on a consolidated basis, were $23 million. At September 30, 2016, accrued liabilities for legal proceedings were $21 million for SDG&E and $1 million for SoCalGas. Amounts for Sempra Energy and SoCalGas include $1 million for matters related to the Aliso Canyon natural gas leak, which we discuss below.

SDG&E

2007 Wildfire Litigation

In October 2007, San Diego County experienced several catastrophic wildfires. Reports issued by the California Department of Forestry and Fire Protection (Cal Fire) concluded that two of these fires (the Witch and Rice fires) were SDG&E “power line caused” and that a third fire (the Guejito fire) occurred when a wire securing a Cox Communications’ (Cox) fiber optic cable came into contact with an SDG&E power line “causing an arc and starting the fire.” A September 2008 staff report issued by the CPUC’s Consumer Protection and Safety Division, now known as the Safety and Enforcement Division, 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.

Numerous parties 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 asserted 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 almost all of these lawsuits. One Superior Court case remains in which the plaintiff is challenging the dismissal of her lawsuit and an appeal is likely. Only one appeal remains pending after judgment in the trial court. SDG&E does not expect additional plaintiffs to file lawsuits given the applicable statutes of limitation, but could receive additional settlement demands and damage estimates from the remaining plaintiff until the case is resolved. SDG&E establishes reserves for the wildfire litigation as information becomes available and amounts are estimable.

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, at September 30, 2016, Sempra Energy and SDG&E have recorded assets of $356 million in Other Regulatory Assets (long-term) on their Condensed Consolidated Balance Sheets, including $354 million related to CPUC-regulated operations, which represents the amount substantially equal to the aggregate amount it has paid and 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. On September 25, 2015, SDG&E filed an application with the CPUC seeking authority to recover these costs, as we discuss in Note 10. 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 September 30, 2016, the resulting after-tax charge against earnings would have been up to approximately $210 million. A failure to obtain substantial or full recovery of these costs from customers, or any negative assessment of the likelihood of recovery, would likely have a material adverse effect on Sempra Energy’s and SDG&E’s results of operations and cash flows.

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

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 as part of Multi-District Litigation (MDL) proceedings, 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 sought injunctive relief and recovery of unspecified amounts of damages. The third party vendor has settled the lawsuit without cost to SDG&E, and a dismissal was entered in federal court on July 20, 2016.

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 counterclaim 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 participated in the arbitration as a claimant and respondent. The arbitration hearing concluded at the end of April 2016, and a decision could come as early as this year.

Rim Rock 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 were 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 and the project developer began litigating claims against each other regarding whether the project developer had timely satisfied all contractual conditions necessary to trigger SDG&E’s obligations to invest in the project and purchase renewable energy credits. On February 11, 2016, SDG&E, the project developer and several of the project developer’s parent and affiliated entities entered into a settlement agreement, which was approved by the CPUC in July 2016 and all related lawsuits were dismissed. Under the settlement agreement, among other things, the parties agreed to terminate the tax equity investment arrangement, continue the power purchase agreement for the wind farm generation and release all claims against each other, while generally continuing the other elements of the 2011 approved decision. The settlement agreement will result in a $39 million credit to ratepayers.

SoCalGas

Aliso Canyon Natural Gas Storage Facility Gas Leak

On October 23, 2015, SoCalGas discovered a leak at one of its injection and withdrawal wells, SS25, at its Aliso Canyon natural gas storage facility, located in the northern part of the San Fernando Valley in Los Angeles County. The Aliso Canyon facility has been operated by SoCalGas since 1972. SS25 is more than one mile away from and 1,200 feet above the closest homes. It is one of more than 100 injection and withdrawal wells at the storage facility.

Stopping the Leak, and Local Community Mitigation Efforts. SoCalGas worked closely with several of the world’s leading experts to stop the leak, including planning and obtaining all necessary approvals for drilling relief wells. On February 18, 2016, the California Department of Conservation’s Division of Oil, Gas, and Geothermal Resources (DOGGR) confirmed that the well was permanently sealed.

Pursuant to a stipulation and court order, SoCalGas provided temporary relocation support to residents in the nearby community who requested it before the well was permanently sealed. In connection with the temporary relocation support, on April 27, 2016, the Los Angeles County Superior Court (Superior Court) issued an order extending the relocation support term pending the completion of the Los Angeles County Department of Public Health’s (DPH) indoor testing. Following the release of the results of the DPH’s indoor testing of certain homes in the Porter Ranch community, which concluded that indoor conditions did not present a long-term health risk and that it was safe for residents to return home, the Superior Court issued an order on May 20, 2016, as supplemented by the Superior Court on May 25, 2016, ruling that: (1) currently relocated residents be given the choice to request residence cleaning, to be performed according to the DPH’s proposed protocol and at SoCalGas’ expense, and (2) the relocation program for currently relocated residents would terminate. SoCalGas completed the cleaning program, and the relocation program ended July 24, 2016.

Apart from the Superior Court order, on May 13, 2016, the DPH also issued a directive that SoCalGas professionally clean (in accordance with the proposed protocol prepared by the DPH) the homes of all residents located within the Porter Ranch Neighborhood Council boundary, or who participated in the relocation program, or who are located within a five mile radius of the Aliso Canyon natural gas storage facility and have experienced symptoms from the natural gas leak (the Directive). SoCalGas contends that the Directive is invalid and unenforceable and has filed a petition for writ of mandate to set aside the Directive.

The total costs incurred to remediate and stop the leak and to mitigate local community impacts are significant and may increase, and to the extent not covered by insurance (including any costs in excess of applicable policy limits), or if there were to be significant delays in receiving insurance recoveries, such costs could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations.

Cost Estimates and Accounting Impact. As of September 30, 2016, SoCalGas recorded estimated costs of $763 million related to the leak. Of this amount, approximately 70 percent is for the temporary relocation program (including cleaning costs and certain labor costs) and approximately 20 percent is for efforts to control the well, stop the leak, stop or reduce the emissions, and the estimated cost of the root cause analysis being conducted to determine the cause of the leak. The remaining portion of the $763 million includes legal costs incurred to defend litigation, the value of lost gas, the costs to mitigate the actual natural gas released, and other costs. As the value of lost gas reflects the current replacement cost, the value may fluctuate until such time as replacement gas is purchased and injected into storage. SoCalGas made a commitment in December 2015 to mitigate the actual natural gas released and has been working on a plan to accomplish the mitigation. SoCalGas adjusts its estimated total liability associated with the leak as additional information becomes available. During the third quarter of 2016, the increase in the estimated costs of $46 million was primarily based on the increased scope and duration of the root cause analysis effort, which is controlled by DOGGR, as well as the claims recovery process associated with the relocation program. The $763 million represents management’s best estimate of these costs related to the leak. Of these costs, a substantial portion has been paid and $73 million is recorded as Reserve for Aliso Canyon Costs as of September 30, 2016 on SoCalGas’ and Sempra Energy’s Condensed Consolidated Balance Sheets for amounts expected to be paid after September 30, 2016.

As of September 30, 2016, we recorded the expected recovery of the costs described in the immediately preceding paragraph related to the leak of $664 million as Insurance Receivable for Aliso Canyon Costs on SoCalGas’ and Sempra Energy’s Condensed Consolidated Balance Sheets. This amount is net of insurance retentions and $94 million of insurance proceeds we received in the second and third quarters of 2016 related to control of well expenses and temporary relocation costs. If we were to conclude that this receivable or a portion of it was no longer probable of recovery from insurers, some or all of this receivable would be charged against earnings, which would have a material adverse effect on SoCalGas’ and Sempra Energy’s financial condition, results of operations and cash flows.

The above amounts do not include any unsettled damage awards, restitution, or any civil, administrative or criminal fines, costs or other penalties that may be imposed, as it is not possible to predict the outcome of any criminal or civil proceeding or any administrative action in which such damage awards, restitution or civil or criminal fines, costs or other penalties could be imposed, and any such amounts, if awarded or imposed, cannot be reasonably estimated at this time. In addition, the above amounts do not include the cost to clean additional homes pursuant to the DPH Directive, future legal costs necessary to defend litigation and other potential costs that we currently do not anticipate incurring or that we cannot reasonably estimate.

In March 2016, the CPUC issued a decision directing SoCalGas to establish a memorandum account to prospectively track its authorized revenue requirement and all revenues that it receives for its normal, business-as-usual costs to own and operate the Aliso Canyon gas storage field. The CPUC will determine at a later time whether, and to what extent, the tracked revenues may be refunded to ratepayers. Pursuant to the CPUC’s decision, SoCalGas filed an advice letter requesting to establish a memorandum account to track all business-as-usual costs to own and operate the Aliso Canyon storage field, which has been protested by intervening parties. In July 2016, SoCalGas filed a supplemental advice letter that replaced the term “actual costs” with “normal, business as usual” before each reference to costs. In September 2016, the supplemental filing was approved and made effective as of March 17, 2016, the date of the decision directing the establishment of the account.

Insurance. Excluding directors and officers liability insurance, we have four kinds of insurance policies that together provide between $1.2 billion to $1.4 billion in insurance coverage, depending on the nature of the claims. We cannot predict all of the potential categories of costs or the total amount of costs that we may incur as a result of the leak. In reviewing each of our policies, and subject to various policy limits, exclusions and conditions, based upon what we know as of the filing date of this report, we believe that our insurance policies collectively should cover the following categories of costs: the costs incurred for temporary relocation (including cleaning costs and certain labor costs), costs to address the leak and stop or reduce emissions, the root cause analysis being conducted to determine the cause of the leak, the value of lost natural gas and costs incurred to mitigate the actual natural gas released, the costs associated with litigation and claims by nearby residents and businesses, the cost to clean additional homes as directed by the DPH, and, in some circumstances depending on their nature and manner of assessment, fines and penalties. We have been communicating with our insurance carriers and, as discussed above, we have received insurance payments for control of well costs and temporary relocation costs. We intend to pursue the full extent of our insurance coverage for the costs we have incurred or may incur. There can be no assurance that we will be successful in obtaining insurance coverage for these costs under the applicable policies, and to the extent we are not successful, it could result in a material charge against the earnings of SoCalGas and Sempra Energy.

Our estimate as of September 30, 2016 of $763 million of certain costs in connection with the Aliso Canyon storage facility leak may rise significantly as more information becomes available, and to the extent not covered by insurance (including any costs in excess of applicable policy limits), or if there were to be significant delays in receiving insurance recoveries, such costs could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. In addition, any costs not included in the $763 million estimate could be material, and to the extent not covered by insurance (including any costs in excess of applicable policy limits), could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations.

Governmental Investigations and Civil and Criminal Litigation. Various governmental agencies, including the DOGGR, DPH, South Coast Air Quality Management District (SCAQMD), California Air Resources Board (CARB), Los Angeles Regional Water Quality Control Board (RWQCB), California Division of Occupational Safety and Health (DOSH), CPUC, Pipeline and Hazardous Materials Safety Administration (PHMSA), U.S. Environmental Protection Agency (EPA), Los Angeles County District Attorney’s Office and California Attorney General’s Office, are investigating this incident. Other federal agencies (e.g., the U.S. Departments of Energy (DOE) and Interior (DOI)) also are investigating the incident as part of the joint interagency task force discussed below. On January 25, 2016, the DOGGR and CPUC selected Blade Energy Partners (Blade) to conduct an independent analysis under their supervision and to be funded by SoCalGas to investigate the technical root cause of the Aliso Canyon gas leak. We expect the root cause analysis to be completed in the first half of 2017, but the timing is under the control of Blade, the DOGGR and the CPUC.

As of November 1, 2016, 212 lawsuits, including over 12,000 plaintiffs, have been filed in the Los Angeles County Superior Court against SoCalGas, some of which have also named Sempra Energy. These various lawsuits assert causes of action for negligence, negligence per se, strict liability, property damage, fraud, public and private nuisance (continuing and permanent), trespass, inverse condemnation, fraudulent concealment, unfair business practices and loss of consortium, among other things, and additional litigation may be filed against us in the future related to this incident. A complaint alleging violations of Proposition 65 was also filed. Many of these complaints seek class action status, compensatory and punitive damages, civil penalties, injunctive relief, costs of future medical monitoring and attorneys’ fees. All of these cases, other than a matter brought by the Los Angeles County District Attorney, the federal securities class action and the four shareholder derivative actions discussed below, are coordinated before a single court in the Los Angeles County Superior Court for pretrial management.

In addition to the lawsuits described above, a federal securities class action alleging violation of the federal securities laws has been filed against Sempra Energy and certain of its officers and directors in the United States District Court for the Southern District of California, and four shareholder derivative actions alleging breach of fiduciary duties have been filed against certain officers and directors of Sempra Energy and/or SoCalGas, one in the San Diego County Superior Court, one in the United States District Court for the Southern District of California, and two in the Los Angeles County Superior Court.

Pursuant to the parties’ agreement, the Los Angeles County Superior Court ordered that the individual and business entity plaintiffs (other than the Proposition 65 case, the federal securities class action and the shareholder derivative actions), would proceed by filing consolidated master complaints. Accordingly, on July 25, 2016, the individuals and business entities asserting tort claims filed a Consolidated Case Complaint for Individual Actions through which their separate lawsuits will be managed for pretrial purposes. The consolidated complaint asserts causes of action for negligence, negligence per se, private and public nuisance (continuing and permanent), trespass, inverse condemnation, strict liability, negligent and intentional infliction of emotional distress, fraudulent concealment and loss of consortium against SoCalGas, with certain causes also naming Sempra Energy. The consolidated complaint seeks compensatory and punitive damages for personal injuries, property damage and diminution in property value, a temporary injunction, costs of future medical monitoring, and attorneys’ fees.

On August 8, 2016, also pursuant to the coordination proceeding, a Consolidated Property Class Action Complaint on behalf of a putative class of persons and businesses who own or lease real property within a five-mile radius of the well was filed against SoCalGas and Sempra Energy. The complaint asserts claims for strict liability for ultra-hazardous activities, negligence, negligence per se, trespass, permanent and continuing public and private nuisance, violation of the California Unfair Competition Law and inverse condemnation, and seeks compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees.

Also on August 8, 2016, a Consolidated Class Action Business Complaint was filed against SoCalGas and Sempra Energy on behalf of a putative class of all persons and entities conducting business within five miles of the Aliso Canyon facility. The complaint asserts claims for strict liability for ultra-hazardous activities, negligence, negligent interference with prospective economic advantage and violation of the California Unfair Competition Law, and seeks compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees.

Three complaints have also been filed by public entities, as follows. These lawsuits are included in the coordinated proceedings in the Los Angeles County Superior Court. On August 8, 2016, the California Attorney General, acting in her independent capacity and on behalf of the people of the State of California and the CARB, together with the Los Angeles City Attorney, filed a third amended complaint on behalf of the people of the State of California against SoCalGas alleging public nuisance, violation of the California Unfair Competition Law, violations of California Health and Safety Code sections 41700, prohibiting discharge of air contaminants that cause annoyance to the public, and 25510, requiring reporting of the release of hazardous material, as well as California Government Code section 12607 for equitable relief for the protection of natural resources. The complaint seeks an order for injunctive relief, to abate the public nuisance, and to impose civil penalties.

The SCAQMD filed a complaint against SoCalGas seeking civil penalties for alleged violations of several nuisance-related statutory provisions arising from the leak and delays in stopping the leak. That suit seeks up to $250,000 in civil penalties for each day the violations occurred. On July 13, 2016, the SCAQMD amended its complaint to seek a declaration that SoCalGas is required to pay the costs of a longitudinal study of the health of persons exposed to the gas leak.

On July 25, 2016, the County of Los Angeles, on behalf of itself and the people of the State of California, filed a complaint against SoCalGas in the Los Angeles County Superior Court for public nuisance, unfair competition, breach of franchise agreement, breach of lease, and damages. This suit alleges that the four natural gas storage fields operated or formerly operated by SoCalGas in Los Angeles County require safety upgrades, including the installation of sub-surface safety shut-off valves on every well. It additionally alleges that SoCalGas failed to comply with the DPH Directive. It seeks preliminary and permanent injunctive relief, civil penalties, and damages for the County’s costs to respond to the leak, as well as punitive damages and attorneys’ fees.

Separately, on February 2, 2016, the Los Angeles County District Attorney’s Office filed a misdemeanor criminal complaint against SoCalGas seeking penalties and other remedies for alleged failure to provide timely notice of the leak pursuant to California Health and Safety Code section 25510(a), Los Angeles County Code section 12.56.030, and Title 19 California Code of Regulations section 2703(a), and for allegedly violating California Health and Safety Code section 41700 prohibiting discharge of air contaminants that cause annoyance to the public. On February 16, 2016, SoCalGas pled not guilty to the complaint. On September 13, 2016, SoCalGas entered a plea of no contest to the notice charge under Health and Safety Code section 25510(a) and agreed to pay the maximum fine of $75,000, penalty assessments of approximately $232,500, and up to $4 million in operational commitments, reimbursement and assessments in exchange for the District Attorney’s Office moving to dismiss the remaining counts at sentencing and settling the complaint. The sentencing hearing is currently scheduled for November 29, 2016, at which we expect the court to rule on the motion to dismiss and determine whether to enter judgment on the notice count pursuant to the plea agreement. On October 18, 2016, certain plaintiffs in the separate civil cases filed a “Victims’ Request for Withdrawal of Plea Agreement” seeking to have the court order the withdrawal of the no contest plea or permit a restitution hearing on the nuisance count (SoCalGas pled not guilty to the nuisance count, which under the plea agreement is to be dismissed at sentencing). SoCalGas is implementing the operational commitments pursuant to the terms of the settlement agreement, and we expect that upon completion of those commitments and all other obligations of SoCalGas under the settlement agreement, the District Attorney will move to dismiss the remaining counts at the sentencing hearing.

The costs of defending against these civil and criminal lawsuits and cooperating with these investigations, and any damages, restitution, and civil and criminal fines, costs and other penalties, if awarded or imposed, as well as the costs of mitigating the actual natural gas released, could be significant and to the extent not covered by insurance (including any costs in excess of applicable policy limits), or if there were to be significant delays in receiving insurance recoveries, could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations.

Governmental Orders, Additional Regulation and Reliability. On January 6, 2016, the Governor of the State of California issued the Governor’s Order proclaiming a state of emergency to exist in Los Angeles County due to the natural gas leak at the Aliso Canyon facility. The Governor’s Order directs the following:

•

Protecting Public Health and Safety: State agencies will: continue the prohibition against SoCalGas injecting any gas into the Aliso Canyon storage facility until a comprehensive review, utilizing independent experts, of the safety of the storage wells and the air quality of the surrounding community is completed; expand real-time monitoring of emissions in the surrounding community; convene an independent panel of scientific and medical experts to review public health concerns stemming from the natural gas leak and evaluate whether additional measures are needed to protect public health; and take all actions necessary to ensure the continued reliability of natural gas and electricity supplies in the coming months during the moratorium on gas injections into the Aliso Canyon storage facility.


•	Ensuring Accountability: The CPUC will ensure that SoCalGas covers costs related to the natural gas leak and its response, while protecting ratepayers; and CARB will develop a program to fully mitigate the leak’s emissions of methane by March 31, 2016, with such program to be funded by SoCalGas.

•

Strengthening Oversight: The DOGGR will promulgate emergency regulations for gas storage facility operators throughout the state, requiring: at least daily inspection of gas storage well heads using gas leak detection technology such as infrared imaging; ongoing verification of the mechanical integrity of all gas storage wells; ongoing measurement of annular gas pressure or annular gas flow within wells; regular testing of all safety valves used in wells; minimum and maximum pressure limits for each gas storage facility in the state; and a comprehensive risk management plan for each facility that evaluates and prepares for risks, including corrosion potential of pipes and equipment. Additionally, the DOGGR, CPUC, CARB and California Energy Commission (CEC) will submit to the Governor’s Office a report that assesses the long-term viability of natural gas storage facilities in California.

SoCalGas made a commitment in December 2015 to mitigate the actual natural gas released from the leak and has been working on a plan to accomplish the mitigation. On March 31, 2016, pursuant to the Governor’s Order, the CARB issued its Aliso Canyon Methane Leak Climate Impacts Mitigation Program, which sets forth its recommended approach to achieve full mitigation of the emissions from the Aliso Canyon natural gas leak. The CARB program states that full mitigation requires that the program generate reductions in short-lived climate pollutants and other greenhouse gases at least equivalent to that amount and that the appropriate global warming potential to be used in deriving the amount of reductions required is a 20-year term rather than the 100-year term the CARB and other state and federal agencies use in regulating emissions, resulting in a target of approximately 9,000,000 metric tons of carbon dioxide equivalent. CARB’s program also provides that all of the mitigation is to occur in California over the next five to ten years without the use of allowances or offsets.

On October 21, 2016, CARB issued its final report, Determination of Total Methane Emissions from the Aliso Canyon Natural Gas Leak Incident. The report documents the CARB staff’s determination of the total methane emissions and the amount needed for full mitigation of the climate impacts. CARB concluded that the incident resulted in total emissions from 90,350 to 108,950 metric tons of methane. CARB also asserted that to fully mitigate the greenhouse gas impacts of the leak, the upper bound of the estimate should be used, and therefore SoCalGas should mitigate 109,000 metric tons of methane. We have not agreed with CARB’s estimate of methane released and continue to work with CARB on the mitigation plan.

On January 23, 2016, the Hearing Board of the SCAQMD ordered SoCalGas to, among other things: stop all injections of natural gas except as directed by the CPUC, withdraw the maximum amount of natural gas feasible in a contained and safe manner, subject to orders of the CPUC, and permanently seal the well once the leak has ceased; continuously monitor the well site with infrared cameras until 30 days after the leak has ceased; provide the public with daily air monitoring data collected by SoCalGas; provide the SCAQMD with certain natural gas injection, withdrawal and emissions data from the Aliso Canyon facility; prepare and submit to the SCAQMD for its approval an enhanced leak detection and reporting well inspection program for the Aliso Canyon facility; provide the SCAQMD with funding to develop a continuous air monitoring plan for the Aliso Canyon facility and the nearby schools and community; prepare and submit to the SCAQMD for its approval an air quality notification plan to provide notice to SCAQMD, other public agencies and the nearby community in the event of a future reportable release; and provide the SCAQMD with funding to conduct an independent health study on the potential impacts of exposure on the constituents of the natural gas released from the facility, as well as any odor suppressants used to mitigate odors from the leaking well. SoCalGas has fulfilled its obligations under all of the conditions set forth in the Abatement Order to the satisfaction of the SCAQMD and its Hearing Board, with the exception of the condition that SoCalGas agree to fund the reasonable costs of a study of the health impacts of the leak. While SoCalGas tendered an offer to fund the reasonable costs of a health study and a proposed scope of work for the study, SCAQMD responded that this offer was not acceptable. To date, SCAQMD has not tendered a proposed scope of work or costs to SoCalGas for payment. As described above, SCAQMD amended its civil complaint against SoCalGas to seek a declaration that SoCalGas is required to pay the costs of a longitudinal study of the health of persons exposed to the gas leak. At a September 17, 2016 status hearing, the Hearing Board scheduled a status report hearing on January 18, 2017 regarding the progress of compliance with the health study condition and whether to extend the order, which is set to expire on January 31, 2017.

On April 1, 2016, the Secretary of the DOE and PHMSA jointly announced the formation of an Interagency Task Force on Natural Gas Storage Safety in response to the leak at Aliso Canyon to assess and make recommendations on best practices, response plans and safe operation of gas storage facilities. On June 22, 2016, President Obama signed the “Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2016” or the “PIPES Act of 2016.” Among other things, the PIPES Act: (1) requires PHMSA to issue, within two years of passage, “minimum safety standards for underground natural gas storage facilities;” (2) imposes a “user fee” on underground storage facilities as needed to implement the safety standards; (3) grants PHMSA authority to issue emergency orders and impose emergency restrictions, prohibitions and safety measures on owners and operators of gas or hazardous liquid pipeline facilities without prior notice or an opportunity for hearing, if the Secretary of Energy determines that an unsafe condition or practice, or a combination of unsafe conditions and practices, constitutes or is causing an imminent hazard; and (4) directs the Secretary of Energy to establish an Aliso Canyon Task Force comprised of representatives from the Department of Transportation (DOT), Department of Health and Human Services, EPA, DOI, Department of Commerce, FERC and representatives of state and local governments, as deemed appropriate by the Secretary and the Administrator. The Act expressly allows states to adopt more stringent standards for intrastate underground natural gas storage facilities if such standards are compatible with the minimum standards prescribed under the PIPES Act.

On October 18, 2016, the Interagency Task Force issued its report and recommendations. Overall, the report finds that “while incidents at U.S. underground natural gas storage facilities are rare, the potential consequences of those incidents can be significant and require additional actions to ensure safe and reliable operation over the long term.” In particular, the report recommends that PHMSA adopt as a preliminary set of safety regulations the requirements set out in American Petroleum Institute (API) Recommended Practice 1171, Functional Integrity of Natural Gas Storage in Depleted Hydrocarbon Reservoirs and Aquifer Reservoirs. The report further provides 44 specific recommendations to industry, federal, state, and local regulators and governments intended to reduce the likelihood of future leaks and minimize the impacts of any that occur. We are reviewing the report and recommendations, which may result in additional regulations.

PHMSA, DOGGR, SCAQMD, EPA and CARB have each commenced separate rulemaking proceedings to adopt further regulations covering natural gas storage facilities and injection wells. Regulations issued by DOGGR following the Governor’s Order, as well as California Senate Bill 380, enacted on May 10, 2016, California Senate Bill 887, enacted on September 26, 2016, and California Senate Bill 888, enacted on September 23, 2016, are discussed below. Additional hearings in the State Legislature, as well as with various other federal and state regulatory agencies, have been or are expected to be scheduled, additional legislation has been proposed in the State Legislature, and additional laws, orders, rules and regulations may be adopted. The Los Angeles County Board of Supervisors has formed a task force to review and potentially implement new, more stringent land use (zoning) requirements and associated regulations and enforcement protocols for oil and gas activities, including natural gas storage field operations. Such new requirements could materially affect new or modified uses of the Aliso Canyon and other natural gas storage fields located in the County, including review under the California Environmental Quality Act and mitigation of environmental impacts associated with new and modified uses of the fields.

Higher operating costs and additional capital expenditures incurred by SoCalGas as a result of new laws, orders, rules and regulations arising out of this incident could be significant and may not be recoverable in customer rates, and SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations may be materially adversely affected by any such new laws, orders, rules and regulations.

On June 10, 2016, DOSH issued four citations to SoCalGas alleging violations of various regulations, including that SoCalGas failed to ensure that testing and inspection of well casing and tubing at the Aliso Canyon storage facility complied with testing and inspection requirements, with total penalties of $60,800. On June 27, 2016, SoCalGas filed an appeal of all four citations on the grounds that no violations of the cited regulations occurred, the citations are all preempted by federal law, the citations were not issued in a timely manner, and two of the citations are duplicative.

Adoption of SB 380. The California legislature enacted and the Governor signed Senate Bill (SB) 380, which among other things: (1) continues the prohibition against SoCalGas injecting any natural gas into the Aliso Canyon natural gas storage facility until a comprehensive review of the safety of the gas storage wells at the facility is completed in accordance with regulations adopted by the DOGGR, the State Oil and Gas Supervisor has made a safety determination and other required findings, at least one public hearing has been held in the affected community, and the Executive Director of the CPUC has issued a concurring letter regarding the Supervisor’s determination of safety; (2) requires that all gas storage wells returning to service shall only inject or produce gas through the interior metal tubing and not through the annulus between the tubing and the well casing, which will result in diminished field production capability; (3) requires the CPUC, in consultation with various governmental agencies and other entities, to determine the range of working gas necessary in Aliso Canyon to ensure safety and reliability for the region and just and reasonable rates in California and publish a report that includes such range and the number of wells and associated injection and production capacity required; (4) requires seeking public comments on the report either through written comments or a workshop; and (5) requires the CPUC, no later than July 1, 2017, to open a proceeding to determine the feasibility of minimizing or eliminating use of the Aliso Canyon natural gas storage facility, while still maintaining energy and electric reliability for the region, and to consult with various governmental agencies and other entities in making its determination.

As required by SB 380, on June 28, 2016, the CPUC published the report, Aliso Canyon Working Gas Inventory, Production Capacity, Injection Capacity, and Well Availability for Summer 2016 Reliability (SB 380 Report), which incorporates, and is based on the findings of, the Aliso Canyon Risk Assessment Technical Report which was prepared by the staff of the CAISO, CEC, Los Angeles Department of Water and Power (LADWP), SoCalGas and the CPUC. In that report, among other things, the CPUC determined that SoCalGas would need a withdrawal capacity of 1.119 billion cubic feet (Bcf) per day to meet the reliability needs of customers. In addition, the CPUC directed SoCalGas to keep 17 specified wells that have completed the Phase I testing required by DOGGR available for reliability-related withdrawals. On September 28, 2016, the CPUC authorized SoCalGas to isolate and remove from service the 17 wells that had been kept available for reliability-related withdrawals, so long as SoCalGas maintains a minimum daily withdrawal capacity of 8.6 million cubic feet (MMcf) per hour or 207 MMcf per day at Aliso Canyon.

Adoption of SB 887. The California legislature enacted and the Governor signed SB 887, which establishes a framework for revising State regulations over natural gas storage wells in California. Among other things, the statute directs: (1) CARB, in consultation with any local air district and DOGGR, to develop a natural gas storage facility monitoring program that includes continuous monitoring of the ambient concentration of natural gas to identify natural gas leaks and the presence of natural gas emissions in the atmosphere; (2) DOGGR, in consultation with CARB, to determine by regulation what constitutes a reportable leak from a gas storage well and the timeframe for reporting those leaks; (3) DOGGR to perform random onsite inspections of some gas storage wells annually and post the results on its website; (4) the operator of a gas storage well to develop and maintain a comprehensive gas storage well training and mentoring program for those employees whose job duties involve the safety of operations and maintenance of gas storage wells and associated equipment; and (5) the operator of a natural gas storage well to submit to DOGGR for review and approval a comprehensive set of data and information, including, among other things, data to demonstrate stored gas will be confined to an approved zone, a risk management plan and a natural gas leak prevention and response plan.

Adoption of SB 888. The California legislature enacted and the Governor signed SB 888, which requires that a penalty assessed against a gas corporation by the CPUC pursuant to the Public Utilities Act with regard to a natural gas storage facility leak must at least equal the amount necessary to fully offset the impact on the climate from the greenhouse gases emitted by the leak, as determined by CARB. The statute further requires the CPUC to consider the extent to which the gas corporation has mitigated or is in the process of mitigating the impact on the climate from greenhouse gas emissions resulting from the leak.

Natural Gas Storage Operations. SoCalGas estimates that approximately 57 Bcf of natural gas was delivered to customers from an initial starting point of approximately 77 Bcf of gas in storage on October 23, 2015 at the Aliso Canyon facility. SoCalGas completed its measurement of the natural gas lost from the leak and calculated that approximately 4.62 Bcf of natural gas was released from the Aliso Canyon natural gas storage facility as a result of the leak. In January 2016, the CPUC directed SoCalGas to retain a minimum of 15 Bcf of working natural gas to help ensure reliability of the system, with withdrawals permitted only to meet reliability needs under a limited set of circumstances. Effective February 5, 2016, the DOGGR issued Emergency Regulations that amended the California Code of Regulations to require all underground natural gas storage facility operators, including SoCalGas, to take further steps to help ensure the safety of their gas storage operations. On July 8, 2016, DOGGR issued a Discussion Draft of new permanent regulations for all storage fields in California.

Natural gas withdrawn from storage is important for service reliability during peak demand periods, including peak electric generation needs in the summer and heating needs in the winter. Aliso Canyon, with a storage capacity of 86 Bcf, is the largest SoCalGas storage facility and an important element of SoCalGas’ delivery system. Aliso Canyon represents 63 percent of SoCalGas’ owned natural gas storage inventory capacity. SoCalGas has not injected natural gas into Aliso Canyon since October 25, 2015, in accordance with the Governor’s Order, but in conflict with the CPUC’s reliability-based direction, which requires injections to reach higher inventory levels prior to the winter season. On March 4, 2016, the DOGGR issued Order 1109, Order to Take Specific Actions Regarding Aliso Canyon Gas Storage Facility (Safety Review Testing Regime). On April 7, 2016, SoCalGas announced its safety framework to comply with the DOGGR Order 1109, which consists of phased testing for each of the active injection wells in the Aliso Canyon storage facility. SoCalGas will continue this moratorium on further injections until all required approvals have been obtained.

On November 1, 2016, SoCalGas submitted a request to DOGGR to resume injection operations at the Aliso Canyon storage facility. Under SB 380, before authorizing the commencement of injections at the facility, DOGGR must hold a public meeting in the affected community to provide the public an opportunity to comment on the safety review findings, and the CPUC must concur with DOGGR’s safety determination in writing.

On April 5, 2016, four energy agencies—the CPUC, CEC, CAISO, and LADWP—issued an Aliso Canyon Action Plan to Preserve Gas and Electric Reliability for the Los Angeles Basin. In their Action Plan, the agencies recognized that Aliso Canyon is critical to meeting peak demand in both winter and summer. To help mitigate concerns about natural gas service reliability to customers, including related impacts on natural gas-fueled power generation, SoCalGas, SDG&E and 24 customer organizations filed a settlement agreement with the CPUC on April 29, 2016 regarding procedures to help deal with service reliability issues. The procedures, which address supply shortages and surpluses using temporarily modified Operational Flow Order (OFO) tariff provisions, were approved by the CPUC on June 9, 2016, and will be in place through no later than November 30, 2016. There can be no assurance that these measures will prevent gas curtailments or power outages.

If the Aliso Canyon facility were to be taken out of service for any meaningful period of time, it could result in an impairment of the facility, significantly higher than expected operating costs and/or additional capital expenditures, and natural gas reliability and electric generation could be jeopardized. At September 30, 2016, the Aliso Canyon facility has a net book value of $491 million, including $217 million of construction work in progress for the project to construct a new compression station. Any significant impairment of this asset could have a material adverse effect on SoCalGas’ and Sempra Energy’s results of operations for the period in which it is recorded. Higher operating costs and additional capital expenditures incurred by SoCalGas may not be recoverable in customer rates, and SoCalGas’ and Sempra Energy’s results of operations, cash flows and financial condition may be materially adversely affected.

Other

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 six 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. In the second quarter of 2015, the Administrative Court of Baja California confirmed the municipality of Ensenada’s ruling and dismissed the proceeding. In September 2016, the Federal Court dismissed the lawsuit in which the permits were challenged.

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 challenged the ruling, due to lack of notification of the underlying process. Both challenges are pending to be resolved by a Federal Court. 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. In September 2015, the Court granted Sempra Energy’s motion for summary judgment and closed the case. In October 2015, the claimant filed a notice of appeal of the summary judgment and an earlier order dismissing certain of his causes of action.

Additionally, several administrative challenges are pending in Mexico before the Mexican environmental protection agency (SEMARNAT) and 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 was filed with and rejected by the Mexican Communications and Transportation Ministry. In April 2015, the Federal court confirmed the Mexican Communications and Transportation Ministry’s ruling denying the request to revoke the port concession and decided in favor of Energía Costa Azul.

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.

In 2015, the Yaqui tribe, with the exception of the Bácum community, granted its consent and a right of way easement agreement for the construction of the Guaymas-El Oro segment that crosses its territory. Representatives of the Bácum community filed an amparo claim in Mexican Federal Court demanding the right to withhold consent for the project, the stoppage of work in the Yaqui territory and damages. The judge granted a suspension order that prohibited the construction through the Bácum community territory only. As a result, IEnova has been delayed in the construction of approximately 14 kilometers of the Guaymas-El Oro segment of IEnova’s Sonora Pipelines that pass through territory of the Yaqui tribe. While IEnova continues to seek the consent of the Bácum community, it intends to continue construction along such route. IEnova may reroute the pipeline, however, if the circumstances so warrant. Efforts to obtain consent or reroute the pipeline could cause added expense and delays in completion of the pipeline. There can be no assurance that the CFE will agree to extend the deadline for commercial operations or provide payment of transportation services in the event of such delay.

Sempra Natural Gas

Beginning in April 2012, a series of lawsuits were filed against Mobile Gas in Mobile County Circuit Court alleging that in the first half of 2008 Mobile Gas spilled tert-butyl mercaptan, an odorant added to natural gas for safety reasons, in Eight Mile, Alabama. Under the terms of the agreement to sell the outstanding equity of EnergySouth, the parent company of Mobile Gas, as discussed in Note 3, this litigation and any associated liabilities and insurance receivable were retained by Mobile Gas at the close of the transaction in September 2016.

Other Litigation

Sempra Energy holds a noncontrolling interest in RBS Sempra Commodities LLP (RBS Sempra Commodities), a limited liability partnership in the process of being liquidated. The Royal Bank of Scotland plc (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. RBS has asserted that HMRC’s assessment was time-barred. The First-Tier Tribunal held a preliminary hearing on the time-bar issue in September 2016, but has not yet issued its decision. In June 2015, liquidators for three companies that engaged in carbon credit trading via chains that included a company that RBS SEE traded with directly filed a claim in the High Court of Justice against RBS and RBS Sempra Commodities alleging that RBS Sempra Commodities’ and RBS SEE’s participation in transactions involving the sale and purchase of carbon credits resulted in the companies’ incurring VAT liability they were unable to pay. In October 2015, the liquidators’ counsel filed an amended claim adding seven additional trading companies to the claim and asserting damages of £146 million for all 10 companies. Additionally, the claimants dropped RBS Sempra Commodities LLP as a defendant, adding the successor to RBS SEE and JP Morgan, Mercuria Energy Europe Trading Limited (Mercuria), in its stead. JP Morgan has notified us that Mercuria has sought indemnity for the claim, and JP Morgan has in turn sought indemnity from us. Our remaining balance in RBS Sempra Commodities is accounted for under the equity method. The investment balance of $67 million at September 30, 2016 reflects remaining distributions expected to be received from the partnership as it is liquidated. The timing and amount of distributions may be impacted by these matters. We discuss RBS Sempra Commodities further in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.

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 for any liability from the final resolution of these matters. 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 AND OTHER COMMITMENTS

We discuss below significant changes in the first nine months of 2016 to contractual commitments discussed in Notes 1 and 15 of the Notes to Consolidated Financial Statements in the Annual Report.

Natural Gas Contracts

Sempra Natural Gas’ natural gas purchase and transportation commitments have decreased by $224 million since December 31, 2015, primarily due to payments on existing contracts and changes in forward natural gas prices in the first nine months of 2016. Net future payments are expected to decrease by $168 million in 2016, increase by $2 million in 2017 and decrease by $17 million in 2018, $20 million in 2019, $8 million in 2020 and $13 million thereafter compared to December 31, 2015.

In the second quarter of 2016, Sempra Natural Gas permanently released pipeline capacity that it held with Rockies Express and others. The effect of the permanent capacity releases resulted in a pretax charge of $206 million ($123 million after-tax), which is included in Other Cost of Sales on the Sempra Energy Condensed Consolidated Statement of Operations in the nine months ended September 30, 2016. The charge represents an acceleration of costs that would otherwise have been recognized over the duration of the contracts. In connection with the capacity releases, Sempra Natural Gas has recorded $44 million in Other Current Liabilities and $106 million in Deferred Credits and Other on the Sempra Energy Condensed Consolidated Balance Sheet at September 30, 2016, representing the amounts by which Sempra Natural Gas’ obligation to make future capacity payments is expected to exceed proceeds generated from the permanent capacity releases.

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.

Sempra Natural Gas’ commitment under the LNG purchase agreement, reflecting changes in forward prices since December 31, 2015 and actual transactions for the first nine months of 2016, is expected to decrease by $306 million in 2016, increase by $41 million in 2017, and decrease by $18 million in 2018, $59 million in 2019, $98 million in 2020 and $542 million thereafter (through contract termination in 2029) compared to December 31, 2015. These amounts are based on forward prices of the index applicable to the contract from 2016 to 2028 and an estimated one percent escalation in 2029. The LNG commitment amounts above are based on the requirement for Sempra Natural Gas to accept the maximum possible delivery of cargoes under the agreement. Actual LNG purchases in the current and prior years have been significantly lower than the maximum amounts possible due to the customer electing to divert cargoes as allowed by the agreement.

Purchased-Power Contracts

SDG&E’s commitments under purchased-power contracts have increased by $526 million since December 31, 2015, primarily due to the settlement agreement for the Rim Rock Wind Farm, discussed above. Net future payments are expected to increase by $19 million in 2016, $56 million in 2017, $57 million each year in 2018 through 2020 and $280 million thereafter compared to December 31, 2015.

In July 2016, the Ministry of Energy and Mines in Peru amended the basis upon which tolling fees are billed for transmission connection from the generator to the distributor. Prior to the change in law, tolling fees were based on contracted capacity. As a result of the change in law, tolling fees are now based on coincident peak demand. At December 31, 2015, Sempra South American Utilities’ commitments under purchased-power contracts included $1.4 billion of tolling fees that were fixed and determinable. These tolling fees are now variable based on customers’ coincident peak demand.

Construction and Development Projects

In connection with the acquisition of GdC in September 2016, as we discuss in Note 3, contractual commitments for ongoing maintenance services at Sempra Mexico increased by $180 million. The future payments for these contractual commitments are expected to be $4 million in 2016, $15 million each year in 2017 and 2018, $16 million each year in 2019 and 2020, and $114 million thereafter.

Asset Retirement Obligations

Contractual commitments for asset retirement obligations at SDG&E, SoCalGas and Sempra Energy Consolidated increased by $26 million, $316 million and $342 million, respectively, since December 31, 2015, primarily for natural gas assets, as a result of updated cost studies completed for the 2016 GRC filing. We discuss the 2016 GRC in Note 10.

Guarantees

We discuss guarantees related to Sempra Energy in Note 4 above and in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report.

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). 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. See Note 9 under “Settlement with NEIL” for discussion of an agreement between the SONGS co-owners and NEIL to settle all claims under the NEIL policies associated with the SONGS outage.

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 NUCLEAR FUEL DISPOSAL

The Nuclear Waste Policy Act of 1982 made the DOE responsible for accepting, transporting, and disposing 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 continue to support Edison in its pursuit of claims on behalf of the SONGS co-owners against the DOE for its failure to timely accept the spent nuclear fuel. On April 18, 2016, Edison executed a spent fuel settlement agreement with the DOE for $162 million covering damages incurred from January 1, 2006 through December 31, 2013. In May 2016, Edison refunded SDG&E $32 million for its respective share of the damage award paid. In applying this refund, SDG&E recorded a $23 million reduction to the SONGS regulatory asset, an $8 million reduction of its nuclear decommissioning balancing account and a $1 million reduction in its SONGS operation and maintenance cost balancing account.

In September 2016, Edison filed claims with the DOE for $56 million in spent fuel management costs incurred in 2014 and 2015 on behalf of the SONGS co-owners under the terms of the 2016 spent fuel settlement agreement. SDG&E’s respective share of the claim is $11 million. It is unclear whether the claim will be resolved through settlement or arbitration, when resolution is expected, and whether Edison will receive an award for the full claim amount.

In October 2015, the California Coastal Commission approved Edison’s application for the proposed expansion of an Independent Spent Fuel Storage Installation (ISFSI) at SONGS. The ISFSI expansion began construction in 2016, will be fully loaded with spent fuel by 2019, and will operate until 2049, when it is assumed that the DOE will have taken custody of all the SONGS spent fuel. The ISFSI would then be decommissioned, and the site restored to its original environmental state.

We provide additional information about SONGS in Note 9 above and in Notes 13 and 15 of the Notes to Consolidated Financial Statements in the Annual Report.

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 and Peru.

As 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, customers and partners 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

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

We have six separately managed, reportable segments, as follows:


1.	SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County.


2.	SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California.


3.	Sempra South American Utilities develops, owns and operates, or holds interests in, electric transmission, distribution and generation infrastructure in Chile and Peru.

Sempra Mexico develops, owns and operates, or holds interests in, natural gas transmission pipelines and propane and ethane systems, a liquid petroleum gas pipeline and associated storage terminal, a natural gas distribution utility, electric generation facilities (including wind and solar), 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. In February 2016, management approved a plan to market and sell the TdM natural gas-fired power plant located in Mexicali, Baja California, as we discuss in Note 3.


5.	Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy projects in Arizona, California, Colorado, Hawaii, Indiana, Kansas, Michigan, Minnesota, 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 and a terminal for the import and export of LNG and sale of natural gas, all within the United States. In September 2016, Sempra Natural Gas sold EnergySouth, the parent company of Mobile Gas and Willmut Gas, and in May 2016, sold its 25-percent interest in Rockies Express, as we discuss in Note 3. Sempra Natural Gas also owned and operated the Mesquite Power plant, a natural gas-fired electric generation asset, the remaining 625-MW block of which was sold in April 2015.

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 of the Notes to Consolidated Financial Statements in the Annual Report.

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 Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as “All other” in the following tables consist primarily of parent organizations.



SEGMENT INFORMATION
(Dollars in millions)
	Three months ended September 30,										Nine months ended September 30,
	2016					2015					2016					2015
REVENUES
SDG&E	$	1,209		48	%	$	1,230		50	%	$	3,192		44	%	$	3,168		42	%
SoCalGas	686			27		620			25		2,336			32		2,448			33
Sempra South American Utilities	385			15		373			15		1,170			16		1,151			15
Sempra Mexico	196			8		193			8		481			7		508			7
Sempra Renewables	12			1		12			—		25			—		30			—
Sempra Natural Gas	164			6		160			6		384			5		512			7
Adjustments and eliminations	(1		)	—		—			—		(1		)	—		(1		)	—
Intersegment revenues(1)	(116		)	(5	)	(107		)	(4	)	(274		)	(4	)	(286		)	(4	)
Total	$	2,535		100	%	$	2,481		100	%	$	7,313		100	%	$	7,530		100	%
INTEREST EXPENSE
SDG&E	$	49				$	51				$	145				$	155
SoCalGas	25					23					71					61
Sempra South American Utilities	9					9					29					22
Sempra Mexico	5					7					13					18
Sempra Renewables	—					1					—					3
Sempra Natural Gas	11					13					33					57
All other	68					65					214					193
Intercompany eliminations	(31		)			(26		)			(84		)			(93		)
Total	$	136				$	143				$	421				$	416
INTEREST INCOME
SoCalGas	$	—				$	—				$	—				$	3
Sempra South American Utilities	5					5					15					14
Sempra Mexico	2					1					5					5
Sempra Renewables	1					2					2					3
Sempra Natural Gas	19					16					52					60
All other	1					—					1					—
Intercompany eliminations	(21		)			(18		)			(56		)			(62		)
Total	$	7				$	6				$	19				$	23
DEPRECIATION AND AMORTIZATION
SDG&E	$	161		49	%	$	152		48	%	$	478		49	%	$	446		48	%
SoCalGas	121			37		116			37		355			37		342			37
Sempra South American Utilities	14			4		12			4		41			4		37			4
Sempra Mexico	15			5		18			6		47			5		52			6
Sempra Renewables	1			—		2			—		4			—		5			—
Sempra Natural Gas	12			4		12			4		37			4		36			4
All other	4			1		3			1		8			1		7			1
Total	$	328		100	%	$	315		100	%	$	970		100	%	$	925		100	%
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	91				$	75				$	204				$	217
SoCalGas	21					(20		)			75					91
Sempra South American Utilities	17					16					46					50
Sempra Mexico	142					(6		)			170					7
Sempra Renewables	(7		)			(9		)			(29		)			(37		)
Sempra Natural Gas	51					—					(77		)			29
All other	(33		)			(41		)			(105		)			(81		)
Total	$	282				$	15				$	284				$	276



SEGMENT INFORMATION (CONTINUED)
(Dollars in millions)
	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016					2015
EQUITY EARNINGS (LOSSES)
Earnings (losses) recorded before tax:
Sempra Renewables	$	12		$	8		$	30				$	20
Sempra Natural Gas	—			25			(26		)			59
Total	$	12		$	33		$	4				$	79
Earnings (losses) recorded net of tax:
Sempra South American Utilities	$	1		$	(3	)	$	3				$	(4	)
Sempra Mexico	18			30			66					68
Total	$	19		$	27		$	69				$	64
EARNINGS (LOSSES)
SDG&E	$	183		$	170		$	419				$	443
SoCalGas(2)	—			(8		)	198					276
Sempra South American Utilities	46			43			127					129
Sempra Mexico	332			63			407					160
Sempra Renewables	17			15			43					47
Sempra Natural Gas	77			1			(104		)			43
All other	(33		)	(36		)	(99		)			(118		)
Total	$	622		$	248		$	991				$	980
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E							$	959		31	%	$	835		38	%
SoCalGas							949			31		946			42
Sempra South American Utilities							133			4		105			5
Sempra Mexico							232			8		185			8
Sempra Renewables							700			23		47			2
Sempra Natural Gas							100			3		61			3
All other							14			—		48			2
Total							$	3,087		100	%	$	2,227		100	%

							September 30, 2016					December 31, 2015
ASSETS
SDG&E							$	17,446		38	%	$	16,515		40	%
SoCalGas							13,148			29		12,104			29
Sempra South American Utilities							3,488			8		3,235			8
Sempra Mexico							6,359			14		3,783			9
Sempra Renewables							2,112			5		1,441			4
Sempra Natural Gas							5,377			12		5,566			13
All other							640			1		734			2
Intersegment receivables							(3,044		)	(7	)	(2,228		)	(5	)
Total							$	45,526		100	%	$	41,150		100	%
EQUITY METHOD AND OTHER INVESTMENTS
Sempra South American Utilities							$	(1	)			$	(4	)
Sempra Mexico							108					519
Sempra Renewables							819					855
Sempra Natural Gas							838					1,460
All other							76					75
Total							$	1,840				$	2,905

(1)

Revenues for reportable segments include intersegment revenues of $2 million, $21 million, $26 million and $67 million for the three months ended September 30, 2016; $5 million, $56 million, $80 million and $133 million for the nine months ended September 30, 2016; $2 million, $19 million, $24 million and $62 million for the three months ended September 30, 2015; and $7 million, $55 million, $73 million and $151 million for the nine months ended September 30, 2015 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.


(2)	After preferred dividends.

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.

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Variable Interest Entity Policy

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENT On October 13, 2016, IEnova priced a private follow-on offering of its common stock (which trades under the symbol IENOVA on the Mexican Stock Exchange) in the U.S. and outside of Mexico (the International Offering) and a concurrent public common stock offering in Mexico (the Mexican Offering) at 80.00 Mexican pesos per share. The initial purchasers in the International Offering and the underwriters in the Mexican Offering were granted a 30-day option to purchase additional common shares at the global offering price, less the underwriting discount, to cover overallotments. These options were exercised on October 17, 2016. Sempra Energy also participated in the Mexican Offering by purchasing 83,125,000 shares of common stock for approximately $351 million. After the offerings and the exercise of the overallotment options, the aggregate shares of common stock sold in the offerings totaled 380,000,000. Upon completion of the offerings on October 19, 2016, Sempra Energy beneficially owns approximately 66.4 percent of IEnova. The net proceeds of the offerings, including the additional option shares, were approximately $1.57 billion in U.S. dollars or 29.86 billion Mexican pesos. IEnova used the net proceeds of the offerings to repay the $1.150 billion bridge loan from Sempra Global that was used to finance the GdC acquisition and expects to use part of such proceeds to pay for a portion of the purchase price to acquire Ventika in the fourth quarter of 2016. We discuss these acquisitions in Note 3. Any remaining proceeds will be used to fund capital expenditures and for general corporate purposes. All U.S. dollar equivalents presented here were based on an exchange rate of 18.96 Mexican pesos to 1.00 U.S. dollar as of October 13, 2016, the pricing date for the offerings. Net proceeds are after reduction for underwriting discounts and commissions and offering expenses. The International Offering was exempt from registration under the U.S. Securities Act of 1933, as amended (the Securities Act), and shares in the International 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.

NEW ACCOUNTING STANDARDS (Policies)

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

Throughout this report, we refer to the following as Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements when discussed together or collectively:


▪	the Condensed Consolidated Financial Statements and related Notes of Sempra Energy and its subsidiaries and VIEs,


▪	the Condensed Consolidated Financial Statements and related Notes of SDG&E and its VIE, and


▪	the Condensed Financial Statements and related Notes of SoCalGas.

You should read the information in this Quarterly Report in conjunction with the Annual Report.

New Accounting Standards

NEW ACCOUNTING STANDARDS

SEMPRA ENERGY, SDG&E AND SOCALGAS

We early adopted the provisions of ASU 2016-09 during the three months ended September 30, 2016, with an effective date of January 1, 2016. Upon adoption:


▪	Sempra Energy, SDG&E and SoCalGas recognized a cumulative-effect adjustment to retained earnings and a deferred tax asset as of January 1, 2016 of $107 million, $23 million and $15 million, respectively, for previously unrecognized excess tax benefits from share-based compensation.

▪

VARIABLE INTEREST ENTITIES

We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based on 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

Noncontrolling Interest Policy

Earnings Per Share Policy

Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.

Interim period effective tax rate policy

Flow-through rate-making treatment tax policy


▪	repairs expenditures related to a certain portion of utility plant assets


▪	the equity portion of AFUDC


▪	a portion of the cost of removal of utility plant assets


▪	utility self-developed software expenditures


▪	depreciation on a certain portion of utility plant assets


▪	state income taxes

The AFUDC related to equity recorded for regulated construction projects at Sempra Mexico is also subject to flow-through treatment.


▪	net revenue changes,


▪	mandatory tax law, tax accounting, tax procedural, or tax policy changes, and


▪	elective tax law, tax accounting, tax procedural, or tax policy changes.

Derivatives Policy

HEDGE ACCOUNTING

ENERGY DERIVATIVES

•


•	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.

FOREIGN CURRENCY DERIVATIVES

INTEREST RATE DERIVATIVES

Fair Value Measurement Policy

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. We have not changed the valuation techniques or types of inputs we use to measure recurring fair values during the nine months ended September 30, 2016.

The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 7 under “Financial Statement Presentation.”

Our financial assets and liabilities that were accounted for at fair value on a recurring basis at September 30, 2016 and December 31, 2015 in the tables below include the following:

▪


▪	Rabbi Trust 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). These investments in marketable securities were negligible at both September 30, 2016 and December 31, 2015.

A significant increase or decrease in market electricity forward prices would result in a significantly higher or lower fair value, respectively. We summarize long-term, fixed-price electricity position volumes in Note 7.

Fair Value of Financial Instruments

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 7.

Segment Policy

We have six separately managed, reportable segments, as follows:


1.	SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County.


2.	SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California.


3.	Sempra South American Utilities develops, owns and operates, or holds interests in, electric transmission, distribution and generation infrastructure in Chile and Peru.


5.	Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy projects in Arizona, California, Colorado, Hawaii, Indiana, Kansas, Michigan, Minnesota, Nebraska, Nevada and Pennsylvania to serve wholesale electricity markets in the United States.

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.

Legal Costs Policy

LEGAL PROCEEDINGS

ACQUISITION AND DIVESTITURE ACTIVITY (Tables)

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Schedule of Business Acquisition Table

The following table summarizes the total fair value of the business combination and the values of the assets acquired and liabilities assumed at the date of acquisition:



PURCHASE PRICE ALLOCATION – GdC
(Dollars in millions)
		September 26, 2016
Fair value of business combination:
Cash consideration (fair value of total consideration)		$	1,144
Fair value of equity interest in GdC immediately prior to acquisition		1,144
Total fair value of business combination		$	2,288

Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		$	66
Accounts receivable(1)		39
Other current assets		6
Property, plant and equipment		1,248
Other noncurrent assets		1
Accounts payable		(11		)
Due to unconsolidated affiliates		(3		)
Current portion of long-term debt		(49		)
Fixed-price contracts and other derivatives, current		(6		)
Other current liabilities		(20		)
Long-term debt		(315		)
Asset retirement obligations		(5		)
Deferred income taxes		(8		)
Fixed-price contracts and other derivatives, noncurrent		(19		)
Other noncurrent liabilities		(11		)
Total identifiable net assets		913
Goodwill		1,375
Total fair value of business combination		$	2,288
(1)	We expect acquired accounts receivable to be substantially realizable in cash. Accounts receivable are net of negligible collection allowances.

Schedule of Pro Forma Information Table



PRO FORMA INFORMATION – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Revenues	$	2,608	$	2,545	$	7,529	$	7,708
Net income	308		308		744		1,550
Earnings	299		255		685		1,280

Schedule of Assets Held for Sale and Deconsolidation of Subsidiary Table

The following table summarizes the deconsolidation:



DECONSOLIDATION OF SUBSIDIARY
(Dollars in millions)
		EnergySouth Inc.
Proceeds from sale, net of transaction costs		$	304
Cash		(2		)
Inventory		(3		)
Other current assets		(14		)
Regulatory assets		(12		)
Goodwill		(72		)
Other assets		(53		)
Property, plant and equipment, net		(199		)
Accounts payable		12
Other current liabilities		13
Long-term debt		67
Deferred income taxes		36
Regulatory liabilities		23
Asset retirement obligations		12
Other liabilities		18
Gain on sale of business(1)		$	130
(1)	Included in Gain on Sale of Assets on Sempra Energy’s Condensed Consolidated Statements of Operations.

At September 30, 2016, the carrying amounts of the major classes of assets and related liabilities held for sale associated with TdM are as follows:



ASSETS HELD FOR SALE AT SEPTEMBER 30, 2016
(Dollars in millions)
	Termoeléctrica de Mexicali
Cash and cash equivalents	$	1
Inventories	8
Other current assets	25
Deferred income taxes	5
Other assets	22
Property, plant and equipment, net	120
Total assets held for sale	$	181

Accounts payable	$	1
Other current liabilities	7
Asset retirement obligations	4
Other liabilities	23
Total liabilities held for sale	$	35

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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Organization, Consolidation and Presentation of Financial Statements [Abstract]

OTHER FINANCIAL DATA (Tables)

9 Months Ended

Sep. 30, 2016

Inventory Table

The components of inventories by segment are as follows:



INVENTORY BALANCES
(Dollars in millions)
	Natural gas				Liquefied natural gas				Materials and supplies				Total
	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015
SDG&E	$	1	$	6	$	—	$	—	$	72	$	69	$	73	$	75
SoCalGas(1)	24		49		—		—		53		30		77		79
Sempra South American Utilities	—		—		—		—		46		30		46		30
Sempra Mexico	—		—		4		3		2		10		6		13
Sempra Renewables	—		—		—		—		3		3		3		3
Sempra Natural Gas	94		94		3		3		—		1		97		98
Sempra Energy Consolidated	$	119	$	149	$	7	$	6	$	176	$	143	$	302	$	298


(1)	At both September 30, 2016 and December 31, 2015, SoCalGas’ natural gas inventory for core customers is net of an inventory loss related to the Aliso Canyon natural gas leak, which we discuss in Note 11.

Schedule of Goodwill Table

Changes in the carrying amount of goodwill on the Sempra Energy Consolidated Balance Sheets are as follows:



GOODWILL
(Dollars in millions)
		Sempra South American Utilities		Sempra Mexico		Sempra Natural Gas			Total
Balance at December 31, 2015		$	722	$	25	$	72		$	819
Acquisition of business		—		1,375		—			1,375
Sale of business		—		—		(72		)	(72		)
Foreign currency translation(1)		28		—		—			28
Balance at September 30, 2016		$	750	$	1,400	$	—		$	2,150
(1)	We record the offset of this fluctuation to Other Comprehensive Income (Loss).

Variable Interest Entity Table



AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Operating expenses
Cost of electric fuel and purchased power	$	(28	)	$	(27	)	$	(62	)	$	(66	)
Operation and maintenance	4			3			23			13
Depreciation and amortization	8			7			25			19
Total operating expenses	(16		)	(17		)	(14		)	(34		)
Operating income	16			17			14			34
Interest expense	(5		)	(5		)	(15		)	(14		)
Income (loss) before income taxes/Net income (loss)	11			12			(1		)	20
(Earnings) losses attributable to noncontrolling interest	(11		)	(12		)	1			(20		)
Earnings attributable to common shares	$	—		$	—		$	—		$	—

Net Periodic Benefit Cost Table



NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	Three months ended September 30,
	2016			2015			2016			2015
Service cost	$	26		$	27		$	4		$	5
Interest cost	40			38			9			10
Expected return on assets	(41		)	(42		)	(17		)	(17		)
Amortization of:
Prior service cost (credit)	2			3			—			(1		)
Actuarial loss (gain)	10			9			(1		)	—
Settlements	—			4			—			—
Regulatory adjustment	(28		)	(27		)	5			4
Total net periodic benefit cost	$	9		$	12		$	—		$	1

	Nine months ended September 30,
	2016			2015			2016			2015
Service cost	$	81		$	86		$	15		$	19
Interest cost	120			116			31			33
Expected return on assets	(124		)	(130		)	(52		)	(51		)
Amortization of:
Prior service cost (credit)	8			8			—			(2		)
Actuarial loss (gain)	23			28			(1		)	—
Settlements	—			4			—			—
Regulatory adjustment	(84		)	(86		)	9			4
Total net periodic benefit cost	$	24		$	26		$	2		$	3



NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	Three months ended September 30,
	2016			2015			2016			2015
Service cost	$	7		$	6		$	1		$	1
Interest cost	10			9			2			2
Expected return on assets	(12		)	(14		)	(3		)	(2		)
Amortization of:
Actuarial loss	2			3			—			—
Regulatory adjustment	(7		)	(3		)	—			(1		)
Total net periodic benefit cost	$	—		$	1		$	—		$	—

	Nine months ended September 30,
	2016			2015			2016			2015
Service cost	$	22		$	22		$	3		$	5
Interest cost	31			29			6			6
Expected return on assets	(37		)	(41		)	(8		)	(8		)
Amortization of:
Prior service cost	1			1			2			2
Actuarial loss (gain)	7			7			(1		)	—
Regulatory adjustment	(22		)	(15		)	(2		)	(5		)
Total net periodic benefit cost	$	2		$	3		$	—		$	—



NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	Three months ended September 30,
	2016			2015			2016			2015
Service cost	$	16		$	17		$	4		$	3
Interest cost	26			25			7			8
Expected return on assets	(26		)	(25		)	(15		)	(14		)
Amortization of:
Prior service cost (credit)	3			2			(1		)	(2		)
Actuarial loss	3			5			—			—
Regulatory adjustment	(21		)	(24		)	5			5
Total net periodic benefit cost	$	1		$	—		$	—		$	—

	Nine months ended September 30,
	2016			2015			2016			2015
Service cost	$	51		$	55		$	11		$	13
Interest cost	76			74			24			26
Expected return on assets	(78		)	(79		)	(43		)	(42		)
Amortization of:
Prior service cost (credit)	7			6			(3		)	(6		)
Actuarial loss	8			16			—			—
Regulatory adjustment	(62		)	(71		)	11			9
Total net periodic benefit cost	$	2		$	1		$	—		$	—

Contributions to Benefit Plans Table

The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2016:



BENEFIT PLAN CONTRIBUTIONS
(Dollars in millions)
	Sempra Energy Consolidated		SDG&E		SoCalGas
Contributions through September 30, 2016:
Pension plans	$	24	$	2	$	1
Other postretirement benefit plans	3		—		1
Total expected contributions in 2016:
Pension plans	$	124	$	7	$	73
Other postretirement benefit plans	6		2		1

Earnings Per Share Computations Table



EARNINGS PER SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Numerator:
Earnings/Income attributable to common shares	$	622	$	248	$	991	$	980

Denominator:
Weighted-average common shares outstanding for basic EPS(1)	250,386		248,432		250,073		248,090
Dilutive effect of stock options, restricted stock awards and restricted stock units(2)	2,019		2,592		1,903		2,575
Weighted-average common shares outstanding for diluted EPS(2)	252,405		251,024		251,976		250,665

Earnings per share:
Basic	$	2.48	$	1.00	$	3.96	$	3.95
Diluted	2.46		0.99		3.93		3.91

(1)


(2)	Reflects the prospective adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2. Prior to the adoption, the dilutive effect of stock options, restricted stock awards and restricted stock units was reduced by excess tax benefits assumed to be used to repurchase shares on the open market.

Capitalized Financing Costs Table

The following table shows capitalized financing costs for the three months and nine months ended September 30, 2016 and 2015.



CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Sempra Energy Consolidated:
AFUDC related to debt	$	7	$	6	$	22	$	19
AFUDC related to equity	29		26		86		84
Other capitalized interest	26		18		64		52
Total Sempra Energy Consolidated	$	62	$	50	$	172	$	155
SDG&E:
AFUDC related to debt	$	4	$	3	$	12	$	10
AFUDC related to equity	11		9		35		27
Total SDG&E	$	15	$	12	$	47	$	37
SoCalGas:
AFUDC related to debt	$	3	$	3	$	10	$	9
AFUDC related to equity	10		10		30		29
Other capitalized interest	1		1		1		1
Total SoCalGas	$	14	$	14	$	41	$	39

Schedule of Accumulated Other Comprehensive Income (Loss) Table

The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to noncontrolling interests:



CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Foreign currency translation adjustments			Financial instruments			Pension and other postretirement benefits			Total accumulated other comprehensive income (loss)
	Three months ended September 30, 2016 and 2015
2016:
Balance as of June 30, 2016	$	(503	)	$	(264	)	$	(85	)	$	(852	)
Other comprehensive (loss) income before
reclassifications	(28		)	8			—			(20		)
Amounts reclassified from accumulated other
comprehensive income	—			5			2			7
Net other comprehensive (loss) income	(28		)	13			2			(13		)
Balance as of September 30, 2016	$	(531	)	$	(251	)	$	(83	)	$	(865	)
2015:
Balance as of June 30, 2015	$	(427	)	$	(86	)	$	(83	)	$	(596	)
Other comprehensive loss before
reclassifications	(92		)	(79		)	—			(171		)
Amounts reclassified from accumulated other
comprehensive income	—			1			5			6
Net other comprehensive (loss) income	(92		)	(78		)	5			(165		)
Balance as of September 30, 2015	$	(519	)	$	(164	)	$	(78	)	$	(761	)

	Nine months ended September 30, 2016 and 2015
2016:
Balance as of December 31, 2015	$	(582	)	$	(137	)	$	(87	)	$	(806	)
Other comprehensive income (loss) before
reclassifications	51			(122		)	—			(71		)
Amounts reclassified from accumulated other
comprehensive income	—			8			4			12
Net other comprehensive income (loss)	51			(114		)	4			(59		)
Balance as of September 30, 2016	$	(531	)	$	(251	)	$	(83	)	$	(865	)
2015:							.
Balance as of December 31, 2014	$	(322	)	$	(90	)	$	(85	)	$	(497	)
Other comprehensive loss before
reclassifications	(197		)	(76		)	—			(273		)
Amounts reclassified from accumulated other
comprehensive income	—			2			7			9
Net other comprehensive (loss) income	(197		)	(74		)	7			(264		)
Balance as of September 30, 2015	$	(519	)	$	(164	)	$	(78	)	$	(761	)


(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)
	Financial instruments			Pension and other postretirement benefits			Total accumulated other comprehensive income (loss)
	Three months ended September 30, 2016 and 2015
2016:
Balance as of June 30, 2016	$	(14	)	$	(5	)	$	(19	)
Amounts reclassified from accumulated other
comprehensive income	1			—			1
Net other comprehensive income	1			—			1
Balance as of September 30, 2016	$	(13	)	$	(5	)	$	(18	)
2015:
Balance as of June 30 and September 30, 2015	$	(14	)	$	(4	)	$	(18	)

	Nine months ended September 30, 2016 and 2015
2016:
Balance as of December 31, 2015	$	(14	)	$	(5	)	$	(19	)
Amounts reclassified from accumulated other
comprehensive income	1			—			1
Net other comprehensive income	1			—			1
Balance as of September 30, 2016	$	(13	)	$	(5	)	$	(18	)
2015:
Balance as of December 31, 2014 and September 30, 2015	$	(14	)	$	(4	)	$	(18	)
(1) All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.

Reclassifications out of AOCI Table



RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about accumulated other comprehensive income (loss) components	Amounts reclassified from accumulated other comprehensive income (loss)						Affected line item on Condensed Consolidated Statements of Operations
	Three months ended September 30,
	2016			2015
Sempra Energy Consolidated:
Financial instruments:
Interest rate and foreign exchange instruments	$	4		$	5		Interest Expense
Interest rate instruments	3			3			Equity Earnings, Before Income Tax
Interest rate and foreign exchange instruments	7			—			Remeasurement of Equity Method Investment
Interest rate and foreign exchange instruments	(2		)	—			Equity Earnings, Net of Income Tax
Commodity contracts not subject to rate recovery	—			(3		)	Revenues: Energy-Related Businesses
Total before income tax	12			5
	(3		)	(1		)	Income Tax Expense
Net of income tax	9			4
	(4		)	(3		)	Earnings Attributable to Noncontrolling Interests
	$	5		$	1
Pension and other postretirement benefits:
Amortization of actuarial loss	$	4		$	7		See note (1) below
	(2		)	(2		)	Income Tax Expense
Net of income tax	$	2		$	5

Total reclassifications for the period, net of tax	$	7		$	6
SDG&E:
Financial instruments:
Interest rate instruments	$	3		$	3		Interest Expense
	(3		)	(3		)	(Earnings) Losses Attributable to Noncontrolling Interest
Total reclassifications for the period, net of tax	$	—		$	—
SoCalGas:
Financial instruments:
Interest rate instruments	$	1		$	—		Interest Expense
Total reclassifications for the period, net of tax	$	1		$	—


(1)	Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above).



RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about accumulated other comprehensive income (loss) components	Amounts reclassified from accumulated other comprehensive income (loss)						Affected line item on Condensed Consolidated Statements of Operations
	Nine months ended September 30,
	2016			2015
Sempra Energy Consolidated:
Financial instruments:
Interest rate and foreign exchange instruments	$	11		$	14		Interest Expense
Interest rate instruments	8			9			Equity Earnings, Before Income Tax
Interest rate and foreign exchange instruments	7			—			Remeasurement of Equity Method Investment
Interest rate and foreign exchange instruments	4			—			Equity Earnings, Net of Income Tax
Commodity contracts not subject to rate recovery	(7		)	(10		)	Revenues: Energy-Related Businesses
Total before income tax	23			13
	(4		)	(1		)	Income Tax Expense
Net of income tax	19			12
	(11		)	(10		)	Earnings Attributable to Noncontrolling Interests
	$	8		$	2
Pension and other postretirement benefits:
Amortization of actuarial loss	$	8		$	11		See note (1) below
	(4		)	(4		)	Income Tax Expense
Net of income tax	$	4		$	7

Total reclassifications for the period, net of tax	$	12		$	9
SDG&E:
Financial instruments:
Interest rate instruments	$	9		$	9		Interest Expense
	(9		)	(9		)	(Earnings) Losses Attributable to Noncontrolling Interest
Total reclassifications for the period, net of tax	$	—		$	—
SoCalGas:
Financial instruments:
Interest rate instruments	$	1		$	—		Interest Expense
Total reclassifications for the period, net of tax	$	1		$	—


(1)	Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above).

Shareholders' Equity and Noncontrolling Interests Table



SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Sempra Energy shareholders’ equity			Non- controlling interests(1)			Total equity
Balance at December 31, 2015	$	11,809		$	770		$	12,579
Cumulative-effect adjustment from change in accounting principle	107			—			107
Comprehensive income	933			117			1,050
Preferred dividends of subsidiary	(1		)	—			(1		)
Share-based compensation expense	38			—			38
Common stock dividends declared	(565		)	—			(565		)
Issuances of common stock	80			—			80
Repurchases of common stock	(55		)	—			(55		)
Equity contributed by noncontrolling interests	—			2			2
Distributions to noncontrolling interests	—			(44		)	(44		)
Balance at September 30, 2016	$	12,346		$	845		$	13,191
Balance at December 31, 2014	$	11,326		$	774		$	12,100
Comprehensive income	717			56			773
Preferred dividends of subsidiary	(1		)	—			(1		)
Share-based compensation expense	39			—			39
Common stock dividends declared	(520		)	—			(520		)
Issuances of common stock	82			—			82
Repurchases of common stock	(74		)	—			(74		)
Tax benefit related to share-based compensation	56			—			56
Equity contributed by noncontrolling interest	—			1			1
Distributions to noncontrolling interests	—			(60		)	(60		)
Balance at September 30, 2015	$	11,625		$	771		$	12,396


(1)	Noncontrolling interests include the preferred stock of SoCalGas and other noncontrolling interests as listed in the table below under “Other Noncontrolling Interests.”



SHAREHOLDER’S EQUITY AND NONCONTROLLING INTEREST – SDG&E
(Dollars in millions)
	SDG&E shareholder’s equity			Non- controlling interest			Total equity
Balance at December 31, 2015	$	5,223		$	53		$	5,276
Cumulative-effect adjustment from change in accounting principle	23			—			23
Comprehensive income	419			3			422
Common stock dividends declared	(175		)	—			(175		)
Equity contributed by noncontrolling interest	—			1			1
Distributions to noncontrolling interest	—			(7		)	(7		)
Balance at September 30, 2016	$	5,490		$	50		$	5,540
Balance at December 31, 2014	$	4,932		$	60		$	4,992
Comprehensive income	443			20			463
Common stock dividends declared	(150		)	—			(150		)
Distributions to noncontrolling interest	—			(16		)	(16		)
Balance at September 30, 2015	$	5,225		$	64		$	5,289



SHAREHOLDERS’ EQUITY – SOCALGAS
(Dollars in millions)
	SoCalGas shareholders’ equity
Balance at December 31, 2015	$	3,149
Cumulative-effect adjustment from change in accounting principle	15
Comprehensive income	200
Preferred stock dividends declared	(1		)
Balance at September 30, 2016	$	3,363
Balance at December 31, 2014	$	2,781
Comprehensive income	277
Preferred stock dividends declared	(1		)
Common stock dividends declared	(50		)
Balance at September 30, 2015	$	3,007

Ownership Interests Held By Others Table



OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
	Percent ownership held by others
	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015
SDG&E:
Otay Mesa VIE	100	%	100	%	$	50	$	53
Sempra South American Utilities:
Chilquinta Energía subsidiaries(1)	23.1 – 43.4		23.5 – 43.4		22		21
Luz del Sur	16.4		16.4		171		164
Tecsur	9.8		9.8		4		4
Sempra Mexico:
IEnova(2)	18.9		18.9		537		468
Sempra Natural Gas:
Bay Gas Storage Company, Ltd.	9.1		9.1		26		25
Liberty Gas Storage, LLC	23.3		23.2		14		14
Southern Gas Transmission Company	49.0		49.0		1		1
Total Sempra Energy					$	825	$	750


(1)	Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.

(2) On October 19, 2016, IEnova completed follow-on equity offerings that increased the 18.9 percent ownership held by others to 33.6 percent, as we discuss in Note 13.

Transactions with Affiliates Table

Amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas are as follows:



AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	September 30, 2016			December 31, 2015
Sempra Energy Consolidated:
Total due from various unconsolidated affiliates - current	$	8		$	6

Sempra South American Utilities(1):
Eletrans S.A. and Eletrans II S.A.:
4% Note(2)	$	83		$	72
Other related party receivables	1			—
Sempra Mexico(1):
Affiliate of joint venture with DEN:
Note due November 13, 2017(3)	3			3
Note due November 14, 2018(3)	43			42
Note due November 14, 2018(3)	35			34
Note due November 14, 2018(3)	8			8
Energía Sierra Juárez:
Note due June 15, 2018(4)	14			24
Sempra Natural Gas:
Cameron LNG JV	8			3
Total due from unconsolidated affiliates - noncurrent	$	195		$	186

Total due to various unconsolidated affiliates - current	$	(9	)	$	(14	)
SDG&E:
Sempra Energy(5)	$	88		$	—
Other affiliates	—			1
Total due from unconsolidated affiliates - current	$	88		$	1

Sempra Energy	$	—		$	(34	)
SoCalGas	(5		)	(13		)
Other affiliates	(5		)	(8		)
Total due to unconsolidated affiliates - current	$	(10	)	$	(55	)

Income taxes due from Sempra Energy(6)	$	109		$	28
SoCalGas:
Sempra Energy(7)	$	30		$	35
SDG&E	5			13
Total due from unconsolidated affiliates - current	$	35		$	48

Income taxes due from Sempra Energy(6)	$	16		$	1


(1)	Amounts include principal balances plus accumulated interest outstanding.


(2)	U.S. dollar-denominated loan, at a fixed interest rate with no stated maturity date, to provide project financing for the construction of transmission lines at Eletrans S.A. and Eletrans II S.A., both of which are joint ventures of Chilquinta Energía.


(3)	U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 450 basis points (5.03 percent at September 30, 2016), to finance the Los Ramones Norte pipeline project.


(4)	U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 637.5 basis points (6.91 percent at September 30, 2016), to finance the first phase of the Energía Sierra Juárez wind project, which is a joint venture of IEnova.


(5)	At September 30, 2016, net receivable included outstanding advances to Sempra Energy of $107 million at an interest rate of 0.60 percent.


(6)	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 each company having always filed a separate return.


(7)	At September 30, 2016, net receivable included outstanding advances to Sempra Energy of $51 million at an interest rate of 0.57 percent. At December 31, 2015, net receivable included outstanding advances to Sempra Energy of $50 million at an interest rate of 0.11 percent.

Revenues and cost of sales from unconsolidated affiliates are as follows:



REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
REVENUES
Sempra Energy Consolidated	$	5	$	6	$	15	$	22
SDG&E	2		3		5		8
SoCalGas	21		19		56		55
COST OF SALES
Sempra Energy Consolidated	$	10	$	29	$	60	$	78
SDG&E	16		15		46		33

Other Income and Expense Table

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



OTHER INCOME, NET
(Dollars in millions)
	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Sempra Energy Consolidated:
Allowance for equity funds used during construction	$	29		$	26		$	86		$	84
Investment gains (losses)(1)	9			(12		)	29			(5		)
Losses on interest rate and foreign exchange instruments, net	(11		)	(4		)	(23		)	(7		)
Foreign currency transaction losses	(2		)	(3		)	(9		)	(6		)
Sale of other investments	1			2			3			8
Electrical infrastructure relocation income(2)	1			—			4			4
Regulatory interest, net(3)	1			1			4			3
Sundry, net	(2		)	2			4			7
Total	$	26		$	12		$	98		$	88
SDG&E:
Allowance for equity funds used during construction	$	11		$	9		$	35		$	27
Regulatory interest, net(3)	—			1			3			3
Sundry, net	—			(2		)	—			(4		)
Total	$	11		$	8		$	38		$	26
SoCalGas:
Allowance for equity funds used during construction	$	10		$	10		$	30		$	29
Regulatory interest, net(3)	1			—			1			—
Sundry, net	(3		)	(2		)	(7		)	(4		)
Total	$	8		$	8		$	24		$	25


(1)	Represents investment gains (losses) 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.

Income Tax Expense and Effective Income Tax Rates Table



INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
	Income tax expense		Effective income tax rate		Income tax expense (benefit)			Effective income tax rate
	Three months ended September 30,
	2016				2015
Sempra Energy Consolidated	$	282	29	%	$	15		6	%
SDG&E	91		32		75			29
SoCalGas	21		100		(20		)	71

	Nine months ended September 30,
	2016				2015
Sempra Energy Consolidated	$	284	21	%	$	276		22	%
SDG&E	204		33		217			32
SoCalGas	75		27		91			25

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Commodity Derivative Volumes Table

We summarize net energy derivative volumes at September 30, 2016 and December 31, 2015 as follows:



NET ENERGY DERIVATIVE VOLUMES
(Quantities in millions)
Segment and Commodity	Unit of measure	September 30, 2016	December 31, 2015
California Utilities:
SDG&E:
Natural gas	MMBtu(1)	56	70
Electricity	MWh(2)	4	1
Congestion revenue rights	MWh	46	36
SoCalGas – natural gas	MMBtu	2	1

Energy-Related Businesses:
Sempra Natural Gas – natural gas	MMBtu	35	43


(1)	Million British thermal units


(2)	Megawatt hours

Notional Amounts of Interest Rate Derivatives Table

At September 30, 2016 and December 31, 2015, the net notional amounts of our interest rate derivatives, excluding joint ventures, were:



INTEREST RATE DERIVATIVES
(Dollars in millions)
	September 30, 2016			December 31, 2015
	Notional debt		Maturities	Notional debt		Maturities
Sempra Energy Consolidated:
Cash flow hedges(1)(2)	$	753	2016-2028	$	384	2016-2028
Fair value hedges	—		—	300		2016
SDG&E:
Cash flow hedge(1)	307		2016-2019	315		2016-2019


(1)	Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE.


(2)	At September 30, 2016, includes GdC, which was previously a joint venture and excluded from this table.

At September 30, 2016 and December 31, 2015, the net notional amounts of our foreign currency derivatives, excluding joint ventures, were:



FOREIGN CURRENCY DERIVATIVES
(Dollars in millions)
	September 30, 2016			December 31, 2015
	Notional amount		Maturities	Notional amount		Maturities
Sempra Energy Consolidated:
Cross-currency swaps	$	408	2016-2023	$	408	2016-2023
Other foreign currency derivatives(1)	1,481		2016-2018	—		—


(1)	At September 30, 2016, includes GdC, which was previously a joint venture and excluded from this table.

Derivative Instruments on the Condensed Consolidated Balance Sheets Table

The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets at September 30, 2016 and December 31, 2015, 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 CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	September 30, 2016
	Current assets: Fixed-price contracts and other derivatives(1)			Other assets: Sundry			Current liabilities: Fixed-price contracts and other derivatives(2)			Deferred credits and other liabilities: Fixed-price contracts and other derivatives
Sempra Energy Consolidated:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments(3)	$	3		$	—		$	(20	)	$	(224	)
Commodity contracts not subject to rate recovery	—			—			(4		)	—
Derivatives not designated as hedging instruments:
Foreign exchange instruments	2			—			(25		)	—
Commodity contracts not subject to rate recovery	122			25			(128		)	(17		)
Associated offsetting commodity contracts	(114		)	(15		)	114			15
Associated offsetting cash collateral	—			(2		)	17			2
Commodity contracts subject to rate recovery	11			86			(59		)	(165		)
Associated offsetting commodity contracts	(5		)	(1		)	5			1
Associated offsetting cash collateral	—			—			12			17
Net amounts presented on the balance sheet	19			93			(88		)	(371		)
Additional cash collateral for commodity contracts not subject to rate recovery	15			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	19			—			—			—
Total(4)	$	53		$	93		$	(88	)	$	(371	)
SDG&E:
Derivatives designated as hedging instruments:
Interest rate instruments(3)	$	—		$	—		$	(13	)	$	(18	)
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	8			86			(55		)	(165		)
Associated offsetting commodity contracts	(3		)	(1		)	3			1
Associated offsetting cash collateral	—			—			12			17
Net amounts presented on the balance sheet	5			85			(53		)	(165		)
Additional cash collateral for commodity contracts not subject to rate recovery	1			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	17			—			—			—
Total(4)	$	23		$	85		$	(53	)	$	(165	)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	3		$	—		$	(4	)	$	—
Associated offsetting commodity contracts	(2		)	—			2			—
Net amounts presented on the balance sheet	1			—			(2		)	—
Additional cash collateral for commodity contracts not subject to rate recovery	1			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	2			—			—			—
Total	$	4		$	—		$	(2	)	$	—


(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 CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	December 31, 2015
	Current assets: Fixed-price contracts and other derivatives(1)			Other assets: Sundry			Current liabilities: Fixed-price contracts and other derivatives(2)			Deferred credits and other liabilities: Fixed-price contracts and other derivatives
Sempra Energy Consolidated:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments(3)	$	4		$	1		$	(15	)	$	(156	)
Commodity contracts not subject to rate recovery	13			—			—			—
Derivatives not designated as hedging instruments:
Commodity contracts not subject to rate recovery	245			32			(239		)	(21		)
Associated offsetting commodity contracts	(232		)	(20		)	232			20
Associated offsetting cash collateral	(6		)	—			4			—
Commodity contracts subject to rate recovery	28			49			(61		)	(64		)
Associated offsetting commodity contracts	(2		)	(2		)	2			2
Associated offsetting cash collateral	—			—			28			26
Net amounts presented on the balance sheet	50			60			(49		)	(193		)
Additional cash collateral for commodity contracts not subject to rate recovery	2			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	28			—			—			—
Total(4)	$	80		$	60		$	(49	)	$	(193	)
SDG&E:
Derivatives designated as hedging instruments:
Interest rate instruments(3)	$	—		$	—		$	(14	)	$	(23	)
Derivatives not designated as hedging instruments:
Commodity contracts not subject to rate recovery	—			—			(1		)	—
Associated offsetting cash collateral	—			—			1			—
Commodity contracts subject to rate recovery	27			49			(60		)	(64		)
Associated offsetting commodity contracts	(2		)	(2		)	2			2
Associated offsetting cash collateral	—			—			28			26
Net amounts presented on the balance sheet	25			47			(44		)	(59		)
Additional cash collateral for commodity contracts not subject to rate recovery	1			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	27			—			—			—
Total(4)	$	53		$	47		$	(44	)	$	(59	)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts not subject to rate recovery	$	—		$	—		$	(1	)	$	—
Associated offsetting cash collateral	—			—			1			—
Commodity contracts subject to rate recovery	1			—			(1		)	—
Net amounts presented on the balance sheet	1			—			(1		)	—
Additional cash collateral for commodity contracts subject to rate recovery	1			—			—			—
Total	$	2		$	—		$	(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.

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

The effects of derivative instruments designated as hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI for the three months and nine months ended September 30 were:



FAIR VALUE HEDGE IMPACTS
(Dollars in millions)
		Pretax gain (loss) on derivatives recognized in earnings
		Three months ended September 30,				Nine months ended September 30,
	Location	2016		2015		2016			2015
Sempra Energy Consolidated:
Interest rate instruments	Interest Expense	$	—	$	1	$	3		$	5
Interest rate instruments	Other Income, Net	—		—		(2		)	(2		)
Total(1)		$	—	$	1	$	1		$	3


(1)	There was no hedge ineffectiveness in either the three months or nine months ended September 30, 2016 or 2015. All other changes in the fair value of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt and are recorded in Other Income, Net.

Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table



CASH FLOW HEDGE IMPACTS
(Dollars in millions)
	Pretax gain (loss) recognized in OCI							Pretax (loss) gain reclassified from AOCI into earnings
	Three months ended September 30,							Three months ended September 30,
	2016			2015			Location	2016			2015
Sempra Energy Consolidated:
Interest rate and foreign exchange instruments(1)	$	(16	)	$	(10	)	Interest Expense	$	(4	)	$	(5	)
Interest rate instruments	17			(134		)	Equity Earnings, Before Income Tax	(3		)	(3		)
Interest rate and foreign exchange instruments	—			—			Remeasurement of Equity Method Investment	(7		)	—
Interest rate and foreign exchange instruments	13			—			Equity Earnings, Net of Income Tax	2			—
Commodity contracts not subject to rate recovery	2			6			Revenues: Energy- Related Businesses	—			3
Total(2)	$	16		$	(138	)		$	(12	)	$	(5	)
SDG&E:
Interest rate instruments(1)(2)	$	2		$	(4	)	Interest Expense	$	(3	)	$	(3	)
SoCalGas:
Interest rate instruments(2)	$	—		$	—		Interest Expense	$	(1	)	$	—

	Nine months ended September 30,							Nine months ended September 30,
	2016			2015			Location	2016			2015
Sempra Energy Consolidated:
Interest rate and foreign exchange instruments(1)	$	(26	)	$	(22	)	Interest Expense	$	(11	)	$	(14	)
Interest rate instruments	(190		)	(123		)	Equity Earnings, Before Income Tax	(8		)	(9		)
Interest rate and foreign exchange instruments	—			—			Remeasurement of Equity Method Investment	(7		)	—
Interest rate and foreign exchange instruments	(20		)	—			Equity Earnings, Net of Income Tax	(4		)	—
Commodity contracts not subject to rate recovery	(2		)	6			Revenues: Energy- Related Businesses	7			10
Total(2)	$	(238	)	$	(139	)		$	(23	)	$	(13	)
SDG&E:
Interest rate instruments(1)(2)	$	(5	)	$	(9	)	Interest Expense	$	(9	)	$	(9	)
SoCalGas:
Interest rate instruments(2)	$	—		$	—		Interest Expense	$	(1	)	$	—


(1)	Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE.


(2)	Amounts include negligible hedge ineffectiveness in the three months and nine months ended September 30, 2016 and 2015.

Undesignated Derivative Impact on the Condensed Consolidated Statements of Operations Table

The effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations for the three months and nine months ended September 30 were:



UNDESIGNATED DERIVATIVE IMPACTS
(Dollars in millions)
		Pretax (loss) gain on derivatives recognized in earnings
		Three months ended September 30,						Nine months ended September 30,
	Location	2016			2015			2016			2015
Sempra Energy Consolidated:
Foreign exchange instruments	Other Income, Net	$	(11	)	$	(4	)	$	(23	)	$	(7	)
Foreign exchange instruments	Equity Earnings, Net of Income Tax	1			(3		)	3			(4		)
Commodity contracts not subject to rate recovery	Revenues: Energy-Related Businesses	3			21			(26		)	33
Commodity contracts not subject to rate recovery	Operation and Maintenance	—			(2		)	1			(1		)
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	(118		)	(27		)	(90		)	(100		)
Commodity contracts subject to rate recovery	Cost of Natural Gas	—			—			(2		)	1
Total		$	(125	)	$	(15	)	$	(137	)	$	(78	)
SDG&E:
Commodity contracts subject to rate recovery	Operation and Maintenance	$	—		$	(1	)	$	—		$	(1	)
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	(118		)	(27		)	(90		)	(100		)
Total		$	(118	)	$	(28	)	$	(90	)	$	(101	)
SoCalGas:
Commodity contracts not subject to rate recovery	Operation and Maintenance	$	—		$	(1	)	$	—		$	—
Commodity contracts subject to rate recovery	Cost of Natural Gas	—			—			(2		)	1
Total		$	—		$	(1	)	$	(2	)	$	1

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41641-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624163-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41678-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41638-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5580258-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579245-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579240-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41620-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Recurring Fair Value Measures Table

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]



RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Fair value at September 30, 2016
	Level 1		Level 2		Level 3		Netting(1)			Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	607	$	—	$	—	$	—		$	607
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	48		52		—		—			100
Municipal bonds	—		161		—		—			161
Other securities	—		188		—		—			188
Total debt securities	48		401		—		—			449
Total nuclear decommissioning trusts(2)	655		401		—		—			1,056
Interest rate and foreign exchange instruments	—		5		—		—			5
Commodity contracts not subject to rate recovery	—		18		—		13			31
Commodity contracts subject to rate recovery	—		1		90		19			110
Total	$	655	$	425	$	90	$	32		$	1,202

Liabilities:
Interest rate and foreign exchange instruments	$	—	$	269	$	—	$	—		$	269
Commodity contracts not subject to rate recovery	19		1		—		(19		)	1
Commodity contracts subject to rate recovery	1		40		177		(29		)	189
Total	$	20	$	310	$	177	$	(48	)	$	459

	Fair value at December 31, 2015
	Level 1		Level 2		Level 3		Netting(1)			Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	619	$	—	$	—	$	—		$	619
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	47		44		—		—			91
Municipal bonds	—		156		—		—			156
Other securities	—		182		—		—			182
Total debt securities	47		382		—		—			429
Total nuclear decommissioning trusts(2)	666		382		—		—			1,048
Interest rate and foreign exchange instruments	—		5		—		—			5
Commodity contracts not subject to rate recovery	22		16		—		(4		)	34
Commodity contracts subject to rate recovery	—		1		72		28			101
Total	$	688	$	404	$	72	$	24		$	1,188

Liabilities:
Interest rate and foreign exchange instruments	$	—	$	171	$	—	$	—		$	171
Commodity contracts not subject to rate recovery	5		3		—		(4		)	4
Commodity contracts subject to rate recovery	—		68		53		(54		)	67
Total	$	5	$	242	$	53	$	(58	)	$	242


(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements and 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 September 30, 2016
	Level 1		Level 2		Level 3		Netting(1)			Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	607	$	—	$	—	$	—		$	607
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	48		52		—		—			100
Municipal bonds	—		161		—		—			161
Other securities	—		188		—		—			188
Total debt securities	48		401		—		—			449
Total nuclear decommissioning trusts(2)	655		401		—		—			1,056
Commodity contracts not subject to rate recovery	—		—		—		1			1
Commodity contracts subject to rate recovery	—		—		90		17			107
Total	$	655	$	401	$	90	$	18		$	1,164

Liabilities:
Interest rate instruments	$	—	$	31	$	—	$	—		$	31
Commodity contracts subject to rate recovery	—		39		177		(29		)	187
Total	$	—	$	70	$	177	$	(29	)	$	218

	Fair value at December 31, 2015
	Level 1		Level 2		Level 3		Netting(1)			Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	619	$	—	$	—	$	—		$	619
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	47		44		—		—			91
Municipal bonds	—		156		—		—			156
Other securities	—		182		—		—			182
Total debt securities	47		382		—		—			429
Total nuclear decommissioning trusts(2)	666		382		—		—			1,048
Commodity contracts not subject to rate recovery	—		—		—		1			1
Commodity contracts subject to rate recovery	—		—		72		27			99
Total	$	666	$	382	$	72	$	28		$	1,148

Liabilities:
Interest rate instruments	$	—	$	37	$	—	$	—		$	37
Commodity contracts not subject to rate recovery	1		—		—		(1		)	—
Commodity contracts subject to rate recovery	—		67		53		(54		)	66
Total	$	1	$	104	$	53	$	(55	)	$	103


(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements and 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 September 30, 2016
	Level 1		Level 2		Level 3		Netting(1)			Total
Assets:
Commodity contracts not subject to rate recovery	$	—	$	—	$	—	$	1		$	1
Commodity contracts subject to rate recovery	—		1		—		2			3
Total	$	—	$	1	$	—	$	3		$	4

Liabilities:
Commodity contracts subject to rate recovery	$	1	$	1	$	—	$	—		$	2
Total	$	1	$	1	$	—	$	—		$	2

	Fair value at December 31, 2015
	Level 1		Level 2		Level 3		Netting(1)			Total
Assets:
Commodity contracts subject to rate recovery	$	—	$	1	$	—	$	1		$	2
Total	$	—	$	1	$	—	$	1		$	2

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


(1)	Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.

Recurring Fair Value Measures Level 3 Rollforward Table



LEVEL 3 RECONCILIATIONS
(Dollars in millions)
	Three months ended September 30,
	2016			2015
Balance as of July 1	$	24		$	42
Realized and unrealized losses	(145		)	(49		)
Settlements	34			43
Balance as of September 30	$	(87	)	$	36
Change in unrealized losses relating to
instruments still held at September 30	$	(114	)	$	(8	)



	Nine months ended September 30,
	2016			2015
Balance as of January 1	$	19		$	107
Realized and unrealized losses	(138		)	(103		)
Allocated transmission instruments	—			1
Settlements	32			31
Balance as of September 30	$	(87	)	$	36
Change in unrealized losses relating to
instruments still held at September 30	$	(111	)	$	(54	)

Fair Value of Financial Instruments Table

The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets at September 30, 2016 and December 31, 2015:



FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
	September 30, 2016
	Carrying amount		Fair value
	Carrying amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Due from unconsolidated affiliates(1)	$	180	$	—	$	91	$	81	$	172
Total long-term debt(2)(3)	14,149		—		15,335		532		15,867
Preferred stock of subsidiary	20		—		26		—		26
SDG&E:
Total long-term debt(3)(4)	$	4,656	$	—	$	5,024	$	307	$	5,331
SoCalGas:
Total long-term debt(5)	$	3,009	$	—	$	3,323	$	—	$	3,323
Preferred stock	22		—		28		—		28

	December 31, 2015
	Carrying amount		Fair value
	Carrying amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Noncurrent due from unconsolidated affiliates(1)	$	175	$	—	$	97	$	69	$	166
Total long-term debt(2)(3)	13,761		—		13,985		648		14,633
Preferred stock of subsidiary	20		—		23		—		23
SDG&E:
Total long-term debt(3)(4)	$	4,304	$	—	$	4,355	$	315	$	4,670
SoCalGas:
Total long-term debt(5)	$	2,513	$	—	$	2,621	$	—	$	2,621
Preferred stock	22		—		25		—		25


(1)	Excluding accumulated interest outstanding of $15 million and $11 million at September 30, 2016 and December 31, 2015, respectively.

(2)


(3)	Level 3 instruments include $307 million and $315 million at September 30, 2016 and December 31, 2015, respectively, related to Otay Mesa VIE.


(4)	Before reductions for unamortized discount and debt issuance costs of $46 million and $43 million at September 30, 2016 and December 31, 2015, respectively, and excluding capital lease obligations of $241 million and $244 million at September 30, 2016 and December 31, 2015, respectively.


(5)	Before reductions for unamortized discount and debt issuance costs of $27 million and $24 million at September 30, 2016 and December 31, 2015, respectively, and excluding capital lease obligations of $1 million at both September 30, 2016 and December 31, 2015, respectively.

Fair Value Measurements, Nonrecurring Table

The following table summarizes significant inputs impacting our non-recurring fair value measures:



NON-RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Estimated fair value			Valuation technique	Fair value hierarchy	% of fair value measurement	Inputs used to develop measurement	Range of inputs
TdM	$	145	(1)	Market approach	Level 2	100%	Purchase price offers	100%
Investment in GdC	$	1,144	(2)	Market approach	Level 2	100%	Equity sale price	100%
Investment in Rockies Express	$	440	(3)	Market approach	Level 2	100%	Equity sale price	100%


(1)	At measurement date of September 29, 2016. At September 30, 2016, TdM has a carrying value of $146 million, reflecting subsequent business activity, and is classified as held for sale.


(2)	At measurement date of September 26, 2016, immediately prior to acquiring a 100-percent ownership interest in GdC.


(3)	At measurement date of March 29, 2016. On May 9, 2016, Sempra Natural Gas sold its equity interest in Rockies Express.

SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) (Tables)

9 Months Ended

Sep. 30, 2016

Public Utilities, General Disclosures [Abstract]

Schedule of Nuclear Decommissioning Trusts Investments

The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 8.



NUCLEAR DECOMMISSIONING TRUSTS
(Dollars in millions)
	Cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
At September 30, 2016:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies(1)	$	95	$	5	$	—		$	100
Municipal bonds(2)	150		11		—			161
Other securities(2)	183		9		(4		)	188
Total debt securities	428		25		(4		)	449
Equity securities	188		422		(3		)	607
Cash and cash equivalents	12		—		—			12
Total	$	628	$	447	$	(7	)	$	1,068
At December 31, 2015:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	$	89	$	2	$	—		$	91
Municipal bonds	148		8		—			156
Other securities	194		1		(13		)	182
Total debt securities	431		11		(13		)	429
Equity securities	214		412		(7		)	619
Cash and cash equivalents	15		—		—			15
Total	$	660	$	423	$	(20	)	$	1,063


(1)	Maturity dates are 2017-2065.


(2)	Maturity dates are 2016-2115.

Schedule of Sales of Securities By Nuclear Decommissioning Trusts

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



SALES OF SECURITIES
(Dollars in millions)
	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Proceeds from sales(1)	$	282		$	210		$	486		$	431
Gross realized gains	24			18			32			24
Gross realized losses	(3		)	(6		)	(14		)	(13		)


(1)	Excludes securities that are held to maturity.

Schedule of Regulatory Matters

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

CALIFORNIA UTILITIES' REGULATORY MATTERS (Tables)

9 Months Ended

Sep. 30, 2016

Regulated Operations [Abstract]



MAJOR PROJECTS – UPDATES

Joint Utilities Projects
Southern Gas System Reliability Project (North-South Pipeline)


▪	In July 2016, the CPUC issued a final decision which denies the California Utilities’ request for a permit to construct.

▪



Pipeline Safety & Reliability Project

▪




SDG&E Projects
Cleveland National Forest (CNF) Transmission Projects


▪	In May 2016, the CPUC issued a final decision granting SDG&E a permit to construct. The project will be installed at an estimated cost of $680 million: $470 million for the various transmission-level facilities and $210 million for associated distribution-level facilities, including distribution circuits and additional undergrounding required by the final environmental impact statement.


▪	In July 2016, the Cleveland National Forest Foundation and the Protect Our Communities Foundation filed a joint application for rehearing of the final decision.



Sycamore-Peñasquitos Transmission Project


▪	In October 2016, the CPUC issued a final decision granting SDG&E a Certificate of Public Convenience and Necessity (CPCN) to construct the project, with a cost cap of $260 million.



South Orange County Reliability Enhancement

▪


▪	Final CPUC decision expected in fourth quarter of 2016.



Energy Storage Projects


▪	In August 2016, the CPUC approved SDG&E’s request to own and operate two energy storage projects totaling 37.5 MW. The purpose of the two projects is to enhance electric reliability in the San Diego service territory.


▪	Expected completion in the first quarter of 2017.

Following is a summary of immediate earnings impacts from the 2016 GRC FD recorded in the second quarter of 2016:



EARNINGS IMPACTS FROM THE 2016 GRC FD RECORDED IN THE SECOND QUARTER OF 2016
(Dollars in millions)
	SoCalGas						SDG&E
	Pretax earnings (charge)			After-tax earnings (charge)			Pretax earnings (charge)			After-tax earnings (charge)
Retroactive revenue requirement increase
for the first quarter of 2016	$	20		$	12		$	15		$	9
Adjustments to revenue related to tax
repairs deductions:
2015 memorandum account balance	$	(72	)	$	(43	)	$	(37	)	$	(22	)
True-up of 2012-2014 estimates to actuals	(11		)	(6		)	(15		)	(9		)
Total	$	(83	)	$	(49	)	$	(52	)	$	(31	)

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information



SEGMENT INFORMATION
(Dollars in millions)
	Three months ended September 30,										Nine months ended September 30,
	2016					2015					2016					2015
REVENUES
SDG&E	$	1,209		48	%	$	1,230		50	%	$	3,192		44	%	$	3,168		42	%
SoCalGas	686			27		620			25		2,336			32		2,448			33
Sempra South American Utilities	385			15		373			15		1,170			16		1,151			15
Sempra Mexico	196			8		193			8		481			7		508			7
Sempra Renewables	12			1		12			—		25			—		30			—
Sempra Natural Gas	164			6		160			6		384			5		512			7
Adjustments and eliminations	(1		)	—		—			—		(1		)	—		(1		)	—
Intersegment revenues(1)	(116		)	(5	)	(107		)	(4	)	(274		)	(4	)	(286		)	(4	)
Total	$	2,535		100	%	$	2,481		100	%	$	7,313		100	%	$	7,530		100	%
INTEREST EXPENSE
SDG&E	$	49				$	51				$	145				$	155
SoCalGas	25					23					71					61
Sempra South American Utilities	9					9					29					22
Sempra Mexico	5					7					13					18
Sempra Renewables	—					1					—					3
Sempra Natural Gas	11					13					33					57
All other	68					65					214					193
Intercompany eliminations	(31		)			(26		)			(84		)			(93		)
Total	$	136				$	143				$	421				$	416
INTEREST INCOME
SoCalGas	$	—				$	—				$	—				$	3
Sempra South American Utilities	5					5					15					14
Sempra Mexico	2					1					5					5
Sempra Renewables	1					2					2					3
Sempra Natural Gas	19					16					52					60
All other	1					—					1					—
Intercompany eliminations	(21		)			(18		)			(56		)			(62		)
Total	$	7				$	6				$	19				$	23
DEPRECIATION AND AMORTIZATION
SDG&E	$	161		49	%	$	152		48	%	$	478		49	%	$	446		48	%
SoCalGas	121			37		116			37		355			37		342			37
Sempra South American Utilities	14			4		12			4		41			4		37			4
Sempra Mexico	15			5		18			6		47			5		52			6
Sempra Renewables	1			—		2			—		4			—		5			—
Sempra Natural Gas	12			4		12			4		37			4		36			4
All other	4			1		3			1		8			1		7			1
Total	$	328		100	%	$	315		100	%	$	970		100	%	$	925		100	%
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	91				$	75				$	204				$	217
SoCalGas	21					(20		)			75					91
Sempra South American Utilities	17					16					46					50
Sempra Mexico	142					(6		)			170					7
Sempra Renewables	(7		)			(9		)			(29		)			(37		)
Sempra Natural Gas	51					—					(77		)			29
All other	(33		)			(41		)			(105		)			(81		)
Total	$	282				$	15				$	284				$	276



SEGMENT INFORMATION (CONTINUED)
(Dollars in millions)
	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016					2015
EQUITY EARNINGS (LOSSES)
Earnings (losses) recorded before tax:
Sempra Renewables	$	12		$	8		$	30				$	20
Sempra Natural Gas	—			25			(26		)			59
Total	$	12		$	33		$	4				$	79
Earnings (losses) recorded net of tax:
Sempra South American Utilities	$	1		$	(3	)	$	3				$	(4	)
Sempra Mexico	18			30			66					68
Total	$	19		$	27		$	69				$	64
EARNINGS (LOSSES)
SDG&E	$	183		$	170		$	419				$	443
SoCalGas(2)	—			(8		)	198					276
Sempra South American Utilities	46			43			127					129
Sempra Mexico	332			63			407					160
Sempra Renewables	17			15			43					47
Sempra Natural Gas	77			1			(104		)			43
All other	(33		)	(36		)	(99		)			(118		)
Total	$	622		$	248		$	991				$	980
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E							$	959		31	%	$	835		38	%
SoCalGas							949			31		946			42
Sempra South American Utilities							133			4		105			5
Sempra Mexico							232			8		185			8
Sempra Renewables							700			23		47			2
Sempra Natural Gas							100			3		61			3
All other							14			—		48			2
Total							$	3,087		100	%	$	2,227		100	%

							September 30, 2016					December 31, 2015
ASSETS
SDG&E							$	17,446		38	%	$	16,515		40	%
SoCalGas							13,148			29		12,104			29
Sempra South American Utilities							3,488			8		3,235			8
Sempra Mexico							6,359			14		3,783			9
Sempra Renewables							2,112			5		1,441			4
Sempra Natural Gas							5,377			12		5,566			13
All other							640			1		734			2
Intersegment receivables							(3,044		)	(7	)	(2,228		)	(5	)
Total							$	45,526		100	%	$	41,150		100	%
EQUITY METHOD AND OTHER INVESTMENTS
Sempra South American Utilities							$	(1	)			$	(4	)
Sempra Mexico							108					519
Sempra Renewables							819					855
Sempra Natural Gas							838					1,460
All other							76					75
Total							$	1,840				$	2,905

(1)


(2)	After preferred dividends.

NEW ACCOUNTING STANDARDS (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended				6 Months Ended	9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment								$ 107
Net cash provided by financing activities						$ 1,848	$ 29
Net cash provided by operating activities						$ 1,691	$ 2,089
Reduction in weighted-average common shares outstanding for diluted EPS (in shares)	(252,405)			(251,024)		(251,976)	(250,665)
San Diego Gas and Electric Company [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment								23
Net cash provided by financing activities						$ 52	$ (272)
Net cash provided by operating activities						933	1,094
Southern California Gas Company [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment								15
Net cash provided by financing activities						491	544
Net cash provided by operating activities						409	$ 690
Effect of Early Adoption of New Accounting Pronouncement [Member] \| Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Excess tax benefits						34
Net cash provided by financing activities						(34)
Net cash provided by operating activities						34
Reduction in weighted-average common shares outstanding for diluted EPS (in shares)		(98)	(75)		(89)
Deferred tax assets, net								107
Effect of Early Adoption of New Accounting Pronouncement [Member] \| Accounting Standards Update 2016-09 [Member] \| San Diego Gas and Electric Company [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Excess tax benefits						7
Net cash provided by operating activities						7
Deferred tax assets, net								23
Effect of Early Adoption of New Accounting Pronouncement [Member] \| Accounting Standards Update 2016-09 [Member] \| Southern California Gas Company [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Excess tax benefits						4
Net cash provided by operating activities						$ 4
Deferred tax assets, net								15
Effect of Early Adoption of New Accounting Pronouncement [Member] \| Retained Earnings [Member] \| Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment								107
Effect of Early Adoption of New Accounting Pronouncement [Member] \| Retained Earnings [Member] \| Accounting Standards Update 2016-09 [Member] \| San Diego Gas and Electric Company [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment								23
Effect of Early Adoption of New Accounting Pronouncement [Member] \| Retained Earnings [Member] \| Accounting Standards Update 2016-09 [Member] \| Southern California Gas Company [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment								$ 15

ACQUISITION AND DIVESTITURE ACTIVITY - RECENT BUSINESS ACQUISITIONS (Details) $ in Millions, $ in Millions						1 Months Ended		3 Months Ended			9 Months Ended
	Oct. 13, 2016 USD ($) $ / $	Oct. 13, 2016 MXN ($) $ / $	Sep. 26, 2016 USD ($)	Sep. 05, 2016 USD ($) MW	Jul. 01, 2016 USD ($)	Jul. 31, 2016 USD ($) MW	Mar. 31, 2015 USD ($) MW	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 25, 2016
Business Acquisition [Line Items]
Total purchase price net of cash acquired											$ (1,096)	$ (3)
Acquisition related costs									$ 2	$ 1	2	1
Revenues									2,535	2,481	7,313	7,530
Earnings (losses)									622	$ 248	991	$ 980
Sempra Mexico [Member] \| GdC [Member]
Business Acquisition [Line Items]
Cash consideration			$ 1,144
Cash acquired			66
Revenues									3		3
Earnings (losses)									(1)		(1)
Accounts payable acquired			11
Long-term debt assumed			$ 315
Sempra Mexico [Member] \| Ventika [Member]
Business Acquisition [Line Items]
Ownership percentage acquired				100.00%
Power generating capacity \| MW				252
Purchase price				$ 852
Long-term debt assumed				$ 477
Sempra Mexico [Member] \| IEnova [Member] \| GdC [Member]
Business Acquisition [Line Items]
Ownership percentage acquired			50.00%
Total purchase price net of cash acquired			$ 1,078
Ownership percentage after acquisition			100.00%
Ownership percentage before acquisition													50.00%
Cash consideration			$ 1,144
Cash acquired			66
Debt assumed			364
Proceeds from Notes Payable			$ 1,150
Pretax gain for the excess of acquisition date fair value over carrying value									617		617
After-tax gain for the excess of acquisition date fair value over carrying value									432		432
Long-term debt assumed									$ 364		$ 364
Sempra Mexico [Member] \| IEnova [Member] \| Ramones Norte Pipeline [Member]
Business Acquisition [Line Items]
Ownership percentage			25.00%
Sempra Mexico [Member] \| IEnova [Member] \| DEN [Member]
Business Acquisition [Line Items]
Ownership percentage after acquisition			50.00%
Sempra Renewables [Member] \| Black Oak Getty Wind [Member]
Business Acquisition [Line Items]
Ownership percentage after acquisition							100.00%
Power generating capacity \| MW							78
Power purchase agreement term							20 years
Purchase price							$ 8
Sempra Renewables [Member] \| Apple Blossom Wind [Member]
Business Acquisition [Line Items]
Ownership percentage after acquisition						100.00%
Cash consideration					$ 18	$ 22
Power generating capacity \| MW						100
Power purchase agreement term						15 years
Sempra Renewables [Member] \| Apple Blossom Wind [Member] \| Forecast [Member]
Business Acquisition [Line Items]
Cash consideration								$ 4
Subsequent Event [Member] \| IEnova [Member]
Business Acquisition [Line Items]
Cash consideration	$ 351
Proceeds from follow-on share offering	$ 1,570	$ 29,860
Exchange rate \| $ / $	18.96	18.96
Subsequent Event [Member] \| Sempra Mexico [Member] \| IEnova [Member] \| GdC [Member]
Business Acquisition [Line Items]
Proceeds from follow-on share offering	$ 1,570	$ 29,860
Exchange rate \| $ / $	18.96	18.96

ACQUISITION AND DIVESTITURE ACTIVITY - ASSETS ACQUIRED AND LIBILITIES ASSUMED (Details) - USD ($)
$ in Millions

9 Months Ended

Sep. 26, 2016

Sep. 30, 2016

Sep. 30, 2015

Dec. 31, 2015

Business Acquisition [Line Items]

Fair value of equity interest in GdC immediately prior to acquisition

$ 1,144

$ 0

Recognized amounts of identifiable assets acquired and liabilities assumed:

Recognized amounts of identifiable assets acquired and liabilities assumed:

2,150

$ 819

^[1]

Sempra Mexico [Member]

Sempra Mexico [Member] | GdC [Member]

$ 1,400

$ 25

Business Acquisition [Line Items]

Cash consideration (fair value of total consideration)

$ 1,144

Fair value of equity interest in GdC immediately prior to acquisition

1,144

Total fair value of business combination

2,288

Recognized amounts of identifiable assets acquired and liabilities assumed:

Accounts receivable

Other current assets

Due to unconsolidated affiliates

1,248

Other noncurrent assets

Accounts payable

(11)

(3)

Fixed-price contracts and other derivatives, current

(49)

(6)

Other current liabilities

(20)

(315)

(5)

Fixed-price contracts and other derivatives, noncurrent

(8)

(19)

Other noncurrent liabilities

(11)

Total identifiable net assets

913

Total fair value of business combination

1,375

$ 2,288

[1]	Derived from audited financial statements.

ACQUISITION AND DIVESTITURE ACTIVITY - PRO FORMA INFORMATION (Details) - GdC [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Business Acquisition, Pro Forma Information [Abstract]
Revenues	$ 2,608	$ 2,545	$ 7,529	$ 7,708
Net income	308	308	744	1,550
Earnings	$ 299	$ 255	$ 685	$ 1,280
Sempra Mexico [Member]
Business Acquisition, Pro Forma Information [Abstract]
Noncontrolling interest ownership	18.90%		18.90%
Pro Forma [Member] \| Sempra Mexico [Member]
Business Acquisition, Pro Forma Information [Abstract]
Noncontrolling interest ownership	33.60%		33.60%

ACQUISITION AND DIVESTITURE ACTIVITY - ASSETS HELD FOR SALE (Details) $ in Millions	1 Months Ended	3 Months Ended	6 Months Ended	9 Months Ended
	Feb. 29, 2016 MW	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Sep. 30, 2016 USD ($)
Assets Held for Sale [Line Items]
Impairment of equity method investment				$ 131
Impairment of equity method investment after-tax				111
Sempra Mexico [Member] \| TdM [Member]
Assets Held for Sale [Line Items]
Power generating capacity \| MW	625
Impairment of equity method investment		$ 131
Impairment of equity method investment after-tax		111
Deferred tax expense from the outside basis difference			$ 32
Deferred Tax Benefit From The Outside Basis Difference		31
Sempra Mexico [Member] \| Disposal Group, Held-for-sale, Not Discontinued Operations [Member] \| TdM [Member]
Assets Held for Sale, Assets [Abstract]
Cash and cash equivalents		1		1
Inventories		8		8
Other current assets		25		25
Deferred income taxes		5		5
Other assets		22		22
Property, plant and equipment, net		120		120
Total assets held for sale		181		181
Assets Held for Sale, Liabilities [Abstract]
Accounts payable		1		1
Other current liabilities		7		7
Asset retirement obligations		4		4
Other liabilities		23		23
Total liabilities held for sale		$ 35		$ 35

ACQUISITION AND DIVESTITURE ACTIVITY - DIVESTITURES (Details) $ in Millions		1 Months Ended				3 Months Ended		9 Months Ended
	Sep. 12, 2016 USD ($)	May 31, 2016 USD ($)	Apr. 30, 2016	Mar. 31, 2016 USD ($)	Apr. 30, 2015 USD ($) MW	Sep. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Mar. 29, 2016
Schedule of Equity Method Investments [Line Items]
Debt assumed								$ 448	$ 2
Impairment of equity method investment								131
Impairment of equity method investment after-tax								111
Sempra Natural Gas [Member] \| Rockies Express [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage		25.00%		25.00%			25.00%			25.00%
Proceeds from sale of equity method investment		$ 443		$ 440
Carrying value of equity method investment				484			$ 484
Fair value of equity method investment				$ 440			440
Impairment of equity method investment							44	44
Impairment of equity method investment after-tax							$ 27	27
Sempra Natural Gas [Member] \| Energy South [Member]
Schedule of Equity Method Investments [Line Items]
Pre-tax gain on sale								130
After-tax gain on sale								$ 78
Sempra Natural Gas [Member] \| Mesquite Power [Member]
Schedule of Equity Method Investments [Line Items]
Pre-tax gain on sale									61
After-tax gain on sale									$ 36
Proceeds from divestiture of businesses					$ 347
Power generating capacity \| MW					625
Disposed of by Sale [Member] \| Sempra Natural Gas [Member] \| Energy South [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of ownership before transaction			100.00%
Cash proceeds on sale	$ 318
Debt assumed	67
Pre-tax gain on sale	130					$ 130
After-tax gain on sale						$ 78
Proceeds from sale, net of transaction costs	304
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract]
Cash	(2)
Inventory	(3)
Other current assets	(14)
Disposal Group, Including Discontinued Operation, Assets, Noncurrent [Abstract]
Regulatory assets	(12)
Goodwill	(72)
Other assets	(53)
Property, plant and equipment, net	(199)
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract]
Accounts payable	12
Other current liabilities	13
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent [Abstract]
Long-term debt	67
Deferred income taxes	36
Regulatory liabilities	23
Asset retirement obligations	12
Other liabilities	$ 18

INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Apr. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 27, 2016	Sep. 26, 2016	Sep. 25, 2016	May 31, 2016	Mar. 31, 2016	Mar. 29, 2016
Schedule of Equity Method Investments [Line Items]
Capitalized interest		$ 26	$ 18	$ 64	$ 52
Maximum exposure under guarantor obligations		4,500		4,500
Aggregate carrying value of guarantor obligations		$ 58		$ 58
Sempra Mexico [Member] \| GdC [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage acquired							50.00%
Ownership percentage						100.00%	100.00%	50.00%
Sempra Mexico [Member] \| IEnova [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage		40.00%		40.00%
Natural gas transportation service agreement term				25 years
Sempra Mexico [Member] \| TransCanada [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage		60.00%		60.00%
Sempra Mexico [Member] \| Infraestructura Marina del Golfo [Member]
Schedule of Equity Method Investments [Line Items]
Investments made during period				$ 56
Sempra Renewables [Member]
Schedule of Equity Method Investments [Line Items]
Investments made during period				18	18
Sempra Natural Gas [Member] \| Cameron LNG [Member]
Schedule of Equity Method Investments [Line Items]
Investments made during period					10
Capitalized interest				$ 36	$ 36
Sempra Natural Gas [Member] \| Rockies Express [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage									25.00%	25.00%	25.00%
Investments made during period	$ 113

OTHER FINANCIAL DATA - INVENTORIES (Details) - USD ($)
$ in Millions

Sep. 30, 2016

Dec. 31, 2015

$ 119

$ 149

176

143

302

298

^[1]

LIFO reserve

SDG&E [Member]

SoCalGas [Member]

Sempra South American Utilities [Member]

Sempra Mexico [Member]

Sempra Renewables [Member]

Sempra Natural Gas [Member]

Southern California Gas Company [Member] | Minimum [Member]

$ 79

^[1]

LIFO reserve

Permanent LIFO liquidation

Southern California Gas Company [Member] | Maximum [Member]

Permanent LIFO liquidation

$ 15

[1]	Derived from audited financial statements.

OTHER FINANCIAL DATA - GOODWILL (Details)
$ in Millions

9 Months Ended

Sep. 30, 2016

USD ($)

$ 819

^[1]

1,375

(72)

Sempra South American Utilities [Member]

2,150

722

750

Sempra Mexico [Member]

1,375

Sempra Natural Gas [Member]

1,400

(72)

Organization, Consolidation and Presentation of Financial Statements [Abstract]

$ 0

[1]	Derived from audited financial statements.

OTHER FINANCIAL DATA - VARIABLE INTEREST ENTITIES (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) MW	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Variable Interest Entities [Line Items]
Operation and maintenance	$ 703	$ 701	$ 2,109	$ 2,072
Depreciation and amortization	328	315	970	925
Interest expense	(136)	(143)	(421)	(416)
Income (loss) before income taxes/Net income (loss)	719	282	1,110	1,060
(Earnings) losses attributable to noncontrolling interest	(97)	(34)	(118)	(79)
Earnings attributable to common shares	622	248	991	980
Sempra Natural Gas [Member] \| Cameron LNG Holdings [Member]
Investments [Abstract]
Carrying value of equity method investment	838		838		$ 983
San Diego Gas and Electric Company [Member]
Variable Interest Entities [Line Items]
Operating income	323	300	729	809
Interest expense	(49)	(51)	(145)	(155)
Income (loss) before income taxes/Net income (loss)	194	182	418	463
(Earnings) losses attributable to noncontrolling interest	(11)	(12)	$ 1	(20)
San Diego Gas and Electric Company [Member] \| Otay Mesa VIE [Member]
Variable Interest Entities [Line Items]
Power generating capacity \| MW			605
Equity of variable interest entity	50		$ 50		$ 53
Secured debt of variable interest entity	307		307
Cost of electric fuel and purchased power	(28)	(27)	(62)	(66)
Operation and maintenance	4	3	23	13
Depreciation and amortization	8	7	25	19
Total operating expenses	(16)	(17)	(14)	(34)
Operating income	16	17	14	34
Interest expense	(5)	(5)	(15)	(14)
Income (loss) before income taxes/Net income (loss)	11	12	(1)	20
(Earnings) losses attributable to noncontrolling interest	(11)	(12)	1	(20)
Earnings attributable to common shares	$ 0	$ 0	$ 0	$ 0

OTHER FINANCIAL DATA - PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Pension benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 26	$ 27	$ 81	$ 86
Interest cost	40	38	120	116
Expected return on assets	(41)	(42)	(124)	(130)
Amortization of prior service cost (credit)	2	3	8	8
Amortization of actuarial loss (gain)	10	9	23	28
Settlements	0	4	0	4
Regulatory adjustment	(28)	(27)	(84)	(86)
Total net periodic benefit cost	9	12	24	26
Contributions by employer			24
Expected contributions in current fiscal year			124
Pension benefits [Member] \| San Diego Gas and Electric Company [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	7	6	22	22
Interest cost	10	9	31	29
Expected return on assets	(12)	(14)	(37)	(41)
Amortization of prior service cost (credit)			1	1
Amortization of actuarial loss (gain)	2	3	7	7
Regulatory adjustment	(7)	(3)	(22)	(15)
Total net periodic benefit cost	0	1	2	3
Contributions by employer			2
Expected contributions in current fiscal year			7
Pension benefits [Member] \| Southern California Gas Company [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	16	17	51	55
Interest cost	26	25	76	74
Expected return on assets	(26)	(25)	(78)	(79)
Amortization of prior service cost (credit)	3	2	7	6
Amortization of actuarial loss (gain)	3	5	8	16
Regulatory adjustment	(21)	(24)	(62)	(71)
Total net periodic benefit cost	1	0	2	1
Contributions by employer			1
Expected contributions in current fiscal year			73
Other postretirement benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	4	5	15	19
Interest cost	9	10	31	33
Expected return on assets	(17)	(17)	(52)	(51)
Amortization of prior service cost (credit)	0	(1)	0	(2)
Amortization of actuarial loss (gain)	(1)	0	(1)	0
Settlements	0	0	0	0
Regulatory adjustment	5	4	9	4
Total net periodic benefit cost	0	1	2	3
Contributions by employer			3
Expected contributions in current fiscal year			6
Other postretirement benefits [Member] \| San Diego Gas and Electric Company [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	1	1	3	5
Interest cost	2	2	6	6
Expected return on assets	(3)	(2)	(8)	(8)
Amortization of prior service cost (credit)			2	2
Amortization of actuarial loss (gain)	0	0	(1)	0
Regulatory adjustment	0	(1)	(2)	(5)
Total net periodic benefit cost	0	0	0	0
Contributions by employer			0
Expected contributions in current fiscal year			2
Other postretirement benefits [Member] \| Southern California Gas Company [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	4	3	11	13
Interest cost	7	8	24	26
Expected return on assets	(15)	(14)	(43)	(42)
Amortization of prior service cost (credit)	(1)	(2)	(3)	(6)
Amortization of actuarial loss (gain)	0	0	0	0
Regulatory adjustment	5	5	11	9
Total net periodic benefit cost	$ 0	$ 0	0	$ 0
Contributions by employer			1
Expected contributions in current fiscal year			$ 1

OTHER FINANCIAL DATA - RABBI TRUST (Details) - USD ($)
$ in Millions

Sep. 30, 2016

Dec. 31, 2015

Rabbi trust

$ 439

$ 464

^[1]

[1]	Derived from audited financial statements.

OTHER FINANCIAL DATA - EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Earnings attributable to common shares	$ 622	$ 248	$ 991	$ 980
Weighted-average common shares outstanding for basic EPS (in shares)	250,386,000	248,432,000	250,073,000	248,090,000
Dilutive effect of stock options, restricted stock awards and restricted stock units (in shares)	2,019,000	2,592,000	1,903,000	2,575,000
Weighted-average common shares outstanding for diluted EPS (in shares)	252,405,000	251,024,000	251,976,000	250,665,000
Basic earnings per common share (in dollars per share)	$ 2.48	$ 1.00	$ 3.96	$ 3.95
Diluted earnings per common share (in dollars per share)	$ 2.46	$ 0.99	$ 3.93	$ 3.91
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from potential dilutive shares if performance goals fully met	2,273,102	2,001,020	2,406,512	2,047,656
Deferred Compensation Plan [Member] \| RSUs [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Weighted-average common shares outstanding for basic EPS (in shares)	572,000	504,000	565,000	486,000
RSUs [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share	0	0	2,426	0
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share	0	0	0	0
RSAs [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share	0	0	0	0

OTHER FINANCIAL DATA - EARNINGS PER SHARE - SHARE BASED COMPENSATION (Details)	9 Months Ended
	Sep. 30, 2016 shares
Performance-based RSUs [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares included in potentially dilutive shares calculation	0.00%
Performance-based RSUs [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares included in potentially dilutive shares calculation	200.00%
Performance-based RSUs [Member] \| Awarded During or After Two Thousand and Fifteen [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Performance-based RSUs [Member] \| Awarded Prior to Two Thousand and Fifteen [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years
TSR RSUs [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares receivable under award	0
TSR RSUs [Member] \| Awarded Prior to 2014 [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares receivable under award	1.5
TSR RSUs [Member] \| Awarded During Or After 2014 [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares receivable under award	2
EPS RSUs [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares receivable under award	0
EPS RSUs [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares receivable under award	2.0
RSAs and Service-based RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares receivable under award	1
Percentage of shares included in potentially dilutive shares calculation	100.00%

OTHER FINANCIAL DATA - SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense, net of tax	$ 7	$ 7	$ 20	$ 22
TSR RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards, granted (in shares)			373,070
EPS RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards, granted (in shares)			94,760
Service-based RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards, granted (in shares)			95,876
RSUs [Member] \| IENova Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards, granted (in shares)			378,367

OTHER FINANCIAL DATA - CAPITALIZED FINANCING COSTS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of Capitalization [Line Items]
AFUDC related to debt	$ 7	$ 6	$ 22	$ 19
AFUDC related to equity	29	26	86	84
Other capitalized interest	26	18	64	52
Total capitalized financing costs	62	50	172	155
San Diego Gas and Electric Company [Member]
Schedule of Capitalization [Line Items]
AFUDC related to debt	4	3	12	10
AFUDC related to equity	11	9	35	27
Total capitalized financing costs	15	12	47	37
Southern California Gas Company [Member]
Schedule of Capitalization [Line Items]
AFUDC related to debt	3	3	10	9
AFUDC related to equity	10	10	30	29
Other capitalized interest	1	1	1	1
Total capitalized financing costs	$ 14	$ 14	$ 41	$ 39

OTHER FINANCIAL DATA - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Sep. 30, 2016

Sep. 30, 2015

Sep. 30, 2016

Sep. 30, 2015

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), before reclassifications

$ (852)

$ (596)

$ (806)

^[1]

$ (497)

(20)

(171)

(71)

(273)

Amounts reclassified from accumulated other comprehensive income

(13)

(165)

(59)

(264)

Foreign currency translation adjustments [Member]

(865)

(761)

(865)

(761)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), before reclassifications

(503)

(427)

(582)

(322)

(28)

(92)

(197)

Amounts reclassified from accumulated other comprehensive income

(28)

(92)

(197)

Financial instruments [Member]

(531)

(519)

(531)

(519)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), before reclassifications

(264)

(86)

(137)

(90)

(79)

(122)

(76)

Amounts reclassified from accumulated other comprehensive income

(78)

(114)

(74)

Pension and other postretirement benefits [Member]

(251)

(164)

(251)

(164)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), before reclassifications

(85)

(83)

(87)

(85)

Amounts reclassified from accumulated other comprehensive income

(83)

(78)

(83)

(78)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Amounts reclassified from accumulated other comprehensive income

(19)

(18)

(19)

^[1]

(18)

Southern California Gas Company [Member] | Financial instruments [Member]

(18)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Amounts reclassified from accumulated other comprehensive income

(14)

Southern California Gas Company [Member] | Pension and other postretirement benefits [Member]

(13)

(14)

(13)

(14)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Amounts reclassified from accumulated other comprehensive income

(5)

(4)

(5)

(4)

$ (5)

$ (4)

$ (5)

$ (4)

[1]	Derived from audited financial statements.

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

OTHER FINANCIAL DATA - RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	$ (136)	$ (143)	$ (421)	$ (416)
Equity earnings, before income tax	12	33	4	79
Remeasurement of equity method investment	617	0	617	0
Equity earnings, net of income tax	19	27	69	64
Revenues: Energy-Related Businesses	271	268	613	762
Income before income taxes and equity earnings of certain unconsolidated subsidiaries	982	270	1,325	1,272
Income Tax Expense	(282)	(15)	(284)	(276)
Earnings Attributable to Noncontrolling Interests	(97)	(34)	(118)	(79)
Earnings (losses)	622	248	991	980
Total reclassifications for the period, net of tax	7	6	12	9
Gains (Losses) on Cash Flow hedges Attributable to Parent [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period, net of tax	5	1	8	2
Gain (Loss) on Pension and Other Postretirement Benefits [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from AOCI	4	7	8	11
Pension and Other Postretirement Benefits [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax expense	(2)	(2)	(4)	(4)
Total reclassifications for the period, net of tax	2	5	4	7
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Gains (Losses) on Cash Flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes and equity earnings of certain unconsolidated subsidiaries	12	5	23	13
Income Tax Expense	(3)	(1)	(4)	(1)
Net of income tax	9	4	19	12
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Gains (Losses) on Cash Flow hedges [Member] \| Interest rate and foreign exchange instruments [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	4	5	11	14
Remeasurement of equity method investment	7	0	7	0
Equity earnings, net of income tax	(2)	0	4	0
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Gains (Losses) on Cash Flow hedges [Member] \| Interest rate instruments [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Equity earnings, before income tax	3	3	8	9
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Gains (Losses) on 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	0	(3)	(7)	(10)
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Gains (Losses) on Cash Flow hedges Attributable to Noncontrolling Interests [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Earnings Attributable to Noncontrolling Interests	(4)	(3)	(11)	(10)
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Gains (Losses) on Cash Flow hedges Attributable to Parent [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Earnings (losses)	5	1	8	2
San Diego Gas and Electric Company [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	(49)	(51)	(145)	(155)
Income before income taxes and equity earnings of certain unconsolidated subsidiaries	285	257	622	680
Income Tax Expense	(91)	(75)	(204)	(217)
Earnings Attributable to Noncontrolling Interests	(11)	(12)	1	(20)
Total reclassifications for the period, net of tax	0	0	0	0
San Diego Gas and Electric Company [Member] \| Reclassification out of Accumulated Other Comprehensive Income [Member] \| Gains (Losses) on Cash Flow hedges [Member] \| Interest rate instruments [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	3	3	9	9
San Diego Gas and Electric Company [Member] \| Reclassification out of Accumulated Other Comprehensive Income [Member] \| Gains (Losses) on Cash Flow hedges Attributable to Noncontrolling Interests [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Earnings Attributable to Noncontrolling Interests	(3)	(3)	(9)	(9)
Southern California Gas Company [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	(25)	(23)	(71)	(61)
Income before income taxes and equity earnings of certain unconsolidated subsidiaries	21	(28)	274	368
Income Tax Expense	(21)	20	(75)	(91)
Total reclassifications for the period, net of tax	1	0	1	0
Southern California Gas Company [Member] \| Gains (Losses) on Cash Flow hedges Attributable to Parent [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period, net of tax	1		1
Southern California Gas Company [Member] \| Pension and Other Postretirement Benefits [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period, net of tax	0		0
Southern California Gas Company [Member] \| Reclassification out of Accumulated Other Comprehensive Income [Member] \| Gains (Losses) on Cash Flow hedges [Member] \| Interest rate instruments [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	$ 1	$ 0	$ 1	$ 0

OTHER FINANCIAL DATA - SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST (Details) - USD ($)

3 Months Ended

9 Months Ended

Sep. 30, 2016

Sep. 30, 2015

Sep. 30, 2016

Sep. 30, 2015

Dec. 31, 2015

$ 12,579,000,000

^[1]

$ 12,100,000,000

Cumulative-effect adjustment from change in accounting principle

^[1]

11,809,000,000

$ 107,000,000

Preferred dividends of subsidiary

1,050,000,000

773,000,000

$ 0

(1,000,000)

Share-based compensation expense

38,000,000

39,000,000

(565,000,000)

(520,000,000)

80,000,000

82,000,000

(55,000,000)

(74,000,000)

56,000,000

2,000,000

1,000,000

(44,000,000)

(60,000,000)

13,191,000,000

12,396,000,000

13,191,000,000

12,396,000,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

12,346,000,000

Parent [Member]

Cumulative-effect adjustment from change in accounting principle

11,809,000,000

11,326,000,000

107,000,000

Preferred dividends of subsidiary

933,000,000

717,000,000

(1,000,000)

Share-based compensation expense

38,000,000

39,000,000

(565,000,000)

(520,000,000)

80,000,000

82,000,000

(55,000,000)

(74,000,000)

56,000,000

Noncontrolling Interest [Member]

12,346,000,000

11,625,000,000

12,346,000,000

11,625,000,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Cumulative-effect adjustment from change in accounting principle

770,000,000

774,000,000

Preferred dividends of subsidiary

117,000,000

56,000,000

Share-based compensation expense

2,000,000

1,000,000

(44,000,000)

(60,000,000)

845,000,000

771,000,000

845,000,000

771,000,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

5,276,000,000

^[1]

4,992,000,000

Cumulative-effect adjustment from change in accounting principle

^[1]

5,223,000,000

23,000,000

422,000,000

463,000,000

(175,000,000)

(150,000,000)

1,000,000

(7,000,000)

(16,000,000)

5,540,000,000

5,289,000,000

5,540,000,000

5,289,000,000

San Diego Gas and Electric Company [Member] | Parent [Member]

5,490,000,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Cumulative-effect adjustment from change in accounting principle

5,223,000,000

4,932,000,000

23,000,000

419,000,000

443,000,000

(175,000,000)

(150,000,000)

San Diego Gas and Electric Company [Member] | Noncontrolling Interest [Member]

5,490,000,000

5,225,000,000

5,490,000,000

5,225,000,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Cumulative-effect adjustment from change in accounting principle

53,000,000

60,000,000

3,000,000

20,000,000

1,000,000

(7,000,000)

(16,000,000)

50,000,000

64,000,000

50,000,000

64,000,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Cumulative-effect adjustment from change in accounting principle

3,149,000,000

^[1]

2,781,000,000

$ 15,000,000

200,000,000

277,000,000

Preferred stock dividends declared

(50,000,000)

(1,000,000)

$ 3,363,000,000

$ 3,007,000,000

$ 3,363,000,000

$ 3,007,000,000

[1]	Derived from audited financial statements.

OTHER FINANCIAL DATA - OTHER NONCONTROLLING INTERESTS (Details) - USD ($)
$ in Millions

Oct. 19, 2016

Sep. 30, 2016

Dec. 31, 2015

$ 825

$ 750

^[1]

San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member]

$ 1,508

$ 1,176

^[1]

100.00%

Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member]

$ 50

$ 53

Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member] | Minimum [Member]

$ 22

$ 21

Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member] | Maximum [Member]

23.10%

23.50%

Sempra South American Utilities [Member] | Luz del Sur [Member]

43.40%

16.40%

Sempra South American Utilities [Member] | Tecsur [Member]

$ 171

$ 164

9.80%

Sempra Mexico [Member] | IEnova [Member]

$ 4

18.90%

Sempra Natural Gas [Member] | Bay Gas Storage Company, Ltd. [Member]

$ 537

$ 468

9.10%

Sempra Natural Gas [Member] | Liberty Gas Storage, LLC [Member]

$ 26

$ 25

23.30%

23.20%

Sempra Natural Gas [Member] | Southern Gas Transmission Company [Member]

$ 14

49.00%

Sempra Renewables [Member]

$ 1

Subsequent Event [Member] | Sempra Mexico [Member] | IEnova [Member]

$ 78

33.60%

[1]	Derived from audited financial statements.

OTHER FINANCIAL DATA - DUE TO DUE FROM AFFILIATES (Details) - USD ($)
$ in Millions

9 Months Ended

12 Months Ended

Sep. 30, 2016

Dec. 31, 2015

$ 8

$ 6

^[1]

195

186

^[1]

Joint venture with PEMEX [Member]

$ (9)

(14)

^[1]

Joint venture with PEMEX [Member] | LIBOR [Member]

5.03%

Spread on variable rate

4.50%

ESJ joint venture [Member]

ESJ joint venture [Member] | LIBOR [Member]

6.91%

Spread on variable rate

6.375%

$ 88

^[1]

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

(10)

(55)

^[1]

Income taxes due from Sempra Energy

(34)

$ 109

Loan to unconsolidated affiliate, principal

0.60%

$ 107

San Diego Gas and Electric Company [Member] | Due to/from Other Affiliates [Member]

San Diego Gas and Electric Company [Member] | Due to/from SoCalGas [Member]

San Diego Gas and Electric Company [Member] | Due to/from Other affiliates [Member]

(5)

(13)

(5)

(8)

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

^[1]

Income taxes due from Sempra Energy

$ 16

$ 1

Loan to unconsolidated affiliate, principal

0.57%

0.11%

$ 51

$ 50

Southern California Gas Company [Member] | Due to/from SDG&E [Member]

Sempra South American Utilities [Member] | Eletrans [Member]

$ 83

Sempra South American Utilities [Member] | Due to/from Other affiliates [Member]

4.00%

Sempra Mexico [Member] | PEMEX Three year loan A [Member]

$ 1

Sempra Mexico [Member] | PEMEX Four year loan A [Member]

Sempra Mexico [Member] | PEMEX Four year loan B [Member]

Sempra Mexico [Member] | PEMEX Four year loan C [Member]

Sempra Mexico [Member] | ESJ joint venture [Member]

Sempra Natural Gas [Member] | Cameron LNG [Member]

Jointly Owned Utility Plant Interests [Line Items]

$ 8

$ 3

[1]	Derived from audited financial statements.

OTHER FINANCIAL DATA - AFFILIATES REVENUE AND COST OF SALES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Revenue from related parties	$ 5	$ 6	$ 15	$ 22
Costs of sales to related parties	10	29	60	78
San Diego Gas and Electric Company [Member]
Related Party Transaction [Line Items]
Revenue from related parties	2	3	5	8
Costs of sales to related parties	16	15	46	33
Southern California Gas Company [Member]
Related Party Transaction [Line Items]
Revenue from related parties	$ 21	$ 19	$ 56	$ 55

OTHER FINANCIAL DATA - OTHER INCOME (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Other Income [Line Items]
Allowance for equity funds used during construction	$ 29	$ 26	$ 86	$ 84
Investment gains (losses)	9	(12)	29	(5)
Losses on interest rate and foreign exchange instruments, net	(11)	(4)	(23)	(7)
Foreign currency transaction losses	(2)	(3)	(9)	(6)
Sale of other investments	1	2	3	8
Electrical infrastructure relocation income	1	0	4	4
Regulatory Interest, net	1	1	4	3
Sundry, net	(2)	2	4	7
Total	26	12	98	88
San Diego Gas and Electric Company [Member]
Other Income [Line Items]
Allowance for equity funds used during construction	11	9	35	27
Regulatory Interest, net	0	1	3	3
Sundry, net	0	(2)	0	(4)
Total	11	8	38	26
Southern California Gas Company [Member]
Other Income [Line Items]
Allowance for equity funds used during construction	10	10	30	29
Regulatory Interest, net	1	0	1	0
Sundry, net	(3)	(2)	(7)	(4)
Total	$ 8	$ 8	$ 24	$ 25

OTHER FINANCIAL DATA - INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items]
Income tax expense	$ 282	$ 15	$ 284	$ 276
Effective income tax rate	29.00%	6.00%	21.00%	22.00%
San Diego Gas and Electric Company [Member]
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items]
Income tax expense	$ 91	$ 75	$ 204	$ 217
Effective income tax rate	32.00%	29.00%	33.00%	32.00%
Southern California Gas Company [Member]
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items]
Income tax expense	$ 21	$ (20)	$ 75	$ 91
Effective income tax rate	100.00%	71.00%	27.00%	25.00%

DEBT AND CREDIT FACILITIES - LINES OF CREDIT (Details)	9 Months Ended
DEBT AND CREDIT FACILITIES - LINES OF CREDIT (Details)	Sep. 30, 2016 USD ($) lender line_of_credit	Sep. 29, 2016 USD ($)	Dec. 31, 2015
Sempra Energy Consolidated [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 4,300,000,000.0
Number of primary lines of credit \| line_of_credit	3
Remaining borrowing capacity	$ 2,000,000,000
Weighted average interest rate on total short-term debt outstanding	1.19%		1.09%
Foreign Operations [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 1,100,000,000
Remaining borrowing capacity	429,000,000
Sempra Energy [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 1,000,000,000
Term of debt agreement	5 years
Number of Lenders \| lender	21
Maximum percentage held by lenders participating syndicated lending agreement	7.00%
Maximum ratio of indebtedness to total capitalization	65.00%
Capacity for issuance of letters of credit	$ 400,000,000
Outstanding commercial paper supported by committed lines of credit	0
Sempra Global [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	2,340,000,000.00	$ 2,210,000,000.00
Remaining borrowing capacity	$ 79,000,000
Term of debt agreement	5 years
Number of Lenders \| lender	21
Maximum percentage held by lenders participating syndicated lending agreement	7.00%
Maximum ratio of indebtedness to total capitalization	65.00%
Outstanding commercial paper supported by committed lines of credit	$ 2,260,000,000
California Utilities Combined [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 1,000,000,000
Term of debt agreement	5 years
Number of Lenders \| lender	21
Maximum percentage held by lenders participating syndicated lending agreement	7.00%
Capacity for issuance of letters of credit	$ 250,000,000
SDGE [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	750,000,000
Remaining borrowing capacity	$ 696,000,000
Maximum ratio of indebtedness to total capitalization	65.00%
Outstanding commercial paper supported by committed lines of credit	$ 54,000,000
Weighted average interest rate on total short-term debt outstanding	1.06%		1.01%
Southern California Gas Company [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 750,000,000
Remaining borrowing capacity	$ 750,000,000
Maximum ratio of indebtedness to total capitalization	65.00%
Outstanding commercial paper supported by committed lines of credit	$ 0
Sempra South American Utilities [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	506,000,000
Sempra South American Utilities [Member] \| Chile [Member]
Line of Credit Facility [Line Items]
Remaining borrowing capacity	114,000,000
Committed lines of credit outstanding borrowings	0
Sempra South American Utilities [Member] \| Peru [Member]
Line of Credit Facility [Line Items]
Remaining borrowing capacity	$ 236,000,000
Committed lines of credit, maximum ratio of debt to equity	170.00%
Committed lines of credit outstanding borrowings	$ 140,000,000
Bank guarantee	16,000,000
Sempra Mexico [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	600,000,000
Remaining borrowing capacity	$ 79,000,000
Term of debt agreement	5 years
Committed lines of credit outstanding borrowings	$ 521,000,000

DEBT AND CREDIT FACILITIES - LONG TERM DEBT (Details) - USD ($)	1 Months Ended
	Sep. 30, 2016	Oct. 04, 2016	Sep. 26, 2016	Sep. 12, 2016	Jul. 31, 2016	Jun. 30, 2016	May 31, 2016
South American Utilities [Member] \| Corporate bonds maturing 2025 [Member]
Debt Instrument [Line Items]
Debt amount offered and sold					$ 50,000,000
Stated rate of debt offered and sold					6.50%
Sempra Mexico [Member] \| GdC [Member]
Debt Instrument [Line Items]
Long-term debt assumed			$ 315,000,000
Current portion of long-term debt			$ 49,000,000
Sempra Natural Gas [Member] \| Energy South [Member] \| Disposed of by Sale [Member]
Debt Instrument [Line Items]
Cash proceeds on sale				$ 318,000,000
Cash sold				2,000,000
Debt assumed by buyer				$ 67,000,000
Sempra Natural Gas [Member] \| Energy South [Member] \| Disposed of by Sale [Member] \| Mobile Gas [Member] \| 4.14% first mortgage bonds [Member]
Debt Instrument [Line Items]
Stated rate of debt offered and sold				4.14%
Debt assumed by buyer				$ 20,000,000
Sempra Natural Gas [Member] \| Energy South [Member] \| Disposed of by Sale [Member] \| Mobile Gas [Member] \| 5% first mortgage bonds [Member]
Debt Instrument [Line Items]
Stated rate of debt offered and sold				5.00%
Debt assumed by buyer				$ 42,000,000
Sempra Natural Gas [Member] \| Energy South [Member] \| Disposed of by Sale [Member] \| Willmut Gas [Member] \| 3.1% notes payable [Member]
Debt Instrument [Line Items]
Stated rate of debt offered and sold				3.10%
Debt assumed by buyer				$ 5,000,000
San Diego Gas and Electric Company [Member] \| First mortgage bonds maturing 2026 [Member]
Debt Instrument [Line Items]
Debt amount offered and sold							$ 500,000,000
Stated rate of debt offered and sold							2.50%
San Diego Gas and Electric Company [Member] \| Other long term debt variable rate due 2027 [Member]
Debt Instrument [Line Items]
Stated rate of debt offered and sold							5.00%
Amount of debt redeemed early							$ 105,000,000
Southern California Gas Company [Member] \| First mortgage bonds maturing 2026 [Member]
Debt Instrument [Line Items]
Debt amount offered and sold						$ 500,000,000
Stated rate of debt offered and sold						2.60%
IEnova [Member] \| Sempra Mexico [Member] \| GdC [Member]
Debt Instrument [Line Items]
Ownership percentage acquired			50.00%
Long-term debt assumed	$ 364,000,000
Current portion of long-term debt	$ 49,000,000
IEnova [Member] \| Sempra Mexico [Member] \| GdC [Member] \| LIBOR [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Spread on variable rate	2.00%
IEnova [Member] \| Sempra Mexico [Member] \| GdC [Member] \| LIBOR [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Spread on variable rate	2.75%
IEnova [Member] \| Sempra Mexico [Member] \| GdC [Member] \| Interest Rate Swap [Member]
Debt Instrument [Line Items]
Fixed interest rate on floating-to-fixed interest rate swaps	2.63%
Subsequent Event [Member] \| Sempra Energy [Member] \| Other long term debt fixed rate due 2019 [Member]
Debt Instrument [Line Items]
Debt amount offered and sold		$ 500,000,000
Stated rate of debt offered and sold		1.625%

DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE COMMODITY VOLUMES (Details) MWh in Millions, MMBTU in Millions	Sep. 30, 2016 MWh MMBTU	Dec. 31, 2015 MWh MMBTU
SDG&E [Member]
Derivatives, Fair Value [Line Items]
Natural gas	56	70
Electricity \| MWh	4	1
Congestion revenue rights \| MWh	46	36
SoCalGas [Member]
Derivatives, Fair Value [Line Items]
Natural gas	2	1
Sempra Natural Gas [Member]
Derivatives, Fair Value [Line Items]
Natural gas	35	43

DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE NOTIONALS (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Jan. 31, 2016
Other foreign currency derivatives [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative	$ 914		$ 550
Cash Flow Hedging [Member] \| Interest Rate Contract [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative	$ 753	$ 384
Cash Flow Hedging [Member] \| Interest Rate Contract [Member] \| Minimum [Member]
Derivatives, Fair Value [Line Items]
Maturity date	Dec. 31, 2016	Dec. 31, 2016
Cash Flow Hedging [Member] \| Interest Rate Contract [Member] \| Maximum [Member]
Derivatives, Fair Value [Line Items]
Maturity date	Dec. 31, 2028	Dec. 31, 2028
Fair Value Hedging [Member] \| Interest Rate Contract [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative	$ 0	$ 300
Maturity date		Dec. 31, 2016
Sempra Mexico [Member] \| Cross currency swaps [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative	$ 408	$ 408
Sempra Mexico [Member] \| Cross currency swaps [Member] \| Minimum [Member]
Derivatives, Fair Value [Line Items]
Maturity date	Dec. 31, 2016	Dec. 31, 2016
Sempra Mexico [Member] \| Cross currency swaps [Member] \| Maximum [Member]
Derivatives, Fair Value [Line Items]
Maturity date	Dec. 31, 2023	Dec. 31, 2023
Sempra Mexico [Member] \| Other foreign currency derivatives [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative	$ 1,481	$ 0
Sempra Mexico [Member] \| Other foreign currency derivatives [Member] \| Minimum [Member]
Derivatives, Fair Value [Line Items]
Maturity date	Dec. 31, 2016
Sempra Mexico [Member] \| Other foreign currency derivatives [Member] \| Maximum [Member]
Derivatives, Fair Value [Line Items]
Maturity date	Dec. 31, 2018
San Diego Gas and Electric Company [Member] \| Cash Flow Hedging [Member] \| Interest Rate Contract [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative	$ 307	$ 315
San Diego Gas and Electric Company [Member] \| Cash Flow Hedging [Member] \| Interest Rate Contract [Member] \| Minimum [Member]
Derivatives, Fair Value [Line Items]
Maturity date	Dec. 31, 2016	Dec. 31, 2016
San Diego Gas and Electric Company [Member] \| Cash Flow Hedging [Member] \| Interest Rate Contract [Member] \| Maximum [Member]
Derivatives, Fair Value [Line Items]
Maturity date	Dec. 31, 2019	Dec. 31, 2019

DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE IMPACT ON THE INCOME (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings			$ (39,000,000)	$ 20,000,000
Fair Value Hedging [Member] \| Interest Expense [Member] \| Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Hedge ineffectiveness	$ 0	$ 0	0	0
Designated as Hedging Instrument [Member] \| Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	0	1,000,000	1,000,000	3,000,000
Designated as Hedging Instrument [Member] \| Fair Value Hedging [Member] \| Interest Expense [Member] \| Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	0	1,000,000	3,000,000	5,000,000
Designated as Hedging Instrument [Member] \| Fair Value Hedging [Member] \| Other Income, Net [Member] \| Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	0	0	(2,000,000)	(2,000,000)
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) recognized in OCI	16,000,000	(138,000,000)	(238,000,000)	(139,000,000)
Pretax (loss) gain reclassified from AOCI into earnings	(12,000,000)	(5,000,000)	(23,000,000)	(13,000,000)
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Interest Expense [Member] \| Interest rate and foreign exchange instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) recognized in OCI	(16,000,000)	(10,000,000)	(26,000,000)	(22,000,000)
Pretax (loss) gain reclassified from AOCI into earnings	(4,000,000)	(5,000,000)	(11,000,000)	(14,000,000)
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Equity Earnings, Before Income Tax [Member] \| Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) recognized in OCI	17,000,000	(134,000,000)	(190,000,000)	(123,000,000)
Pretax (loss) gain reclassified from AOCI into earnings	(3,000,000)	(3,000,000)	(8,000,000)	(9,000,000)
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Remeasurement of Equity Method Investment [Member] \| Interest rate and foreign exchange instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) recognized in OCI	0	0	0	0
Pretax (loss) gain reclassified from AOCI into earnings	(7,000,000)	0	(7,000,000)	0
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Equity Earnings, Net of Income Tax [Member] \| Interest rate and foreign exchange instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) recognized in OCI	13,000,000	0	(20,000,000)	0
Pretax (loss) gain reclassified from AOCI into earnings	2,000,000	0	(4,000,000)	0
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Revenues: Energy- Related Businesses [Member] \| Commodity Contract Not Subject To Rate Recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) recognized in OCI	2,000,000	6,000,000	(2,000,000)	6,000,000
Pretax (loss) gain reclassified from AOCI into earnings	0	3,000,000	7,000,000	10,000,000
Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	(125,000,000)	(15,000,000)	(137,000,000)	(78,000,000)
Not Designated as Hedging Instrument [Member] \| Other Income, Net [Member] \| Other foreign currency derivatives [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	(11,000,000)	(4,000,000)	(23,000,000)	(7,000,000)
Not Designated as Hedging Instrument [Member] \| Equity Earnings, Net of Income Tax [Member] \| Other foreign currency derivatives [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	1,000,000	(3,000,000)	3,000,000	(4,000,000)
Not Designated as Hedging Instrument [Member] \| Revenues: Energy- Related Businesses [Member] \| Commodity Contract Not Subject To Rate Recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	3,000,000	21,000,000	(26,000,000)	33,000,000
Not Designated as Hedging Instrument [Member] \| Operation and Maintenance [Member] \| Commodity Contract Not Subject To Rate Recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	0	(2,000,000)	1,000,000	(1,000,000)
Not Designated as Hedging Instrument [Member] \| Cost of Electric Fuel and Purchased Power [Member] \| Commodity Contracts Subject To Rate Recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	(118,000,000)	(27,000,000)	(90,000,000)	(100,000,000)
Not Designated as Hedging Instrument [Member] \| Cost of Natural Gas [Member] \| Commodity Contracts Subject To Rate Recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	0	0	(2,000,000)	1,000,000
San Diego Gas and Electric Company [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings			2,000,000	3,000,000
San Diego Gas and Electric Company [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Interest Expense [Member] \| Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) recognized in OCI	2,000,000	(4,000,000)	(5,000,000)	(9,000,000)
Pretax (loss) gain reclassified from AOCI into earnings	(3,000,000)	(3,000,000)	(9,000,000)	(9,000,000)
San Diego Gas and Electric Company [Member] \| Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	(118,000,000)	(28,000,000)	(90,000,000)	(101,000,000)
San Diego Gas and Electric Company [Member] \| Not Designated as Hedging Instrument [Member] \| Operation and Maintenance [Member] \| Commodity Contracts Subject To Rate Recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	0	(1,000,000)	0	(1,000,000)
San Diego Gas and Electric Company [Member] \| Not Designated as Hedging Instrument [Member] \| Cost of Electric Fuel and Purchased Power [Member] \| Commodity Contracts Subject To Rate Recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	(118,000,000)	(27,000,000)	(90,000,000)	(100,000,000)
Southern California Gas Company [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Interest Expense [Member] \| Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) recognized in OCI	0	0	0	0
Pretax (loss) gain reclassified from AOCI into earnings	(1,000,000)	0	(1,000,000)	0
Southern California Gas Company [Member] \| Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	0	(1,000,000)	(2,000,000)	1,000,000
Southern California Gas Company [Member] \| Not Designated as Hedging Instrument [Member] \| Operation and Maintenance [Member] \| Commodity Contract Not Subject To Rate Recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	0	(1,000,000)	0	0
Southern California Gas Company [Member] \| Not Designated as Hedging Instrument [Member] \| Cost of Natural Gas [Member] \| Commodity Contracts Subject To Rate Recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivatives recognized in earnings	$ 0	$ 0	$ (2,000,000)	$ 1,000,000

DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Losses on cash flow hedges to be reclassified from AOCI within 12 months	$ 21
Maximum remaining term of cash flow hedges	12 years
San Diego Gas and Electric Company [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Maximum remaining term of cash flow hedges	3 years
Southern California Gas Company [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Losses on cash flow hedges to be reclassified from AOCI within 12 months	$ 0
Equity Method Investee [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Maximum remaining term of cash flow hedges	19 years
Noncontrolling Interest [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Losses on cash flow hedges to be reclassified from AOCI within 12 months	$ 12

DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE INSTRUMENTS WITH CONTINGENT FEATURES (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Net liability position for derivatives with credit limits	$ 6	$ 6
Additional collateral that wil be required if credit rating falls below investment grade	8
San Diego Gas and Electric Company [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net liability position for derivatives with credit limits	3	$ 5
Additional collateral that wil be required if credit rating falls below investment grade	$ 5

FAIR VALUE MEASUREMENTS - RECURRING FAIR VALUE MEASURES (Details) - Recurring [Member] - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	$ 607,000,000	$ 619,000,000
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	100,000,000	91,000,000
Nuclear decommissioning trusts - Municipal bonds	161,000,000	156,000,000
Nuclear decommissioning trusts - Other securities	188,000,000	182,000,000
Nuclear decommissioning trusts - Total debt securities	449,000,000	429,000,000
Nuclear decommissioning trusts - Netting	0	0
Total nuclear decommissioning trusts	1,056,000,000	1,048,000,000
Derivative asset netting	32,000,000	24,000,000
Total	1,202,000,000	1,188,000,000
Derivative liability netting	(48,000,000)	(58,000,000)
Total	459,000,000	242,000,000
Interest rate and foreign exchange instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	5,000,000	5,000,000
Derivative asset netting	0	0
Derivative liabilities	269,000,000	171,000,000
Derivative liability netting	0	0
Commodity contracts not subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	31,000,000	34,000,000
Derivative asset netting	13,000,000	(4,000,000)
Derivative liabilities	1,000,000	4,000,000
Derivative liability netting	(19,000,000)	(4,000,000)
Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	110,000,000	101,000,000
Derivative asset netting	19,000,000	28,000,000
Derivative liabilities	189,000,000	67,000,000
Derivative liability netting	(29,000,000)	(54,000,000)
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	607,000,000	619,000,000
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	48,000,000	47,000,000
Nuclear decommissioning trusts - Municipal bonds	0	0
Nuclear decommissioning trusts - Other securities	0	0
Nuclear decommissioning trusts - Total debt securities	48,000,000	47,000,000
Total nuclear decommissioning trusts	655,000,000	666,000,000
Total	655,000,000	688,000,000
Total	20,000,000	5,000,000
Level 1 [Member] \| Interest rate and foreign exchange instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Level 1 [Member] \| Commodity contracts not subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	22,000,000
Derivative liabilities	19,000,000	5,000,000
Level 1 [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	1,000,000	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	0	0
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	52,000,000	44,000,000
Nuclear decommissioning trusts - Municipal bonds	161,000,000	156,000,000
Nuclear decommissioning trusts - Other securities	188,000,000	182,000,000
Nuclear decommissioning trusts - Total debt securities	401,000,000	382,000,000
Total nuclear decommissioning trusts	401,000,000	382,000,000
Total	425,000,000	404,000,000
Total	310,000,000	242,000,000
Level 2 [Member] \| Interest rate and foreign exchange instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	5,000,000	5,000,000
Derivative liabilities	269,000,000	171,000,000
Level 2 [Member] \| Commodity contracts not subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	18,000,000	16,000,000
Derivative liabilities	1,000,000	3,000,000
Level 2 [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	1,000,000	1,000,000
Derivative liabilities	40,000,000	68,000,000
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	0	0
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	0	0
Nuclear decommissioning trusts - Municipal bonds	0	0
Nuclear decommissioning trusts - Other securities	0	0
Nuclear decommissioning trusts - Total debt securities	0	0
Total nuclear decommissioning trusts	0	0
Total	90,000,000	72,000,000
Total	177,000,000	53,000,000
Level 3 [Member] \| Interest rate and foreign exchange instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Level 3 [Member] \| Commodity contracts not subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Level 3 [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	90,000,000	72,000,000
Derivative liabilities	177,000,000	53,000,000
San Diego Gas and Electric Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	607,000,000	619,000,000
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	100,000,000	91,000,000
Nuclear decommissioning trusts - Municipal bonds	161,000,000	156,000,000
Nuclear decommissioning trusts - Other securities	188,000,000	182,000,000
Nuclear decommissioning trusts - Total debt securities	449,000,000	429,000,000
Nuclear decommissioning trusts - Netting	0	0
Total nuclear decommissioning trusts	1,056,000,000	1,048,000,000
Derivative asset netting	18,000,000	28,000,000
Total	1,164,000,000	1,148,000,000
Derivative liability netting	(29,000,000)	(55,000,000)
Total	218,000,000	103,000,000
San Diego Gas and Electric Company [Member] \| Commodity contracts not subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	1,000,000	1,000,000
Derivative asset netting	1,000,000	1,000,000
Derivative liabilities		0
Derivative liability netting		(1,000,000)
San Diego Gas and Electric Company [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	107,000,000	99,000,000
Derivative asset netting	17,000,000	27,000,000
Derivative liabilities	187,000,000	66,000,000
Derivative liability netting	(29,000,000)	(54,000,000)
San Diego Gas and Electric Company [Member] \| Interest rate instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	31,000,000	37,000,000
Derivative liability netting	0	0
San Diego Gas and Electric Company [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	607,000,000	619,000,000
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	48,000,000	47,000,000
Nuclear decommissioning trusts - Municipal bonds	0	0
Nuclear decommissioning trusts - Other securities	0	0
Nuclear decommissioning trusts - Total debt securities	48,000,000	47,000,000
Total nuclear decommissioning trusts	655,000,000	666,000,000
Total	655,000,000	666,000,000
Total	0	1,000,000
San Diego Gas and Electric Company [Member] \| Level 1 [Member] \| Commodity contracts not subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities		1,000,000
San Diego Gas and Electric Company [Member] \| Level 1 [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
San Diego Gas and Electric Company [Member] \| Level 1 [Member] \| Interest rate instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
San Diego Gas and Electric Company [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	0	0
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	52,000,000	44,000,000
Nuclear decommissioning trusts - Municipal bonds	161,000,000	156,000,000
Nuclear decommissioning trusts - Other securities	188,000,000	182,000,000
Nuclear decommissioning trusts - Total debt securities	401,000,000	382,000,000
Total nuclear decommissioning trusts	401,000,000	382,000,000
Total	401,000,000	382,000,000
Total	70,000,000	104,000,000
San Diego Gas and Electric Company [Member] \| Level 2 [Member] \| Commodity contracts not subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities		0
San Diego Gas and Electric Company [Member] \| Level 2 [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	39,000,000	67,000,000
San Diego Gas and Electric Company [Member] \| Level 2 [Member] \| Interest rate instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	31,000,000	37,000,000
San Diego Gas and Electric Company [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	0	0
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	0	0
Nuclear decommissioning trusts - Municipal bonds	0	0
Nuclear decommissioning trusts - Other securities	0	0
Nuclear decommissioning trusts - Total debt securities	0	0
Total nuclear decommissioning trusts	0	0
Total	90,000,000	72,000,000
Total	177,000,000	53,000,000
San Diego Gas and Electric Company [Member] \| Level 3 [Member] \| Commodity contracts not subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities		0
San Diego Gas and Electric Company [Member] \| Level 3 [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	90,000,000	72,000,000
Derivative liabilities	177,000,000	53,000,000
San Diego Gas and Electric Company [Member] \| Level 3 [Member] \| Interest rate instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Southern California Gas Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset netting	3,000,000	1,000,000
Total	4,000,000	2,000,000
Derivative liability netting	0	(1,000,000)
Total	2,000,000	1,000,000
Southern California Gas Company [Member] \| Commodity contracts not subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	1,000,000
Derivative asset netting	1,000,000
Derivative liabilities		0
Derivative liability netting		(1,000,000)
Southern California Gas Company [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	3,000,000	2,000,000
Derivative asset netting	2,000,000	1,000,000
Derivative liabilities	2,000,000	1,000,000
Derivative liability netting	0	0
Southern California Gas Company [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Total	1,000,000	1,000,000
Southern California Gas Company [Member] \| Level 1 [Member] \| Commodity contracts not subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0
Derivative liabilities		1,000,000
Southern California Gas Company [Member] \| Level 1 [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	1,000,000	0
Southern California Gas Company [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	1,000,000	1,000,000
Total	1,000,000	1,000,000
Southern California Gas Company [Member] \| Level 2 [Member] \| Commodity contracts not subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0
Derivative liabilities		0
Southern California Gas Company [Member] \| Level 2 [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	1,000,000	1,000,000
Derivative liabilities	1,000,000	1,000,000
Southern California Gas Company [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Total	0	0
Southern California Gas Company [Member] \| Level 3 [Member] \| Commodity contracts not subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0
Derivative liabilities		0
Southern California Gas Company [Member] \| Level 3 [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	$ 0	$ 0

FAIR VALUE MEASUREMENTS - RECON OF LEVEL 3 ASSETS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning of period	$ 24,000,000	$ 42,000,000	$ 19,000,000	$ 107,000,000
Realized and unrealized losses	(145,000,000)	(49,000,000)	(138,000,000)	(103,000,000)
Allocated transmission instruments			0	1,000,000
Settlements	(34,000,000)	(43,000,000)	(32,000,000)	(31,000,000)
End of period	(87,000,000)	36,000,000	(87,000,000)	36,000,000
Change in unrealized gains relating to instruments still held at the end of the period	(114,000,000)	$ (8,000,000)	(111,000,000)	$ (54,000,000)
Minimum [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Congestion Revenue Rights						$ (16)
Market Electricity Forward Price Inputs	19.20		19.20
Maximum [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Congestion Revenue Rights						$ 8
Market Electricity Forward Price Inputs	$ 58.50		$ 58.50
Forecast [Member] \| Minimum [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Congestion Revenue Rights					$ (24)
Forecast [Member] \| Maximum [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Congestion Revenue Rights					$ 10

FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Carrying amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Noncurrent due from unconsolidated affiliates	$ 180	$ 175
Total long-term debt	14,149	13,761
Preferred stock	20	20
Accumulated interest outstanding	15	11
Unamortized discount (net of premium) and debt issuance costs	108	107
Build-to-suit and capital lease obligations	385	387
Carrying amount [Member] \| Otay Mesa VIE [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, gross	307	315
Fair value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Noncurrent due from unconsolidated affiliates	172	166
Total long-term debt	15,867	14,633
Preferred stock	26	23
Fair value [Member] \| Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Noncurrent due from unconsolidated affiliates	0	0
Total long-term debt	0	0
Preferred stock	0	0
Fair value [Member] \| Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Noncurrent due from unconsolidated affiliates	91	97
Total long-term debt	15,335	13,985
Preferred stock	26	23
Fair value [Member] \| Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Noncurrent due from unconsolidated affiliates	81	69
Total long-term debt	532	648
Preferred stock	0	0
San Diego Gas and Electric Company [Member] \| Carrying amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	4,656	4,304
Unamortized discount (net of premium) and debt issuance costs	46	43
Capital lease obligations	241	244
San Diego Gas and Electric Company [Member] \| Fair value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	5,331	4,670
San Diego Gas and Electric Company [Member] \| Fair value [Member] \| Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	0	0
San Diego Gas and Electric Company [Member] \| Fair value [Member] \| Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	5,024	4,355
San Diego Gas and Electric Company [Member] \| Fair value [Member] \| Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	307	315
Southern California Gas Company [Member] \| Carrying amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	3,009	2,513
Preferred stock	22	22
Unamortized discount (net of premium) and debt issuance costs	27	24
Capital lease obligations	1	1
Southern California Gas Company [Member] \| Fair value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	3,323	2,621
Preferred stock	28	25
Southern California Gas Company [Member] \| Fair value [Member] \| Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	0	0
Preferred stock	0	0
Southern California Gas Company [Member] \| Fair value [Member] \| Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	3,323	2,621
Preferred stock	28	25
Southern California Gas Company [Member] \| Fair value [Member] \| Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	0	0
Preferred stock	$ 0	$ 0

FAIR VALUE MEASUREMENTS - NONRECURRING INPUTS (Details) - USD ($) $ in Millions		1 Months Ended		3 Months Ended		9 Months Ended
	Sep. 26, 2016	May 31, 2016	Mar. 31, 2016	Sep. 30, 2016	Mar. 31, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 29, 2016	Sep. 27, 2016	Sep. 25, 2016	Mar. 29, 2016
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Pretax gain for the excess of acquisition date fair value over carrying value						$ 617	$ 0
Impairment of equity method investment						131
Impairment of equity method investment after-tax						111
TdM [Member] \| Carrying amount [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value of equity method investment				$ 146		146
Market Approach Valuation Technique [Member] \| Level 2 [Member] \| TdM [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value of equity method investment								$ 145
Fair Value Inputs, Percentage of Fair Value Measurement								100.00%
Fair Value Inputs, Range of Inputs								100.00%
Market Approach Valuation Technique [Member] \| Level 2 [Member] \| GdC [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value of equity method investment	$ 1,144
Fair Value Inputs, Percentage of Fair Value Measurement	100.00%
Fair Value Inputs, Range of Inputs	100.00%
Market Approach Valuation Technique [Member] \| Level 2 [Member] \| Rockies Express [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value of equity method investment											$ 440
Fair Value Inputs, Percentage of Fair Value Measurement											100.00%
Fair Value Inputs, Range of Inputs											100.00%
Sempra Mexico [Member] \| TdM [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impairment of equity method investment				131
Impairment of equity method investment after-tax				$ 111
Sempra Mexico [Member] \| GdC [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Ownership percentage acquired	50.00%
Ownership percentage	100.00%								100.00%	50.00%
Pretax gain for the excess of acquisition date fair value over carrying value	$ 617
After-tax gain for the excess of acquisition date fair value over carrying value	432
Fair value of equity method investment	1,144
Carrying value of equity method investment	520
Losses reclassified from accumulated other comprehensive loss	7
Total fair value of business combination	$ 2,288
Sempra Natural Gas [Member] \| Rockies Express [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Ownership percentage		25.00%	25.00%		25.00%						25.00%
Fair value of equity method investment			$ 440		$ 440
Carrying value of equity method investment			484		484
Impairment of equity method investment					44	44
Impairment of equity method investment after-tax					$ 27	$ 27
Proceeds from sale of equity method investment		$ 443	$ 440

SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) (Details) - USD ($)
$ in Millions

1 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

21 Months Ended

Apr. 30, 2016

Oct. 31, 2015

Mar. 31, 2015

Sep. 30, 2016

Dec. 31, 2015

Sep. 30, 2016

$ 3,424

$ 3,273

^[1]

$ 3,424

Insurance recoveries

$ 400

Environmental exit costs, anticipated cost

1,068

1,063

^[1]

1,068

$ 4,411

Authorized recovery amount, nuclear decommissioning trust funding

218

$ 218

Amount pending IRS clarification

$ 37

Ratepayers [Member]

Jointly Owned Utility Plant Interests [Line Items]

Insurance recoveries

Jointly Owned Utility Plant Interests [Line Items]

Jointly owned utility plant, proportionate ownership share

20.00%

Loss from plant closure, after tax

125

$ 125

Adjustment to loss from plant closure, after tax

$ 13

Regulatory asset, current

$ 124

107

^[1]

124

1,036

977

^[1]

1,036

Insurance recoveries

$ 80

Environmental exit costs, anticipated cost

1,068

1,063

^[1]

1,068

$ 899

Authorized recovery amount, nuclear decommissioning trust funding

218

San Diego Gas and Electric Company [Member] | Asset Retirement Obligation Costs [Member]

Jointly Owned Utility Plant Interests [Line Items]

Regulatory asset

195

Regulatory asset, current

Jointly Owned Utility Plant Interests [Line Items]

150

Sempra Energy [Member]

Loss from plant closure, after tax

$ 125

125

Adjustment to loss from plant closure, after tax

$ 13

Sempra Energy [Member] | Asset Retirement Obligation Costs [Member]

Jointly Owned Utility Plant Interests [Line Items]

Regulatory asset

195

Regulatory asset, current

$ 150

[1]	Derived from audited financial statements.

SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) - NUCLEAR DECOMMISSIONING TRUSTS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 628		$ 628		$ 660
Gross unrealized gains	447		447		423
Gross unrealized losses	(7)		(7)		(20)
Estimated fair value	1,068		1,068		1,063
Proceeds from sales	282	$ 210	486	$ 431
Gross realized gains	24	18	32	24
Gross realized losses	(3)	$ (6)	(14)	$ (13)
Total debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	428		428		431
Gross unrealized gains	25		25		11
Gross unrealized losses	(4)		(4)		(13)
Estimated fair value	449		449		429
U.S. government corporations and agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	95		95		89
Gross unrealized gains	5		5		2
Gross unrealized losses	0		0		0
Estimated fair value	100		100		91
Municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	150		150		148
Gross unrealized gains	11		11		8
Gross unrealized losses	0		0		0
Estimated fair value	161		161		156
Other securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	183		183		194
Gross unrealized gains	9		9		1
Gross unrealized losses	(4)		(4)		(13)
Estimated fair value	188		188		182
Equity securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	188		188		214
Gross unrealized gains	422		422		412
Gross unrealized losses	(3)		(3)		(7)
Estimated fair value	607		607		619
Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	12		12		15
Gross unrealized gains	0		0		0
Gross unrealized losses	0		0		0
Estimated fair value	$ 12		$ 12		$ 15

CALIFORNIA UTILITIES' REGULATORY MATTERS - GENERAL RATE CASE (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended
	Oct. 31, 2016	Jun. 30, 2016	Sep. 30, 2016
San Diego Gas and Electric Company [Member]
Public Utilities, General Disclosures [Line Items]
Retroactive revenue requirement increase for the first quarter of 2016, After-tax		$ 9
Refund of 2015 memorandum account, Pretax		37
Refund of 2015 memorandum account, After-tax		22
Adjustment To Revenue, True Up Of 2012-2014 Tax Estimates		9
Increase (decrease) in final tax deduction refund			$ (5)
San Diego Gas and Electric Company [Member] \| Year 2015 [Member] \| Subsequent Event [Member]
Public Utilities, General Disclosures [Line Items]
Requested rate decrease from proposed settlement	$ 32
San Diego Gas and Electric Company [Member] \| Year 2016 [Member]
Public Utilities, General Disclosures [Line Items]
Revenue requirement			1,791
Requested rate decrease from proposed settlement			20
Revenue revised requirement			1,811
Regulatory asset			25
Regulatory asset, Noncurrent			5
Reduction in rate base			55
Reduction in revenue requirements			$ 7
Regulatory Liability		15
San Diego Gas and Electric Company [Member] \| Years 2017 and 2018 [Member]
Public Utilities, General Disclosures [Line Items]
Annual escalation (percentage)			3.50%
Deductible			$ 5
Southern California Gas Company [Member]
Public Utilities, General Disclosures [Line Items]
Retroactive revenue requirement increase for the first quarter of 2016, After-tax		12
Refund of 2015 memorandum account, Pretax		72
Refund of 2015 memorandum account, After-tax		43
Adjustment To Revenue, True Up Of 2012-2014 Tax Estimates		6
Increase (decrease) in final tax deduction refund			(19)
Southern California Gas Company [Member] \| Year 2015 [Member] \| Subsequent Event [Member]
Public Utilities, General Disclosures [Line Items]
Requested rate decrease from proposed settlement	$ 53
Southern California Gas Company [Member] \| Year 2016 [Member]
Public Utilities, General Disclosures [Line Items]
Revenue requirement			2,204
Requested rate decrease from proposed settlement			15
Revenue revised requirement			2,219
Regulatory asset			58
Regulatory asset, Noncurrent			12
Reduction in rate base			38
Reduction in revenue requirements			$ 5
Regulatory Liability		$ 11
Southern California Gas Company [Member] \| Years 2017 and 2018 [Member]
Public Utilities, General Disclosures [Line Items]
Annual escalation (percentage)			3.50%
Deductible			$ 5

CALIFORNIA UTILITIES' REGULATORY MATTERS - SCHEDULE OF GENERAL RATE CASE DECISION IMPACT ON EARNINGS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2016
Southern California Gas Company [Member]
Public Utilities, General Disclosures [Line Items]
Retroactive revenue requirement increase for the first quarter of 2016. Pretax		$ 20
Retroactive revenue requirement increase for the first quarter of 2016, After-tax		12
Adjustments to revenue related to tax repairs deductions:
2015 memorandum account, Pretax		(72)
True-up of 2012-2014 estimates to actuals, Pretax		(11)
Total, Pretax	$ 4	(83)	$ 19
2015 memorandum account, After-tax		(43)
True-up of 2012-2014 estimates to actuals, After-tax		(6)
Total, After-tax	$ 2	(49)	$ 11
San Diego Gas and Electric Company [Member]
Public Utilities, General Disclosures [Line Items]
Retroactive revenue requirement increase for the first quarter of 2016. Pretax		15
Retroactive revenue requirement increase for the first quarter of 2016, After-tax		9
Adjustments to revenue related to tax repairs deductions:
2015 memorandum account, Pretax		(37)
True-up of 2012-2014 estimates to actuals, Pretax		(15)
Total, Pretax		(52)
2015 memorandum account, After-tax		(22)
True-up of 2012-2014 estimates to actuals, After-tax		(9)
Total, After-tax		$ (31)

CALIFORNIA UTILITIES' REGULATORY MATTERS - NATURAL GAS PIPELINE OPERATIONS SAFETY ASSESSMENTS (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2014	Oct. 31, 2016	Jun. 11, 2014
Southern California Gas Company [Member] \| Pipeline Safety Enhancement Plan [Member]
Public Utilities, General Disclosures [Line Items]
Disallowed costs impact on earnings after tax		$ 5.0
Pipeline safety plan regulatory account	$ 212.0
Recovery requested, PSEP costs	180.5			$ 46.0
Southern California Gas Company [Member] \| Pipeline Safety Enhancement Plan [Member] \| Subsequent Event [Member]
Public Utilities, General Disclosures [Line Items]
Recovery requested, PSEP costs			$ 2.0
Southern California Gas Company [Member] \| Pipeline Safety Enhancement Plan [Member] \| Deferred Project Costs [Member] \| Subsequent Event [Member]
Public Utilities, General Disclosures [Line Items]
Pipeline safety plan regulatory account			33.1
Southern California Gas Company [Member] \| Pipeline Testing/Replacing 1956 to 1961 [Member]
Public Utilities, General Disclosures [Line Items]
Disallowed costs impact on earnings after tax	3.6
San Diego Gas and Electric Company [Member] \| Pipeline Safety Enhancement Plan [Member]
Public Utilities, General Disclosures [Line Items]
Pipeline safety plan regulatory account	18.0
Recovery requested, PSEP costs	14.9			$ 0.1
San Diego Gas and Electric Company [Member] \| Pipeline Safety Enhancement Plan [Member] \| Subsequent Event [Member]
Public Utilities, General Disclosures [Line Items]
Recovery requested, PSEP costs			2.0
San Diego Gas and Electric Company [Member] \| Pipeline Safety Enhancement Plan [Member] \| Deferred Project Costs [Member] \| Subsequent Event [Member]
Public Utilities, General Disclosures [Line Items]
Pipeline safety plan regulatory account			$ 0.1
San Diego Gas and Electric Company [Member] \| Pipeline Testing/Replacing 1956 to 1961 [Member]
Public Utilities, General Disclosures [Line Items]
Disallowed costs impact on earnings after tax	$ 0.5

CALIFORNIA UTILITIES' REGULATORY MATTERS - WILDFIRE COST RECOVERY (Details) - San Diego Gas and Electric Company [Member] $ in Millions	3 Months Ended
	Sep. 30, 2016 USD ($)
Public Utilities, General Disclosures [Line Items]
Requested recovery	$ 379.0
Incurred costs	2,400.0
Insurance reimbursement	1,100.0
Third party settlement recoveries	824.0
FERC jurisdictional rates	$ 80.0
Voluntary shareholder contribution percentage	10.00%
WEMA balance	$ 42.0
FERC-approved wildfire damage expenses	$ 23.1

CALIFORNIA UTILITIES' REGULATORY MATTERS - SOCALGAS MATTERS (Details) - Southern California Gas Company [Member] - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Unfavorable Regulatory Action [Member] \| Pending Litigation [Member] \| Aliso Canyon Turbine Replacement Project [Member]
Public Utilities, General Disclosures [Line Items]
Estimate of possible loss/fines	$ 700
Year 2016 [Member]
Public Utilities, General Disclosures [Line Items]
Requested gas cost incentive mechanism award		$ 5,000

CALIFORNIA UTILITIES' REGULATORY MATTERS - MAJOR PROJECTS UPDATES (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016 USD ($)	Oct. 31, 2016 USD ($)	Aug. 31, 2016 project MW
Southern Gas System Member [Member]
Public Utilities, General Disclosures [Line Items]
Impairment charge after tax	$ 13
Impairment charge pre-tax	22
Pipeline Safety And Reliability Project [Member]
Public Utilities, General Disclosures [Line Items]
Revised estimated project cost	633
San Diego Gas and Electric Company [Member] \| Cleveland National Forest Transmissions Projects [Member]
Public Utilities, General Disclosures [Line Items]
Estimated project cost	680
San Diego Gas and Electric Company [Member] \| Cleveland National Forest Projects Transmission Level Facilities [Member]
Public Utilities, General Disclosures [Line Items]
Estimated project cost	470
San Diego Gas and Electric Company [Member] \| Cleveland National Forest Projects Distribution Level Facilities [Member]
Public Utilities, General Disclosures [Line Items]
Estimated project cost	210
San Diego Gas and Electric Company [Member] \| Energy Storage Projects [Member]
Public Utilities, General Disclosures [Line Items]
Number of Projects \| project			2
Energy Storage Capacity \| MW			37.5
San Diego Gas and Electric Company [Member] \| Maximum [Member] \| Sycamore Penasquitos Transmission Project [Member] \| Subsequent Event [Member]
Public Utilities, General Disclosures [Line Items]
Estimated project cost		$ 260
San Diego Gas and Electric Company [Member] \| Maximum [Member] \| South Orange County Reliability Enhancement [Member]
Public Utilities, General Disclosures [Line Items]
Estimated project cost	$ 381

COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS (Details)

3 Months Ended

9 Months Ended

11 Months Ended

Nov. 01, 2016

plaintiff

lawsuit

Apr. 05, 2016

plaintiff

Mar. 31, 2016

Feb. 16, 2016

USD ($)

Jan. 23, 2016

Sep. 30, 2016

USD ($)

Bcf

Sep. 30, 2016

USD ($)

Bcf

appeal

Sep. 30, 2016

USD ($)

Bcf

Oct. 21, 2016

Sep. 28, 2016

well

MMcf

Jun. 28, 2016

well

Bcf

Jan. 31, 2016

Bcf

Dec. 31, 2015

USD ($)

^[1]

Oct. 23, 2015

Bcf

$ 23,000,000

73,000,000

$ 274,000,000

664,000,000

325,000,000

San Diego Gas and Electric Company [Member] | Wildfire [Member]

21,000,000

$ 21,000,000

21,000,000

Number of appeals pending | appeal

Regulatory assets arising from wildfire litigation costs

356,000,000

$ 356,000,000

356,000,000

Portion of regulatory assets arising from wildfire litigation related to CPUC operations

354,000,000

Potential after-tax charge for nonrecovery of CPUC regulatory assets

210,000,000

San Diego Gas and Electric Company [Member] | Wind Farm [Member]

Estimated tax equity investment

285,000,000

Settlement credit to ratepayers

39,000,000

1,000,000

73,000,000

274,000,000

Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member]

664,000,000

$ 325,000,000

Estimated costs related to temporary relocation (percentage)

$ 763,000,000

70.00%

Estimated costs related to controlling well and stopping leak and emissions (percentage)

20.00%

Increase in reserve

$ 46,000,000

Insurance proceeds

$ 94,000,000

Number of plaintiffs | plaintiff

Total penalties

$ 60,800

Period of required climate reductions

20 years

Period of required regulatory climate reductions

100 years

Target emissions level (in metric tons) | t

9,000,000

Environmental monitoring period

30 days

Estimated withdrawal capacity required to meet customer reliability needs (in Bcf) | Bcf

1,119,000,000

Number of wells required to be kept available for reliability related withdrawals | well

Required minimum hourly withdrawal capacity (in cubic feet) | MMcf

8,600,000

Required minimum daily withdrawal capacity (in cubic feet) | MMcf

207

Amount of natural gas delivered | Bcf

Amount of natural gas in storage | Bcf

Amount of natural gas released | Bcf

4.62

Amount of natural gas to be retained in storage | Bcf

Storage facility capacity | Bcf

Proportion of total gas storage capacity (percentage)

63.00%

Net book value of Aliso Canyon facility

$ 491,000,000

Construction work in progress of new compressor station

217,000,000

Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Subsequent Event [Member]

Number of lawsuits filed | lawsuit

212

Number of plaintiffs | plaintiff

12,000

Loss Contingency, Total Actual Emissions, Floor (in metric tons) | t

90,350

Loss Contingency, Total Actual Emissions, Ceiling (in metric tons) | t

108,950

Mitigation requirements (in metric tons) | t

109,000

Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Minimum [Member]

Liability insurance coverage

1,200,000,000

Environmental mitigation period

5 years

Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Maximum [Member]

Liability insurance coverage

$ 1,400,000,000

1,400,000,000

$ 1,400,000,000

Environmental mitigation period

10 years

Southern California Gas Company [Member] | South Coast Air Quality Management District [Member]

Southern California Gas Company [Member] | Damages from Product Defects [Member]

Civil penalties per day

$ 250,000

Maximum occupational safety and health fines

$ 75,000

Penalty assessments

232,500

Maximum other assessments in settlement of criminal complaint

$ 4,000,000

Southern California Gas Company [Member] | So Cal Gas PCB Litigation [Member]

Number of lawsuits settled

Number of lawsuits filed

[1]	Derived from audited financial statements.

COMMITMENTS AND CONTINGENCIES - OTHER LITIGATION (Details) £ in Millions, $ in Millions	Oct. 21, 2016 t	Sep. 30, 2016 USD ($)	Oct. 01, 2015 GBP (£)	Sep. 01, 2012 GBP (£)
HMRC VAT Claim [Member]
Loss Contingencies [Line Items]
VAT tax claim paid upon appeal \| £			£ 146	£ 86
Investment in RBS Sempra commodities LLP \| $		$ 67
Southern California Gas Company [Member] \| Subsequent Event [Member] \| Aliso Canyon Natural Gas Storage Facility Gas Leak [Member]
Loss Contingencies [Line Items]
Loss Contingency, Total Actual Emissions, Floor	90,350
Loss Contingency, Total Actual Emissions, Ceiling	108,950

COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Sempra Energy [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Increase in asset retirement obligations	$ 342
Southern California Gas Company [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Increase in asset retirement obligations	316
Sempra Natural Gas [Member] \| Natural Gas Contracts [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Increase (decrease) in commitment amount	(224)
Increase (decrease) in commitment amount, 2016	(168)
Increase (decrease) in commitment amount, 2017	2
Increase (decrease) in commitment amount, 2018	(17)
Increase (decrease) in commitment amount, 2019	(20)
Increase (decrease) in commitment amount, 2020	(8)
Increase (decrease) in commitment amount, thereafter	(13)
Charges related to permanent capacity releases, pretax	206
Charges related to permanent capacity releases, after tax	123
Obligation to make future capacity payments, current	44
Obligation to make future capacity payments, noncurrent	106
Sempra Natural Gas [Member] \| Liquefied Natural Gas Contracts [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Increase (decrease) in commitment amount, 2016	(306)
Increase (decrease) in commitment amount, 2017	41
Increase (decrease) in commitment amount, 2018	(18)
Increase (decrease) in commitment amount, 2019	(59)
Increase (decrease) in commitment amount, 2020	(98)
Increase (decrease) in commitment amount, thereafter	$ (542)
Escalation percentage beyond year 2028	1.00%
San Diego Gas and Electric Company [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Increase in asset retirement obligations	$ 26
San Diego Gas and Electric Company [Member] \| Purchased Power Contracts [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Increase (decrease) in commitment amount	526
Increase (decrease) in commitment amount, 2016	19
Increase (decrease) in commitment amount, 2017	56
Increase (decrease) in commitment amount, 2018	57
Increase (decrease) in commitment amount, 2019	57
Increase (decrease) in commitment amount, 2020	57
Increase (decrease) in commitment amount, thereafter	280
Power transmission tolling fee		$ 1,400
Sempra Mexico [Member] \| Construction and Development Projects [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Increase (decrease) in commitment amount, 2016	180
Commitment amount due in remainder of fiscal year	4
Commitment amount due in 2017	15
Commitment amount due in 2018	15
Commitment amount due in 2019	16
Commitment amount due in 2020	16
Commitment amount due thereafter	$ 114

COMMITMENTS AND CONTINGENCIES - NUCLEAR INSURANCE (Details) - San Diego Gas and Electric Company [Member] $ in Thousands	Sep. 30, 2016 USD ($)
Schedule Of Nuclear Insurance [Line Items]
Maximum nuclear liability insurance coverage	$ 375,000
Maximum secondary financial protection	13,200,000
Maximum company contribution to secondary financial protection	50,930
Annual maximum secondary financial protection contribution by company	7,600
Maximum nuclear property insurance coverage	2,750,000
Deductible per loss	2,500
Maximum premium assessment under nuclear property damage insurance	9,700
Maximum nuclear property insurance terrorism coverage	$ 3,240,000

COMMITMENTS AND CONTINGENCIES - NUCLEAR FUEL DISPOSAL (Details) - San Diego Gas and Electric Company [Member] - USD ($) $ in Millions		1 Months Ended
	Apr. 18, 2016	Sep. 30, 2016	May 31, 2016
Total Ownership [Member]
Jointly Owned Utility Plant Interests [Line Items]
Spent nuclear fuel damages awarded	$ 162
Filed claims amount		$ 56
SDG&E Ownership [Member]
Jointly Owned Utility Plant Interests [Line Items]
Spent nuclear fuel damages awarded			$ 32
Decrease In SONGS regulatory asset			23
Decrease In nuclear decommissioning balancing account			8
Decrease In operation and maintenance cost balancing account			$ 1
Filed claims amount		$ 11

SEGMENT INFORMATION (Details)
$ in Millions

3 Months Ended

9 Months Ended

Sep. 30, 2016

USD ($)

Sep. 30, 2015

USD ($)

Sep. 30, 2016

USD ($)

segment

Sep. 30, 2015

USD ($)

Dec. 31, 2015

USD ($)

Segment Reporting Information [Line Items]

Number of reportable segments | segment

Segment Reporting Information, Profit (Loss) [Abstract]

$ 2,535

$ 2,481

$ 7,313

$ 7,530

100.00%

$ 136

$ 143

$ 421

$ 416

Percentage of consolidated depreciation and amortization

$ 328

$ 315

$ 970

$ 925

100.00%

Equity earnings, before income tax

$ 282

$ 15

$ 284

$ 276

Equity earnings (losses) net of tax

Segment Reporting Information, Additional Information [Abstract]

622

248

991

980

Percentage of consolidated expenditures for property, plant & equipment

$ 3,087

$ 2,227

100.00%

$ 45,526

$ 41,150

^[1]

100.00%

Operating Segments [Member] | SDG&E [Member]

$ 1,840

$ 2,905

^[1]

Segment Reporting Information, Profit (Loss) [Abstract]

$ 1,209

$ 1,230

$ 3,192

$ 3,168

48.00%

50.00%

44.00%

42.00%

$ 49

$ 51

$ 145

$ 155

Percentage of consolidated depreciation and amortization

$ 161

$ 152

$ 478

$ 446

49.00%

48.00%

49.00%

48.00%

$ 91

$ 75

$ 204

$ 217

Segment Reporting Information, Additional Information [Abstract]

183

170

419

443

Percentage of consolidated expenditures for property, plant & equipment

$ 959

$ 835

31.00%

38.00%

$ 17,446

$ 16,515

Operating Segments [Member] | SoCalGas [Member]

38.00%

40.00%

Segment Reporting Information, Profit (Loss) [Abstract]

$ 686

$ 620

$ 2,336

$ 2,448

27.00%

25.00%

32.00%

33.00%

$ 25

$ 23

$ 71

$ 61

Percentage of consolidated depreciation and amortization

$ 121

$ 116

$ 355

$ 342

37.00%

$ 21

$ (20)

$ 75

$ 91

Segment Reporting Information, Additional Information [Abstract]

(8)

198

276

Percentage of consolidated expenditures for property, plant & equipment

$ 949

$ 946

31.00%

42.00%

$ 13,148

$ 12,104

Operating Segments [Member] | Sempra South American Utilities [Member]

29.00%

Segment Reporting Information, Profit (Loss) [Abstract]

$ 385

$ 373

$ 1,170

$ 1,151

15.00%

16.00%

15.00%

$ 9

$ 29

$ 22

Percentage of consolidated depreciation and amortization

$ 14

$ 12

$ 41

$ 37

4.00%

Equity earnings (losses) net of tax

$ 17

$ 16

$ 46

$ 50

(3)

(4)

Segment Reporting Information, Additional Information [Abstract]

127

129

Percentage of consolidated expenditures for property, plant & equipment

$ 133

$ 105

4.00%

5.00%

$ 3,488

$ 3,235

8.00%

Operating Segments [Member] | Sempra Mexico [Member]

$ (1)

$ (4)

Segment Reporting Information, Profit (Loss) [Abstract]

$ 196

$ 193

$ 481

$ 508

8.00%

7.00%

$ 5

$ 7

$ 13

$ 18

Percentage of consolidated depreciation and amortization

$ 15

$ 18

$ 47

$ 52

5.00%

6.00%

5.00%

6.00%

Equity earnings (losses) net of tax

$ 142

$ (6)

$ 170

$ 7

Segment Reporting Information, Additional Information [Abstract]

332

407

160

Percentage of consolidated expenditures for property, plant & equipment

$ 232

$ 185

8.00%

$ 6,359

$ 3,783

14.00%

9.00%

Operating Segments [Member] | Sempra Renewables [Member]

$ 108

$ 519

Segment Reporting Information, Profit (Loss) [Abstract]

$ 12

$ 25

$ 30

1.00%

0.00%

$ 0

$ 1

$ 0

$ 3

Percentage of consolidated depreciation and amortization

$ 1

$ 2

$ 4

$ 5

0.00%

Equity earnings, before income tax

$ (7)

$ (9)

$ (29)

$ (37)

Segment Reporting Information, Additional Information [Abstract]

Percentage of consolidated expenditures for property, plant & equipment

$ 700

$ 47

23.00%

2.00%

$ 2,112

$ 1,441

5.00%

4.00%

Operating Segments [Member] | Sempra Natural Gas [Member]

$ 819

$ 855

Segment Reporting Information, Profit (Loss) [Abstract]

$ 164

$ 160

$ 384

$ 512

6.00%

5.00%

7.00%

$ 11

$ 13

$ 33

$ 57

Percentage of consolidated depreciation and amortization

$ 12

$ 37

$ 36

4.00%

Equity earnings, before income tax

$ 51

$ 0

$ (77)

$ 29

(26)

Segment Reporting Information, Additional Information [Abstract]

(104)

Percentage of consolidated expenditures for property, plant & equipment

$ 100

$ 61

3.00%

$ 5,377

$ 5,566

12.00%

13.00%

Adjustments and eliminations [Member]

$ 838

$ 1,460

Segment Reporting Information, Profit (Loss) [Abstract]

$ (1)

$ 0

$ (1)

Segment Reporting Information, Profit (Loss) [Abstract]

0.00%

All other [Member]

$ 68

$ 65

$ 214

$ 193

Percentage of consolidated depreciation and amortization

$ 4

$ 3

$ 8

$ 7

1.00%

$ (33)

$ (41)

$ (105)

$ (81)

Segment Reporting Information, Additional Information [Abstract]

(33)

(36)

(99)

(118)

Percentage of consolidated expenditures for property, plant & equipment

$ 14

$ 48

0.00%

2.00%

$ 640

$ 734

1.00%

2.00%

Intersegment eliminations [Member]

$ 76

$ 75

Segment Reporting Information, Profit (Loss) [Abstract]

$ (116)

$ (107)

$ (274)

$ (286)

(5.00%)

(4.00%)

$ (31)

$ (26)

$ (84)

$ (93)

Segment Reporting Information, Additional Information [Abstract]

(21)

(18)

(56)

(62)

$ (3,044)

$ (2,228)

Intersegment eliminations [Member] | SDG&E [Member]

(7.00%)

(5.00%)

Segment Reporting Information, Profit (Loss) [Abstract]

Intersegment eliminations [Member] | SoCalGas [Member]

$ 2

$ 5

Segment Reporting Information, Profit (Loss) [Abstract]

Intersegment eliminations [Member] | Sempra Mexico [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Intersegment eliminations [Member] | Sempra Natural Gas [Member]

Segment Reporting Information, Profit (Loss) [Abstract]